Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $135 million, representing a 13% sequential increase and a 3% decrease year-over-year [10][39] - Adjusted EBITDA was $22 million, with a projected nearly 50% growth in EBITDA for the March quarter [10][11] - Non-GAAP EPS was $0.13, down from $0.15 in the same quarter last year [49] - Gross margin for Q3 was 44%, down from 45% in Q2 and 46% in Q3 of the prior year [42] Business Line Data and Key Metrics Changes - On-Device Solutions (ODS) segment revenues reached $92 million, an 11% sequential increase but down 3% year-over-year [12][39] - Revenue per device (RPD) reached record levels in both the US and international markets, driven by strong advertiser demand [40] - Advertising Growth Platform (AGP) revenues were $44 million, with a 17% sequential growth and a 34% year-over-year growth in brand spending [14][41] Market Data and Key Metrics Changes - International ODS revenues increased by 100% year-over-year, indicating strong advertiser demand and improved execution [13] - The company is expanding its global device relationships despite soft device sales in the US, with partnerships including Motorola, Nokia, and T-Mobile [22] Company Strategy and Development Direction - The company is focused on growth and efficiency, targeting more than $25 million in annual operating expense savings [20][48] - Investments in brand relationships and first-party data are seen as key differentiators in a competitive market [15][19] - The transition from waterfall bidding to SDK bidding is a strategic move to improve performance advertising [16][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's transformation and growth strategy, highlighting the importance of leveraging first-party data [31][68] - The upcoming Digital Markets Act in Europe is anticipated to create new opportunities for the company [61] - The company expects revenue for fiscal year 2025 to be in the range of $485 million to $490 million, with projected non-GAAP adjusted EBITDA between $69 million and $71 million [52] Other Important Information - The company announced a leadership transition with Steve Lasher joining as the new CFO [7][33] - Cash balance at the end of the quarter was $34.6 million, with free cash flow of $6.4 million [50] Q&A Session Summary Question: What has changed for big brand names to return to Digital Turbine for advertising? - Management attributed the return to hard work and relationship building, emphasizing the importance of trust with brands [57][58] Question: Are other large publishers preparing to launch their own app stores? - Management noted increased awareness and interest from major players like Epic and Microsoft, with potential for more aggressive moves in 2025 [60][61] Question: What are the key dynamics for 2025 compared to this year? - Management highlighted the importance of leveraging first-party data and expanding device relationships as key growth drivers for the upcoming year [67][70]

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 December 31, 2024 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 ...

