Digital Turbine(US:APPS)2026-02-03 22:32Financial Data and Key Metrics Changes - Total revenue for the fiscal third quarter was $151.4 million, representing a 12% year-over-year growth [4][13] - Adjusted EBITDA for the quarter totaled $38.8 million, reflecting a 76% increase year-over-year, with an EBITDA margin of 26% [14] - GAAP net income was reported at $5.1 million, or $0.03 per share, while non-GAAP net income was $21.7 million, or $0.18 per share [15] Business Line Data and Key Metrics Changes - On-Device Solutions (ODS) generated $99.6 million in revenue, up 9% year-over-year, driven by higher device volumes and revenue per device (RPD) [13][14] - Application Growth Platform (AGP) revenue was $52.6 million, up 19% from the prior year, with strong results in brand business and over 30% growth in DTX or SSP business [7][14] Market Data and Key Metrics Changes - International business drove over 60% year-over-year growth in ODS, with more than 30% of revenues from outside the United States for the first time [7][8] - Overall device volumes grew 20% year-over-year, despite softness in U.S. devices, indicating strong performance from international partners [8] Company Strategy and Development Direction - The company has five strategic priorities aimed at unlocking value from first-party data, building a flywheel effect between supply and demand, scaling the brand business, expanding services through the Ignite platform, and exploring alternative app opportunities [10][11][12] - The company is focused on leveraging AI and machine learning to enhance operational efficiency and drive revenue growth [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business momentum and the ability to build on performance, with a raised full-year revenue guidance to $553 million-$558 million and adjusted EBITDA guidance to $114 million-$117 million for fiscal year 2026 [17][18] - The company views the recent Google Gemini announcement positively, as it is expected to increase demand for distribution services [23][24] Other Important Information - The company ended the quarter with a cash balance of $40 million and reduced total debt by over $41 million to $355 million [16] - Free cash flow for the third quarter totaled $6.4 million, reflecting improved cash generation [14] Q&A Session Summary Question: Insights on the app install business and advertising integration - Management highlighted the potential for integrating advertising budgets into user acquisition, creating a self-reinforcing growth cycle [19][20] Question: Impact of Google Gemini announcement - Management believes the announcement will positively affect the company by increasing the need for distribution services for new games [22][24] Question: Observations on Meta's activity on iOS - Management noted that while Meta's activity is increasing, the company is outgrowing the market, with AGP growth at 20% compared to the market's mid- to high-single digits [30]