Digital Turbine Reports $134.6M Revenue Decline and Increased Net Loss for December Quarter

Digital Turbine, Inc. reported a net revenue of $134.6 million for the quarter ended December 31, 2024, a decrease of 5.6% compared to $142.6 million in the same quarter of the previous year. For the nine-month period, revenue fell 14.1% to $371.4 million from $432.3 million. The company experienced a net loss of $23.1 million for the quarter, compared to a loss of $14.1 million in the prior year, marking a 64.5% increase in losses. The nine-month net loss also increased to $73.3 million from $183.9 million, reflecting ongoing challenges in the market.

The decline in revenue was attributed to lower sales volumes of new mobile devices, which impacted both the On Device Solutions (ODS) and App Growth Platform (AGP) segments. ODS revenue decreased by 2.7% to $91.7 million, while AGP revenue fell by 10.0% to $44.2 million. The company noted that the decrease in application media revenue was primarily driven by lower device volumes, particularly in the U.S. and Europe, although there were some offsetting increases in the Asia Pacific region.

In terms of operational developments, Digital Turbine completed the acquisition of One Store International on November 26, 2024, as part of its strategy to expand its app market business in Europe. The acquisition is expected to enhance the company's offerings and market reach. Additionally, the company initiated a transformation program aimed at improving operational efficiency, which included workforce reductions in late 2024 and early 2025. The program is projected to yield over $25 million in annual cash savings once fully implemented.

The company reported total assets of $839.7 million as of December 31, 2024, down from $865.5 million at the end of the previous fiscal year. Total liabilities increased to $676.1 million, primarily due to a rise in long-term debt, which stood at $408.2 million. Digital Turbine's cash and cash equivalents were approximately $35.3 million, with an additional $14 million available under its credit agreement. The company remains focused on managing its liquidity and exploring cost-saving opportunities amid challenging market conditions.

Looking ahead, Digital Turbine anticipates continued pressure on revenue due to macroeconomic factors, including inflation and geopolitical tensions, which may further impact device sales and advertising demand. The company is committed to executing its transformation initiatives and optimizing its operations to navigate these challenges effectively.