AppLovin Corp (NASDAQ:APP) reported its first-quarter results for 2023 yesterday, which, on balance, were positive, with more good news to come this year. While the company missed on earnings, it beat revenue expectations. Remarkably, more than half of its revenue is now ad and ad tech-related. And that share is likely to grow even more with Applovin’s acquisition of Wurl, a CTV platform, and the next version of its advertising technology platform, Axon 2.
The company posted Q1 revenues of $715.4 million, exceeding consensus estimates of $693.51 million. However, it reported a loss of 1 cent per share, falling short of the expected earnings of 7 cents per share. Despite the mixed results, AppLovin generated $289 million of cash from operating activities and $283 million of free cash flow during the quarter.
Applovin has a good year ahead of it. The good news outweighed the missed earnings, with the company’s shares trading more than 21% higher today at $21.70, up from $17.81. But keep in mind that looking at the twelve trailing months, that price is still more than 19% lower than a year ago when it traded at $27.28.
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