Why Digital Turbine Stock Is Tumbling Wednesday
Portfolio Pulse from Adam Eckert
Digital Turbine Inc (NASDAQ:APPS) shares fell 12.5% after the company reported Q4 FY2024 revenue of $112.22 million, missing estimates of $117.69 million. Despite beating earnings estimates with 12 cents per share, the company's adjusted EBITDA dropped significantly. New partnerships are expected to add over 70 million new devices globally. Fiscal-year 2025 revenue is projected between $540 million and $560 million, slightly below estimates. Roth MKM analyst Darren Aftahi maintained a Neutral rating and lowered the price target from $3 to $2.50.
May 29, 2024 | 1:31 pm
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NEGATIVE IMPACT
Digital Turbine's Q4 FY2024 revenue missed estimates, leading to a 12.5% drop in share price. Despite beating earnings expectations, the company's adjusted EBITDA fell significantly. New partnerships are expected to add over 70 million new devices globally. Fiscal-year 2025 revenue projections are slightly below estimates, and an analyst has lowered the price target.
The significant drop in share price is primarily due to missing revenue estimates and a substantial decline in adjusted EBITDA. Although earnings per share beat expectations and new partnerships are promising, the overall financial outlook and lowered price target contribute to a negative short-term impact.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100