AppLovin Pops on Earnings Triumph

AppLovin (NASDAQ:APP) shares soared Thursday after the company reported earnings and revenue that beat expectations and announced the sale of its mobile gaming business.Earnings came in at $1.67 per share vs $1.45 per share expected, on Revenue: $1.48 billion vs $1.38 billion expected. The company logged $1.16 billion in first-quarter advertising sales, up from $678 million a year ago.AppLovin also agreed on Wednesday to sell its mobile gaming business to Tripledot Studios in a deal worth $400 million in cash considerations.The advertising tech company will also obtain a roughly 20% ownership stake in Tripledot Studios, which makes mobile games like Sudoko Friends, Puzzletime and Solitaire Classic. The deal is expected to close in the second quarter of 2025.AppLovin said it expects second-quarter sales in the range of $1.2 billion to $1.22 billion, trailing analyst expectations of $1.38 billion.The company reported first-quarter net income of $576 million, or $1.67 per share, up from $234 million, or 67 cents per share, in the same quarter of 2024.AppLovin’s total costs and expenses for the first quarter came in at $820.55 million, representing a 14% increase from the previous year during the same quarter.Shares in APP hiked $51.56, or 17%, first thing Thursday to $355.02.