Digital Turbine Inc (NASDAQ: APPS) was recently picked by Amazon.com, Inc. (NASDAQ: AMZN) as the online retailer’s exclusive app distribution services provider for select regions. Specifically, those regions are Mexico and India.
But when it comes to doing business with major brands such as Amazon, sometimes the potential benefits can run deeper. In this case, the contract with Amazon could open up more large contracts for APPS, thus fueling rapid revenue and bottom-line improvements.
Are there more premium deals in the offing?
Digital Turbine Inc (NASDAQ: APPS)’s CEO, Bill Stone, recently hinted that the best moments for the company were still ahead. He talked about the global mobile operators and OEMs are fragmented and how major brands are looking for opportunities to overcome the limits of the industry fragmentation. Demand for the kind of solutions that APPS renders are particularly high when premium brands such as Amazon are looking to reach developing markets in Latin America and Asia.
Ready to ride the wave
According to Digital Turbine Inc (NASDAQ: APPS)’s CEO Stone, the investments they have made in the recent years have positioned them well to provide large companies with the solutions they need to penetrate the fragmented global markets. Recent years have seen APPS expand its global footprint.
Supporting up distribution
In Mexico and India, APPS will back Amazon’s app distribution services by making it easier for customers in the regions to discover and download the Amazon app they need.
Tapping of Digital Turbine Inc (NASDAQ: APPS) is part of Amazon’s campaign to make shopping on its marketplaces convenient for customers. Amazon also hopes that the partnership with APPS will save its customers the time they need to download apps to enjoy its services.
Among other things, APPS will support dynamic preloads, push notifications and install retargeting for Amazon customers.
Digital Turbine Inc (NASDAQ: APPS), overcoming losses
Beyond the premium names that Digital Turbine Inc (NASDAQ: APPS) adds to its customer roster, investors will be watching closely to see who its topline and bottom-line figures transform. APPS logged EPS loss of $0.09, missing the consensus estimate of EPS loss of $0.01. But revenue rose 124.8% YoY to $23 million, just in-line with the consensus estimate.