Digital Turbine, Inc. · NASDAQ:APPS
Digital Turbine — Investor Presentation (May 2021)
31 slides from Digital Turbine's investor presentation, May 2021
Slide 1: Investor Presentation
Investor Presentation May 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes "forward-looking statements" EBITDA (as well as Adjusted EBITDA); varying and often within the meaning of the U.S. federal securities laws. unpredictable levels of orders; the challenges inherent in Statements in this news release that are not stateme
Slide 3: Agenda
Agenda 01 Company Overview Addressable Market Opportunity Acquisition Strategy 02 Growth Drivers 03 Financial Summary 04 Real-Time Update 05 Q&A Confidential. © 2020 Digital Turbine, Inc. | 3
Slide 4: A One-Stop Mobile Growth & Monetization Platform
A One-Stop Mobile Growth & Monetization Platform Multiple Marketplace Trends Support Opportunities for Full Stack Providers CONSUMERS ADVERTISERS OPERATORS & OEMS Apps are Ingrained in our Lives The Mobile Ad Market The Device UI/UX is Fertile 2.7 M apps in Google Play Store while Continues to Grow
Slide 5: Company Operating at Global Scale
Company Operating at Global Scale $1B 40+ 600M 45K + 500+ 1.5B Operator/OEM Ignite On-Device Publisher Advertiser Monthly Revenue1 Partnerships Footprint Partnerships Relationships Reach Locations 4 23 CONTINENTS COUNTRIES 1 Based on preliminary unaudited results reported by the respective companies
Slide 6: Accelerating and Efficient Growth
Accelerating and Efficient Growth Revenue Adjusted EBITDA1 Non-GAAP EPS2 $100m $25m $0.25 $90m $20m $0.20 $80m 142% Y/Y Growth in Fiscal Q4 $0.15 $70m $15m $60m $0.10 $10m $50m $0.05 $40m $5m $- $30m $0m $(0.05) $20m $10m -$5m $(0.10) FQ4 '17 FQ1 '18 FQ2 '18 FQ3 '18 FQ4 '18 FQ1 '19 FQ2 '19 FQ3 '19 F
Slide 7: We Have Only Just Begun to Tap a Large, Growing Market
We Have Only Just Begun to Tap a Large, Growing Market 2020 Mobile Ad Revenue Market Share Mobile Ad Spending In Billions, Worldwide, 2021 - 2025 $540 $495 $446 $360 $341 The $190B Rest $50B 2021 2022 2023 2024 2025 Source: eMarketer, March 2021 Confidential. © 2020 Digital Turbine, Inc. | 7
Slide 8: On-Device Tech Creates Exclusive Marketplace Capabilities
On-Device Tech Creates Exclusive Marketplace Capabilities SingleTapTM and other On-Device Capabilities Create Highly Differentiated Offerings Across Our Acquisitions $340B Programmatic Demand ● DSP MarketPlace ● Ad Exchange ● Network Publisher Monetization ● Mediation ● Ad Experiences Publisher App
Slide 9: Recent Acquisitions Tap Into a Larger Market Opportunity
Recent Acquisitions Tap Into a Larger Market Opportunity Generate New Recurring Revenues, Boosting Revenue Per Device PROGRAMMATIC PUBLISHER BRAND UA MONETIZATION • Tier 1 App Install DSP • Leading mobile in-app media exchange • Top destination for Agency & Brands • Build for SingleTap Scale • Leadi
Slide 10: Development of a Unique End-to-End Platform
Development of a Unique End-to-End Platform The Mission: To become the largest independent growth and monetization platform leveraging our unique on-device technology and long-term relationships The Mosaic: • Appreciate (Acquisition Completed in March 2021) o Programmatic app install demand-side tec
Slide 11: Platform Overview
| Platform Overview
Slide 12: Key Drivers Accelerate Growth in Platform
3 Key Drivers Accelerate Growth in Platform More Devices More New More Advertiser Platform Network Effects Products Demand Confidential. © 2020 Digital Turbine, Inc. | 12
Slide 13: Validated by Market-Leading Global Operators and OEMs
PLATFORM GROWTH: MORE DEVICES Validated by Market-Leading Global Operators and OEMs Confidential. © 2020 Digital Turbine, Inc. | 13
Slide 14: Validation Has Led to Strong Growth in our Device Footprint
PLATFORM GROWTH: MORE DEVICES Validation Has Led to Strong Growth in our Device Footprint Digital Turbine’s Application Media software has now been installed on more than 600 million total devices to date and was installed on 65 million new devices worldwide during the December quarter Device Growth
Slide 15: Key Drivers Accelerate Growth in Platform
3 Key Drivers Accelerate Growth in Platform More Devices More New More Advertiser Platform Network Effects Products Demand Confidential. © 2020 Digital Turbine, Inc. | 15
Slide 16: Diverse Products Drive Revenue at Activation Point & Beyond
