2021 Strategy Series: Digital Turbine – APPS
Vested with initial price at US$38.30.
This is a new series that I am doing in 2021 as commented in this post. It is meant to be written in a way to maximize research with minimum words. If you have any questions, do comment here or on the FB page, email us, or find us in the Fundamental Scorecard Telegram Group.
It will be written as per analysis method indicated in this post.
The first company of this series is Digital Turbine Inc.
Part 1 – What the Company Does?
This was taken directly from this post from SeekingAlpha by Cobiaman as I felt it really explains parts of the company.
“Digital Turbine is the middleman between service providers and advertisers who put apps on phones. The company negotiates the rates for app placement with advertisers, collects the money, and then remits about 60% to the service providers...while keeping the rest…With SingleTap, when the Starbucks ad shows up in your game, you click on it and bingo, you have downloaded the Starbucks app and stayed in the game that you were playing…Mobile Posse is a media product that goes natively on a phone and includes news, weather, sports, and ads…”
In short, the company works with OEMs and service providers via (1) Dynamic Installs that install rooted apps into your android phone, (2) Single Tap allows users to install apps through a click of an advertisement, and (3) acquired Mobile Posse where a media product can goes natively into your phone where it includes news, weather, sports and ads.
Part 2: The Segment of Fundamental Scorecard That Caught My Eyes
Fundamental Scorecard is a visualization tool that simplify all quantitative information into graphs while calculating the intrinsic value using timeless theories, and providing conclusions about the company for the reader to have an easier time to make decision. (If you are interested, do click on this link).
- Over 100% Revenue Growth Currently + Turned Profitable
- 500+ M users + Growing outside of US
- Monopoly within its own Android space
- Works only on Android
- 5G requires new phones to access. Phone without 5G hardware cannot gain access to faster internet.
- Google, OEM or Service provide cuts their partnership with the Company.
Maybe it is good to post your research when you made your initial purchase rather than now, when the price has doubled. It shows your lack of confidence in your research or mostly hindsight analysis. No offence, just an observation.ReplyDelete
Hi Anonymous, the research then and now didn't change. I still have confident in the company but rather than telling people to fomo into buying now, I believe it is important to wait for the results to be out on 3rd Feb (which is a few days away) before deciding. If I was having a lack of confidence, I will have sold. But I still believe in the company. Rather it is because of the board spectrum of the rise in whole market that make me concern.Delete