Financial Performance - Fiscal 2025 third quarter revenue totaled $134.6 million, representing a 13% increase quarter-over-quarter but a 6% decline year-over-year[5]. - GAAP net loss for the third quarter was $23.1 million, or ($0.22) per share, compared to a net loss of $14.1 million, or ($0.14) per share in the same quarter last year[7]. - Non-GAAP adjusted net income for the third quarter was $13.7 million, or $0.13 per share, down from $15.6 million, or $0.15 per share in the prior year[5]. - Non-GAAP adjusted EBITDA for the third quarter was $22.0 million, a 44% increase quarter-over-quarter but a 14% decline year-over-year[5]. - Net revenue for Q3 FY2025 was $134.6 million, a decrease of 6% from $142.6 million in Q3 FY2024[31]. - Loss from operations for Q3 FY2025 was $12.8 million, compared to a loss of $9.3 million in Q3 FY2024[31]. - Non-GAAP gross profit for Q3 FY2025 was $59.6 million, with a gross profit margin of 44%, down from 45% in Q3 FY2024[39]. - The On Device Solutions segment generated $91.7 million in revenue, a 3% decrease from $94.3 million in the prior year[37]. - The App Growth Platform segment reported $44.2 million in revenue, a 10% decline from $49.2 million in Q3 FY2024[37]. - The company reported a comprehensive loss of $27.3 million for Q3 FY2025, compared to a comprehensive loss of $10.5 million in the same quarter last year[31]. - Net loss attributable to Digital Turbine, Inc. for Q3 FY2025 was $23.1 million, compared to a net loss of $14.1 million in Q3 FY2024[31]. Cash Flow and Assets - Non-GAAP free cash flow for the third quarter totaled $6.4 million[5]. - Cash and cash equivalents at the end of the period were $35.3 million, an increase from $32.8 million at the beginning of the period[35]. - Total current assets increased to $254.1 million as of December 31, 2024, up from $242.3 million at March 31, 2024[33]. - Total liabilities rose to $676.1 million as of December 31, 2024, compared to $651.6 million at March 31, 2024[33]. - Net cash provided by operating activities was $10,443 thousand in Q4 2024, a decline from $11,661 thousand in Q4 2023[44]. - Non-GAAP free cash flow decreased significantly to $6,412 thousand in Q4 2024 from $14,272 thousand in Q4 2023[44]. Guidance and Future Outlook - The company is raising its fiscal 2025 annual guidance, expecting revenue between $485 million and $490 million[11]. - The company anticipates more material year-over-year growth in EBITDA for the March quarter[3]. Operational Insights - Strong demand from advertisers and publishers for On-Device product offerings and growth in spending from advertising agencies were key revenue drivers[3]. - Management highlighted the importance of transformational profit-optimization measures in improving operating performance and free cash flow[3]. Expenses and Costs - Stock-based compensation expense increased to $8,250 thousand in Q4 2024 from $7,987 thousand in Q4 2023[41]. - Business transformation costs were $667 thousand in Q4 2024, down from $4,763 thousand in Q4 2023[43]. - Capital expenditures rose to $7,125 thousand in Q4 2024, compared to $3,107 thousand in Q4 2023[44]. - Severance costs increased to $2,220 thousand in Q4 2024 from $909 thousand in Q4 2023[43]. - The company reported a change in fair value of contingent consideration of $500 thousand in Q4 2024, with no such item reported in Q4 2023[43].

Core Insights - Digital Turbine, Inc. reported a total revenue of $134.6 million for the fiscal third quarter of 2025, reflecting a 13% increase quarter-over-quarter but a 6% decline year-over-year [4][8] - The company experienced a GAAP net loss of $23.1 million, or ($0.22) per share, compared to a net loss of $14.1 million, or ($0.14) per share in the same quarter of the previous year [4][8] - Non-GAAP adjusted net income for the quarter was $13.7 million, or $0.13 per share, down from $15.6 million, or $0.15 per share in the prior year [5][8] - Non-GAAP adjusted EBITDA was reported at $22.0 million, showing a 44% increase quarter-over-quarter but a 13% decline year-over-year [5][8] Financial Performance - Total revenue for the third quarter of fiscal 2025 was $134.6 million, with On Device Solutions revenue at $91.7 million and App Growth Platform revenue at $44.2 million [4][8] - The GAAP net loss for the third quarter was $23.1 million, compared to a loss of $14.1 million in the same quarter of fiscal 2024 [4][8] - Non-GAAP adjusted net income decreased to $13.7 million from $15.6 million year-over-year [5][8] - Non-GAAP adjusted EBITDA for the quarter was $22.0 million, down from $25.4 million in the previous year [5][8] Business Outlook - The company is raising its fiscal 2025 outlook, anticipating year-over-year revenue growth in the March quarter and more significant growth in EBITDA [3][6] - The guidance for fiscal year 2025 expects total revenue between $485 million and $490 million, with Non-GAAP adjusted EBITDA projected between $69 million and $71 million [9]

Core Viewpoint - Digital Turbine, Inc. will host a conference call to discuss its fiscal 2025 third quarter financial results and operational progress on February 5th, 2025 [1] Group 1: Conference Call Details - The conference call will be hosted by CEO Bill Stone and CFO Barrett Garrison [1] - Access to the call can be made via a webcast link or by dialing specific phone numbers for the United States and international locations [1] - A playback of the call will be available until February 12th, 2025 [2] Group 2: Company Overview - Digital Turbine is focused on enhancing mobile experiences for consumers and delivering results for mobile operators, advertisers, and publishers [3] - The company's platform simplifies the process for partners to achieve recognition, acquisition, and monetization across various devices [3] - Digital Turbine is headquartered in North America and has a global presence with offices worldwide [3]

