Jim Kelly's questions to Applovin Corp (APP) leadership • Q1 2025
Question
Jim Kelly of Piper Sandler asked about the company's ability to monetize its large but relatively static user inventory base. He also inquired about any notable trends in the broader gaming macro environment.
Answer
Executive Adam Foroughi explained that, similar to other large platforms like Meta and YouTube, growth comes from improving the technology's matching ability, not from user base growth. He sees a long runway to increase the transaction rate by improving the algorithm and leveraging personalized ad creative. On the macro front, he stated the business is highly diversified and that free-to-play gaming is a resilient category, well-insulated from economic changes.