What happened

Shares of mobile communication software specialist Digital Turbine (NASDAQ:APPS) roared out of the gate Wednesday, soaring 24% higher in midday trading. The company had reported earnings that were in line with analyst expectations after the market closed the day before.

So what

Digital Turbine said fourth-quarter revenue jumped 45% to $39.4 million, well ahead of the $33.2 million to $34.5 million management had guided toward. Earnings of $0.05 per share were in line with Wall Street's expectations.

Mobile phones displaying various apps.

Image source: Digital Turbine.

Now what

Verizon (NYSE:VZ) and AT&T (NYSE:T) account for more than 67% of Digital Turbine's revenue, though that's down from more than 85% last year. America Movil (NYSE:AMX) represents another 11% of Digital Turbine's revenue.

Digital Turbine serves as a platform for those wireless carriers to monetize their mobile content by introducing product features aimed at improving conversion and engagement on mobile ads. This actually caused it to generate less revenue than it otherwise might have, because the COVID-19 pandemic undermined advertising demand.

That could continue to play out in the current quarter, but the company recently acquired Mobile Posse, a mobile content discovery and advertising platform. It also worked on expanding beyond the two U.S. wireless carriers for business.

Revenue from international partners, including America Movil and Samsung, grew 80% in the quarter and now represents 20% of its application business revenue, compared to 9% last year.

Digital Turbine was one of the best-performing tech stocks in 2019.