Digital Turbine(US:APPS)2020-06-03 02:25Financial Data and Key Metrics Changes - For fiscal year 2020, the company reported revenue of $138.7 million, representing over 30% annual growth, and adjusted EBITDA of $19.6 million, which is over 100% annual growth [10][22] - In Q4, revenue reached $39.4 million, up 45% year-over-year, with adjusted EBITDA of $5.3 million, a 59% increase [22] - Gross profit grew 39% to $15.8 million in Q4, with a gross margin of 40% [23] Business Line Data and Key Metrics Changes - The application media business grew 27% excluding Mobile Posse contributions, while international business revenue increased over 85% in the quarter [22][23] - Revenue per device (RPD) for U.S. partners increased by 32% year-over-year, approaching $3.20 [10][22] - The content media business, which includes Mobile Posse revenues, is expected to enhance overall margins and revenue streams [11][56] Market Data and Key Metrics Changes - The company has seen a significant increase in international partner revenues, which now contribute approximately 20% of application media revenues, up from 9% a year ago [14] - The company has installed its Ignite software on over 400 million devices globally, with a growth of 150 million devices in the fiscal year [10][12] Company Strategy and Development Direction - The company is focusing on diversification across business partners, products, and geographies, reducing reliance on any single variable for success [12][19] - The integration of Mobile Posse is a strategic move to enhance content offerings and cross-selling opportunities [11][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience during the COVID-19 pandemic, noting strong demand from advertisers and robust device supply [8][17] - The company anticipates continued growth in Q1 2021, expecting revenue between $47 million and $50 million and adjusted EBITDA between $8 million and $10 million [27] Other Important Information - The company exited Q4 with $21.5 million in cash and generated $11.8 million in free cash flow for the quarter [26] - The Mobile Posse acquisition contributed nearly $5 million in revenue for the month it was included in Q4 results [70] Q&A Session Summary Question: Update on Samsung rollout and its impact - Management reported strong progress with Samsung, with over 10 million devices on the platform and significant growth potential in Latin America [32] Question: Cross-selling opportunities with Mobile Posse - Management remains optimistic about cross-selling Mobile Posse's products into existing client bases and vice versa [34] Question: Cadence of core apps business during the pandemic - Management noted an accelerating cadence in business performance, with May showing better results than April, driven by strong demand in streaming and gaming sectors [38] Question: Status of SingleTap partnerships - Management indicated improved conversion rates and operational progress with SingleTap, leading to positive results [42] Question: Advertiser demand breakdown - Management highlighted a mix of new and existing advertisers increasing their spending, particularly in international markets [54] Question: Margin improvement levers - Management discussed expected synergies from the Mobile Posse acquisition, estimating around $1 million in cost synergies [56] Question: Trajectory of Telefonica partnership - Management expects Telefonica to follow a gradual growth trajectory similar to other partners, with steady build-up over time [58] Question: Tax benefit clarification - The tax benefit recorded was a non-cash adjustment related to the Mobile Posse acquisition [62] Question: Mobile Posse gross margin expectations - Management anticipates a 2-3 percentage point improvement in margins from the Mobile Posse integration [65]