Digital Turbine, Inc. · NASDAQ:APPS
Digital Turbine — 6th Annual B. Riley & Co. Investor Conference (May 2015)
23 slides from Digital Turbine's conference presentation, May 13, 2015
Slide 1: 6th Annual B. Riley & Co. Investor Conference
1 6 th Annual B. Riley & Co . Investor Conference May 13, 2015 Bill Stone, CEO
Slide 2: Safe Harbor Statements
Safe Harbor Statements. Statements in this presentation that are not statements of historical fact and that concern future results from operations, financial position, economic conditions, product releases, revenue and product synergies, cost savings, product or competitive enhancements and any othe
Slide 3: Investment Thesis
Investment Thesis x At the center of exponential growth in marketing and app - install advertising spend on mobile x Strong secular tail winds of global mobile, app, and install advertising growth x Recent acquisitions create single, large scale ecosystem x Uniquely positioned to deliver apps and ad
Slide 4: Smartphones & apps are the technology platform of our time
Smartphones & apps are the technology platform of our time © 2015 Digital Turbine, Inc. 4 Mobile app revenues estimated at $45B in 2015, with advertising revenue representing $4.4B and forecast to grow +57% annually Source: Strategy Analytics, IDC, Gartner, TechCrunch, Google, Apple 1.3B 1.4M $45B s
Slide 5: Facebook driving approximately $2.4 billion in quarterly mobile ad revenue
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 Facebook Parallel 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
Appia Core Expand other partners/supply sources for advertisers Sell Advertising Ignite and IQ Sell Content MarketPlace and Pay DT Media Supply ongoing pipeline of advertisers to Ignite and IQ Our Business © 2015 Digital Turbine, Inc. 7
Slide 8: Now in Execution Phase
Now in Execution Phase Identify growing and dynamic market opportunity Develop right products to meet opportunity Sign customers to meet demand Launch and scale customers Optimize the business model to grow top and bottom line © 2015 Digital Turbine, Inc. 8 Development Acquisition Execution Strong f
Slide 9: Growth Levers
Growth Levers Expand Product Footprint Increase Distribution Footprint Optimize Revenue per Device © 2015 Digital Turbine, Inc. 9
Slide 10: Product Overview
Product Overview mobile device management solution with targeted app distribution capabilities Digital Turbine Ignite customized user experience and app discovery tool Digital Turbine IQ an application and content store Digital Turbine Marketplace Digital Turbine Pay content management and mobile pa
Slide 11: Ignite simplifies the conversion flow for app installs from 6 steps to 2
Ignite simplifies the conversion flow for app installs from 6 steps to 2 steps, creating an order of magnitude increase in mobile monetization 1: Open app or mobile web site Current Flow for Facebook, Appia, and others 2: Click on mobile ad for app install 3: Go to app store or Google Play 4: Instal
Slide 12: Ignite Flow
Ignite Flow 1 2 3 Ignite simplifies the conversion flow for app installs from 6 steps to 2 steps , creating an order of magnitude increase in mobile monetization © 2015 Digital Turbine, Inc. 12 Ignite: Optimizes User Flow which increases Performance
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 © 2015 Digital Turbine, Inc. 13 Digital Turbine Recommendation Server Operator CRM Data Device & App Data Historical App Perform. Appia Data Intel. xyo Engine Third Party Data IQ Suite of Products Organizer Discover Native Ads IQ A
Slide 14: Appia Core Diversifies Revenues
Appia Core Diversifies Revenues Appia will continue to scale as a leading worldwide mobile user acquisition network © 2015 Digital Turbine, Inc. 14 • Partnering with 150+ app install advertisers – Drives both Appia Core and DT Media ads – E xposure to Apple Ecosystem, with ~20% of revenue from iOS a
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 relation
Slide 16: Increase Distribution Footprint
Increase Distribution Footprint Operators OEM’s Other Third Parties (Distributors, Chipset suppliers, Retailers, etc.) © 2015 Digital Turbine, Inc. 16 Strategy: Connect any Third Party wanting to monetize mobile applications on any Screen
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 Past • CPI (Cost per Install) Present • CPI • Cost per Placement (CPP) • Cost per Action (CPA) Future • CPI • CPP • CPA • Targeting (e.g., Precision) • Set - up Wizard • App Widget • eCPM • Utility Preloads (e.g., Weather) © 2015 Digital Turbine, Inc. 19 ▪ Customers are a
Slide 20: Reiterating Guidance – FY15 and FY16
Reiterating Guidance – FY15 and FY16 $28M - $32M $58M - $62M $110M - $130M $0M $20M $40M $60M $80M $100M $120M $140M FY15 As-reported basis FY15 Pro Forma* FY16 Guidance • Assumes Appia owned for full fiscal year 2015 © 2015 Digital Turbine, Inc. 20 • FY16: • Revenue to be in the range of: $110M - $
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 © 2015 Digital Turbine, Inc. 21 • Andrew Schleimer – CFO
Slide 22: Board of Directors and Shareholder Composition
Board Composition Rob Deutschman , Chairman Peter Guber Paul Schaeffer Chris Rogers Jeff Karish Bill Stone Jud Bowman Craig Forman Board of Directors and Shareholder Composition 33% 12% 55% % Shares Held Former Appia Insiders Public Float Equity Ownership Structure Shareholder base comprised of DT i
Slide 23: Thank you!
Thank you! yy digital x
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