AppLovin Stock Jumps on Q1 as Advertising Market Improves

Mobile app marketing platform AppLovin (APP) late Wednesday crushed Wall Street’s first-quarter targets and set them higher for the current period. AppLovin shares jumped in extended trading.

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The Palo Alto, California-based company earned 67 cents per share on revenue of $1.06 billion in the quarter ended in March. Analysts polled by FactSet expected earnings of 57 cents per share on revenue of $974 million. In the year-ago period, AppLovin lost a cent per share on revenue of $715 million.

For the current quarter, AppLovin forecast revenue of $1.06 billion to $1.08 billion. The $1.07 billion midpoint exceeded Wall Street’s second-quarter target of $1.01 billion.

“The first quarter marked a strong start to 2024 with excellent business performance driven by the continued improvement of our Axon technology,” CEO Adam Foroughi and Chief Financial Officer Matt Strumpf said in a shareholder letter.

They added: “We were encouraged to see improvement in the app advertising market with another quarter of year-over-year market growth and a continued shift to real-time bidding.”

AppLovin shares rise on report

During after-hours trading on the stock market today, AppLovin stock rose 8.1% to 80. During the regular session Wednesday, AppLovin stock fell 4% to close at 74.

Late trades on Wednesday sent AppLovin shares to record highs. APP shares rose to 84 in after-hours trading after the earnings news. The company’s all-time high during the regular session was 79.55, reached on April 9.

AppLovin’s software platform allows app developers to market, monetize, and analyze their apps. The company also makes mobile games such as ‘Bingo Story’, ‘Game of War’ and ‘Solitaire Cruise’.

AppLovin stock is on the IBD Tech Leaders list.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer tech, software and semiconductor stocks.

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