Shares of Applovin ripped more than 30% higher Thursday after the company reported a fourth-quarter earnings beat, causing many analysts to lift their price targets.The ad tech company said on its earnings call it was divesting its apps business, as the company aims to move into other verticals for their AI-powered AXON advertising software like fintech, insurance and automotive.Analysts at Wolfe praised the sale of the apps segment, saying the company's financials "gets cleaner at a time when its growth ou ...

The optimism around AppLovin (NASDAQ: APP ) remains massive, and the stock soared by almost 30% yesterday to $492 after the fresh earnings release. This made my previous 'Strong sell' recommendation looking not good at all because the share price was around $300Coming from an IT background, I have dived into the U.S. stock market seven years ago by managing portfolio of my family. Starting managing real money has been challenging for the first time, but long hours of mastering fundamental analysis of public ...

AppLovin Corp (NASDAQ: APP) — a company providing a full suite of solutions for mobile app developers, including marketing, monetization, and analytics — recently posted strong quarterly results. The company reported earnings of $1.73 per share on revenue of $1.37 billion for Q4, surpassing analyst expectations of $1.24 per share on $1.26 billion in revenue. Additionally, its optimistic outlook drove the stock up nearly 30% in after-hours trading.CHONGQING, CHINA - FEBRUARY 9: In this photo illustration, th ...

Financial Data and Key Metrics Changes - Total revenue increased by 44% year-over-year to $1.37 billion, while adjusted EBITDA rose by 78% to $848 million, achieving a 62% adjusted EBITDA margin [21][49]. - Free cash flow for Q4 was $695 million, up 105% year-over-year, with a quarter-over-quarter growth of 28% [22][50]. - The company ended Q4 with $741 million in cash and cash equivalents [23][51]. Business Line Data and Key Metrics Changes - The Advertising business generated $999 million in revenue and $777 million in adjusted EBITDA, achieving a 78% margin [23][51]. - Apps revenue for the quarter was $373 million, a 1% decrease from last year, with $71 million in adjusted EBITDA, representing a 19% margin [26][54]. Market Data and Key Metrics Changes - The company is expanding its focus beyond gaming to serve the entire global advertising economy, with a platform that reaches over 1 billion people daily [10][14]. - The early pilots for ecommerce advertisers showed positive outcomes, indicating a broader market opportunity [12][40]. Company Strategy and Development Direction - The company is transitioning to a pure advertising platform, emphasizing productivity, automation, and building lean teams [19][47]. - An exclusive term sheet has been signed to sell the Apps business for an estimated $900 million, including $500 million in cash [25][53]. - The focus for 2025 includes developing automated tools to allow more businesses to utilize the platform effectively [15][44]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the ecommerce segment, anticipating it to contribute materially to revenue in 2025 [84]. - The company aims to leverage AI and automation to enhance operational efficiency and drive growth [65][86]. Other Important Information - The company reported an adjusted EBITDA per employee of approximately $3 million in the Advertising business, with expectations for this metric to rise as processes are refined [19][47]. - The company has repurchased or withheld a total of 25.7 million shares for a total cost of $2.1 billion during the year [28][56]. Q&A Session Summary Question: Insights on ecommerce growth and scaling - Management confirmed that the platform's technology works across various categories, indicating confidence in scaling beyond DTC marketers [62][64]. Question: Model enhancements and their impact on growth - Management noted ongoing improvements in their models contributed to growth, alongside seasonal factors during Q4 [76][80]. Question: Expectations for ecommerce contribution in 2025 - Management remains confident in ecommerce's material contribution to revenue in 2025, though specifics on timing and amount remain uncertain [84][85]. Question: Inventory conversion for ecommerce vs gaming - Management clarified that the same inventory is used for both ecommerce and gaming, with full-screen video ads being the primary format [125]. Question: Take rate dynamics between gaming and ecommerce - Management indicated that as monetization improves, the take rate naturally increases, but they do not optimize for it [131][132].

