Many investors are eagerly awaiting the opportunity to invest in AppLovin, with the company set to go public in 2021.
Popular games developer AppLovin officially announced its plans to go public at the start of March after many months of rumors, following other game developers such as Roblox and Playytika.
Companies have been looking to capitalize on increased, pandemic-driven interest in gaming of late, and AppLovin’s public listing will undoubtedly attract a lot of attention from investors due to its diversified offering, proven ability to be profitable, and its success in scaling to date.
When can I buy AppLovin stock?
The company has not yet announced an official date for its public listing, but it is expected to take place during the first half of 2021. It will be listed on the Nasdaq under the ‘APP’ ticker symbol.
How much will AppLovin stock cost?
There is no indication as to what the listing price for AppLovin could be.
The financial results outlined in AppLovin’s S-1 filing impressed investors, showing a company that has been fast-growing for a number of years and not just riding on a wave of pandemic-fuelled success.
In 2020, AppLovin’s revenue was $1.45 billion, up 46% year-on-year from 2019’s $994.1 million and the $483.4 million it took in 2018. There is a pretty even split in the company’s revenues between its B2B services (49%) and sales from B2C in-app purchases (51%).
While it made a net profit of $119 million in 2019, AppLovin did record a $125 million net loss last year after quadrupling its R&D spend, as well as having a $74.8 million cost for an asset acquisition agreement settlement.
The SensorTower research firm reported that the mobile gaming market, in particular, grew 26% in 2020, getting up to $79.6 billion.
AppLovin has been investing heavily into building up its publishing studio in recent years. Since 2018, it has made 15 strategic acquisitions and partnerships, spending over $1 billion doing so. It now boasts a portfolio of more than 200 mobile games that are free-to-play, with nearly 32 million players using these apps on a daily basis.
AppLovin is well-positioned to take advantage of consumer trends in mobile gaming, particularly as the game development sector starts to consolidate. It also has its strong B2B segment whereby it helps developers to attract users and monetize apps.
While AppLovin did record a net loss last year, it has been consistently profitable up to that point. This is a good sign for potential investors who are often inundated with companies that have tons of potential but consistently record significant losses.
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MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here.