Why Applovin Stock Is Accelerating Higher Thursday

Applovin Corp APP shares are ripping higher Thursday after the company reported better-than-expected financial results.

• Q2 Revenue: $750.16 million beat estimates of $724.27 million
• Q2 EPS: 22 cents beat estimates of 7 cents

Software revenue increased 28% year-over-year, while apps revenue fell 25%. Applovin said its strong results were primarily driven by the successful launch of its latest AI-based advertising engine. 

AI improvements helped drive higher installs and higher revenue per install. The company ended the quarter with $876 million in cash and equivalents. 

"As we look forward, we are very excited about the increased efficiency and better return on ad spend our advertisers are seeing, and we believe this will lead to more opportunities and growth for our partners," the company said in a letter to shareholders.

Outlook: Applovin sees third-quarter revenue in the range of $780 million to $800 million versus estimates of $741.41 million. Adjusted EBITDA is expected to be between $340 million and $360 million.

See Also: AppLovin Shares Are Trading Higher By Over 22%; Here Are 20 Stocks Moving Premarket

APP Price Action: Applovin shares were up 28.7% at $37.86 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Applovin.