AppLovin Corp (NASDAQ:APP) and Roblox Corp (NYSE:RBLX) both announced first-quarter results today. The former topped earnings and revenue estimates, while the latter beat top-line expectations, but missed on the bottom line. Below, let's dive into how these two stocks are responding.APP is up 14.8% at $84.98 at last check, after drawing six price-target hikes, including one from Jefferies to $105 from $93. The shares earlier scored a two-year high of $88.50, after bouncing off support from the $66 in late A ...

The launch of its new AI software last year has been an overwhelming success.Shares of app discovery and monetization company AppLovin (APP 18.28%) soared high on Thursday after the company reported financial results for the first quarter of 2024. As of 10:45 a.m. ET, AppLovin stock was up 18% and hitting fresh 52-week highs.Another great quarter driven by software growthThe star of the show for AppLovin right now is its AXON software, powered by artificial intelligence (AI). The company's software helps co ...

Key TakeawaysAppLovin shares soared in premarket trading Thursday morning after the app monetization company topped analysts' first quarter expectations and issued a better-than-expected outlook. The company said it saw an improvement in the app advertising market during the quarter and continues to add innovations to its software.Monitor the $88 level, an area on the chart where AppLovin shares may run into resistance from a key horizontal trendline connecting several technically important price points ext ...

AppLovin (APP) reported $1.06 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 47.9%. EPS of $0.67 for the same period compares to -$0.01 a year ago.The reported revenue represents a surprise of +9.03% over the Zacks Consensus Estimate of $970.45 million. With the consensus EPS estimate being $0.57, the EPS surprise was +17.54%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

AppLovin (APP) came out with quarterly earnings of $0.67 per share, beating the Zacks Consensus Estimate of $0.57 per share. This compares to loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 17.54%. A quarter ago, it was expected that this mobile app technology company would post earnings of $0.35 per share when it actually produced earnings of $0.49, delivering a surprise of 40%.Over the last four quarters, the c ...

AppLovin Corporation (NASDAQ:APP) Q1 2024 Earnings Conference Call May 8, 2024 5:00 PM ET Company Participants David Hsiao - Head of IR Adam Foroughi - Chairman, Co-Founder & CEO Matt Stumpf - CFO Conference Call Participants Clark Lampen - BTIG Ralph Schackart - William Blair Jason Bazinet - Citi Omar Dessouky - BofA Tim Nolan - Macquarie Eric Sheridan - Goldman Sachs Ed Alter - Jefferies Vasily Karasyov - Cannonball Martin Yang - OpCo David Hsiao Welcome everyone to the AppLovin Earnings Call for the Firs ...

Mobile app marketing platform AppLovin (APP) late Wednesday smashed Wall Street's targets for the first quarter and guided higher for the current period. AppLovin stock jumped in extended trading.X The Palo Alto, Calif.-based company earned 67 cents a share on sales of $1.06 billion in the March-ended quarter. Analysts polled by FactSet had expected earnings of 57 cents a share on sales of $974 million. In the year-earlier period, AppLovin lost a penny a share on sales of $715 million.For the current quarte ...

