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$APPS - 
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My Full Earnings Call Takeaways + Analysts notes
1/ Basic Info
- Rev of $89M vs Exp $75M Exp. (16% beat)
- 146% Growth YoY (58% organic growth as MP reps $31M
- EPS: $0.21 vs Exp $0.17 (23% beat) - 425% earnings growth
Cont'd - Hope you find helpful! -
25% My Full Earnings Call Takeaways + Analysts notes
1/ Basic Info
- Rev of $89M vs Exp $75M Exp. (16% beat)
- 146% Growth YoY (58% organic growth as MP reps $31M
- EPS: $0.21 vs Exp $0.17 (23% beat) - 425% earnings growth
Cont'd - Hope you find helpful! -
1b/ Financials $APPS:
- GP expansion – 166% – due to content
- GM 43% - content media, apps business based on revenue mix is driving margin expansion
- Ops. margin expanded by 23.2%.
- Adj. EBITDA up by 302% Y/Y to $22.51M; and margin expanded by 25.4%
- FCF keeps improving
- GP expansion – 166% – due to content
- GM 43% - content media, apps business based on revenue mix is driving margin expansion
- Ops. margin expanded by 23.2%.
- Adj. EBITDA up by 302% Y/Y to $22.51M; and margin expanded by 25.4%
- FCF keeps improving
2a/
- Overall International revenue is gradually representing a much higher share than US
- Revenue Per Device (RPD Growth) which is key metric is growing - nearly 70% growth in Int'l
- Int'l supply revenue for media grew 200% YoY
- Primarily from partners such as Samsung, Xaomi
- Overall International revenue is gradually representing a much higher share than US
- Revenue Per Device (RPD Growth) which is key metric is growing - nearly 70% growth in Int'l
- Int'l supply revenue for media grew 200% YoY
- Primarily from partners such as Samsung, Xaomi
3/ On Device Installs:
- $APPS installed on more than 570M devices WW
- They added over 65Million devices in Q4 (increased despite decline in android devices due to Covid)
- Imagine what happens post-Covid?
- $APPS installed on more than 570M devices WW
- They added over 65Million devices in Q4 (increased despite decline in android devices due to Covid)
- Imagine what happens post-Covid?
4/ $APPS Content Revenue business:
- They have been working on it for a while
- It was $31M growing 100% YoY (it was launched for the first-time)
- 10M DA-Users now, more growth anticipated here since this is new
- Expecting more partners to launch this year
- They have been working on it for a while
- It was $31M growing 100% YoY (it was launched for the first-time)
- 10M DA-Users now, more growth anticipated here since this is new
- Expecting more partners to launch this year
5/ $APPS product
- CEO emphasized importance of Diversification of partners & advertisers
- Striving for multiple revenue drivers
- making progress on TV offerings
- dynamic installs grew 40% YoY, but now represents < 50% of revenues compared to over 80% in 2020(This is key!)
- CEO emphasized importance of Diversification of partners & advertisers
- Striving for multiple revenue drivers
- making progress on TV offerings
- dynamic installs grew 40% YoY, but now represents < 50% of revenues compared to over 80% in 2020(This is key!)
6/ $APPS SingeTap
- This business and emerging products such as notifications are gonna drive growth
- This is going to be a growth driver in 2021.
- ARR (recurring revenues) is increasing > nearly 50% compared to 10% a year
- They are able to provide strong ROI for advertisers
- This business and emerging products such as notifications are gonna drive growth
- This is going to be a growth driver in 2021.
- ARR (recurring revenues) is increasing > nearly 50% compared to 10% a year
- They are able to provide strong ROI for advertisers
7/ $APPS bottom-line:
- Increasing time and money spent by consumers within applications continues to rise, on mobile devices due to content
- DSP Advertising business is going to be big
- New Credit facility of $100M (Potential M&A Acquisition expectation??? - I think so!
)
- Increasing time and money spent by consumers within applications continues to rise, on mobile devices due to content
- DSP Advertising business is going to be big
- New Credit facility of $100M (Potential M&A Acquisition expectation??? - I think so!
)
7/ $APPS What to expect: Guidance
Guided to the upside for the full year.
- Revenue between $298M and $300M vs. $280.37M consensus;
- Non-GAAP adj. EBITDA between $71M and $72M; and adj. EPS of $0.67 vs. $0.63 consensus.
- Conservative IMO - Expect more!
Guided to the upside for the full year.
- Revenue between $298M and $300M vs. $280.37M consensus;
- Non-GAAP adj. EBITDA between $71M and $72M; and adj. EPS of $0.67 vs. $0.63 consensus.
- Conservative IMO - Expect more!
9/ $APPS Analysts takeaways - #2
Roth Capital analyst Darren Aftahi raised the firm's price target on Digital Turbine to $87 from $70
Roth Capital analyst Darren Aftahi raised the firm's price target on Digital Turbine to $87 from $70
11/ $APPS - Future -What to expect:
- International is going to be huge
- Expect more growth from content delivery business
- 5G will help them
- More advertising. tech stack
- More Vertical integration on mobile foot point
- CEO is pretty cool
- Story feels like it is early
- International is going to be huge
- Expect more growth from content delivery business
- 5G will help them
- More advertising. tech stack
- More Vertical integration on mobile foot point
- CEO is pretty cool
- Story feels like it is early
$APPS Final
I mentioned some of the reasons prior to the earnings call - the reason I was bullish on the company regardless the results but overall, more than impressed! Long $APPS
Happy to hear your feedback or questions or different opinions :) https://twitter.com/InvestiAnalyst/status/1357028625275523072
I mentioned some of the reasons prior to the earnings call - the reason I was bullish on the company regardless the results but overall, more than impressed! Long $APPS
Happy to hear your feedback or questions or different opinions :) https://twitter.com/InvestiAnalyst/status/1357028625275523072
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