Digital Turbine, Inc. · NASDAQ:APPS
Digital Turbine — Mandalay Digital Group — Investor Presentation (April 2014)
26 slides from Digital Turbine's investor presentation, Apr 15, 2014
Slide 1: End to End Mobile Content Solution for Carriers and OEMs
Confidential. © 2014 Mandalay Digital Group, Inc. Page 1 End to End Mobile Content Solution for Carriers and OEMs Investor Presentation April 2014 NASDAQ: MNDL www.mandalaydigital.com
Slide 2: Safe Harbor Statements
Confidential. © 2014 Mandalay Digital Group, Inc. Page 2 Safe Harbor Statements. Statements in this presentation concerning future results from operations, financial position, economic conditions, product r ele ases and any other statement that may be construed as a prediction of future performance
Slide 3: Corporate Profile
Confidential. © 2014 Mandalay Digital Group, Inc. Page 3 NASDAQ MNDL Share Price (04/11/14) $3.50 Fully Diluted Market Cap (04/11/14) $ 135 million Fully Diluted Shares Outstanding* 38.6 million Insider / Affiliate Ownership** 21 % Avg. Volume (3 month) 388,217 FYE 3/31/15 Revenue Guidance Adjusted
Slide 4: The Company
Confidential. © 2014 Mandalay Digital Group, Inc. Page 4 The Company.
Slide 5: Digital Turbine, Logia Mobile and MIA acquisitions
Confidential. © 2014 Mandalay Digital Group, Inc. Page 5 Digital Turbine ( DT ) – Acquired in December 2011. Technology platform enabling media companies, mobile carriers, and OEM partners to take advantage of multiple mobile operating systems across multiple networks . Strategic Merit: Robust techn
Slide 6: Seasoned Management and World Class Board of Directors
Confidential. © 2014 Mandalay Digital Group, Inc. Page 6 Seasoned Management and World Class Board of Directors. Peter Adderton , CEO, MNDL and Director - Peter Adderton founded Boost Mobile in Australia in 2000. Under his leadership, Boost expanded to New Zealand, Canada and the United States. Pete
Slide 7: The Opportunity
Confidential. © 2014 Mandalay Digital Group, Inc. Page 7 The Opportunity.
Slide 8: The Market Implication
Confidential. © 2014 Mandalay Digital Group, Inc. Page 8 THE MARKET IMPLICATION Subscribers: • Over 6 Billion Global Subscribers / 4.5B in emerging markets. • ~300M in USA. Enormous Market Opportunity: • While optics do matter, US is only ~5% of market. Devices/Operating Systems: • Google ’ s Androi
Slide 9: MNDL Ripe to Capitalize From Recent Market Trends
Confidential. © 2014 Mandalay Digital Group, Inc. Page 9 MNDL Ripe to Capitalize From Recent Market Trends. Macro Trend 1. Google launch of KitKat version of Android, Google Play removed from Vodafone 2. Facebook on $ 1BN run - rate for CPI on mobile 3. Considerable M&A activity, including recent ac
Slide 10: CPI Advertising Driving Meaningful Mobile Growth
Confidential. © 2014 Mandalay Digital Group, Inc. Page 10 CPI Advertising Driving Meaningful Mobile Growth. ▪ FB stock hits low of $17.73 on September 4, 2012 ▪ Launches app install ads on October 17, 2012 ▪ 245 million app installs through end of 2013 ▪ 556 million mobile daily active users ▪ Drivi
Slide 11: The Products
Confidential. © 2014 Mandalay Digital Group, Inc. Page 11 The Products.
Slide 12: An End-to-end Mobile Content Solution
Confidential. © 2014 Mandalay Digital Group, Inc. Page 12 An End - to - end Mobile Content Solution.
