Digital Turbine
APPS
is set to release third-quarter fiscal 2021 results on Feb 3.
For the quarter, Digital Turbine expects revenues between $72 million and $75 million. The Zacks Consensus Estimate for revenues is currently pegged at $75.3 million, indicating 109.1% growth from the figure reported in the year-ago quarter.
Moreover, the Zacks Consensus Estimate for earnings is pegged at 17 cents per share, unchanged in the past 30 days. The bottom-line estimate suggests surge of 240% from the figure reported in the year-ago quarter.
In the trailing four quarters, Digital Turbine’s earnings beat the Zacks Consensus Estimate on three occasions and missed on one. It has a trailing four-quarter earnings surprise of 16.03%, on average.
Let’s see how things have shaped up prior to this announcement.
Digital Turbine, Inc. Price and EPS Surprise
Digital Turbine, Inc. price-eps-surprise
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Digital Turbine, Inc. Quote
Factors to Consider
Digital Turbine is likely to have benefited from growth in demand for its cloud-based mobile software offerings as enterprises continued the shift from on-premise to cloud environments especially amid coronavirus-induced work-from-home wave.
Through Sep 30, 2020, Digital Turbine’s technology platform has been adopted by more than 40 mobile operators and device original equipment manufacturers (OEMs). Moreover, the platform delivered more than 4 billion application preloads for thousands of advertising campaigns.
Developments related to this initiative are likely to have boosted the company’s growth and credibility among international advertisers and other global OEM partners.
Additionally, strength in the company’s mobile device management platform, Ignite, is expected to have aided the top line in the to-be-reported quarter.
Steady contributions from products like SingleTap, Folders, App Wizard and Notifications are expected to have contributed to the top line.
The company’s focus on adding strategic resources to improve international revenue per device (RPD) as well as scale partnerships and infrastructure is expected to have been a key growth driver.
Moreover, an expanded partner base, which includes Samsung, America Movil, Pandora, Disney, Netflix, Twitter, Pinterest and others, is likely to have enhanced penetration in the fiscal third quarter.
Markedly, RPD derived from U.S.-based partners increased 40% year over year in second-quarter fiscal 2021. International RPD skyrocketed more than 100% in the reported quarter driven by Samsung, Xiaomi and Nokia, among others.
Moreover, the company added 60 million of devices in the quarter, representing growth of more than 60% year over year, expanding its global distribution footprint to more than 500 million devices.
Further, notable partnerships in the United States with the likes of
Verizon
VZ
, U.S. Cellular, Cricket and
AT&T
T
are expected to have helped the company pull demand from its media partners in the United States during the soon-to-be-reported quarter.
Content media offerings with new U.S.-based partners such as
T-Mobile
’s
TMUS
Tracfone are expected to have strengthened Digital Turbine’s content business portfolio.
Moreover, this Zacks Rank #2 (Buy) company should expect improvement in advertiser rates due to a rebound in digital ad spending by high profile multinational advertising companies across brands, games and mobile-first applications.
By acquiring Mobile Posse, Digital Turbine effectively increased its U.S. carrier market share from around 70% to nearly 100%. The acquisition is expected to have created cross-selling opportunities across platforms and deliver new ad units that help manage demand for the expanding customer base, thereby driving the top line.
Key Development in Q3
This Zacks Rank #2 (Buy) company was listed in
Deloitte’s Technology Fast 500
, a ranking of the 500 fastest-growing technology, media, telecommunications, life sciences and energy tech companies in North America. Markedly, Digital Turbine’s revenues skyrocketed 365% from 2016 to 2019.
You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
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