Digital Turbine Inc Up 354% in 2019, Looks More Bullish in 2020

Digital Turbine Inc Up 354% in 2019, Looks More Bullish in 2020Digital Turbine Inc Maintains Stellar Growth Trajectory

Thanks to a run of strong financial results, Digital Turbine Inc (NASDAQ:APPS) stock has been quietly trending significantly higher all year long.

The mobile app advertising company entered 2019 trading at $1.85, and on November 29, it hit an intra-day 52-week high of $9.13 for a year-to-date gain of 393.5%.

At the time of this writing, Digital Turbine was trading at $8.40 per share, up 354% since the start of 2019.

APPS Stock Overview

There are almost three million mobile apps available for download in the “Google Play” store. (Source: “Canaccord Genuity 39th Annual Growth Conference August 2019,” Digital Turbine Inc, last accessed December 5, 2019.)

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This makes it really difficult for most companies to stand out in the crowd.

That’s where Digital Turbine comes in. The Austin, Texas-based Digital Turbine mobile advertising platform makes it easier for apps to get discovered.

Chances are good you’ve looked through your mobile phone apps and discovered one you didn’t download. You can thank Digital Turbine for that.

Through the company’s “Ignite” digital software, apps are automatically delivered to mobile devices. This increases lead times, which helps companies improve their advertising budgets and reach wider audiences.

Digital Turbine’s technology platform has been used by more than 40 mobile operators and original equipment manufacturers (OEMs), delivering more than 2.3 billion app preloads for tens of thousands of advertising campaigns.

Digital Turbine Stock Information

Market Cap $714.1 Million
52-Week Change 317.2%
52-Week High $9.13
52-Week Low $1.61
Shares Outstanding 85.8 Million
Float 65.3 Million
50-Day Moving Average $7.60
200-Day Moving Average $6.18

(Source: “Digital Turbine, Inc. (APPS),” Yahoo! Finance, last accessed December 5, 2019.)

Digital Turbine stock has been bullish all year, advancing more than 350%, But it has actually been rewarding buy-and-hold tech penny stock investors since the start of 2017. Over the last three years, APPS stock has soared 1,100%.

While it might be difficult to replicate a 1,000%+ gain over the next three years, a doubling in share price over the next 12 months is entirely feasible.


Chart courtesy of StockCharts.com

Q2 Revenue Up 37%, Adjusted EBITDA Soars 181%, Still Debt-Free

On November 4, Digital Turbine announced that revenue for the second quarter of its fiscal 2020, ended September 30, 2019 increased 37% year-over-year to $32.8 million. (Source: “Digital Turbine Reports Fiscal 2020 Second Quarter Results,” Digital Turbine Inc, November 4, 2019.)

The company reported a second-quarter net loss of $1.3 million ($0.02 per share), versus net income of $2.1 million ($0.03 per share) in the same period last year.

Non-generally accepted accounting principles (GAAP) adjusted net income came in at $4.1 million ($0.05 per share), up from $1.1 million ($0.01 per share) in the second quarter of fiscal 2019.

Non-GAAP adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was $4.5 million, versus $1.6 million in the same prior-year period.

Digital Turbine ended the second quarter with a cash balance of $25.2 million, up from $16.2 million on June 30. Furthermore, the company remains debt-free.

Analyst Take

Digital Turbine has been one of the best-performing tech penny stocks in 2019, advancing more than 350%.

And that growth trajectory is expected to continue, with the company approaching the seasonally strong holiday period.