Digital Turbine (NasdaqCM:APPS) Q3 2026 Earnings call February 03, 2026 04:30 PM ET Company ParticipantsBill Stone - CEOBrian Bartholomew - SVP of Capital MarketsSteve Lasher - CFOConference Call ParticipantsAnthony Stoss - Senior Research AnalystArthur Ong - AnalystOperatorGood afternoon, everyone, and welcome to the Digital Turbine Fiscal 2026 third quarter earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressin ...

Financial Data and Key Metrics Changes - Total revenue for the fiscal third quarter was $151.4 million, representing a 12% year-over-year growth [4][13] - Adjusted EBITDA for the quarter totaled $38.8 million, reflecting a 76% increase year-over-year, with an EBITDA margin of 26% [14] - GAAP net income was reported at $5.1 million, or $0.03 per share, while non-GAAP net income was $21.7 million, or $0.18 per share [15] Business Line Data and Key Metrics Changes - On-Device Solutions (ODS) generated $99.6 million in revenue, up 9% year-over-year, driven by higher device volumes and revenue per device (RPD) [13][14] - Application Growth Platform (AGP) revenue was $52.6 million, up 19% from the prior year, with strong results in brand business and over 30% growth in DTX or SSP business [7][14] Market Data and Key Metrics Changes - International business drove over 60% year-over-year growth in ODS, with more than 30% of revenues from outside the United States for the first time [7][8] - Overall device volumes grew 20% year-over-year, despite softness in U.S. devices, indicating strong performance from international partners [8] Company Strategy and Development Direction - The company has five strategic priorities aimed at unlocking value from first-party data, building a flywheel effect between supply and demand, scaling the brand business, expanding services through the Ignite platform, and exploring alternative app opportunities [10][11][12] - The company is focused on leveraging AI and machine learning to enhance operational efficiency and drive revenue growth [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business momentum and the ability to build on performance, with a raised full-year revenue guidance to $553 million-$558 million and adjusted EBITDA guidance to $114 million-$117 million for fiscal year 2026 [17][18] - The company views the recent Google Gemini announcement positively, as it is expected to increase demand for distribution services [23][24] Other Important Information - The company ended the quarter with a cash balance of $40 million and reduced total debt by over $41 million to $355 million [16] - Free cash flow for the third quarter totaled $6.4 million, reflecting improved cash generation [14] Q&A Session Summary Question: Insights on the app install business and advertising integration - Management highlighted the potential for integrating advertising budgets into user acquisition, creating a self-reinforcing growth cycle [19][20] Question: Impact of Google Gemini announcement - Management believes the announcement will positively affect the company by increasing the need for distribution services for new games [22][24] Question: Observations on Meta's activity on iOS - Management noted that while Meta's activity is increasing, the company is outgrowing the market, with AGP growth at 20% compared to the market's mid- to high-single digits [30]

Digital Turbine (NasdaqCM:APPS) Q3 2026 Earnings call February 03, 2026 04:30 PM ET Speaker4Good afternoon, everyone, and welcome to the Digital Turbine Fiscal 2026 third quarter earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press Star and then one on your touchtone teleph ...

First is the diversification of our revenues, the double-digit growth across so many of our products and geographies. We are seeing many drivers of our growth versus being tied to a single thing. Second is our improving use of AI and machine learning tools not only in our data and targeting that power revenue, but also for our operations that's driving improved efficiency in our coding, quality assurance, regression timelines, and a variety of other administrative and back-office tasks. As an example of thi ...

Financial Performance - Total revenue for the first quarter of fiscal 2026 was $130.9 million, representing year-over-year growth of 11% compared to $118.0 million for the first quarter of fiscal 2025 [4][8] - GAAP net loss for the first quarter of fiscal 2026 was $14.1 million, or ($0.13) per share, an improvement from a GAAP net loss of $25.2 million, or ($0.25) per share in the first quarter of fiscal 2025 [5][8] - Non-GAAP adjusted net income for the first quarter of fiscal 2026 was $5.8 million, or $0.05 per share, compared to $7.3 million, or $0.07 per share in the first quarter of fiscal 2025 [5][8] - Non-GAAP adjusted EBITDA for the first quarter of fiscal 2026 was $25.1 million, representing year-over-year growth of 73% compared to $14.5 million in the first quarter of fiscal 2025 [6][8] Business Outlook - The company is raising its expectations for fiscal year 2026, projecting revenue between $525 million and $535 million and Non-GAAP adjusted EBITDA between $90 million and $95 million [9][7] - CEO Bill Stone highlighted strong demand for the Ignite platform and improved device sales as key drivers for the improved results, indicating confidence in future growth [3][8] Revenue Segmentation - Total On Device Solutions revenue before intercompany eliminations was $95.4 million, while total App Growth Platform revenue before intercompany eliminations was $36.3 million [4][8] - On Device Solutions revenue increased by 18% year-over-year, while App Growth Platform revenue decreased by 5% [34][8]

Core Insights - Digital Turbine has joined The Coalition for a Competitive Mobile Experience (CCME) to promote a more open and competitive mobile app marketplace [1][2] - The Coalition includes founding members such as Garmin, Match Group, Meta, and Spotify, aiming to address issues like limited distribution options and high platform fees [2][5] Company Contributions - Digital Turbine brings over a decade of technical expertise in app distribution and has established deep partnerships across the mobile ecosystem [3] - The company's Ignite platform is integrated on more than 1 billion Android devices globally, facilitating millions of app installs and representing over 82,000 apps [4] Industry Context - The CCME is focused on reforming app store practices amid increasing global regulatory scrutiny, with Digital Turbine contributing its technical perspective on app monetization and user acquisition [6] - The coalition aims to empower consumers and protect them from monopolistic practices in the digital economy [6][7]