Shares of Digital Turbine (NASDAQ: APPS) dropped like a rock on Thursday morning after the advertising technology (adtech) company reported financial results that disappointed the market. As of 11:15 a.m. ET, Digital Turbine stock was down 23%.

In the third quarter of its fiscal 2023, Digital Turbine generated revenue of $162.3 million. Not only was this a troubling year-over-year drop of 25% but it also dramatically underperformed management's revenue guidance of $180 million to $190 million. The company operates around the world. And depending on which market we're talking about, advertising rates -- measured with effective cost per mille, or the cost per thousand ad impressions -- dropped 10% to 20% from last year, which is more than management expected.

Digital Turbine's software comes preinstalled on the mobile devices of its carrier partners. And the good news is that, during Q3, the company renewed its partnership with AT&T for three years and with Verizon for four years. Therefore, expect its software to get loaded onto more mobile devices in the future, providing ongoing revenue-generation opportunities.

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Source Fool.com