AppLovin Corp (NASDAQ:APP) shares plunged more than 24% in after-hours trading on Wednesday after the mobile advertising and marketing platform reported second quarter revenue below Wall Street expectations, despite posting strong year-over-year growth and earnings in line with estimates.
AppLovin reported revenue of $1.924 billion for the quarter ended June 30, up 53% from $1.259 billion a year earlier but below the $1.94 billion consensus estimate.
Diluted earnings per share came in at $3.76, matching analyst expectations.
Net income rose 55% year over year to $1.267 billion, while net income from continuing operations increased 64% to $1.267 billion. Adjusted EBITDA climbed 58% to $1.614 billion, with the company reporting an adjusted EBITDA margin of 84%.
AppLovin generated $869 million in net cash from operating activities during the quarter and $863.3 million in free cash flow.
The company also continued its share repurchase program, buying back and withholding 1.1 million Class A shares for a total cost of $551.3 million during the quarter. AppLovin ended the period with 335 million Class A and Class B shares outstanding.
For the third quarter, AppLovin guided for revenue of between $2.055 billion and $2.085 billion, implying continued year-over-year growth. The company expects adjusted EBITDA of $1.71 billion to $1.74 billion, with an adjusted EBITDA margin of 83%.