Digital Turbine, Inc. · NASDAQ:APPS
Digital Turbine — Investor Day (November 2021)
40 slides from Digital Turbine's investor day presentation, Nov 11, 2021
Slide 1: Investor Day
() digital turbine Investor Day Nov. 11. 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes "forward-looking statements" within the meaning of complex technology platform given the Company's relatively limited resources; a the U.S. federal securities laws. Statements in this presentation that are not decline in general economic conditions na
Slide 3: Agenda
Agenda 01 Company Update (Bill Stone) Mission/Vision/Why We Are Here 05 Partner Round Table (Matt Tubergen) Business Operations Numbers, Modeling, and 02 and Revenue Synergies (Mike Ng) 06 Looking into the Future (Barrett Garrison) 03 Q&A Part 1 07 Q&A Part 2 04 Product Demos Confidential. © 2021 Dig
Slide 4: The Company
Bill Stone The Company
Slide 5: A lot has changed since we last met
A lot has changed since we last met APPS Analyst Day June 2018 (Slide 51) Confidential. © 2021 Digital Turbine, Inc. | 5
Slide 6: Operating at global scale with strong results
Operating at global scale with strong results Key Stats $1B 40+ 750M 45K+ 750+ 1.5B Operator/OEM Ignite On-Device Publisher Advertiser Monthly Revenue Partnerships Footprint Partnerships Relationships Reach Revenue EBITDA Non-GAAP EPS Rapid & Efficient Growth Confidential. © 2021 Digital Turbine, Inc.
Slide 7: The largest independent mobile growth platform
The largest independent $ UX Global wireless OEMs/operators Want better experiences and fair mobile growth platform share of ad dollars Powered by on-device technology ● Access to exclusive carrier & OEM inventory ● High-impact On-Device experiences App Publishers APP ● Full suite of UA and monetiza
Slide 8: Market trends & opportunities support our independent growth platform vision
Market trends & opportunities support our independent growth platform vision MARKET TRENDS MARKET OPPORTUNITIES Apps are Ingrained in our Lives Advertisers are Seeking Simplicity 2.7 M apps in Google Play Store while average Advertising complexity is impacting efficiency – The Duopoly user has 30 apps
Slide 9: Consumers are spending more time in mobile …
Consumers are spending more time in mobile … Mobile Internet: average daily time spent in Share of all media time spent in mobile (U.S.) the US, app vs. browser, 2018-2022 Hrs: mins per day among population 4:06 4:11 4:01 3:35 3:15 3:35 3:41 3:47 2:49 3:10 0:25 0:24 0:25 0:24 0:23 Confidential. © 202
Slide 10: … More time in mobile has led to more installs & ad spend
… More time in mobile has led to more installs & ad spend App Growth Continues to be Strong . . . . . . Leading to Upward Revisions in Advertising Spend Global App Store and Google Play Installs 2020-2025 Global Mobile Ad Spend, Billions of Dollars Source eMarketer, March 2021 & October 2021 Confiden
Slide 11: . . . And, mobile ad spend has shifted towards Android
. . . 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 Confidential. © 2021 Digital Turbine, Inc. | 11
Slide 12: … We’ve only just begun to tap these growing markets.
… We’ve only just begun to tap these growing markets. In-App Monetization is Today’s Big Opportunity In-App Purchasing is Tomorrow’s Opportunity For every dollar of ad money paid to get new users Legislation points to opportunities to leverage our direct carrier billing 2 to 4 dollars of ads flow thr
Slide 13: Digital Turbine now has a significantly larger TAM
Digital Turbine now has a significantly larger TAM . . . Acquisitions have increased our 2021 TAM from a share of $96B to over $369B Before After Acquisitions Acquisitions $96B+ $369B+ Total Mobile Advertising Market, 2021 App Install Market, 2021 $96B+ App Install Market $5B On-Device App Installs S
Slide 14: We service this TAM with much more supply & product
We service this TAM with much more supply & product Before After Acquisitions Acquisitions 750MDEVICES 750M 1.5B DEVICES DEVICES 1st Day Every Day 1st Day Every Day ● Dynamic ● SingleTap ● Dynamic ● SingleTap Installs ● Notifications Installs ● Notifications ● Wizard ● Wizard ● In-App Monetization ● B
Slide 15: Significant tailwinds throughout the news cycle
Significant tailwinds throughout the news cycle Facebook ad revenue seen Snap, Facebook, Twitter and A new Senate bill would totally feeling brunt of Apple privacy YouTube lose nearly $10bn after upend Apple and Google’s app changes iPhone privacy changes store dominance Google is slashing the amount
