Shares Applovin Pop on Beating Beat, Sell Mobile Games

Applovin The shares increased to 15% in extended trading after the company reported the profit and profit that won expectations and announced the sale of their mobile game business.

Here’s how the company did compared to the LSEG consensus estimate:

• Income: 1.67 dollar per share against $ 1.45 per share
• Income: 1,48 billion dollars vs. $ 1.38 billion expected

Applovin also agreed on Wednesday to sell his mobile game business for Tripledot Studios in an agreement worth $ 400 million in cash.

Company of advertising technology will also receive approximately 20% of the ownership of Tripledot Studios, making mobile games such as Sudoko Friends, Pyzzletime and Solitaire Classic. The transaction is expected to close in the second quarter of 2025.

Applovin said he expects sales in the second quarter of $ 1.2 to $ 1.22 billion, which causes $ 1.38 billion analysts.

The company reported net income in the first quarter of $ 576 million, or $ 1.67 per share, which is compared to $ 234 million, or $ 67 per share, in the same quarter of 2024.

The total cost and expenses of Applovin for the first quarter amounted to $ 820.5 million, which is 14% compared to the previous year for the same quarter.

Special firm – Note In February, he signed a term letter to sell his business for a “total $ 900 million” estimated, including $ 500 million.

Applovin’s business has been divided between advertising and applications, which first and foremost consists of game studios that the company has acquired over the years. Since historical growth in its advertising department, thanks to rapid progress in Artificial intelligenceThe business application has become much less important.

Sales of business -related businesses amounted to $ 325 million, which decreased by 14% compared to the previous year.

The company has registered $ 1.16 billion on advertising sales in the first quarter, which is compared to $ 678 million a year ago.

Applovin’s Stocks grew by 700% In 2024 and was the best performer In the sector, thanks to AI BOOM and the growth on the Internet.

But the company’s stock in February decreased by 12% Short sellers published reports Responding to doubt on your Axon Axon software.

Separately Applovin published a blog record on Wednesday, which describes the proposed transaction with Tiktok Bytedance. The company said it would not buy Tiktok US operations, but rather merge with the social media company, which will allow it to cover “all assets outside China”.

“We view this as a true partnership using its strengths to solve security problems, data and content while unlocking great potential,” the company said in Message in the blog.

Applovin CEO Adam Fore Previously told “Exchange” CNBC in April that his proposal related to the ciking was “a much stronger application than others.”

Last month President Donald Trump Extended term The second time the bytens sold Tiktok to the US buyer or be effectively banned in the country.

“If you combine our Tiktok audience algorithm, the expansion on this platform for the dollars spent will pass through the roof,” Figi said at the time.

Foroughi on Wednesday described the Tiktok Applovin proposal as a “distant shot”. But he said the company was “after long shots” that “should not surprise our shareholders at that moment.”

He said Tiktok Applovin plans provide for control over the US business and its activities in other parts of the world but not in China.

“We believe that the greatest priority is to solve national security issues in the US and data in the US, but it is important outside China everywhere,” Forly said. “And to do this, you really, really, must have operational control.”

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