AppLovin reported Q1 revenue of $1.84 billion and raised guidance, driving a 37.4% stock rally in May.
AppLovin (NASDAQ: APP) shares climbed 37.4% in May after the company posted stronger-than-expected first-quarter results. Revenue rose 58.6% year-over-year to $1.84 billion, while earnings per share increased 69.5% to $3.56, both exceeding analyst estimates.
The company also issued upbeat second-quarter guidance, projecting revenue of $1.915 billion to $1.945 billion and adjusted EBITDA of $1.615 billion to $1.645 billion. Analysts highlighted AppLovin’s dominance in mobile gaming ads and early success in expanding into web and connected TV advertising.
Sentiment further improved after a prominent investor pitched AppLovin at the Sohn Investment Conference, forecasting a potential $1 trillion valuation within seven years. The stock’s market cap currently stands near $200 billion.