Digital Turbine, Inc. · NASDAQ:APPS
Digital Turbine — Craig-Hallum Alpha Select Conference 2015
23 slides from Digital Turbine's conference presentation, Sep 17, 2015
Slide 1: Craig-Hallum Alpha Select Conference September 17, 2015
Craig - Hallum Alpha Select Conference September 17, 2015
Slide 2: Safe Harbor Statements
2 Safe Harbor Statements . Statements in this presentation that are not statements of historical fact and that concern future results from operations, financial position, economic conditions, product releases, and any other statement that may be construed as a prediction of future performance or eve
Slide 3: Smartphones & apps are the technology platform of our time
3 1.3B smartphones shipped in 2014 1.4M apps on both Google Play and the App Store $45B mobile app revenue forecast in 2015 $4.4B mobile advertising revenue in 2015 Source: Strategy Analytics, IDC, Gartner, TechCrunch, Google, Apple Smartphones & apps are the technology platform of our time © Digita
Slide 4: Smartphones & apps are the technology platform of our time
Smartphones & apps are the technology platform of our time 4 Mobile app revenues estimated at $45B in 2015, with advertising revenue representing $4.4B and forecast to grow +57% annually Source: Strategy Analytics, IDC, Gartner, TechCrunch, Google, Apple © Digital Turbine. All rights reserved. 24 %
Slide 5: Facebook is driving approximately $2.9 billion in quarterly mobile ad revenue
Facebook is currently driving approximately $ 2.9 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: Facebook Fourth Q
Slide 6: 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 7: Business Model – Multiple Revenue Streams
Appia Core M obile ad / user acquisition network Ignite & IQ App monetization for operators and OEMs Marketplace Enables content/app store DT Media Sell unique carrier inventory (app preloads) to advertisers Business Model – Multiple Revenue Streams Sell Advertising Customer: Advertiser Sell Content
Slide 8: Growth Strategy Levers: Three-pronged Approach
Growth Strategy Levers: Three - pronged Approach Increase Distribution Footprint Expand Product Footprint Optimize Revenue per Device Connect any Third Party wanting to monetize mobile applications on any screen Deploy product suite across more handsets within existing customers Deploy product suite
Slide 9: End to End Mobile Solutions – Comprehensive product portfolio
End to End Mobile Solutions – Comprehensive product portfolio 9 © Digital Turbine. All rights reserved.
Slide 10: New features to meet customer demand
New features to meet customer demand Migrating to Ignite 2.0 New features include: • Start - up Wizard option • Ignite as SDK • Integration with Appia ad serving technology including CRM integration • Improved analytics and reporting • Improved push notifications • Client optimization (e.g., battery
Slide 11: Delivering the right app to the right customer at the right time
Delivering the right app to the right customer at the right time Digital Turbine Recommendation Server Device & App Data Historical App Perform. Appia Data Intel. xyo Engine Third Party Data IQ Suite of Products Organizer Discover Native Ads IQ App API Customizable IQ Products Operator CRM Data © Di
Slide 12: Appia Diversifies Revenues
Appia Diversifies Revenues Appia will continue to scale as a leading worldwide mobile user acquisition network 12 • Partnering with 150+ app install advertisers – Drives both Appia Core and DT Media ads – Exposure to Apple Ecosystem, with ~20% of revenue from iOS advertisers • Solid foundation of 25
Slide 13: Increase Distribution Footprint
Increase Distribution Footprint Operators OEMs Other Third Parties (Distributors, Chipset suppliers, Retailers, etc.) 13 Strategy: Connect any Third Party wanting to monetize mobile applications on any Screen © Digital Turbine. All rights reserved.
Slide 14: Current Digital Turbine Partners – Mobile Operator and OEM Partners
Current Digital Turbine Partners – Mobile Operator and OEM Partners 14 © Digital Turbine. All rights reserved.
Slide 15: Expanding Digital Turbine Relationships
Expanding Digital Turbine R elationships 59M total subscribers Customer brand >100M total subscribers 289M total subscribers Customer brands © Digital Turbine. All rights reserved. 15
Slide 16: Strong Demand for DT Media Inventory
© Digital Turbine. All rights reserved. 16 Strong Demand for DT Media Inventory
Slide 17: Optimize Revenue per Device
Optimize Revenue per Device Past • CPI (Cost per Install) Present • CPI • Cost per Placement (CPP) • Cost per Action (CPA) Future • CPI • CPP • CPA • Targeting (e.g., Precision) • Set - up Wizard • App Widget • eCPM • Utility Preloads (e.g., Weather) 17 ▪ Customers are asking for additional pricing
Slide 18: Q1 FY 2016 (Jun) Results
Q1 FY 2016 (Jun) Results $16.1 $18.7 19% 24% 0% 5% 10% 15% 20% 25% $6.0 $10.0 $14.0 $18.0 $22.0 Q4 FY15* Q1 FY16 Adjusted Gross Margin (%) Revenue ($mm) * Assumes Appia owned for full fiscal Q4 2015 © 2015 Digital Turbine, Inc. 18 Q1 FY16 highlights: • Sequential revenue growth 16.1% • ~230% growth
Slide 19: Full Year Guidance – FY 2016
$28 $58 $110 - $130 $- $20 $40 $60 $80 $100 $120 $140 FY15 (as reported) FY15 (pro forma)* FY16E (guidance) Revenue ($mm) Full Year Guidance – FY 2016 * Assumes Appia owned for full fiscal year 2015 © 2015 Digital Turbine, Inc. 19 FY16 Guidance: • Revenue to be in the range of: $110M - $130M • Non -
Slide 20: Business Outlook – Key Drivers
© 2015 Digital Turbine, Inc. 20 • FY Revenue Guidance driven by ramp of DT Media in back half of the fiscal year – Major retail selling quarter in Q3 FY16 – Continued organic growth in Q4 FY16 • Acceleration of DT Media driven by: – More units through enhanced distribution profile • Penetration with
Slide 21: Experienced Executive Team
Experienced Executive Team • Bill Stone – Chief Executive Officer – 20+ years experience in wireless, content, media, technology, marketing, and distribution – SVP, Qualcomm; CEO, Handango; exec. positions at Verizon, Vodafone, and AirTouch 21 • Andrew Schleimer – CFO – President, Au Courant Capital
Slide 22: Investment Thesis
x At the center of exponential growth in marketing and app - install advertising spend on mobile x Strong secular tail winds of global mobile, app, and install advertising growth x Recent acquisitions create single, large scale ecosystem x Uniquely positioned to deliver apps and ads to a device’s ho
Slide 23: Thank you
C) digital turbine Thank you
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