AppLovin Shares Surge 34% Despite Q1 Miss


AppLovin Corporation (NASDAQ:APP) shares surged more than 34% on Thursday despite Q1 results coming in worse than the consensus estimates. Quarterly EPS came in at ($0.31) and revenue at $625 million, both missing the Street estimates of ($0.08) and $823.37 million, respectively.
The company lowered its 2022 revenue guidance to a range of $3.14-3.44 billion, below the Street estimate of $3.69 billion, while the adjusted EBITDA estimate was raised to $1.20 billion from $1 billion at the midpoint. The raise reflects the ongoing growth of the Software Platform business and expected operating improvements in Apps.
The rapid growth of the Software Platform and the massive reach post-MoPub acquisition give the company confidence that it is still able to do well with less reliance on first-party data from its games. That means the company will not only reduce UA investments into those games, but also consider divesting the first-party game business if that makes financial sense.


Follow us on Google news for more updates and News










Full Disclaimer








>

FREE

Get the most important news and analyses for Free.

Thank you for subscribing.

Something went wrong.