By Connor Hart
Applovin reported higher profit and sales in the first quarter as its advertising business continued to grow rapidly, sending its shares sharply higher in after-hours trading.
The stock jumped 14%, to $347, in late trading. Through Wednesday's close, shares have nearly quadrupled in value over the past year.
The tech company, which connects advertisers with mobile-game developers, posted a profit of $576.4 million, or $1.67 a share, for the March quarter, compared with $236.2 million, or 67 cents, a year earlier.
Analysts were looking for $1.44 a share, according to FactSet.
Revenue increased 40% to $1.48 billion, ahead of analyst estimates for $1.38 billion.
The company's advertising business notched revenue of $1.16 billion, up 71% from a year ago, though the gain was partially offset by app revenue, which fell 14% to $325 million.
Applovin remains on track to close on the sale of its mobile gaming division in the second quarter, the company said. Under the deal, which was first disclosed in February, the company will sell its gaming unit to privately-held Tripledot Studios for $400 million in cash, as well as an approximately 20% stake in Tripledot's common equity.
During the recent quarter, Applovin made a bid for TikTok and talked with casino magnate Steve Wynn about backing it. Prior to making the bid, some analysts had said that Applovin could be the next TikTok, citing the company's powerful artificial intelligence that can collect data on app users and use it to tailor ads.
For the current quarter, Applovin guided for advertising revenue between $1.2 billion and $1.22 billion.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
May 07, 2025 16:46 ET (20:46 GMT)
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