AppLovin Corporation (NASDAQ:APP) shares are trading higher Thursday after the company reported better-than-expected third-quarter financial results Wednesday after the market closed and issued fourth-quarter revenue guidance above estimates.
- AppLovin stock is surging to new heights today. What’s behind APP gains?
AppLovin Beats Estimates, Revenue Jumps 55% to Record $2.185B
AppLovin reported third-quarter earnings per share of $4.30, beating the consensus estimate of $4.07, up from $2.45 a year earlier. It reported revenue of $2.185 billion, up 55% from a year earlier and a company record, beating the consensus estimate of $2.078 billion. Net income rose 72% to $1.439 billion, a 66% margin, and adjusted EBITDA rose 59% to $1.842 billion, an 84% margin.
Free cash flow was $1.4 billion. AppLovin’s revenue and adjusted EBITDA both exceeded the high end of its guidance, and CEO Adam Foroughi said the company partially rolled out a new generation of advertising models during the quarter.
"This was a record quarter, revenue of $2.18 billion, up 55% year-over-year," Foroughi said, calling it the largest sequential dollar step-up in revenue in company history.
AppLovin Repurchases $1.4B of Stock, Raises Buyback Authorization by $3.2B
During the third quarter, AppLovin repurchased and withheld 4.1 million shares of its Class A common stock, at a total cost of $1.4 billion, and had 331 million Class A and Class B shares outstanding at quarter-end. The board approved a $3.2 billion increase to the repurchase authorization, bringing the total current authorization to $3.6 billion as of the end of October.
AppLovin Guides Fourth Quarter Well Above Estimates
AppLovin expects fourth-quarter revenue of $2.365 billion to $2.395 billion, or about 43% to 44% growth from a year earlier, versus the consensus estimate of $2.251 billion. It expects adjusted EBITDA of $1.995 billion to $2.025 billion.
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AppLovin Shares Rush Higher
APP Price Action: At the time of publication, Applovin shares are trading 17.28% higher at $318.57, according to data from Benzinga Pro.
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