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
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.37B
44.01%
14.57%
Gross Margin
76.66%
7.52%
-1.08%
Operating Margin
45.58%
63.84%
1.54%
Net Margin
43.65%
141.56%
20.41%
EPS
1.73
246.00%
38.40%
No Data Available
APP Earnings Analysis
Applovin Corp Corporation (APP.O) Earnings Conference Call
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
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APP Earning Call Sentiment
Earnings call transcript: AppLovin Q4 2024 beats expectations, stock surges
APP.O
6.69%Positive
The company reported strong financial performance with significant year-over-year growth in revenue, adjusted EBITDA, and free cash flow. The announcement of a $2 billion increase in share repurchase authorization is a positive signal for investors. While the Q&A highlighted some uncertainties, such as challenges in attribution for CTV and lack of specifics on e-commerce pilot participants, the overall sentiment remains positive. The company's confidence in e-commerce growth and successful pilot results also contribute positively. Given these factors, the stock price is likely to see a positive movement in the next two weeks.
