Digital Turbine stock crashes 15% on weaker Q4 results and disappointing 2024 guidance

Digital Turbine (NASDAQ: APPS) shares crashed over 17% in premarket trading Thursday after the company reported weaker-than-expected fiscal Q3 results and released a downbeat full-year revenue guidance.

In FQ3, its earnings per share (EPS) came in at $0.15, falling short of the consensus estimate of $0.17. The company's revenue was $142.63 million, also below the projected $146.21 million.

Digital Turbine’s adjusted EBITDA was reported at $25.4 million, compared to analysts' expectations of $28.5 million.

Looking ahead to the full fiscal 2024, the mobile growth platform expects adjusted EPS to be in the range of $0.50 to $0.54. This projection falls below the analyst consensus of $0.61.

Revenue is projected to land between $547 million and $553 million, which is short of the consensus forecast of $572.5 million.

The forecast for non-GAAP adjusted EBITDA is set between $90 million and $94 million, missing the $108.3 million estimated by analysts.

"Weaker U.S. device upgrade rates and temporary platform consolidation factors represent near-term headwinds, but in no way impact our broader outlook on the tremendous market opportunity,” the company said in a statement.

Citing “low revenue visibility and tepid growth outlook in the near term,” BofA analysts Omar Dessouky and Artur Chu “see limited catalysts to drive a rally in the next 12 months.”

“We see valuation support at 7.5x FY25 EBITDA (after-market), which is significantly below peers Unity & AppLovin, likely limiting downside. We reiterate our Neutral rating,” they added.

By Vahid Karaahmetovic

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