TLDR:
- AppLovin reported Q1 earnings of $1.67 per share, beating estimates of $1.44-$1.45
- Revenue reached $1.48 billion, up 40% year-over-year and above expectations
- Ad revenue grew 71% from a year ago with 81% adjusted EBITDA margin
- Stock jumped 17% in late trading following the strong results
- Company plans to close the sale of its apps business in the current quarter
AppLovin Corporation (APP) stock jumped 17% in late Wednesday trading after the mobile ad technology company reported first-quarter results that exceeded Wall Street’s expectations. The company posted earnings per share of $1.67, well above analyst estimates of $1.44 and significantly higher than the 67 cents reported in the same period last year.

Revenue for the quarter hit $1.48 billion, beating the consensus estimate of $1.38 billion and representing a 40% increase compared to the first quarter of 2024.
The company’s advertising business showed particularly strong performance. Ad revenue grew by 71% year-over-year, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 92%.
This strong growth pushed AppLovin’s adjusted EBITDA margin to 81%, up from 73% in 2024.
Growth Despite Short Seller Reports
The impressive quarterly results come despite recent challenges. AppLovin’s stock had fallen approximately 20% since February when several short seller reports were published.
These reports made various accusations about the company’s ad practices. Short sellers claimed AppLovin might be violating the terms of app stores operated by Apple (AAPL) and Alphabet’s Google (GOOGL).
AppLovin firmly denied these allegations. The company stated that “claims of financial and accounting improprieties are factually incorrect and have no basis whatsoever.”
Neither Apple nor Google has responded to these accusations.
Despite the controversy, Wall Street remains largely positive on AppLovin. Over three-quarters of analysts maintain a Buy or equivalent rating on the stock, according to FactSet.
Only two out of 31 analysts have issued Sell ratings.
Strong Outlook for Q2
Looking ahead, AppLovin provided strong guidance for its second-quarter ad business that exceeded analyst expectations.
The company forecasts Q2 revenue of approximately $1.2 billion at the midpoint of its outlook. This would represent a 69% increase compared to the same period last year.
AppLovin also expects adjusted EBITDA to rise by 86% in the second quarter.
The company is in the process of selling its apps business. Management confirmed this transaction is expected to close during the current quarter.
AppLovin CEO Adam Foroughi addressed concerns about potential tariff impacts during the earnings call. He clarified the company’s exposure to Chinese e-commerce businesses that might be affected by tariff exemption changes.
“Some assume we rely heavily on large Chinese e-commerce businesses which are impacted by the de minimus tariff exemption changes,” Foroughi explained. “In reality we focus on mid market web advertisers and aren’t yet working with the largest players.”
This represents the fourth consecutive quarter that AppLovin has surpassed consensus earnings estimates.
While AppLovin shares have underperformed the broader market year-to-date, with a decline of about 5.9% compared to the S&P 500’s 4.7% drop, the strong quarterly results may help reverse this trend.
The current consensus price target among analysts is $472, representing a potential upside of 58% from current levels. This target has been lowered from $542 before the short seller reports emerged.
AppLovin operates an ad exchange platform for app developers, e-commerce companies, and streaming video services. The company’s latest quarterly results demonstrate continued strong growth in its core advertising technology business.
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