AppLovin went public in early 2021 with the mission to help app developers succeed. The company developed a comprehensive set of tools dubbed AXON — powered by artificial intelligence — that help businesses get their apps noticed in an otherwise crowded marketplace, while automating and optimizing the monetization of those apps.

According to the company, most developers lack the “marketing, monetization, and data analytics tools required to stand out” in a sea of mobile apps that number in the millions — particularly mobile games. Furthermore, many app developers tend to benefit from including advertising in their apps, but most lack the expertise to do this effectively, so AppLovin does the heavy lifting. The company also helps advertisers reach their target market, which is also a win for developers.

AppLovin gets paid when users download an app, so when their customers succeed, AppLovin succeeds. The company’s track record is impressive. Since its inception, the platform has fueled over 6 billion mobile-app installs for developers.

Management has expressed confidence that it can achieve 20% to 30% growth “for the foreseeable future” from mobile game advertising alone, which would be reason enough to be bullish on the stock. However, AppLovin is expanding into new verticals that could supercharge its future growth.

For example, the company is currently piloting an e-commerce advertising solution, and the results are encouraging. On the earnings conference call CEO Adam Foroughi said Early data has exceeded our expectations, with the advertisers in the pilot seeing substantial returns, often surpassing those from other media channels, and in many cases, experiencing nearly a 100% incrementality from our traffic. We’re increasingly confident this vertical will scale significantly in 2025 and become a strong contributor for us over the next year and beyond.