Applovin Corp., a leading app-monetization company, has experienced a significant boost in its stock value following strong earnings and a positive outlook for the current quarter. The company’s fourth-quarter revenue reached an impressive $953 million, a 36% increase compared to the previous year. This exceeded the FactSet consensus view of $929 million. Additionally, Applovin reported a net income of $172 million, or 49 cents per share, compared to a loss of $80 million, or 21 cents per share, in the same period last year. Analysts had projected earnings per share of 35 cents.
According to Applovin’s shareholder letter, the company attributed its success to several factors. Firstly, the holiday season played a significant role in boosting revenue. Additionally, the overall growth in the mobile-app advertising market and bidding enhancements contributed to the company’s positive performance. Applovin believes that these factors will continue to improve advertising efficiency and lead to further growth for its partners.
Looking ahead, Applovin has projected total revenue of $955 million to $975 million for the first quarter. Furthermore, the company expects adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to range between $475 million and $495 million. These forecasts surpassed the FactSet consensus estimates of $912 million in revenue and $440 million in adjusted EBITDA.
To further demonstrate their commitment to shareholder value, Applovin announced an increase in its stock-buyback program by $1.25 billion. The company aims to deliver long-term shareholder value through strategic share management and generating free cash flow.
The positive news from Applovin has also had a positive impact on its peer, Unity Software Inc. Shares of Unity Software Inc. rose approximately 1% in aftermarket trading on Wednesday.
Overall, Applovin’s strong earnings forecast and better-than-expected results have propelled its stock to new heights. The company’s focus on delivering long-term value to shareholders and its optimistic outlook for the future indicate that Applovin is well-positioned for continued success in the app-monetization industry.
