AppLovin Corporation (APP.US) shares skyrocketed by 46% to a record high of $245.1 after the mobile software company delivered exceptional third-quarter results and announced a $2 billion expansion of its share buyback program. The company reported revenue of $1.2 billion, surpassing analyst expectations of $1.13 billion, with particularly strong performance in its Software platform segment, which grew 66% year-over-year.
The company's earnings per share reached $1.25, significantly beating estimates of 94 cents, while generating impressive free cash flow of $545 million. AppLovin's success is largely attributed to improvements in its AXON machine-learning algorithm, which has enabled advertising partners to scale their spending more effectively.
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Create account Try a demo Download mobile app Download mobile appLooking forward, AppLovin projects fourth-quarter revenue between $1.24 billion and $1.26 billion, with adjusted EBITDA expected to range from $740 million to $760 million. The company is also expanding into e-commerce, with early pilot results exceeding internal expectations.
With $2.3 billion now available for share repurchases and continued AI-driven growth in its advertising network, AppLovin appears well-positioned for sustained momentum despite its already remarkable stock performance this year.
Source: xStation
