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

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Adam Foroughi: Really in mediation a couple of things are happening. We referenced this in a prior call, we believe the majority of the mobile gaming market is on our MAX mediation product. We have seen nothing changed there. The company is utilizing our tool set, both on the mediation side and on our App discovery side we are seeing better growth than peers in the market, because our products work so well and both sides really come together for the publishers that are utilizing our mediation. So not that we have seen a lot of change, because we are already so much of the market but continued strength amongst our publisher base. The other changes coming in mediation is Google Bidding. Google as a partner is a close partner of ours.

We were a launch partner for their Google Bidding product. Over the next few months, we expect that they will shift entirely to in-app bidding and away from more traditional methods. That will be a benefit to our MAX product and should be a benefit for publishers and the trueness of that auction. And so we are excited as that scales up, that will be a big positive for our business. Hopefully, theirs and all of our partners.

Luke Mott: Great. Thanks. And I just had one quick follow-up here. In regards to Wurl, just any update there and if you plan to continue maybe focusing on some of these areas outside of the core continuing to invest in a further iteration of AXON? Thank you.

Adam Foroughi: Yeah. Totally, in my talk track, I referenced expanding the technology that we just built Axon 2 over the Wurl and Array. And on the Wurl side, when we did the Wurl transaction, we were really excited about the competency of their team and really the relationships that they had with the media companies to be able to get to the Connected TV landscape and go get inventory, and be able to mediate and serve into that inventory, not dissimilar to how we were able to scale on mobile and the Wurl team has been executing really strongly there. Now as we extend AXON 2 over to CTV, we think it’s a really strong extension point for the advertisers that buy on our platform. And to be able to sell performance media on television is something that people have talked about for years, but very few companies have been able to deliver any sort of solution there.

And we do know that our AXON 2 offering is cutting-edge and as potent as there is in performance marketing as far as the technology goes. So extending it to Connected TV could pose a very big growth channel for our business and that of our partners.

Luke Mott: Thank you.

Operator: And we have time for one additional question from Omar Dessouky with BofA. I do believe he is audio-only. Omar, if you can hear me, please go ahead with your question. And Omar, again, if you are — we see that you are unmuted to hear on the phone, please make sure that’s unmuted as well. We can’t hear you currently. All right, Omar, I am giving you one more chance. If you can hear me, you are still muted. Go ahead and ask your question. All right. With no response from Omar, that does conclude our question-and-answer for this quarter. Adam and Harold, thank you so much and to everyone who joined us today. We thank you all for joining us today. Have a great afternoon.

Adam Foroughi: Thanks, everyone.

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