Value Sense
APP
AppLovin Corporation (APP)
Last Price$337.33.6%
Market Cap$117.3B
LTM Rule of 40 (EBIT margin)
83.3%
5Y avg
78.7%
Software - Application industry median
3.8%
Stock quality & Intrinsic value
8/10
(0.6%) overvalued
APP
is (63.1%) overvalued
learn more -->
50+
undervalued stocks
Start beating the S&P 500

AppLovin Corporation Rule of 40 (EBIT margin)

Annual
Quarterly
LTM
Industry median
Company stand-alone
APP
Technology
Crunching data... Almost there!
Dec'18Dec'19Dec'20Dec'21Dec'22Dec'23
Rule of 40 (EBIT margin)
0.0%
125.2%
47.7%
97.9%
0.6%
36.3%
APP
Key metrics and insights to make informed decisions.
View full analysis
Overvalued or undervalued?
Check the intrinsic value for APP and see if it's the right time to invest.
Dive in

AppLovin Corporation (APP) Rule of 40 (EBIT margin) comparison analysis

General

LTM Rule of 40 (EBIT margin)

OTHER METRICS

Company name

Revenue growth

EPS growth

Net Income margin

AppLovin Corporation logo
AppLovin CorporationAPP
83.3%
16.5%
N/A
10.9%
Median Peer Set
31.3%
15.1%
46.2%
19.3%
Coinbase Global, Inc. logo
Coinbase Global, Inc.COIN
137.5%
111.2%
2,507.5%
39.3%
Cadence Design Systems, Inc. logo
Cadence Design Systems, Inc.CDNS
42.7%
13.5%
0.8%
22.7%
Shopify Inc. logo
Shopify Inc.SHOP
37.9%
25.8%
1,470.0%
22.7%
Intuit Inc. logo
Intuit Inc.INTU
36.0%
13.3%
24.8%
18.2%
ServiceNow, Inc. logo
ServiceNow, Inc.NOW
34.9%
22.4%
(18.4%)
13.0%
Salesforce, Inc. logo
Salesforce, Inc.CRM
27.7%
11.2%
1,923.8%
11.9%
SAP SE logo
SAP SESAP
26.7%
3.7%
67.5%
19.7%
Uber Technologies, Inc. logo
Uber Technologies, Inc.UBER
24.7%
18.0%
423.3%
22.4%
Workday, Inc. logo
Workday, Inc.WDAY
21.3%
16.8%
N/A
19.0%
MicroStrategy Incorporated logo
MicroStrategy IncorporatedMSTR
(326.2%)
(6.6%)
N/A
(251.7%)

APP key stats

USD
Millions
Billions
Annual
Quarterly
Trailing
Key stats
Income statement
Balance sheet
Cash Flow Statement
Valuation
Ratios
Per share
Per employee
Dividends & Yields
Dec'18Dec'19Dec'20Dec'21Dec'22Dec'23
Revenue
% growth
483.4
0.0%
994.1
105.7%
1,451.1
46.0%
2,793.1
92.5%
2,817.1
0.9%
3,283.1
16.5%
Cost of Goods Sold (COGS)53.8241.3555.6988.11,256.11,059.2
Gross Profit
% margin
429.6
88.9%
752.8
75.7%
895.5
61.7%
1,805.0
64.6%
1,561.0
55.4%
2,223.9
67.7%
Operating Expenses609.9558.5874.91,655.01,608.81,575.7
Research & Development Expenses (R&D)16.345.0180.7366.4507.6592.4
Selling, General & Administrative Expenses (SG&A)181.7513.5694.21,288.61,101.2982.3
Operating Income
% margin
231.7
47.9%
194.4
19.6%
24.8
1.7%
150.0
5.4%
(8.7)
(0.3%)
648.2
19.7%
Interest Income60.074.077.984.9171.90.0
Interest Expense0.074.077.9103.2171.9275.7
Pre-tax Income(240.3)126.2(135.7)46.3(205.2)380.6
Income Tax
% effective tax rate
19.7
(8.2%)
7.2
5.7%
(9.8)
7.2%
11.0
23.7%
12.2
(6.0%)
23.9
6.3%
Net Income
% margin
(260.0)
(53.8%)
119.0
12.0%
(125.9)
(8.7%)
35.4
1.3%
(217.4)
(7.7%)
356.7
10.9%
EPS(1.37)0.21(0.35)0.08(0.59)1.01
Diluted EPS(1.37)0.21(0.35)0.08(0.59)0.98
EBITDA
% margin
247.7
51.3%
287.8
29.0%
186.8
12.9%
597.7
21.4%
513.8
18.2%
1,145.2
34.9%

Discover more Stock Ideas

Undervalued stocks right now

Undervalued stocks right now

Discover the top 20 best undervalued stocks to buy for Mar 2025, listed on the Nasdaq or NYSE.

3M Return 32.1%
S&P Outperformance 19.1%
Next 3M Predicted Return 20.3%
Undervalued growth stocks

Undervalued growth stocks

Discover the top 20 best undervalued large-cap growth stocks to buy for Mar 2025, listed on the Nasdaq or NYSE.

3M Return 35.3%
S&P Outperformance 22.3%
Next 3M Predicted Return 26.8%
Undervalued dividend stocks

Undervalued dividend stocks

Discover the top 20 best undervalued high-yield dividend stock that offers both growth potential and attractive dividend returns for Mar 2025.

3M Return 28.4%
S&P Outperformance 15.4%
Next 3M Predicted Return 16.9%
More ideas -->

FAQ

1) What is AppLovin Corporation's Rule of 40 (EBIT margin)?

As of today, Microsoft Corp's last 12-month Rule of 40 (EBIT margin) is 83.3%, based on the financial report for Dec 31, 2024 (Q4’2024). The average annual Rule of 40 (EBIT margin) for AppLovin Corporation have been 65.9% over the past three years, and 78.7% over the past five years.

2) Is AppLovin Corporation's Rule of 40 (EBIT margin) Good?

As of today, AppLovin Corporation's Rule of 40 (EBIT margin) is 83.3%, which is higher than industry median of 3.8%. It indicates that AppLovin Corporation's Rule of 40 (EBIT margin) is Good.

3) How does AppLovin Corporation's Rule of 40 (EBIT margin) compare to its peers?

As of today, AppLovin Corporation's Rule of 40 (EBIT margin) is 83.3%, which is higher than peer median of 31.3%. The list of peers includes COIN, CDNS, SHOP, INTU, NOW, CRM, SAP, UBER, WDAY, MSTR.