In extended trading on Wednesday, AppLovin’s stock shot up over 30% after the business released better-than-expected guidance and posted earnings and revenue that well beyond analysts’ projections.
This is how the business fared in comparison to analysts’ expectations:
Predicted earnings per share: $1.24 versus $1.73
Revenue: $1.37 billion as opposed to the 1.26 billion anticipated
A statement from the company, net income more than tripled to $599.2 million, or $1.73 per share, in the quarter from $172.3 million, or 51 cents per share, in the same period last year. From $953.3 million a year earlier, revenue increased by 43%.
The company’s AI-powered advertising technology propelled AppLovin to become the top-performing U.S. tech stock last year, with a 700% increase.
AppLovin’s 2.0 version of their ad search engine, AXON, was introduced in 2023. It facilitates the placement of more focused advertisements on the company’s own gaming apps and is also utilised by studios that license the technology.
Source (CNBC)
