AppLovin shares dipped Thursday but hold large gains from last week's earnings rally. Strong results, guidance, analyst backing and macro news fueled the stock's recent surge.
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Zeta (NYSE:ZETA) and the rest of the advertising software stocks fared in Q1.
Growth boosts valuation multiples, but it doesn’t always last forever.
Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
Wrapping up Q1 earnings, we look at the numbers and key takeaways for the sales and marketing software stocks, including Sprout Social (NASDAQ:SPT) and its peers.
Shares of mobile app advertising platform AppLovin (NASDAQ: APP)
jumped 13.4% in the afternoon session after the company reported strong first quarter 2025 results which included a beat on both revenue and EBITDA, and also featured next quarter's optimistic EBITDA guidance that exceeded analysts' expectations. Revenue grew 40% from a year ago, driven by the surge in advertising, which more than offset a 14% decline in its legacy apps business, a segment the company is now exiting through a pending sale. Overall, we think this was a solid quarter with some key areas of upside.
Applovin shares are trading higher Thursday after the company reported better-than-expected first-quarter earnings on Wednesday after the market closed.
Mobile app advertising platform AppLovin (NASDAQ: APP) reported revenue ahead of Wall Street’s expectations in Q1 CY2025, with sales up 40.3% year on year to $1.48 billion. On the other hand, next quarter’s revenue guidance of $1.21 billion was less impressive, coming in 14.3% below analysts’ estimates. Its GAAP profit of $1.67 per share was 16.2% above analysts’ consensus estimates.
