AppLovin delivered the standout result of the November 4 after hours session. Third quarter revenue rose 55 percent year over year to 2.185 billion dollars, about 100 million dollars above the top of its own guidance and ahead of the roughly 2.07 billion dollars analysts expected. Earnings were 4.30 dollars a share against about 4.03 dollars expected. Net income rose 72 percent to 1.44 billion dollars, a 66 percent net margin, and adjusted EBITDA reached 1.842 billion dollars, 84 percent of revenue. Free cash flow was 1.42 billion dollars. Shares rose about 19 percent after hours.
Management attributed the beat primarily to the core mobile gaming business, where model improvements lifted net revenue per installation 55 percent while installation volume rose 2 percent. Consumer vertical advertising continued to scale.
The board added 3.2 billion dollars to the share repurchase authorization, taking the total available to 3.6 billion dollars. Fourth quarter guidance of 2.365 billion to 2.395 billion dollars of revenue sat above the roughly 2.25 billion dollars the market expected.
The stock had closed the regular session at 271.75 dollars, down sharply for the year, which made the after hours repricing as much a positioning reset as a verdict on the quarter.