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APPS

Digital Turbine NasdaqCM:APPS Stock Report

Last Price

US$14.41

Market Cap

US$1.4b

7D

-3.4%

1Y

-79.7%

Updated

01 Oct, 2022

Data

Company Financials +
APPS fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance1/6
Financial Health3/6
Dividends0/6

APPS Stock Overview

Digital Turbine, Inc., through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs).

Digital Turbine Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Digital Turbine
Historical stock prices
Current Share PriceUS$14.41
52 Week HighUS$93.98
52 Week LowUS$14.09
Beta2.4
1 Month Change-18.68%
3 Month Change-16.17%
1 Year Change-79.72%
3 Year Change122.89%
5 Year Change829.68%
Change since IPO620.50%

Recent News & Updates

Sep 21

Digital Turbine: Round Trips Fully, Only Pessimism Left

Summary After we get past tax loss season, Digital Turbine will become a very interesting investment on several fronts. It's very easy to be bearish on a stock that has been nothing but a disappointment for most. But the market doesn't care about the past, it's all about the future. Digital Turbine has seen its multiple compress. Perhaps justifiably. But even though APPS stock is down, it isn't out. I estimate Digital Turbine sells for 40x depressed EBITDA. How investors should think through this multiple. I believe that APPS stock is closer to the bottom than the top, thus its risk-reward profile could finally start to improve. Investment Thesis Digital Turbine (APPS) has been on a terrible roller coaster ride, where nearly everyone that has been associated with its stock today is more likely than not holding a loss. And when your whole shareholder base is likely to be holding a loss, it does something to all stakeholders, including employees' motivation, as their stock-based compensation will now be worth substantially less than it was perceived to be worth just a year ago. Today, Digital Turbine is a shadow of its former self. That being said, I believe that when we come out of this economic downturn, advertising stocks will be the ones that will bounce back first, in the same way as they were the first to turn lower as macro headwinds mounted in 2021. Nonetheless, I now revise my EBITDA estimates given this new macro environment. I believe that APPS is being priced at around 40x depressed EBITDA. However, once we get past the next six months, and the economy reestablishes its footing, I believe adtech stocks will be amongst the first to bounce back. In sum, it's not immediately obvious why paying 40x depressed EBITDA could be cheap, so read on. Digital Turbine's Revenue Growth Rates Slow Down APPS revenue growth rates As I highlighted in my previous article, the table above is Digital Turbine's revenue growth rates adjusted for its recent change in accounting, from a gross to net basis. Realistically, most investors have come to terms with fiscal 2023 being a write-off for Digital Turbine. But as Digital Turbine now has had plenty of time to integrate its three acquisitions and restructure its business for the new economic reality, I believe that Digital Turbine could soon turn a corner. And here's why. What's Next for Advertising Stocks? As noted in the introduction, advertising stocks were one of the first sectors to turn negative in this bear market. In fact, looking back, small and medium-cap stocks started to turn lower in February 2021. At the time I strongly believed that the market had got APPS wrong. I was pounding my fist on the table that the stock was undervalued. But as I've already stated here, I had to give up this holding in March 2022. In hindsight, it appears to have been a prescient call, as the stock proceeded to sell off. Clearly, the market was right to be troubled about Digital Turbine and other adtech companies. Data by YCharts As you can see above, the whole group has been out of favor with investors. With Digital Turbine by far faring the worst. Yet I will not be so brave as to claim that the bottom for Digital Turbine is here. What I can claim is that we are a lot closer to the bottom than the top. Thus, the risk-reward from this point is significantly more attractive than it's been at any point in the past year. Here's what we know now. We are very likely to be eyeing up a recession in the US if we are not already in a recession. But we also have to note that in the same way as advertising spending is the first to get pulled as the economy slows down, it will also be amongst the first to get increased as the economy gets back on steady footing. But what's also true is that the stock market will start to inflect ahead of economic data. Remember, after all the market is a leading indicator of economic activity. Spending Through the Phone is a Real Trend Many Asian markets appear to be more predisposed to mobile e-commerce. Recently I echoed Coupang's (CPNG) statement that by 2025 Korea is expected to become the third biggest eCommerce country behind China and the US and ahead of the UK and Japan. Thus, there's an undeniable trend for us to spend more time on mobile devices, and even without much further increase in the number of handsets, Digital Turbine's Android base (GOOG)(GOOGL) should allow it to continue to increase its revenues per device, a metric that Digital Turbine has up until recently shared with investors as a means to track its progress in its operating metrics. Digital Turbine's CEO Bill Stone believes that even though sales cycles have become elongated in the current business cycle, this isn't a permanent shift in advertising budgets. We are simply in unchartered territory of slowing economic growth plus high inflation. But companies that want to increase their sales will need to spend on advertising to reach consumers where they find themselves, on their mobile devices. APPS Stock Valuation - 40x EBITDA Digital Turbine is an adtech company. And one thing that this sector does really well is report strong free cash flows. That being said, I don't believe that it's wise to give any credence to the forecasts that Digital Turbine gave back on its Investor Day this time last year. Nevertheless, I do believe that's entirely possible that Digital Turbine's EBITDA could reach at least $170 million of EBITDA. Here's the math, fiscal Q1 2023's EBITDA was $51 million, while Q2 2023 is guided for $50 million. Given the slowing macro environment discussed, it's entirely possible that H2 2022 could only see around $70 million. That's less than $195 million reported in fiscal 2022. However, the macro environment for the next six months is expected to be more restrictive than the same period a year ago.

