Financial Data and Key Metrics Changes - The company achieved revenue of $119.1 million for the fourth quarter, representing a 6% year-over-year growth [22] - Adjusted EBITDA for the fourth quarter was $20.5 million, reflecting a 66% increase year-over-year [22] - Non-GAAP earnings per share for the fourth quarter were $0.10, with a GAAP net loss of $18.8 million or $0.18 per share [26] - For the full fiscal year 2025, total revenue was $490.5 million, a decline of approximately 10% compared to the previous year [26] Business Line Data and Key Metrics Changes - The On-Device Solutions (ODS) segment revenue increased by 11% year-over-year, while the Advertising Growth Platform (AGP) segment revenue decreased by 3% year-over-year [22] - Revenue per device (RPD) in the U.S. increased by over 40% year-over-year, and internationally by over 100% year-over-year [8] Market Data and Key Metrics Changes - The company reported a positive trend in international markets, with improved execution and operational strategies leading to increased revenue per device [32][34] - The DTX revenues from non-gaming applications nearly doubled over the past year, indicating a diversification of supply [12] Company Strategy and Development Direction - The company is focused on expanding its device footprint and enhancing its product portfolio for both ODS and AGP businesses [14][15] - Strategic investments are being made in first-party data and AI machine learning platforms to drive growth and improve operational efficiencies [17][19] - The company aims to build deeper media relationships and leverage regulatory changes to enhance its market position [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, projecting revenue for fiscal year 2026 to be between $515 million and $525 million [28] - The regulatory environment is seen as favorable, with increasing interest from app publishers in the company's technologies [36][38] Other Important Information - The company extended its credit facility, which is expected to lower its cost of capital in the future [6] - Cash balance at the end of the quarter was $40.1 million, with no new borrowings reported [27] Q&A Session Summary Question: Focus on international RPD growth opportunities - Management highlighted improved execution and increased distribution footprint as key factors driving international RPD growth, with partnerships expanding in regions like Brazil and India [32][34] Question: Activity increase from app publishers due to regulatory environment - Management noted a favorable regulatory environment leading to increased interest from app publishers in their Single Tap and app install technologies, with several new licensees signed [36][38] Question: Future operating expenses outlook - Management indicated that operating expenses are expected to remain relatively flat going forward, with potential increases aligned with business growth [40]

Financial Data and Key Metrics Changes - The company achieved revenue of $119.1 million for Q4 2025, representing a 6% year-over-year growth [23] - Adjusted EBITDA for the quarter was $20.5 million, reflecting a significant 66% increase year-over-year [24] - Non-GAAP earnings per share for the quarter were $0.10, with a GAAP net loss of $18.8 million or $0.18 per share [26] - For the full fiscal year 2025, total revenue was $490.5 million, a decline of approximately 10% compared to the previous year [26] Business Line Data and Key Metrics Changes - The On-Device Solutions (ODS) segment revenue increased by 11% year-over-year [23] - The Advertising Growth Platform (AGP) segment revenue decreased by 3% year-over-year [23] - Revenue per device (RPD) increased by over 40% year-over-year in the U.S. and over 100% internationally [8] Market Data and Key Metrics Changes - The company reported a positive trend in June, expecting improved performance both sequentially and year-over-year [6] - The DTX business returned to growth, with revenues from non-gaming applications nearly doubling over the past year [12] Company Strategy and Development Direction - The company is focused on expanding its device footprint and improving operational efficiency through automation and AI [13][15] - Strategic investments are being made in first-party data and AI machine learning to enhance advertising capabilities [10][16] - The launch of the new version of Ignite is a key milestone, now on over 100 million devices, aimed at generating more revenue and improving service quality [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and market opportunities, highlighting a favorable regulatory environment that supports growth [39] - The outlook for fiscal year 2026 anticipates revenue between $515 million and $525 million, with adjusted EBITDA projected between $85 million and $95 million [28] Other Important Information - The company extended its credit facility, which is expected to lower the cost of capital in the future [6] - Cash balance at the end of the quarter was $40.1 million, with no new borrowings reported [27] Q&A Session Summary Question: Focus on international RPD growth opportunities - Management highlighted improved execution and increased distribution footprint as key factors driving international RPD growth, with partnerships expanding in regions like Brazil and India [35] Question: Activity from app publishers regarding Single Tap technology - Management noted a favorable regulatory environment leading to increased interest from app publishers in Single Tap licensing, with ongoing partnerships with companies like Epic and Pinterest [39] Question: Future operating expenses outlook - The CFO indicated that operating expenses are expected to remain relatively flat going forward, with potential increases aligned with business growth [40]

Core Insights - The mobile advertising technology sector is rapidly evolving due to the maturation of the digital economy and changing user privacy regulations, with Digital Turbine, Inc. (APPS) and AppLovin Corporation (APP) taking different approaches to growth and profitability [1] Digital Turbine - Digital Turbine's On-Device Solutions and App Growth Platform (AGP) are driving significant growth, with international On-Device revenues increasing by 100% year-over-year in Q3 of fiscal 2025, indicating strong advertiser demand and effective operational execution [2] - The company has expanded its global presence through partnerships with major device manufacturers like Motorola, Nokia, and Xiaomi, allowing for seamless app distribution and integration of its technologies across various regions [3] - Despite a near-term risk from softness in U.S. device volume due to extended hardware upgrade cycles, international growth and platform diversification provide substantial offsets [5] AppLovin - AppLovin benefits from integrating AI into its ad tech platform, catering to the increasing demand for data-driven solutions among mobile advertisers [6] - The divestiture of its gaming unit for $900 million allows AppLovin to focus on high-margin advertising solutions, aligning its resources with the global digital advertising market [7] - The AXON ad engine, which utilizes machine learning for enhanced targeting and performance, is central to AppLovin's growth strategy [8] - Financially, AppLovin reported a 44% year-over-year revenue increase and a 78% rise in adjusted EBITDA in Q4 of 2024, with net income growing by 248% year-over-year, showcasing strong demand and operational efficiency [9] Earnings Estimates - The Zacks Consensus Estimate for Digital Turbine's fiscal 2025 earnings has increased by 50% over the past 90 days, with a consistent earnings beat trend in the last four quarters [10] - Conversely, AppLovin's earnings estimates for 2025 have been revised downward by 2.8% in the past 30 days, although it has also consistently beaten earnings estimates in recent quarters [11] Stock Performance - Year-to-date, Digital Turbine shares have risen by 87.6%, while AppLovin's stock has declined by 10.8%, contrasting with a 5.8% drop in the S&P 500 [12] Investment Outlook - Digital Turbine is well-positioned for long-term growth due to strong advertiser demand and a growing network of partnerships, although macroeconomic challenges may temper near-term gains [15] - AppLovin's strong earnings momentum and focus on high-margin ad tech suggest positive long-term prospects, but recent downward revisions warrant caution [16]

Financial Data and Key Metrics Changes - InMode generated total revenue of $77.9 million in Q1 2025, a decrease of 3% compared to Q1 2024 [8] - GAAP gross margin was 78% in Q1 2025, down from 80% in Q1 2024 [8] - Non-GAAP diluted earnings per share were $0.31, compared to $0.32 in Q1 2024 [12] Business Line Data and Key Metrics Changes - Minimally invasive platforms accounted for 87% of total revenues in Q1 2025 [9] - Sales and marketing expenses decreased slightly to $39.7 million in Q1 2025 from $39.8 million in the same period last year [11] Market Data and Key Metrics Changes - International sales accounted for $38 million or 49% of total sales, a 1% increase compared to Q1 2024 [10] - Europe was the largest revenue contributor from outside the U.S., achieving record sales [10] Company Strategy and Development Direction - The company plans to unveil a new platform for the wellness market later in 2025, aiming to diversify its product offerings [6] - InMode remains committed to maintaining its