Digital Turbine, Inc. · NASDAQ:APPS
Digital Turbine — Investor Presentation (March 2015)
32 slides from Digital Turbine's investor presentation, March 2015
Slide 1: Digital Turbine, Inc. Investor Presentation
Digital Turbine, Inc. Investor Presentation
Slide 2: Safe Harbor Statements. Use of Non-GAAP Financial Measures.
Safe Harbor Statements. Use of Non-GAAP Financial Measures. To supplement the Company’s condensed financial statements presented in Statements in this presentation that are not statements of historical fact and accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), that concern futu
Slide 3: Agenda
Agenda Market Opportunity Digital Turbine’s Solution Distribution & Customers Financial Overview Team & Investors © 2015 Digital Turbine, Inc. 3
Slide 4: Smartphones & apps are the technology platform of our time
Smartphones & apps are the technology platform of our time 1.4Bn +2Bn 1.3M +100k smartphones smartphones apps on both new apps shipped in 2014 predicted to ship in Google Play each month 2015 and the App Store Smartphone shipments are predicted to exceed more than 2 billion devices in 2015, while ap
Slide 5: Apps continue to dominate mobile web
86% Of mobile time spent Apps continue to dominate mobile web on applications Mobile is 20% of media time, but only 4% of advertising Untapped spend Monetization Opportunity App discovery is a challenge with more than 2.6M+ apps Total mobile app revenue forecast to reach $46B in 2016 © 2015 Digital
Slide 6: Facebook Parallel
Facebook Parallel Facebook is currently driving approximately $2.5 billion in quarterly mobile ad revenue FB stock hits low of $17.73 on September 4, 2012 Launches app install ads on October 17, 2012 Facebook now has generated over 700M downloads with 1.2 billion mobile monthly active users Source:
Slide 7: Our Mission
Our Mission The ‘App Economy’ is exploding and redefining both industries and human lives. Our mission is to deliver the right app to the right customer at the right time…anywhere on the planet.
Slide 8: The Strategy
The Strategy Build the Google AdWords for Apps to allow any Third Party to monetize mobile while developing a cohesive product suite containing Advertising, Content (CMS), and Pay to provide an end-to-end ecosystem for any 3rd Party to ‘plug-in’ and monetize. © 2015 Digital Turbine, Inc. 8
Slide 9: Our Business
Our Business Sell Content Sell Advertising MarketPlace and Pay Ignite and IQ DT Media Appia Network Supply ongoing pipeline Expand other for DT Media partners/supply sources © 2015 Digital Turbine, Inc. 9
Slide 10: Agenda
Agenda Market Opportunity Digital Turbine’s Solution Distribution & Customers Financial Overview Team & Investors © 2015 Digital Turbine, Inc. 10
Slide 11: Defining Appia Core vs. DT Media
Defining Appia Core vs. DT Media Appia Core Appia, will continue to scale as a leading worldwide mobile user acquisition network, focused on multiple demand and supply solutions that have sustainability in the market. Digital Turbine Media Digital Turbine Media will focus as an advertiser solution f
Slide 12: Sustainable Differentiation
Sustainable Differentiation What will make our businesses have sustainable differentiation? 1 Digital Turbine Media Digital Turbine Media – Unique Ad Units as the owner of the homescreen of the device Appia Core 2 Appia Core – Able to run a profitable performance app-install business while building
Slide 13: Solution Overview
Solution Overview Digital Turbine Digital Turbine IQ Ignite mobile device customized user management solution experience and app with targeted app discovery tool distribution capabilities Digital Turbine Digital Turbine Marketplace Pay an application and content management content store and mobile p
Slide 14: DT Ignite
DT Ignite App management service that enables mobile operators to control, manage and monetize the applications that are installed (pre or post) on smartphone devices Controls the entire install process for internal third party apps Allows mobile operators to obtain a new advertising revenue stream
Slide 15: DT IQ
DT IQ Dynamic Right person, right app, right time recommendations Multiple delivery channels but Data-driven one set of intelligence and backend systems to enable delivering the correct app to the Incremental correct person. revenue source User focused © 2015 Digital Turbine, Inc. 15
Slide 16: Optimizing User Flow -- Increase Performance
