AppLovin Q1 Revenue Beats at $1.84 Billion

AppLovin Corporation reported first-quarter earnings that exceeded analyst expectations, with revenue of $1.84 billion and adjusted earnings per share of $3.56, surpassing forecasts of $1.77 billion and $3.44 per share, respectively. The results, released after market close on Wednesday, highlighted 59 percent year-over-year revenue growth and adjusted EBITDA of $1.56 billion, up 66 percent from the prior year with an 85 percent margin.

The Palo Alto-based mobile advertising technology company attributed the performance to strength across its gaming and consumer segments, including accelerating ecommerce adoption on its AI-powered AXON 2 platform. Revenue rose 11 percent sequentially, topping the company's prior guidance for 5 to 7 percent growth. AppLovin also generated $1.30 billion in cash flow from operations and free cash flow, ending the quarter with $2.76 billion in cash after repurchasing $1 billion worth of shares, reducing outstanding Class A and B shares to 336 million.

For the current second quarter, AppLovin guided revenue between $1.92 billion and $1.95 billion, ahead of analyst estimates around $1.90 billion, with adjusted EBITDA projected at $1.62 billion to...