Core Viewpoint - Digital Turbine's stock surged by 82% following the release of its fiscal Q3 2025 financial results, despite reporting a revenue decline and a larger net loss compared to the previous year [1][2]. Financial Performance - The company reported quarterly revenue of $135 million, which represents a 6% decrease year over year [2]. - Digital Turbine incurred a net loss of $23 million, larger than the $14 million loss from the same period last year [2]. - Management anticipates Q4 revenue to be around $115 million, indicating growth compared to the same quarter of fiscal 2024 [3]. Market Context - The stock had previously fallen to a valuation of less than 1 times its sales, leading investors to believe the company was in a downward spiral [4]. - The recent positive outlook for Q4 has prompted investors to reassess their assumptions about the company's growth potential [4]. Business Model and Challenges - Digital Turbine's software is pre-installed on mobile devices from select telecom companies, creating advertising opportunities [3]. - The company faces challenges due to its reliance on a limited number of telecom partnerships and the lower advertising revenue potential in international markets compared to the U.S. [5].

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $135 million, representing a 13% sequential increase and a 3% decrease year-over-year [10][39] - Adjusted EBITDA was $22 million, with a projected nearly 50% growth in EBITDA for the March quarter [10][11] - Non-GAAP EPS was $0.13, down from $0.15 in the same quarter last year [49] - Gross margin for Q3 was 44%, down from 45% in Q2 and 46% in Q3 of the prior year [42] Business Line Data and Key Metrics Changes - On-Device Solutions (ODS) segment revenues reached $92 million, an 11% sequential increase but down 3% year-over-year [12][39] - Revenue per device (RPD) reached record levels in both the US and international markets, driven by strong advertiser demand [40] - Advertising Growth Platform (AGP) revenues were $44 million, with a 17% sequential growth and a 34% year-over-year growth in brand spending [14][41] Market Data and Key Metrics Changes - International ODS revenues increased by 100% year-over-year, indicating strong advertiser demand and improved execution [13] - The company is expanding its global device relationships despite soft device sales in the US, with partnerships including Motorola, Nokia, and T-Mobile [22] Company Strategy and Development Direction - The company is focused on growth and efficiency, targeting more than $25 million in annual operating expense savings [20][48] - Investments in brand relationships and first-party data are seen as key differentiators in a competitive market [15][19] - The transition from waterfall bidding to SDK bidding is a strategic move to improve performance advertising [16][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's transformation and growth strategy, highlighting the importance of leveraging first-party data [31][68] - The upcoming Digital Markets Act in Europe is anticipated to create new opportunities for the company [61] - The company expects revenue for fiscal year 2025 to be in the range of $485 million to $490 million, with projected non-GAAP adjusted EBITDA between $69 million and $71 million [52] Other Important Information - The company announced a leadership transition with Steve Lasher joining as the new CFO [7][33] - Cash balance at the end of the quarter was $34.6 million, with free cash flow of $6.4 million [50] Q&A Session Summary Question: What has changed for big brand names to return to Digital Turbine for advertising? - Management attributed the return to hard work and relationship building, emphasizing the importance of trust with brands [57][58] Question: Are other large publishers preparing to launch their own app stores? - Management noted increased awareness and interest from major players like Epic and Microsoft, with potential for more aggressive moves in 2025 [60][61] Question: What are the key dynamics for 2025 compared to this year? - Management highlighted the importance of leveraging first-party data and expanding device relationships as key growth drivers for the upcoming year [67][70]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-35958 DIGITAL TURBINE, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 22-2267658 (State or Other Jurisdiction of Incorporation or Organiz ...

Digital Turbine Reports Fiscal 2025 Third Quarter Financial Results Third Quarter Revenue Totaled $134.6 Million Third Quarter GAAP Net Loss of $23.1 Million, or GAAP EPS of ($0.22); Third Quarter Non-GAAP Adjusted Net Income of $13.7 Million and Non-GAAP Adjusted EPS of $0.13 1 1 Third Quarter Non-GAAP Adjusted EBITDA Totaled $22.0 Million 2 Austin, TX – February 5, 2025 – Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal third quarter ended December 31, 2024. Recent Financial ...

Third Quarter Revenue Totaled $134.6 MillionThird Quarter GAAP Net Loss of $23.1 Million, or GAAP EPS of ($0.22); Third Quarter Non-GAAP Adjusted Net Income1 of $13.7 Million and Non-GAAP Adjusted EPS1 of $0.13Third Quarter Non-GAAP Adjusted EBITDA2 Totaled $22.0 MillionAUSTIN, Texas, Feb. 5, 2025 /PRNewswire/ -- Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal third quarter ended December 31, 2024.Recent Financial Highlights: Fiscal third quarter of 2025 revenue totaled $134. ...

