Mobile app marketing firm AppLovin late Wednesday trounced Wall Street's targets for the third quarter and with its guidance for the fourth quarter. APP stock surged in extended trading.
The Palo Alto, Calif.-based company earned 30 cents a share on sales of $864 million in the September quarter. Analysts polled by FactSet had expected earnings of 27 cents a share on sales of $796 million. In the year-earlier period, AppLovin earned 6 cents a share on sales of $713 million.
AppLovin said its third-quarter results were driven by the continued strong performance of Axon 2.0, the AI-based advertising engine behind the company's AppDiscovery platform.
For the current quarter, AppLovin predicted revenue of $910 million to $930 million. The midpoint of $920 million easily topped Wall Street's goal of $834 million for the fourth quarter.
APP Stock Surges After Report
In after-hours trading on the stock market today, APP stock jumped 16.7% to 46.84. During the regular session Wednesday, APP stock dropped 1.9% to close at 40.12.
APP stock has formed a double-bottom base with a buy point of 42.22, according to IBD MarketSmith charts.
AppLovin's technology enables developers to publish, market, monetize and analyze their apps. The company also makes mobile games such as "Bingo Story," "Game of War" and "Solitaire Cruise."
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