AppLovin misses quarterly revenue estimates amid advertising competition
11/02/2026 22:33
Corrects headline, paragraphs 1 and 4 to indicate company beat, not missed revenue estimates. Rewrites paragraphs 1 and 2 to reflect the change. Changes estimate to $1.60 billion from $1.70 billion in paragraph 4. Corrects expectations to $1.70 billion from $1.67 billion in paragraph 8 Feb 11 (Reuters) - Marketing platform AppLovin APP.O beat market estimates for fourth-quarter sales on Wednesday, boosted by strong demand for its advertising services and artificial-intelligence powered tools. However, its shares fell nearly 6% in extended trading amid indications of increasing competition and an uncertain macroeconomic environment. Companies ranging from Big Tech to up-and-coming advertising platforms have been fighting each other for prized ad dollars, creating an increasingly competitive landscape, challenging providers such as AppLovin. The company reported December quarter sales of $1.66 billion, beating analysts' average estimate of $1.60 billion according to data compiled by LSEG. Social media giant Meta Platforms META.O bidding heavily into Apple's iOS traffic would be a genuine challenge as increased density in ad auctions could increase ad pricing and compress net margins, analysts at Jefferies said in a note ahead of earnings. A cautious spending environment has also emerged from uncertain macroeconomic conditions, with enterprises across industries holding back on big expenses as they prioritize spending on artificial intelligence integration and mission-critical applications. AppLovin's fourth-quarter net income grew 84% to $1.10 billion. The company forecast first-quarter sales between $1.75 billion and $1.78 billion, above estimates of $1.70 billion. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Krishna Chandra Eluri) ((ArsheeyaSingh.Bajwa@thomsonreuters.com; +91 8510015800;))