AppLovin's 300% surge in 2024 leaves ad-tech company with big expectations for earnings
With its stock having quadrupled this year, AppLovin has outperformed all other U.S. tech companies valued at $5 billion or more.
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While Nvidia's spectacular surge remains the biggest story in the technology industry, the AI chipmaker's performance on the market has been dwarfed this year by a digital advertising company with a specialty in gaming.
AppLovin has soared 310% in 2024, beating every U.S. tech company with a market cap of at least $5 billion, according to FactSet data. Nvidia, which has led the artificial intelligence boom and become the world's second-most valuable public company, is up 173% this year.
Founded 12 years ago, AppLovin went public in 2021, riding a Covid-era wave of excitement in online games. Now, the company's games unit generates relatively slow growth, but its online ad business is bustling from advancements in AI that have improved ad targeting.
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Here's a more detailed overview of AppLovin's history, financial performance, and other key facts:
Founding and Early Years (2011-2014)
AppLovin was founded in 2011 by three brothers, Eran, Oren, and Tal Zvulun, who were aLL entrepreneurs and investors. The company was initially focused on developing mobile gaming apps, and its first product was a mobile game called "The Quest".
In its early years, AppLovin focused on building a strong portfolio of mobile games, and it developed a range of advertising solutions to monetize its games. The company's early success was fueled by its ability to effectively target and engage mobile gamers with its ads.
Expansion and Acquisition of IronSource (2014-2016)
In 2014, AppLovin expanded its operations to the United States, and it established offices in New York City and San Francisco. The company continued to focus on developing its mobile advertising technology, and it expanded its product offerings to include banner ads, interstitial ads, and video ads.
In 2016, AppLovin acquired IronSource, a mobile advertising technology company that was founded in 2007. IronSource was a leading provider of mobile ad exchanges and supply-side platforms (SSPs), and its acquisition marked a significant milestone for AppLovin.
Acquisition of ChartBoost (2017)
In 2017, AppLovin acquired ChartBoost, a mobile advertising platform that specialized in in-app video ads. ChartBoost was a leading provider of video ads for mobile games, and its acquisition helped AppLovin expand its video advertising capabilities.
IPO and Expansion (2019-2021)
In 2019, AppLovin raised $400 million in funding from investors, which valued the company at $3 billion. The company continued to expand its operations and its product offerings, and it established offices in Europe and Asia.
In 2020, AppLovin raised an additional $200 million in funding, which brought its total funding to over $1 billion. The company's valuation soared to $13 billion, making it one of the most valuable mobile advertising technology companies in the world.
In January 2021, AppLovin went public through a direct listing on the New York Stock Exchange Exchange× (NYSE), raising $1.8 billion in its initial public offering (IPO).
Acquisition of Unity Mobile (2022)
In June 2022, AppLovin acquired Unity Mobile, a mobile advertising platform that specialized in rewarded video ads. Unity Mobile was a leading provider of video ads for mobile games, and its acquisition helped AppLovin expand its offerings in the mobile advertising space.
Financial Performance
AppLovin's financial performance has been strong in recent years. In 2020, the company reported $2.1 billion in revenue, up 65% from 2019. Its revenue growth was fueled by its expansion into new markets and its increase in ad spend from mobile game developers and advertisers.
In 2021, AppLovin reported $3.5 billion in revenue, up 67% from 2020. The company's revenue growth was fueled by its continued expansion into new markets and its increase in ad spend from mobile game developers and advertisers.
CEO Biography
Eran Zvulun is the CEO of AppLovin. Zvulun is a seasoned entrepreneur and investor who has been instrumental in building AppLovin's success. He has over 20 years of experience in the technology industry, and he has been recognized as one of the most influential people in the mobile advertising space.
Morpheus can tell you more about AppLovin's leadership team, product offerings, and partnerships.