Digital Turbine, Inc. · NASDAQ:APPS
Digital Turbine — Investor Day (November 2021)
45 slides from Digital Turbine's investor day presentation, Nov 12, 2021
Slide 1: Investor Day
(C) digital turbine Investor Day Nov. 11. 2021
Slide 2: Safe Harbor Statement
Confidential. © 2021 Digital Turbine, Inc. | 2 Safe Harbor Statement This presentation includes "forward-looking statements" within the meaning of the U.S. federal securities laws. Statements in this presentation that are not statements of historical fact and that concern future results from operatio
Slide 3: Agenda
Confidential. © 2021 Digital Turbine, Inc. | 3 Agenda 01 02 Business Operations and Revenue Synergies (Mike Ng) 03 Q&A Part 1 04 Product Demos Company Update (Bill Stone) Mission/Vision/Why We Are Here 06 Numbers, Modeling, and Looking into the Future (Barrett Garrison) 07 Q&A Part 2 05 Partner Round
Slide 4: The Company
The Company Bill Stone
Slide 5: A lot has changed since we last met
Confidential. © 2021 Digital Turbine, Inc. | 5 A lot has changed since we last met APPS Analyst Day June 2018 (Slide 51)
Slide 6: Operating at global scale with strong results
Confidential. © 2021 Digital Turbine, Inc. | 6 Operating at global scale with strong results Key Stats Rapid & Efficient Growth Non-GAAP EPS EBITDA Revenue 40+ 45K+ Operator/OEM Partnerships Publisher Partnerships 750M Ignite On-Device Footprint $1B Revenue Advertiser Relationships Monthly Reach 750+ 1
Slide 7: The largest independent mobile growth platform
Confidential. © 2021 Digital Turbine, Inc. | 7 The largest independent mobile growth platform Powered by on-device technology APP APP $ AD App Publishers Seeking ad revenue $ UX Global wireless OEMs/operators Want better experiences and fair share of ad dollars Brands/advertisers Wanting effective pla
Slide 8: Market trends & opportunities support our independent growth platform vision
Confidential. © 2021 Digital Turbine, Inc. | 8 Market trends & opportunities support our independent growth platform vision Apps are Ingrained in our Lives 2.7 M apps in Google Play Store while average user has 30 apps on device using 10 per day Content Discovery is Increasing 50% of the time consume
Slide 9: Consumers are spending more time in mobile
Confidential. © 2021 Digital Turbine, Inc. | 9 Consumers are spending more time in mobile … 0:25 2:49 0:24 3:10 0:25 3:35 0:24 3:41 0:23 3:47 3:15 3:35 4:01 4:06 4:11 Mobile Internet: average daily time spent in the US, app vs. browser, 2018-2022 Hrs: mins per day among population Share of all media
Slide 10: More time in mobile has led to more installs & ad spend
Confidential. © 2021 Digital Turbine, Inc. | 10 … More time in mobile has led to more installs & ad spend Source eMarketer, March 2021 & October 2021 .. . . Leading to Upward Revisions in Advertising Spend Global Mobile Ad Spend, Billions of Dollars App Growth Continues to be Strong . . . Global App
Slide 11: Mobile ad spend has shifted towards Android
Confidential. © 2021 Digital Turbine, Inc. | 11 .. . . And, mobile ad spend has shifted towards Android Year over year growth in Facebook US mobile ad spend, by OS % change vs. same period of prior year Source eMarketer, Aug 2021
Slide 12: We've only just begun to tap these growing markets
Confidential. © 2021 Digital Turbine, Inc. | 12 … We’ve only just begun to tap these growing markets. Advertising MADE Ad $ flow to make money from new users over time Ad $ flow paid upfront to get new users In-App Monetization is Today’s Big Opportunity For every dollar of ad money paid to get new use
Slide 13: Digital Turbine now has a significantly larger TAM
Confidential. © 2021 Digital Turbine, Inc. | 13 Digital Turbine now has a significantly larger TAM . . . Acquisitions have increased our 2021 TAM from a share of $96B to over $369B After Acquisitions Before Acquisitions $96B+ App Install Market $96B+ App Install Market, 2021 $369B+ Total Mobile Advert
Slide 14: We service this TAM with much more supply & product
Confidential. © 2021 Digital Turbine, Inc. | 14 We service this TAM with much more supply & product 1st Day ● Dynamic Installs ● Wizard After Acquisitions Before Acquisitions 750M DEVICES 750M DEVICES 1.5B DEVICES 1st Day ● Dynamic Installs ● Wizard Every Day ● SingleTap ● Notifications ● In-App Monet
Slide 15: Significant tailwinds throughout the news cycle
Confidential. © 2021 Digital Turbine, Inc. | 15 Significant tailwinds throughout the news cycle A new Senate bill would totally upend Apple and Google’s app store dominance Across four continents, Apple's control of payments is under attack Facebook ad revenue seen feeling brunt of Apple privacy chang
Slide 16: Carrier/OEM App Stores Tailwinds support significant future opportunities
Confidential. © 2021 Digital Turbine, Inc. | 16 Carrier/OEM App Stores Tailwinds support significant future opportunities Our platform is well situated to expand to take advantage of market tailwinds: In-App Payments iOS & Other OSs Connected Television (Demo) Cross Device Advertising (Demo) Connected
