AppLovin Soars on Impressive Q1 Outlook

AppLovin Soars on Impressive Q1 Outlook

Shares of AppLovin Corp. (NSD: APP) are rising in the pre-market session today after the company released its fourth-quarter results. Despite a year-over-year decline of 11.4% in revenue, the figure of $702.3 million still exceeded expectations by $11.8 million.

Financial Summary

  • Revenue: $702.3 million (down 11.4% YoY)
  • Net Loss per Share: $0.21 (wider than expectations by $0.26)
  • Software Platform Revenue: up 24%
  • Apps Revenue: down 28%

Q1 Expectations

  • Revenue: $685 million to $705 million
  • Adjusted EBITDA: $250 million to $270 million
  • Adjusted EBITDA Margin: 36% to 38%
  • Cash Pile: $1.1 billion at the end of 2022

Analysis:

Despite a decline in apps revenue, investors were left impressed with AppLovin’s Q1 outlook. The company expects strong revenue growth in the first quarter and a healthy adjusted EBITDA margin. Additionally, the company ended the year with a cash pile of $1.1 billion, further boosting investor confidence.

App Price Target and Stock Performance:

Wall Street has a consensus price target of $22.29 on APP, suggesting a potential upside of 75.79%. This is after the company’s share price declined by 82% over the past year.

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