Interview: Why Digital Turbine Is a Competitively Advantaged Ad Platform (Ticker: APPS)
This week on the podcast we interviewed Fundasy Investor (Twitter nickname) on Digital Turbine, an advertising and promotional platform for smartphones. Here are some questions we asked him:
What is Digital Turbine? What attracted you to this investment?
Can you go through the history of Digital Turbine? The heavy acquisition strategy can be hard to understand at first. How have these led to Digital Turbine’s product suite getting to where it is today?
Why would an advertiser/company choose Digital Turbine for advertising over Google, Facebook, the Trade Desk, etc.? Who would you consider their primary competitors?
Management thinks Single Tap can hit $1 billion in revenue. Why does this have so much potential?
Why did revenue decline last quarter? Do you believe this is temporary or something to be concerned about? Are they still on track for $4 billion in revenue you think?
Does Digital Turbine have any competitive advantages? Why do you see them as a “friendly middleman” and what are the benefits of that?
Thoughts on management
Thoughts on valuation/price today
Pre-mortem: Why would an investment in Digital Turbine perform poorly?
Disclosure: The author and podcast guests are not your financial advisors. Ryan Henderson and Brett Schafer are general partners and portfolio managers at Arch Capital. Clients of Arch Capital may hold securities discussed on this show.