The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Digital Turbine, Inc. (“Digital Turbine” or “the Company”) (NASDAQ: APPS) for violations of the securities laws.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Digital Turbine issued a press release on May 17, 2022, disclosing that “it will restate its financial statements for the interim periods ended June 30, 2021, September 30, 2021, and December 31, 2021, following a review of the presentation of revenue net of license fees and revenue share for the Company’s recently acquired businesses.” The Company explained, “The revenue for certain product lines of the recently acquired businesses, which are separate reportable segments, will now be reported net of license fees and revenue share, rather than on a gross basis, as had been previously reported. The changes have the offsetting effect of decreasing both revenue and license fees and revenue share in a like amount, while simultaneously increasing reported gross profit margin and Non-GAAP Adjusted EBITDA margin, in the interim financial statements for each relevant period. There is no change to the previously reported GAAP income from operations, GAAP net income/loss, Non-GAAP gross profit, Non-GAAP Adjusted EBITDA and Non-GAAP free cash flow results. Restated interim consolidated financial statements for each of the affected quarters will be filed as amendments to the respective Company’s Form 10-Q filings with the Securities and Exchange Commission on or before May 31, 2022.” Based on this news, shares of Digital Turbine fell by more than 7% on May 18, 2022.
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