APP 1Q25:Impact of Tariffs and Apple's Third-Party Payment Policy

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We've previously published several reports on Applovin, primarily addressing short reports and recent changes in the advertising industry. For detailed information, please refer to our previous research notes.

I'd like to share insights based on recent channel checks. In the following sections, we will analyze in greater depth the impact of Apple's third-party payment policy on Applovin.

Summary of Previous Findings

• Tariffs and macroeconomic conditions show minimal impact on gaming business unless economic conditions further deteriorate

• For TEMU and SHEIN, we project a 50% reduction before opening non-US operations, with impact potentially settling at 30% after Applovin ramps up e-commerce campaigns in Europe and other regions

• Other e-commerce businesses currently limited to US markets show deceleration, but still demonstrate strong sequential growth

Key Research Findings