AppLovin (APP) Q4 Earnings: What To Expect

Adam Hejl /
2023/02/07 5:32 am EST

Mobile app advertising platform AppLovin (NASDAQ: APP) will be announcing earnings results tomorrow after the bell. Here's what investors should know.

Last quarter AppLovin reported revenues of $713 million, down 1.9% year on year, missing analyst expectations by 2.07%. It was a weak quarter for the company, with full year guidance missing analysts' expectations.

Is AppLovin buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting AppLovin's revenue to decline 12.9% year on year to $690.3 million, a significant deceleration on the 55.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.43 per share.

AppLovin Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.

Looking at AppLovin's peers in the sales and marketing software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. ZoomInfo delivered top-line growth of 35.7% year on year, beating analyst estimates by 0.93% and Qualtrics reported revenues up 23.1% year on year, exceeding estimates by 2.08%. Qualtrics was up 1.25%, and Zoominfo was down 4.76%. Read our full analysis of ZoomInfo's results here and Qualtrics's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 20.8% over the last month. AppLovin is up 29.8% during the same time, and is heading into the earnings with analyst price target of $24.00, compared to share price of $13.22.

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The author has no position in any of the stocks mentioned.