Why AppLovin Stock Beat the Market on Thursday

An estimates-topping quarter was the factor behind AppLovin (NASDAQ: APP) stock bucking Thursday's trend and landing in the black. The mobile marketing company's shares ticked up by just under 1% on the day, which wasn't an easy achievement, given the generally downbeat sentiment on stocks, as evidenced by the S&P 500's (SNPINDEX: ^GSPC) 1.1% decline.

Growth and buy-backs in the cards

AppLovin's third-quarter figures, made public after market close on Wednesday, featured a revenue line of just over $1.4 billion, which was an impressive 68% improvement over the year-ago result. Net income in line with generally accepted accounting principles (GAAP) nearly doubled, coming in at almost $836 million ($2.45 per share) for the period.

Image source: Getty Images.

Both numbers were more than sufficient to beat the consensus analyst projections. On average, prognosticators following AppLovin's fortunes were estimating it would earn only $1.34 billion in revenue, and $2.37 in GAAP net income.

In another investor-pleasing move, AppLovin's board of directors increased the company's share repurchase authorization. As of the end of October, the new amount stood at $3.3 billion.

A forward beat, too

AppLovin also edged past analyst expectations with its current (fourth) quarter revenue guidance. Management is modeling a top line of $1.57 billion to $1.60 billion for the frame, which sits above the prognosticator consensus of just under $1.55 billion.

Non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA), meanwhile, is expected to come in at $1.29 billion to $1.32 billion. The company did not provide any net income forecasts.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.