Digital Turbine, Inc. (NASDAQ:APPS) Q1 2021 Earnings Conference Call August 5, 2020 4:30 PM ET Company Participants Brian Bartholomew - SVP, Capital Markets and Strategy Bill Stone - CEO Barrett Garrison - CFO Conference Call Participants Tim Horan - Oppenheimer. Darren Aftahi - Roth Capital Partners Anthony Stoss - Craig-Hallum Austin Moldow - Canaccord Lee Krowl - B. Riley FBR Jon Hickman - Ladenburg Operator Good afternoon. And welcome to the Digital Turbine Conference Call. All participants will be in a ...

Emerging Growth Company ☐ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-35958 DIGITAL TURBINE, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 22-2267658 (State or Other Jurisdiction of In ...

Financial Data and Key Metrics Changes - For fiscal year 2020, the company reported revenue of $138.7 million, representing over 30% annual growth, and adjusted EBITDA of $19.6 million, which is over 100% annual growth [10][22] - In Q4, revenue reached $39.4 million, up 45% year-over-year, with adjusted EBITDA of $5.3 million, a 59% increase [22] - Gross profit grew 39% to $15.8 million in Q4, with a gross margin of 40% [23] Business Line Data and Key Metrics Changes - The application media business grew 27% excluding Mobile Posse contributions, while international business revenue increased over 85% in the quarter [22][23] - Revenue per device (RPD) for U.S. partners increased by 32% year-over-year, approaching $3.20 [10][22] - The content media business, which includes Mobile Posse revenues, is expected to enhance overall margins and revenue streams [11][56] Market Data and Key Metrics Changes - The company has seen a significant increase in international partner revenues, which now contribute approximately 20% of application media revenues, up from 9% a year ago [14] - The company has installed its Ignite software on over 400 million devices globally, with a growth of 150 million devices in the fiscal year [10][12] Company Strategy and Development Direction - The company is focusing on diversification across business partners, products, and geographies, reducing reliance on any single variable for success [12][19] - The integration of Mobile Posse is a strategic move to enhance content offerings and cross-selling opportunities [11][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience during the COVID-19 pandemic, noting strong demand from advertisers and robust device supply [8][17] - The company anticipates continued growth in Q1 2021, expecting revenue between $47 million and $50 million and adjusted EBITDA between $8 million and $10 million [27] Other Important Information - The company exited Q4 with $21.5 million in cash and generated $11.8 million in free cash flow for the quarter [26] - The Mobile Posse acquisition contributed nearly $5 million in revenue for the month it was included in Q4 results [70] Q&A Session Summary Question: Update on Samsung rollout and its impact - Management reported strong progress with Samsung, with over 10 million devices on the platform and significant growth potential in Latin America [32] Question: Cross-selling opportunities with Mobile Posse - Management remains optimistic about cross-selling Mobile Posse's products into existing client bases and vice versa [34] Question: Cadence of core apps business during the pandemic - Management noted an accelerating cadence in business performance, with May showing better results than April, driven by strong demand in streaming and gaming sectors [38] Question: Status of SingleTap partnerships - Management indicated improved conversion rates and operational progress with SingleTap, leading to positive results [42] Question: Advertiser demand breakdown - Management highlighted a mix of new and existing advertisers increasing their spending, particularly in international markets [54] Question: Margin improvement levers - Management discussed expected synergies from the Mobile Posse acquisition, estimating around $1 million in cost synergies [56] Question: Trajectory of Telefonica partnership - Management expects Telefonica to follow a gradual growth trajectory similar to other partners, with steady build-up over time [58] Question: Tax benefit clarification - The tax benefit recorded was a non-cash adjustment related to the Mobile Posse acquisition [62] Question: Mobile Posse gross margin expectations - Management anticipates a 2-3 percentage point improvement in margins from the Mobile Posse integration [65]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2020 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-35958 | --- | --- | |------------------------------------------------------------------------------------------------|------------------------------------------| | DIGITA ...

