Unique Offerings
Digital Turbine stands out in the mobile technology space with its unique offerings, serving a wide range of clients including telecom carriers like Verizon (VZ) and AT&T (T) and streaming service providers like Netflix (NFLX). The company has witnessed consistent growth in the number of mobile devices that use its technology and revenue per device – key metrics that indicate the health of the business.
While the growth in device activation was almost flat in the U.S this year, the performance in the international market has been encouraging, reflecting the strategic overseas partnerships with market leaders like Nokia and Xiaomi.
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“We continue to see the benefits of global scale, where we see partners spending on more geographies and more devices outside their home geography, whether that’s for example, Chinese companies like Alibaba, Tencent, and ByteDance spending in Latin America and Europe, and the US, or European companies and US companies such as Pinterest, Snap, Uber, McDonald’s, King, Walmart, just to name a few, all spending with us outside of their respective home geographies,” said Digital Turbine’s chief executive officer Bill Stone while talking to analysts at the second-quarter earnings conference call.
Diversification
The widespread digital adoption and growing advertiser demand bode well for the company. Of late, the management has been focused on diversifying the business – in all the key areas including partnership, business model, products, and geographies – and leveraging the extensive distribution footprint across the world. Going forward, the company’s financial performance is expected to benefit from effective capital allocation and cost management initiates. Mobile Posse, the mobile content discovery platform that was acquired earlier this year, will continue to be a key revenue driver.
Blockbuster Q2
In the second quarter, revenues more than doubled to about $71 million and beat the Street view, with both the business segments registering double-digit growth. Consequently, adjusted earnings tripled to $0.15 per share, exceeding expectations.
Read management/analysts’ comments on earnings reports
The company’s stock surged to a record high on Monday, after staying on the growth path in the past several months. The value increased from single digits in the early days of the year to about $45 this week. In the last month alone, the stock gained about 57% and outperformed the sector and the broad market.