AppLovin shares surge 30% on strong Q3 earnings and AI growth
AppLovin stock rose nearly 30%, reversing a 60% year-to-date decline, after reporting Q3 revenue up 55% to nearly $2.2 billion. The growth was driven by AI-driven targeting that increased revenue per app installation.
AppLovin stock rose nearly 30% on Thursday, reversing a 60% year-to-date decline that had made it the worst performer in the S&P 500. The surge followed Q3 results showing revenue up 55% to nearly $2.2 billion, growing more than twice as fast as major advertising platforms. Earnings per share and Q4 guidance exceeded expectations. Growth was driven by a 55% increase in revenue per app installation, while the number of installations rose only 2%. This indicates customers are paying significantly more for each new user due to AI-driven targeting. The company reported an adjusted EBITDA margin of 84 cents per dollar of revenue and does not require its own data centers for this operation.