AppLovin Founder and CEO Adam Foroughi join Yahoo Finance Live to discuss the mobile developer’s revenue growth in app development, software and advertising, as it hopes to acquire Twitter’s MoPub publishing platform.
– The company Applovin went public earlier this year in April, had an initial dip, but since then has rallied quite a bit. Helped in part by earnings that beat estimates last week. The company also in early October announced a deal to buy Twitter’s MoPub business for about a billion dollars.
Adam Foroughi the Applovin founder and CEO is joining us now. Adam, thanks for being here. First of all, as Brian Sozzi mentioned going to break, for folks who are not familiar with Applovin, describe to us, give us sort of, you know, the 100,000 foot view of what you guys do.
ADAM FOROUGHI: Yeah, thanks for having me on here. So we’re an advertising company for mobile app developers that really create any type of application. And we’re a two sided marketplace. So whether they want to find users who are going to engage with their app, they would come advertise to our platform.
And if they want to monetize their audience with advertising, they would use a number of the tools that we built over the last decade plus or that we’ve acquired. And one of those tools, as you mentioned, was MoPub. And we’re really excited about that transaction as well.
– And Adam, you guys also own games yourselves in addition to having all of these ad services that you were just talking about. And in reaction to that earnings report that just came out, I saw some commentary that sort of having both sides of it has helped insulate you to some extent from things like the privacy changes to Apple. Talk to me about that. If that’s having any effect on you all, and how you’re navigating through it?
ADAM FOROUGHI: Yeah, over the years, we were growing really quickly with just the advertising business. But we wanted to go bigger. And part of that strategy in 2018 was to get into games. And the market, and really even a lot of investors didn’t understand what we were trying to do. Were we trying to become a games company with our audience or what?
And now it’s becoming very evident what the strategy was. Which was get an audience playing our games, which now we have 200 million a month engaging with our games, but utilize the data from that audience, resell it through our marketing platform for the benefit of all of our clients. And that part’s really important. We were able to grow our software business after the IDFA changes this past quarter to $193 million this quarter.
And last year, we did $200 million of software revenue in an entire year. So we did almost that amount in just the quarter. And at the moment, we’re one of the fastest growing software companies on the planet because of that.
– Adam, how big is that MoPub business?
ADAM FOROUGHI: The MoPub business is a big marketplace. And these marketplaces are what really mediate the advertising platforms in this ad auction. So it’s very similar …….