Software developer AppLovin is trading at the highs

The company is a developer of mobile games and applications AppLovin Corp. (APP) is currently trading near the highs. Auction on October 29, the APP stock cost $98.25, having risen in price by more than 50% since the beginning of the year.

AppLovin has significantly increased revenue over the past few quarters, including through acquisitions. the company’s revenue grew by 127% year-on-year to $1.27 billion, but on an organic basis excluding acquisitions, revenue grew by 89% year-on-year in the first quarter and by 97% in the second quarter.

AppLovin has also become profitable again: in the first half of the year, net profit was $3.09 million compared to a net loss of $16.7 million a year earlier. Adjusted EBITDA increased by 155% to $314.8 million. Management expects revenue to grow from 83% to 86% for the entire year and adjusted EBITDA to approximately double due to solid dynamics in the business applications segment and the relaunch of several popular games.

AppLovin’s revenues are distributed approximately equally between the two divisions of the company. Thus, the games segment generates about 51% of revenue and includes a portfolio of more than 200 free games, such as Project Makeover, Wordscapes, and Dingbats.

The company has expanded this direction by buying small studios and entering into new partnerships in recent years. Thus, now more than 200 million people play AppLovin games every month. AppLovin’s business segment, which generated 49% of revenue last year, helps companies analyze, monetize and publish their applications.

AppLovin expanded this division by acquiring the mobile application monitoring company Adjust for about $1 billion. In addition, in early October, the company agreed to buy the mobile advertising network MoPub from Twitter for $ 1.1 billion.

The risk for AppLovin remains high competition in the mobile games market and the development of tools for analytics and monetization.