AppLovin, a mobile app marketing platform headquartered in Palo Alto, California, surpassed Wall Street’s expectations for the first quarter and provided higher guidance for the current period. The company reported earnings of 67 cents per share on sales of $1.06 billion for the quarter ended in March, beating analysts’ estimates of 57 cents per share on $974 million in sales. This growth was a significant improvement from the previous year when AppLovin reported a loss of one cent per share on $715 million in sales.
AppLovin anticipates revenue between $1.06 billion and $1.08 billion for the upcoming quarter, with the midpoint of $1.07 billion exceeding Wall Street’s estimate of $1.01 billion for the second quarter. The company attributed its 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 AppLovin’s success.
Following the earnings report, AppLovin’s stock price rose by 8.1% during after-hours trading, reaching $80. Despite declining by 4% in regular trading that closed at $74, the stock reached 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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