AppLovin Lays Out Its Post-MoPub Acquisition Plans
Summary
Roughly a year ago, AppLovin launched a proprietary machine learning recommendation engine called Axon that uses predictive algorithms to target apps to the users most likely to download them. “The games business may grow, it may not grow – it doesn’t matter, because it’s scaled enough where it’s fueling the massive growth in the software business,” Foroughi told investors on Wednesday during the company’s Q4 earnings call, its third since going public in April of last year. The focus going forward will be “to continue to expand the dollars that third parties are paying us on the software side, whether it’s through MAX or whether it’s through the demand-side relationships we’re going to inherit through MoPub,” Foroughi said. Since the acquisition, the number of apps monetizing with MAX is up by more than 60% and more than 90% of “the largest publishers” using MoPub are migrating to AppLovin’s unified offering, Foroughi said. In its investor letter, AppLovin acknowledges that “migrating to a new mediation solution is a rare event” and that it can be complex, time consuming and have a financial impact on publishers.