Slide 13: Ignite Product Overview
Confidential. © 2014 Mandalay Digital Group, Inc. Page 13 Ignite Product Overview. ▪ App management service that enables mobile operators and OEMs to control, manage and monetize the applications that are installed (pre or post) on smartphone devices. ▪ Controls the entire installing process for int
Slide 14: Digital IQ Product Overview
Confidential. © 2014 Mandalay Digital Group, Inc. Page 14 Digital IQ Product Overview. ▪ Intelligently unscrambles the myriad of available content to deliver a redefined and personalized user experience (“ UX ”). ▪ Innovative cross - platform user experience and Content Management System (CMS) deliv
Slide 15: Content Management Overview
Confidential. © 2014 Mandalay Digital Group, Inc. Page 15 Content Management Overview. ▪ The only marketplace dedicated for carriers and OEMs to compete with Google Play and iTunes. ▪ Over 100,000 applications serving over 200 million customers in more than 50 countries. ▪ The No. 2 Music Retailer i
Slide 16: DT Pay Product Overview
Confidential. © 2014 Mandalay Digital Group, Inc. Page 16 DT Pay Product Overview. ▪ Connectivity to Operators as the “Visa” for processing mobile content transactions. ▪ Enable content providers (e.g. Electronic Arts) to bill directly to customer’s mobile bill. Pre - paid service coming. ▪ Launched
Slide 17: The Customers
Confidential. © 2014 Mandalay Digital Group, Inc. Page 17 The Customers.
Slide 18: Current Access to Over 1 Billion Subscribers
Confidential. © 2014 Mandalay Digital Group, Inc. Page 18 OPERATOR SUBSCRIBERS PRODUCTS STATUS Verizon ~100M Ignite, IQ Launch Summer 2014 Cellcom (Israel) 3M All In Commercial Use SingTel** ~450M Ignite, Content Mgmt and DT Pay In Commercial Use XL** ~35M IQ In Commercial Use TIM , Vodafone, Wind (
Slide 19: Current Access to Over 1 Billion Subscribers (continued)
Confidential. © 2014 Mandalay Digital Group, Inc. Page 19 OPERATOR SUBSCRIBERS PRODUCTS STATUS Cricket ~5M Ignite In Commercial Use AIS (Thailand)** ~36M Ignite Launch Q1 ‘14 MSAI (India) ~50M smartphones/year Ignite Launch June ‘14 ALL US CARRIERS (VZ marketing) -- eBooks In Commercial Use Current
Slide 20: The Models and Numbers
Confidential. © 2014 Mandalay Digital Group, Inc. Page 20 The Models and Numbers.
Slide 21: Business Model Example: IQ and Content Management
Confidential. © 2014 Mandalay Digital Group, Inc. Page 21 Business Model Example: IQ and Content Management. Consumer purchases a $1.00 application: ▪ $.30 to Operator, $.50 to Content Publisher. ▪ $.20 to Digital Turbine (Operator pays sales / VAT tax). ▪ Average customer life of 36 months (3% chur
Slide 22: Business Model Example: Ignite
Confidential. © 2014 Mandalay Digital Group, Inc. Page 22 Business Model Example: Ignite. Operator pays set - up fee for Ignite system (from $100K - $500K): ▪ Sliding revenue scale per device (average $.25). ▪ Revenue for DT for each pre - loaded device, regardless of customer behavior/spend. DT and
Slide 23: The Current Metrics – Recap
Confidential. © 2014 Mandalay Digital Group, Inc. Page 23 The Current Metrics – Recap. • Total global market = ~ 6 billion units (Asia Pacific planning to grow at ~6x greater than the US) • MNDL current total addressable market = ~1 billion units • MNDL technologies currently deployed on 31 million
Slide 24: Summary Financials
Confidential. © 2014 Mandalay Digital Group, Inc. Page 24 Summary Financials. • Recently completed $20mm (gross proceeds) raise at $4.10/share, zero debt on balance sheet. • Fiscal 2015 revenue guidance at $46mm to $50mm and Adjusted EBITDA breakeven for the second fiscal quarter ending 9/30/14. • D
Slide 25: Product Comparables
Confidential. © 2014 Mandalay Digital Group, Inc. Page 25 PRODUCT COMPARABLES Out - of - Box (Ignite) Mobile Application Management VMWare acquired Airwatch for $1.2BN in cash. IBM acquired Fiberlink for approximately $130M in cash. Citrix acquired Zenprise for $355M in cash. Search and Discovery (I
Slide 26: Contacts
Confidential. © 2014 Mandalay Digital Group, Inc. Page 26 Contacts. Investor Relations Andrew Schleimer Mandalay Digital Group Direct: 646 - 845 - 7335 Mobile: 646 - 584 - 4021 a.schleimer@mandalaydigital.com Laurie Berman PondelWilkinson Inc. Direct: 310 - 279 - 5962 Mobile: 310 - 867 - 4365 lberma
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