Digital Turbine Inc. ((APPS)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Digital Turbine Inc. recently held its earnings call, revealing a robust financial performance marked by significant revenue and adjusted EBITDA growth. The company successfully navigated debt refinancing and achieved notable international revenue milestones, although it reported a GAAP net loss for the quarter.
Strong Revenue Growth
Digital Turbine reported a revenue of $140.4 million for the quarter, showcasing an 18% year-over-year growth. This impressive increase underscores the company’s expanding market presence and successful business strategies.
Significant Adjusted EBITDA Increase
The company achieved a remarkable 78% year-over-year growth in adjusted EBITDA, demonstrating substantial operating leverage. This growth highlights Digital Turbine’s efficiency in managing its operations and maximizing profitability.
Successful Debt Refinancing
Digital Turbine completed a debt refinancing through a new 4-year term loan facility, which significantly strengthened their balance sheet. This strategic move provides the company with enhanced financial flexibility to support future growth initiatives.
International Revenue Milestone
For the first time, international revenues exceeded 25% of total On Device Solutions revenues, with an 80% year-over-year increase. This milestone indicates the company’s successful expansion into international markets and its ability to capture global opportunities.
Application Growth Platform Performance
The Application Growth Platform segment returned to year-over-year growth, posting $45 million in revenue, up 20% year-over-year. This resurgence highlights the segment’s recovery and potential for continued contribution to the company’s overall revenue.
Increased Brand Engagement
Direct brand relationships accounted for 47% of total brand revenue in the September quarter, up from 22% in the prior quarter. This increase in brand engagement signifies the company’s strengthening connections with advertisers and its ability to drive brand revenue.
Improved Free Cash Flow
Free cash flow for the quarter was $7 million, marking an improvement of nearly $23 million year-over-year. This positive cash flow trend reflects the company’s effective financial management and operational efficiency.
Raised Fiscal Year 2026 Guidance
Digital Turbine raised its full-year revenue guidance to $540 million to $550 million and adjusted EBITDA guidance to $100 million to $105 million. The company anticipates continued growth driven by strategic investments in first-party data and AI-driven capabilities.
GAAP Net Loss
Despite the positive financial developments, Digital Turbine reported a GAAP net loss of $21.4 million or $0.20 per share for the fiscal second quarter. This loss highlights the challenges the company faces amidst its growth trajectory.
In summary, Digital Turbine’s earnings call conveyed a positive sentiment with strong financial performance and strategic advancements. While the company faces challenges, its raised guidance and strategic investments signal confidence in future growth prospects.