Mobile app marketing platform AppLovin late Wednesday beat Wall Street's earnings target on in-line sales for the second quarter. It also guided higher than views for revenue in the current quarter. APP stock bounced back after falling sharply in extended trading.
The Palo Alto, Calif.-based company earned 89 cents a share on sales of $1.08 billion in the June quarter. Analysts polled by FactSet had predicted AppLovin earnings of 74 cents a share on sales of $1.08 billion. On a year-over-year basis, AppLovin earnings jumped 305% while sales increased 44%.
For the current quarter, AppLovin predicted revenue of $1.125 billion, based on the midpoint of its outlook. Wall Street was looking for third-quarter sales of $1.1 billion. In the year-earlier quarter, AppLovin reported revenue of $864 million.
On the stock market today, APP stock rallied more than 1% to 68.13 after retreating in late trades. During the regular session, APP stock fell 2.6% to close at 67.19.
AppLovin's software platform enables app developers to market, monetize and analyze their apps. The company also makes mobile games such as "Wordscapes," "Ink Inc.," "Matchington Mansion" and " Game of War."
APP Stock On Tech Leaders List
"In the second quarter of 2024, we celebrated the first anniversary of our enhanced Axon technology," Chief Executive Adam Foroughi and Chief Financial Officer Matt Strumpf said in a shareholder letter. "Reflecting on the past year, we're thrilled by the significant growth Axon drove for our advertising partners. Axon enhancements through ongoing self-learning and our dedicated development efforts have fueled robust business performance this quarter."
AppLovin stock ranks second out of 37 stocks in IBD's Computer Software-Special Enterprise industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 94 out of 99.
Further, APP stock is on the IBD Tech Leaders list.
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