AppLovin Corporation (NASDAQ:APP) Q2 2023 Earnings Call Transcript

Adam Foroughi: Yeah. So on the first question, the release really broke down the whole offering into some of the valuable sub-vectors of what we rolled out. But the core product offering is to fully automate the marketing problem and power it with these new AI technologies that we rolled out. In totality, all of the components that we broke down in that article sum up to the value of the whole and so there’s not one part of it that’s more exciting or not, all of it is exciting to us. On the second question, sales cycle for new, in particular, non-gaming is slower than ramping gaming customers that are already used to our platform and have been buying on our platform. They have been live for years and they see an improvement in the return on ad spend that they are able to achieve on our platform, they will invest more.

That is actually mostly automated as it is today. A new customer usually takes a quarter or two to ramp up and we are now seeing a lot more interest in joining the platform, because already only a couple of months into this platform rolling out, there’s a lot of word of mouth spreading amongst App developers, both within gaming and non that our platform is working really well for their peers.

Bernie McTernan: Great. Thanks, Adam.

Operator: And we will now hear from Vasily Karasyov with Cannonball. Vasily, do you want to go ahead and turn a video for us. Vasily, would you go — like to go ahead and unmute and ask your question. All right. Well, we are not getting any response from Vasily, so we can go ahead and move on to David Karnovsky with JPMorgan.

David Karnovsky: Here we go. Hey. Thanks. Adam, I just wanted to see if you could update on whether you see any expected privacy changes either on the iOS or Android side in the next, I don’t know, call it, six months to 12 months that might impact your execution at all or from this point on, do you kind of expect just more incremental changes?

Adam Foroughi: Yeah. I think we have constantly mentioned this, that what we think, of course, privacy both on the operating system level and amongst regulators will continue to evolve. It’s been something that’s been evolving as we have operated this business for the last five years to seven years. We don’t see anything in the six-month to 12-month term that you referenced that’s going to be a material change to how we would be able to operate our business. And one thing that really has defined our company since we launched, we moved really fast, our core engineering team is really strong, the culture of the company is to operate as a startup at all times and so when it comes to these changes, we have always been able to adapt and operate within the boundaries of the guidelines and that gives us a lot of confidence.

No matter what we are facing in the future, we are going to be able to move faster than peers and we are going to be able to continuously improve what we are offering to the advertiser base we work with.

David Karnovsky: Okay. Great. Thank you.

Operator: And our next question will come from Luke Mott with Wolfe Research.

Luke Mott: Hi. This is Luke Mott on for Josh with Wolfe Research.

Operator: Okay. Thank you.

Luke Mott: Great. Thanks. Just a quick one here. Any update to the competitive dynamics in mediation with the launch of AXON 2.0? Are you seeing any update there or progress or differences?