Thread by @InvestiAnalyst

$APPS - 🔥 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

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

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?

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

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!)

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

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!🤔)

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!

8/ $APPS Analysts takeaways - #1:

B.Riley Securities Analyst notes raised PT $85

9/ $APPS Analysts takeaways - #2

Roth Capital analyst Darren Aftahi raised the firm's price target on Digital Turbine to $87 from $70

10/ $APPS Analysts takeaways - #3

Oppenheimer analyst Timothy Horan assigned a Buy and PT - $90

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

$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

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