Digital Turbine Inc (NASDAQ:APPS) shares are trading lower Thursday after the company reported worse-than-expected financial results and issued guidance below analyst estimates.

• Q3 Revenue: $142.63 million, missed estimates of $146.21 million

• Q3 EPS: 15 cents, missed estimates of 17 cents

Total revenues were down 12% on a year-over-year basis. Net cash from operating activities totaled $11.7 million in the third quarter and the company generated $14.3 million in adjusted free cash flow.

"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," said Bill Stone, CEO of Digital Turbine.

Outlook: Digital Turbine sees full-year 2024 revenue in the range of $547 million to $553 million versus estimates of $572.46 million. The company anticipates full-year adjusted earnings of 50 cents to 54 cents per share versus estimates of 61 cents per share.

"Recent regulatory and legislative news, along with the soon-to-be-effective Digital Markets Act in the European Union, are drawing global operators, OEMs, and app publishers to our advantageously positioned direct distribution platform offerings," Stone said.

"We are making positive progress in this area, inclusive of key strategic investments, and look forward to converting this progress into future growth for the Company in calendar 2024 and beyond."

Following the print, Roth MKM analyst Darren Aftahi maintained Digital Turbine with a Neutral rating and lowered the price target from $5.50 to $4.50.

APPS Price Action: Digital Turbine shares were down 20.5% at $4.01 at the time of writing, according to Benzinga Pro.

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