Investing.com — AppLovin, the artificial intelligence-based mobile advertising platform, reported better-than-expected first-quarter revenue and earnings, as demand for its advertising services and artificial-intelligence powered tools remained robust.
Shares in the company rallied more than 7% in extended hours of trading on Wednesday.
The company’s platform facilitates the digital ads that surround mobile apps, especially games.
The company posted first-quarter adjusted earnings of $3.56 a share, up 59% from a year ago and was $0.14 better than the analyst estimate of $3.42.
Revenue for the quarter came in at $1.84 billion versus the consensus estimate of $1.78 billion.
“Investor expectations for eCommerce have come down considerably. We think that largest pool of marginal buyers is looking for an eCommerce inflection to signal that AppLovin is on its way to becoming the third largest GTM channel behind Google and Meta,” BofA analysts had said in a note.
The company’s momentum looks set to continue with Q2 revenue guidance of up to $1.95 billion, moving past analysts’ projections of $1.9 billion
For the second quarter, BofA does not expect a General Availability launch of AppLovin’s self-serve eCommerce platform to meaningfully affect revenue, noting that “newly onboarded advertisers don’t spend much in the first few months after joining.”
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