AppLovin reports Q4 adjusted EBITDA up 17% at $260M

Reports Q4 revenue $702.3M, consensus $689.9M. The company states: "Our business performed as expected in the fourth quarter with steady results in our Software Platform segment and the operational optimization of our Apps segment nearing completion. Underlying trends in the mobile gaming and app market remained soft but stable as compared to the third quarter. We continue to invest in our strong team who are expanding our leading ad solutions, improving our Apps portfolio and pursuing several growth initiatives. We generated $2.8 billion in revenue in 2022 and a net loss of $193 million, a (7)% net margin. Our Adjusted EBITDA grew to over $1 billion at a 38% Adjusted EBITDA margin. We are pleased with the focus of our team to achieve results in line with the guidance we provided last quarter. Total revenue for the fourth quarter of 2022 was $702 million, slightly above the top end of our quarterly guidance. In the fourth quarter of 2022, net loss was $80 million, net margin was (11)%, and Adjusted EBITDA was $260 million, near the high end of our quarterly guidance, at a 37% Adjusted EBITDA margin. During the quarter, we generated $138 million of net cash from operating activities and $132 million of Free Cash Flow. Our cash generation and balance sheet cash allow us to reinvest in our business with a long-term value creation mindset. Our strategic priorities today remain consistent with those provided in our third quarter 2022 Shareholder Letter: (1) attracting and retaining the best talent; (2) improving our core tech; (3) investing in several new initiatives; (4) optimizing our Apps portfolio and overall cost structure; (5) allocating capital efficiently; and (6) building an aligned shareholder base. If we execute well against each of these priorities, we can deepen our market leading position and expand our reach, driving strong returns over the long term."