Digital Turbine, Inc. · NASDAQ:APPS
Digital Turbine — Needham & Company Annual Growth Conference 2016
20 slides from Digital Turbine's conference presentation, Jan 12, 2016
Slide 1: Needham & Company Annual Growth Conference
Needham & Company Annual Growth Conference January 12, 2016 Exhibit 99.1
Slide 2: Safe Harbor Statements
2 © 2015 Digital Turbine, Inc. Safe Harbor Statements . This presentation includes “forward - looking statements” within the meanings of the U . S . federal securities laws . Statements in this presentation that are not statements of historical fact and that concern future results from operations, f
Slide 3: Agenda
3 © 2015 Digital Turbine, Inc. Agenda 1 Market Trends 2 Our Products 3 Distribution & Footprint 4 Financial Highlights
Slide 4: Carriers and OEMs look for new sources of revenue from advertising and data
Carriers and OEM’s look for new sources of revenue from both advertising and data Current market trends driving opportunity Carriers search for relevance from a subscriber perspective (avoid the dumb pipe) App economy is here to stay – 80%+ of content consumed on smartphones through apps App discove
Slide 5: Facebook is driving approximately $3.3 billion in quarterly mobile ad revenue
5 © 2015 Digital Turbine, Inc. Facebook is currently driving approximately $3.3 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 1.2B downloads with ~1.4 billion mobile monthly active
Slide 6: Our Mission: Right App. Right Person. Right Time.
6 Our Mission: Right App. Right Person. Right Time. Every day millions of android devices activate. Digital Turbine helps developers, advertisers, mobile operators and OEMs make the most of these new opportunities.
Slide 7: Five Products Across Our Two Operating Segments
7 © 2015 Digital Turbine, Inc. Five Products Across Our T wo Operating Segments Marketplace White - Labelled Content Stores Pay Simple Mobile Billing Ignite Drive Quality App Installs AdStream New User Acquisition Content Discover App Search & Discovery Advertising
Slide 8: AppSource is the engine and data science for app install recommendations
8 © 2015 Digital Turbine, Inc. AppSource is the engine and data science that enables app install recommendations, tracking, and optimization AppSource RTB Collaborative Filtering Content Filtering Advertiser • App install ads • App preloads • Push notifications • App install retargeting Publisher •
Slide 9: Multiple Ad Types for AdStream User Acquisition Solution
9 © 2015 Digital Turbine, Inc. Multiple Ad Types for AdStream User Acquisition Solution App Wall A simple, customizable and unobtrusive user experience Native Ads Fully customizable and seamlessly integrated Display Ads In - app or on mobile websites Interstitials Engage users with a full screen exp
Slide 10: Evolution of Ignite App Delivery – Multiple Go to Market Approaches
10 © 2015 Digital Turbine, Inc. Evolution of Ignite App Delivery – Multiple Go to Market Approaches Silent Wizard SDK Ignite Drive Quality App Installs
Slide 11: Additional demand beyond traditional carrier partners
11 © 2015 Digital Turbine, Inc. Additional demand beyond traditional carrier partners While capitalizing on current opportunities we are working to leverage our products to meet marketplace trends • Continued deployment with OEMs • BYOD Ignite development for SIM cards • Other connected devices incl
Slide 12: Signed contracts with major global players
12 © 2015 Digital Turbine, Inc. Signed contracts with major global players Partnered with 25+ mobile operators and OEM’s Major anchor tenants in key geographies
Slide 13: Roadmap for deployment of new major distributor partners
13 © 2015 Digital Turbine, Inc. Roadmap for deployment of new major distributor partners Millicom February 2016 Ignite License Fee per Device 59M total subscribers Cricket March 2016 Ignite Silent Install 5M total subscribers MTS March 2016 Ignite Silent Install 100M total subscribers América Móvil
Slide 14: Strong Demand for DT Media Advertising Inventory
14 © 2015 Digital Turbine, Inc. Travel Social Real Estate Finance Strong Demand for DT Media Advertising Inventory Digital Turbine works with top tier Advertisers & Advertising Agencies including the top grossing apps on the App Store and Google Play Retail Music Entertainment Gaming Shopping Agency
Slide 15: Recognizing device revenue over time
15 © 2015 Digital Turbine, Inc. Recognizing device revenue over time Device Sold Ignite Activated CPP campaign @ $0.40 Immediate revenue recognition on CPP campaign of $0.40 CPI campaign @ $2.00 Revenue recognition on CPI campaign of $ 0.00 at device sale Attribution Complete No additional revenue r
Slide 16: Step change in quarterly revenue – meaningful sequential growth
16 © 2015 Digital Turbine, Inc. $6.1 $10.2 $5.6 $18.7 $5.5 $20.7 $13.4 $16.1 $12.2 $13.3 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 Q4 FY14 Q4 FY15 Q1 FY15 Q1 FY16 Q2 FY15 Q2 FY16 Revenue As reported Pro forma Step change in quarterly revenue – meaningful sequential growth * Assumes Appia owned since fiscal
Slide 17: FY 2016 Full Year Guidance
17 © 2015 Digital Turbine, Inc. FY 2016 Full Year Guidance * Assumes Appia owned for full fiscal Q3 & Q4 2015 FY16 Guidance: • Revenue to be in the range of : $90M - $ 100M • Positive Non - GAAP adjusted EBITDA for fiscal Q4 • Revenue growth approximately 40 % in Second Half versus First Half FY16 •
Slide 18: Business Outlook – Q4 FY16
18 © 2015 Digital Turbine, Inc. Fiscal 2016 outlook over the remainder of Q4 • Continued organic DT Media growth in Q4 FY16 driven by: • Full quarter of 8 slots on US Carrier partners • Continued accretion in yield per device to over $2 per device • Launch of announced new customers • Potential laun
Slide 19: Business Outlook – FY 2017
19 © 2015 Digital Turbine, Inc. Looking to FY 2017 • Positive quarter over prior year quarter results from large US distribution partners through higher device penetration • Onboarding of new distribution partners including América Móvil , AT&T and a more meaningful contribution from MTS, Millicom a
Slide 20: Thank You
Thank You Digital Turbine @digitalTurbine digitalTurbine
Digital Turbine — Needham & Company Annual Growth Conference 2016 on 6ix