Long-Term Outlook Is Solid Despite Second-Quarter Model Improvement Hiccups

AppLovin is a vertically integrated advertising tech company that acts as a demand-side platform for advertisers, a supply-side platform for publishers, and an exchange that facilitates transactions between the two. The firm initially focused on mobile game advertising and monetization, but soon identified a broader need for enhanced customer acquisition and optimization tools across content types. AppLovin provides advertisers access to 1.6 billion daily active users. The company is growing rapidly and has a strong margin profile, earning it the highest Rule-of-40 score in our software universe.