PLATFORM GROWTH: MORE NEW PRODUCTS Diverse Products Drive Revenue at Activation Point & Beyond Increased Revenue Opportunities Created by First Day and Recurring Lifetime Opportunities BRAND ADVERTISING First Day Recurring Lifetime DEMAND REVENUES REVENUES ● Agency Relationships CONTENT PROGRAMMATIC
Slide 17: SingleTap Installs
PLATFORM GROWTH: MORE NEW PRODUCTS SingleTap Installs™ Patented On-Device Technology Creates significant improvements in programmatic UA Improved App Install Conversions Reduces friction and improves mobile ad to install conversion rates by 2-5X Reduced Programmatic “Cold Start” Higher efficiencies
Slide 18: Revenue from Our SingleTap Product is Scaling Rapidly
PLATFORM GROWTH: MORE NEW PRODUCTS Revenue from Our SingleTap Product is Scaling Rapidly Acquisition of Appreciate is already creating significant returns Speed of Realizing $1M Revenue 2021 2021 End of May 2020 Jan Jul – Aug 3 Months 1 Month 1 Week $1 Million $1 Million $1 Million Confidential. © 2
Slide 19: Key Drivers Accelerate Growth in Platform
3 Key Drivers Accelerate Growth in Platform More Devices More New More Advertiser Platform Network Effects Products Demand Confidential. © 2020 Digital Turbine, Inc. | 19
Slide 20: Currently Working with the Top Brand & Performance Advertisers
PLATFORM GROWTH: MORE ADVERTISER DEMAND Currently Working with the Top Brand & Performance Advertisers News Retail Social Music eCommerce Entertainment Finance Gaming Shopping Agency Confidential. © 2020 Digital Turbine, Inc. | 20
Slide 21: Our Acquisitions Create a Significantly Larger Opportunity
Our Acquisitions Create a Significantly Larger Opportunity Top Publishers For every $1B spent Top publishers make $2-4B on Advertising… from In-App Advertising. On-Device Solutions Programmatic Video Via Ad Networks Mediation Offer Walls Exchange Via DT I/Os ally Via DSPs Advertising Confidential. ©
Slide 22: Financial Summary
Financial Summary
Slide 23: Accelerating and Efficient Growth
Accelerating and Efficient Growth Revenue Adjusted EBITDA1 Non-GAAP EPS2 $100m $25m $0.25 $90m $20m $0.20 $80m 142% Y/Y Growth in Fiscal Q4 $0.15 $70m $15m $60m $0.10 $10m $50m $0.05 $40m $5m $- $30m $0m $(0.05) $20m $10m -$5m $(0.10) FQ4 '17 FQ1 '18 FQ2 '18 FQ3 '18 FQ4 '18 FQ1 '19 FQ2 '19 FQ3 '19 F
Slide 24: Strong Revenue Growth
PLATFORM NETWORK EFFECTS Strong Revenue Growth Revenue grew 142% year-over-year in the March quarter and has grown at an overall compounded annual growth rate of 70% from Fiscal 2016 to Fiscal 2021* $100m $350m $313.6m * $90m $300m $80m $70m $250m $60m $200m $50m $150m $138.7m $40m $103.6m $30m $100
Slide 25: Operating Model Leverage
PLATFORM NETWORK EFFECTS Operating Model Leverage Revenue and gross profit grew 146% and 166%, respectively, in the most recent fully-reported quarter, driving more than 300% annual growth in EBITDA, 278% annual growth in non-GAAP EPS and 214% annual growth in Free Cash Flow, showcasing the inherent
Slide 26: Real-Time Update
Real-Time Update
Slide 27: Real-Time Update – Breakout Performance and Combined $1B+ Scale
Real-Time Update – Breakout Performance1 and Combined $1B+ Scale Preliminary upside results across the board for the recent March quarter and collective Y/Y growth of greater than 100% March Quarter 2021 Company Change Y/Y Revenue (in USD Millions) Digital Turbine $95.1 142% AdColony $58.3 37% Fyber
Slide 28: What Makes the Digital Turbine End-to-End Platform Offering Unique?
What Makes the Digital Turbine End-to-End Platform Offering Unique? …and therefore, drives performance improvement and realizable profit synergies moving forward? • Strategic Value of On-Device Presence and Patented SingleTap Technology o Core Digital Turbine on-device software presence offers lever
Slide 29: Digital Turbine's Core App & Media Content Business Momentum
Digital Turbine’s Core App & Media Content Business Momentum Prevailing secular tailwinds and mobile advertising trends set the stage for continued strong growth for Application and Content Media products • Record Demand for App Content/Services o Explosion in subscriber usage of apps and app-driven
Slide 30: Digital Turbine Investment Highlights
Digital Turbine Investment Highlights Highly-scalable platform business model >100% revenue growth and expanding profit uniquely positioned in high growth, >$340 billion margins in fiscal 2021 contributed to mobile advertising market significantly higher earnings Powered >4 billion app preloads for
Slide 31: Thank you
digital turbine Thank you