AUSTIN, Texas, Jan. 23, 2025 /PRNewswire/ -- Digital Turbine, Inc. (Nasdaq: APPS), a global mobile platform company, announced it will host a conference call and webcast to discuss its fiscal 2025 third quarter financial results and operating progress on Wednesday, February 5th, at 4:30pm ET/1:30pm PT. The call, hosted by Digital Turbine's Chief Executive Officer Bill Stone and Chief Financial Officer Barrett Garrison, can be accessed via webcast link: https://app.webinar.net/r46V3JYXmyx. The call can also ...

The Partnership Will Bring DT's Personalized App Recommendations and Seamless Mobile Experiences to Tim UsersAUSTIN, Texas and RIO DE JANEIRO, Jan. 23, 2025 /PRNewswire/ -- TIM Brazil, 5G leader in Brazil, and Digital Turbine, the company that connects the mobile ecosystem through innovative experiences, have announced a strategic partnership to enhance the smartphone experience for millions of TIM customers. This collaboration introduces personalized app recommendations and seamless access to apps and serv ...

Digital Turbine, Inc (NASDAQ: APPS ) had a strong reaction to its earnings this week, which prompted me to take a closer look at the company to see how my picture has changed. AndMy primary area of concentration will be on identifying companies of exceptional caliber, with a proven ability to reinvest capital for impressive returns. Targeting those with a market capitalization of less than $10 billion, affords ample opportunities for growth. The ideal scenario is for these companies to demonstrate a long-te ...

Financial Data and Key Metrics - Revenue for Q2 2025 was $119 million, with EBITDA of $15.3 million, showing modest sequential growth [41] - ODS segment revenue reached $82.4 million, a 2% increase from the previous quarter but down 17% year-over-year [42] - AGP business revenue was $37.3 million, with brand revenues up 26% year-over-year and 13% sequentially [45] - Consolidated gross margin was 45%, down from 46% in Q1 and 47% in the same quarter last year [46] - Non-GAAP adjusted net income was $5 million, or $0.05 per share, compared to $13.9 million, or $0.13 per share, in Q2 2024 [49] - Cash balance at the end of the quarter was $32 million, a decrease of $3 million from the previous quarter [50] Business Line Performance - International ODS revenues improved nearly 25% year-over-year, driven by better RPDs and new supply [15] - SingleTap licensing product continued to grow, expanding relationships with multiple partners [16] - AGP business saw double-digit sequential growth, with year-over-year growth exceeding 25% [18] - DTX revenues on non-gaming applications nearly doubled over the past year [22] - SDK bidding now accounts for approximately 70% of total impressions on the exchange, up from 5% a year ago [29] Market Performance - U.S. device sales declined, with Q2 device volumes experiencing the largest year-on-year percentage decline in the past four quarters [43] - International markets showed growth, particularly in the EU and Latin America, driven by partnerships like ONE Store [11][34] - Regulatory developments in the EU, Japan, Korea, India, and the U.S. are expected to create growth opportunities for alternative app distribution [33][36] Strategic Direction and Industry Competition - The company is focusing on growth and efficiency, with key drivers being expanding device footprint, improving product portfolio, and leveraging first-party data [24][25] - A multiyear agreement with a Tier 1 U.S. operator and the ONE Store partnership are expected to be significant growth catalysts [11][26] - The company is transitioning from waterfall bidding to SDK bidding, with investments in AI, machine learning, and first-party data to drive brand revenues [28][30] - Alternative app distribution is a critical growth initiative, with the launch of DT Hub in the U.S. and plans to expand in the EU and Latin America [34][35] Management Commentary on Operating Environment and Future Outlook - The company expects the trend of declining U.S. device sales to reverse in 2025, driven by new AI features on OEM hardware and the migration from two- to three-year leases [17] - Management emphasized the importance of improving execution to capitalize on the enormous market opportunity in front of the company [12] - The company is optimistic about the future, with a focus on strengthening the financial position, driving top-line and free cash flow growth, and achieving full potential [59] Other Important Information - The company has initiated a transformation program aimed at achieving more than $25 million in annual cost reductions, with $15 million already achieved in the current quarter [10][55] - The company plans to reinvest a portion of the savings into strategic growth areas, such as the alternative app business [55] - The company expects revenue for fiscal year 2025 to be in the range of $475 million to $485 million, with non-GAAP adjusted EBITDA between $65 million and $70 million [57] Q&A Session Question: Phone Activation and Performance Advertising - The company is seeing growth from new international partners but is still facing headwinds from declining U.S. device sales and reduced software updates [62] - Performance DSPs are executing their own supply path optimization strategies, which has impacted the company's performance advertising business [64] Question: RPD and Strategic Alternatives - RPDs improved outside the U.S. but declined slightly in the U.S. due to software update issues [67] - The company's focus is on executing its current strategy rather than exploring strategic alternatives [68]