Core Insights - TIM Brazil and Digital Turbine have formed a strategic partnership to enhance smartphone experiences for TIM customers through personalized app recommendations and seamless access to apps on Android devices [1][2][4] - This collaboration is expected to significantly expand Digital Turbine's presence in Brazil, allowing it to partner with more mobile carriers and reach tens of millions of users [2][5] Group 1: Partnership Details - The partnership will integrate Digital Turbine's mobile platform into TIM's offerings, providing features like Dynamic Installs and Push Notifications tailored to user preferences [3][4] - Digital Turbine's solutions will be incorporated into hundreds of thousands of Android devices sold by TIM annually, enhancing user engagement and satisfaction [3][6] Group 2: Company Profiles - TIM Brazil is a leading mobile operator with the largest mobile coverage and 4G presence in Brazil, actively implementing 5G technology [7] - Digital Turbine specializes in creating superior mobile experiences and is positioned to drive engagement and monetization for mobile operators, advertisers, and publishers globally [8]

Digital Turbine, Inc (NASDAQ: APPS ) had a strong reaction to its earnings this week, which prompted me to take a closer look at the company to see how my picture has changed. AndMy primary area of concentration will be on identifying companies of exceptional caliber, with a proven ability to reinvest capital for impressive returns. Targeting those with a market capitalization of less than $10 billion, affords ample opportunities for growth. The ideal scenario is for these companies to demonstrate a long-te ...

Financial Data and Key Metrics - Revenue for Q2 2025 was $119 million, with EBITDA of $15.3 million, showing modest sequential growth [41] - ODS segment revenue reached $82.4 million, a 2% increase from the previous quarter but down 17% year-over-year [42] - AGP business revenue was $37.3 million, with brand revenues up 26% year-over-year and 13% sequentially [45] - Consolidated gross margin was 45%, down from 46% in Q1 and 47% in the same quarter last year [46] - Non-GAAP adjusted net income was $5 million, or $0.05 per share, compared to $13.9 million, or $0.13 per share, in Q2 2024 [49] - Cash balance at the end of the quarter was $32 million, a decrease of $3 million from the previous quarter [50] Business Line Performance - International ODS revenues improved nearly 25% year-over-year, driven by better RPDs and new supply [15] - SingleTap licensing product continued to grow, expanding relationships with multiple partners [16] - AGP business saw double-digit sequential growth, with year-over-year growth exceeding 25% [18] - DTX revenues on non-gaming applications nearly doubled over the past year [22] - SDK bidding now accounts for approximately 70% of total impressions on the exchange, up from 5% a year ago [29] Market Performance - U.S. device sales declined, with Q2 device volumes experiencing the largest year-on-year percentage decline in the past four quarters [43] - International markets showed growth, particularly in the EU and Latin America, driven by partnerships like ONE Store [11][34] - Regulatory developments in the EU, Japan, Korea, India, and the U.S. are expected to create growth opportunities for alternative app distribution [33][36] Strategic Direction and Industry Competition - The company is focusing on growth and efficiency, with key drivers being expanding device footprint, improving product portfolio, and leveraging first-party data [24][25] - A multiyear agreement with a Tier 1 U.S. operator and the ONE Store partnership are expected to be significant growth catalysts [11][26] - The company is transitioning from waterfall bidding to SDK bidding, with investments in AI, machine learning, and first-party data to drive brand revenues [28][30] - Alternative app distribution is a critical growth initiative, with the launch of DT Hub in the U.S. and plans to expand in the EU and Latin America [34][35] Management Commentary on Operating Environment and Future Outlook - The company expects the trend of declining U.S. device sales to reverse in 2025, driven by new AI features on OEM hardware and the migration from two- to three-year leases [17] - Management emphasized the importance of improving execution to capitalize on the enormous market opportunity in front of the company [12] - The company is optimistic about the future, with a focus on strengthening the financial position, driving top-line and free cash flow growth, and achieving full potential [59] Other Important Information - The company has initiated a transformation program aimed at achieving more than $25 million in annual cost reductions, with $15 million already achieved in the current quarter [10][55] - The company plans to reinvest a portion of the savings into strategic growth areas, such as the alternative app business [55] - The company expects revenue for fiscal year 2025 to be in the range of $475 million to $485 million, with non-GAAP adjusted EBITDA between $65 million and $70 million [57] Q&A Session Question: Phone Activation and Performance Advertising - The company is seeing growth from new international partners but is still facing headwinds from declining U.S. device sales and reduced software updates [62] - Performance DSPs are executing their own supply path optimization strategies, which has impacted the company's performance advertising business [64] Question: RPD and Strategic Alternatives - RPDs improved outside the U.S. but declined slightly in the U.S. due to software update issues [67] - The company's focus is on executing its current strategy rather than exploring strategic alternatives [68]

