The market is lovin’ AppLovin.
The mobile adtech company announced record revenue today in its Q3 earnings report, growing 55% year-over-year to $2.18 billion, well above its guidance of roughly $2.06 to $2.09 billion.
This was also an improvement from Q2, when growth was strong (+53% YoY), but revenue came in slightly below expectations ($1.92 billion vs. $1.94 billion).
Following the results, AppLovin shares are up around 22% in after-hours trading.
Why This Matters
A big part of AppLovin’s success has been Axon, its AI-powered advertising technology, which is driving performance for developers and advertisers alike.
On the company’s Q2 earnings call a few months ago, CEO Adam Foroughi teased the rollout of new AI models for Axon, with early performance gains starting to show. That rollout is now further along, with Foroughi citing “significant model improvements that are already live and performing” in Q3.
Foroughi also highlighted that AppLovin’s gaming business grew nearly 50% year-over-year, reaccelerating alongside the rollout of the new models.
The results are also a welcome boost for the beleaguered public adtech sector, which has faced slowing growth and consolidation.
Experts React
These were huge numbers, and the market is responding:
Our Take
The company is also making a push into CTV. And that effort is chugging along, according to Foroughi.
Here’s what he said on the call:
“Yeah, we’re making more progress there. I mean, if people watch anything on connected television, you’ll start seeing some of our ads. We’ve got pilot campaigns going now. The product is actually looking very promising.”
Even after a record Q3, there’s clearly still room for AppLovin to grow.
