Shares of the AppLovin Corporation (APP) stock were going down in the Intraday trading session on December 3, 2021. APP stock price saw a downtrend of 8.40% to drop at $82.73 a share at the time of this writing. The stock was green in the previous trade and went up by 4.86% at closing. Let’s deep dive to understand the reason behind this fall.

What’s Happening?

APP stock has recently announced the launch of a secondary offering after which the sentiment is going down so far. The company announced that its certain stockholders including KKR Denali Holdings L.P wish to sell in an underwritten secondary offering of 6,500,000 shares of Class A common stock of the AppLovin. KKR Denali Holdings L.P will also grant the 30-day option to underwriters for additional buying of 975,000 shares of Class A common stock. As APP stock is not involved in the selling of shares, all the proceeds resulting from this offering will go to the selling stockholders.

New Appointment by APP stock:

In the mid of the previous month, APP stock did announce that it has appointed Alyssa Harvey Dawson as a board member. She has profound experience of more than 20 years of legal and business issues. She is currently working as the Chief Legal Officer of Gusto which is an HR software provider. Previously she served Alphabet as the general counsel of its Sidewalk labs.

Financial View of APP stock:

On November 11, 2021, APP stock announced the third quarter 2021 financial results according to which

• The company generated $727 million in revenue which represents 90% year over year growth. The stock recorded organic growth of 58% in the recently reported quarter.
• The business software revenue of the company reached $193 million. This represents year-over-year growth of 385% and 316% organic growth. The stock is experiencing growth for the fourth consecutive quarter.
• The company generated $534 million in revenue from the apps which represent a growth of 56%. The company generated $156 million from business apps and $377 million from consumer apps.
• GAAP net income was $0.1 million in the recently reported quarter as compared to $90 million GAAP net loss in the comparable quarter of last year.
• Adjusted EBITDA of $191 million represented 126% growth in the recently reported quarter.

Wrap Up:

The per-share price of the APP stock is declining in response to the secondary launch offering by the company. The performance in 2021 is satisfactory as APP stock gained almost 39% year to date.