Mobile app marketing platform AppLovin late Wednesday crushed Wall Street's targets for the fourth quarter and guided higher than views for the current period. APP stock jumped in extended trading on Valentine's Day.
The Palo Alto, Calif.-based company earned 49 cents a share on sales of $953 million in the December quarter. Analysts polled by FactSet had expected earnings of 35 cents a share on sales of $929 million. In the year-earlier quarter, AppLovin lost 21 cents a share on sales of $702 million.
In a letter to shareholders, AppLovin management cited several factors for the better-than-expected Q4 results. They included "a strong holiday season" and year-over-year growth in the mobile app advertising market.
For the current quarter, AppLovin forecast revenue of $955 million to $975 million. The midpoint of $965 million easily topped estimates for $912 million in the first quarter. In the same quarter last year, it generated sales of $715 million.
APP Stock Surges After Q4 Report
In after-hours trading on the stock market today, APP stock jumped more than 12% to 52.90. During the regular session Wednesday, AppLovin stock advanced 2.3% to close at 46.87.
On Jan. 23, APP stock broke out of a cup-with-handle base at a buy point of 44.57, according to IBD MarketSmith charts.
AppLovin's software platform enables 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 ranks ninth out of 36 stocks in IBD's Computer Software-Special Enterprise industry group, according to IBD Stock Checkup. APP stock has an IBD Composite Rating of 93 out of 99.
Further, APP stock is on the IBD Tech Leaders list.
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