- Digital Turbine, Inc (NASDAQ:APPS) saw its stock price decline after reporting mixed fourth-quarter results. The company’s revenue declined 24% YoY to $140.1 million, beating the consensus of $138.7 million, while its adjusted EPS of $0.14 missed the consensus of $0.18.
- Oppenheimer analyst Timothy Horan maintained a Perform rating on the stock, citing low visibility and a business model that is still a work in process. Despite the company’s optimistic outlook regarding stabilisation and renewed advertiser confidence, lacklustre Q1 2024 guidance fell short of expectations, with a 4% revenue and 26% EBITDA shortfall relative to consensus.
- Darren Aftahi, a Roth MKM analyst, downgraded Digital Turbine from Buy to Neutral and lowered the price target from $15 to $10, while Craig-Hallum analyst Anthony Stoss maintained the stock with a Buy rating but lowered the price target from $25 to $20. Omar Dessouky, an analyst at B of A Securities, maintained a Buy rating but reduced the price target from $16 to $13.
- Digital Turbine’s business model, which has disproportionate exposure to slower handset upgrades and single-tap adoption, is lagging relative to competitors such as Meta Platforms Inc (NASDAQ:META), Applovin Corp (NASDAQ:APP), The Trade Desk Inc (NASDAQ:TTD), and Unity Software Inc (NYSE:U). However, the company has a differentiated on-device platform that is positively leveraged to popular apps such as TikTok and Temu.
- APPS shares traded lower by 42.3% at $8.32 on the last check Thursday.
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