Digital Turbine APPS shares have appreciated 70.4% year to date (YTD), outperforming the Zacks Computer & Technology sector and the Zacks Internet – Software industry’s decline of 10.1% and 2.3%, respectively.
APPS shares have also outperformed its peers, including Unity Software U and AppLovin APP, which are also making strong efforts in the digital media and advertising space. U and APP shares have lost 6.7% and 20.4%, respectively, in the YTD period.
The outperformance can be attributed to strong international revenues, robust advertiser demand, and a diverse partner base.
Can Digital Turbine continue its outperformance in the digital media and advertising space? Let’s dig deep to find out.
Year to Date Performance
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APPS Benefits From Strong Ad Demand and Global Expansion
APPS saw stronger advertising demand across its platform, particularly in its On-Device and international businesses, which have been a major growth driver for its success.
This momentum was reflected in the company’s On-Device Solutions business, which reached $92 million in the third quarter of fiscal 2025, marking an 11% sequential growth. This was driven by more advertisers leveraging the company’s platform, particularly for in-app advertisements and mobile monetization.
APPS also witnessed robust performance in international markets, where its On-Device Solutions business saw 100% year-over-year growth. This was primarily driven by increased advertiser demand and the company’s strong execution through its sales, product, and tech teams in key regions.
Both the United States and international markets achieved all-time high Record Revenue per Device levels in the third quarter of fiscal 2025, driven by strong advertiser demand. This helped to offset continued softness in U.S. device volumes.
Further solidifying APPS’ strong position, its Advertising & Growth Platform (AGP) segment, which focuses on in-app advertising, posted an impressive 34% year-over-year growth in the third quarter of fiscal 2025. The surge in AGP was driven by advertisers seeking to enhance user engagement through mobile applications, particularly as global mobile app usage continues to rise.
Digital Turbine, Inc. Price and Consensus
Digital Turbine, Inc. price-consensus-chart | Digital Turbine, Inc. Quote
APPS’ Prospects Benefit From Strong Partner Base
Digital Turbine’s efforts to expand its reach through strategic partnerships and integrations with new device manufacturers have been noteworthy.
Key partnerships with major mobile brands, such as Motorola, Nokia, ONE Store, Xiaomi, Telecom Italia Brazil, T-Mobile US and TIM TIMB, helped the company expand its presence across different regions and devices.
In January 2025, Digital Turbine partnered with TIM Brazil to enhance the smartphone experience by integrating personalized app recommendations and seamless access to apps on Android devices, leveraging Dynamic Installs and Push Notifications. This collaboration expands Digital Turbine’s footprint in Brazil’s mobile ecosystem, delivering innovative mobile experiences to millions of TIM customers.
Digital Turbine’s partnership with Motorola integrates its app recommendation technology and curated content into Motorola devices across more than 20 countries, offering users a personalized, streamlined experience and frictionless app installs through SingleTap technology.
Digital Turbine also made notable progress in expanding its alternative app distribution network. The company continued to build strategic partnerships with mobile carriers and other app-related service providers, such as Verizon, Epic, Microsoft and Pinterest.
APPS Provides Positive Fiscal 2025 Guidance
Digital Turbine’s growth prospects are driven by its expanding partner base and the strong demand for its advertising platform.
For fiscal 2025, APPS expects revenues between $485 million and $490 million.
Adjusted EBITDA is expected to be between $69 million and $71 million.
Earnings Estimate Revisions Show Upward Trend for APPS
The Zacks Consensus Estimate for APPS’ fiscal 2025 earnings is pegged at 30 cents per share, which has increased 50% over the past 60 days.
APPS’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 281.67%.
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Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Conclusion
Digital Turbine expects stable device sales in the United States in 2025, which bodes well for its prospects.
The company is also poised to benefit from an expanding customer base and increasing demand for its mobile advertising and app distribution solutions. These factors justify its premium valuation.
Digital Turbine currently sports a Zacks Rank #1 (Strong Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
