Israeli adtech company AppsFlyer is laying off 7% of its employees, about 100 people, in a streamlining move in order to stay “flexible, innovative, and focused on long-term success.”
Last June, “Bloomberg” reported that AppsFlyer was planning a Nasdaq IPO and had chosen investment banks Goldman Sachs, J.P. Morgan Chase and Bank of America to lead the flotation. According to “Bloomberg”, the company will seek to raise $300 million through an IPO this year, although it may be postponed to the first half of 2026.
The Israeli company sells software to corporations such as eBay, Visa and Nike that measures user response to ad campaigns and monitor their effectiveness.
AppsFlyer employs 1,400 people and is headquartered in Herzliya Pituah. The company has not raised capital since 2020, and has been profitable for several years, producing annual revenue of about $300-350 million from the sale of software as a service for advertising management, according to its past statements. To succeed in the IPO, CEO Oren Kaniel and the underwriters will need to convince investors that it can grow at high rates.
According to IVC Research, AppsFlyer has raised $314 million from investors including General Atlantic, Eight Roads, Qumra Capital, Pitango and the Magma, which has broken up since investing in the company.
“A more rapid, lean and focused organization”
In explaining the reasons for the layoffs, Kaniel wrote in a blog on the company’s website, “Over the past few years, we have made significant investments in privacy-enhancing technologies and ecosystem support.
“While these efforts came with short-term trade-offs such as tighter margins and operational inefficiencies-they cemented AppsFlyer’s position as a leader in privacy-first measurement and data collaboration.
“Today, AppsFlyer stands as a pillar of stability amid economic, industry, and geopolitical turbulence. This strength gives us the ability to take this step while continuing to deliver exceptional service to our customers and partners. I believe this is the right path forward. It reflects our commitment to becoming a faster, leaner, and more focused organization in 2025 and beyond.
“Even as we achieve record financial performance – profitable in 2024 for the first time, cash flow positive for over two years, and exceeding revenue, ARR, and EBITDA goals – we believe now is the right time to take this step. While it may seem unexpected to make such changes during a period of success, it is precisely this strength, combined with our strategic leadership, that enables us to act decisively, invest in growth, and ensure AppsFlyer remains at the forefront of innovation.”
Published by Globes, Israel business news – en.globes.co.il – on February 4, 2025.
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