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Earnings Results: AppLovin stock drops nearly 20% after 2022 outlook disappoints


AppLovin Inc. shares dropped in the extended session Wednesday after the app-monetization company’s forecast revenue range for the year fell mostly below Wall Street expectations.


shares dropped 17.6% after hours, following a 9% drop to close the regular session at $68.71. At Wednesday’s close, shares were already 40% off their record closing high of $114.85 on Nov. 11, following the company’s April 15 initial public offering, when shares closed nearly 20% below their IPO pricing of $80.

The company said it expects full-year revenue between $3.55 billion and $3.85 billion, with $2.2 billion to $2.35 billion of that coming from apps, and $1.35 billion to $1.5 billion coming from software platform revenue.

Analysts surveyed by FactSet had forecast revenue of $3.83 billion for 2022, with a different breakout. FactSet analysts forecast $2.02 billion in business revenue and $1.85 billion in consumer revenue, with $250 million from MoPub.

AppLovin reported fourth-quarter net income of $31.1 million, or 8 cents a share, versus a loss of $18.8 million, or 9 cents a share, in the year-ago period. The company did not list adjusted earnings-per-share figures.

Revenue rose to $793.5 million from $509.8 million in the year-ago quarter.

Analysts surveyed by FactSet had forecast earnings of 11 cents a share on revenue of $780.4 million.

Read: AppLovin IPO: 5 things to know about the software company valued at nearly $30 billion

Back in November, AppLovin shares soared 20% the day after the company reported stronger-than-expected revenue and announced its $1.05 billion acquisition of app-monetization company MoPub, which closed on Jan. 3, following its $1 billion acquisition of German mobile-app measurement and marketing company Adjust.

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.

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