Digital Turbine APPS reported fourth-quarter fiscal 2023 non-GAAP earnings of 14 cents per share that missed the Zacks Consensus Estimate by 17.65%.
Revenues of $140.1 million beat the consensus mark of $140 million. However, the top line plunged 24% year over year.
Quarter Details
In the application business, revenues from On-Device Media fell 18.7% year over year to $96.9 million.
In the content business, revenues from App Growth Platform decreased 35.4% year over year to $45 million due to macro declines in ad rates and the short-term impact of the consolidation and exiting certain legacy AdColony business lines.
Digital Turbine, Inc. Price, Consensus and EPS Surprise
Digital Turbine, Inc. price-consensus-eps-surprise-chart | Digital Turbine, Inc. Quote
Operating Details
Adjusted gross margin in the reported quarter was 44% compared with 49% reported in the year-ago quarter.
Adjusted EBITDA was $23.1 million down from $50.4 million reported in the year-ago quarter.
In fourth-quarter fiscal 2023, product development expense increased 10.5% year over year to $13.4 million.
Sales & marketing expenses declined 5.9% year over year to $15.3 million.
General & administrative expenses increased by 18.9% year over year to $40 million.
Operating expenses, as a percentage of revenues, were 106.5% compared with the year-ago quarter’s 85.1%.
Adjusted operating loss was $9.1 million, down 133.4% year over year in the reported quarter.
Balance Sheet & Cash Flow
Digital Turbine had cash and cash equivalent and restricted cash of $75.6 million, compared with $79.9 million as of Dec 31, 2022.
It generated $15.9 million in cash from operations compared with $33.2 million in the previous quarter.
The company generated a free cash flow of $12.5 million compared with $36.3 million reported in the year-ago quarter.
Guidance
For first-quarter fiscal 2024, Digital Turbine expects revenues between $140 million and $145 million.
Non-GAAP adjusted EBITDA is expected between $23 million and $25 million.
Adjusted earnings are expected in the range of 11-13 cents per share.
Zacks Rank & Stocks to Consider
Currently, Digital Turbine carries a Zacks Rank #3 (Hold).
Digital Turbine’s shares have tumbled 5.3% compared with the Zacks Computer and Technology sector’s rise of 24.5% year to date.
Some better-ranked stocks in the same sector are CrowdStrike CRWD, Okta OKTA and Pure Storage PSTG.
Pure Storage sports a Zacks Rank #1 (Strong Buy). While CrowdStrike and Okta carries a Zacks Rank #2 (Buy), You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of CrowrdStrike have increased 41.7% year to date. CRWD is slated to report first-quarter fiscal 2024 results on May 31.
Shares of Okta have risen 23.9% year to date. OKTA is scheduled to report first-quarter fiscal 2024 results on May 31.
Shares of Pure Storage have declined 8.3% year to date. PSTG is set to report its first-quarter fiscal 2024 results on May 31.
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