By Rob Curran
Shares of Digital Turbine took a plunge recently as the mobile-advertising services provider reported a loss for the fiscal third quarter and delivered a growth forecast that fell short of investors’ expectations.
The Austin, Texas-based digital-ad services firm suffered a loss of $14.1 million, or 14 cents a share, for the quarter that ended in December. This is in stark contrast to the profit of $4.02 million, or 4 cents a share, it achieved in the same period the previous year.
Looking ahead to the year ending in March, Digital Turbine projected adjusted earnings of 50 to 54 cents a share, with revenue ranging from $547 million to $553 million.
According to Chief Executive Bill Stone, “Weaker U.S. device upgrade rates and temporary platform consolidation factors represent near-term headwinds, but in no way impact our broader outlook on the tremendous market opportunity in front of us, particularly with respect to the prevailing winds of change in the alternative app distribution world.”
In response to these disappointing results, shares of Digital Turbine fell by 17% to $4.16 in premarket trading, reflecting a decline of over 50% in the last six months.