AppLovin Inc. shares drifted lower in the extended session Wednesday after the company reported revenue above Wall Street estimates but held to its previous outlook as it said Apple Inc.’s crackdown on ad data had a “muted” effect on its business. AppLovin
shares declined 1% after hours, following a 2.3% gain in the regular session to close at $58.50.
The Palo Alto, Calif.-based company offers marketing, monetization and analytics software that helps app developers grow their businesses, and also owns a portfolio of more than 200 free-to-play mobile games. The company reported second-quarter net income of $13.3 million, or 4 cents a share, versus a loss of $21.4 million, or 10 cents a share, in the year-ago period. Revenue rose to $668.8 million from $299.3 million in the year-ago quarter, while analysts surveyed by FactSet had forecast earnings of 4 cents a share on revenue of $641 million. Business app sales rose 70% to $162 million and consumer app sales soared 122% to $361 million, the company said. “Our strong execution and growth this quarter, in spite of anticipated industry headwinds around data privacy, speaks to the tremendous opportunity ahead of us and to the distinct advantages leveraging our ML-based software and proprietary first-party insights to help clients grow,” said Adam Foroughi, AppLovin chief executive and co-founder, in a statement. Read: AppLovin IPO: 5 things to know about the software company valued at nearly $30 billion AppLovin held to its outlook for the year, having forecast fiscal 2021 revenue between $2.65 billion and $2.7 billion in its first quarterly report as a public company back in May. For the year, analysts expect revenue of $2.68 billion. For more: Why Facebook is considering an antitrust lawsuit against Apple Unity Software Inc.
a company that’s managed to grow out its ad business in spite of Apple’s
recent crackdown on online ads, reported strong results and hiked its outlook for the year late Tuesday. “Regarding the recent changes in our industry concerning data privacy and IDFA, overall, the impact on our business remains muted,” AppLovin said in a statement. In its previous earnings report, AppLovin said it had not seen “a material impact” on its business from Apple’s revised ad policy and still expected to achieve its outlook. Earlier in the year, Apple opted out of using Identifier for Advertisers, or IDFA, in its privacy update, a move that worried many companies, such as Facebook Inc.
that rely upon ad revenue. IDFA is like a cookie that’s attached to a specific device like a smartphone, rather than to a browser, to collect user information to better target ads.