APPS - Digital Turbine Q4 Earnings Preview: Potential Inflection Point

2024-05-24 05:41:07 ET

Summary

• Digital Turbine is scheduled to report fiscal fourth-quarter earnings on May 28. In this analysis, I will evaluate the macroeconomic environment for the company.
• After carefully analyzing the company's financial performance, I am inclined to believe that two macro factors have had the biggest say in numbers since mid-2022.
• APPS's prospects are closely tied to the mobile app market. Recent data suggests the global mobile app ecosystem will continue to grow.
• In this analysis, I am sharing my findings on the projected mobile data usage in different regions, the outlook for the app economy, and mobile ad spending to gauge a measure of the prospects for Digital Turbine.

Last February, I upgraded Digital Turbine, Inc. ( APPS ) stock based on the expected recovery of smartphone shipments and the improving prospects for global ad spending. I claimed that the worst might be over for Digital Turbine in terms of revenue declines, but I also thought that there was no catalyst to drive the stock higher given that earnings revisions were still trending lower at the time of publication of my previous analysis. APPS stock has declined 40%+ since then to around $2.35, a long way away from the highs of around $100 registered in 2021....

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