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Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $142.6 million, flat sequentially but down 12% year-on-year [17] - Adjusted EBITDA was $25.4 million, down from $40 million in the prior year [22] - Non-GAAP adjusted net income was $15.7 million or $0.15 per share, compared to $30 million or $0.29 per share in the same quarter last year [23] Business Line Data and Key Metrics Changes - On-device solutions (ODS) segment revenues were $94.3 million, down 2% year-on-year [17] - App growth platform (AGP) revenues were $49.2 million, growing 6.5% sequentially but declining 27% year-on-year [19] - Gross margin for the consolidated business was 45%, down from 50% in the prior year [20] Market Data and Key Metrics Changes - U.S. device sales faced significant headwinds, with a double-digit year-over-year decline noted [28] - Despite challenges, there were signs of improving spend levels from brand advertisers, with over 25% sequential growth in brand business [8] Company Strategy and Development Direction - The company is focusing on modernizing its tech stack, with 40% of the product and tech organization dedicated to future growth initiatives [11] - Expansion of relationships with Motorola and ONE Store aims to enhance device pipeline and revenue opportunities [9][14] - The company is positioning itself as a major player in the alternative app distribution market, leveraging partnerships and technology [15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged persistent headwinds in U.S. device sales but expressed optimism about future improvements based on chipset supplier feedback [28] - The company expects to see material improvements from tech stack modernization over the next 12 months [30] - Future revenue growth is anticipated from new partnerships and successful execution against the pipeline in FY25 [25] Other Important Information - The company has taken equity stakes in ONE Store and Flexion to enhance its alternative app store strategy [14] - The Digital Markets Act (DMA) is expected to launch in early March in the EU, presenting new opportunities for the company [15] Q&A Session Summary Question: Device headwinds and market recovery - Management noted significant declines in U.S. device sales but indicated potential improvements as the year progresses, particularly with new device launches [28] Question: Tech stack implementation timeline - The tech stack modernization is expected to roll out over the next 12 months, with material improvements anticipated in upcoming quarters [30] Question: Economics of the ONE Store partnership - The partnership with ONE Store is seen as a phase one initiative, focusing on user acquisition and in-app advertising, with further strategic developments expected [34] Question: Leadership changes and organizational structure - The company is moving to a GM model for clearer accountability and faster decision-making, with leadership changes aimed at improving execution [39] Question: Revenue growth expectations for FY25 - Management expressed optimism about driving revenue growth in FY25, supported by ongoing initiatives and partnerships [50]

Digital Turbine (APPS) came out with quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.18 per share. This compares to earnings of $0.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -16.67%. A quarter ago, it was expected that this mobile software company would post earnings of $0.15 per share when it actually produced earnings of $0.13, delivering a surprise of -13.33%.Over the last four quar ...

