AppLovin (APP, Financial) just smashed expectations with a Q3 performance that's hard to ignore, driving up the share by as much as 50% today. Revenue shot up 39% year-over-year to hit $1.2 billion, beating forecasts by a solid $70 million. The earnings per share? A strong $1.25, blowing past predictions by $0.32. Net income skyrocketed 300% to $434 million, setting up a powerful 36% net margin. The big story here? Their Software Platform revenue surged 66% to $835 million, with adjusted EBITDA in that segment leaping to $653 million—a bold 78% margin—driven by smarter, faster tech in their AXON engine that's got advertisers spending bigger and seeing better returns.
At the heart of AppLovin's growth machine is AXON, their self-learning engine that's supercharging ad spends for partners and pushing them toward bigger ROAS targets. This quarter's results weren't just strong—they were a full-scale showcase of AppLovin's market grip, pumping up adjusted EBITDA by 72% to $722 million, landing at a hefty 60% margin. Free cash flow hit $545 million, marking a jaw-dropping 182% jump from last year. The company's playbook is clear: innovation-first, operational discipline, and a relentless drive to leverage their tech edge for maximum impact.
Looking forward, AppLovin isn't easing off the gas. They're projecting Q4 revenue to land between $1.24 billion and $1.26 billion with a continued 60% adjusted EBITDA margin. And with the board authorizing an additional $2 billion for share buybacks—bringing the total available to $2.3 billion—they're sending a message: they're all-in on long-term growth and shareholder returns. AppLovin's plan is rock-solid—driving organic growth, doubling down on tech investment, and securing a financial foundation that's set to keep them flexible and ready for whatever's next.