AppLovin (APP) reported $1.37 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 44%. EPS of $1.73 for the same period compares to $0.49 a year ago.The reported revenue represents a surprise of +8.62% over the Zacks Consensus Estimate of $1.26 billion. With the consensus EPS estimate being $1.34, the EPS surprise was +29.10%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine the ...

Wednesday, February 12, 2025Market indexes fought back courageously today, after sinking an hour before the opening bell on hotter-than-expected Consumer Price Index (CPI) numbers. Although it demonstrates a stronger economy than most analysts had predicted we’d be in by this time, higher CPI is an inflationary metric — not good for interest rates nor the price of eggs coming down.The Dow, which had been down more than -400 points to start the trading session, finished down -225 points. The S&P 500 closed - ...

AppLovin (APP) came out with quarterly earnings of $1.73 per share, beating the Zacks Consensus Estimate of $1.34 per share. This compares to earnings of $0.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 29.10%. A quarter ago, it was expected that this mobile app technology company would post earnings of $0.95 per share when it actually produced earnings of $1.25, delivering a surprise of 31.58%.Over the last four quarters ...

AppLovin shares soared almost 30% in extended trading on Wednesday after the company reported earnings and revenue that sailed past analysts' estimates and issued better-than-expected guidance.Here's how the company performed compared with analysts' expectations, according to LSEG:Earnings per share: $1.73 vs. $1.24 expectedRevenue: $1.37 billion vs. $1.26 billion expectedNet income in the quarter more than tripled to $599.2 million, or $1.73 per share, from $172.3 million, or 51 cents per share, a year ear ...

Revenue Performance - Advertising revenue for Q4 2024 reached $999.5 million, a 73% increase from $576.5 million in Q4 2023[2] - Total revenue for the full year 2024 was $4.71 billion, up 43% from $3.28 billion in 2023[2] - Revenue for Q4 2024 reached $1,372,779, a 44% increase from $953,261 in Q4 2023[18] - Full-year revenue for 2024 was $4,709,248, up 43% from $3,283,087 in 2023[18] - Advertising segment revenue for Q4 2024 was $999,487, up 73% from $576,489 in Q4 2023[24] Net Income and Profitability - Net income for Q4 2024 was $599.2 million, representing a 248% increase compared to $172.2 million in Q4 2023[2] - Net income for Q4 2024 was $599,204, compared to $172,233 in Q4 2023, representing a 248% increase[18] - The company reported a net margin of 44% for Q4 2024, significantly higher than 18% in Q4 2023[22] Cash Flow and Financial Health - Free cash flow for the full year 2024 was $2.1 billion, with Q4 free cash flow at $695 million[5] - Total cash provided by operating activities for 2024 was $2,099,011, an increase of 97% from $1,061,510 in 2023[20] - Free Cash Flow for 2024 was $2,073,360, compared to $1,037,094 in 2023, reflecting a 100% increase[21] - Cash and cash equivalents as of December 31, 2024, were $741.4 million, up from $502.2 million in 2023[17] - The cash and cash equivalents at the end of 2024 were $741,411, up from $502,152 at the end of 2023[20] Share Repurchase and Debt Management - The company repurchased 1.6 million shares in Q4 2024 at a cost of $0.5 billion, totaling 25.7 million shares repurchased for $2.1 billion in the full year[5] - Principal repayments of debt in 2024 totaled $4,225,223, compared to $497,994 in 2023[20] Future Outlook - The company expects Q1 2025 total revenue to be between $1.355 billion and $1.385 billion[3] Segment Changes - The company has renamed its "Software Platform" segment to "Advertising" to better align with its core business focus[3] Asset Growth - Total assets increased to $5.87 billion in 2024 from $5.36 billion in 2023[17] Adjusted EBITDA - Adjusted EBITDA for Q4 2024 was $848 million, an increase of 78% from $476.2 million in Q4 2023[2] - Adjusted EBITDA for 2024 was $2,719,605, a 81% increase from $1,502,658 in 2023[22]

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the task of finding cutting-edge growth stocks is made easy with the help of the Z ...