AppLovin (NASDAQ:APP) delivered fourth-quarter earnings and revenue that surpassed market forecasts, buoyed by continued momentum in its AI-powered marketing platform. However, the stock fell more than 5% in premarket trading in the U.S.
The shares have faced recent headwinds after Google introduced its Genie 3 update, sparking renewed concerns about competitive pressures in the mobile advertising and gaming technology space.
For the quarter, AppLovin reported earnings of $3.24 per share, comfortably above analyst expectations of $2.96. Revenue climbed to $1.66 billion, exceeding consensus estimates of $1.61 billion.
Looking ahead, the company’s first-quarter guidance was broadly in line with Wall Street projections, according to analysts at BofA Securities. AppLovin forecast revenue between $1.745 billion and $1.775 billion, compared with average estimates of roughly $1.7 billion.
“We’re not overly concerned, as AppLovin’s guide has historically skewed conservative,” BofA analysts wrote in a research note.