Digital Turbine, Inc. (NASDAQ:APPS) Q3 2020 Earnings Conference Call February 10, 2020 4:30 PM ET Company Participants Bill Stone - CEO Barrett Garrison - CFO Brian Bartholomew - SVP of Capital Markets Conference Call Participants Mike Malouf - Craig Hallum Darren Aftahi - ROTH Capital Partners Austin Moldow - Canaccord Lee Krowl - B. Riley FBR Jon Hickman - Ladenburg Thalmann Allen Klee - National Securities Corporation Operator Good afternoon and welcome to the Digital Turbine Third Quarter Fiscal 2020 Ea ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2019 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-35958 DIGITAL TURBINE, INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 22-2267658 (State or Other Jurisdiction of Incorporation or Organiz ...

Digital Turbine Inc., (NASDAQ:APPS) Q3 2019 Results Conference Call November 4, 2019 4:30 PM ET Company Participants Brian Bartholomew - Investor Relations William Stone - Chief Executive Officer Barrett Garrison - Chief financial Officer Conference Call Participants Michael Malouf - Craig-Hallum Capital Group Darren Aftahi - ROTH Capital Partners Austin Moldow - Canaccord Lee Krowl - B. Riley FBR Jon Hickman - Ladenburg Thalmann Operator Good day, and welcome to the Digital Turbine's Second Quarter Fiscal ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) The report presents unaudited consolidated financial statements for the quarter and six months ended September 30, 2019 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2019 (Unaudited) | Mar 31, 2019 | | :--- | :--- | :--- | | **Total Current Assets** | $53,530 | $37,123 | | **Total Assets** | **$102,222** | **$82,861** | | **Total Current Liabilities** | $51,545 | $38,308 | | **Total Liabilities** | **$53,655** | **$46,503** | | **Total Stockholders' Equity** | **$48,567** | **$36,358** | - Total assets grew to **$102.2 million** from $82.9 million at March 31, 2019, primarily driven by a significant increase in cash from $10.9 million to **$25.2 million**[5](index=5&type=chunk) [Consolidated Statements of Operations and Comprehensive Income / (Loss)](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%2F%20(Loss)) Statement of Operations Summary - Three Months Ended Sep 30 (in thousands, except per share amounts) | Metric | 2019 | 2018 | % Change | | :--- | :--- | :--- | :--- | | Net Revenues | $32,795 | $23,854 | 37.5% | | Gross Profit | $12,305 | $7,544 | 63.1% | | Income from Operations | $3,115 | $315 | 888.9% | | Net Income / (Loss) | $(1,425) | $1,712 | -183.2% | | Diluted EPS | $(0.02) | $0.02 | -200.0% | - The company reported a **net loss of $1.4 million** for the quarter, a significant shift from a net income of $1.7 million in the prior-year period, primarily driven by a **non-cash charge of $4.5 million** related to the change in fair value of warrant liability[6](index=6&type=chunk) [Consolidated Statements of Cash Flows](index=5&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary - Six Months Ended Sep 30 (in thousands) | Cash Flow Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net cash from operating activities (continuing) | $11,764 | $(157) | | Net cash used in investing activities (continuing) | $(1,805) | $(1,085) | | Net cash provided by financing activities | $4,813 | $110 | | **Net change in cash** | **$14,260** | **$(4,271)** | - Cash from continuing operations showed a strong positive turnaround to **$11.8 million** for the six-month period, compared to a use of $0.2 million in the prior year, indicating improved operational efficiency[7](index=7&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the company's single 'Advertising' segment, discontinued operations, customer concentration, and credit facility terms - The company operates as a single reportable segment, **Advertising**, focused on its Operator and OEM (O&O) business through its Ignite™ platform[12](index=12&type=chunk) - In April 2018, the company divested its Direct Carrier Billing (Content) and Advertising and Publishing (A&P) assets, which are now classified as **discontinued operations**[46](index=46&type=chunk)[47](index=47&type=chunk)[49](index=49&type=chunk) - The company has significant customer concentration, with **Verizon Communications (19.6%)** and **GSN Games (10.9%)** being major revenue sources for the six months ended Sep 30, 2019[41](index=41&type=chunk)[43](index=43&type=chunk) - As of September 30, 2019, all convertible notes have been extinguished, and the company maintains an undrawn **$20 