AppLovin (APP) reported $750.17 million in revenue for the quarter ended June 2023, representing a year-over-year decline of 3.4%. EPS of $0.22 for the same period compares to -$0.06 a year ago.
The reported revenue represents a surprise of +3.92% over the Zacks Consensus Estimate of $721.86 million. With the consensus EPS estimate being $0.08, the EPS surprise was +175.00%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how AppLovin performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Average Revenue Per Monthly Active Payer: $46 versus the two-analyst average estimate of $45.71.
- Monthly Active Payers: 1.7 million versus the two-analyst average estimate of 1.71 million.
- Revenue- Software Platform: $406.06 million compared to the $371.89 million average estimate based on six analysts. The reported number represents a change of +27.9% year over year.
- Revenue- Apps: $344.10 million versus the six-analyst average estimate of $349.71 million. The reported number represents a year-over-year change of -25%.
- Revenue- In-App Purchases Revenue: $233.63 million versus the five-analyst average estimate of $240.78 million. The reported number represents a year-over-year change of -23%.
- Revenue- In-App Advertising Revenue: $110.48 million versus the five-analyst average estimate of $108.18 million. The reported number represents a year-over-year change of -28.9%.
- Segment Adjusted EBITDA- Apps: $60.63 million versus $56.06 million estimated by three analysts on average.
- Segment Adjusted EBITDA- Software Platform: $272.89 million versus $234.99 million estimated by three analysts on average.
Shares of AppLovin have returned +7% over the past month versus the Zacks S&P 500 composite's +2.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Zacks Reveals ChatGPT "Sleeper" Stock
One little-known company is at the heart of an especially brilliant Artificial Intelligence sector. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
As a service to readers, Zacks is providing a bonus report that names and explains this explosive growth stock and 4 other "must buys." Plus more.
Download Free ChatGPT Stock Report Right Now >>AppLovin Corporation (APP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
