APP Earnings Prediction
The chart below shows how APP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, APP sees a -1.18% change in stock price 10 days leading up to the earnings, and a +10.88% change 10 days following the report. On the earnings day itself, the stock moves by -0.27%. This data can give you a slight idea of what to expect for the next quarter's release.
APP Key Earning Data
APP Earnings Analysis
Positive
Strong Revenue Growth: Total revenue increased 44% year-over-year to $1,370,000,000 in Q4 2024, demonstrating strong growth in the advertising business.
Adjusted EBITDA Surge: Adjusted EBITDA rose 78% to $848,000,000, achieving a remarkable 62% adjusted EBITDA margin, reflecting operational efficiency and profitability.
Free Cash Flow Surge: Free cash flow for Q4 reached $695,000,000, up 105% year-over-year, indicating robust cash generation capabilities.
Advertising Revenue and Profitability: The advertising business generated $999,000,000 in revenue with a 78% adjusted EBITDA margin, showcasing strong performance and profitability in the mobile gaming sector.
Free Cash Flow Utilization: For the full year, free cash flow totaled $2,100,000,000, which was fully utilized for share repurchases, demonstrating a commitment to returning value to shareholders.
Negative
Apps Revenue Decline: Apps revenue decreased by 1% year-over-year to $373 million, with adjusted EBITDA of $71 million, reflecting a 19% margin, indicating a decline in the apps segment's profitability.
Advertising EBITDA Flow-Through: The advertising business's quarter-over-quarter flow-through from revenue to adjusted EBITDA was 75%, slightly lower than normal levels due to a significant increase in data center costs, suggesting potential challenges in cost management.
Transition to Advertising Platform: The company is undergoing a transition to a pure advertising platform, which may lead to operational disruptions and uncertainty during the shift, as indicated by the announcement of the sale of the apps business.
Apps Segment Stagnation Concerns: Despite a strong overall revenue growth of 44%, the apps segment's performance indicates a stagnation in growth, raising concerns about the sustainability of revenue streams from this segment.
Apps Revenue Guidance Decline: The guidance for the apps revenue in Q1 2025 is projected to be between $325 million and $335 million, which represents a decline compared to the previous quarter, highlighting potential challenges in maintaining revenue levels.
APP FAQs
How does APP typically perform around its earnings report dates?
APP's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -1.18% change leading up to the report and a +10.88% change in the 10 days following the release.
Is Applovin Corp (APP) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
APP Earning Call Sentiment
Earnings call transcript: AppLovin Q4 2024 beats expectations, stock surges
APP.O
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