Sep 01

Digital Turbine: Ignore The Pessimism And Buy This Healthy Pullback

Summary APPS has failed to gain upward momentum after its FQ1'23 earnings release. However, we view the pullback as a healthy retracement after a 70% recovery from its June lows. Digital Turbine is also facing ad spending headwinds in the near term. But, it's expected to be transitory and should subside moving forward. Digital Turbine's structural growth drivers remain relevant and intact. As a result, investors should expect a reacceleration in its growth cadence moving ahead. APPS' valuations have also been de-risked to reflect its near-term and execution headwinds. Therefore, we believe it offers investors a lower risk entry level. We reiterate our Buy rating, with a medium-term price target of $30. Thesis Digital Turbine, Inc. (APPS) stock has fallen markedly (about 26%) from its August highs, as the market denied further buying upside after its FQ1'23 earnings release in August. The company released a mixed Q2 card. While its profitability remains robust, the company sees near-term headwinds regarding ad spending on a macro level. But, none of it was surprising, given the previous earnings releases from its leading digital advertising peers. Furthermore, we believe the market also needed to digest its robust recovery from its June lows, as it gained more than 70% to its August highs. Therefore, we are confident that the pullback is a healthy retracement, allowing patient investors another opportunity to accumulate at a less aggressive entry level. We are confident that Digital Turbine's growth cadence should continue to improve through FY23/24 as the cyclical macro headwinds subside while its structural growth drivers remain intact. Notwithstanding, headwinds from China's smartphone OEMs could continue to impinge on its momentum, given the COVID lockdowns and weak sentiment on China's leading Android makers. Hence, investors should not expect a V-shaped recovery for APPS. Notwithstanding, we remain confident that its valuations have been de-risked substantially. We also maintain our thesis that APPS has staged its long-term bottom in June. Accordingly, we reiterate our Buy rating on APPS, with a revised medium-term price target ((PT)) of $30, implying a potential upside of 66%. Don't Fear APPS Transitory Growth Slowdown Management highlighted in its earnings commentary that the ad spending headwinds have also impacted it. However, it accentuated that Apple's (AAPL) App Tracking Transparency and inflation challenges didn't have a material impact on its performance. Consequently, Digital Turbine remains confident that its impact is transitory, as CEO Bill Stone articulated: We've seen a slowdown in the digital ad market as advertisers rethink their investment strategies. This has negatively impacted our recent results and near-term outlook. However, we expect this to be a temporary versus permanent dynamic. The overwhelming feedback we see in the market is that the majority of ad spenders are more in a wait-and-see mode versus a we-don't-have-money-to-spend mode. (Digital Turbine FQ1'23 earnings call) We are optimistic that the cyclical slowdown in ad spending is not structural. Similar commentary from Snap's (SNAP) and The Trade Desk's (TTD) recent earnings corroborate Digital Turbine's perspective. Therefore, we believe the critical question is whether Digital's Turbine's expanded tech stack is capable of competing to gain market share amid the current headwinds. Therefore, we are pleased that management shared more color that SingleTap remains in a growth phase amid the current environment. Management highlighted that it's on track to ramp its licensing, as it "anticipates having more than five partners live by the end of the September quarter and north of 10 by the December quarter."

