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What's in Store for Digital Turbine (APPS) in Q4 Earnings?

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Digital Turbine (APPS - Free Report) is set to release fourth-quarter fiscal 2021 results on May 26.

The Zacks Consensus Estimate for revenues is currently pegged at $95.1 million, indicating 141.6% growth from the figure reported in the year-ago quarter.

Moreover, the Zacks Consensus Estimate for earnings has moved up 15.8% to 22 cents per share in the past 30 days. The bottom-line estimate suggests surge of 340% from the figure reported in the year-ago quarter.

In the trailing four quarters, Digital Turbine’s earnings beat the Zacks Consensus Estimate on three occasions and matched the same once. It has a trailing four-quarter earnings surprise of 28.01%, on average.

Let’s see how things have shaped up prior to this announcement.

Digital Turbine, Inc. Price and EPS Surprise

Digital Turbine, Inc. Price and EPS Surprise

Digital Turbine, Inc. price-eps-surprise | Digital Turbine, Inc. Quote

Factors to Consider

Digital Turbine’s fiscal fourth-quarter top line is expected to have benefited from growth in demand for its cloud-based mobile software offerings as enterprises continued the shift from on-premise to cloud environments especially amid coronavirus-induced work-from-home wave.

Additionally, strength in the company’s mobile device management platform, Ignite, is expected to have aided the top line in the to-be-reported quarter.

Steady contributions from products like SingleTap, Folders, App Wizard and Notifications are expected to have contributed to the top line.

The company’s focus on adding strategic resources to improve international revenue per device (RPD) as well as scale partnerships and infrastructure is expected to have been a key growth driver.

Moreover, an expanded partner base, which includes Samsung, America Movil, Pandora, Disney, Netflix, Twitter, Pinterest and others, is likely to have enhanced penetration in the fiscal third quarter.

Markedly, RPD derived from U.S.-based partners increased 25% year over year in third-quarter fiscal 2021. International RPD skyrocketed nearly 70% in the reported quarter driven by Samsung, Xiaomi and Nokia, among others.

Further, notable partnerships in the United States with the likes of Verizon (VZ - Free Report) , U.S. Cellular, Cricket and AT&T (T - Free Report) are expected to have helped the company pull demand from its media partners in the United States during the soon-to-be-reported quarter.

Content media offerings with new U.S.-based partners such as T-Mobile’s (TMUS - Free Report) Tracfone are expected to have strengthened Digital Turbine’s content business portfolio.

Moreover, improvement in advertiser rates due to a rebound in digital ad spending by high profile multinational advertising companies across brands, games and mobile-first applications is expected to have aided this Zacks Rank #2 (Buy) company in the to-be- reported quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Developments in Q4

During the fiscal fourth quarter, the company entered into a definitive purchase agreement to acquire 95% shares in Frankfurt-listed mobile advertising monetization platform company, Fyber N.V.

Fyber's extensive network has over 180 programmatic demand partners with a reach of 650 million unique monthly active users across more than 180 different countries.

The integration will enable Digital Turbine to provide an end-to-end solution for mobile brand acquisition and monetization by combining Fyber's rapidly growing mediation, exchange and advertising solutions with Digital Turbine's core native application and content discovery experiences.

Additionally, Digital Turbine acquired all the capital stock of Triapodi Ltd. (also known as Appreciate), a programmatic mobile advertising DSP company headquartered in Israel for $22.5 million in cash.

Markedly, Appreciate's platform collaborates closely with mobile measurement partners (MMPs), exchanges, advertisers and other partners to programmatically provide a transparent ecosystem designed to optimize user-acquisition and ROI for the mobile marketers utilizing its platform.  Appreciate currently runs nearly 60 billion daily auctions on its platform.

Moreover, the company entered into a definitive purchase agreement to acquire AdColony Holding AS from Otello Corporation ASA, a Norway company and sole shareholder of AdColony. The acquisition of AdColony is consistent with Digital Turbine's strategy to provide a comprehensive media and advertising solution to operator and OEM partners.

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