Investors are digesting recent earnings reported by Digital Turbine (APPS -1.91%). Revenue in the quarter grew 324% year over year to $375.5 million on an as-reported basis, and EBITDA jumped 153% to $57 million. The majority of the numbers posted were staggering, but investors initially had concerns after hours due to margin compression. Non-GAAP gross profit reported a drop from 43% to 28%. Is this a longer-term concern for investors, or is it simply a result from recent acquisitions?
Digital Turbine is a digital advertising company that delivers end-to-end products and solutions for mobile operators, original equipment manufacturers, and third parties to enable the monetization of mobile content. The company historically focused on preinstalled apps on Android devices. However, several recent acquisitions have created an interesting digital advertising powerhouse. This acquisition strategy has significantly increased the company's total addressable market by adding in-app monetization, programmatic ads, branded videos, SingleTap downloads, and more.
If you would like more information on Digital Turbine stock, please see my previous deep-dive coverage on the stock and the digital advertising or "adtech" space here.
The below video is a post-earnings update on Digital Turbine. The video provides deep-dive coverage on earnings, including bullish and bearish items to consider. Additionally, opinions are provided on the stock price and the long-term prospects of the business. Please watch and don't forget to subscribe to the channel.
*Stock prices used in the below video were during the trading day of Feb. 9, 2022. The video was published on Feb. 9, 2022.