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AppLovin Corporation's stock jumped over 20% following the release of impressive fourth-quarter earnings, with total revenue climbing 44% to $1.37 billion, according to the company's report. The earnings per share reached $1.73, significantly surpassing Wall Street's expectations of $1.25. The notable increase in advertising revenue, which rose by 73% year-over-year, contributed to an 85% rise in advertising EBITDA.
CEO Adam Foroughi highlighted the ongoing enhancement of the company's AI-driven ad models, which position AppLovin to dominate the $15 billion mobile gaming advertising market. Analysts noted a substantial year-over-year increase in net income, which soared 248% to $599 million. Furthermore, AppLovin's free cash flow for 2024 reached an impressive $2.1 billion.
Responding to strong performance, the company raised its revenue guidance for the first quarter of 2025, aiming for between $1.36 billion and $1.39 billion. Wedbush analyst Michael Pachter raised his price target for the stock to $545, emphasizing AppLovin's dominant growth trajectory.