What happened

Shares of Digital Turbine (NASDAQ:APPS) rose 74.3% in August 2020, according to data from S&P Global Market Intelligence. The market-beating surge was powered by a fantastic first-quarter earnings report.

So what

Digital Turbine's first-quarter sales nearly doubled year over year, rising 93% to $59 million. The mobile-app marketing expert's adjusted earnings increased from $0.05 to $0.13 per share. Your average Wall Street analyst would have settled for earnings near $0.09 per share on revenue in the neighborhood of $49 million. The company also issued second-quarter guidance well above the current Street projections. The stock jumped 31% higher the next day and continued to climb another 32% over the next two weeks.

A rocket takes off from a smartphone.

Image source: Getty Images.

Now what

We're looking at a lively growth stock here, thanks to a simultaneous rise in several positive business trends. The company is increasing its reach across the smartphone market and expanding into TV streaming platforms. At the same time, Digital Turbine's revenue per device rose 25% year over year. Looking ahead, management expects to land app-discovery deals with the three largest American wireless networks. CEO Bill Stone is excited about the potential for long-term growth under these conditions.

"We are also starting to see new device growth, especially here in the U.S., rebound in growth from earlier in the year," Stone said in the earnings call. "The dynamic that our sequential device penetration grew to over 43 million devices in the quarter, while the broader smartphone market declined by approximately 20%, showcases how much room we have as a penetration story against the broader opportunity."

Digital Turbine's share price has more than tripled in 2020 in anticipation of those upcoming wireless network deals.