Evercore: App Store revenue up 19% yoy in Apple’s March quarter

Zoom was the most downloaded app last month, according to Amit Daryanani’s proprietary survey.

From a note to clients that landed on my desktop Thursday:

All You Need to Know: Our analysis suggests that App Store revenue grew 17% in Mar, which brings the Mar-qtr growth rate to 19%. We estimate total App Store developer revenue grew to ~$3.7bn in March; up 17% Y/Y (vs. +17% in Feb, +23% in Jan).

Zoom was the most downloaded app this month and Disney+ also had its best month since launch with downloads +256% m/m. Data is not available for native Apple apps, but we think TV+ has likely seen a similar uptick as the lock down encourages users to look beyond current market leaders for new content. China’s growth slowed to 10% against a tough comp, but still a solid ~19% for the quarter. In CQ4:19 we noted gaming revenue growth slowed to around 12% likely due to the impact of Apple Arcade. Gaming revenue grew 15% in the first quarter of CY20, so it’s likely we are still seeing some impact related to Apple Arcade as we would have expected gaming to see an uptick during lockdowns. Growth in the US came in at 23% vs. 21% last month and Japan was up 4% vs. 1% in Feb.

Net/Net: YTD growth rate of 19% is largely in-line with our FY20E services growth rate of 20%.

Maintains Outperform rating and $325 price target.

My take: Surprised we’re not seeing a bigger COVID bump.


  1. Gregg Thurman said:
    Surprised we’re not seeing a bigger COVID bump.

    I don’t think we’ll see the full extent of any ‘bump’ until the June quarter. First indication will be in management’s June quarter Guidance re: implied June quarter revenue growth rates.

    April 2, 2020
  2. John Konopka said:
    Why use zoom? Why not FaceTime? We don’t use zoom because they sell your private information.

    April 2, 2020
  3. Robert Stack said:
    Re Zoom: It works well, and some of us have to!

    Kind of like Windows…except for the works well part! 🙂

    April 2, 2020

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