APPS (Digital Turbine) beats and raises

In the 10-Q they reported $212M revenue … and $193M cost of revenue - which means their gross margin this quarter is only 9%

No, that line item in the 10-Q says “cost of revenue and operating expenses

That’s a big “and”. Operating expenses, like the sales and marketing expenses shown, should not be subtracted from revenue to calculate gross profit.

This is a profitable company with positive earnings. After you subtract all expenses last quarter, you are left with $14 million of profit. This is called net profit, not gross profit.

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