workforce and not cutting costs, believing this will position the company to lead when market conditions improve [5] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing macroeconomic uncertainty and soft consumer demand affecting the medical aesthetic market [4] - The company anticipates a potential reduction in operating margins by 4% to 5% due to market pressures and U.S. tariffs [13] Other Important Information - InMode completed a share repurchase program, buying back 6.95 million shares for $127 million, returning over $412 million to shareholders in the past year [7] - The company has a strong balance sheet with cash and equivalents totaling $512.9 million as of March 31, 2025 [12] Q&A Session Summary Question: Follow-up on product mix dynamics - Management indicated that the slowdown began in mid-2023 due to rising interest rates and decreased consumer confidence, impacting capital equipment purchases [19] Question: Guidance for Q2 and market recovery - Management expressed optimism for Q2 but noted that if results do not improve significantly, guidance may need to be lowered [30] Question: Impact of tariffs on gross margins - Management explained that current tariffs could impact gross margins by approximately 2% to 3% if they remain at 10% [56] Question: Updates on operating expenses - Management confirmed that they plan to maintain investments in sales and marketing despite macro challenges [63] Question: Pricing strategy in the current market - Management decided against raising prices due to the current market conditions, emphasizing the importance of maintaining competitiveness [70] Question: Performance in Europe compared to the U.S. - Management noted that Europe performed better in Q1 2025, attributed to management changes and pricing strategies [83]

Financial Data and Key Metrics Changes - InMode generated total revenue of $77.9 million in Q1 2025, a decrease of 3% compared to Q1 2024 [8] - GAAP gross margin was 78% in Q1 2025, down from 80% in Q1 2024 [8] - Non-GAAP diluted earnings per share were $0.31, compared to $0.32 in Q1 2024 [12] - The company ended the quarter with cash and cash equivalents of $512.9 million [12] Business Line Data and Key Metrics Changes - Minimally invasive platforms accounted for 87% of total revenues in Q1 2025 [9] - Sales and marketing expenses decreased slightly to $39.7 million in Q1 2025 from $39.8 million in Q1 2024 [11] Market Data and Key Metrics Changes - International sales accounted for $38 million or 49% of total sales, a 1% increase compared to Q1 2024 [9] - Europe was the largest revenue contributor outside the U.S., achieving record sales [10] Company Strategy and Development Direction - The company plans to unveil a new platform for the wellness market later this year, reflecting its strategy to diversify offerings [6] - InMode has committed to not reducing its workforce and aims to lead the industry during the market rebound [6] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing macroeconomic uncertainty and soft consumer demand affecting the medical aesthetic market [4] - The company remains optimistic about a recovery in consumer interest in minimally invasive procedures as macro conditions stabilize [5] - Management expects operating margins to decrease by 4% to 5% due to market pressures and U.S. tariffs [13] Other Important Information - InMode returned over $412 million to shareholders through share repurchases over the past twelve months, representing approximately 27% of total capital [7] - The company anticipates a potential impact of 2% to 3% on gross margins due to U.S. tariffs [14] Q&A Session Summary Question: Follow-up on product mix dynamics - Management indicated that the slowdown began in mid-2023 due to rising interest rates and decreased consumer confidence, impacting capital equipment purchases [20][21] Question: Guidance for Q2 and market trends - Management is optimistic about Q2 but will adjust guidance if results do not improve significantly compared to Q1 [30][31] Question: Impact of the macroeconomic environment on guidance - Management reiterated that guidance remains unchanged for now, pending Q2 results [39] Question: Updates on U.S. management structure - The company has not yet hired a new President for the U.S. and management is actively involved in operations [66] Question: Tariff impact and pricing strategy - Management decided not to raise prices due to market conditions, despite tariff impacts [70][71] Question: Performance in Europe - Europe performed better than the U.S. in Q1, attributed to management changes and pricing strategies [84]

