On February 16, Applovin Corp. (APP) declared its financial results for fiscal and Q4 2021. Consequently, the stock declined by 17.60% in the after-hours session on Wednesday.
During the regular session, the stock remained in the red with a loss of 9.01%. After oscillating between $75.97 and $67.85, APP closed the session at $68.71. During the session, the stock traded at an active volume of 3.77 million, 199% of its 65-day average. Following the announcement, APP stock plunged down to a value of $56.52 per share in the after hours.
The mobile marketing platform operator, Applovin Corp. has a market capitalization of $23.04 billion. Currently, the company has 226.41 million shares outstanding in the market. In the past five days, APP stock has declined by 8.08% while losing 27.115 years to date.
APP’s 2021 Financial Summary
Q4 2021
The company had revenue of $793 million and adjusted EBITDA of $221 million in the quarter. Thus, revenue went up by 56%, while the adjusted EBITDA increased by 60% YOY.
Moreover, APP had a net income of $31 million in the quarter against a net loss of $19 million in the year-ago period.
Full-year 2021
For the full year 2021, the revenue was $2.8 billion and adjusted EBITDA was $727 million. Therefore, marking a YOY growth of 92% and 110%, respectively.
Furthermore, the company reported a net income of $35 million for fiscal 2021, against a net loss of 4126 million in the previous year.
2022 Outlook
For fiscal 2022, the company expects total revenue to be in the range of $3.550 billion and $3.850 billion with a growth of 27-38% YOY. This includes 4-11% YOY growth for Apps revenue and 100-123% for the software platform.
MoPub’s Acquisition Completion
On January 03, the company announced the completion of its acquisition of Twitter, Inc.’s MoPub business. APP acquired MoPub for 1.05 billion in cash. This will result in the integration of MoPub and MAX to accelerate and improve efficiencies for app publishers. Additionally, the integration will also provide advertisers with reach expansion and market-efficient pricing.
Following the 90-day migration period after the transaction’s close, MoPub will sunset on March 31, 2022.
Conclusion
While the company reported good growth for 2021, its 2022 outlook disappointed investors. The 2022 outlook did not meet the investors’ expectations. The deficient future outlook caused the stock to lose a huge chunk in the after hours.