Financial Performance - Net revenue for the three months ended December 31, 2023, was $142,634, a decrease of 12.1% compared to $162,310 for the same period in 2022 [122]. - For the nine months ended December 31, 2023, net revenue was $432,259, down 17.8% from $525,802 in the prior year [123]. - On Device Solutions revenue decreased by $2,018 or 2.1% to $94,298 for the three months ended December 31, 2023, and by $31,811 or 9.8% to $291,608 for the nine months [125]. - App Growth Platform revenue fell by $18,226 or 27.0% to $49,181 for the three months and by $63,706 or 30.6% to $144,323 for the nine months [127]. - Total costs of revenue and operating expenses for the three months ended December 31, 2023, were $151,901, a slight decrease of 0.4% from $152,513 in 2022 [128]. - For the nine months, total costs increased by 27.3% to $598,858 compared to $470,488 in the previous year [129]. - Revenue share decreased by $3,006 or 4.1% to $70,364 for the three months ended December 31, 2023, and by $28,943 or 12.2% to $208,675 for the nine months [132]. - General and administrative expenses increased by 16.2% to $45,455 for the three months and by 11.4% to $127,339 for the nine months [128]. - The company reported a $214,665 thousand decrease in net income, which included a goodwill impairment charge of $147,181 thousand [167]. Goodwill Impairment - As of September 30, 2023, the company recognized a goodwill impairment charge of $147,181 for its AGP reporting unit due to a sustained decline in the market price of its common stock and unfavorable operating trends [112]. - The impairment of goodwill was recorded at $147,181 for the nine months ended December 31, 2023 [129]. - The company’s next annual evaluation of goodwill for impairment is scheduled for March 31, 2024, with potential for further impairments if growth rates decline [113]. - The company recorded a non-deductible, non-cash goodwill impairment charge of $147,181 for the AGP reporting unit for the quarter ended September 30, 2023 [150]. Business Transformation and Investments - The company incurred business transformation costs of $4,763 and $7,291 for the three and nine months ended December 31, 2023, respectively, related to the implementation of a new global cloud-based ERP system [119]. - The company is undertaking a multi-year business transformation initiative aimed at improving operational efficiency through new systems and platforms [118]. - The company entered into an agreement to invest $10,000 in One Store, the largest alternative app store in South Korea, with additional investments contingent on performance milestones [117]. - The company incurred total business transformation, severance, and transaction costs of $5,718 and $9,535 for the three and nine months ended December 31, 2023, respectively [131]. Economic and Market Conditions - The company has observed a decrease in mobile device sales volume, attributed to inflation and economic uncertainty, which may continue to impact its business and financial condition [106]. - The company’s financial performance is influenced by macroeconomic conditions, including inflation and consumer confidence, which have led to a global slowdown in economic activity [105]. - The company is actively monitoring geopolitical developments, including the conflict in Israel, which could potentially affect its operations given its significant presence in the region [108]. - The company continues to face risks from U.S. government actions against China-based developers, which could negatively impact its business operations [109]. Debt and Cash Management - As of December 31, 2023, the company had unrestricted cash of approximately $48,959 and $149,000 available to draw under the New Credit Agreement [156]. - Outstanding secured indebtedness under the New Credit Agreement is $376,000 as of December 31, 2023, with a maturity date of April 29, 2026 [160]. - The company amended its New Credit Agreement to increase the limit of permitted investments from $20,000 to $75,000 and adjusted the interest rate to SOFR plus between 1.50% and 2.75% [116]. - Cash flows from operating activities generated for the nine months ended December 31, 2023, amounted to $40,433 [156]. - Net cash provided by operating activities decreased to $40,433 thousand for the nine months ended December 31, 2023, down 58.5% from $97,514 thousand in the same period of 2022 [164]. - Net cash used in investing activities increased to approximately $26,997 thousand for the nine months ended December 31, 2023, compared to $25,306 thousand in the prior year, primarily due to capital expenditures [168]. - Net cash used in financing activities was approximately $39,275 thousand, a significant decrease from $116,701 thousand in the same period of 2022, mainly due to reduced debt repayment [169]. - The company has minimum purchase commitments under hosting agreements totaling approximately $278,600 thousand over the next four fiscal years [163]. Expenses and Costs - Product development expenses decreased by $1,182 or 8.3% to $13,036 for the three months ended December 31, 2023, compared to $14,218 for the same period in 2022 [136]. - Sales and marketing expenses decreased by $2,037 or 12.4% to $14,432 for the three months ended December 31, 2023, remaining at 10.1% of total net revenue [141]. - Interest expense, net, increased by $753 or 10.9% for the three months ended December 31, 2023, primarily due to an increase in interest rates of 201 basis points [154]. - Product development expenses as a percentage of total net revenue for the nine months ended December 31, 2023, increased to 9.1% from 7.8% in the prior year [140]. Foreign Currency and Interest Rate Risks - The company is exposed to foreign currency exchange risks, particularly with transactions in euros, Turkish lira, and British pounds, which may impact future revenues and cash flows [175]. - A hypothetical increase in market interest rates of 100 basis points would result in an increase in interest expense of $10 per year for every $1,000 of outstanding debt under the company's credit facility [174].

The partnership will immediately bring DT's SingleTap® capabilities to over 40 million ONE Store enabled devices in Korea with expansion planned into additional markets in the near futureAUSTIN, Texas and SEOUL, South Korea, Feb. 6, 2024 /PRNewswire/ -- ONE Store, Korea's second-largest app market outperforming most global competitors, and Digital Turbine (NASDAQ: APPS), the global leader in growth solutions for the mobile ecosystem, today announced a strategic partnership to elevate the mobile experience i ...

- Global mobile growth leader Digital Turbine invests in ONE Store, acknowledging its potential for global expansion beyond the Korean market.- Both companies will concentrate their collaborative efforts on advancing ONE Store's penetration into international markets and enhancing its app store business. SEOUL, South Korea, Feb. 6, 2024 /PRNewswire/ -- Korean app market ONE Store (www.onestorecorp.com), a provider of mobile content including games, apps, and multimedia content, announced that it has secured ...

AUSTIN, Texas, Jan. 31, 2024 /PRNewswire/ -- Digital Turbine, Inc. (Nasdaq: APPS), a global mobile platform company, announced it will host a conference call and webcast to discuss its fiscal 2024 third quarter financial results and operating progress on Wednesday, February 7th, at 4:30pm ET/1:30pm PT. The call, hosted by Digital Turbine's Chief Executive Officer Bill Stone and Chief Financial Officer Barrett Garrison, can be accessed online via the webcast link: https://app.webinar.net/9eABOypQpMn. The cal ...

Digital Turbine, Inc. (NASDAQ:APPS) Q2 2024 Earnings Conference Call November 8, 2023 4:30 PM ET Company Participants Brian Bartholomew - SVP, Capital Markets Bill Stone - CEO Barrett Garrison - CFO Conference Call Participants Darren Aftahi - ROTH MKM Anthony Stoss - Craig-Hallum Tim Horan - Oppenheimer Operator Good afternoon and welcome to the Digital Turbine Reports Fiscal 2024 Second Quarter Results Conference Call. [Operator Instructions] Please note that this event is being recorded. I would now like ...

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 September 30, 2023 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 (State or Other Jurisdiction of Incorporation or Organization) 110 ...

Digital Turbine, Inc. (NASDAQ:APPS) Q1 2024 Earnings Conference Call August 8, 2023 4:30 PM ET Company Participants Brian Bartholomew - Senior Vice President, Capital Markets Bill Stone - Chief Executive Officer Barrett Garrison - Executive Vice President and Chief Financial Officer Conference Call Participants Arthur Chu - Bank of America Dan Day - B. Riley Securities Anthony Stoss - Craig Hallum Operator Good day, and welcome to the Digital Turbine Fiscal 2024 First Quarter Earnings Conference Call. Today ...