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Digital Turbine's International Expansion Supports On-Device Growth
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Key Takeaways
APPS' ODS revenues rose 15% year over year to $110 million, driven by stronger international results.
International revenue per device jumped nearly 80%, helping offset weaker U.S. device sales.
The Orange partnership and new supply wins are expanding global reach and supporting ODS momentum.
Digital Turbine Inc. (APPS - Free Report) is strengthening its mobile growth platform through international expansion, with rising device volumes, higher revenue per device and deeper carrier and Original Equipment Manufacturer (“OEM”) partnerships broadening its global footprint. The company’s On Device Solutions (“ODS”) business is benefiting from stronger overseas demand, making international markets an increasingly important contributor to growth and monetization.
The momentum is already evident in its latest results. In the first quarter of fiscal 2027, ODS revenues increased 15% year over year to $110 million, primarily driven by improved international performance. Higher new-device volumes and revenue per device internationally supported application media revenues, with international revenue per device increasing nearly 80% year over year, offsetting weaker U.S. device sales.
Latin America and Europe are emerging as key contributors, while the number of global devices using Digital Turbine’s technology grew at a double-digit rate. The company is seeing operators and OEMs seek to monetize additional screens, creating opportunities to extend Ignite beyond SingleTap, out-of-box setups and notifications into areas such as artificial intelligence ("AI") agents, e-commerce, lock screens and other content distribution.
Digital Turbine is broadening its international reach through its announced partnership with Orange, which serves 340 million customers across 26 countries in Europe, the Middle East and Africa. The agreement will bring Digital Turbine’s alternative app distribution platform and SingleTap technology to Orange subscribers during the second half of fiscal 2027. New and future supply wins are expected to support international ODS momentum.
The expanding global footprint provides multiple avenues for mobile monetization and strengthens Digital Turbine’s growth prospects. Management identified international ODS momentum, Ignite and alternative application distribution among key growth drivers, supporting its decision to raise fiscal 2027 revenue guidance to $650-$670 million from $630-$650 million and adjusted EBITDA guidance to $145-$155 million from $135-$145 million.
ZETA & APP’s Strategic Initiatives vs. APPS
Zeta Global Holdings Corp. (ZETA - Free Report) is strengthening its enterprise AI platform through the accelerating adoption of Athena, expanding customer engagement and strategic partnerships. Built on its proprietary data cloud, Athena enables customers to interact with the platform using natural language, while Zeta Business Intelligence extends capabilities beyond marketing by transforming business and customer data into real-time intelligence and actions. Zeta believes partnerships with OpenAI, Snowflake and Palantir, together with rising AI adoption and cross-selling, will expand enterprise opportunities and support sustained long-term growth.
AppLovin Corporation (APP - Free Report) is expanding its advertising platform beyond mobile gaming by scaling the consumer business, broadening advertiser adoption and leveraging AI-driven model improvements. AppLovin Ads Manager is now publicly available, with the company initially targeting mid-market advertisers and using strategic partnerships to accelerate customer acquisition. The company is expanding into non-gaming apps, the open web and eventually connected TV, creating additional avenues for growth as advertiser demand scales. AppLovin expects continued model improvements, stronger data and broader advertiser adoption to support durable long-term growth.
APPS’ Price Performance, Valuation & Estimates
Digital Turbine’s shares have skyrocketed 271.9% over the past three months compared with the industry’s 13.4% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, APPS trades at a trailing price-to-sales ratio of 2.89X, below the industry’s average of 5.68X. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for APPS’ fiscal 2027 earnings implies year-over-year growth of 53.6%, whereas the same for fiscal 2028 indicates an uptick of 33.7%. Estimates for fiscal 2027 and 2028 have been revised upward 2 cents and 9 cents to 86 cents and $1.15, respectively, over the past seven days.
View the Zacks #1 Rank List
Image: Bigstock
Digital Turbine's International Expansion Supports On-Device Growth
Key Takeaways
Digital Turbine Inc. (APPS - Free Report) is strengthening its mobile growth platform through international expansion, with rising device volumes, higher revenue per device and deeper carrier and Original Equipment Manufacturer (“OEM”) partnerships broadening its global footprint. The company’s On Device Solutions (“ODS”) business is benefiting from stronger overseas demand, making international markets an increasingly important contributor to growth and monetization.
The momentum is already evident in its latest results. In the first quarter of fiscal 2027, ODS revenues increased 15% year over year to $110 million, primarily driven by improved international performance. Higher new-device volumes and revenue per device internationally supported application media revenues, with international revenue per device increasing nearly 80% year over year, offsetting weaker U.S. device sales.
Latin America and Europe are emerging as key contributors, while the number of global devices using Digital Turbine’s technology grew at a double-digit rate. The company is seeing operators and OEMs seek to monetize additional screens, creating opportunities to extend Ignite beyond SingleTap, out-of-box setups and notifications into areas such as artificial intelligence ("AI") agents, e-commerce, lock screens and other content distribution.
Digital Turbine is broadening its international reach through its announced partnership with Orange, which serves 340 million customers across 26 countries in Europe, the Middle East and Africa. The agreement will bring Digital Turbine’s alternative app distribution platform and SingleTap technology to Orange subscribers during the second half of fiscal 2027. New and future supply wins are expected to support international ODS momentum.
The expanding global footprint provides multiple avenues for mobile monetization and strengthens Digital Turbine’s growth prospects. Management identified international ODS momentum, Ignite and alternative application distribution among key growth drivers, supporting its decision to raise fiscal 2027 revenue guidance to $650-$670 million from $630-$650 million and adjusted EBITDA guidance to $145-$155 million from $135-$145 million.
ZETA & APP’s Strategic Initiatives vs. APPS
Zeta Global Holdings Corp. (ZETA - Free Report) is strengthening its enterprise AI platform through the accelerating adoption of Athena, expanding customer engagement and strategic partnerships. Built on its proprietary data cloud, Athena enables customers to interact with the platform using natural language, while Zeta Business Intelligence extends capabilities beyond marketing by transforming business and customer data into real-time intelligence and actions. Zeta believes partnerships with OpenAI, Snowflake and Palantir, together with rising AI adoption and cross-selling, will expand enterprise opportunities and support sustained long-term growth.
AppLovin Corporation (APP - Free Report) is expanding its advertising platform beyond mobile gaming by scaling the consumer business, broadening advertiser adoption and leveraging AI-driven model improvements. AppLovin Ads Manager is now publicly available, with the company initially targeting mid-market advertisers and using strategic partnerships to accelerate customer acquisition. The company is expanding into non-gaming apps, the open web and eventually connected TV, creating additional avenues for growth as advertiser demand scales. AppLovin expects continued model improvements, stronger data and broader advertiser adoption to support durable long-term growth.
APPS’ Price Performance, Valuation & Estimates
Digital Turbine’s shares have skyrocketed 271.9% over the past three months compared with the industry’s 13.4% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, APPS trades at a trailing price-to-sales ratio of 2.89X, below the industry’s average of 5.68X. It has a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for APPS’ fiscal 2027 earnings implies year-over-year growth of 53.6%, whereas the same for fiscal 2028 indicates an uptick of 33.7%. Estimates for fiscal 2027 and 2028 have been revised upward 2 cents and 9 cents to 86 cents and $1.15, respectively, over the past seven days.
Image Source: Zacks Investment Research
Digital Turbine currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.