Digital Turbine reports Q3 earnings, maintains optimism amid challenges
AInvestThursday, Feb 8, 2024 10:20 am ET
1min read
APPS --

Digital Turbine, a premier entity in the mobile growth platform sector, unveiled its financial outcomes for the fiscal third quarter ending December 31, 2023. The company witnessed a 12% dip in year-over-year revenue, landing at $142.6 million, alongside a GAAP net loss of $14.1 million, a stark contrast to the net income of $4.1 million reported in the corresponding quarter of the previous year. Furthermore, Non-GAAP adjusted EBITDA receded to $25.4 million from $40.0 million in fiscal Q3 2023.

The firm primarily garners its revenue from the On Device Media (ODM) segment, which serves as a conduit between mobile carriers, device OEMs, app publishers, and developers, and end-users. This segment faced a 12% revenue contraction to $142.6 million, largely attributed to subdued U.S. device upgrade rates and ephemeral platform consolidation dynamics.

Despite these impediments, CEO Bill Stone harbors a positive outlook towards the company"s prospects, particularly buoyed by the forthcoming Digital Markets Act in the European Union. Stone is confident that the shifting regulatory and legislative landscape will incentivize global operators, OEMs, and app publishers towards Digital Turbine's direct distribution platform solutions.

Stone remarked, "Weaker U.S. device upgrade rates and temporary platform consolidation factors are merely transient obstacles that do not diminish our vision of the vast market opportunity ahead."

Looking forward to the full fiscal year 2024, Digital Turbine has set its sights on achieving revenue in the range of $547 million to $553 million, with Non-GAAP adjusted EBITDA anticipated to be between $90 million and $94 million, and Non-GAAP adjusted EPS expected to fall between $0.50 and $0.54. The company"s balance sheet reflects a decrease in long-term debt and a robust cash stance, with net cash generated from operating activities standing at $11.7 million for the quarter.

Digital Turbine Inc (NASDAQ:APPS) encountered a challenging fiscal Q3 2024, with key financial indicators such as revenue and profit marking declines from the year prior. Nevertheless, through strategic investments and a steadfast focus on seizing future growth avenues, the company is well-poised for a turnaround and sustained success in the rapidly evolving mobile application market.

$APPS(APPS)

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