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Investing.com -- AppLovin reported Wednesday Q1 results that exceeded Wall Street estimates and the digital advertising platform said it reached a deal to sell its mobile gaming business.
AppLovin Corp (NASDAQ:APP) jumped more than 14% in premarket trading Thursday following the report.
For the three months ended Mar. 31, the company reported earnings of $1.67 per diluted share on revenue of $1.48 billion, topping estimates for EPS of $1.43 on revenue of $1.38B.
Advertising revenue for the quarter grew 71% year-over-year, notably ahead of the 55% growth expected by analysts.
AppLovin’s advertising segment delivered first-quarter adjusted EBITDA that exceeded analyst expectations by 15%, achieving a record Q1 adjusted EBITDA margin of 81%.
"Q1 results should fuel the bull case for the stock," Jefferies analysts said in a post-earnings note, stressing that the company is "firing on all cylinders."
For Q2, the company forecast total advertising revenue in a range of $1.20B to $1.22B.
The company said it agreed to sell its mobile gaming business to Tripledot Studios for $400 million in cash and a 20% stake in Tripledot. The transaction is expected to close in the second quarter of 2025.
Yasin Ebrahim contributed to this report.