Digital Turbine (APPS - Free Report) reported fourth-quarter fiscal 2019 non-GAAP earnings of 3 cents per share, which beat the Zacks Consensus Estimate by a penny and was better than the year-ago quarter’s loss of a cent.
Revenues of $27.2 million also surpassed the consensus mark of $27 million and rallied 29.7% on a year-over-year basis.
Moreover, U.S. revenue-per-device (RPD) increased 27% year over year, driven by continued strong demand for the Digital Turbine platform among advertisers. Further, revenues derived from international partners and Open Market devices surged 129% year over year.
Digital Turbine’s mobile device management platform, Ignite, has gained significant traction. In fourth-quarter fiscal 2019, Ignite was installed on roughly 29 million devices. As of Jun 3, 2019, approximately 260 million devices had Ignite installed.
Operating Details
Non-GAAP gross margin expanded 570 basis points (bps) on a year-over-year basis to 41.7%.
On a GAAP-basis, product development expenses as percentage of revenues expanded 80 bps to 10.9%. Sales & marketing (S&M) and general & administrative (G&A) expenses as percentage of revenues shrunk 50 bps and 630 bps to 9.2% and 13%, respectively.
Operating expenses as percentage of revenues contracted 610 bps to 33.2%.
Operating income on a GAAP basis was $1.9 million against operating loss of $1.3 million in the year-ago quarter.
Balance Sheet & Cash Flow
Digital Turbine ended fiscal 2019 with a cash balance of $10.9 million and no debt, following the conversion of all remaining convertible notes previously outstanding and full repayment of short-term debt.
GAAP cash provided by operating activities totaled $2.4 million. Non-GAAP free cash flow totaled $1.9 million in the reported quarter.
Guidance
For first-quarter fiscal 2020, Digital Turbine expects revenues between $28 million and $28.5 million. The Zacks Consensus Estimate for revenues is currently pegged at $27.8 million, indicating 25.8% growth from the figure reported in the year-ago quarter.
Non-GAAP adjusted EBITDA is expected between $2.2 million and $2.6 million.
Zacks Rank & Stocks to Consider
Currently, Digital Turbine carries a Zacks Rank #3 (Hold).
eGain Corporation (EGAN - Free Report) , j2 Global and Alteryx are stocks worth considering in the same industry. While eGain and j2 Global sport a Zacks Rank #1 (Strong Buy), Alteryx has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for eGain, j2 Global and Alteryx are currently pegged at 30%, 8% and 13.7%, respectively.
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Digital Turbine (APPS - Free Report) reported fourth-quarter fiscal 2019 non-GAAP earnings of 3 cents per share, which beat the Zacks Consensus Estimate by a penny and was better than the year-ago quarter’s loss of a cent.
Revenues of $27.2 million also surpassed the consensus mark of $27 million and rallied 29.7% on a year-over-year basis.
Moreover, U.S. revenue-per-device (RPD) increased 27% year over year, driven by continued strong demand for the Digital Turbine platform among advertisers. Further, revenues derived from international partners and Open Market devices surged 129% year over year.
Digital Turbine’s mobile device management platform, Ignite, has gained significant traction. In fourth-quarter fiscal 2019, Ignite was installed on roughly 29 million devices. As of Jun 3, 2019, approximately 260 million devices had Ignite installed.
Operating Details
Non-GAAP gross margin expanded 570 basis points (bps) on a year-over-year basis to 41.7%.
On a GAAP-basis, product development expenses as percentage of revenues expanded 80 bps to 10.9%. Sales & marketing (S&M) and general & administrative (G&A) expenses as percentage of revenues shrunk 50 bps and 630 bps to 9.2% and 13%, respectively.
Operating expenses as percentage of revenues contracted 610 bps to 33.2%.
Operating income on a GAAP basis was $1.9 million against operating loss of $1.3 million in the year-ago quarter.
Balance Sheet & Cash Flow
Digital Turbine ended fiscal 2019 with a cash balance of $10.9 million and no debt, following the conversion of all remaining convertible notes previously outstanding and full repayment of short-term debt.
GAAP cash provided by operating activities totaled $2.4 million. Non-GAAP free cash flow totaled $1.9 million in the reported quarter.
Guidance
For first-quarter fiscal 2020, Digital Turbine expects revenues between $28 million and $28.5 million. The Zacks Consensus Estimate for revenues is currently pegged at $27.8 million, indicating 25.8% growth from the figure reported in the year-ago quarter.
Non-GAAP adjusted EBITDA is expected between $2.2 million and $2.6 million.
Zacks Rank & Stocks to Consider
Currently, Digital Turbine carries a Zacks Rank #3 (Hold).
eGain Corporation (EGAN - Free Report) , j2 Global and Alteryx are stocks worth considering in the same industry. While eGain and j2 Global sport a Zacks Rank #1 (Strong Buy), Alteryx has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for eGain, j2 Global and Alteryx are currently pegged at 30%, 8% and 13.7%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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