Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>AppLovin closed the fiscal year ended December 31, 2023 on a high note after surpassing the upper end of its forecast and demonstrating a pattern of exceptional performance throughout the year.</li><li>Despite a challenging 2022 characterized by stagnant growth, the company reported a 76% increase in revenue from its software platform in 2023, testament to the potential of its AI advertising engine, AXON. While the performance shows the company's financial strength, uncertainties prevail woven within the statements of forward-looking nature minus respective obligations of updating these unless required by law.</li><li>Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.</li></ul>

AppLovin closed the fiscal year ended December 31, 2023 on a high note after surpassing the upper end of its forecast and demonstrating a pattern of exceptional performance throughout the year.Despite a challenging 2022 characterized by stagnant growth, the company reported a 76% increase in revenue from its software platform in 2023, testament to the potential of its AI advertising engine, AXON. While the performance shows the company's financial strength, uncertainties prevail woven within the statements of forward-looking nature minus respective obligations of updating these unless required by law.Baptista Research looks to evaluate the different factors that could influence the company's price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

AppLovin Corporation: Is The Robust Performance Of APP's Software Platform Expected To Continue To Grow Revenues? - Major Drivers

<ul><li>AppLovin Corporation delivered an all-around beat in the previous quarter, experiencing substantial year-over-year and quarter-over-quarter revenue growth.</li><li>As part of the portfolio optimization program, the apps sector marked its first quarter of quarter-over-quarter revenue growth, generating a total revenue of $864 million, surpassing guidance with an adjusted EBITDA of $490 million, up 63% year-over-year.</li><li>In the app segment, revenue grew 5% sequentially to $360 million, representing the initial quarter of growth since the portfolio optimization initiative began.</li></ul>

AppLovin Corporation delivered an all-around beat in the previous quarter, experiencing substantial year-over-year and quarter-over-quarter revenue growth.As part of the portfolio optimization program, the apps sector marked its first quarter of quarter-over-quarter revenue growth, generating a total revenue of $864 million, surpassing guidance with an adjusted EBITDA of $490 million, up 63% year-over-year.In the app segment, revenue grew 5% sequentially to $360 million, representing the initial quarter of growth since the portfolio optimization initiative began.

AppLovin Corporation: AI-Driven Tech Powering Advertising – A Deep Dive! - Major Drivers

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

<div><p>In between earnings seasons, we are trying to catch up on the flurry of TMT IPOs over the past few months that have caught our eye. Why AppLovin? As we talk about often, we are interested in unique business models, and AppLovin qualifies. Its choice to build up its own mobile game portfolio as a means of turbocharging the value of its software is highly differentiated. We've been tracking winners and losers from Apple's privacy changes this year and think a growing mobile app ecosystem with proprietary 1st party data is very interesting. Valuation seems reasonable. We will continue to track this one on the long side.</p></div><div><div><div class="content-highlight"><p>Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.</p></div></div></div>

In between earnings seasons, we are trying to catch up on the flurry of TMT IPOs over the past few months that have caught our eye. Why AppLovin? As we talk about often, we are interested in unique business models, and AppLovin qualifies. Its choice to build up its own mobile game portfolio as a means of turbocharging the value of its software is highly differentiated. We've been tracking winners and losers from Apple's privacy changes this year and think a growing mobile app ecosystem with proprietary 1st party data is very interesting. Valuation seems reasonable. We will continue to track this one on the long side.Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.

<ul><li>AppLovin Corporation managed to exceed the revenue and earnings expectations of Wall Street.</li><li>The Software Platform sector achieved significant revenue of $406 million, which reflects an increase of 28% over the previous year.</li><li>With $334 million in sales from apps and $61 million in adjusted EBITDA for the second quarter, the company had an 18% margin.</li></ul>

AppLovin Corporation managed to exceed the revenue and earnings expectations of Wall Street.The Software Platform sector achieved significant revenue of $406 million, which reflects an increase of 28% over the previous year.With $334 million in sales from apps and $61 million in adjusted EBITDA for the second quarter, the company had an 18% margin.

AppLovin Corporation: A Laser-Focused Strategy That Is Paying Off Big Time! - Major Drivers

Equity Capital Markets

<ul><li>AppLovin delivered a mixed result in the recent quarter, with revenues above market expectations, but it failed to surpass the analyst consensus in terms of earnings.</li><li>The management’s belief in the resilience of mobile gaming was validated, as the category remained stable even during uncertain economic times.</li><li>The development of AXON 2, their advanced technology, has been a priority, with ongoing upgrades expected to bring significant revenue and cash flow improvements.</li></ul>

AppLovin delivered a mixed result in the recent quarter, with revenues above market expectations, but it failed to surpass the analyst consensus in terms of earnings.The management’s belief in the resilience of mobile gaming was validated, as the category remained stable even during uncertain economic times.The development of AXON 2, their advanced technology, has been a priority, with ongoing upgrades expected to bring significant revenue and cash flow improvements.

AppLovin Corporation: Extended Global Partnership with OPPO & Other Developments

United States

AppLovin Corporation provides software solutions. The Company offers an end-to-end software that optimizes monetization, and uses machine learning to make data-driven marketing decisions for profitable growth. AppLovin serves clients worldwide.

AppLovin (APP US)

AppLovin Corporation: Is The Robust Performance Of APP's Software Platform Expected To Continue To Grow Revenues? - Major Drivers

AppLovin closed the fiscal year ended December 31, 2023 on a high note after surpassing the upper end of its forecast and demonstrating a pattern...

Baptista Research

AppLovin Corporation: AI-Driven Tech Powering Advertising – A Deep Dive! - Major Drivers

AppLovin Corporation delivered an all-around beat in the previous quarter, experiencing substantial year-over-year and quarter-over-quarter...

Baptista Research

Recent IPO Insights: AppLovin

AppLovin's choice to build up its own mobile game portfolio as a means of turbocharging the value of its software is highly differentiated. A...

Aaron Gabin

AppLovin Corporation: A Laser-Focused Strategy That Is Paying Off Big Time! - Major Drivers

AppLovin Corporation managed to exceed the revenue and earnings expectations of Wall Street. The Software Platform sector achieved significant...

Baptista Research

AppLovin Corporation: Extended Global Partnership with OPPO & Other Developments

AppLovin delivered a mixed result in the recent quarter, with revenues above market expectations, but it failed to surpass the analyst consensus...

Baptista Research