Key Points Company and Industry Overview - **Company**: Digital Turbine, Inc. (NASDAQ:APPS) - **Industry**: Mobile advertising and app monetization - **Focus**: Providing end-to-end solutions for advertisers and app publishers to monetize mobile devices throughout their lifecycle Core Views and Arguments - **Market Growth**: The mobile advertising market is expected to grow from $300 billion to $0.5 trillion over the next few years. - **Tailwinds**: - **Secular Trends**: Increasing app usage and media dollars following consumer attention. - **Regulatory Environment**: Favorable regulations promoting customer choice and competition. - **Growth Drivers**: - **Device Footprint**: Expanding reach to more devices, including Android, iOS, connected TVs, wearables, and automobiles. - **Product Offerings**: Diversifying product portfolio to include app discovery, content discovery, brand advertising, and programmatic advertising. - **Media Partnerships**: Building relationships with advertisers, brands, and app publishers to create a robust ecosystem. Other Important Points - **Acquisitions**: Digital Turbine has acquired companies like Mobile Posse, Appreciate, Fyber, and AdColony to expand its capabilities and reach. - **SingleTap**: A product that simplifies app installation by allowing users to download apps in the background while staying in their current app experience. - **Synergies**: The company is seeing encouraging results from synergies between its acquired companies, including cross-selling opportunities and improved customer relationships. - **Unique Selling Proposition**: - **On-device Access**: Direct access to devices without going through intermediaries. - **Transparency and Independence**: Offering full independence and transparency to publishers. - **One-stop Shop**: Providing a comprehensive suite of solutions for advertisers and app publishers. Financials - **Revenue Growth**: Digital Turbine has experienced significant revenue growth, with a hockey stick chart showing acceleration over the past few years. - **Operating Leverage**: The company's business model provides strong operating leverage, with gross profit growing faster than revenue. - **Revenue Per Device**: Revenue per device has increased by 50% year-over-year, indicating strong demand for the company's solutions.

Digital Turbine, Inc. (NASDAQ:APPS) Q1 2022 Earnings Conference Call August 9, 2021 4:30 PM ET Company Participants Brian Bartholomew – Senior Vice President, Capital Markets and Strategy Bill Stone – Chief Executive Officer Barrett Garrison – Executive Vice President and Chief Financial Officer Conference Call Participants Darren Aftahi – ROTH Capital Partners Austin Moldow – Canaccord Allen Klee – Maxim Group Dennis LaValle – Lantern Anthony Stoss – Craig-Hallum Operator Good day, and welcome to the Digit ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Consolidated Financial Statements](index=3&type=section&id=ITEM%201.%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Recent acquisitions significantly expanded the balance sheet and revenue, while impacting cash flow from operations [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet significantly expanded due to acquisitions, with total assets growing to **$1.42 billion** and liabilities rising to **$897.3 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2021 (Unaudited) | March 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $323,786 | $97,385 | | **Goodwill** | $572,607 | $80,176 | | **Intangible Assets, net** | $488,360 | $53,300 | | **TOTAL ASSETS** | **$1,424,044** | **$260,369** | | **Total Current Liabilities** | $618,544 | $111,149 | | **Acquisition Purchase Price Liabilities** | $313,413 | $— | | **Long-term Debt, net** | $233,830 | $— | | **TOTAL LIABILITIES** | **$897,269** | **$115,257** | | **Total Stockholders' Equity** | $526,775 | $145,112 | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Net revenues surged **264%** to **$212.6 million**, driving operating income to **$19.1 million** and net income to **$14.3 million** Statement of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | | :--- | :--- | :--- | | **Net Revenues** | $212,615 | $59,012 | | **Income from Operations** | $19,145 | $10,622 | | **Net Income Attributable to Digital Turbine, Inc.** | $14,284 | $9,940 | | **Diluted Net Income Per Share** | $0.14 | $0.11 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow turned negative **$29.0 million**, while investing activities used **$131.0 million** for acquisitions, funded by **$215.1 million** in financing Cash Flow Summary (in thousands) | Activity | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | | :--- | :--- | :--- | | **Net cash provided by / (used in) operating activities** | $(28,997) | $6,012 | | **Net cash used in investing activities** | $(130,968) | $(9,243) | | **Net cash provided by financing activities** | $215,068 | $437 | | **Net change in cash** | $52,894 | $(2,936) | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) Notes detail the impact of Fyber and AdColony acquisitions, including