Liftoff Mobile IPO - Should You Buy?

Deep dives at https://www.overlookedalpha.com Liftoff Mobile is another interesting IPO that is hitting the market this week so let’s take a closer look. Liftoff is a mobile advertising platform that helps app developers do two important things: acquire new users for their app, and make more money from the users they already have. It does this using a prediction engine known as Cortex which uses ai neural networks to match and place ads. And Liftoff’s numbers look highly impressive. Revenue last year grew 32% to 686 million dollars with 85% gross margins and a core net dollar retention rate of 130%. Operating income grew 80% to 167 million and free cash flow surpassed 100 million. Crucially, those numbers have improved into Q1 of this year with free cash flow hitting 74 million in just the first quarter. This is a company that is clearly benefiting from rapid growth and a strengthening flywheel. Higher ad spend creates more data which can be used to further improve the model and that results in powerful operating leverage. While revenue grew 37% in q1, operating expenses increased just 14%. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support.