Digital Turbine APPS reported third-quarter fiscal 2022 non-GAAP earnings of 49 cents per share that surpassed the Zacks Consensus Estimate of 43 cents.
Revenues of $375.5 million beat the consensus mark by 6.34%. The top line improved a whopping 323.8% year over year.

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Quarter Details

For the application business, revenues from On Device-Media surged 43% year over year to $133.6 million.
For the content business, revenues from In-App Media increased 39.6% year over year to $251.7 million, driven by improved performance on a fully-deployed content platform and increasing advertising demand and yields.
In-App Media segments, Fyber and AdColony contributed $157.4 million and $94.3 million to revenues in the quarter under review, reflecting year-over-year growth of 48% and 27.6%, respectively.

Operating Details

In third-quarter fiscal 2022, product development expenses soared 240.6% to $17.7 million.
Sales & marketing (S&M) expenses increased 203.8% to $15.9 million. General & administrative (G&A) expenses surged a whopping 490.5% to $39.9 million.
Operating expenses, as a percentage of revenues, were 92.2% compared with year-ago quarter’s 25.1%.
Operating income on a GAAP basis was $29.1 million, up 42% year over year in the reported quarter.

Balance Sheet & Cash Flow

The company’s cash balance was $115.4 million as of Dec 31, 2021, compared with $96.2 million as of Sep 30, 2020.
Cash provided by operating activities totaled $35.7 million in the reported quarter compared with $36.7 million in the previous quarter.
Free cash flow was $36.6 million in the reported quarter compared with $39.9 million in the prior quarter.

Guidance

For fiscal 2022, Digital Turbine expects revenues between $1.225 billion and $1.240 billion.
Non-GAAP adjusted EBITDA is expected between $195 million and $197 million.
Adjusted earnings are expected between $1.66 per share and $1.68 per share.

Zacks Rank & Stocks to Consider

Currently, Digital Turbine carries a Zacks Rank #3 (Hold).
Digital Turbine’s shares have tumbled 50% against the Zacks Computer and Technology sector’s return of 1.1% in the past year.
Some better-ranked stocks in the same sector are Analog Devices ADI, Photronics PLAB and Vocera Communications VCRA.
While Photronics and Vocera sport Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Photronic’s shares have rallied 47.3% in the past year.
PLAB is slated to report first-quarter fiscal 2022 results on Feb 23.
Vocera Communications’ shares have returned 63.9% in the past year.
VCRA is scheduled to report fourth-quarter 2021 results on Feb 10.
Analog shares have returned 6.8% compared with the Zacks Computer and Technology sector’s growth in the past year.
ADI is expected to report first-quarter 2021 results on Feb 16.

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