Digital Turbine, Inc. · NASDAQ:APPS
Digital Turbine — Needham & Company Annual Growth Conference (January 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
Slide 2: Safe Harbor Statements. Use of Non-GAAP Financial Measures.
Safe Harbor Statements. Use of Non-GAAP Financial Measures. This presentation includes “forward-looking statements” within the meanings of the U.S. federal To supplement the Company’s condensed historical financial statements and/or forward looking securities laws. Statements in this presentation th
Slide 3: Agenda
Agenda 1 2 3 4 Market Trends Our Products Distribution & Footprint Financial Highlights © 2015 Digital Turbine, Inc. 3
Slide 4: Current market trends driving opportunity
Current market trends driving opportunity Carriers and OEM’s look for new sources of revenue from both advertising and data 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: Parallel
Parallel 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 users Source: Facebook
Slide 6: Our Mission: Right App. Right Person. Right Time.
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. 6
Slide 7: Five Products Across Our Two Operating Segments
Five Products Across Our Two Operating Segments Content Advertising Ignite Marketplace Drive Quality App Installs White-Labelled Content Stores AdStream New User Acquisition Pay Simple Mobile Billing Discover App Search & Discovery © 2015 Digital Turbine, Inc. 7
Slide 8: AppSource is the engine and data science that enables app install recommendations
AppSource is the engine and data science that enables app install recommendations, tracking, and optimization AppSource Advertiser RTB Publisher • App install ads • Carriers & OEMs • App preloads • Mobile publishers • Push notifications • Utilizing Ignite, AdStream • App install retargeting and Disc
Slide 9: Multiple Ad Types for AdStream User Acquisition Solution
AdStream New User Acquisition Multiple Ad Types for AdStream User Acquisition Solution App Wall Native Ads Display Ads Interstitials A simple, customizable Fully customizable and In-app or on mobile Engage users with a full and unobtrusive user seamlessly integrated websites screen experience experi
Slide 10: Evolution of Ignite App Delivery – Multiple Go to Market Approaches
Ignite Drive Quality App Installs Evolution of Ignite App Delivery – Multiple Go to Market Approaches Silent Wizard SDK © 2015 Digital Turbine, Inc. 10
Slide 11: Additional demand beyond traditional carrier partners
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 including wearables, automobiles, an
Slide 12: Signed contracts with major global players
Signed contracts with major global players Partnered with 25+ mobile Major anchor tenants operators and OEM’s in key geographies © 2015 Digital Turbine, Inc. 12
Slide 13: Roadmap for deployment of new major distributor partners
Roadmap for deployment of new major distributor partners Millicom Cricket MTS América Móvil AT&T February 2016 March 2016 March 2016 Q1 FY17 Q1 FY17 Ignite Ignite Ignite Ignite Ignite License Fee per Device Silent Install Silent Install SDK Setup Wizard 59M total subscribers 5M total subscribers 100
Slide 14: Strong Demand for DT Media Advertising Inventory
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 Travel Retail Social Music Real Estate Entertainment Finance Gaming Shopping Agency © 2015 Digital Turbine, Inc. 14
Slide 15: Recognizing device revenue over time
Recognizing device revenue over time Day Day 1 60 Device Sold Attribution Complete Ignite Activated CPP campaign @ $0.40 No additional revenue recognition on Immediate revenue recognition CPP over attribution window on CPP campaign of $0.40 20% CPI conversion rate over CPI campaign @ $2.00 attributi
Slide 16: Revenue
Step change in quarterly revenue – meaningful sequential growth ($ in millions) $25.0 FY16 highlights: $20.7 • DT Media revenue growing $20.0 $18.7 from $1M pro forma in Q4 $16.1 FY15 to $3.2M and $4.1M respectively in Q1 and Q2 Revenue $15.0 $13.4 $13.3 $12.2 FY16 $10.0 • Highest ad stream revenue
Slide 17: Revenue: FY 2016 Full Year Guidance
FY 2016 Full Year Guidance ($ in millions) $90 - $100 FY16 Guidance: $100 Guidance Range • Revenue to be in the range $90 of: $90M - $100M $80 • Positive Non-GAAP adjusted $70 $58 EBITDA for fiscal Q4 $60 Revenue • Revenue growth $50 approximately 40% in $40 Second Half versus First Half $28 $30 FY1
Slide 18: Business Outlook – Q4 FY16
Business Outlook – Fiscal 2016 outlook over the remainder of Q4 Q4 FY16 • 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 launch of
Slide 19: Business Outlook – FY 2017
Business Outlook – Looking to FY 2017 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 and Cri
Slide 20: Thank You
Thank You Digital Turbine @digitalTurbine digitalTurbine
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