By Connor Hart
Shares of Digital Turbine plummeted after the company slashed its fiscal-year revenue outlook and posted lower-than-expected earnings in its fiscal second quarter.
The stock was down 46%, to $1.75, in after-hours trading Wednesday. Shares had fallen by more than half year-to-date when the market closed.
The on-demand media platform said after the closing bell that it now expects revenue between $475 million and $485 million in its fiscal 2025, down from a prior outlook of between $540 million and $560 million. Analysts polled by FactSet guided for fiscal-year revenue of $547.1 million.
Chief Executive Bill Stone said headwinds during the recent quarter were more significant than the company anticipated, resulting in its lowered guidance.
Digital Turbine also on Wednesday initiated a transformation program which will target more than $25 million in annual cash expense savings.
In its fiscal second quarter, revenue fell 17%, to $118.7 million, missing the $125.8 million that analysts surveyed by FactSet expected.
The Austin, Texas, company's net loss narrowed to $25 million, or 24 cents a share, compared with $161.5 million, or $1.61 a share, in the same quarter a year ago. Last year's quarter included a $147.2 noncash goodwill impairment charge.
Adjusted earnings were 5 cents a share. Analysts were looking for 6 cents, according to FactSet.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
November 06, 2024 18:16 ET (23:16 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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