Why AppLovin Stock Trounced the Market Today

"AppLovin unveiled those results just after market close on Wednesday, revealing that the niche tech company's revenue grew a sturdy 59% year over year to $1.84 billion. The company's net income adjusted for discontinued operations was $1.2 billion ($3.56 per share), more than double the year-ago quarter's $576 million. Both line items landed comfortably above the consensus analyst estimates, which were $1.78 billion for revenue and $3.42 per share for adjusted net income."

"During the conference call discussing the quarter's results, management said it experienced revenue growth in both its core gaming segment and its rapidly burgeoning (and recently reworked) consumer vertical. A top-line beat on Q2 guidance AppLovin also proffered guidance for its current (second) quarter, stating that it expects revenue ranging from just under $1.92 billion to nearly $1.95 billion; the average analyst projection is $1.9 billion."

"Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to land at a bit below $1.62 billion to almost $1.65 billion. Given that both the gaming and "new" consumer verticals seem to be roaring just now, I'd be bullish on AppLovin's future. The mobile app advertising market remains underdeveloped and underserved, and this company is effectively filling the void."

"It was no wonder -- the company published first quarter results that delivered a pair of convincing beats on analyst estimates. It was rewarded for this with a 6%-plus increase in its share price by grateful investors."

AppLovin reported first-quarter results after market close, showing revenue growth of 59% year over year to $1.84 billion. Adjusted net income was $1.2 billion, or $3.56 per share, more than double the prior-year quarter. Both revenue and adjusted earnings beat consensus analyst estimates of $1.78 billion and $3.42 per share. Management reported revenue growth in both the core gaming segment and a rapidly growing consumer vertical that has been recently reworked. For the second quarter, AppLovin guided revenue between just under $1.92 billion and nearly $1.95 billion, with average analyst expectations around $1.9 billion. Adjusted EBITDA was expected to range from just below $1.62 billion to almost $1.65 billion.

Read at Yahoo Finance