APP GROWTH PLATFORM - Co said 56% yr/yr growth in App Growth Platform segment drove results, citing brand business and DT Exchange
AI OPTIMIZATION - Co attributed improved performance to leveraging AI partnerships and tools to optimize data and deliver better results for partners and advertisers
Q1 results beat estimates
Mobile advertising platform's fiscal Q1 revenue rose 27% yr/yr, beating analyst expectations
Fiscal Q1 adjusted EBITDA rose 69% yr/yr, beating analyst expectations
Company attributes growth to App Growth Platform and AI-driven enhancements
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$166 mln
$149.98 mln (3 Analysts)
Q1 Adjusted EPS
Beat
$0.19
$0.14 (2 Analysts)
Q1 Loss Per Share
$0.03
Q1 Adjusted Net Income
Beat
$24.10 mln
$17.42 mln (2 Analysts)
Q1 Adjusted EBITDA
Beat
$42.50 mln
$32.70 mln (3 Analysts)
Q1 Adjusted Free Cash Flow
$11.30 mln
Outlook and analyst coverage
Company raises fiscal 2027 revenue outlook to $650 mln-$670 mln
Digital Turbine sees fiscal 2027 non-GAAP adjusted EBITDA of $145 mln-$155 mln
Company says AI partnerships expected to support growth and attract new platform partners
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell". The average consensus recommendation for the software peer group is "buy". Wall Street's median 12-month price target for Digital Turbine, Inc. is $10.75, about 19.4% above its August 3 closing price of $9.00. The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 6 three months ago.
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