Over the last trading session, shares of Digital Turbine Inc. (APPS) were up 5.2%. As of today, the stock is up 247% from a low of $1.81 set in January 2019. That’s greater than the 26% gains on the S&P 500 for the same time frame.
Digital Turbine provides media and mobile communication solutions for mobile operators, application developers, device original equipment manufacturers, and other third parties worldwide. The company offers Ignite, a mobile application management software to control, manage, and monetize the applications that are installed on mobile devices and professional services directly related to the ignite platform.
In its most recent quarter, the company posted revenue of $36 million, representing 18% growth year over year. GAAP net income for the quarter was $3.3 million, or four cents, as compared to a net loss of $1.1 million, or one-cent per share year over year. Non-GAAP adjusted EBITDA for the fiscal third quarter was $5.6 million, as compared to Non-GAAP adjusted EBITDA of $3.8 million in the fiscal third quarter of 2019. GAAP gross margin was 39% for the fiscal third quarter of 2020, as compared to a 35% GAAP gross margin year over year, as well.
“The December quarter was another highly productive quarter for Digital Turbine across a number of fronts,” said Bill Stone, CEO. “In terms of our financial results for the quarter, I was pleased with our improved execution and the resilient profitability demonstrated by our business model. Despite substantially weaker-than-expected Android device sales in November in our core U.S. market, we managed to generate $5.6 million in EBITDA and more than $7 million in free cash flow during the quarter.”
“We did a nice job controlling what we could control as we set all-time records for revenue-per-device (“RPD”), revenue from new products, and revenue from our new partners. In terms of our addressable market for devices, we are continuing to make meaningful progress advancing our global device footprint with key strategic partners such as Samsung, LG Electronics, and Telefonica. We expect these and other new partner rollouts, along with the increased promotion and adoption of 5G, and the penetration into new device types such as televisions, to be significant growth contributors in calendar 2020 and beyond,” he added.
Digital Turbine also entered into a definitive purchase agreement to acquire Mobile Posse, Inc., a mobile content discovery and advertising platform company for an estimated total of $66.0 million. “We are extremely excited to announce the acquisition of Mobile Posse today,” said Bill Stone. “We believe that this is a great transaction for our partners, advertisers, employees and shareholders. The early returns on our internally-developed Media Hub product showcased exciting potential, thereby encouraging us to profitably accelerate our growth efforts with these types of content offerings, and Mobile Posse has a proven track record of being one of the very best at providing users with richer media content.”
Ian Cooper’s Personal Position in APPS: None