Digital Turbine Inc APPS shares are trading down Thursday after the company reported financial results that came in below analyst estimates, driven by macro headwinds.
What Happened: Digital Turbine reported fiscal third-quarter revenue of $162.31 million, representing a 25% decrease year-over-year. The company's top-line results missed average analyst estimates of $185.52 million, according to Benzinga Pro.
Digital Turbine reported third-quarter adjusted earnings of 29 cents per share, missing estimates of 37 cents per share.
"While nothing has changed regarding our long-term view of the digital media industry or our strategic positioning within the industry, macro headwinds are impacting our near-term results," said Bill Stone, CEO of Digital Turbine.
"We expect current macro headwinds to continue into the first half of the calendar year, but our high-level strategic vision remains intact, as advertising spending tends to be among the first items to be negatively impacted at the onset of a cyclical downturn, but is typically also among the first items to rebound."
Digital Turbine sees full-year 2023 revenue in a range of $660 million to $670 million versus estimates of $722.49 million. The company expects full-year adjusted earnings to be between $1.15 and $1.20 per share versus estimates of $1.41 per share.
Following the company's quarterly results, Oppenheimer analyst Timothy Horan downgraded Digital Turbine from an Outperform rating to a Perform rating.
APPS Price Action: Digital Turbine has a 52-week high of $55.68 and a 52-week low of $10.65.
The stock was down 17% at $13.45 at the time of writing, according to Benzinga Pro.
Photo: courtesy of Digital Turbine.
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