Revenue Growth and Financial Performance - Revenue increased 48% year-over-year to $1.06 billion for the three months ended March 31, 2024, compared to $715.4 million in the same period in 2023[82] - Revenue for Q1 2024 was $1,058.1 million, a 48% increase from $715.4 million in Q1 2023[112] - Total Revenue increased by $342.7 million, or 48%, reaching $1,058.1 million, driven by growth in Software Platform Revenue and a 5% increase in Apps Revenue[119][120] - Net income for Q1 2024 was $236.2 million, compared to a net loss of $4.5 million in Q1 2023[82] - Net income for Q1 2024 was $236.2 million, compared to a net loss of $4.5 million in Q1 2023[112] - Income from operations for Q1 2024 was $339.6 million, a significant increase from $61.0 million in Q1 2023[112] - Adjusted EBITDA for Q1 2024 was $548.8 million, up from $273.7 million in Q1 2023, with an Adjusted EBITDA margin of 51.9%[82][94] - Free Cash Flow for Q1 2024 was $387.6 million, compared to $283.1 million in Q1 2023[82][96] - Software Platform Adjusted EBITDA increased by $273.3 million, or 125%, driven by higher Software Platform Revenue, partially offset by increased network infrastructure expenses[130] - Apps Adjusted EBITDA increased by $1.7 million, or 3%, due to higher Apps Revenue, partially offset by increased user acquisition costs and third-party payment processing fees[131] Software Platform and Apps Revenue - Software Platform Revenue accounted for 64% of total revenue in Q1 2024, while Apps Revenue represented 36%[83] - Software Platform Revenue increased by $323.6 million, or 91%, primarily due to improved AppDiscovery performance with a 5% increase in net revenue per installation and an 87% increase in installation volume[120] - In-app purchase (IAP) revenue represented 68% of total Apps Revenue in Q1 2024, while in-app advertising (IAA) revenue accounted for 32%[87] - In-App Purchases (IAP) Revenue increased by $7.9 million, or 3%, due to a 4% increase in purchase volume, partially offset by a 1% decrease in price per purchase[120] - In-App Advertising (IAA) Revenue increased by $11.2 million, or 10%, driven by a 113% increase in advertising impressions, partially offset by a 48% decrease in price per impression[120] User Metrics and Engagement - Average Monthly Active Payers (MAPs) remained stable at 1.8 million in Q1 2024, with an Average Revenue Per Monthly Active Payer (ARPMAP) of $48, up from $46 in Q1 2023[87][90] Cost and Expense Management - Cost of revenue for Q1 2024 was $294.1 million, representing 28% of revenue, down from 37% in Q1 2023[112][117] - Cost of Revenue increased by $32.2 million, or 12%, primarily due to a $35.5 million increase in network infrastructure expenses, offset by an $8.6 million decrease in amortization of intangible assets[122] - Research and development expenses for Q1 2024 were $155.3 million, representing 15% of revenue, down from 20% in Q1 2023[112][117] - Sales and marketing expenses for Q1 2024 were $226.7 million, representing 21% of revenue, down from 28% in Q1 2023[112][117] - General and administrative expenses for Q1 2024 were $42.4 million, representing 4% of revenue, down from 6% in Q1 2023[112][117] Investments and Acquisitions - $4.1 billion invested in 33 strategic acquisitions and partnerships from 2018 through March 31, 2024, including MAX, Adjust, MoPub, and Wurl[102] - Significant investments in the Software Platform, including AI-powered advertising engine AXON, AppDiscovery, Adjust, and MAX, to enhance effectiveness and enter new verticals outside of gaming[98][99] - The company invested $10.0 million in the first tranche of Series C preferred stock financing of Humans, Inc. in February 2024[139] - The company committed to invest an additional $40.0 million in the second tranche of Series C preferred stock financing of Humans, Inc. as of March 31, 2024[139] Shareholder Returns and Financial Position - The company repurchased shares of its Class A common stock, reflecting its strong financial position and commitment to shareholder returns[82] - The company repurchased 13,466,397 shares of Class A common stock for $752.2 million during the quarter[137] - Net cash provided by operating activities was $392.8 million, primarily consisting of $236.2 million of net income adjusted for non-cash items, including $112.7 million in amortization and depreciation[134] - Net cash used in financing activities was $424.6 million, primarily due to $752.2 million in stock repurchases, partially offset by $1,072.3 million in debt issuance proceeds[136] Debt and Credit Facilities - The company amended its Credit Agreement in March 2024, reducing the interest rate margin for SOFR loans from 3.1% to 2.5% and for base rate loans from 2.0% to 1.5%[138] - The company increased the aggregate principal amount of the 2030 Term Loan to $2.09 billion and reduced the 2028 Term Loan to $1.46 billion[138] - The company drew down an additional $418.7 million from the revolving credit facility in March 2024 to fund share repurchases[138] - The company repaid the entire outstanding amount under the revolving credit facility of $603.7 million by March 31, 2024[138] - KKR Corporate Lending (CA) LLC provided revolving credit commitments of $15.0 million under the company's revolving credit facility[138] International Revenue - 41% of revenue from Software Platform and IAA Revenue clients was generated from outside the United States in Q1 2024[101] Portfolio and Tools - The company's portfolio includes over 200 free-to-play mobile games across five genres, managed by ten studios[82] - Key software tools like AppDiscovery, MAX, Adjust, and Wurl drive revenue growth through user acquisition, ad optimization, and analytics[86] Accounting and Risk Management - The company's condensed consolidated financial statements are prepared in accordance with GAAP, requiring estimates and assumptions that affect reported amounts[140] - There were no material changes to the company's critical accounting policies and estimates during the three months ended March 31, 2024[141] - There were no material changes in market risk from the information presented in the Annual Report on Form 10-K for the year ended December 31, 2023[144]

| --- | --- | |-------|-------| | | | | | | To Our AppLovin Shareholders: The first quarter marked a strong start to 2024 with outstanding business performance driven by the continued improvement of our AXON technology. We were encouraged to see improvement in the app advertising market with another quarter of year-over-year market growth and a continued shift to real-time bidding. By continuing to innovate and improve our AXON technology, we remain committed to driving growth not just for our company, but ...

Investors are always looking for stocks that are poised to beat at earnings season and AppLovin Corporation (APP) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because AppLovin is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good ...