Digital Turbine(APPS) - 2025 Q3 - Quarterly Results

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].