Shares of Digital Turbine (APPS 2.06%) have dropped today, down by 15% as of 1 p.m. EDT, after the company reported fiscal second-quarter earnings. The results topped Wall Street's expectations, but tech stocks have been selling off today after the largest companies announced disappointing financial results yesterday.
Revenue in the fiscal second quarter more than doubled to $70.9 million, ahead of the consensus estimate of $60.5 million. Much of that growth was attributable to Digital Turbine's acquisition of Mobile Posse earlier this year, which is now the backbone of the Content Media segment. That all resulted in adjusted net income of $14.5 million, or $0.15 per share, also beating the $0.11 per share in adjusted profits that analysts were modeling for.
"Our fiscal second quarter results exceeded our expectations as we built upon the breakout momentum from our fiscal first quarter," CEO Bill Stone said in a statement. "We set all-time revenue, profitability, and free cash flow records, and we accelerated top-line growth and profitability amid powerful secular tailwinds that are driving strong demand for both our Application Media and Content Media service offerings."
Digital Turbine's guidance also exceeded expectations. Revenue in the fiscal third quarter is expected to be $72 million to $75 million, compared to the consensus estimate of $64.6 million. That should result in adjusted earnings per share of $0.15 to $0.16, above the Street's current forecast of $0.12 per share. Adjusted EBITDA is expected to be $17 million to $18 million.