Applovin revenue hit by Project Makeover, Matchington Mansion declines


Applovin shares continue to tumble after it posted a year-on-year revenue decline of 2% and revised its outlook downwards in its Q322 financials.

The marketing and publishing firm missed expected revenue targets and stated that it would stop providing annual revenue guidance going forwards.

It also called out the decline of key titles Project Makeover and Matchington Mansion as part of a YOY drop in game publishing revenue of 24%. A quick look at Appmagic data tells us that these two games made around $17m in Q322, compared to $30m in Q321.

Applovin said that its games business – which also includes Machine Zone’s games – will continue to undergo significant changes as part of an ongoing strategic review.

“During 3Q22, this included redirecting investment in new games toward key studios, the sale of non-strategic assets, reducing our user acquisition spend and optimizing across the portfolio, further reducing the overall headcount of the Apps business, and evaluating restructuring of earnout arrangements,” it said in a shareholder letter.

The numbers in brief:

  • Total Q322 revenue declined 2% YOY to $713m
  • The ‘software platform’ part of the business was up 59% YOY to $307m
  • Apps – led by Project Makeover and Matchington Mansion – was down 24% YOY to $407m
  • Adjusted EBITDA increased 35% YOY to $258m, a 36% margin
  • Guidance was only provided for the next quarter; annual targets will no longer be provided
  • Q322 revenue was forecast to be $685-$700m
  • Full 2022 outlook was revised downwards from $2.84bn to $2.80-$2.81bn

It’s been a rough year for Applovin’s stock, to say the least. Shares closed at $13.74 yesterday; around the same time a year ago they were going for $95-$114.

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