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AppLovin (APP) Q3 Earnings: What to Expect

AppLovin (APP) Q3 Earnings: What to Expect

AppLovin (APP) Q3 Earnings: What to Expect

Mobile app advertising platform AppLovin (NASDAQ: APP) will report results after the market close tomorrow. Here's what investors should know:

AppLovin met analysts' revenue expectations in its most recent quarter, reporting revenue of $1.08 billion, up 44% year-over-year. It was a strong quarter for the company, with a significant improvement in analyst EBITDA estimates and a significant improvement in gross margin.

Is AppLovin a buy or sell when it comes to profits? Read our full analysis here, it's free.

Analysts expect AppLovin's revenue to rise 30.9% year-over-year to $1.13 billion this quarter, an improvement from the 21.2% increase in the year-ago quarter. Adjusted earnings are expected to be $1.23 per share.

Total revenue of AppLovin

The majority of analysts covering the company have reaffirmed their estimates in the last 30 days, indicating that they expect the company to remain on track toward earnings. AppLovin has missed Wall Street revenue estimates twice in the last two years.

If we look at AppLovin's competitors in the sales and marketing software segment, some have already reported their third quarter results, which gives us an indication of what we can expect. GoDaddy delivered 7.3% year-over-year revenue growth, meeting analysts' expectations, and VeriSign reported a 3.8% increase in revenue, in line with consensus estimates. GoDaddy's share price was flat following the results, and VeriSign's share price followed a similar reaction.

Read our full analysis of GoDaddy's results here and VeriSign's results here.

There was positive sentiment among investors in the sales and marketing software space, with share prices rising an average of 5.8% over the last month. AppLovin is up 13.6% over the same period and is heading towards profitability with an average analyst price target of $150.49 (compared to the current share price of $159.04).

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