Mobile app technology company AppLovin (NASDAQ: APP) will be reporting results this Wednesday after the bell. Here’s what to look for.
AppLovin missed analysts’ revenue expectations last quarter, reporting revenues of $1.92 billion, up 52.8% year on year. It was a softer quarter for the company, with revenue guidance for next quarter slightly missing analysts’ expectations and EBITDA guidance for next quarter slightly missing analysts’ expectations.
Is AppLovin a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting AppLovin’s revenue to grow 47.5% year on year, slowing from the 68.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. AppLovin has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at AppLovin’s peers in the sales and marketing software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. DoubleVerify delivered year-on-year revenue growth of 9%, beating analysts’ expectations by 1.1%, and GoDaddy reported revenues up 6%, topping estimates by 1.1%. DoubleVerify’s stock price was unchanged after the resultswhile GoDaddy was up 10.7%.
Read our full analysis of DoubleVerify’s results here and GoDaddy’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 4.2% on average over the last month. AppLovin is down 18.8% during the same time and is heading into earnings with an average analyst price target of $448.43 (compared to the current share price of $228.87).
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