APPS prelim Q4 results

Digital Turbine (APPS) posted their business update and preliminary fiscal 2021 Q4 (calendar year 2021 Jan-Mar) results.…

Revenue was $95.1M (guided 82M) or 101% YoY increase on a pro forma basis!!

Fiscal year revenue was 313.6M and YoY 64% increase on a pro forma basis.

Revenue in the last 4 Qs
2021 59 71 88 95 ; 315 total

This excludes the AdColony acquisition which just completed and the Fyber revenue which is set to complete by the end of June.

AdColony posted $58.3M revenue last quarter, a 37% YoY increase.

Fyber expects a €85M revenue for last quarter.

Note that the two new acquisitions have lower gross margins than APPS currently. AdColony ~30% and Fyber ~15% while APPS ~40%.

My thoughts

The outcome of aggressive acquisitions are still unclear, but their current business is booming. Revenue growth on a pro forma basis continues (40%, 70%, 100%) in the last 3 quarters, but they will start facing difficult comps starting next quarter.

Starting next quarter, their app install business will take up less than 30% of their total revenue. At this time last year it was over 90% and APPS was a one trick pony. Not anymore.

As the largest position (30%) in my portfolio, I will hold my current positions and see how their vertical integration strategy plays out.