Revenue Performance - Net revenue for the three months ended September 30, 2024, was $118,728, a decrease of 17.1% compared to $143,259 for the same period in 2023[117]. - On Device Solutions revenue decreased by 16.8% to $82,414 for the three months ended September 30, 2024, down from $99,060 in the prior year[118]. - App Growth Platform revenue decreased by 19.1% to $37,346 for the three months ended September 30, 2024, compared to $46,183 in the same period last year[118]. - Net revenue for the three months ended September 30, 2024, decreased by $24,531 or 17.1% compared to the same period in 2023[119]. - ODS revenue for the three months ended September 30, 2024, decreased by $16,646 or 16.8%, with application media revenue declining by approximately $17,211 due to lower new device volumes[120]. - AGP revenue for the three months ended September 30, 2024, decreased by $8,837 or 19.1%, primarily due to weaker demand and the impact of consolidating certain legacy platforms[122]. Cost and Expense Management - Total costs of revenue and operating expenses for the three months ended September 30, 2024, were $132,270, a decrease of 55.3% from $295,876 in the prior year[117]. - Total costs of revenue and operating expenses decreased by $163,606 or 55.3% for the three months ended September 30, 2024, compared to the same period in 2023[125]. - The decrease in total costs of revenue and operating expenses was primarily due to lower revenue share and product development costs, with expectations of increased transformation costs in future quarters[127]. - Product development expenses decreased by $4,604 or 32.8% to $9,433 for the three months ended September 30, 2024, primarily due to lower employee-related costs[135]. - General and administrative expenses increased by $791 or 1.9% to $42,176 for the three months ended September 30, 2024, including severance costs of approximately $300[148]. - General and administrative expenses increased by $3,875 for the six months ended September 30, 2024, compared to the same period in 2023, primarily due to higher employee-related costs of $1,674 and depreciation and amortization of $1,363[151]. Operational Loss and Financial Position - Loss from operations for the three months ended September 30, 2024, was $(13,542), a significant improvement from $(152,617) in the same period last year, representing a decrease of 91.1%[117]. - The company reported a net loss of $(24,986) and $(50,142) for the three and six months ended September 30, 2024, respectively[157]. - Cash provided by (used in) operating activities was $(10,071) for the six months ended September 30, 2024, compared to $28,772 for the same period in 2023, a decrease of $38,843[169]. - The company had unrestricted cash of approximately $32,081 and restricted cash of approximately $684 as of September 30, 2024[157]. - The outstanding secured indebtedness under the Amended and Restated Credit Agreement was $411,000 as of September 30, 2024[162]. Business Transformation and Future Outlook - The company incurred $1,309 in business transformation costs during the six months ended September 30, 2024, as part of a multi-year project to implement a new global ERP system[114]. - The company is targeting over $25,000 in annual cash expense savings through ongoing transformation efforts, including workforce reductions[115]. - The company expects the business transformation program to be substantially implemented by the first quarter of fiscal year 2026[115]. Market Conditions and Challenges - The company continues to monitor macroeconomic conditions and geopolitical developments that may impact its business, including inflation and supply chain disruptions[100]. - The company is facing challenges due to lower-than-expected sales of new mobile devices, which may continue to affect its financial performance[102]. Interest and Taxation - Interest expense, net, increased by $1,388 or 17.7% for the three months ended September 30, 2024, and by $2,248 or 14.8% for the six months ended September 30, 2024, primarily due to an increase in interest rates of 112 basis points[154]. - The effective tax rate for the three and six months ended September 30, 2024, was (5.9)% and (6.7)%, respectively[155].