APPS Q2 2025: International RPD Growth Offsets U.S. Volume Drop
Reported on Jun 16, 2025 (After Market Close)
Pre-Earnings Price$3.24Last close (Nov 6, 2024)
Post-Earnings Price$1.91Open (Nov 7, 2024)
Price Change
$-1.33(-41.05%)
- New Partner Expansion: The Q&A indicates that new device supply partners, including a recent Tier 1 U.S. operator, are beginning to grow the device supply despite soft U.S. volumes, supporting future revenue expansion.
- International Revenue Growth: The executives highlighted that revenue per device (RPD) is showing improvements outside the U.S., suggesting that international markets could drive stronger high-margin growth.
- Enhanced Performance Advertising: The management is leveraging its first-party data through initiatives like Ignite, Appreciate, and DT Direct, which are being enhanced by AI and machine learning capabilities to improve brand performance on its advertising platform.
- Declining U.S. Device Supply and Software Updates: Concerns were raised about diminished domestic device volumes and reduced software updates, which could lead to lower revenue per device in the U.S. market.
- Underperformance in Performance Advertising: Management acknowledged that their legacy performance advertising and corresponding bidding capabilities are lagging, suggesting that this segment remains a major risk.
- Uncertainty Over Strategic Alternatives: When asked about exploring strategic alternatives, management emphasized execution over strategic shifts, hinting at potential reluctance to adjust strategy in light of ongoing challenges.
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RPD & Strategy
Q: How did RPD perform and board's alternatives?
A: Management explained that international RPD improved while U.S. RPD fell slightly due to fewer software updates, and they are focused on executing their strategy rather than exploring strategic alternatives at this time. -
Activation & Ad Share
Q: Why decline in phone activation and ad share?
A: Management noted declining U.S. device volumes led to reduced phone activations, and while new partner relationships help, challenges remain with legacy DSPs optimizing supply paths.