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Digital Turbine Becomes A Mobile Ad Juggernaut

May 06, 2021 11:07 PM ETDigital Turbine, Inc. (APPS)54 Comments


  • Having amassed a fast and still rapidly growing footprint of 570M mobile phones from 40+ OEMs and operators, the company is acquiring three mobile ad tech companies.
  • The mobile ad market is fast growing, and the biggest acquisition of the three, Fyber, is growing at a triple-digit rate.
  • The acquisitions were surprisingly cheap at less than 2x sales.
  • Digital Turbine also increased its guidance.
  • Looking for a portfolio of ideas like this one? Members of SHU Growth Portfolio get exclusive access to our model portfolio. Learn More »

Delivery food unique design kit for mobile app. Online fast food order screens with restaurant menu.
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Digital Turbine (NASDAQ:APPS) is one of the top-rated stocks in the SHU Growth Portfolio and we think that the present weakness provides an excellent opportunity to add to your position or open

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Shareholders Unite profile picture

I'm a retired academic with three decades of experience in the financial markets.

Providing a marketplace service Shareholdersunite Portfolio

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Comments (54)

The_Hammer profile picture
Projected guidance Q1 fiscal '22 adj non-gaap FCF $21.9 mil Can we assume this grows throughout the year or just annualized $88 mil?
Revs $188-$192 mil adj eps 0.31
Recurring revenues 50% of total. Any chance this grows over 80-90%?
what are main risks with aps?
Great article, well delivered and accurate. I bumped it against Bill Stone's presentation today at Needham.
The articles last comments were also Bill Stone's last remarks--both are about the aggregate market headwinds in Tech-Growth and Unprofitable small players that are out of Favor big Time now.
The big differentiator is that APPS is growing revenue and profit hand over fist, there input costs are deminimus, and they need to be removed from this category that is not them but unfortunately investors group them in.
Shareholders Unite profile picture
@alan ljl Thanks, yea, it's a special company
@Shareholders Unite
TBA is a SPAC with the Israeli company IRONSOURCE going public soon.
2021 Rev.'s $485M and Ebita $130M= about a +45% y/y increase.
They were mentioned by Stone in his presentation.
Are you familiar with them-they're similar to APPS and in some big blockbuster games.
Shareholders Unite profile picture
@alan ljl Not familiar with them I'm afraid, but it looks interesting
khlim115 profile picture
Whether staying at home or on the go, mobile ads will always follow. I don't see how reopening economy, high inflation and interest rates will decrease the demand for mobile ads. The stock is at the Feb level and the RSI is the lowest in a year. Looks like a good entry point. The time to buy is when there is blood on the Street.
I've entered a position at $70. This is a far better play than magnite and other supply side ad tech platforms out their.
Maxwello profile picture
@obsessedwithSA At this rate, it'll be $45 by Friday.
The way this market is going you'll be able to get more at a lower price
That where i originally bought 44$
El Financeiro profile picture
Thanks. Great overview. I love APPS. 10x so far…I’ve been hoping for a bigger pullback to allow me to add but may add at these levels.
Author do you think that APPS can get to a 7 to 10 billion Dollars in sales in a few years
The_Hammer profile picture
What is Proforma stock outstanding and balance sheet with all the acquisitions?
Does anyone here use an Android phone with Ignite embedded?
APPS’s established partnership with OEM and carriers and 500M+ device is definitely a strong moat. I hope the management can take advantage of device footprint to provide some true utilities free for users, not just pushing ads at all time.
this stock has definitely fallen from grace - I went from last month being able to do full hardwood flooring with painting of my house, to just a can of paint and a piece of hardwood, lol
Shareholders Unite profile picture
@Booyah9000 And these are the moments you start buying
@Booyah9000 You can afford a piece of hardwood?
@Step1192 very funny, lol :P
I know I'm not supposed to fall in love with my stocks. But I am in love with APPS until she breaks my heart and changes the fundamentals of our relationship. I'll pick her up every time she dips. I search and screen every day for other "apps"- in her price range with this type of growth and profit margin. A few stand out, but in a sector, I'm less bullish on.
Have a few shares considering adding some more love her a little but will she love us back
Thanks SHU, would it be fair to forecast 600/700 m revenues for 2022?
GULP Investment Group profile picture
@Fesposti $1b is already the combined revenues for the business this year so more than 1.3b easily next year
@Daniel Croft Thanks nut you see 1 billion already for 2021? That is not what the article say :"FY2021 revenue will therefore be $313.6M"
Also from 1 b 2021 to only 1.3 2022 is quite worrying...
Shareholders Unite profile picture
@Daniel Croft It's Fiscal year 2022, not 2021, which has already finished
I keep buying more in low sixties.
initially bought around 7 bucks sold after a few months one of several big mistakes ive made in selling early discovered again in the 40s so not selling ever but looking to add
@john boy I first bought at $9 and never sold a share.
@Indy72 you might be able to add on some more today....
Been purchasing on the way down the last two days. Don't see anything from an operational standpoint that changes my investment thesis. Understand that some funds may want to lock in gains. Still think we see some nice gains from here by end of year.
@Gldgate the stock is fine ... Sadly the market hates all this shit right now we’re just gonna have to wait it out. While the buy gap and footlocker
@Shareholders Unite - great update piece!
Great info, thanks for covering this.
DoubleGG profile picture
I love this stock, and I’m loading the boat. This stock is extremely under valued.
Why is the price collapsing?
Nospheritu profile picture
@jimsky 458 Volume higher than normal, selling off along with other small software stocks, probably funds selling. I don't think it's indicative of sentiment towards APPS in general, good time to start loading up shares, lots of firms raised price targets to between 90 and 115.
Great article. Cant wait for earnings. One of my biggest holdings. Long $APPS
I think that now is an excellent time to buy for a 2-3 year hold.
Excellent article and very timely as well. I’ll have to take another look at APPS. Thanks
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