Particle.news
Download on the App Store
7 ARTICLES
·
2d ago

AppLovin Reports Earnings Beat, Announces $400M Gaming Division Sale

The ad-tech company exceeded Q1 expectations with $1.48 billion in revenue and finalized a deal to divest its gaming business to Tripledot Studios, boosting its stock by 15%.

Image
Image
Image

Overview

  • AppLovin posted first-quarter earnings of $1.67 per share, surpassing the expected $1.45, alongside $1.48 billion in revenue, exceeding the $1.38 billion forecast.
  • The company agreed to sell its mobile gaming division to Tripledot Studios for $400 million in cash and a 20% ownership stake in Tripledot.
  • The sale aligns with AppLovin's strategic pivot to focus on its AI-driven advertising platform, AXON, which has significantly boosted ad revenue.
  • Shares of AppLovin surged up to 15% in after-hours trading following the earnings report and the gaming division sale announcement.
  • AppLovin projects Q2 revenue between $1.2 billion and $1.22 billion, with the gaming division sale expected to close in the second quarter of 2025.