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Digital Turbine Shares Tumble 14% on Revenue Miss

Published 29/05/2024, 06:14 am
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APPS
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AUSTIN, Texas – Digital Turbine, Inc. (NASDAQ:APPS) reported its fiscal fourth quarter results, which fell short of Wall Street's revenue expectations, sending its shares down by 14%. The company posted a revenue of $112.2 million, a 20% decrease from the same quarter last year, and below the analyst consensus of $117.69 million.

Despite the revenue shortfall, the company did manage to surpass earnings estimates, reporting an adjusted EPS of $0.12, which was $0.05 higher than the expected $0.07.

The reported GAAP net loss was significant, totaling $236.5 million, or -$2.32 per share, largely due to a noncash goodwill impairment charge of $189.5 million. This compares to a GAAP net loss of $13.9 million, or -$0.14 per share, in the fiscal fourth quarter of 2023.

On an adjusted basis, net income for the quarter was $12.6 million, down slightly from $13.6 million in the prior year's quarter.

Digital Turbine's CEO, Bill Stone, commented on the results, highlighting the company's new partnerships expected to add over 70 million new devices globally.

Stone expressed optimism about the company's strategic positioning and real-time marketplace momentum, despite the financial results not fully reflecting the progress made.

"We are increasingly convinced that we are on the right track with our overarching corporate strategy," said Stone.

For the full fiscal year 2024, Digital Turbine's revenue was $544.5 million. The company's non-GAAP adjusted EBITDA for the fiscal year was $92.4 million, a decrease from $163.2 million in the previous year.

Looking ahead to fiscal year 2025, Digital Turbine provided revenue guidance in the range of $540 million to $560 million, with a midpoint slightly below the analyst consensus of $553.2 million. The company also forecasts non-GAAP adjusted EBITDA to be between $85 million and $95 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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