Please ensure Javascript is enabled for purposes of website accessibility

Why Digital Turbine Stock Jumped Tuesday

By Daniel Sparks - Jun 4, 2019 at 12:17PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Fiscal 2019 was "a breakout year," management said in its fiscal fourth-quarter update.

What happened

Shares of Digital Turbine (APPS 3.33%), a company that specializes in getting mobile apps into the hands of more users with more effective monetization, jumped on Tuesday. Shares rose as much as 16.8% but were up 13.3% as of 11:45 a.m. EDT.

The stock's gain follows Digital Turbine's better-than-expected fourth-quarter results for fiscal 2019.

A chart showing a stock price moving higher

Image source: Getty Images.

So what

Digital Turbine reported fourth-quarter revenue of $27.2 million, up 30% year over year. Non-GAAP earnings per share for the period were $0.03. Both metrics exceeded analysts' average forecasts for revenue and non-GAAP earnings per share of $26.6 million and $0.02, respectively. 

Revenue for the full year increased 39% year over year to $103.6 million, driven primarily by "significantly higher revenue-per-device with our large U.S.-based carrier partners, as well as incremental contributions from international partners and other new partners that launched on the platform during the year," explained management in the company's fiscal fourth-quarter and full-year earnings release.

Now what

Looking ahead, the company will focus on scaling its platform, explained Digital Turbine CEO Bill Stone in the fiscal fourth-quarter update.

To do this, the company is recruiting international carriers and original equipment manufacturers to expand its global addressable market. In addition, Digital Turbine is bringing to market product features aimed to improve conversion and engagement on mobile ads while enriching the total user experience.

"We believe that by continuing to deliver attractive returns for our many platform constituents, we can expect to deliver attractive returns for our investors," the company said.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Digital Turbine, Inc. Stock Quote
Digital Turbine, Inc.
$24.49 (3.33%) $0.79

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.