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Digital Turbine (APPS) Q3 Earnings Lag, Revenues Fall Y/Y
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Digital Turbine (APPS - Free Report) reported third-quarter fiscal 2023 non-GAAP earnings of 29 cents per share that missed the Zacks Consensus Estimate by 21.62%.
Revenues of $162.3 million missed the consensus mark of $185 million. The top line plunged by 25.1% year over year.
Digital Turbine, Inc. Price, Consensus and EPS Surprise
For the application business, revenues from On Device-Media fell 27.9% year over year to $96.3 million.
For the content business, revenues from App Growth Platform decreased 24.4% year over year to $67.4 million due to decreasing advertising demand and yields.
Operating Details
Adjusted gross margin in the reported quarter was 50% compared with 46% reported in the year-ago quarter.
Moreover, adjusted EBITDA was $39.9 million, down from $57 million reported in the year-ago quarter.
In third-quarter fiscal 2023, product development expense increased 3.4% year over year to $14.2 million.
Sales & marketing expenses increased 3.9% year over year to $16.5 million.
General & administrative expenses fell 2% year over year to $39.1 million.
Operating expenses, as a percentage of revenues, were 94% compared with the year-ago quarter’s 86.6%.
Adjusted operating income was $9.8 million in the reported quarter, down 66.4% year over year.
Balance Sheet & Cash Flow
Digital Turbine's cash balance was $79.8 million as of Dec 31, 2022.
Cash provided by operating activities totaled $33.2 million in the reported quarter.
Free cash flow was $29.9 million in the reported quarter.
Guidance
For fiscal 2023, Digital Turbine expects revenues between $660 million and $670 million.
Non-GAAP adjusted EBITDA is expected between $165 million and $170 million.
Adjusted earnings are expected in the range of $1.15-$1.20 per share.
Zacks Rank & Stocks to Consider
Currently, Digital Turbine carries a Zacks Rank #3 (Hold).
Digital Turbine’s shares have tumbled 67.6% compared with the Zacks Computer and Technology sector’s decline of 20.4% in the past year.
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Digital Turbine (APPS) Q3 Earnings Lag, Revenues Fall Y/Y
Digital Turbine (APPS - Free Report) reported third-quarter fiscal 2023 non-GAAP earnings of 29 cents per share that missed the Zacks Consensus Estimate by 21.62%.
Revenues of $162.3 million missed the consensus mark of $185 million. The top line plunged by 25.1% 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 from On Device-Media fell 27.9% year over year to $96.3 million.
For the content business, revenues from App Growth Platform decreased 24.4% year over year to $67.4 million due to decreasing advertising demand and yields.
Operating Details
Adjusted gross margin in the reported quarter was 50% compared with 46% reported in the year-ago quarter.
Moreover, adjusted EBITDA was $39.9 million, down from $57 million reported in the year-ago quarter.
In third-quarter fiscal 2023, product development expense increased 3.4% year over year to $14.2 million.
Sales & marketing expenses increased 3.9% year over year to $16.5 million.
General & administrative expenses fell 2% year over year to $39.1 million.
Operating expenses, as a percentage of revenues, were 94% compared with the year-ago quarter’s 86.6%.
Adjusted operating income was $9.8 million in the reported quarter, down 66.4% year over year.
Balance Sheet & Cash Flow
Digital Turbine's cash balance was $79.8 million as of Dec 31, 2022.
Cash provided by operating activities totaled $33.2 million in the reported quarter.
Free cash flow was $29.9 million in the reported quarter.
Guidance
For fiscal 2023, Digital Turbine expects revenues between $660 million and $670 million.
Non-GAAP adjusted EBITDA is expected between $165 million and $170 million.
Adjusted earnings are expected in the range of $1.15-$1.20 per share.
Zacks Rank & Stocks to Consider
Currently, Digital Turbine carries a Zacks Rank #3 (Hold).
Digital Turbine’s shares have tumbled 67.6% compared with the Zacks Computer and Technology sector’s decline of 20.4% in the past year.
Some better-ranked stocks in the same sector are Baidu (BIDU - Free Report) , RingCentral (RNG - Free Report) , and Cambium Networks (CMBM - Free Report) .
While Baidu sports a Zacks Rank #1 (Strong Buy), both Cambium and RingCentral carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Baidu shares have declined 8.6% in the past year. BIDU is set to report its fourth-quarter 2022 results on Feb 22.
RingCentral shares have declined 74.4% in the past year. RNG is set to report its fourth-quarter 2022 results on Feb 15.
Cambium shares have declined 18% in the past year. CMBM is set to report its fourth-quarter 2022 results on Feb 16.