AppLovin: A High-Flying Performance Thanks to Impressive Quarterly Figures

The stock price of the app monetization company AppLovin soared on Thursday, reaching impressive heights after the company announced outstanding financial results for the third quarter of 2024. By mid-morning, the price had risen by a full 48%, marking an all-time high of over $250 per share. For comparison, at the end of 2022, the price was still below $10. In the previous quarter, AppLovin's management had forecasted revenue of $1.135 billion and adjusted EBITDA of $650 million, both at the high end of their guidance. However, in the third quarter, the company exceeded these expectations with revenue of $1.2 billion and adjusted EBITDA of $722 million. For the upcoming quarter, management expects revenue growth of 31% compared to the previous year, based on the midpoint of their guidance range. Adjusted EBITDA is expected to increase by approximately 58%. Although these growth rates are slightly lower than those of Q3, at 39% and 72% respectively, the forecasts continue to excite investors. Even over a year after the launch of a new version of its AI software, AppLovin's growth remains remarkably stable. The company plans to expand its business long-term by 20% to 30% annually. CEO Adam Foroughi expressed in the Q3 earnings call that he is "increasingly confident" that the new direction will scale significantly by 2025 and contribute substantially to overall success. AppLovin's software traditionally focuses on the monetization of mobile games, but it is currently also successfully piloting in the e-commerce sector. This bodes well for the company to further enhance its profitable growth rates with new business fields, potentially providing substantial long-term returns for its stock.