Shares of software platform provider AppLovin Corp. (NASDAQ:APP) are surging in the pre-market session today after the company posted fourth-quarter numbers. While revenue declined 11.4% year-over-year to $702.3 million, the figure was still ahead of expectations by $11.8 million.
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Net loss per share at $0.21 though came in wider than expectations by $0.26. During the quarter, while software platform revenue increased by 24%, apps revenue saw a decline of 28%. Despite these metrics, investors were left impressed with the company’s first-quarter expectations.
For Q1, APP expects revenue to range between $685 million and $705 million. Adjusted EBITDA is seen landing between $250 million and $270 million. This points to an adjusted EBITDA margin between 36% and 38%. Impressively, at the end of 2022, the company also had a cash pile of $1.1 billion.
Overall, Wall Street has a consensus price target of $22.29 on APP, implying a 75.79% potential upside in the stock. That’s after an 82% nosedive in the company’s share price over the past year.
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