Software
AppLovin: Strong Fundamentals; Sentiment Remains a Hurdle
AppLovin’s fundamentals remained strong in this earnings report, yet negative sentiment continues to build. There is no material evidence that market concerns are playing out, yet regardless, the market has a new set of concerns around AI-driven ad competitors, following previous concerns on short seller reports and SEC probes. Sticking to the facts, the company reported very strong growth of 66% YoY and 18% QoQ for revenue of $1.66 billion. On a sequential basis, AppLovin accelerated from 11.6% QoQ last quarter though YoY was down about 230 basis points. Looking into Q1, the company is guiding for growth of 6.2% QoQ on a higher revenue base of $1.66 billion compared to 16% QoQ growth in Q1 last year on a lower revenue base of $999.5 million. The Q1 revenue guide beat estimates by a solid 3.5%.
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