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Compared to Estimates, AppLovin (APP) Q2 Earnings: A Look at Key Metrics

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AppLovin (APP - Free Report) 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.
View all Key Company Metrics for AppLovin here>>>

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.

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