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.
