AppLovin Corporation’s new AI engine, Axon 2, launched in Q2 2023, has drastically increased ad spending on its platform, which has quadrupled, pushing gaming ad spend to an estimated $10 billion annual run rate. This surge has made AppLovin one of the most valued firms in the ad tech sector.
In Q1 2025, AppLovin reported a 40% year-over-year revenue increase, an 83% rise in adjusted EBITDA, and a 144% growth in net income. For the full year 2024, revenue grew 43% and EBITDA increased by 81%. The company’s performance contrasts with stagnating growth in Western mobile gaming in 2022, highlighting Axon 2’s pivotal role in revitalizing the market.
