Mobile app advertising platform AppLovin (NASDAQ: APP) will be reporting results tomorrow after market hours. Here’s what to expect.
AppLovin beat analysts’ revenue expectations by 8.6% last quarter, reporting revenues of $1.37 billion, up 44% year on year. It was a very strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations.
Is AppLovin a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting AppLovin’s revenue to grow 30.9% year on year to $1.38 billion, slowing from the 47.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.96 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 twice over the last two years.
Looking at AppLovin’s peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Zeta delivered year-on-year revenue growth of 35.6%, beating analysts’ expectations by 4.1%, and Freshworks reported revenues up 18.9%, topping estimates by 2.1%. Zeta’s stock price was unchanged after the results, while Freshworks was up 2.9%.
Read our full analysis of Zeta’s results here and Freshworks’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 15% on average over the last month. AppLovin is up 29.8% during the same time and is heading into earnings with an average analyst price target of $432.90 (compared to the current share price of $301.50).
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