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Digital Turbine (APPS) Inks Multi-Year Deal with Google

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Digital Turbine (APPS - Free Report) recently entered into a multi-year strategic partnership with Alphabet’s (GOOGL - Free Report) Google.

The collaboration is expected to accelerate Digital Turbine’s growth strategy and product portfolio to support the Android ecosystem.

Per this agreement, Digital Turbine will work with Google Cloud’s premier partner, SADA Systems. This will enable Digital Turbine to implement Alphabet-owned Google’s enterprise and cloud solutions into its platform.

The strategic partnership with Alphabet’s Google will help Digital Turbine to build products for the Android devices and expand its global footprint in the Android mobile ecosystem, which includes mobile, connected devices and TV.

Focus on Global Footprint Expansion

Digital Turbine is focused on expanding its global reach, entering new markets and increasing customer base.

To follow through with its aim, the company has been expanding its partner base to bring in services and solutions catering to the consumers’ changing preferences.

Recently, Digital Turbine expanded its existing partnership with Telefonica (TEF - Free Report) , one of the biggest global telecommunications service providers.

The Digital Turbine-Telefonica partnership that spans over the European and Latin-American markets adds new products, such as Notifications, SingleTap and Wizard, to Digital Turbine’s existing portfolio.

Digital Turbine has been working with Telefonica to expand and launch its Ignite On-Device Platform across the aforementioned markets. The integration of the platform has already been initiated and is expected to be introduced in fourth-quarter 2021, by Movistar Chile. Movistar is a telecommunications provider owned by Telefonica, operating in Spain and Latin America.

Broadening Product Portfolio Drives Prospects

To expand its product portfolio, Digital Turbine has been focusing majorly on mergers and acquisitions over the last few years.

In 2021, Digital Turbine made three major acquisitions, which have boosted the top line growth.

Digital Turbine recently acquired Fyber, N.V — a mobile advertising monetization platform. Through the acquisition, the company added Fyber’s product suite comprising FairBid mediation, Offer Wall Edge and Fyber Marketplace to its portfolio.

The acquisition of Fyber is a major part of Digital Turbine’s expansion strategy.

Around the same time this year, Digital Turbine completed the acquisition of AdColony — a mobile advertising platform.

Earlier this year, Digital Turbine acquired a programmatic mobile advertising DSP company, Triapodi (Appreciate). Digital Turbine has been working with Appreciate to improve the scaling of its Single-Tap functionality.

All three acquisitions cater to the company’s broader goal of providing comprehensive media and advertising solutions to its customer and partners.

In second-quarter fiscal 2022, Digital Turbine registered a 61% year-on-year growth in revenues on a pro-forma basis from the Fyber and AdColony businesses, reaching $187.2 million. During the quarter, Fyber contributed to $125.7 million to the revenues, while AdColony contributed $61.5 million.

Currently, Digital Turbine has been riding on an expanding partner base and accretive acquisitions. The company’s shares have returned 10.2% against the Zacks Internet Software industry’s decline of 20.2% and the Computer & Technology sector’s return of 27.3% year to date.

Zacks Rank and Stock to Consider

Currently, Digital Turbine holds a Zacks Rank #3 (Hold).

A better-ranked stock in the Zacks Computer and Technology sector is Pinterest (PINS - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Pinterest has a long-term earnings growth rate of 52.7%.
    
PINS has plunged 44.6% compared with the Zacks Internet Software industry’s decline of 20.2% and the Computer & Technology sector’s return of 27.3% year to date.

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