PALO ALTO, Calif.–(BUSINESS WIRE)-- AppLovin Corporation ( APP ) (“AppLovin” or the “Company”), the leading marketing platform, today announced that it will participate in a fireside chat at the UBS Global Technology and AI Conference in Scottsdale, Arizona on Tuesday, December 2, 2025 at 10:55 a.m. Mountain Time. A webcast of the event will be available on the Company’s Investor Relations website at https://investors.applovin.com and a replay will be available following the conference in the Events & Presentations section of the Company’s Investor Relations website.
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This was flagged by a board member as inappropriate, and I agree. We obviously don’t want to post any news release or notification of an event related to any company someone on the board owns, especially without comment by the person posting it here.
However, if the OP or someone else wants to listen to the event and provide some thoughts, that would be on topic, so I’ll leave this thread open in hopes that someone can do so.
Bear
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The speakers were the CEO and CFO, and the session was 30 minutes. They raced through several topics that are also covered in the latest earnings call, more or less providing updates on how things are progressing. Highlights include:
Initial feedback from users was that they wanted a way to filter ad targets to new customers only, so they’ve added it and it is in production.
The CEO mentioned in the quarterly earnings call that a generative AI tool to create ‘creative’ (I’m an old guy, so find myself balking at some of these neologisms) was ‘a ways away’ (approximate quote), and he now said that is close.
Continuing the rapid move towards e-commerce, which is in their words ‘huge’. This is a pretty fundamental shift in the content that is shown, as the typical gaming ad is ~35 seconds, while e-commerce is much shorter. This means that the both quantity of ‘creative’ as well as the number of times it is shown will grow immensely. This is a flywheel effect, in their world. They also said that they see other important markets after e-commerce.
Regarding opening the platform to the general public, they said they are more or less ready with the AI apps (customer service, setting up dashboards, general onboarding and such), and they are now working hard on their own marketing tools to optimize the acquisition of customers. The CEO said somewhat tongue in cheek that he is very confident in the capabilities of his team to solve that problem.
They expect margins to remain at the current level at least, and do not see headcount increasing disproportionately.
There were several references to and comparisons with Meta and its move in 2011-2012 to monetize its platform. It sounded to me like they see a similar potential for their company, but they are circumspect in saying this very loudly. CEO did say they definitely see 1, 2, 5 years out as being much bigger than now.
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Everything seemed on track with the business and web platform which management will launch in general availability globally starting in 2026. A couple other take aways from the conference,
- They are getting feedback from users on web platform. Some customers wanted to target only new customers and not repeat, and they made the product so customers can upload data. “Working phenomenally well” and not hearing anything negative about the product anywhere now
- AppLovin has longer ad display times than typical Meta ads. There is room the customers to add more content. Management is looking to get Gen AI creatives up which in turn allows the customer to “sell the product more aggressively”
- “A lot of them (customers) didn’t realize how big we are”, they would invest the resources if they understood
- The platform does no manual targeting which reduces the work for the customer
- Shifting more and more to non-gaming which is really healthy for the total ad ecosystem they have, CEO says really excited about this, and they are broadening out the list of potential advertisers
- Agent can scan every ad to ensure quality, optimizing every step of the conversion funnel
- Sustainable low 80% EBITDA margin range for product
They mentioned that META dominated the space for 10 years and have talked repeatedly about a better ROAS than META products. I think it will still take some time for customers to understand and start making the switch over. The big difference I see with APP vs META as well is in headcount as AppLovin has made a concerted effort to keep G&A low, while META has all sorts of side projects and 74,000 employees. We are now looking at system with AppLovin that is supposed to be superior to META yet only has 1,600 employees with the potential to scale up to the same rate. This means AppLovin has the potential to drive an incredible amount of profitability while keeping OpEx expenses tiny in comparison.
They’ve also detailed the flywheel effect where more supply, demand, and ad creatives coming on the platform, all enhances the platform even more. Each model enhancement has a “compounding” effect as well they said, not cancelling out previous enhancements, but instead building on top of them.
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