Mobile app technology company AppLovin (NASDAQ:APP) will be reporting results this Wednesday after market hours. Here’s what investors should know.
AppLovin beat analysts’ revenue expectations by 4.5% last quarter, reporting revenues of $1.41 billion, up 17.3% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat 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 18.1% year on year to $1.62 billion, slowing from the 44% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.07 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 three times over the last two years.
Looking at AppLovin’s peers in the sales and marketing software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. LiveRamp delivered year-on-year revenue growth of 8.6%, meeting analysts’ expectations, and ZoomInfo reported revenues up 3.2%, topping estimates by 3.2%. LiveRamp traded up 3.5% following the results.
Read our full analysis of LiveRamp’s results here and ZoomInfo’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. Unfortunately, sales and marketing software stocks have struggled in this environment as share prices are down 17.9% on average over the last month. AppLovin is down 26.9% during the same time and is heading into earnings with an average analyst price target of $721.85 (compared to the current share price of $473.96).
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