What To Expect From AppLovin’s (APP) Q2 Earnings

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Mobile app technology company AppLovin (NASDAQ: APP) will be announcing earnings results this Wednesday after market hours. Here’s what you need to know.

AppLovin beat analysts’ revenue expectations last quarter, reporting revenues of $1.84 billion, up 59% year on year. It was a strong quarter for the company, with EBITDA and revenue guidance for next quarter topping analysts’ expectations.

Is AppLovin a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting AppLovin’s revenue to grow 54.6% year on year, improving from the 16.5% increase it recorded in the same quarter last year.

AppLovin Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. AppLovin has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at AppLovin’s peers in the sales and marketing software segment, only GoDaddy has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 6.6%. The stock was down 16.7% on the results.

Read our full analysis of GoDaddy’s earnings results here.

There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 6.5% on average over the last month. AppLovin is down 24.9% during the same time and is heading into earnings with an average analyst price target of $656.20 (compared to the current share price of $408.40).

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