AppLovin Inc. shares gained back steep Wednesday session losses after hours as the company reported revenue that topped the Wall Street consensus and announced another billion-dollar acquisition.
AppLovin
APP,
shares rallied 9% after hours, following a 7.6% drop to close the regular session at $95.73.
AppLovin reported third-quarter net income of $177,000, or break-even a share, versus a loss of $89.7 million, or 42 cents a share, in the year-ago period. The company did not list adjusted earnings per share figures.
Revenue rose to $727 million from $381.7 million in the year-ago quarter.
Analysts surveyed by FactSet had forecast earnings of 11 cents a share on revenue of $697.8 million.
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.
Read: AppLovin IPO: 5 things to know about the software company valued at nearly $30 billion
The company also said it agreed to acquire app-monetization company MoPub for $1.05 billion in cash with the transaction expected to close in 2022. AppLovin recently closed its $1 billion acquisition of German mobile-app measurement and marketing company Adjust, which gave the company a 250-person salesforce with access to 3,000 clients.
“We believe our recent agreement to acquire MoPub will further augment our competitive position in our large and rapidly growing market,” said Adam Foroughi, AppLovin’s chief executive and co-founder, in a statement.
AppLovin said it expects MoPub to contribute about $240 million to $260 million in software revenue per year.
This post was originally published on Market Watch