Aug 31
Digital Turbine (NASDAQ:APPS) Seems To Use Debt Quite Sensibly

Digital Turbine (NASDAQ:APPS) Seems To Use Debt Quite Sensibly

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Aug 18

Digital Turbine: Sound Fundamentals Despite Short-Term Headwinds And Other Obstacles

Short-term macro headwinds and the decline in mobile posse revenue are slowing down the overall revenue growth for Digital Turbine. Despite the declining revenue growth, profitability and cash flow are on the rise. Material progress made in Single-Tap can potentially generate $180 million in annual recurring revenue. I expect a growth re-acceleration from FY24 onwards, due to revenue from cross-selling (between AdColony, Single-Tap and Fyber), Single-Tap, and mobile posse rollout. My estimates state that the company is trading at a fair value of $29.18. Editor's note: Seeking Alpha is proud to welcome Jun Hao as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » Investment Thesis My primary thesis for Digital Turbine (APPS) lies in that (1) it serves as a critical middleman between OEMs/operators and publishers, and (2) it owns the end-to-end digital supply chain from the demand-side platform ((DSP)) to an ad exchange to the supply-side platform ((SSP)) after their major acquisitions of Appreciate, AdColony, and Fyber. I believe that when successfully integrated, they can remove tons of inefficiencies in the supply chain and create multiple cross-sell opportunities to drive incremental revenue and margins. After looking at the company's most recent 1Q23 result, I believe that the fundamentals are intact as the company is still displaying strong profitability, Single-Tap is gaining traction, and the distribution footprint continues to grow. However, the slower rollout of the mobile posse and the M&A integration is something to monitor closely. Let's head into the article for a more in-depth analysis. Macro Challenges Right off the bat on the earnings call, CEO Bill Stone named 4 macro challenges. These are primarily the COVID impact which lengthens the sales cycle to onboard customers or partners, supply chain disruption for operators and OEM partners, wage increases in hiring tech talents, and recessionary concerns as advertisers are more cautious of spending, plus the COVID pandemic in China that has slowed down the progress with China OEMs, although it's only a minor headwind. With multiple headwinds going on, how have they then performed during the quarter? Company Overview Revenue APPS IR The company’s total revenue came in at $188 million, a 19% Y/Y growth. This slightly exceeded the top-end of the guidance of $187 million. In the earnings call, the management stated that they were focused on gross margin expansion which led to a revenue trade-off. With the company facing multiple headwinds and taking into consideration this is a seasonally weaker quarter in the ad industry, this was a pretty decent growth. I do believe this can be better if not for the decline in on-device solution (“ODS”) revenue, but first, let’s focus on the overall business before we dive deeper into the ODS revenue. Strong Profitability Growth On the other hand, there was substantial growth in profitability. APPS IR APPS IR APPS IR Looking at the chart above, the management has demonstrated that it could grow its gross profit (+32% Y/Y) and adjusted EBITDA (+30% Y/Y) faster than its revenue growth (+19% Y/Y) consistently in the past 5 quarters, after the acquisitions made in 4Q21. This quarter’s gross margin was 49% (up from 44% a year ago), and the adjusted EBITDA margin was 27.4% (up from 25.2% a year ago), making it the highest quarter ever in the company’s history. According to CEO Bill Stone, a portion of the margin expansion was due to one-off benefits. Incredibly, the company continues to extract strong operating leverage, and this shows that Digital Turbine is a highly profitable business. Keep in mind that this does not include the revenue from the cross-sell opportunities between Single-Tap, Fyber, and AdColony as the M&A integration is still in progress. When completed, which will take time, we should start to see incremental revenue coming in, and expect it to drive up gross and adjusted EBITDA margin. This can be referenced from the company's 4Q21 earnings call: "…we're over 10% of our revenues...to launch in the next few months some new initiatives that should help accelerate those revenue synergies and simultaneously help drive more profitable top line growth…. a few examples are consolidating our ad tech on the legacy Fyber and AdColony devices into one exchange, where demand and supply platforms such as The Trade Desk can purchase more inventory at scale. We anticipate this will generate many tens of millions of dollars of incremental revenue this fiscal year and begin next quarter….secondly, we are integrating our SingleTap capabilities into the Fyber exchange…make it more attractive for advertisers to bid on Fyber inventory, which in turn should be an overall growth driver for our app growth business..." CEO Bill Stone has been talking about revenue synergies in the past few earnings calls, and we have yet to see any incremental revenue coming in this quarter. I personally felt that there was a lack of commentary on the integrations as the CEO's response to analyst Anthony Stoss on the revenue synergies was - "we're hanging in that ballpark (10%)..." Next, let’s break down its business into 2 segments - (1) on-device solutions (previously on-device media), and (2) app growth platforms (Fyber & AdColony), to dive deeper into how each segment is doing. On-Device Solution ((ODS)) Revenue APPS IR ODS consists of 2 businesses - app media and mobile posse (content media). The ODS revenue declined by 1.5% Y/Y, and the reasons are (1) the slowdown in content media revenue due to a change in customer acquisition strategy, and (2) the focus on margin expansion which led to a revenue trade-off. Here is CEO Bill Stone on the shift in customer acquisition strategy for mobile posse: “...more than 90% of my revenues had come on prepaid. I made some material investments of really going after postpaid just because of the larger addressable market, both in terms of users as Ill as advertising dollars…now we're starting to see some much more engagement from my larger U.S. carrier partners…given some of their desires to drive increased revenue engagement from their users” Now, back to APPS’ 4Q22 result, I suspect a massive decline in mobile posse revenue since 3Q22, which caused the ODS revenue growth to decline drastically from 2Q22 (82.6% growth) to 4Q22 (25.4% growth). APPS IR For readers’ sake, let me walk you through how I came to that conclusion. I’m attempting to derive the revenue added for mobile posse in 2H22, and that is because management has not disclosed its revenue for 3Q22 and 4Q22. 