AppLovin, a mobile app marketing platform based in Palo Alto, California, exceeded Wall Street’s expectations for the first quarter and provided a higher guidance for the current period, leading to a jump in its stock price during extended trading. The company reported earnings of 67 cents per share on sales of $1.06 billion for the quarter ended in March, surpassing analysts’ estimates of 57 cents per share on $974 million in sales. This growth marked a significant improvement from the previous year when AppLovin reported a loss of one cent per share on $715 million in sales.
For the upcoming quarter, AppLovin anticipates revenue between $1.06 billion and $1.08 billion, with the midpoint of $1.07 billion exceeding Wall Street’s estimate of $1.01 billion for the second quarter. The company attributed this success to the strong performance of its Axon technology, which drove exceptional business results. The app advertising market demonstrated positive growth during the quarter, with a shift towards real-time bidding contributing to the company’s success.
Following the earnings report, AppLovin’s stock rose by 8.1% during after-hours trading, reaching $80. Despite a 4% decline in the regular trading session that closed at $74, the stock surged to a record high of $84 in after-hours trading. AppLovin’s software platform offers app developers tools to market, monetize, and analyze their apps, while also developing popular mobile games like “Bingo Story,” “Game of War,” and “Solitaire Cruise.” Their stock is featured on the IBD Tech Leaders list.
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