AppLovin Earnings: What To Look For From APP

Adam Hejl /
2022/11/08 2:16 am EST

Mobile app advertising platform AppLovin (NASDAQ: APP) will be reporting earnings tomorrow afternoon. Here's what to expect.

Last quarter AppLovin reported revenues of $776.2 million, up 16% year on year, missing analyst expectations by 5.18%. It was a weak quarter for the company, with a 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 grow 0.75% year on year to $732.4 million, slowing down from the 90.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.47 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 three downward revisions over the last thirty days. The company missed Wall St's revenue estimates twice over the last two years.

Looking at AppLovin's peers in the sales and marketing software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Zeta delivered top-line growth of 32.2% year on year, beating analyst estimates by 7.94% and BigCommerce reported revenues up 22.1% year on year, exceeding estimates by 3.97%. Zeta traded up 5.26% on the results, BigCommerce was down 9.05%. Read our full analysis of Zeta's results here and BigCommerce's results here.

There has been a stampede out of high valuation technology stocks and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 6.47% over the last month. AppLovin is down 19.2% during the same time, and is heading into the earnings with analyst price target of $45.10, compared to share price of $14.93.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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