segment reorganization, new debt, and significant earn-out liabilities - On May 25, 2021, the company acquired Fyber N.V. for an estimated aggregate consideration of up to **$600 million**, consisting of cash, common stock, and a potential earn-out of up to **$50 million**[32](index=32&type=chunk)[35](index=35&type=chunk) - On April 29, 2021, the company acquired AdColony Holding AS for an estimated total consideration of **$400-$425 million**, including cash payments and an estimated earn-out of **$200-$225 million**[43](index=43&type=chunk) - Effective April 1, 2021, the company restructured into three operating segments: On Device Media (ODM), In App Media - AdColony (IAM-A), and In App Media - Fyber (IAM-F)[54](index=54&type=chunk) Segment Profit (Net revenues less license fees and revenue share) for Three Months Ended June 30, 2021 (in thousands) | Segment | Net Revenues | License Fees & Revenue Share | Segment Profit | | :--- | :--- | :--- | :--- | | On Device Media (ODM) | $120,383 | $70,031 | $50,352 | | In App Media - AdColony (IAM-A) | $44,937 | $30,194 | $14,743 | | In App Media - Fyber (IAM-F) | $49,641 | $40,469 | $9,172 | | **Total** | **$212,615** | **$138,348** | **$74,267** | - The company entered into an amended credit agreement for a revolving line of credit up to **$400 million** to finance acquisitions, with **$237.1 million** drawn as of June 30, 2021[83](index=83&type=chunk)[84](index=84&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=23&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses revenue growth driven by acquisitions, increased expenses, and substantial future payment obligations [Results of Operations](index=26&type=section&id=MD%26A%20-%20Results%20of%20Operations) Net revenues increased **264.3%** YoY, driven by organic growth and contributions from AdColony and Fyber, while operating expenses rose **300%** due to acquisitions Net Revenues by Segment (in thousands) | Segment | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | % of Change | | :--- | :--- | :--- | :--- | | On Device Media | $120,383 | $59,012 | 104.0% | | In App Media - AdColony | $44,937 | $— | 100.0% | | In App Media - Fyber | $49,641 | $— | 100.0% | | **Total Net Revenues** | **$214,961** | **$59,012** | **264.3%** | - The On Device Media segment's revenue growth was due to increased demand, higher CPI/CPP revenues, and expanded distribution with new and existing partners[136](index=136&type=chunk) - License fees and revenue share increased at a greater rate than revenues (**328.3%** vs **264.3%**) because the acquired businesses have higher contractual revenue share percentages than the legacy business[141](index=141&type=chunk) - General and administrative expenses increased **242.4%** due to higher headcount, increased bonus accruals, and amortization of intangible assets from the AdColony and Fyber acquisitions[146](index=146&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=MD%26A%20-%20Liquidity%20and%20Capital%20Resources) Liquidity sources include **$84.0 million** cash and **$162.9 million** credit facility availability, offset by significant future acquisition payment obligations - Primary liquidity sources are cash from operations and debt. As of June 30, 2021, cash totaled approximately **$84.0 million**, with **$162.9 million** available under the New Credit Agreement[151](index=151&type=chunk) - The company has recognized an acquisition purchase price liability of **$313.4 million**, comprising **$100 million** in unpaid cash consideration and **$213.4 million** in estimated contingent earn-out consideration for the AdColony acquisition[154](index=154&type=chunk) - Cash flow from operations was negative **$(29.0) million** for the quarter, a decrease of **$35.0 million** YoY, primarily due to significant increases in accounts receivable and decreases in accrued compensation related to the recent acquisitions[160](index=160&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=31&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces market risks primarily from variable interest rates on debt and foreign currency exchange rate fluctuations - Borrowings under the credit facility are subject to variable interest rates, exposing the company to interest rate fluctuations. A hypothetical **100 basis point** increase in rates would increase annual interest expense by **$0.01 million** for every **$1 million** of outstanding debt[167](index=167&type=chunk) - The company has foreign currency risks from revenues and expenses denominated in non-U.S. dollar currencies. As foreign operations expand, results may be more impacted by exchange rate fluctuations[169](index=169&type=chunk) [Controls and Procedures](index=32&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded disclosure controls were effective, while integrating new acquisitions into internal control over financial reporting - Based on an evaluation, the CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[171](index=171&type=chunk) - The company is integrating the acquisitions of Fyber N.V. and AdColony