Content discovery technologist Digital Turbine (NASDAQ:APPS) posted strong third-quarter results on Wednesday evening, smashing Wall Street's targets across the board. Shares soared 14.8% at the end of the after-hours trading session.

By the numbers

Digital Turbine's third-quarter revenue rose 146% year over year, landing at $88.6 million. Adjusted earnings jumped from $0.05 to $0.21 per diluted share. Your average Wall Street analyst would have settled for earnings of roughly $0.17 per share on sales near $75.9 million.

Looking ahead to the fourth quarter, management's guidance pointed to fourth-quarter revenue of roughly $80.5 million and EPS in the neighborhood of $0.26. The current Street consensus for that reporting period stops at $74.6 million and $0.17, respectively.

A young woman gasps at her smartphone in wide-eyed astonishment.

Image source: Getty Images.

Growth prospects

The company's recently introduced content delivery platform saw roughly 10 million daily active users in the third quarter. CEO Bill Stone estimates that the addressable market for this service is "many hundreds of millions of devices with our current software," leaving room for enormous growth opportunities.

International sales are expanding faster than the domestic top line, and Digital Turbine is also exploring a wider range of target devices beyond the current focus on smartphones. For example, several hardware partners are preparing smart TVs with Digital Turbine's content presentation solutions for launches later this year.

Digital Turbine's stock has now gained 1,040% in 52 weeks, including the after-hours jump. Investors are paying a steep premium for the company's turbo-boosted revenue growth, which is a common theme among high-growth stocks like this one.

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