1) In APPS FY22 10-K, we can find out the revenue added for app media ($150,132) and mobile posse ($38,925) from FY21 to FY22. 2) CEO Bill Stone broke down the app media and mobile posse revenue in both 1Q21 and 2Q21. Adding both quarters’ revenue will give us a 1H22 revenue for each segment - app media is $93,290, and the mobile posse is $36,615. 3) In 1Q22, CEO Bill Stone broke down the revenue growth for each segment - 81% Y/Y for app media & 150% Y/Y for mobile posse, then we can find the exact revenue using 1Q21 numbers. On 2Q22, mobile posse did $35 million in revenue. Finally, we can compute the 1H22 revenue by adding 1Q22 and 2Q22 revenue for each segment. 4) The difference between the revenue added from FY21 to FY22, and revenue added from 1H21 to 1H22 will give us 2H22’s content media revenue of $0.219 million. As you can see, there was little to no revenue added for mobile posse business. Here is the portion I find particularly strange - why did it take the management took 9 months to communicate to investors that there was a slower rollout of mobile posse when it first happened in 3Q22? This is something that I didn’t particularly like and I will appreciate more clarity from the management. Combined with the macro headwinds, I suspect that they are being conservative in their forward negative 5% Y/Y revenue growth for 2Q23. I do not think this poses a long-term threat to the business but do keep an eye out for any material progress made in the mobile posse rollout. Hopefully, there will be more clarity in upcoming quarters. According to this quarter's earnings call, they are gaining traction with Verizon (VZ) and AT&T (T). Growing Distribution Footprint APPS IR The total number of devices continues to grow strongly as Digital Turbine added 67 million new devices (from 88 million last quarter), bringing the total to 973 million devices. Despite the supply chain issues, partners are still launching more devices via Digital Turbine, and its growth momentum has not died down. The company continues to grow its market share as it becomes an increasingly critical intermediary for operators and OEMs to monetize their devices. Furthermore, CEO Bill Stone states that partners are increasingly looking for additional income streams as recessionary fear creeps in, and they are “seeing increased traction with many global operators and OEMs”. The company's US revenue-per-device (“RPD”) now stands at $5, a 20% Y/Y growth and 6% Q/Q growth ($4.70 in FY22), indicating that partners are increasing their spending. Single-Tap APPS IR What is incredibly exciting is that Single-Tap is rolling out to 5 partners by 2Q23 and 10 by 3Q22, and they will be a mix of tier 1 and 2 partners. So….Meta (META) incoming? Finger-cross. Quick math tells us that: $1.5 million monthly revenue * 10 partners = $15 million of total monthly revenue $15 million * 12 = $180 million in annual revenue. This is equivalent to the total net revenue in 1Q23. Aside from being a huge driver of revenue, it also helps to drive margins higher. However, it takes time for partners to ramp up their spending, so these are not immediate revenue. Moreover, they are launching Single-Tap on Fyber exchange as well as leveraging AdColony’s relationship with its publishers, which they have been discussing in the past few earnings calls. I am seeing things materializing for Single-Tap and this is undoubtedly one of the most exciting segments of the company. App Growth Platform ((AGP)) APPS IR Turning over to AGP, its revenue grew 83% Y/Y, as they account for the full operations of Fyber & AdColony. On a quarterly basis, they are growing at 4% Q/Q. The reason for the growth is even though spending has slowed, they are seeing a higher volume of impressions. Here is another critical commentary from CEO Bill Stone on how advertisers are thinking about spending during a recessionary period: “…I've seen a slowdown in the digital ad market as advertisers rethink their investment strategies. This has negatively impacted my recent results and near-term outlook. However, I expect this to be a temporary versus permanent dynamic…majority of ad spenders are more in a wait-and-see mode versus a I-don't-have-money-to-spend mode.” And then Jeff Green, the CEO of The Trade Desk (TTD) said this during the 2Q22 earnings call: “In the first half of the year, marketers shifted to decision data-driven advertising on the open Internet more rapidly than ever.” While investors may argue that ad spendings are first to be cut during a recession, it seems that advertisers are still spending money on digital ads. Referencing from The Trade Desk, I do expect 2H23 to be seasonally better quarters so revenue is likely to be higher. Valuation APPS IR I am using the discounted FCF model for my valuation. First, I am implying a 10% risk-free rate (“RFR”), and this is to benchmark against the S&P 500 average annual return. In other words, I am expecting a minimal return of 10% over my course of investment. Next, in my revenue estimations, I am assuming a 5% forward 1-year revenue. This is taking into account the macro headwinds, slowdown in ODS revenue, and the single-tap revenue coming in from 2H23. Then, I expect a revenue re-acceleration from the second year onwards, with a reasonable growth of 15% CAGR till the end of year 5, with the assumption that more partners are using Single-Tap, M&A integrations are progressing further & therefore generating revenue from cross-selling opportunities, and mobile posse will roll out. Not forgetting, these are margin drivers too. My 16% FCF margin is based on the current non-GAAP FCF margin they are achieving right now, and I foresee increasing over time to 20%. Applying the 10% RFR & a 5% shares dilution gives us the discounted FCF per share. Then, I am implying a 20x FCF multiple, derived through comparing to peers like The Trade Desk & PubMatic.

