cash flow from our apps business, resulted in year-over-year adjusted EBITDA growth of 47% to $270 million. That equates to a 35% margin, which is the highest normalized EBITDA margin we
posted since being public.
We also introduced segment reporting this quarter, which allows us to provide you more information regarding the progress of
our businesses. Starting with the software platform segment, we had $318 million of revenue, which was up 118% year-over-year. We continue to deliver highly performing solutions to our most important customers as evidenced by our record 503
enterprise customers with an increase in net dollar-based revenue retention of 204% on an LTM basis.
On a quarter-over-quarter basis, all of our software
solutions had some growth, except for ALX, which in the aggregate led to a quarterly decline of minus 3%. The ALX decline was due to a migration of DSP demand from Twitters platform in Q1 to our ALX platform in Q2, which takes some time to
ramp. And as Adam mentioned, we proactively reduced the take rate from DSPs so we could pass more dollars along to our publishers.
Importantly, from a
cash flow standpoint, our software platform adjusted EBITDA grew 114% year-over-year to $197 million, representing a margin of 62%. While certainly a strong margin overall, in particular relative to our peers, during the quarter we incurred
step function increases in several costs.
First, we have technology infrastructure costs that we discussed before, including additional data center
capacity to support new publishers and demand partners onboarded from MoPub acquisition. And headcount costs, were now including the team from WURL, our recently acquired connected TV platform. For the second half of 2002 [sic],
importantly, we do not foresee meaningful increases in the software platform cost. Therefore, we expect our software platform adjusted EBITDA margin to be between 65% and 70% for the year, consistent with our previous range.
Regarding software revenue performance for the year, we have confidence we will deliver against our guidance. In the second and third quarter summer months
are slower a slower part of the year for mobile gaming. But importantly, for our business, the primary driver of our software platform business growth is App Discovery, which is, of course, powered by AXON. The ability for us to more than
double revenue over the past year and more than quintuple revenue over the past two years is largely driven by the continuous improvements in AXON.
As we
find improvements to our technology, we will realize meaningful increases in software revenue, which will flow through at very high margins. We do expect more of these improvements to occur over time, which supports our outlook for this year and
beyond.
Turning to the app side, as Adam described, our new approach to managing the portfolio is to focus on optimizing the business for financial
return. Our efforts and progress are already evident in our second quarter numbers. Our apps adjusted EBITDA increased from $41 million in Q1 to $73 million. Margins expanded from 8% to 16%.
Our bigger-than-expected reduction in spend, in particular in user acquisition, impacts the top line in the near term, and therefore, we meaningfully reduced
our apps revenue guidance by $300 million for the year. By 2023, our goal is to position the apps portfolio to have a healthy business model where we can grow the top line and earn a solid margin.
Closing out on guidance, we did not make any other changes to guidance, including holding the midpoint of 22 EBITDA at $1.2 billion. We can do so
given our high-margin software platform business and our ability to drive higher margins now in our apps portfolio.
Overall, we remain highly confident
in the stand-alone long-term value creation potential for our business given our top line prospects and cash generation potential. To that end, we were able to buy back approximately $340 million of our stock under our $750 million buyback
program at an average price of $38 per share.
Before we open it up for Q&A, I want to turn it back to Adam to address the unique partnership proposal
we made this week to the Unity board.
Adam Foroughi, Chief Executive Officer