Why AppLovin Stock Soared Higher Today
Shares of mobile-app developer and software company AppLovin (NASDAQ: APP) soared higher on Thursday after the company released financial results for the first quarter of 2023. As of 10 a.m. ET, AppLovin stock was up 24%.
In Q1, AppLovin generated revenue of $715 million, up 14% year over year and well ahead of management's guidance of $685 million to $705 million. The star of the show was AppLovin's software segment business, which saw 199% revenue growth compared to a 29% drop for its apps segment.
However, there's an asterisk with AppLovin's software revenue growth. When the company acquired MoPub in early 2022, it was forced to pay out a one-time bonus to publishers that reduced revenue from an accounting perspective. Adjusting for this expense puts revenue much higher for the first quarter of 2022. Therefore, software revenue was really only up 8% year over year.
Source Fool.com
