Mobile app marketing platform AppLovin late Wednesday smashed Wall Street's targets for the first quarter and guided higher for the current period. AppLovin stock jumped in extended trading.
The Palo Alto, Calif.-based company earned 67 cents a share on sales of $1.06 billion in the March-ended quarter. Analysts polled by FactSet had expected earnings of 57 cents a share on sales of $974 million. In the year-earlier period, AppLovin lost a penny a share on sales of $715 million.
For the current quarter, AppLovin predicted revenue of $1.06 billion to $1.08 billion. The midpoint of $1.07 billion topped Wall Street's second-quarter target of $1.01 billion.
"The first quarter marked a strong start to 2024 with outstanding business performance driven by the continued improvement of our Axon technology," Chief Executive 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 Stock Pops After Report
In 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 put AppLovin stock in record-high trading territory. APP stock climbed as high as 84 in after-hours trading following the earnings news. The company's regular-session all-time high was 79.55, reached on April 9.
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 stock is on the IBD Tech Leaders list.
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