AppLovin Corporation (NASDAQ: APP) saw its stock price surge 13.19% in after-hours trading on Wednesday following the release of its impressive first-quarter 2025 financial results. The digital advertising technology company significantly outperformed analyst expectations, demonstrating strong growth and profitability.
AppLovin reported earnings per share (EPS) of $1.67, surpassing the consensus estimate of $1.45 and marking a substantial 149.25% increase from $0.67 in the same period last year. The company's revenue for the quarter reached $1.48 billion, beating the analyst forecast of $1.38 billion and representing a 40.26% year-over-year growth from $1.06 billion.
In addition to the strong financial performance, AppLovin announced the sale of its mobile gaming business for $400 million and approximately a 20% ownership stake in Tripledot's common equity. This strategic move allows the company to focus on its core advertising technology business, which has shown higher growth rates and profit margins. For the second quarter, AppLovin provided guidance for total advertising revenue between $1.195 billion and $1.215 billion, indicating continued momentum in its operations.
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