We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Digital Turbine (APPS) Q2 Earnings Top Estimates, Sales Up Y/Y
Read MoreHide Full Article
Digital Turbine (APPS - Free Report) reported second-quarter fiscal 2021 non-GAAP earnings of 15 cents per share, which beat the Zacks Consensus Estimate by 36.4% and surged 200% year over year.
Revenues of $71 million beat the consensus mark by 16.6% and came ahead of the guidance of $59-$61 million. The top line increased 116.4% year over year, primarily driven by higher revenue per device (RPD) from international partners and incremental contributions from newer platform products.
RPD derived from U.S.-based partners increased 40% year over year. International RPD skyrocketed more than 100% in the reported quarter.
The company added 60 million of devices in the quarter, representing growth of more than 60% year over year, expanding its global distribution footprint to more than 500 million devices.
Digital Turbine, Inc. Price, Consensus and EPS Surprise
For the application business, RPD increased 100% from international partners, driven by Samsung, Xiaomi and Nokia, among others.
Additionally, revenues generated from OEM partners and U.S. operators like Verizon (VZ - Free Report) , AT&T (T - Free Report) , Cricket and U.S. Cellular accounted for 34% of revenues.
For the content business, revenues increased more than 60% year over year, driven primarily by the acquisition of Mobile Posse.
Operating Details
Non-GAAP gross margin expanded 420 basis points (bps) on a year-over-year basis to 42.8%.
On a GAAP-basis, product development expenses increased 54.2% to $4.2 million. Sales & marketing (S&M) expenses grew 98.1% to $4.8 million. General & administrative (G&A) expenses rose 133% to $8.5 million.
Operating expenses, as a percentage of revenues, contracted 330 bps on a year-over-year basis to 24.8%.
Operating income on a GAAP basis was $12.1 million in the reported quarter. The company had reported an operating income of $3.1 million in the year-ago quarter.
Balance Sheet & Cash Flow
The company's cash balance was $33 million as of Sep 30, 2020, compared with $18.7 million as of Jun 30, 2020.
Cash provided by operating activities totaled $23.7 million in the reported quarter compared with $6.01 million in the previous quarter.
Non-GAAP free cash flow was $21.5 million in the reported quarter compared with $4 million in the prior quarter.
Guidance
For third-quarter fiscal 2021, Digital Turbine expects revenues between $72 million and $75 million.
Non-GAAP adjusted EBITDA is expected between $17 million and $18 million. Adjusted earnings per share are expected between 15 cents and 16 cents.
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Image: Bigstock
Digital Turbine (APPS) Q2 Earnings Top Estimates, Sales Up Y/Y
Digital Turbine (APPS - Free Report) reported second-quarter fiscal 2021 non-GAAP earnings of 15 cents per share, which beat the Zacks Consensus Estimate by 36.4% and surged 200% year over year.
Revenues of $71 million beat the consensus mark by 16.6% and came ahead of the guidance of $59-$61 million. The top line increased 116.4% year over year, primarily driven by higher revenue per device (RPD) from international partners and incremental contributions from newer platform products.
RPD derived from U.S.-based partners increased 40% year over year. International RPD skyrocketed more than 100% in the reported quarter.
The company added 60 million of devices in the quarter, representing growth of more than 60% year over year, expanding its global distribution footprint to more than 500 million devices.
Digital Turbine, Inc. Price, Consensus and EPS Surprise
Digital Turbine, Inc. price-consensus-eps-surprise-chart | Digital Turbine, Inc. Quote
International Partnerships
For the application business, RPD increased 100% from international partners, driven by Samsung, Xiaomi and Nokia, among others.
Additionally, revenues generated from OEM partners and U.S. operators like Verizon (VZ - Free Report) , AT&T (T - Free Report) , Cricket and U.S. Cellular accounted for 34% of revenues.
Moreover, this Zacks Rank #2 (Buy) company’s diversified partner base, including T-Mobile (TMUS - Free Report) , a large content business partner, and rollouts with newer international partners in the second quarter contributed to revenue growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For the content business, revenues increased more than 60% year over year, driven primarily by the acquisition of Mobile Posse.
Operating Details
Non-GAAP gross margin expanded 420 basis points (bps) on a year-over-year basis to 42.8%.
On a GAAP-basis, product development expenses increased 54.2% to $4.2 million. Sales & marketing (S&M) expenses grew 98.1% to $4.8 million. General & administrative (G&A) expenses rose 133% to $8.5 million.
Operating expenses, as a percentage of revenues, contracted 330 bps on a year-over-year basis to 24.8%.
Operating income on a GAAP basis was $12.1 million in the reported quarter. The company had reported an operating income of $3.1 million in the year-ago quarter.
Balance Sheet & Cash Flow
The company's cash balance was $33 million as of Sep 30, 2020, compared with $18.7 million as of Jun 30, 2020.
Cash provided by operating activities totaled $23.7 million in the reported quarter compared with $6.01 million in the previous quarter.
Non-GAAP free cash flow was $21.5 million in the reported quarter compared with $4 million in the prior quarter.
Guidance
For third-quarter fiscal 2021, Digital Turbine expects revenues between $72 million and $75 million.
Non-GAAP adjusted EBITDA is expected between $17 million and $18 million. Adjusted earnings per share are expected between 15 cents and 16 cents.
Have You Seen Zacks’ 2020 Election Stock Report?
The upcoming election could be a massive buying opportunity for savvy investors. Trillions of dollars will shift into new market sectors after the election. The question is, which sectors will soar for each candidate? Zacks has put together a new special report to help readers like you target big profits.
The 2020 Election Stock Report reveals specific stocks you’ll want to own immediately after the results are announced – 6 if Trump wins, 6 if Biden wins. Past election reports have led investors to gains of +71%, +83%, even +185% in the following months. This year’s picks could be even more lucrative.
Check out Zacks’ 2020 Election Stock Report >>