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Digital Turbine (APPS) Q4 Earnings Beat, Sales Surge Y/Y
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Digital Turbine (APPS - Free Report) reported fourth-quarter fiscal 2021 non-GAAP earnings of 25 cents per share, which beat the Zacks Consensus Estimate by 13.6% and surged 400% year over year.
Revenues of $95.1 million beat the consensus mark by 4.5%. The top line increased 141.6% 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 50% year over year. International RPD grew over 140% in the reported quarter.
The company saw growth in devices sales of more than 10% in the United States and more than 30% internationally year over year.
Digital Turbine, Inc. Price, Consensus and EPS Surprise
For the application business, revenues increased 95% year over year to $67.2 million
For the content business, revenues increased 120% year over year to $27.9 million, driven by improved performance on fully deployed content platform combined with increasing advertising demand and yields.
On the product front, revenues from dynamic installs grew 73% year over year in the fiscal fourth quarter, representing over 50% of total revenues. Revenues derived from non-dynamic install products grew over 300% year over year as content products like SingleTap and others showed solid growth.
Operating Details
Non-GAAP gross margin expanded 140 basis points (bps) on a year-over-year basis to 41.4%.
On a GAAP-basis, product development expenses increased 69.9% to $6.2 million. Sales & marketing (S&M) expenses increased 32.9% to $4.9 million. General & administrative (G&A) expenses rose 137.5% to $11.8 million.
Operating expenses, as a percentage of revenues, contracted 730 bps on a year-over-year basis to 24.2%.
Operating income on a GAAP basis was $15.9 million in the reported quarter. The company had reported an operating income of $2.9 million in the year-ago quarter.
Balance Sheet & Cash Flow
The company's cash balance was $30.7 million as of Mar 31, 2021, compared with $43.6 million as of Dec 31, 2020.
Cash provided by operating activities totaled $14.1 million in the reported quarter compared with $18.9 million in the previous quarter.
Non-GAAP free cash flow was $21.8 million in the reported quarter compared with $22 million in the prior quarter.
Guidance
For first-quarter fiscal 2022, Digital Turbine expects revenues between $188 million and $192 million.
Non-GAAP adjusted EBITDA is expected between $32 million and $34 million. Adjusted earnings per share are expected to be 31 cents.
Zacks Rank & Stocks to Consider
Currently, Digital Turbine carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector include Lam Research Corporation (LRCX - Free Report) , ASML Holding N.V. (ASML - Free Report) and Facebook . While Lam Research and ASML Holding sport a Zacks Rank #1 (Strong Buy), Facebook carries a Zacks Rank #2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Lam Research, ASML Holding, and Facebook is currently pegged at 32.8%, 29.8% and 20.1%, respectively.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Digital Turbine (APPS) Q4 Earnings Beat, Sales Surge Y/Y
Digital Turbine (APPS - Free Report) reported fourth-quarter fiscal 2021 non-GAAP earnings of 25 cents per share, which beat the Zacks Consensus Estimate by 13.6% and surged 400% year over year.
Revenues of $95.1 million beat the consensus mark by 4.5%. The top line increased 141.6% 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 50% year over year. International RPD grew over 140% in the reported quarter.
The company saw growth in devices sales of more than 10% in the United States and more than 30% internationally year over year.
Digital Turbine, Inc. Price, Consensus and EPS Surprise
Digital Turbine, Inc. price-consensus-eps-surprise-chart | Digital Turbine, Inc. Quote
Quarter Details
For the application business, revenues increased 95% year over year to $67.2 million
For the content business, revenues increased 120% year over year to $27.9 million, driven by improved performance on fully deployed content platform combined with increasing advertising demand and yields.
On the product front, revenues from dynamic installs grew 73% year over year in the fiscal fourth quarter, representing over 50% of total revenues. Revenues derived from non-dynamic install products grew over 300% year over year as content products like SingleTap and others showed solid growth.
Operating Details
Non-GAAP gross margin expanded 140 basis points (bps) on a year-over-year basis to 41.4%.
On a GAAP-basis, product development expenses increased 69.9% to $6.2 million. Sales & marketing (S&M) expenses increased 32.9% to $4.9 million. General & administrative (G&A) expenses rose 137.5% to $11.8 million.
Operating expenses, as a percentage of revenues, contracted 730 bps on a year-over-year basis to 24.2%.
Operating income on a GAAP basis was $15.9 million in the reported quarter. The company had reported an operating income of $2.9 million in the year-ago quarter.
Balance Sheet & Cash Flow
The company's cash balance was $30.7 million as of Mar 31, 2021, compared with $43.6 million as of Dec 31, 2020.
Cash provided by operating activities totaled $14.1 million in the reported quarter compared with $18.9 million in the previous quarter.
Non-GAAP free cash flow was $21.8 million in the reported quarter compared with $22 million in the prior quarter.
Guidance
For first-quarter fiscal 2022, Digital Turbine expects revenues between $188 million and $192 million.
Non-GAAP adjusted EBITDA is expected between $32 million and $34 million. Adjusted earnings per share are expected to be 31 cents.
Zacks Rank & Stocks to Consider
Currently, Digital Turbine carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector include Lam Research Corporation (LRCX - Free Report) , ASML Holding N.V. (ASML - Free Report) and Facebook . While Lam Research and ASML Holding sport a Zacks Rank #1 (Strong Buy), Facebook carries a Zacks Rank #2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Lam Research, ASML Holding, and Facebook is currently pegged at 32.8%, 29.8% and 20.1%, respectively.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>