Holdings, AS into its internal control over financial reporting[172](index=172&type=chunk) [PART II - OTHER INFORMATION](index=33&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=33&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company reported no material legal proceedings - None[174](index=174&type=chunk) [Risk Factors](index=33&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces significant risks from integrating acquisitions, intense competition, data privacy regulations, and substantial new debt [General Company Risks](index=35&type=section&id=General%20Company%20Risks) General risks include challenges in integrating recent acquisitions, managing growth, meeting future payment obligations, and revenue concentration from limited partners - The failure to successfully integrate the recent acquisitions of Appreciate, AdColony, and Fyber may adversely affect future results[204](index=204&type=chunk) - The company must pay **$100.0 million** in cash by October 29, 2021, and an estimated earn-out of **$200.0 to $225.0 million** for the AdColony acquisition, posing a financial risk if funds are not available[208](index=208&type=chunk) - A significant portion of Media Distribution business revenue is derived from a limited number of wireless carriers, and the loss of any relationship could materially harm the business[220](index=220&type=chunk)[221](index=221&type=chunk) [Risks Related to the Mobile Advertising Industry Generally](index=42&type=section&id=Risks%20Related%20to%20the%20Mobile%20Advertising%20Industry%20Generally) Risks include intense competition, dependence on mobile operating systems, potential data access restrictions (e.g., IDFA changes), and ad-blocking technologies - The mobile advertising industry is intensely competitive, with competition from large, well-established companies like Google, Facebook, and Amazon, as well as internally-developed solutions by operators and OEMs[232](index=232&type=chunk)[233](index=233&type=chunk)[234](index=234&type=chunk) - The business is highly dependent on decisions by third parties that control mobile operating systems, such as Google (Android) and Apple (iOS), which could prevent or impair the company's advertising services[243](index=243&type=chunk)[269](index=269&type=chunk) - Restrictions on the use of third-party cookies and mobile device identifiers (like Apple's IDFA) could significantly harm performance, as these are crucial for ad targeting, measurement, and effectiveness[286](index=286&type=chunk)[291](index=291&type=chunk) [Industry Regulatory Risks](index=54&type=section&id=Industry%20Regulatory%20Risks) The company faces significant compliance costs and risks from stringent global data privacy laws (GDPR, CCPA/CPRA) and international anti-corruption regulations - The company is subject to stringent data privacy laws like GDPR and the UK GDPR, which carry fines of up to **4% of global turnover** for non-compliance and restrict cross-border data transfers[306](index=306&type=chunk)[309](index=309&type=chunk) - The California Consumer Privacy Act (CCPA) and the upcoming California Privacy Rights Act (CPRA) create new consumer rights and obligations that increase compliance costs and may restrict the use of personal information for advertising[311](index=311&type=chunk)[312](index=312&type=chunk) - Due to global operations, the company is subject to anti-bribery laws like the FCPA and economic sanctions regulations, which could lead to significant penalties if violated[327](index=327&type=chunk)[331](index=331&type=chunk) [Risks Related to Our Common Stock and Capital Structure](index=65&type=section&id=Risks%20Related%20to%20Our%20Common%20Stock%20and%20Capital%20Structure) Significant secured debt limits financial flexibility, future capital needs may dilute stockholders, and failure to maintain internal controls could impact stock price - The company has **$237.1 million** in outstanding secured indebtedness as of June 30, 2021, which could limit financial flexibility and requires a significant amount of cash to service[385](index=385&type=chunk) - Future payments for acquisitions may require raising additional capital, potentially through equity financing, which could dilute existing stockholders[395](index=395&type=chunk)[396](index=396&type=chunk) - Failure to maintain an effective system of internal controls, especially with the complexity of recent acquisitions, could lead to inaccurate financial reporting and a negative impact on the stock price[403](index=403&type=chunk)[404](index=404&type=chunk)

Digital Turbine, Inc. (NASDAQ:APPS) Q4 2021 Earnings Conference Call June 1, 2021 4:30 PM ET Company Participants Brian Bartholomew - Senior Vice President, Capital Markets, IR Bill Stone - Chief Executive Officer Barrett Garrison - Chief Financial Officer Conference Call Participants Anthony Stoss - Craig-Hallum Tim Horan - Oppenheimer Darren Aftahi - ROTH Capital Partners Austin Moldow - Canaccord Allen Klee - Maxim Group Operator Good day. And welcome to Digital Turbine Reports Fourth Quarter and Fiscal ...

