Digital Turbine, Inc. (APPS) CEO Bill Stone Presents at 16th Annual Needham Virtual Technology & Media Conference Call (Transcript)

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.