Mobile app technology company AppLovin (NASDAQ:APP) will be reporting earnings this Wednesday after the bell. Here’s what to look for.
AppLovin beat analysts’ revenue expectations last quarter, reporting revenues of $1.66 billion, up 65.9% year on year. It was an exceptional quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
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 53% year on year, improving from the 9.5% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to 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 Q1 results, giving us a hint as to what we can expect. Zeta Global delivered year-on-year revenue growth of 49.9%, beating analysts’ expectations by 7%, and GoDaddy reported revenues up 6.1%, in line with consensus estimates. Zeta Global’s stock price was unchanged after the resultswhile GoDaddy was up 3%.
Read our full analysis of Zeta Global’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 11.6% on average over the last month. AppLovin is up 15.2% during the same time and is heading into earnings with an average analyst price target of $639.36 (compared to the current share price of $475.25).
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