Digital Turbine, Inc. · NASDAQ:APPS
Digital Turbine — 16th Annual B. Riley & Co. Investor Conference (May 2015)
23 slides from Digital Turbine's conference presentation, May 13, 2015
Slide 1: 16th Annual B. Riley & Co. Investor Conference
16th Annual B. Riley & Co. Investor Conference May 13, 2015 Bill Stone, CEO
Slide 2: Safe Harbor Statements. Use of Non-GAAP Financial Measures.
of which are not currently determinable. These non-GAAP measures include Safe Harbor Statements. non-GAAP adjusted gross profit and gross margin and non-GAAP adjusted EBITDA. Furthermore, the expected GAAP and non-GAAP results for the twelve Statements in this presentation that are not statements of
Slide 3: Investment Thesis
Investment Thesis At the center of exponential growth in marketing and app-install advertising spend on mobile Strong secular tail winds of global mobile, app, and install advertising growth Recent acquisitions create single, large scale ecosystem Uniquely positioned to deliver apps and ads to a dev
Slide 4: Smartphones & apps are the technology platform of our time
Smartphones & apps are the technology platform of our time 1.3B 1.4M $45B $4.4B smartphones apps on both mobile app mobile shipped in 2014 Google Play and revenue advertising the App Store forecast in revenue in 2015 2015 Mobile app revenues estimated at $45B in 2015, with advertising revenue repres
Slide 5: Facebook Parallel
Facebook Parallel Facebook is currently driving approximately $2.4 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:
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: Our Business
Our Business Sell Content Sell Advertising MarketPlace and Pay Ignite and IQ DT Media Appia Core Supply ongoing pipeline Expand other of advertisers to Ignite and partners/supply sources IQ for advertisers © 2015 Digital Turbine, Inc. 7
Slide 8: Now in Execution Phase
Now in Execution Phase Development Acquisition Execution Strong foundation through product development and customer acquisition Optimize the business Launch and model to scale grow top and Sign customers bottom line customers to Develop right meet products to demand Identify meet growing and opportu
Slide 9: Growth Levers
Growth Levers Expand Increase Optimize Product Distribution Revenue Footprint Footprint per Device © 2015 Digital Turbine, Inc. 9
Slide 10: Product Overview
Product Overview Digital Turbine Digital Turbine IQ Ignite mobile device customized user management solution experience and app with targeted app discovery tool distribution capabilities Digital Turbine Digital Turbine Marketplace Pay an application and content management content store and mobile pa
Slide 11: Ignite: Optimizes User Flow which increases Performance
Ignite: Optimizes User Flow which increases Performance Ignite simplifies the conversion flow for app installs from 6 steps to 2 steps, creating an order of magnitude increase in mobile monetization Current Flow for Facebook, Appia, and others 1: Open app or mobile web site 4: Install App 5: Open Ap
Slide 12: Ignite: Optimizes User Flow which increases Performance
Ignite: Optimizes User Flow which increases Performance Ignite simplifies the conversion flow for app installs from 6 steps to 2 steps, creating an order of magnitude increase in mobile monetization Ignite Flow 1 2 3 © 2015 Digital Turbine, Inc. 12
Slide 13: IQ: Delivering the right app to the right customer at the right time
IQ: Delivering the right app to the right customer at the right time IQ Suite of Products Operator CRM Digital Turbine Data Appia Recommendation Data Server Intel. Organizer Discover xyo Engine Third Party Native IQ App Historical Data App Ads API Perform. Device & App Data Customizable IQ Products
Slide 14: Appia Core Diversifies Revenues
Appia Core Diversifies Revenues Appia will continue to scale as a leading worldwide mobile user acquisition network • 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
Slide 15: Product Footprint Expansion
Product Footprint Expansion • Deploy product suite across more handsets within existing customers • Deploy product suite across more operator customers • IQ device expansion with T-Mobile in US • Deutsche Telekom now launched in Europe with Ignite • Marketplace also expanding DT Ignite/IQ relationsh
Slide 16: Increase Distribution Footprint
Increase Distribution Footprint Strategy: Connect any Third Party wanting to monetize mobile applications on any Screen Other Third Parties (Distributors, Operators OEM’s Chipset suppliers, Retailers, etc.) © 2015 Digital Turbine, Inc. 16
Slide 17: Operators and Distributors Leveraging the DT Media Platform
Operators and Distributors Leveraging the DT Media Platform © 2015 Digital Turbine, Inc. 17
Slide 18: New OEM relationships
New OEM relationships ~30M devices shipped per year Sponsored App provider for BlinkFeed ~6M devices shipped per year Sponsored App provider for Tablets and Smartphones ~10M devices shipped per year Sponsored App provider for Tablets and Smartphones 1M devices shipped per year in EMEA Preloading Ign
Slide 19: Optimize Revenue per Device
Optimize Revenue per Device Customers are asking for additional pricing models that will deliver better quality Focus is the optimization of the overall revenue per device by utilizing all pricing models Past Present Future •CPI (Cost per •CPI •CPI Install) •Cost per •CPP Placement •CPA (CPP) •Targe
Slide 20: Reiterating Guidance – FY15 and FY16
Reiterating Guidance – FY15 and FY16 $140M $110M - $130M $120M • FY16: • Revenue to be in the $100M range of: $110M - $130M $80M • Non-GAAP adjusted gross margin in the $58M - $62M $60M mid-30%-range • Positive Non-GAAP $40M $28M - $32M adjusted EBITDA • Q1’16: $20M • Revenues to be in the range of:
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 • Andrew Schleimer – CFO • Harris Thurmond – Ignite and IQ
Slide 22: Board of Directors and Shareholder Composition
Board of Directors and Shareholder Composition Equity Ownership Structure Board Composition % Shares Held Rob Deutschman, Chairman 33% Peter Guber 12% Paul Schaeffer Chris Rogers Jeff Karish 55% Bill Stone Former Appia Insiders Public Float Jud Bowman Craig Forman Shareholder base comprised of DT in
Slide 23: Thank you!
Thank you! digital
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