Digital Turbine Inc. ((APPS)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Digital Turbine Inc. recently held its earnings call, which conveyed a positive sentiment overall. The company showcased significant growth in revenue and EBITDA, alongside improvements in international revenue per device (RPD) and strategic partnerships. Despite facing challenges such as a decline in full-year revenue and a GAAP net loss, the tone remained optimistic.
Return to Growth
Digital Turbine reported a return to year-over-year growth on both the top and bottom lines. The company experienced a remarkable 66% growth in EBITDA year-over-year, signaling a robust recovery and operational strength.
Revenue and EBITDA Growth
The fiscal 2025 fourth quarter saw Digital Turbine achieving $119.1 million in revenue and $20.5 million in EBITDA. This marked a 6% increase in revenue and a 66% rise in EBITDA compared to the previous year, highlighting the company’s strong financial performance.
International RPD Increase
There was a notable increase in Revenue Per Device (RPD), with more than a 40% rise in the U.S. and over 100% internationally. This growth was driven by strong advertiser demand and improved monetization strategies.
Positive Cash Flow
Digital Turbine reported a positive free cash flow of $5.5 million in March, representing an increase of more than $21 million compared to the prior year period, showcasing improved financial health.
T-Mobile Partnership
The company announced that T-Mobile is now live in the U.S. with Digital Turbine’s Ignite product, expanding their device footprint and enhancing their market presence.
Strategic Product Developments
Digital Turbine launched a new version of Ignite on over 100 million devices and made significant strides in leveraging first-party data through its AI machine learning platform, enhancing its technological capabilities.
Decline in Full Year Revenue
Despite the positive quarterly results, the total revenue for fiscal year 2025 was $490.5 million, representing a year-over-year decline of approximately 10% compared to fiscal year 2024.
GAAP Net Loss
The company reported a GAAP net loss of $18.8 million for the fiscal fourth quarter and $92.1 million for the full fiscal year 2025, indicating areas that need attention for future profitability.
AGP Segment Revenue Decline
Revenue for the AGP segment was down 3% year-over-year, highlighting a challenge within this specific segment that the company may need to address.
Forward-Looking Guidance
Looking ahead, Digital Turbine projects fiscal year 2026 revenue between $515 million and $525 million, with adjusted EBITDA expected to range from $85 million to $95 million. This guidance reflects their continued growth trajectory and operational efficiencies, providing a positive outlook for investors.
In summary, Digital Turbine’s earnings call was marked by a generally positive sentiment, underscored by significant growth in revenue and EBITDA, strategic partnerships, and technological advancements. Despite some challenges, the company’s forward-looking guidance suggests a promising future, with expectations of continued growth and improved operational efficiency.