AppLovin Corporation (APP) saw its stock surge nearly 30% in after-hours trading on Wednesday, following the company's stellar fourth-quarter 2024 earnings release that exceeded analyst estimates for both earnings and revenue. The mobile app technology firm's impressive performance was driven by robust growth in its AI-powered advertising solutions, particularly the Axon 2.0 ad engine.
For the quarter ended December 31, 2024, AppLovin reported:
Revenue: $1.37 billion, up 44% year-over-year and beating analyst consensus of $1.26 billion
Earnings per share (EPS): $1.73, significantly higher than the expected $1.25 and marking a 253% increase from the prior year
AppLovin's strong results can be attributed to the growing popularity of its AI-driven ad targeting and optimization solutions within the mobile gaming and app markets. According to analysts, the company's Axon 2.0 AI engine has helped AppLovin capture a significant share of the $15 billion mobile gaming advertising spend, driving its recent outsized results.
In addition to the robust Q4 numbers, AppLovin provided strong guidance for the first quarter of 2025. The company expects revenue to be between $1.36 billion and $1.39 billion, ahead of analyst estimates of $1.32 billion. AppLovin's management highlighted the potential for further growth, driven by ongoing advancements in AI technology and personalized advertising experiences.
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