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Investing.com -- Shares of Digital Turbine (NASDAQ: NASDAQ:APPS) climbed 20% following the company’s announcement of raised full-year revenue guidance and better-than-expected third quarter earnings.
The Austin-based company reported third quarter earnings per share (EPS) of $0.13, significantly surpassing the analyst estimate of $0.01. Revenue for the quarter was $134.6 million, slightly above the consensus estimate of $134.46 million. Notably, this quarter’s revenue marks a 13% increase from the previous quarter, although it reflects a 6% decline from the same quarter last year.
Digital Turbine also provided an optimistic outlook for fiscal year 2025, projecting revenue between $485-490 million, which is above the consensus estimate of $477 million. This forecast suggests a strong year-over-year revenue growth for the March quarter, with even more substantial growth expected in EBITDA.
The company’s CEO, Bill Stone, attributed the positive financial results to improved execution and the implementation of profit-optimization measures, which have led to better operating performance and free cash flow. Stone highlighted strong demand for the company’s On-Device product offerings and growth in spending from leading advertising agencies and brand advertisers on Digital Turbine’s App Growth Platform as key revenue drivers.
Despite the positive revenue and earnings figures, Digital Turbine reported a GAAP net loss of $23.1 million, or ($0.22) per share for the third quarter, which is a greater loss compared to the $14.1 million, or ($0.14) per share, reported for the same period last year. However, non-GAAP adjusted net income was $13.7 million, or $0.13 per share, down slightly from $15.6 million, or $0.15 per share, year-over-year.
The company’s adjusted EBITDA for the quarter was $22.0 million, representing a notable 44% increase from the second quarter, but a 13% decrease compared to the third quarter of the previous fiscal year.
The company expects non-GAAP adjusted EBITDA to be between $69 million and $71 million for fiscal year 2025.
Investors have responded positively to the company’s updated guidance and earnings beat, reflecting confidence in Digital Turbine’s growth trajectory and strategic initiatives.
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