APPS stock moved higher on February 8, 2022, after the company reported impressive EPS and revenue beats.
Digital Turbine Reports Fiscal 2022 Third Quarter Financial Results
Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal third quarter ended December 31, 2021. Digital Turbine reported Q3 non-GAAP EPS of 49c versus the consensus estimate of 43c. The company reported Q3 revenue of $375.5M versus the consensus estimate of $353.27M.
“Very few companies can walk and chew gum at the same time,” said Bill Stone, CEO. “We made material progress on our integration strategy in the December quarter, while simultaneously delivering record financial results. Many companies experience difficulties in the present with their execution, because they are overly focused on building the future, or vice versa. I’m proud of our team’s hustle and ability to do both. Integration for the future and execution in the present are becoming core competencies of Digital Turbine.”
“Top-line growth of 324% and 38%, on an as-reported basis and pro forma basis, respectively, is certainly a great result, but I am even more encouraged by the continued operating leverage exhibited by the business model. Non-GAAP adjusted EBITDA of more than $57 million during the December quarter increased by 153% on a year-over-year basis, and Non-GAAP adjusted EPS of $0.49 during the December quarter increased by 133% on a year-over-year basis.”
Mr. Stone concluded, “Calendar 2021 was a pivotal year for Digital Turbine, during which we strategically re-positioned the Company to leverage its inherent on-device competitive advantages to more effectively capitalize on a significantly expanded market opportunity in calendar 2022 and beyond. We are already seeing both revenue and cost synergies from our acquisitions bearing fruit and it is early days. Our strategy is winning in the marketplace. I am grateful for the hard work and shared dedication exhibited by all of Digital Turbine’s employees, O&O partners and platform advertisers.”
Digital Turbine’s value proposition endorsed in Google deal, says Roth Capital
On December 28, 2021, after Digital Turbine (APPS) announced a strategic partnership with Google (GOOGL) that expands on the companies’ existing ten-year relationship, Roth Capital analyst Darren Aftahi said he believes “the biggest takeaway” in the release about the news was Google’s endorsement of Digital Turbine’s value proposition. The analyst also notes that this agreement marks the fourth relationship – in addition to deals with Samsung (SSNLF), TikTok, and Telefonica (TEF) – in which Digital Turbine has “further embedded itself with key strategic growth partners for greater global scale.” Aftahi has a Buy rating and $90 price target on Digital Turbine shares.
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📉 APPS Stock Technical Analysis
The rising large players volume is bullish. Both the long and short-term trends are negative. APPS is an average performer in the Software industry, it outperforms 48% of 360 stocks in the same industry. APPS is currently trading in the lower part of its 52-week range. The S&P500 Index however is trading in the upper part of its 52-week range, so APPS is lagging the market.
There is a support zone ranging from 40.80 to 40.83. This zone is formed by a combination of multiple trend lines in multiple time frames. There is support at 39.68 from a horizontal line in the weekly time frame.
There is a resistance zone ranging from 45.99 to 45.99. This zone is formed by a combination of multiple trend lines in multiple time frames. There is also resistance at 88.08 from a horizontal line in the weekly time frame.
The technical rating of APPS is bad and it also does not present a quality setup at the moment. APPS stock has a Setup Rating of 3 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when APPS stock consolidates and has a Setup Rating of 8 or higher.