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AppLovin To Report Earnings Tomorrow: Here Is What To Expect


Jabin Bastian /
2022/02/15 6:41 am EST
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Mobile app advertising platform AppLovin (NASDAQ: APP) will be announcing earnings results tomorrow afternoon. Here's what investors should know.

Last quarter AppLovin reported revenues of $726.9 million, up 90.4% year on year, beating analyst revenue expectations by 4.17%. It was a very strong quarter for the company, with an exceptional revenue growth and a meaningful improvement 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 52.3% year on year to $776.4 million, slowing down from the 82.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Earnings are expected to come in at $0.37 per share.

AppLovin Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing one upward and one downward revision over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time since going public on average by 5.6%.

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. LiveRamp (NYSE:RAMP) delivered top-line growth of 17.4% year on year, beating analyst estimates by 1.08% and Qualtrics (NASDAQ:XM) reported revenues up 47.9% year on year, exceeding estimates by 6.18%. LiveRamp traded down 6.25% on results, Qualtrics was up 5.97%. Read our full analysis of LiveRamp's results here and Qualtrics's results here.

There has been some positive sentiment among investors in the software segment, with the stocks up on average 3.06% over the last month. AppLovin is down 3.23% during the same time, and is heading into the earnings with analyst price target of $111.6, compared to share price of $70.09.

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.