Cloud Stocks: AppLovin Continues To Deliver With AI

Photo Credit: Gerd Altmann / Pixabay
App monetization capabilities provider AppLovin (Nasdaq: APP) reported its quarterly results recently that surpassed market expectations. During the year, the company’s stock went up by 258%. And, the growth story appears to be continuing. 

AppLovin’s Financials
AppLovin’s third-quarter revenues grew 21% to $864 million, surging ahead of the market’s estimates of $796 million. It ended the quarter with non-GAAP earnings of $0.30 per share, compared with an EPS of $0.27 per share forecast by the market.By segment, Software Platform revenues grew 65% to $504 million, and adjusted EBITDA grew 91% to $364 million. Revenue from Apps fell 11% to $360 million.For the current quarter, AppLovin expects revenues of $910-$930 million, which was also significantly ahead of the market’s expectations of $834 million.

AppLovin’s Growth Focus
The company attributed its strong performance to the continued strong performance of Axon 2.0, its AI-based advertising engine that powers its AppDiscovery platform. And, it continues to invest in the growth of Axon 2.0. It recently announced that it has integrated Axon 2.0 into its connected TV business as well as its mobile platform Applovin Array. This integration will help improve the potential for improved efficiency across the new channels.Some of the new features added to Axon in the recent past include the ability to drive greater automation based on being able to determine more accurately where to spend to best deliver on performance goals. The capability allows advertisers to see improved campaign effectiveness by letting them run multiple campaign types to acquire users with different, but complementary, retention curves. Advertisers can also run agile campaigns faster and find high-value users worldwide instead of focusing on a smaller set of regional markets. AppLovin’s performance has been rewarded by the stock market as well. Its stock is trading at $39.12 with a market capitalization of $13.1 billion. The stock has grown over 200% during the year. It was trading at a 52-week low of $9.22 a year ago, and had climbed to a 52-week high of $45.10 soon after results announcement in November. More By This Author:Cloud Stocks: Analysis of AMD’s AcquisitionsAnalysis of Cisco’s Splunk AcquisitionCloud Stocks: Adobe Calls Off Figma Acquisition


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