AppLovin (APP) surges 16% after 'handily' earnings beat

AppLovin (NASDAQ: APP) announced strong third-quarter results on Wednesday, which sent stock rallying over 12% in after-hours trading.

The company reported quarterly revenue of $864.3 million, exceeding the consensus estimate of $798 million. Additionally, the earnings per share (EPS) for the quarter were 30 cents, ahead of the expected 27 cents.

“We are thrilled to announce our best quarter ever leading to very strong financial results,” said
Adam Foroughi, CEO and Co-Founder of AppLovin.

In the year-to-date period, AppLovin repurchased $1.154 billion of Class A common stock at a weighted average price below $25 per share.

Furthermore, the company disclosed that Herald Chen, the President and Chief Financial Officer, is set to transition from his full-time role with AppLovin by the end of 2023.

While departing from his full-time position, he will maintain his presence on the AppLovin Board of Directors and take on the role of Advisor to the CEO.

Matt Stumpf, current Vice President of Finance, has been appointed as new Chief Financial Officer.

BTIG analyst Clark Lampen reiterated a Buy rating on APP stock and hiked the price target to $50 per share.

"The takeaways are largely positive exiting the print with ’23/24 estimates up substantially and our price target raised $4 to reflect those revisions with a consistent valuation framework," Lampen said.

By Senad Karaahmetovic

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