Why Digital Turbine Stock Is Spiraling Lower Today

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.