Digital Turbine (APPS) shares are having a moment. The mobile technology company reported its first-quarter results after the bell on Tuesday, and investors clearly liked what they saw. The stock jumped 17.2% to $11.15 in after-hours trading, a nice pop for a company that has seen its share price swing wildly over the past year.

So what got the market so excited? Let's break it down.

Digital Turbine Q1 Earnings

Digital Turbine delivered first-quarter revenue of $166 million, up 27% year-over-year. That's a solid beat against the Street consensus estimate of $150 million, according to market data.

The company's On Device Solutions segment brought in $110 million in net revenue, up 15% year-over-year. Meanwhile, the App Growth Platform pulled in $56.6 million, a 56% jump from the same period last year.

Earnings came in at 19 cents per share, beating the consensus estimate of 14 cents. Not too shabby.

CEO Bill Stone was upbeat about the results. "Our strong first quarter results reflect an encouraging start to the new fiscal year and position the company for sustained success moving forward," he said.

What's Next for Digital Turbine

Looking ahead, Digital Turbine is raising its full-year revenue guidance to a range of $650 million to $670 million, up from the previous range of $630 million to $650 million. Analysts had been expecting full-year revenue of $642.19 million, so the new guidance is a clear upgrade.

The company also provided adjusted EBITDA guidance for the full year in the range of $145 million to $155 million.

Stone highlighted AI as a key driver of the improved performance. "One key tailwind helping to drive this improved performance is our ability to successfully leverage AI partnerships and tools to optimize the value of our vast data sources as a means of driving better results for platform partners and advertisers," he said.

According to Stone, AI has helped the company attract new partners and advertisers while also improving yields on advertising spend. That's a compelling narrative in a market where AI is the buzzword du jour.

APPS Stock Price Action

Digital Turbine stock is up 17.2% to $11.15 in after-hours trading Tuesday. That's a big move, but the stock still has a long way to go to reclaim its 52-week high of $13.60. The 52-week low is $2.74, so it's been a wild ride.

For investors, the question is whether this momentum can hold. The raised guidance and strong Q1 suggest the company is on the right track, but the stock's volatility means there's no guarantee. Still, for a company that's been through the wringer, this is a welcome change of pace.