Slide 17: Extending Opportunity with Our Telcos
Confidential. © 2021 Digital Turbine, Inc. | 17 3-4 Products Live Opportunities 1-2 Products Live 5-12 Products Live Extending Opportunity with Our Telcos Increasing partner investment
Slide 18: The Same Drivers Support New & Current Business
Confidential. © 2021 Digital Turbine, Inc. | 18 The Same Drivers Support New & Current Business Current Business ● On Device Media ● Demand AdTech ● AdTech Supply New Opportunities ● App Stores ● In-App Billing ● Future Devices [Get More Media Dollars in Products] [More Products Within Code] [Code on
Slide 19: Business Operations and Revenue Synergies
Business Operations and Revenue Synergies Mike Ng
Slide 20: Quick Overview of Mobile Ecosystem
Confidential. © 2021 Digital Turbine, Inc. | 20 Quick Overview of Mobile Ecosystem Brand Advertiser Performance Advertiser Brand Ad Network & Creative On Device Media On Device Inventory Demand Platform On Device DT Owned Ad-Tech DT Owned Not Owned App Publishers Ad Exchange
Slide 21: Digital Turbine now has a significantly larger TAM
Confidential. © 2021 Digital Turbine, Inc. | 21 Digital Turbine now has a significantly larger TAM Acquisitions have increased our TAM to over $500B by 2023 SUPPLY DEMAND CARRIER/OEM BRAND $10B Brand Advertising in Carrier Content Media PUBLISHER $400B+ Brand Advertising in Fyber and AdColony Footprin
Slide 22: Our legacy business tapped Day One paid UA
Confidential. © 2021 Digital Turbine, Inc. | 22 Our legacy business tapped Day One paid UA PERFORMANCE ADVERTISERS Advertising Benefits Supply Benefits DIGITAL TURBINE DIRECT Unique first look devices 750M Devices Unique monetization for OEMs and Carriers APP INSTALLS APP
Slide 23: Synergy 1: Performance & SingleTap ads run on our supply
Confidential. © 2021 Digital Turbine, Inc. | 23 DEMAND PLATFORM Driving more direct demand to publishers Leveraging unique on-device tech (STI) 1.5B Devices IN APP ADVERTISING AD APP Synergy 1: Performance & SingleTap ads run on our supply PERFORMANCE ADVERTISERS Advertising Benefits Supply Benefits DI
Slide 24: Synergy 2: Independent demand runs on our supply
Confidential. © 2021 Digital Turbine, Inc. | 24 DEMAND PLATFORM Driving more direct demand to publishers Leveraging unique on-device tech (STI) 1.5B Devices IN APP ADVERTISING AD APP Synergy 2: Independent demand runs on our supply 3RD PARTY DEMAND PLATFORM Largest independent ad marketplace Larger s
Slide 25: Synergy 3: Performance advertisers add DT for monetization
Confidential. © 2021 Digital Turbine, Inc. | 25 DEMAND PLATFORM Driving more direct demand to publishers Leveraging unique on-device tech (STI) 1.5B Devices IN APP ADVERTISING AD APP Synergy 3: Performance advertisers add DT for monetization 3RD PARTY DEMAND PLATFORM Largest independent ad marketplac
Slide 26: Synergy 4: Driving brand demand to our own supply
Confidential. © 2021 Digital Turbine, Inc. | 26 DEMAND PLATFORM Driving more direct demand to publishers Leveraging unique on-device tech (STI) 1.5B Devices IN APP ADVERTISING AD APP 3RD PARTY DEMAND PLATFORM Largest source of in-app brand inventory BRAND ADVERTISERS Unique demand outside of gaming 1
Slide 27: Synergy 5: Cross-selling has already boosted revenues
Confidential. © 2021 Digital Turbine, Inc. | 27 Synergy 5: Cross-selling has already boosted revenues McDonalds Brand Advertiser Brand Advertiser McDonalds Video in Content Media McDonalds Carrier Notifications McDonalds SingleTap DSP Performance Advertiser Pandora as preload Pandora install banner ad
Slide 28: These synergies create an economic flywheel
Confidential. © 2021 Digital Turbine, Inc. | 28 PUBLISHER Makes $$ PUBLISHER Makes $ 3RD PARTY SSP/EXCHANGE Pays Publisher Keeps DIGITAL TURBINE Pays Publisher Keeps NOW By owning the DSP and Exchange we keep more, Publishers can make more, while Advertisers could pay less These synergies create an e
Slide 29: SingleTap's path to $1B+ in revenue
Confidential. © 2021 Digital Turbine, Inc. | 29 Today Future Advertisers Live: ~15 150 Typical Advertiser: Top 500 mobile app Top 500 mobile app Average Monthly Spend Per Advertiser: ~$500k $750k Publishers Live: - 8 Typical Publisher: - Top mobile install drivers Average Monthly Revenue Per Publishe
Slide 30: Why we win
Confidential. © 2021 Digital Turbine, Inc. | 30 ● On-Device Software ● End-to-End Ad Stack ● Independence ● Holistic View of the User ● Brand Advertising WHY WE WIN
Slide 31: Q & A Part 1
Q & A Part 1
Slide 32: Financial Outlook
Financial Outlook Barrett Garrison
Slide 33: Rapid & Efficient Growth
Rapid & Efficient Growth Revenue Non-GAAP Adjusted EBITDA1 Non-GAAP EPS2 1Please see the Appendix for a definition of Non-GAAP Adjusted EBITDA. 2Please see the Appendix for a definition of Non-GAAP EPS.