Summary of Digital Turbine, Inc. Conference Call Company Overview - **Company**: Digital Turbine, Inc. (NASDAQ: APPS) - **Event**: 16th Annual Needham Virtual Technology & Media Conference - **Date**: May 18, 2021 - **Participants**: Bill Stone (CEO), Vincent Kover (Needham & Company) Key Points Industry and Market Dynamics - Digital Turbine operates in the mobile advertising and app distribution industry, capitalizing on the increasing time consumers spend on mobile devices, which is now nearly a month per year [3][4] - The company aims to connect advertisers with consumers through mobile devices, leveraging the shift of media dollars towards mobile platforms [3][4] Business Growth and Financial Performance - Digital Turbine has achieved a **142% year-over-year growth in revenues** and a **300% growth in EBITDA** [6][23] - The company is on a combined run rate of **$1 billion in revenue**, touching **1.5 billion users monthly** and installing software on **60 million devices quarterly** [4][24] - The company emphasizes the importance of profitability alongside growth, highlighting its ability to generate operating leverage [6][23] Acquisitions and Strategic Expansion - Digital Turbine has acquired three companies: Appreciate, Fyber, and AdColony to enhance its advertising technology stack and expand its market reach [8][9][12] - The acquisitions are expected to create revenue synergies and improve overall margins [30] - The integration of these companies is progressing well, with Appreciate already fully integrated and AdColony's back-office functions being merged [12] Product Development and Innovation - The company is focused on expanding its product portfolio, particularly through its **SingleTap technology**, which allows seamless app downloads from ads without leaving the current application [17][20] - SingleTap has rapidly scaled from a seven-figure annual business to a seven-figure weekly business, indicating strong market demand [20] Competitive Advantages - Digital Turbine positions itself as an independent player in the ad tech space, avoiding conflicts of interest that may arise from vertical integration [10][25] - The company has established long-term relationships with key partners like Verizon and Samsung, which provide a competitive moat [11][25] Future Outlook - Digital Turbine aims to continue its aggressive growth trajectory, targeting a larger share of the mobile advertising market, which is projected to be worth hundreds of billions [6][40] - The company is optimistic about its ability to maintain high growth rates without sacrificing profitability, leveraging its unique business model [34][48] Challenges and Considerations - The primary focus for the company is on successful integration of acquired businesses and maintaining a strong corporate culture as it scales [46] - Management acknowledges the need to differentiate itself from competitors and emphasizes the importance of transparency in advertising effectiveness to attract more advertisers [27][48] Financial Guidance - The company plans to report full financial results soon, with expectations of continued strong performance across its business segments [24][48] Additional Insights - Digital Turbine's strategy includes expanding its device footprint and enhancing media relationships to drive network effects and breakout performance [13][14] - The company is not currently focused on new acquisitions but will consider future opportunities once the integration of recent acquisitions is complete [32] This summary encapsulates the key insights and strategic direction of Digital Turbine as discussed during the conference call, highlighting its growth, acquisitions, and competitive positioning in the mobile advertising industry.

Digital Turbine, Inc. (NASDAQ:APPS) Q3 2021 Earnings Conference Call February 3, 2021 4:30 PM ET Company Participants Brian Bartholomew - Vice President, Capital Markets Bill Stone - Chief Executive Officer Barrett Garrison - Chief Financial Officer Conference Call Participants Darren Aftahi - Roth Capital Partners Tim Horan - Oppenheimer Austin Moldow - Canaccord Allen Klee - Maxim Group Jon Hickman - Ladenburg Operator Good day and welcome to the Digital Turbine Reports Fiscal 2021 Third Quarter Results C ...