Digital Turbine (APPS) to Post Q1 Earnings: What's in Store?
Digital Turbine APPS is slated to release its first-quarter fiscal 2024 results on Aug 8.
For fiscal first-quarter 2024, Digital Turbine expects revenues between $140 million and $145 million. Earnings are expected in the range of 11-13 cents per share.
The Zacks Consensus Estimate for the fiscal first-quarter top line is pegged at $143.06 million, suggesting a decline of 24.16% from the year-ago reported figure.
The consensus mark for the bottom line has been unchanged at 12 cents per share in the past 30 days, suggesting a year-over-year decline of 68.42%.
Digital Turbine, Inc. Price and EPS Surprise
Digital Turbine, Inc. price-eps-surprise | Digital Turbine, Inc. Quote
Digital Turbine’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing in the remaining ones, the average negative surprise being 6.11%.
Let’s see how things have shaped up for this announcement.
Factors to Consider
Digital Turbine’s fiscal first-quarter performance is expected to have benefitted from an expanding adoption of AI and machine learning (ML) to optimize its SingleTap business and automate workflows and content creation for content media businesses.
The company leverages large language model or LLM-based conversational AI and ML models to optimize its ad platform. The use of AI and ML across applications is likely to have increased demand among end users in the to-be-reported quarter.
Digital Turbine’s partnerships with the likes of Epic, Amazon and Google for SingleTap have been noteworthy. This along with a strong contribution from the acquisitions is expected to have benefited top-line growth.
However, persistent macroeconomic challenges, raging inflation and high interest rates are expected to have hurt APPS prospects. These are expected to have affected the ad-revenue growth rate in the to-be-reported quarter, as companies have been reducing their digital ad spending significantly.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Digital Turbine has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:
PubMatic PUBM has an Earnings ESP of +9.09% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
PUBM’s shares have gained 51.6% year-to-date. PubMatic is set to post second-quarter 2023 results on Aug 8.
Twilio TWLO has an Earnings ESP of +6.9% and a Zacks Rank of 2 at present.
Twilio’s shares have gained 26.3% year to date. TWLO is set to report its second-quarter 2023 results on Aug 8.
Chegg CHGG has an Earnings ESP of +20.89% and a Zacks Rank #2.
Chegg’s shares have declined 58.7% year to date. CHGG is set to report second-quarter 2023 results on Aug 7.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Chegg, Inc. (CHGG) : Free Stock Analysis Report
Twilio Inc. (TWLO) : Free Stock Analysis Report
Digital Turbine, Inc. (APPS) : Free Stock Analysis Report
PubMatic, Inc. (PUBM) : Free Stock Analysis Report
