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What's in Store for Digital Turbine (APPS) in Q1 Earnings?

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Digital Turbine APPS is set to release first-quarter fiscal 2022 results on Aug 9.

The Zacks Consensus Estimate for revenues is currently pegged at $190.06 million, indicating 222.1% growth from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for earnings has remained steady at 31 cents per share over the past 30 days. The bottom-line estimate suggests a surge of 138.4% from the figure reported in the year-ago quarter.

The company delivered a trailing four-quarter earnings surprise of 31.4%, on average.

Let’s see how things have shaped up prior to this announcement.

Digital Turbine, Inc. Price and EPS Surprise

Digital Turbine, Inc. Price and EPS Surprise
Digital Turbine, Inc. Price and EPS Surprise

Digital Turbine, Inc. price-eps-surprise | Digital Turbine, Inc. Quote

Factors to Consider

Digital Turbine’s fiscal first-quarter performance is expected to have benefited from steady demand for its cloud-based mobile software offerings as enterprises continued the shift from on-premise to cloud environments fueled by coronavirus-induced work-from-home wave.

Additionally, strength in the company’s mobile device management platform, Ignite, is expected to have aided the top line in the to-be-reported quarter besides steady contributions from products like SingleTap, Folders, App Wizard and Notifications.

The company’s focus on adding strategic resources to improve international revenue per device (RPD) as well as scale partnerships and infrastructure is expected to have remained a key growth driver.

An expanded partner base, which includes Samsung, America Movil, Pandora, Disney, Netflix, Twitter, Pinterest and others, is expected to have boosted penetration in the to-be- reported quarter.

RPD derived from U.S.-based partners increased 50% year over year in fourth-quarter fiscal 2021. International RPD skyrocketed 140% in the reported quarter driven by Samsung, Xiaomi and Nokia, among others.

Further, notable partnerships in the United States with the likes of Verizon VZ, U.S. Cellular, Cricket and AT&T T are expected to have helped the company pull demand from its media partners in the United States during the soon-to-be-reported quarter.

Content media offerings with new U.S.-based partners such as T-Mobile’s TMUS Tracfone are expected to have strengthened Digital Turbine’s content business portfolio.

Improvement in advertiser rates due to a rebound in digital ad spending by high profile multinational advertising companies across brands, games and mobile-first applications is expected to have aided this Zacks Rank #3 (Hold) company in the to-be-reported quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Developments in Q1

During the fiscal first quarter, the company completed the acquisition of 95% shares in Frankfurt-listed mobile advertising monetization platform company, Fyber N.V.

Fyber's extensive network has over 180 programmatic demand partners with a reach of 650 million unique monthly active users across more than 180 different countries.

The integration will enable Digital Turbine to provide an end-to-end solution for mobile brand acquisition and monetization by combining Fyber's rapidly growing mediation, exchange and advertising solutions with Digital Turbine's core native application and content discovery experiences.

Moreover, the company acquired AdColony Holding AS from Otello Corporation ASA, a Norway company and sole shareholder of AdColony. The acquisition of AdColony is consistent with Digital Turbine's strategy to provide a comprehensive media and advertising solution to operator and OEM partners.

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