AppLovin Corporation (NASDAQ:APP) Q2 2024 Earnings Conference Call August 7, 2024 5:00 PM ET
Company Participants
David Hsiao - Head of IR
Adam Foroughi - Chairman, Co-Founder & CEO
Matt Stumpf - CFO
Conference Call Participants
Jason Bazinet - Citi
Clark Lampen - BTIG
James Heaney - Jefferies
Omar Dessouky - BofA
Vasily Karasyov - Cannonball
Matt Cost - Morgan Stanley
Martin Yang - OpCo
David Hsiao
Welcome to the AppLovin Earnings Call for the Second Quarter Ended June 30, 2024. I'm David Hsiao, Head of Investor Relations. Joining me today to discuss our results are Adam Foroughi, our Co-Founder, CEO, and Chairperson; and Matt Stumpf, our CFO. Please note our SEC filings to date as well as our shareholder letter and press release discussing our second quarter are available at investors.applovin.com.
During today's call, we will be making forward-looking statements regarding our products and services, market expectations, the expected future financial performance of the company, and other future events. These statements are based on our current assumptions and beliefs, and we assume no obligation to update them except as required by law.
Our actual results may differ materially from the results predicted. We encourage you to review the risk factors in our most recently filed Form 10-Q for the first quarter ended, March 31, 2024. Additional information may also be found on our quarterly report and Form 10-Q for the fiscal quarter ended June 30, 2024, which will be filed later today.
We will also be discussing non-GAAP financial measures. These non-GAAP measures are not intended to be superior to or a substitute for our GAAP results. Please be sure to review the reconciliations of our GAAP and non-GAAP financial measures in our earnings release and shareholder letter available on our Investor Relations site. This conference call is being recorded and a replay will be available for a period of time on our IR website.
Now, I'll turn it over to Adam and Matt for some opening remarks, then we'll have the moderator take us through Q&A.
Adam Foroughi
Welcome, everyone, and thank you for joining us. We had another strong quarter in Q2. Our software business had 5% revenue growth quarter-over-quarter because our models continue to improve. As you'll recall, in Q1, we had a big step-up in growth, so continuing that trend to continue to grow quarter-over-quarter is a really promising sign.
As we've stated in previous earnings calls, if we keep growing the software business, the flow through to EBITDA and cash is very high and our business margins and cash conversion will continue to improve. We've also consistently said that the slower growth market we're in, mobile gaming doesn't constrain our opportunity to grow our software business. We've noticed that at times, this concept is needed a little bit more explaining for our shareholders and prospective investors. So, I wanted to take the time to do that here.