ENPP2 functions as both a phosphodiesterase, which cleaves phosphodiester bonds at the 5' end of oligonucleotides, and a phospholipase, which catalyzes production of lysophosphatidic acid (LPA) in extracellular fluids. LPA evokes growth factor-like responses including stimulation of cell proliferation and chemotaxis. This protein stimulates the motility of tumor cells and has angiogenic properties, and its expression is upregulated in several kinds of carcinomas. This protein is secreted and further processed to make the biologically active form.