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Mar 31, 2024

Digital Turbine Q4 2024 Earnings Report

Digital Turbine's Q4 2024 financial performance declined due to headwinds, but the company sees positive momentum and strategic positioning for future growth.

Key Takeaways

Digital Turbine reported a decrease in revenue and a significant net loss for Q4 2024, impacted by a non-cash goodwill impairment charge. However, the company is optimistic about new partnerships and its re-engineered ad tech platform, expecting a return to growth in the new fiscal year.

Q4 revenue decreased by 20% year-over-year, totaling $112.2 million.

GAAP net loss was $236.5 million, or ($2.32) per share, including a $189.5 million non-cash goodwill impairment charge.

Non-GAAP adjusted net income was $12.6 million, or $0.12 per share, compared to $13.6 million, or $0.14 per share in Q4 2023.

New partnerships are expected to add over 70 million new devices globally.

Total Revenue
$112M
Previous year: $140M
-19.9%
EPS
$0.12
Previous year: $0.14
-14.3%
Adjusted EBITDA
$12.3M
Gross Profit
$30.4M
Previous year: $59.5M
-48.9%
Cash and Equivalents
$33.6M
Previous year: $75.6M
-55.5%
Free Cash Flow
-$41.7M
Total Assets
$866M
Previous year: $1.27B
-31.7%

Digital Turbine

Digital Turbine

Digital Turbine Revenue by Segment

Forward Guidance

Digital Turbine expects revenue between $540 million and $560 million and non-GAAP adjusted EBITDA between $85 million and $95 million for fiscal year 2025.

Positive Outlook

  • Revenue of between $540 million and $560 million
  • Non-GAAP adjusted EBITDA of between $85 million and $95 million
  • Encouraging real-time momentum in the marketplace
  • Strategy and positions the Company for a return to growth in the new fiscal year
  • Recently secured additional global device supply to offset recent headwinds

Challenges Ahead

  • Ongoing uncertainties in the macro environment
  • Decade-low upgrade-rates
  • Selective app distribution limitations in the U.S.
  • It is not reasonably practicable to provide a business outlook for GAAP net income because the Company cannot reasonably estimate the changes in stock-based compensation expense
  • Changes in the Company’s stock price, or other items that are difficult to predict with precision.

Revenue & Expenses

Visualization of income flow from segment revenue to net income