AppLovin's sales continued to grow in the second quarter, helping profit similarly climb.

However, the advertising company's quarterly sales were just below analysts' forecast, and it gave a softer third-quarter outlook than Wall Street was looking for.

The stock slid 25% to $314 in after-hours trading on Wednesday. At market close, shares were down 38% year to date.

AppLovin posted a second-quarter profit of $1.27 billion, compared with $819.5 million a year earlier. Earnings per share was $3.76, in line with analyst estimates, according to FactSet.

Revenue gained 53% to $1.92 billion, just below analyst estimates of $1.94 billion.

For the current third quarter, Applovin expects revenue of about $2.06 billion to $2.09 billion, compared with the $2.08 billion analysts are forecasting.

The company expects adjusted earnings before interest, taxes, depreciation and amortization of $1.71 billion to $1.74 billion for the quarter, below Wall Street's forecast of $1.76 billion.