Optimizing User Flow -- Increase Performance Digital Turbine’s Ignite simplifies the conversion flow for app installs from 6 steps to 2 steps, creating an order of magnitude increase in mobile monetization Current Flow for Facebook, Appia, and others 1: Open app or mobile web site 4: Install App 5:
Slide 17: Optimizing User Flow -- Increase Performance
Optimizing User Flow -- Increase Performance Digital Turbine’s Ignite simplifies the conversion flow for app installs from 6 steps to 2 steps, creating an order of magnitude increase in mobile monetization Digital Turbine Ignite Flow 1 2 3 © 2015 Digital Turbine, Inc. 17
Slide 18: Agenda
Agenda Market Opportunity Digital Turbine’s Solution Distribution & Customers Financial Overview Team & Investors © 2015 Digital Turbine, Inc. 18
Slide 19: Customers Leveraging the DT Media Platform
Customers Leveraging the DT Media Platform © 2015 Digital Turbine, Inc. 19
Slide 20: Publishers Leveraging Appia Core Platform
Publishers Leveraging Appia Core Platform Appia partners with 250+ Publishers to monetize their mobile traffic © 2015 Digital Turbine, Inc. 20
Slide 21: App Install Advertisers
App Install Advertisers Appia works with 150+ Advertisers & Agencies, including 60 of the top 100 grossing apps on the App Store and Google Play © 2015 Digital Turbine, Inc. 21
Slide 22: Crossed 100M sponsored app installs
Millions 20 40 60 80 100 120 0 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 © 2015 Digital Turbine, Inc. Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 to date in February 2015 Crossed 100M sponsored app installs Jun-14 Aug-14 #1 Independent App Install Netwo
Slide 23: Agenda
Agenda Market Opportunity Digital Turbine’s Solution Distribution & Customers Financial Overview Team & Investors © 2015 Digital Turbine, Inc. 23
Slide 24: Revenue Guidance – FY15 and FY16
Revenue Guidance – FY 15 and FY 16 $140M $110M - $130M $120M $100M $80M $58M - $62M $60M $40M $28M - $32M $20M $0M FY15 FY15 FY16 As-reported basis Pro Forma* Guidance * Assumes Appia owned for full fiscal year 2015 © 2015 Digital Turbine, Inc. 24
Slide 25: FY 2016 Guidance Components
FY 2016 Guidance Components Total full year revenue for combined company in the range of $110-130M • Appia Core and DT Content businesses create a baseline of revenue at approximately 50+% of the midpoint • Advertising business including DT Ignite and DT IQ represents remainder of revenue DT Content
Slide 26: Illustrative Content revenue model
Illustrative Content revenue model End User $3.00 purchases content • Traditional Carrier content services, transactional content sales for services built, hosted and managed by Digital DT bills Carrier PPD less taxes Turbine $2.10 less Carrier Rev Share • API billing product enables third parties t
Slide 27: Illustrative Advertising revenue model
Illustrative Advertising revenue model Digital Turbine Media collects CPI rate $3.00 from Advertiser • Pro forma for the Appia transaction, campaigns for $0.60 Gross Profit for Digital Turbine Media DT Ignite and DT IQ will generally be sourced by Digital Turbine Media ‘sells’ the advertising Digita
Slide 28: Agenda
Agenda Market Opportunity Digital Turbine’s Solution Distribution & Customers Financial Overview Team & Investors © 2015 Digital Turbine, Inc. 28
Slide 29: Experienced Executive Team
Experienced Executive Team Bill Stone – Chief Executive Officer • 20+ years experience in carrier relations, wireless, content, media, technology, marketing and distribution • Executive positions at Qualcomm, Verizon, and Vodafone © 2015 Digital Turbine, Inc. 29
Slide 30: Experienced Executive Team
Experienced Executive Team • Andrew Schleimer – Executive Vice President and Chief Financial Officer – President, Au Courant Capital Corp.; EVP of Strategic Development, Dick Clark Productions; EVP of Strategic Development, Six Flags; VP of M&A, UBS • James Alejandro – Chief Accounting Officer and C
Slide 31: Experienced Executive Team; cont.
Experienced Executive Team; cont. • Jamie Fellows - Chief Product Officer – SVP of Product, Millennial Media; VP of Product Management, AOL; Director of Product, Management Advertising.com • Jeff Henderson – VP Engineering and IT Operations – Director of Engineering, Novarra; Director of Engineering
Slide 32: Board of Directors and Shareholder Composition
Board of Directors and Shareholder Composition Equity Ownership Structure Board Composition % Shares Held Rob Deutschman, Chairman 33% Peter Guber 12% Paul Schaeffer Chris Rogers Jeff Karish 55% Bill Stone Former Appia Insiders Public Float Jud Bowman Craig Forman Shareholder base comprised of DT in