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Will Top-Line Improvement Benefit AppLovin's Q1 Earnings?

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AppLovin Corporation (APP - Free Report) is set to announce its first-quarter 2025 results on May 7, after market close. The company is expected to report strong year-over-year revenue growth, primarily driven by the continued expansion of its Software Platform segment.

The consensus estimate for Software Platform revenues is pegged at $1.05 billion, indicating a substantial 54.3% increase compared with the prior-year quarter. This surge is likely to have been fueled by the company’s advanced AXON 2.0 technology, which enhances ad targeting and optimization. Meanwhile, the consensus mark for Apps revenues is $331.7 million, indicating a decline of 12.7% year over year.

The Zacks Consensus Estimate for AppLovin’s total revenues is expected to reach $1.38 billion, indicating a robust 30.2% increase from the year-ago quarter. This strong top-line growth underscores the effectiveness of the company’s strategic expansion efforts, including acquisitions of gaming studios and innovations in AI-driven ad solutions.

Profitability is also anticipated to have improved significantly. The consensus estimate for Software Platform’s adjusted EBITDA is pegged at $829.4 million, implying 68.6% year-over-year growth. APP’s adjusted EBITDA is expected to decrease 16.8% year over year.

Earnings per share are expected to show a massive 116.4% increase, with the Zacks Consensus Estimate of $1.45. These projections highlight AppLovin’s ability to capitalize on its technology-driven business model, reinforcing its position as a leading player in the digital advertising and gaming industries.

APP currently carries a Zacks Rank #3 (Hold).

Stocks That Warrant a Look

Here are a few stocks from the broader Business Services sector, which are scheduled to report first-quarter 2025 earnings soon.

Nayax Ltd. (NYAX - Free Report) : The Zacks Consensus Estimate for the company’s first-quarter 2025 revenues is pegged at $85.6 million, indicating year-over-year growth of 33.9%. The consensus estimate for earnings is pegged at 4 cents per share in contrast to a year-ago loss of 15 cents. The company’s earnings beat the consensus estimate in two of the past four quarters and missed twice, with an average negative surprise of 206.3%.

NYAX currently has a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company is scheduled to declare first-quarter 2025 results on May 13. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Remitly Global, Inc. (RELY - Free Report) : The Zacks Consensus Estimate for the company’s first-quarter 2025 revenues is pegged at $347 million, indicating year-over-year growth of 28.9%. The consensus mark for loss is pegged at 4 cents per share, which is narrower than a loss of 11 cents in the year-ago quarter. The company’s earnings beat the consensus estimate in each of the past four quarters, with an average surprise of 58.8%.

RELY has a Zacks Rank of 3 at present. The company is scheduled to declare first-quarter 2025 results on May 7.


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