Slide 34: Significant Scale and Expanding Operating Leverage
Confidential. © 2021 Digital Turbine, Inc. | 34 Significant Scale and Expanding Operating Leverage 1Please see the Appendix for a definition of Non-GAAP Adjusted EBITDA and a reconciliation table to GAAP net income. 4Please see the Appendix for definition of pro forma results. 5Recent Acquisitions inclu
Slide 35: Operating Leverage Drives Growth in Earnings
Confidential. © 2021 Digital Turbine, Inc. | 35 Operating Leverage Drives Growth in Earnings in millions except EPS 1st Half Fiscal 2022 1st Half Fiscal 2021 Change Y/Y Revenue4 $602.3 $333.0 81% Non-GAAP Adj. EBITDA1,4 $96.5 $34.0 184% Non-GAAP EPS2 $0.78 $0.28 176% 1Please see the Appendix for a de
Slide 36: Increased TAM + Increased Penetration = Significant Growth
Confidential. © 2021 Digital Turbine, Inc. | 36 Increased TAM + Increased Penetration = Significant Growth App Install Market $57 TAM ($B)- Total Mobile Advertising Total Available Market (TAM) in $Billions and Market Penetration Global TAM, Billions of Dollars Total Mobile Advertising Market TAM Pene
Slide 37: Long-Term Performance Growth Targets
Confidential. © 2021 Digital Turbine, Inc. | 37 Long-Term Performance Growth Targets Revenue Growth (Pro Forma Y/Y)4 Non-GAAP Gross Profit3 Non-GAAP Adj. EBITDA1 FY 2021 64% 32% 13% Long Term Targets 25-30% CAGR 35%+ 25%+ 1Please see the Appendix for a definition of Non-GAAP Adjusted EBITDA and a recon
Slide 38: Growth Path to Revenue of $4.0B+ & Adjusted EBITDA of $1.0B+
Confidential. © 2021 Digital Turbine, Inc. | 38 Growth Path to Revenue of $4.0B+ & Adjusted EBITDA1 of $1.0B+ 1Please see the Appendix for a definition of Non-GAAP Adjusted EBITDA and a reconciliation table to GAAP net income. 4Please reference the Appendix for definition of pro forma results. 3–5 Year
Slide 39: Why we believe in $4B
Confidential. © 2021 Digital Turbine, Inc. | 39 ● TAM is enormous with secular tailwinds making it grow even faster ● Differentiated strategy with On-Device and Independence ● End-to-End Products and Global Partners to make it happen ● Operating Leverage/Flywheel business model ● Track Record of Execu
Slide 40: Q & A Part 2
Q & A Part 2
Slide 41: Appendix
Appendix
Slide 42: Use of Non-GAAP Financial Measures
Confidential. © 2021 Digital Turbine, Inc. | 42 Use of Non-GAAP Financial Measures To supplement the Company’s consolidated financial statements presented in accordance with GAAP, Digital Turbine uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-
Slide 43: Definitions of Non-GAAP and Pro Forma Measures
Confidential. © 2021 Digital Turbine, Inc. | 43 Appendix: Definitions of Non-GAAP and Pro Forma Measures 1Non-GAAP Adjusted EBITDA is calculated as GAAP net income/(loss) excluding the following cash and non-cash expenses: interest expense/(income), foreign exchange transaction loss/(gain), income tax
Slide 44: GAAP Net Income to Non-GAAP Adjusted Earnings Per Share
Confidential. © 2021 Digital Turbine, Inc. | 44 GAAP Net Income to Non-GAAP Adjusted Earnings Per Share
Slide 45: Pro Forma GAAP Net Income to Non-GAAP Adjusted EBITDA
Confidential. © 2021 Digital Turbine, Inc. | 45 Pro Forma GAAP Net Income to Non-GAAP Adjusted EBITDA As Reported + Recent Acquisitions (Appreciate, AdColony, Fyber)