Mobile app technology company AppLovin (NASDAQ: APP) will be reporting earnings this Wednesday afternoon. Here’s what you need to know.
AppLovin missed analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $1.26 billion, up 16.5% year on year. It was a mixed quarter for the company, with EBITDA guidance for next quarter topping analysts’ expectations but a slight miss of analysts’ revenue estimates.
Is AppLovin a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting AppLovin’s revenue to grow 12% year on year to $1.34 billion, slowing from the 38.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.49 per share.
Analysts covering the company have generally 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 twice 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. ZoomInfo delivered year-on-year revenue growth of 4.7%, beating analysts’ expectations by 4.7%, and GoDaddy reported revenues up 10.3%, topping estimates by 2.7%. GoDaddy traded up 5.1% following the results.
Read our full analysis of ZoomInfo’s results here and GoDaddy’s results here.
Investors in the sales and marketing software segment have had fairly steady hands going into earnings, with share prices down 1.2% on average over the last month. AppLovin is up 7.2% during the same time and is heading into earnings with an average analyst price target of $649.96 (compared to the current share price of $629).
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