AppLovin Shares Jump 20% Despite Q1 Earnings Miss as EBITDA Guidance Raised

AppLovin (NASDAQ: APP) shares rose around 20% after-hours following the company’s reported Q1 results and guidance.

While both EPS of ($0.31) and revenue of $625 million came in worse than the consensus estimates of ($0.08) and $823.37 million, respectively, and 2022 revenue guidance was lowered, the EBITDA guidance was raised on the continuing growth of the Software Platform business and expected operating improvements in Apps.

For the full 2022-year, the company expects revenue in the range of $3.14-3.44 billion, compared to the consensus estimate of $3.69 billion.

Software Platform revenue guidance was lowered to $1.14-$1.29 billion from the prior $1.35-$1.50 billion, and Apps revenue estimates were lowered to $2.00-$2.15 billion from the prior $2.20-$2.35 billion.

The adjusted EBITDA (Midpoint) estimate was raised to $1.20 billion from the prior $1 billion.

Shares of AppLovin were down 71% year-to-date going into the results.

By Davit Kirakosyan

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