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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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