Loading...
•
Sep 30, 2024
Digital Turbine Q2 2025 Earnings Report
Digital Turbine's revenue decreased year-over-year but increased sequentially, with GAAP net loss reported and strategic transformation initiated.
Key Takeaways
Digital Turbine reported a decrease in revenue year-over-year but an increase sequentially for the second quarter of fiscal year 2025. The company reported a GAAP net loss of $25.0 million, or ($0.24) per share, and a non-GAAP adjusted net income of $5.0 million, or $0.05 per share. The company initiated a transformation program designed to drive greater efficiency and enhance cash flow generation.
Second quarter revenue totaled $118.7 million, a 17% decrease year-over-year.
GAAP net loss was $25.0 million, or ($0.24) per share.
Non-GAAP adjusted net income was $5.0 million, or $0.05 per share.
Non-GAAP adjusted EBITDA was $15.3 million, a 45% decrease year-over-year.
Digital Turbine
Digital Turbine
Digital Turbine Revenue by Segment
Revenue by Segment
On Device Solutions Revenue
CapyFin.comApp Growth Platform Revenue
CapyFin.com Forward Guidance
Digital Turbine anticipates continued sequential growth in the current December quarter and a return to year-over-year growth in the March quarter, but the outlook for the remainder of fiscal 2025 has been reduced due to anticipated headwinds. The company expects revenue between $475 million and $485 million and non-GAAP adjusted EBITDA between $65 million and $75 million for fiscal year 2025.
Positive Outlook
- Anticipates continued sequential growth in the current December quarter.
- Expects a return to year-over-year growth in the March quarter.
- Transformation project is expected to yield more than $25 million in annual cost savings.
- Transformation project will position the company for greater profit and cash flow leverage when top-line growth rates re-accelerate.
- Company has a clear plan to achieve core objectives and capitalize on its advantageous foothold position in the newly evolving mobile app marketplace.
Challenges Ahead
- Outlook for the remainder of fiscal 2025 has been reduced.
- More significant anticipated headwinds in some legacy businesses.
- Must execute with greater expediency and efficiency.
- GAAP net income business outlook is not provided.
- Uncertainty on stock-based compensation expense due to stock price changes.
Revenue & Expenses
Visualization of income flow from segment revenue to net income