Clark Blandin's questions to Applovin Corp (APP) leadership • Q1 2025
Question
Clark Blandin of BTIG asked if the strong Q1 sequential growth included a 'step function' improvement in the model and whether Q2 guidance includes any revenue from the divested studios now being treated as third parties.
Answer
Executive Adam Foroughi confirmed the strong Q1 performance was a 'huge step-up' driven by multiple factors, including significant efficiency gains in the gaming model that were larger than typical reinforcement learning. Executive Matt Stumpf stated that the guidance for Q2 does not assume any incremental revenue from the former studios, as the transaction is expected to close late in the quarter and the potential impact is not considered material.