Shareholder Returns

APPSUS SoftwareUS Market
7D-3.4%-1.3%-2.5%
1Y-79.7%-33.2%-23.2%

Return vs Industry: APPS underperformed the US Software industry which returned -33.2% over the past year.

Return vs Market: APPS underperformed the US Market which returned -23.2% over the past year.

Price Volatility

Is APPS's price volatile compared to industry and market?
APPS volatility
APPS Average Weekly Movement10.7%
Software Industry Average Movement8.9%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: APPS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: APPS's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a844Bill Stonehttps://www.digitalturbine.com

Digital Turbine, Inc., through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs). The company operates through three segments: On Device Media, In App Media – AdColony, and In App Media – Fyber. Its application media platform delivers mobile applications to various publishers, carriers, OEMs, and devices; and content media platform offers news, weather, sports, and other content, as well as programmatic advertising, and sponsored and editorial content media.

Digital Turbine Fundamentals Summary

How do Digital Turbine's earnings and revenue compare to its market cap?
APPS fundamental statistics
Market CapUS$1.42b
Earnings (TTM)US$36.18m
Revenue (TTM)US$778.15m

39.4x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
APPS income statement (TTM)
RevenueUS$778.15m
Cost of RevenueUS$408.49m
Gross ProfitUS$369.66m
Other ExpensesUS$333.48m
EarningsUS$36.18m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.37
Gross Margin47.50%
Net Profit Margin4.65%
Debt/Equity Ratio81.8%

How did APPS perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is APPS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for APPS?

Other financial metrics that can be useful for relative valuation.

APPS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.3x
Enterprise Value/EBITDA9.9x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does APPS's PE Ratio compare to its peers?

