AppLovin (NASDAQ:APP) Releases Quarterly Earnings Results, Beats Expectations By $0.12 EPS

AppLovin (NASDAQ:APP) posted its quarterly earnings results on Wednesday. The company reported $0.89 earnings per share for the quarter, beating the consensus estimate of $0.77 by $0.12, Briefing.com reports. AppLovin had a net margin of 16.46% and a return on equity of 51.55%. The firm had revenue of $1.08 billion during the quarter, compared to the consensus estimate of $1.08 billion. During the same quarter in the previous year, the firm posted $0.22 earnings per share. The company’s revenue was up 44.0% on a year-over-year basis. AppLovin updated its Q3 2024 guidance to EPS.

AppLovin Stock Performance

Shares of NASDAQ:APP traded up $0.65 on Friday, hitting $77.38. 4,907,309 shares of the company were exchanged, compared to its average volume of 4,142,467. AppLovin has a 1-year low of $33.17 and a 1-year high of $91.91. The stock’s 50 day moving average price is $80.00 and its 200 day moving average price is $71.13. The company has a current ratio of 2.11, a quick ratio of 2.11 and a debt-to-equity ratio of 4.59. The firm has a market capitalization of $25.46 billion, a P/E ratio of 46.06, a price-to-earnings-growth ratio of 1.27 and a beta of 1.86.

Analyst Ratings Changes

Several equities analysts recently issued reports on the stock. Oppenheimer reissued an “outperform” rating and set a $105.00 price objective (up from $97.00) on shares of AppLovin in a report on Thursday. Jefferies Financial Group lifted their price objective on shares of AppLovin from $93.00 to $105.00 and gave the company a “buy” rating in a report on Thursday, May 9th. Wedbush cut their price objective on shares of AppLovin from $100.00 to $90.00 and set an “outperform” rating on the stock in a report on Thursday. Stifel Nicolaus lifted their price objective on shares of AppLovin from $85.00 to $98.00 and gave the company a “buy” rating in a report on Thursday, May 9th. Finally, Daiwa Capital Markets assumed coverage on shares of AppLovin in a report on Monday, April 15th. They set a “neutral” rating and a $80.00 price objective on the stock. One investment analyst has rated the stock with a sell rating, five have assigned a hold rating and twelve have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, AppLovin presently has an average rating of “Moderate Buy” and a consensus target price of $71.60.

Insider Transactions at AppLovin

In other news, major shareholder Kkr Group Partnership L.P. sold 17,500,000 shares of AppLovin stock in a transaction on Monday, May 13th. The shares were sold at an average price of $83.36, for a total transaction of $1,458,800,000.00. Following the completion of the sale, the insider now directly owns 366,567 shares in the company, valued at $30,557,025.12. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In related news, major shareholder Kkr Group Partnership L.P. sold 17,500,000 shares of the business’s stock in a transaction on Monday, May 13th. The shares were sold at an average price of $83.36, for a total transaction of $1,458,800,000.00. Following the completion of the transaction, the insider now directly owns 366,567 shares in the company, valued at $30,557,025.12. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Craig Scott Billings sold 5,620 shares of the business’s stock in a transaction on Monday, May 13th. The shares were sold at an average price of $84.97, for a total transaction of $477,531.40. Following the transaction, the director now owns 1,780 shares of the company’s stock, valued at $151,246.60. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 17,709,742 shares of company stock worth $1,477,073,771. Company insiders own 14.69% of the company’s stock.

About AppLovin

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products.