AppLovin Surges After Crushing Q3 Estimates Amid SEC Scrutiny
AppLovin shares rallied 6.4% in extended trading after the mobile advertising platform delivered third-quarter results that far exceeded Wall Street projections. Revenue soared 68% year-over-year to $1.41 billion, trouncing the $1.34 billion consensus estimate, while earnings per share jumped 96% to $2.45.
The company's AI-powered Axon Advertising platform drove the outperformance, generating $836 million in net income and surpassing $1 billion in free cash flow. Management issued bullish fourth-quarter guidance of $1.57-$1.60 billion in revenue, above analyst expectations of $1.55 billion.
Despite an ongoing SEC investigation into its data-collection practices, AppLovin demonstrated remarkable momentum by authorizing an additional $3.2 billion in share repurchases. The MOVE brings total buyback capacity to $3.3 billion, signaling strong confidence in continued growth.
