AppLovin Corp (APP) has announced impressive financial outcomes for its third quarter, surpassing market predictions. This advertising technology firm revealed a substantial increase in revenue, alongside a significant share buyback initiative, signaling robust financial health and a positive trajectory.
For the third quarter, AppLovin recorded total revenue of $1.41 billion, a remarkable 68% rise year-over-year, outperforming analyst forecasts of $1.34 billion. The company's earnings per share also exceeded expectations, coming in at $2.45 against an anticipated $2.41. Furthermore, both cash flow from operations and free cash flow reached an impressive $1.05 billion during this period, reinforcing the company's strong operational efficiency. The firm actively engaged in a share repurchase program, buying back $571 million of its common stock, and concluded the quarter with approximately $1.67 billion in cash reserves.
Looking ahead, AppLovin's board has substantially increased its authorized share buyback program by an additional $3.2 billion, raising the total authorization to $3.3 billion. The company anticipates a strong performance in the fourth quarter, with projected revenues ranging from $1.57 billion to $1.60 billion, surpassing analyst estimates of $1.55 billion. Adjusted EBITDA for the fourth quarter is expected to be between $1.29 billion and $1.32 billion, indicating continued growth. Following these positive announcements, AppLovin's stock saw a notable increase of 4.69% in after-hours trading, reaching $646 per share.
This performance underscores AppLovin's strategic prowess and effective management, driving both financial success and shareholder value. The company's consistent ability to exceed expectations and its proactive approach to capital management paint a picture of enduring strength and promising future prospects within the dynamic advertising technology landscape.