Digital Turbine Q1 Results Exceed Estimates, Sees Continued Demand In H2 FY25

Digital Turbine, Inc. APPS shares are trading higher after the company reported better-than-expected first-quarter FY25 financial results.

Revenue declined 19% Y/Y to $118.0 million, beating the consensus of $116.03 million.

Revenue from On Device Solutions was $80.7 million, and from the App Growth Platform was $38.4 million, before intercompany eliminations.

On Device Solutions revenue grew 3% Q/Q, driven by new international devices and higher average revenue per device.

App Growth Platform revenue rose 11% Q/Q, fueled by increased demand for the high-performance Brand and Exchange offerings.

Adjusted EBITDA fell 46% Y/Y to $14.5 million in the quarter. Top-line growth and disciplined expenses improved the profit margins, with a 135-basis point sequential increase in EBITDA margin for the quarter.

Adjusted EPS stood at $0.07, surpassing the consensus of $0.04.

Outlook: Digital Turbine reaffirmed its FY 2025 revenue guidance of $540 million-$560 million (vs. consensus of $545.5 million) and adjusted EBITDA guidance of $85 million-$95 million.

CEO Bill Stone said, “We expect this top-line growth and margin expansion to continue in the second half of the calendar year, as we continue to see growing interest in, and real demand for, our uniquely-designed platform features amid the global market shift favoring more profitable alternative direct app distribution models.” 

Price Action: APPS shares are up 19.7% at $2.130 premarket at the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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