The news: Ad tech company AppLovin reported double-digit Q1 revenue growth a year after it exited the gaming business to go all-in on mobile and AI-powered advertising.

• Total revenues: $1.84 billion, +59% YoY
• EPS: $3.57

While AppLovin did not break out ad revenue figures, our forecast points to strength in this sector as well: The company’s US ad platform revenues will grow 52% this year to $3.49 billion.

Why it matters: AppLovin’s results show that ad tech companies can still find durable growth by narrowing their focus, even in the volatile ad tech sector. Pivoting away from gaming and toward AI-powered advertising appears to be paying off, with its AXON ad engine optimizing ad placements and supporting higher spending.

The results also highlight a broader industry trend: Performance-based platforms with deep AI capabilities are gaining share as privacy changes and the decline of third-party cookies challenge traditional targeting models. AppLovin’s advantage lies in its first-party data and predictive tools, which are increasingly valuable in a market where advertisers need better signals with fewer identifiers.