Applovin stock skyrockets 25% after company posts surprise profit, higher revenue

By Claudia Assis

Applovin's 'successful' roll-out of ad product powered quarterly revenue

Shares of Applovin Corp. jumped about 25% in the after-hours session Wednesday after the software company swung to a surprise profit and reported better-than-expected revenue in its second quarter, pinning the outperformance on a "successful" rollout of its newest advertising product.

Applovin (APP) earned $80 million, or 22 cents a share, in the quarter, contrasting with a loss of $22 million, or 6 cents a share, in the year-ago period. Revenue fell 3% to $750 million, the company said.

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Analysts polled by FactSet expected the company to report EPS of 8 cents a share on sales of $724 million.

"Our steady focus on execution, investment in our team, and the ongoing enhancement of our core technologies are driving consistent growth and opening new opportunities for expansion," Applovin executives said in a letter to shareholders accompanying results.

Applovin guided for third-quarter revenue of $780 million to $800 million, which would compare with FactSet consensus for revenue of $742 million. The stock ended the regular trading day down 2.1%.

-Claudia Assis

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08-10-23 0806ET

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