AppLovin Q3 Revenue Jumps 55% to $2.18B; Board Adds $3.2B to Buyback
AppLovin posted Q3 revenue of $2.18 billion, up 55%, diluted EPS of $4.30 and a Q4 outlook of up to $2.395 billion, and lifted its buyback by $3.2 billion.
Shares of AppLovin Corp. climbed about 20% in premarket trading Thursday after the Palo Alto, California, advertising and marketing platform reported third-quarter revenue of $2.185 billion, up 55% from $1.405 billion a year earlier, according to results the company filed with the Securities and Exchange Commission on Wednesday and a Yahoo Finance report.
- Revenue: $2.185 billion, up 55% year over year
- Net income: $1.439 billion, up 72% from $836 million; net margin 66%
- Diluted EPS: $4.30, vs. $2.45 a year earlier
- Adjusted EBITDA: $1.842 billion, up 59%, an 84% margin
- Operating cash flow and free cash flow: about $1.4 billion each
- Nine-month revenue: $5.951 billion, up 56%
Analysts had expected revenue of $2.07 billion and earnings of $4.04 a share, Yahoo Finance reported, citing Bloomberg estimates. The results were released after the market closed Wednesday.
Fourth-quarter forecast tops estimates
AppLovin projected fourth-quarter revenue of $2.365 billion to $2.395 billion and adjusted EBITDA of $1.995 billion to $2.025 billion, implying an adjusted EBITDA margin of 84% to 85%. Yahoo Finance said analysts had been looking for about $2.25 billion in fourth-quarter revenue.
Share repurchases expand
The company said it repurchased and withheld 4.1 million Class A shares during the quarter at a total cost of $1.4 billion, leaving 331 million Class A and Class B shares outstanding at the end of September. Its board approved a $3.2 billion increase to the repurchase program, bringing total current authorization to $3.6 billion as of the end of October. AppLovin ended the quarter with $3.17 billion in cash and cash equivalents and $3.52 billion in long-term debt, according to its balance sheet.
Analysts lift price targets
BTIG raised its price target on the stock to $450 from $396 and kept a Buy rating, while Needham reiterated a Buy rating with a $475 target, Yahoo Finance reported. The shares had fallen more than 50% this year before the report, according to the outlet.
Sources: AppLovin Exhibit 99.1 (SEC), AppLovin Form 8-K (SEC), AppLovin release via Business Wire (Nasdaq), Yahoo Finance
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