APPS PE Ratio vs Peers
The above table shows the PE ratio for APPS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.5x
IDCC InterDigital
13.8x16.7%US$1.2b
SPNS Sapiens International
20x11.8%US$1.1b
MGIC Magic Software Enterprises
27.7x33.3%US$763.9m
EBIX Ebix
8.4x27.4%US$586.3m
APPS Digital Turbine
39.4x39.8%US$1.4b

Price-To-Earnings vs Peers: APPS is expensive based on its Price-To-Earnings Ratio (39.4x) compared to the peer average (17.5x).


Price to Earnings Ratio vs Industry

How does APPS's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Earnings vs Industry: APPS is expensive based on its Price-To-Earnings Ratio (39.4x) compared to the US Software industry average (39.2x)


Price to Earnings Ratio vs Fair Ratio

What is APPS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

APPS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39.4x
Fair PE Ratio43.8x

Price-To-Earnings vs Fair Ratio: APPS is good value based on its Price-To-Earnings Ratio (39.4x) compared to the estimated Fair Price-To-Earnings Ratio (43.8x).


Share Price vs Fair Value

What is the Fair Price of APPS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: APPS ($14.41) is trading below our estimate of fair value ($98.23)

Significantly Below Fair Value: APPS is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Digital Turbine forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


39.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: APPS's forecast earnings growth (39.8% per year) is above the savings rate (1.9%).

Earnings vs Market: APPS's earnings (39.8% per year) are forecast to grow faster than the US market (14.8% per year).

High Growth Earnings: APPS's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: APPS's revenue (19.9% per year) is forecast to grow faster than the US market (7.7% per year).

High Growth Revenue: APPS's revenue (19.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: APPS's Return on Equity is forecast to be high in 3 years time (25.6%)


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Past Performance

How has Digital Turbine performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


65.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: APPS has a large one-off loss of $62.0M impacting its June 30 2022 financial results.

Growing Profit Margin: APPS's current net profit margins (4.6%) are lower than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: APPS has become profitable over the past 5 years, growing earnings by 65.9% per year.

Accelerating Growth: APPS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: APPS had negative earnings growth (-38.9%) over the past year, making it difficult to compare to the Software industry average (13.4%).


Return on Equity

High ROE: APPS's Return on Equity (6.3%) is considered low.


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Financial Health

How is Digital Turbine's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: APPS's short term assets ($372.8M) exceed its short term liabilities ($316.0M).

Long Term Liabilities: APPS's short term assets ($372.8M) do not cover its long term liabilities ($508.0M).


Debt to Equity History and Analysis

Debt Level: APPS's net debt to equity ratio (66.4%) is considered high.

Reducing Debt: APPS's debt to equity ratio has increased from 20.3% to 81.8% over the past 5 years.

Debt Coverage: APPS's debt is well covered by operating cash flow (31.8%).

Interest Coverage: APPS's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet


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Dividend

What is Digital Turbine current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Digital Turbine Dividend Yield vs Market
How does Digital Turbine dividend yield compare to the market?
SegmentDividend Yield
Company (Digital Turbine)n/a
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Software)1.1%
Analyst forecast in 3 Years (Digital Turbine)0%

Notable Dividend: Unable to evaluate APPS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate APPS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if APPS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if APPS's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as APPS has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Bill Stone (54 yo)

7.67yrs

Tenure

US$7,748,317

Compensation

Mr. William Gordon Stone, III, also known as Bill, has been the Chief Executive Officer of Digital Turbine, Inc. (known as Mandalay Digital Group) since October 2014. Mr. Stone served as Chief Executive Of...


CEO Compensation Analysis

Bill Stone's Compensation vs Digital Turbine Earnings
How has Bill Stone's remuneration changed compared to Digital Turbine's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$36m

Mar 31 2022US$8mUS$575k

US$36m

Dec 31 2021n/an/a

US$46m

Sep 30 2021n/an/a

US$53m

Jun 30 2021n/an/a

US$59m

Mar 31 2021US$2mUS$550k

US$55m

Dec 31 2020n/an/a

US$39m

Sep 30 2020n/an/a

US$28m

Jun 30 2020n/an/a

US$26m

Mar 31 2020US$1mUS$550k

US$14m

Dec 31 2019n/an/a

-US$7m

Sep 30 2019n/an/a

-US$11m

Jun 30 2019n/an/a

-US$8m

Mar 31 2019US$981kUS$500k

-US$4m

Dec 31 2018n/an/a

-US$2m

Sep 30 2018n/an/a

-US$5m

Jun 30 2018n/an/a

-US$14m

Mar 31 2018US$967kUS$500k

-US$20m

Dec 31 2017n/an/a

-US$17m

Sep 30 2017n/an/a

-US$15m

Jun 30 2017n/an/a

-US$16m

Mar 31 2017US$808kUS$500k

-US$19m

Dec 31 2016n/an/a

-US$23m

Sep 30 2016n/an/a

-US$26m

Jun 30 2016n/an/a

-US$27m

Mar 31 2016US$716kUS$500k

-US$24m

Compensation vs Market: Bill's total compensation ($USD7.75M) is above average for companies of similar size in the US market ($USD5.58M).

