AppLovin (NASDAQ:APP) shares shot up more than 25% in the market pre-open Thursday after the mobile tech company reported better-than-expected earnings and revenue for the fiscal Q4.
In addition, the company issued strong guidance for the FQ1 2024.
For the FQ4 2023, the company reported earnings per share (EPS) of $0.49, surpassing the consensus estimates of $0.35. Its revenue for the quarter was $953 million, also beating the consensus projection of $928.38 million.
60% of AppLovin's revenue was generated from its software platform, while mobile games contributed the remaining 40%.
Going forward, the company expects Q1 2024 revenues to be in the range of $955 million to $975 million, well above the consensus projection of $923.8 million.
Jefferies analysts reiterated a Buy rating on APP after the report and raised their target price to $70 from $60.
“APP had another stellar quarter driven again by AXON and its DSP. A better holiday for mobile games led AXON targeting to not only take share, but create share in mobile gaming through stronger ad performance,” analysts wrote.
“A Strong 1Q guide calls for similar drivers again, then we start to lap AXON in 2Q. Given its scaled flywheel, we expect q/q software growth throughout the year, and maintaining ~70% margins.”