Digital Turbine, Inc. reported a decline in financial performance for the three and six months ended September 30, 2024, compared to the same periods in 2023. Net revenue for the quarter was $118.7 million, a decrease of 17.1% from $143.3 million, while revenue for the six months fell 18.3% to $236.7 million from $289.6 million. The On Device Solutions (ODS) segment contributed $82.4 million, down 16.8%, and the App Growth Platform (AGP) generated $37.3 million, a 19.1% decrease.
Despite the revenue drop, the company significantly reduced its total costs of revenue and operating expenses for the quarter to $132.3 million, down 55.3% from $295.9 million in the prior year. This led to a loss from operations of $(13.5) million, an improvement of 91.1% compared to $(152.6) million in the same quarter last year. The net loss for the quarter was $(25.0) million, compared to $(161.5) million in the prior year, reflecting an 84.5% improvement.
The company’s accumulated deficit increased to $(645.5) million as of September 30, 2024, from $(595.3) million at the end of the previous fiscal period. Total stockholders’ equity decreased to $182.4 million from $213.9 million. Long-term debt rose to $407.6 million from $383.5 million, reflecting increased borrowing costs amid rising interest rates.
Digital Turbine's strategic developments included the acquisition of the remaining minority interest in a subsidiary for $3.8 million, achieving 100% ownership. The company is also undergoing a business transformation project aimed at enhancing operational efficiency, which has incurred costs of $1.3 million in the first half of fiscal 2024. This initiative is expected to yield annual cash savings exceeding $25 million.
The company faced challenges due to macroeconomic conditions, including inflation and reduced mobile device sales, which have negatively impacted demand for its services. Management is actively monitoring these conditions and exploring cost-saving opportunities while seeking additional revenue generation.
In terms of cash flow, Digital Turbine reported net cash used in operating activities of $(10.1) million for the six months ended September 30, 2024, a significant decrease from $28.8 million in the same period last year. The company had $32.8 million in cash and cash equivalents as of September 30, 2024, down from $33.6 million at the end of March 2024.
About Digital Turbine, Inc.
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