Compensation vs Earnings: Bill's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: APPS's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: APPS's board of directors are considered experienced (9.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NasdaqCM:APPS Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
14 Mar 22BuyUS$474,900Robert DeutschmanIndividual15,000US$31.66
07 Mar 22BuyUS$36,790Michelle SterlingIndividual1,000US$36.79
02 Mar 22SellUS$950,102William StoneIndividual20,271US$46.87
01 Dec 21BuyUS$154,860Robert DeutschmanIndividual3,000US$51.62
24 Nov 21BuyUS$56,980Michelle SterlingIndividual1,000US$56.98

Ownership Breakdown

What is the ownership structure of APPS?
Owner TypeNumber of SharesOwnership Percentage
Private Companies00%
Individual Insiders3,768,4553.8%
VC/PE Firms6,007,6246.1%
General Public20,950,08921.2%
Institutions68,117,06868.9%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Top Shareholders

Top 25 shareholders own 57.2% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
14.47%
BlackRock, Inc.
14,305,958$206.1m37.2%0.01%
10.42%
The Vanguard Group, Inc.
10,301,870$148.4m5.06%no data
6.08%
Tennor Holding B.V.
6,007,624$86.6m4.35%100%
3.19%
Granahan Investment Management, LLC
3,149,943$45.4m26.42%1.51%
3.05%
State Street Global Advisors, Inc.
3,017,545$43.5m3.4%no data
1.62%
William Stone
1,606,058$23.1m5.17%no data
1.62%
Rice Hall James & Associates, LLC
1,605,790$23.1m226.75%1.2%
1.61%
Geode Capital Management, LLC
1,594,259$23.0m-1.47%no data
1.52%
Capital Research and Management Company
1,500,000$21.6m19.55%no data
1.42%
Greenhaven Road Investment Management, LP
1,400,000$20.2m0%13.22%
1.18%
Morgan Stanley, Investment Banking and Brokerage Investments
1,170,566$16.9m85.43%no data
1.11%
Voloridge Investment Management, LLC
1,097,693$15.8m1902.94%0.09%
1.05%
Jackson National Asset Management, LLC
1,042,691$15.0m22.43%0.31%
0.97%
Northern Trust Global Investments
953,935$13.7m-20.49%no data
0.93%
BNY Mellon Asset Management
914,753$13.2m1.64%no data
0.86%
Marshall Wace LLP
845,401$12.2m3492.56%0.03%
0.85%
Two Sigma Investments, LP
844,347$12.2m0%0.05%
0.76%
T. Rowe Price Group, Inc.
748,446$10.8m-11.69%no data
0.74%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
736,369$10.6m10.95%no data
0.68%
Charles Schwab Investment Management, Inc.
667,977$9.6m-1.75%no data
0.63%
D. E. Shaw & Co., L.P.
620,890$8.9m2860%0.02%
0.62%
Elemental Capital Partners LLC
616,144$8.9m0.67%12.2%
0.62%
Citadel Advisors LLC
615,572$8.9m100.63%0.01%
0.61%
Robert Deutschman
602,285$8.7m2.29%no data
0.58%
Wellington Management Group LLP
574,668$8.3m-89.36%no data

Company Information

Digital Turbine, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Digital Turbine, Inc.
  • Ticker: APPS
  • Exchange: NasdaqCM
  • Founded: NaN
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$1.424b
  • Shares outstanding: 98.84m
  • Website: https://www.digitalturbine.com

Number of Employees


Location

  • Digital Turbine, Inc.
  • 110 San Antonio Street
  • Suite 160
  • Austin
  • Texas
  • 78701
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APPSNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJun 2006
4MDDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2006
0A6ALSE (London Stock Exchange)YesCommon StockGBUSDJun 2006

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/01 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.