million revolving credit facility**[66](index=66&type=chunk)[68](index=68&type=chunk)[73](index=73&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong revenue growth, margin expansion, and improved liquidity despite a net loss from non-cash charges [Results of Operations](index=31&type=section&id=Results%20of%20Operations) - Net revenues for the three and six months ended September 30, 2019, **increased by 37.5% and 37.8%** respectively, driven by demand for the Ignite service[131](index=131&type=chunk)[132](index=132&type=chunk) - Gross margin percentage **increased to 37.5%** for the quarter from 31.6% in the prior year, attributed to an improved mix of partner diversification and higher-margin revenue[138](index=138&type=chunk) - Operating expenses **rose 27.1%** for the quarter, driven by increased sales, marketing, and general and administrative costs to support global expansion and growth[139](index=139&type=chunk)[141](index=141&type=chunk)[142](index=142&type=chunk) - A **$4.5 million loss** from the change in fair value of warrant liability, due to an increase in the company's stock price, significantly impacted 'Total interest and other income / (expense)'[143](index=143&type=chunk)[149](index=149&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) - As of September 30, 2019, the company had a strong liquidity position with **$25.3 million in cash** and restricted cash and no outstanding debt[150](index=150&type=chunk) - Net cash provided by continuing operating activities was **$11.8 million** for the six months ended September 30, 2019, a substantial improvement from a net cash use of $0.2 million in the prior year[151](index=151&type=chunk) - The company's senior secured credit facility was increased to **$20 million**, remained undrawn as of September 30, 2019, and the company was in compliance with all covenants[158](index=158&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include interest rate fluctuations on its credit facility and foreign currency exchange risk - The company is exposed to interest rate risk through its variable-rate credit facility, where a hypothetical **100 basis point increase** would raise annual interest expense by $0.01 million for every $1 million of debt[167](index=167&type=chunk) - **Foreign currency exchange risk** exists due to international revenues and expenses, with a potential disproportionate impact on operating income as most media costs are billed in U.S. dollars[168](index=168&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2019 - Management, including the CEO and CFO, concluded that the company's **disclosure controls and procedures were effective** as of the end of the reporting period[170](index=170&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter that would be reasonably likely to materially affect these controls[171](index=171&type=chunk) [PART II - OTHER INFORMATION](index=38&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company notes potential financial exposure related to the settlement of assets from its discontinued Pay business - The company notes a potential financial exposure related to the settlement of assets and liabilities from the disposition of the **Pay business**, as detailed in Note 4, "Discontinued Operations"[171](index=171&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) No material changes were reported to the risk factors disclosed in the company's latest Annual Report on Form 10-K - There are **no material changes** from the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended March 31, 2019[171](index=171&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - **None reported** for the period[172](index=172&type=chunk) [Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including required officer certifications and XBRL data files - The report includes required **certifications from the Principal Executive Officer and Principal Financial Officer**, along with XBRL instance documents[172](index=172&type=chunk)

Digital Turbine, Inc. (NASDAQ:APPS) Q1 2020 Earnings Conference Call August 5, 2019 4:30 PM ET Company Representatives Bill Stone - Chief Executive Officer Barrett Garrison - Chief Financial Officer Brian Bartholomew - Senior Vice President of Capital Markets Conference Call Participants Mike Malouf - Craig Hallum Darren Aftahi - ROTH Capital Austin Moldow - Canaccord Lee Krowl - B. Riley FBR Ilya Grozovsky - National Securities Operator Good day everyone and welcome to the Digital Turbine, First Quarter Fi ...