AppLovin shares soared almost 30% in after-hours trading on Wednesday following the release of better-than-expected earnings and revenue figures. The company also provided optimistic guidance for the coming quarter. AppLovin's strong performance was driven by its artificial intelligence-powered advertising system, which has fueled significant revenue growth. The company is also selling its apps business for an estimated $900 million.
AppLovin shares rallied in extended trading after the company reported better-than-expected earnings and guidance.
AppLovin's business has been split between advertising and apps, which is primarily made up of game studios that the company has acquired over the years. With the historic growth in its advertising unit, the apps business has become much less important, and now the company says it is selling it off. Later in the call, the company said it has signed a term sheet for the sale for a "total estimated consideration" of $900 million. That includes $500 million in cash, "with the remainder representing a minority equity stake in the combined private company."
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