AppLovin (APP) Reports Earnings Tomorrow. What To Expect

Adam Hejl /
2022/08/09 4:36 am EDT

Mobile app advertising platform AppLovin (NASDAQ: APP) will be reporting results tomorrow after market hours. Here's what you need to know.

Last quarter AppLovin reported revenues of $625.4 million, up 3.56% year on year, missing analyst expectations by 23.4%. It was a weak quarter for the company, with a miss of the top line analyst estimates and a decline in gross margin.

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 grow 24.9% year on year to $835.7 million, slowing down from the 123% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.49 per share.

AppLovin Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two downward revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by -0.89%.

Looking at AppLovin's peers in the advertising software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. LiveRamp delivered top-line growth of 19.4% year on year, beating analyst estimates by 2.35% and PubMatic reported revenues up 26.9% year on year, exceeding estimates by 3.94%. LiveRamp traded down 3.78% on the results, and Pubmatic was up 6.92%. Read our full analysis of LiveRamp's results here and PubMatic's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 10.4% over the last month. AppLovin is up 14.3% during the same time, and is heading into the earnings with analyst price target of $65.1, compared to share price of $39.94.

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