Digital Turbine (NASDAQ:APPS) has stayed under the radar for most investors. That hasn't stopped the app discovery engine from producing epic gains, with the stock up more than 1,000% over the past year alone. The company's results earlier this month confirmed Digital Turbine's strong positioning at the intersection of app economy and the digital transformation.

On this clip from Motley Fool Live recorded on Feb. 8, "The Wrap" host Jason Hall and Fool analyst Auri Hughes discuss the recent results and why Digital Turbine has a long runway ahead.

Jason Hall: Auri, we talked about Digital Turbine reporting earnings here. Tell us what they said. What you think about it? What to expect going forward?

Auri Hughes: Yeah. Here's a quick synopsis of the company, Digital Turbine simplifies content discovery and delivers relevant content directly to consumer devices. The company's on-demand media platform powers frictionless app and content discovery. I think that's just a long-winded way of saying, we put these apps and things and advertising on the phone, so they can be discovered.

I like this company because I think it's completely relevant. I tweeted out today, "I think cellphone screens are the most valuable real estate in the world right now." Because I think we're all attached to our phones in some manner, it's simple to understand. We're going to be using our phones going forward. I'm not seeing that change the way we access these apps and sites and things we love, are on the phone, as well as the computer.

Crazy quarter. Third-quarter revenues grew to $88 million, which is a 146% increase. On top of that, they got operating leverage. They reported $0.15 of net income per share, growing from $0.04 in the last quarter of last year. The company cites the amount of time and money spent by consumers within applications continues to rise, as consumers increasingly grow accustomed to consuming more content and spending greater share of their wallets using the applications on their mobile devices.

Businesses everywhere have reacted accordingly by placing increased emphasis on the functionality, and monetization of potential of their application-based storefronts. The powerful, secular tailwinds have been driving, we believe will continue to drive significantly greater demand for our unique platform offerings.

Essentially, cellphones are important, it's good real estate. If you want exposure to your apps, this is where they're going. Customers are going to Digital Turbine to get this exposure. I see this continuing, it's a strong tailwind. If we just think about the businesses that became stronger or more relevant due to COVID, this is one of them, along with e-commerce, video games. This is exposure to your cellphone and getting that real estate, so you can see apps that could potentially be discovered. I think there's a lot of tailwinds here and just a sign of the times with this quarter.

Jason Hall: Great. All right. What's the big long-term here? Where is this company going to fit in the ecosystem?

Auri Hughes: I feel that more people will want to get their apps on devices to help be discovered. I think it becomes more relevant going forward because this is a company that fits into the digital transformation. Then they're sharing those profits with their partners. It's a win-win for the people that are using them to get that exposure on a cellphone. I like what their end market here, and I think it has huge tailwinds. It's a pretty small company. It has some room to grow.

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