Digital Turbine, Inc. (NASDAQ: APPS) stock drops 15% after it announces its fourth quarter and full-year financial results for 2022. The company acquired ADColony Holdings AS and Fyber N.V on April 2021 and May 25, 2021 respectively.
Some specific references made in this release offer investors with quarterly comparisons and results as if the acquired corporations were owned by Digital the whole of 2021 and 2022. Digital believes these “pro forma” results can offer investors more relevant and useful year-over-year comparisons.
Management statements
Digital Chief Executive Officer , Bill Stone, said:
It is more important than ever to have a clear vision of where you are going as a Company, and to have a highly profitable, proven, and scalable business model to get there in times like these. The macro world has changed considerably in recent months, and I am proud of our team’s focus and execution to adjust to the rapidly evolving operating conditions.
Mr. Stone continued:
We have made material progress on a number of key future growth drivers, such as SingleTap licensing, our role in the future of app stores, and the enhancement of numerous strategic partnerships with market-leading companies looking to leverage DT platform offerings as a core part of their respective growth initiatives.
The CEO claimed that while macro headwinds will give rise to certain challenges for most corporations in the short term, he strongly believes those headwinds won’t be as impactful for growth businesses that are highly-profitable like Digital which record nine-figure cash flow incomes per year.
Financial Results
Total fourth quarter revenue for the fiscal year of 2022 came to $184.1 million, representing a year-over-year increase of 94% on as-reported basis. Total “On-Device Media” revenue, revenue from Digital’s Content Media and Application Media platform products, rose by 22% to $119 million.
Before intercompany eliminations, the total revenue for its two “In-App Media” sections rose by 16% on pro forma basis.
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