AppLovin Corp. (NASDAQ:APP) shares surged nearly 16% in the pre-market session today after the software and AI solutions provider delivered a strong third-quarter performance and announced changes at its top rung.
AppLovin’s revenue in the third quarter jumped by 21.2% year-over-year to $864 million. The figure came in better than expectations by nearly $67 million. Additionally, EPS of $0.30 outpaced estimates by $0.03.
During the quarter, APP’s Software Platform revenue soared by 65% over the prior year to $504 million. Its Apps revenue, however, declined by 11% to $360 million. Still, the gains in Software Platform drove the company’s adjusted EBITDA 63% higher over the prior year period to $419 million, and free cash flow generation remained healthy at $194 million.
Along with the third-quarter results, the company announced the exit of Herald Chen as its President and CFO. Chen will continue to remain on AppLovin’s Board and act as an Advisor to its CEO.
Consequently, AppLovin has appointed Matt Stumpf, its current Vice President of Finance and FP&A, as its CFO, and Dmitriy Dorosh, its Vice President Controller, as its Principal Accounting Officer. The new appointments are expected to be effective January 1, 2024.
Is APP a Good Stock to Buy?
Overall, the Street has a Strong Buy consensus rating on AppLovin. The average APP price target of $47.43 implies a modest 18.2% potential upside. That’s on top of a massive 164% surge in AppLovin shares over the past year.
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