From CNBC: 2024-11-07 12:39:25

AppLovin CEO Adam Foroughi saw shares of the company surge 45% after issuing guidance above estimates and reporting strong earnings. The stock is up 515% this year, surpassing all other tech companies valued at $5 billion or more. Revenue in Q3 increased 39% to $1.2 billion, with EPS at $1.25.

For the fourth quarter, AppLovin expects revenue of $1.24 billion to $1.26 billion, representing about 31% growth. The company attributes its growth to the success of its AI advertising engine called AXON, which helps improve ad targeting. Software platform revenue in the quarter increased 66% to $835 million.

AppLovin’s profitability is attracting Wall Street, with net income in the quarter up 300% to $434.4 million. The company’s adjusted profit margin for the software platform was 78%. Analysts at Wedbush recommend buying the stock and increased their price target from $170 to $270. CEO Adam Foroughi’s net worth increased by more than $2 billion to about $7.4 billion.

AppLovin’s CEO provided an update on the company’s pilot e-commerce project, which allows businesses to offer targeted ads in games. Foroughi called it the best product he’s seen released by the company and expects it to have a significant impact on the business financially in 2025 and beyond.



Read more at CNBC:: AppLovin, top tech stock of 2024, soars another 45% on earnings beat