AppLovin soars almost 30% on earnings, guidance beat

AppLovin soars almost 30% on earnings, guidance beat


Adam Foroughi, CEO of AppLovin.

CNBC

AppLovin shares soared almost 30% in extended trading on Wednesday after the company reported earnings and revenue that sailed past analysts’ estimates and issued better-than-expected guidance.

Here’s how the company performed compared with analysts’ expectations, according to LSEG:

  • Earnings per share: $1.73 vs. $1.24 expected
  • Revenue: $1.37 billion vs. $1.26 billion expected

Net income in the quarter more than tripled to $599.2 million, or $1.73 per share, from $172.3 million, or 51 cents per share, a year earlier, the company said in a statement.

Revenue jumped 43% from $953.3 million a year earlier.

AppLovin was the best-performing U.S. tech stock last year, soaring more than 700%, driven by the company’s artificial intelligence-powered advertising system. In 2023, AppLovin released the updated 2.0 version of its ad search engine called AXON, which helps put more targeted ads on the gaming apps the company owns and is also used by studios that license the technology.

AppLovin’s business has been split between advertising and apps, which is primarily made up of game studios that the company has acquired over the years. With the historic growth in its advertising unit, the apps business has become much less important, and now the company says it is selling it off.

“Today we’re announcing we’ve signed an exclusive term sheet to sell all of our apps business,” CEO Adam Foroughi said on the earnings call.

Later in the call, the company said it has signed a term sheet for the sale for a “total estimated consideration” of $900 million. That includes $500 million in cash, “with the remainder representing a minority equity stake in the combined private company.”

Advertising revenue climbed 73% in the quarter to almost $1 billion. The ad business was previously categorized as Software Platform. The company said it made the change because advertising accounts for “substantially all of the revenue in this segment.”

AppLovin said it expects first-quarter revenue of between $1.36 billion and 1.39 billion, exceeding the $1.32 billion average analyst estimate, according to LSEG. More than $1 billion of that will come from its advertising segment, as the company said it is “still in the early stages” of bolstering its AI models.

“The roadmap ahead is filled with opportunities for iteration,” the company said in its shareholder letter. “As we execute, we believe we can continue to drive value creation for our shareholders.”

WATCH: AppLovin shares jump

Applovin shares jump more than 15% on earnings beat



Source

Pinterest shares rise 15% on better-than-expected guidance
Technology

Pinterest shares rise 15% on better-than-expected guidance

Bill Ready, CEO of Pinterest, rings the opening bell at the New York Stock Exchange on May 15, 2024. Brendan McDermid | Reuters Pinterest shares rose 15% in extended trading Thursday after the company reported first-quarter earnings and provided better-than-expected guidance. Here’s how the company did, compared to analysts’ consensus estimates from LSEG: Revenue: $855 […]

Read More
Celsius CEO Alex Mashinsky sentenced to 12 years in multi-billion-dollar crypto fraud case
Technology

Celsius CEO Alex Mashinsky sentenced to 12 years in multi-billion-dollar crypto fraud case

Alex Mashinsky, former chief executive officer of Celsius Network Ltd., arrives at court in New York, US, on Thursday, May 8, 2025. Yuki Iwamura | Bloomberg | Getty Images Alexander Mashinsky, the former CEO of Celsius Network, was sentenced to 12 years in prison on Thursday after pleading guilty to two counts of fraud, a […]

Read More
Affirm drops 10% on weaker-than-expected guidance for current quarter
Technology

Affirm drops 10% on weaker-than-expected guidance for current quarter

PayPal Inc. co-founder and Affirm’s CEO Max Levchin on center stage during day one of Collision 2019 at Enercare Center in Toronto, Canada. Vaughn Ridley | Sportsfile | Getty Images Affirm, the provider of buy now, pay later loans, gave a revenue forecast for the current quarter that trailed analysts’ estimates even as profit for […]

Read More