Mobile app advertising platform AppLovin (NASDAQ: APP) will be reporting results tomorrow after market close. Here’s what investors should know.
AppLovin met analysts’ revenue expectations last quarter, reporting revenues of $1.08 billion, up 44% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and a meaningful improvement in its gross margin.
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 $1.13 billion, improving from the 21.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.23 per share.
The majority of analysts covering the company have 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 Q3 results, giving us a hint as to what we can expect. GoDaddy delivered year-on-year revenue growth of 7.3%, meeting analysts’ expectations, and VeriSign reported revenues up 3.8%, in line with consensus estimates. GoDaddy’s stock price was unchanged after the results, and VeriSign’s price followed a similar reaction.
Read our full analysis of GoDaddy’s results here and VeriSign’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 5.8% on average over the last month. AppLovin is up 13.6% during the same time and is heading into earnings with an average analyst price target of $150.49 (compared to the current share price of $159.04).
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