AppLovin (APP) Q1 Earnings and Revenues Top Estimates

Financial Performance - AppLovin reported quarterly earnings of $1.67 per share, exceeding the Zacks Consensus Estimate of $1.45 per share, and up from $0.67 per share a year ago, representing an earnings surprise of 15.17% [1] - The company posted revenues of $1.48 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.70%, compared to $1.06 billion in the same quarter last year [2] - Over the last four quarters, AppLovin has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance and Outlook - AppLovin shares have declined approximately 5.9% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The company's current consensus EPS estimate for the upcoming quarter is $1.54 on revenues of $1.38 billion, and for the current fiscal year, it is $6.80 on revenues of $5.59 billion [7] Industry Context - The Technology Services industry, to which AppLovin belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact AppLovin's stock performance [5][6]