APP

AppLovinNasdaqGS:APP Stock Report

Market Cap

US$27.4b

7D

3.5%

1Y

n/a

Updated

16 Sep, 2021

Data

Company Financials +
APP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth5/6
Past Performance0/6
Financial Health3/6
Dividends0/6

APP Overview

AppLovin Corporation engages in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps worldwide.

AppLovin Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AppLovin
Historical stock prices
Current Share PriceUS$73.57
52 Week HighUS$49.41
52 Week LowUS$90.03
Beta0
1 Month Change17.58%
3 Month Change-16.60%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO12.84%

Recent News & Updates

Aug 10

Cloud Stocks: AppLovin Fails To Woo The Market

AppLovin’s software solutions provide advanced tools for mobile app developers to grow their businesses by automating and optimizing the marketing and monetization of their apps. AppLovin believes that its market opportunity is expected to grow from $189 billion in 2020 to $283 billion in 2024 at a CAGR of 10.6%. AppLovin has shown significant growth over the recent past. Its revenues have grown 76% annually over the period 2016 to 2020. For 2020, its revenues grew 46% to $1.45 billion.

Shareholder Returns

APPUS SoftwareUS Market
7D3.5%0.8%-0.6%
1Yn/a42.7%33.7%

Return vs Industry: Insufficient data to determine how APP performed against the US Software industry.

Return vs Market: Insufficient data to determine how APP performed against the US Market.

Price Volatility

Is APP's price volatile compared to industry and market?
APP volatility
APP Beta0
Industry Beta0.95
Market Beta1

Stable Share Price: APP is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: Insufficient data to determine APP's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
2011902Adam Foroughihttps://www.applovin.com

AppLovin Corporation engages in building a software-based platform for mobile app developers to enhance the marketing and monetization of their apps worldwide. The company’s software solutions include AppDiscovery, a solution to automate, optimize, and manage user acquisition investments for business clients; and MAX, an in-app bidding solution that optimizes purchases of app ad inventory. Its business clients include various advertisers, internet platforms, and others.

AppLovin Fundamentals Summary

How do AppLovin's earnings and revenue compare to its market cap?
APP fundamental statistics
Market CapUS$27.39b
Earnings (TTM)-US$105.36m
Revenue (TTM)US$2.16b

12.7x

P/S Ratio

-260.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
APP income statement (TTM)
RevenueUS$2.16b
Cost of RevenueUS$829.99m
Gross ProfitUS$1.33b
ExpensesUS$1.44b
Earnings-US$105.36m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.42
Gross Margin61.65%
Net Profit Margin-4.87%
Debt/Equity Ratio88.0%

How did APP perform over the long term?

See historical performance and comparison

Valuation

Is AppLovin undervalued compared to its fair value and its price relative to the market?

29.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: APP ($73.57) is trading below our estimate of fair value ($103.89)

Significantly Below Fair Value: APP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: APP is unprofitable, so we can't compare its PE Ratio to the US Software industry average.

PE vs Market: APP is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate APP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: APP is overvalued based on its PB Ratio (13.7x) compared to the US Software industry average (7x).


Future Growth

How is AppLovin forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

51.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APP is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: APP is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: APP's is expected to become profitable in the next 3 years.

Revenue vs Market: APP's revenue (20.5% per year) is forecast to grow faster than the US market (9.5% per year).

High Growth Revenue: APP's revenue (20.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: APP's Return on Equity is forecast to be low in 3 years time (17.1%).


Past Performance

How has AppLovin performed over the past 5 years?

-341.7%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: APP is currently unprofitable.

Growing Profit Margin: APP is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if APP's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare APP's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: APP is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (22.1%).


Return on Equity

High ROE: APP has a negative Return on Equity (-5.26%), as it is currently unprofitable.


Financial Health

How is AppLovin's financial position?


Financial Position Analysis

Short Term Liabilities: APP's short term assets ($1.7B) exceed its short term liabilities ($603.2M).

Long Term Liabilities: APP's short term assets ($1.7B) do not cover its long term liabilities ($2.0B).


Debt to Equity History and Analysis

Debt Level: APP's debt to equity ratio (88%) is considered high.

Reducing Debt: Insufficient data to determine if APP's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable APP has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: APP is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 23.3% per year.


Dividend

What is AppLovin current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate APP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate APP's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if APP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if APP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of APP's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Adam Foroughi (40 yo)

9.75yrs

Tenure

US$409,462

Compensation

Mr. Adam Foroughi is a Co-Founder of AppLovin Corporation and has been its Chief Executive Officer and Director since December 2011 and has been its Chairperson since March 2021. Mr. Foroughi serves as Chi...


CEO Compensation Analysis

Compensation vs Market: Adam's total compensation ($USD409.46K) is below average for companies of similar size in the US market ($USD11.26M).

Compensation vs Earnings: Adam's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: APP's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: APP's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: APP insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: APP only recently listed within the past 12 months.


Top Shareholders

Company Information

AppLovin Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: AppLovin Corporation
  • Ticker: APP
  • Exchange: NasdaqGS
  • Founded: 2011
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$27.394b
  • Shares outstanding: 372.35m
  • Website: https://www.applovin.com

Number of Employees


Location

  • AppLovin Corporation
  • 1100 Page Mill Road
  • Palo Alto
  • California
  • 94304
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 04:49
End of Day Share Price2021/09/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.