Digital Turbine (Nasdaq: APPS) is a company based in Austin, Texas, that helps you get more out of your mobile devices. Think of it as providing the behind-the-scenes magic connecting mobile users with apps and advertising. Digital Turbine works with phone companies, app makers, and advertisers to make sure the right content reaches the right people, improving your mobile experience while helping businesses grow. It makes it easier for people to find and use apps and for companies to make money from them. The stock has been on quite a journey over the past year with significant ups and downs, including a notable surge in early 2025, another spike to a new 52-week high earlier this week, and then a steep drop over the past couple of days. In the fourth quarter of fiscal 2025 (which ended on March 31), revenue grew by 6% year over year, hitting $119.2 million. For the full fiscal year, revenue was $490.5 million. While the company reported a net loss of $18.8 million for the fourth quarter, that was a big improvement from a much larger loss last year. Furthermore, Digital Turbine's adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), a key measure of operating earnings, jumped a healthy 66% in the fourth quarter to $20.5 million. However, we need to take a closer look at the company's cash flow. Over the past four quarters, Digital Turbine had three quarters where it burned through cash. This means the company spent more cash than it brought in from its main operations. This is a red flag for value investors, as consistent cash generation is crucial for a healthy business. Many investors might be unsure whether to focus on the revenue and EBITDA growth or the negative cash flow, but that's what The Value Meter is for. What does it say about this small cap mobile tech stock? Let's find out... |
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