APPS

Digital Turbine Inc

TMT


Presented:03/11/2022
Price:$34.87
Cap:$3.38B
Current Price:$3.48
Cap:$0.36B

Presented

Date03/11/2022
Price$34.87
Market Cap$3.38B
Ent Value$6.56B
P/E Ratio75.87x
Book Value$5.00
Div Yield0%
Shares O/S96.96M
Ave Daily Vol4,004,498
Short Int5.92%

Current

Price$3.48
Market Cap$0.36B
Digital Turbine, Inc. engages in the innovation of media and mobile communications which helps to deliver an end-to-end platform solution for mobile operators, application developers, device original equipment manufacturers (OEM), and other third parties. It operates through the Media Distribution segment, which consists of products and services that simplify the discovery and delivery of mobile applications and content media for consumers. The company was founded on November 6, 1998 and is headquartered in Austin, TX.

Publicly Traded Companies Mentioned Herein: AppLovin Corp (APP), AT&T Inc (ATT), Digital Turbine Inc (APPS), ironSource Ltd (IS), Meta Platforms Inc (FB), Snap Inc (SNAP), T-Mobile US Inc (TMUS), Twitter Inc (TWTR), Verizon Communications Inc (VZ)

Highlights

The presenter is long shares of Digital Turbine Inc (APPS), a $3.6B EV mobile software platform with a high ADV (~$140MM) and limited analyst coverage due to the relative maturity of its core business. The company partners with global carriers and OEMs to streamline advertising efficiency and simplify app downloading processes. The Street has APPS tripling its revenue from $1.25B to $3.75B and quadrupling EBITDA from $200MM to $800MM by 2026 thanks to accretive acquisitions with strong synergies and a patented app installation solution called SingleTap. Both the presenter and management are above this, expecting the company to reach $4B of revenue and $1B of EBITDA in 3 - 5 years. He models APPS hitting those numbers in CY2026, which is the back end of that range, to stay conservative. He then applies a 12.5x multiple to $1B of 2026 EBITDA, yielding a price target of $95/share by 2023.

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Idea Discussion

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