Why Digital Turbine Stock Is Plummeting Today
Marcus LeeTuesday, Feb 18, 2025 3:15 pm ET
3min readDigital Turbine(APPS) stock is falling with the release of its fiscal fourth-quarter 2023 earnings report. The company missed earnings per share and revenue estimates for the quarter. Digital Turbine also provided a weak outlook for fiscal Q1 2024. Source: JHVEPhoto / Shutterstock.com
Digital Turbine (APPS) stock is falling on Thursday following the release of the mobile advertising company’s latest earnings report. The bad news for APPS stock starts with the company’s adjusted earnings per share of 14 cents. That’s below the 18 cents per share that Wall Street was expecting for the quarter. It’s also below the 39 cents per share reported in the same period of the year prior.
Adding to this, revenue only came in at $140.12 million. That’s another miss next to analysts’ revenue estimate of $143.14 million for the period. Not helping matters is that that represents a 24% decline in revenue year-over-year (YOY).
Bill Stone, CEO of Digital Turbine, provided the following insight in the earnings report: “Macro headwinds have adversely impacted overall ad spending in recent quarters, but we are starting to see stabilization and renewed confidence among advertisers, which helped us to sign several notable strategic demand partnerships in the March quarter.”
APPS Outlook Hits Stock
Digital Turbine’s outlook for the first quarter of fiscal 2024 is also hitting the stock. The company expects adjusted EPS to range from 11 cents to 13 cents alongside revenue between $140 million and $145 million. However, Wall Street is looking for 22 cents per share and revenue of $148.53 million for the quarter. This weak outlook may have further dampened investor sentiment.
DT Basic EPS, Total Revenue YoY...
| Name |
|---|
| Date |
| Basic EPS(USD) |
| Total Revenue YoY% |
| ROE(Average)% |
| DynatraceDT |
| 2025 Q3 |
| 1.21 |
| 19.47 |
| 19.45 |
Digital Turbine’s recent earnings report and weak outlook suggest that the company is still facing challenges despite some signs of improvement. The macroeconomic environment has also played a role in the company’s performance, as the CEO mentioned. Investors may be concerned about the company’s ability to navigate these headwinds and achieve sustainable growth.
In conclusion, Digital Turbine’s stock price is plummeting today due to a combination of factors, including a weak earnings report, revenue decline, and a lackluster outlook. The company’s recent performance and market sentiment suggest that investors are uncertain about its growth prospects and competitive position within the mobile advertising industry. Long-term investors should monitor the company’s progress closely before making any investment decisions.
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