AppLovin shares rose 31.0% after earnings, as revenue and adjusted EBITDA both exceeded the high end of guidance. The upside was driven primarily by mobile gaming, where model improvements helped accelerate growth.
- Revenue was $2.18 billion, up 55% year over year and 14% sequentially—about $100 million above the high end of guidance.
- Net income rose 72% to $1.44 billion; adjusted EBITDA increased 59% to $1.84 billion, at an 84% margin.
- Mobile gaming grew nearly 50% year over year. Consumer advertiser spend rose double digits sequentially and more than 100% year over year.
- Free cash flow was $1.4 billion, or 77% of adjusted EBITDA; management maintained its full-year conversion expectation of roughly 70%–75%.
- The model rollout remains partial, and management cautioned that model gains will not arrive on a predictable quarterly schedule. It also outlined priorities including completing the transition, acquiring new customers, and expanding CTV efforts.
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