- AppLovin’s Q1 revenue exceeded estimates, reaching $1.06 billion versus the $973.7 million estimate.
- The reported earnings per share (EPS) were 67 cents against a loss of 1 cent per share year over year.
- Net income for the quarter was $236.2 million in comparison to a loss of $4.52 million in the same period the previous year.
- The adjusted EBITDA more than doubled from $274 million year over year to $548.8 million, surpassing the estimated $496 million.
- Cash and cash equivalents stand at at $436.3 million, which falls short of the estimated $765.8 million.
- The company’s shares rose 8% in post-market trading after the release of these results.
- For Q2, they project revenues between $1.06 billion and $1.08 billion, above the estimate of $1.00 billion.
- The company also expects Q2 adjusted EBITDA to be in the range of $550 million to $570 million, which is above the estimated $520.8 million.
- AppLovin forecasts its Q2 adjusted EBITDA margin to be between 52% and 53%.
- Following the results, the company’s shares traded up 8.1% to $79.98 in the post-market trading session with a volume of 277,151 shares traded.
- The current consensus rating includes 13 buys, 7 holds and 1 sell.
AppLovin on Smartkarma
Analysts on Smartkarma are closely following AppLovin Corporation, with Baptista Research providing valuable insights into the company. In one report titled “AppLovin Corporation: Is The Robust Performance Of APP’s Software Platform Expected To Continue To Grow Revenues? – Major Drivers,” Baptista Research highlights the company’s strong performance in surpassing its forecast for the fiscal year ended December 31, 2023. Despite a challenging 2022, AppLovin reported a significant 76% increase in revenue from its software platform in 2023, showcasing the potential of its AI advertising engine, AXON. Baptista Research delves into the factors influencing the company’s future price and conducts an independent valuation using a Discounted Cash Flow (DCF) methodology.
In another report by Baptista Research titled “AppLovin Corporation: AI-Driven Tech Powering Advertising – A Deep Dive! – Major Drivers,” the analysts emphasize AppLovin’s impressive performance in the previous quarter with substantial year-over-year and quarter-over-quarter revenue growth. The company’s portfolio optimization program yielded positive results, with the apps sector recording its first quarter of quarter-over-quarter revenue growth, reaching a total revenue of $864 million and an adjusted EBITDA of $490 million, up 63% year-over-year. Notably, revenue in the app segment increased by 5% sequentially to $360 million, marking the first quarter of growth since the initiation of the portfolio optimization initiative.
A look at AppLovin Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
AppLovin Corporation, a software solutions provider, has a bright long-term outlook based on its Smartkarma Smart Scores. With a top score in Growth and Momentum, AppLovin is positioned well for future expansion and market traction. The company’s focus on optimizing monetization and utilizing machine learning for data-driven marketing decisions showcases its commitment to sustainable and profitable growth. While its Value and Resilience scores are moderate, AppLovin’s high ratings in Growth and Momentum signify a strong potential for success in the software industry.
AppLovin Corporation, known for its end-to-end software solutions, is setting a robust trajectory with a 5 out of 5 score in Growth and Momentum. The company’s strategic approach to helping clients worldwide optimize monetization and harness the power of machine learning for marketing decisions bodes well for its future prospects. Despite moderate ratings in Value and Resilience, AppLovin’s stellar performance in Growth and Momentum underscores its ability to thrive and excel in the competitive software market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
