Loading...
01/10 17:53
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals strong financial performance with 18% revenue growth and 78% EBITDA growth. Raised guidance and strategic investments in AI and international markets are promising. The Q&A confirms positive sentiment with analysts appreciating growth in brand business and AI initiatives. The company benefits from regulatory changes and less competition. While there are geopolitical risks, the overall outlook is positive, suggesting a stock price increase in the 2% to 8% range.
Revenue $140.4 million, representing 18% year-over-year growth. The growth was driven by strong demand for the platform and disciplined operational execution.
Adjusted EBITDA $27.2 million, up 78% year-over-year. This demonstrates significant operating leverage in the model as the company scales.
On Device Solutions (ODS) Revenue $96 million, up approximately 17% year-over-year. Growth was driven by higher device volumes and revenue per device, particularly from international partners. International ODS revenue surged more than 80% year-over-year.
Application Growth Platform (AGP) Revenue $45 million, up 20% year-over-year. Growth was attributed to higher advertiser demand, improved pricing and fill rates, and increased supply volumes.
Free Cash Flow $7 million, an improvement of nearly $23 million year-over-year. This improvement reflects better operational efficiencies and cost control.
Non-GAAP Gross Margin 47%, representing an improvement of 200 basis points compared to the same period last year. This was driven largely by product and segment mix.
Cash Operating Expenses $38.9 million, flat year-over-year. This reflects progress in cost control and operational discipline.
DT Ignite graph and DTiQ: Scaling AI-driven decisioning platforms to unlock precision and scale for advertisers, providing alternatives to closed ecosystems.
SingleTap technology: Grew 45% sequentially, enabling publishers to distribute applications with a simple user experience.
International ODS revenue: Achieved record high, surging over 80% year-over-year, with international revenues exceeding 25% of total ODS revenues for the first time.
Direct brand engagement: Direct brands accounted for 47% of total brand revenue, up from 22% in the prior quarter, driven by retail and consumer packaged goods categories.
Revenue growth: Total revenue for the quarter was $140.4 million, up 18% year-over-year, with ODS and AGP segments growing 17% and 20% respectively.
Adjusted EBITDA: Achieved $27.2 million, up 78% year-over-year, with EBITDA margin expanding for the sixth consecutive quarter to 19.4%.
Free cash flow: Improved by nearly $23 million year-over-year, reaching $7 million in the second quarter.
Debt refinancing: Completed a new 4-year term loan facility, providing flexibility and a stronger balance sheet to support growth initiatives.
First-party data and AI investments: Progress in leveraging first-party data and AI-driven capabilities for smarter targeting and improved user experiences.
Debt Refinancing: The company has successfully completed a debt refinancing with a new 4-year term loan facility. While this provides additional flexibility and strengthens the balance sheet, the total debt remains significant at $396 million, which could pose financial risks if growth projections are not met or if market conditions worsen.
Regulatory Momentum: The company is leveraging regulatory changes to offer alternative app distribution models. However, regulatory shifts in different geographies could introduce compliance challenges and operational complexities.
Dependence on International Growth: A significant portion of revenue growth is driven by international markets, particularly in the On Device Solutions (ODS) segment. This dependence on international markets exposes the company to geopolitical risks, currency fluctuations, and regional economic uncertainties.
First-Party Data and AI Investments: The company is heavily investing in first-party data and AI-driven capabilities. While these are strategic priorities, the success of these investments is uncertain and could impact financial performance if they fail to deliver expected returns.
Macroeconomic Environment: The company acknowledges a shifting macroeconomic environment favoring direct distribution and alternative app distribution models. However, broader economic uncertainties could impact advertiser demand and consumer spending, affecting revenue growth.
Revenue Guidance for Fiscal Year 2026: The company has raised its full-year revenue guidance to a range of $540 million to $550 million, representing an increase of $12.5 million compared to the prior outlook.
Adjusted EBITDA Guidance for Fiscal Year 2026: The adjusted EBITDA guidance has been raised to a range of $100 million to $105 million, reflecting an increase of $9 million compared to the previous guidance.
Growth Drivers: The company expects continued growth driven by higher advertiser demand, increased supply volumes, and advancements in first-party data and AI-driven capabilities. These factors are anticipated to enhance pricing, fill rates, and user targeting.
Strategic Investments: Investments in first-party data and AI-driven decision-making platforms, branded as DT Ignite graph and DTiQ, are expected to unlock new levels of precision and scale, serving as major growth drivers for the business.
Market Trends: The company anticipates favorable macro trends, including regulatory momentum supporting alternative app distribution models and increased brand engagement on its platform, particularly in retail and consumer packaged goods categories.
International Growth: International revenues are expected to continue growing, with international ODS revenue already exceeding 25% of total ODS revenues and showing 80% year-over-year growth.
The selected topic was not discussed during the call.
The earnings call reveals strong financial performance with 18% revenue growth and 78% EBITDA growth. Raised guidance and strategic investments in AI and international markets are promising. The Q&A confirms positive sentiment with analysts appreciating growth in brand business and AI initiatives. The company benefits from regulatory changes and less competition. While there are geopolitical risks, the overall outlook is positive, suggesting a stock price increase in the 2% to 8% range.
The earnings call reflected strong financial performance, with significant growth in revenue and EBITDA, improved margins, and cost discipline. The company is leveraging new partnerships and first-party data for expansion, with positive guidance for fiscal 2026. The Q&A section highlighted growth in international markets and optimism around regulatory changes. Despite some uncertainties in the AGP business, the overall sentiment is positive, suggesting a likely 2% to 8% stock price increase over the next two weeks.
The earnings call presents a mixed picture. Positive cash flow and improved operational efficiencies are offset by competitive pressures and significant debt. Revenue growth is modest, and while non-GAAP net income is positive, it shows a decline from the previous year. The Q&A reveals favorable regulatory conditions but lacks clarity on some metrics. Overall, the strong financial metrics are tempered by risks and uncertainties, leading to a neutral sentiment.
The earnings call shows mixed signals: positive revenue growth, cost control, and international expansion, but concerns over competitive pressures, regulatory risks, and unclear guidance. The lack of shareholder return initiatives and declining gross margins offset some positives. Q&A reveals optimism but lacks clarity on strategic execution. Overall, these factors balance out, resulting in a neutral outlook for the stock price in the short term.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
