Applovin Corp (NASDAQ:APP) stock rose 14.49% (As on May 8, 11:22:19 AM UTC-4, Source: Google Finance) after the company reported earnings and revenue that beat expectations and announced the sale of its mobile gaming business. AppLovin also agreed to sell its mobile gaming business to Tripledot Studios in a deal worth $400 million in cash considerations. The advertising tech company will also obtain a roughly 20% ownership stake in Tripledot Studios, which makes mobile games like Sudoko Friends, Puzzletime and Solitaire Classic. The deal is expected to close in the second quarter of 2025. The company has reported first-quarter net income of $576 million, up from $234 million, in the same quarter of 2024. AppLovin’s total costs and expenses for the first quarter came in at $820.55 million, representing a 14% increase from the previous year during the same quarter. The ad-tech firm said in February that it had signed a term sheet to sell its apps business for “total estimated consideration” of $900 million, which included $500 million in cash. AppLovin’s TikTok plans would involve overseeing the app’s U.S. business and its operations in other parts of the world, but not China. Net cash from operating activities was $832 million and Free Cash Flow was $826 million for the first quarter 2025.
Moreover, the sales of the company’s apps-related business for the quarter came in at $325 million, which was a 14% decline from the prior year. The company logged $1.16 billion in first-quarter advertising sales, up from $678 million a year ago. Separately, AppLovin published a blog post, describing a proposed deal with ByteDance’s TikTok. The company said it would not buy the TikTok U.S. operations but rather merge with the social media company, allowing it to cover “all assets outside China.”
APP in the first quarter of FY25 has reported the adjusted earnings per share of $1.67, beating the analysts’ estimates for the adjusted earnings per share of $1.45, according to LSEG consensus estimates. The company had reported the adjusted revenue growth of 35.9 percent to $1.48 billion in the first quarter of FY25, beating the analysts’ estimates for revenue of $1.38 billion.
Additionally, the company in the quarter repurchased and withheld 3.4 million shares of our Class A common stock, for a total cost of $1.2 billion. At the end of 1Q 2025, the company had 338 million shares of our Class A and Class B common stock outstanding.
AppLovin said it expects second-quarter sales in the range of $1.2 billion to $1.22 billion, trailing analyst expectations of $1.38 billion.