Digital Turbine, Inc. · NASDAQ:APPS
Digital Turbine — 31st Annual Roth Conference (March 2019)
20 slides from Digital Turbine's conference presentation, March 2019
Slide 1: Roth Investor Conference
Roth Investor Conference March 2019
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes "forward-looking statements" unpredictable levels of orders; the challenges inherent in within the meaning of the U.S. federal securities laws. technology development necessary to maintain the Statements in this news release that are not statements of
Slide 3: Agenda
Agenda Company Overview Market Dynamics Mobile Delivery Platform Operational & Financial Update Q&A Confidential. © 2019 Digital Turbine, Inc. 3
Slide 4: Rapid and Efficient Growth
Rapid and Efficient Growth Revenue EBITDA *Adjusted EBITDA is is calculated as GAAP net income/(loss) excluding the following cash and non-cash expenses: interest expense, foreign exchange transaction loss/(gain), income tax Provision/(benefit), depreciation and amortization, stock-based compensatio
Slide 5: Company Operating at Global Scale
Company Operating at Global Scale 30 + +2.1B 250M+ Partnerships with mobile Apps preloaded globally Devices installed with operators and OEMs across devices Digital Turbine software 150 + +8M 70% Countries with active campaign Additional new devices per month Of the top grossing apps on Google Play
Slide 6: Platform Validated by Market Leaders
Platform Validated by Market Leaders Operators OEMs Confidential. © 2019 Digital Turbine, Inc. 6
Slide 7: Market Dynamics
Market Dynamics Apps are Ingrained in our Lives Rise of Fraud 3.5 M apps in Google Play Store while The rising cost of fraud per quarter for average user has 30 apps on device using mobile app marketers is estimated 10 per day $700-$800M per quarter Time Spent in Apps Duopoly Users in the US average
Slide 8: Mobile Delivery Platform
Install Recommend Mobile Delivery Notify PLATFORM Engage Advertise Monetize Confidential. © 2019 Digital Turbine, Inc. 8
Slide 9: Digital Turbine Platform
Digital Turbine Platform Setup Wizard Opt-in app recommendations Dynamic Installs Seamless app delivery Smart Folder Organized, contextual recommendations Notifications Increase engagement BYOD/ Open Market Reach new customers Single Tap Installs Frictionless app installs Media Hub Increase engageme
Slide 10: Growth Drivers
Growth Drivers Multiple levers to drive accelerated growth x x = New Products More Devices Advertiser Demand Platform Network Effects Confidential. © 2019 Digital Turbine, Inc. 10
Slide 11: Expansion of Product Portfolio Driving New Revenue Streams
Expansion of Product Portfolio Driving New Revenue Streams D Y NA MI C I NS T A L L S Recurring Revenue with Engagement Opportunities - Device Life (~2 Years) + OOB E WI Z A RD S I NG L E T A P S MA RT F OL D E R NOT I F I C A T I ONS B Y OD ME D I A HU B Device Activation (Day 1) Confidential. © 20
Slide 12: Single Tap Installs
PRODUCTS Single Tap Installs™ Frictionlessly install apps from mobile ads. Better User Experience Improved Conversions Users stay in the mobile web Single Tap Installs reduce friction and experience and are not redirected. improve web to app conversion rates With Single Tap Installs, users are by up
Slide 13: Mobile Media Hub
Mobile Media Hub Rich, personalized media content for a valuable and engaging user experience Video Sports Entertainment Weather News Revenue generation with each click Branded and whitelabel options available Reach new users and your existing base Light weight and configurable Confidential. © 2019
Slide 14: Growing Installed Base
MORE DEVICES Growing Installed Base Our Mobile Delivery Platform has been installed on more than 230 million total devices to date and was installed on approximately 28 million new devices in the December quarter Device Growth Drivers Cumulative Ignite-Installed Devices 250 • Market Share Expanding,
Slide 15: Strong RPD Trajectory With Strategic Partners
ADVERTISER DEMAND Strong RPD Trajectory With Strategic Partners Robust advertiser demand, along with increased contribution from new products, drove a greater than 40% Y/Y increase in the average revenue-per-device with U.S.-based partners in Q3 of fiscal 2019 Revenue-Per-Device Trends with Leading
Slide 16: Strong Revenue Growth
PLATFORM NETWORK EFFECTS Strong Revenue Growth Mobile Delivery Platform* revenue growth of 34% year-over-year in the just-reported December quarter and an expected compounded annual growth rate of 67% over the past 3 years $35m $120m Quarterly Revenue Annual FY Revenue $103m** $30m $100m FY16-FY19E
Slide 17: Operating Model Leverage
PLATFORM NETWORK EFFECTS Operating Model Leverage Strong cash flow growth in Q3 of fiscal 2019 on revenue growth of 34% and cash operating expense decline of 5%, highlighting the inherent operating leverage in the model FQ318 FQ319 % Change Y/Y Revenue $22.7 $30.4 34% Non-GAAP Gross Profit1 $7.8 $11
Slide 18: Strengthened Balance Sheet
Strengthened Balance Sheet Positive free cash flow generation and conversion of convertible notes has resulted in a vastly improved balance sheet approaching debt-free by the end of the quarter (in millions) Dec. 31, 2017 Dec. 31, 2018 Cash & Cash Equivalents $6.9 $10.1 Convertible Notes O/S (Face V
Slide 19: Operational Update – Key Recent Developments
Operational Update – Key Recent Developments Enhanced DT Mobile Delivery Platform Is Gaining Momentum with New Functionalities and New Partner Adoption Platform Performance & Development q Reported record revenue of $30.4m, representing 34% Y/Y growth, in the just-reported December quarter, and exce
Slide 20: Investment Highlights
| Investment Highlights Highly-scalable platform business >80% revenue growth Y/Y in Experienced management team model uniquely positioned in high FY18 led to positive free cash and board with a track record of growth, $100 billion mobile flow of >$5 million and outstanding business growth at advert
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