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APP (AppLovin) Profitability Rank : 7 (As of Dec. 2024)


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What is AppLovin Profitability Rank?

AppLovin has the Profitability Rank of 7.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

AppLovin's Operating Margin % for the quarter that ended in Dec. 2024 was 44.29%. As of today, AppLovin's Piotroski F-Score is 7.


Competitive Comparison of AppLovin's Profitability Rank

For the Software - Application subindustry, AppLovin's Profitability Rank, along with its competitors' market caps and Profitability Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


AppLovin's Profitability Rank Distribution in the Software Industry

For the Software industry and Technology sector, AppLovin's Profitability Rank distribution charts can be found below:

* The bar in red indicates where AppLovin's Profitability Rank falls into.


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AppLovin Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

AppLovin has the Profitability Rank of 7.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

AppLovin's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=607.98 / 1372.779
=44.29 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

2. Piotroski F-Score

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

AppLovin has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

4. Consistency of the profitability

5. Predictability Rank


AppLovin Profitability Rank Related Terms

Thank you for viewing the detailed overview of AppLovin's Profitability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


AppLovin Business Description

Traded in Other Exchanges
Address
1100 Page Mill Road, Palo Alto, CA, USA, 94304
AppLovin is a vertically integrated advertising technology company that acts as a demand-side platform for advertisers, a supply-side platform for publishers, and an exchange facilitating transactions between the two. About 80% of AppLovin's revenue comes from the DSP, AppDiscovery, while the remainder comes from the SSP, Max, and gaming studios, which develop mobile games. AppLovin announced in February 2025 its plans to divest from the lower-margin gaming studios to focus exclusively on the ad tech platform. AppLovin's primary tool for future growth is Axon 2, which is an ad optimizer operating within the DSP that allows advertisers to place ads according to specified return thresholds.
Executives
Vasily Shikin officer: Chief Technology Officer 1100 PAGE MILL ROAD, PALO ALTO CA 94304
Arash Adam Foroughi director, 10 percent owner, officer: CEO & Chairperson 1100 PAGE MILL, PALO ALTO CA 94304
Victoria Valenzuela officer: CLO & Corp. Secretary 1100 PAGE MILL RD, PALO ALTO CA 94304-1047
Herald Y Chen director, officer: President & CFO 950 TOWER LANE, SUITE 1150, FOSTER CITY CA 94404-2127
Dawson Alyssa Harvey director 1100 PAGE MILL RD, PALO ALTO CA 94304-1974
Georgiadis Mary Margaret Hastings director 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Eduardo Vivas director 1100 PAGE MILL ROAD, PALO ALTO CA 94304
Kkr Denali Holdings L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Kkr Group Partnership L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Craig Scott Billings director C/O WYNN RESORTS, LIMITED, 3131 LAS VEGAS BOULEVARD SOUTH, LAS VEGAS NV 89109
Katie Kihorany Jansen officer: Chief Marketing Officer 1100 PAGE MILL RD, PALO ALTO CA 94304-1047
Todd R Morgenfeld director C/O PINTEREST, INC., 651 BRANNAN STREET, SAN FRANCISCO CA 94107
Kkr Group Co. Inc. 10 percent owner 30 HUDSON YARDS, NEW YORK NY 10001
Elena Arutunian officer: Chief Accounting Officer 1100 PAGE MILL RD, PALO ALTO CA 94304-1047
Angel Pride Holdings Ltd 10 percent owner ROOM 710, 7/F, WING ON HOUSE, NO. 71 DES VOREX ROAD CENTRAL, HONG KONG F4 0000

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