Financial Data and Key Metrics Changes - InMode generated total revenue of $77.9 million in Q1 2025, a decrease of 3% compared to Q1 2024 [8] - GAAP gross margin was 78% in Q1 2025, down from 80% in Q1 2024 [8] - Non-GAAP diluted earnings per share were $0.31, compared to $0.32 in Q1 2024 [12] - The company ended the quarter with cash and cash equivalents of $512.9 million [12] Business Line Data and Key Metrics Changes - Minimally invasive platforms accounted for 87% of total revenues in Q1 2025 [9] - Sales and marketing expenses decreased slightly to $39.7 million in Q1 2025 from $39.8 million in Q1 2024 [11] Market Data and Key Metrics Changes - International sales accounted for $38 million or 49% of total sales, a 1% increase compared to Q1 2024 [9] - Europe was the largest revenue contributor from outside the U.S., achieving record sales [10] Company Strategy and Development Direction - The company plans to unveil a new platform for the wellness market later this year, reflecting its strategy to diversify offerings [6] - InMode has committed to not reducing its workforce and aims to lead the industry during the market rebound [6] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing macroeconomic uncertainty and soft consumer demand affecting the medical aesthetic market [4] - The company anticipates a potential reduction in operating margins by 4% to 5% due to market pressures and U.S. tariffs [13] - Management remains optimistic about a market recovery, contingent on Q2 performance [30] Other Important Information - InMode returned over $412 million to shareholders through share repurchases over the past twelve months, representing approximately 27% of total capital [7] - The company has not yet hired a new President for the U.S. and is currently led by the acting President [66] Q&A Session Summary Question: Follow-up on product mix dynamics - Management indicated that the slowdown began in mid-2023 due to rising interest rates and decreased consumer confidence, impacting capital equipment purchases [20][21] Question: Guidance for Q2 and market trends - Management expects Q2 to be stronger than Q1, but if results do not improve, guidance may need to be lowered [31][40] Question: Impact of tariffs on guidance - Tariffs are expected to impact gross margins by approximately 2% to 3% if they remain at 10% [57][79] Question: Updates on operating expenses - The company plans to maintain its investment in sales and marketing despite macro challenges, which may impact profitability [65] Question: Pricing strategy in the current market - Management decided not to raise prices due to the current market conditions, despite tariff impacts [70][90] Question: Performance in Europe compared to the U.S. - Europe has shown better performance due to management changes and pricing strategies, although credit conditions are tightening [83]

Core Viewpoint - Digital Turbine (APPS) has experienced a significant stock price decline after reaching a 52-week high, yet it has shown strong year-to-date performance compared to its industry peers [1][2]. Year-to-Date Price Performance - APPS shares have increased by 58.6% year-to-date, outperforming the Zacks Computer & Technology sector and the Zacks Internet – Software industry [1]. - In contrast, Unity Software and AppLovin have seen declines of 19.2% and 27.1% respectively [2]. Factors Driving Digital Turbine Stock - The On-Device Solutions business has been a major growth driver, with international On-Device revenues increasing by 100% year-over-year in Q3 of fiscal 2025 [7]. - Strong advertiser demand and high revenue per device in both U.S. and international markets indicate the platform's efficiency and pricing power [7]. - Strategic partnerships with major mobile brands like Motorola, Nokia, and Xiaomi have expanded Digital Turbine's reach [8]. - The App Growth Platform, which includes Advertising Solutions and Ad Monetization Solutions, is a key growth engine, benefiting from increased ad spending on mobile [10]. - The company has diversified its AGP supply beyond game publishers, positioning itself for scalable growth in the mobile app segment [11]. Challenges to Consider - Despite strong performance, there are challenges such as softness in U.S. device volumes and fluctuating consumer demand, which could limit expansion opportunities [12]. - Recent earnings estimate revisions show a 50% increase for fiscal 2025, but no recent changes have been made [13]. Conclusion - Digital Turbine is positioned for long-term growth due to strong advertiser demand and global partnerships, with On-Device Solutions and the App Growth Platform as key drivers [15]. - However, macroeconomic uncertainties and competitive pressures may limit near-term upside, suggesting a hold rating is appropriate while awaiting clearer catalysts [15].