Slide 16: Tailwinds support significant future opportunities
Tailwinds support significant future opportunities Our platform is well situated to expand to take advantage of market tailwinds: Carrier/OEM App Stores In-App Payments iOS & Other OSs Connected Television Cross Device Advertising Connected Devices (Demo) (Demo) Confidential. © 2021 Digital Turbine, I
Slide 17: Extending Opportunity with Our Telcos
Extending Opportunity with Our Telcos Increasing partner investment 1-2 Products Live 3-4 5-12 Products Live Products Live Opportunities Confidential. © 2021 Digital Turbine, Inc. | 17
Slide 18: The Same Drivers Support New & Current Business
The Same Drivers Support New & Current Business New Opportunities ● App Stores ● In-App Billing [Code on More ● Future Devices Devices] Current Business ● On Device Media ● Demand AdTech [Get More Media [More Products ● AdTech Supply Dollars in Products] Within Code] Confidential. © 2021 Digital Turb
Slide 19: Business Operations and Revenue Synergies
Mike Ng Business Operations and Revenue Synergies
Slide 20: Quick Overview of Mobile Ecosystem
Quick Overview of Mobile Ecosystem On Device On Device Media Inventory Performance Advertiser Demand Platform App Publishers Ad Exchange Brand Advertiser Brand Ad Network & Creative On Device Ad-Tech Not Owned DT Owned DT Owned Confidential. © 2021 Digital Turbine, Inc. | 20
Slide 21: Digital Turbine now has a significantly larger TAM
Digital Turbine now has a significantly larger TAM Acquisitions have increased our TAM to over $500B by 2023 SUPPLY CARRIER/OEM PUBLISHER Synergy 1 Driving performance and $10B $400B+ SingleTap demand to our own BRAND 4 supply Brand Advertising Brand Advertising in in Carrier Content Media Fyber and
Slide 22: Our legacy business tapped Day One paid UA
Our legacy business tapped Day One paid UA PERFORMANCE DIGITAL TURBINE APP Advertising Benefits Supply Benefits ADVERTISERS DIRECT Unique monetization for APP INSTALLS Unique first look devices OEMs and Carriers 750M Devices Confidential. © 2021 Digital Turbine, Inc. | 22
Slide 23: Synergy 1: Performance & SingleTap ads run on our supply
Synergy 1: Performance & SingleTap ads run on our supply PERFORMANCE DIGITAL TURBINE APP Advertising Benefits Supply Benefits ADVERTISERS DIRECT Unique monetization for APP INSTALLS Unique first look devices OEMs and Carriers 750M Devices Advertising Benefits Supply Benefits DEMAND PLATFORM AD APP Levera
Slide 24: Synergy 2: Independent demand runs on our supply
Synergy 2: Independent demand runs on our supply PERFORMANCE DIGITAL TURBINE APP Advertising Benefits Supply Benefits ADVERTISERS DIRECT Unique monetization for APP INSTALLS Unique first look devices OEMs and Carriers 750M Devices DEMAND PLATFORM AD APP Leveraging unique Driving more direct IN APP ADVE
Slide 25: Synergy 3: Performance advertisers add DT for monetization
Synergy 3: Performance advertisers add DT for monetization PERFORMANCE DIGITAL TURBINE APP Advertising Benefits Supply Benefits ADVERTISERS DIRECT Unique monetization for APP INSTALLS Unique first look devices OEMs and Carriers 750M Devices DEMAND PLATFORM AD APP Leveraging unique Driving more direct I
Slide 26: Synergy 4: Driving brand demand to our own supply
Synergy 4: Driving brand demand to our own supply PERFORMANCE DIGITAL TURBINE APP Advertising Benefits Supply Benefits ADVERTISERS DIRECT Unique monetization for APP INSTALLS Unique first look devices OEMs and Carriers 750M Devices DEMAND PLATFORM AD APP Leveraging unique Driving more direct IN APP ADV
Slide 27: Synergy 5: Cross-selling has already boosted revenues
Synergy 5: Cross-selling has already boosted revenues Brand Advertiser McDonalds McDonalds McDonalds McDonalds Brand Video in Content Carrier SingleTap DSP Advertiser Media Notifications Performance Advertiser Advertiser to Publisher Pandora install banner ad in iOS Pandora as Farmville as app and iO
Slide 28: These synergies create an economic flywheel
These synergies create an economic flywheel ADVERTISER DIGITAL TURBINE 3RD PARTY DSP 3RD PARTY PUBLISHER SSP/EXCHANGE THEN Keeps Keeps Digital Turbine keeps only Pays X to get: a small part of the install Keeps revenue stream Pays APP DSP Pays Exchange Pays Makes Publisher $ ADVERTISER DIGITAL TURBIN
Slide 29: SingleTap’s path to $1B+ in revenue
SingleTap’s path to $1B+ in revenue Today Future Advertisers Live: ~15 150 Top 500 mobile app Top 500 mobile app Typical Advertiser: Average Monthly Spend Per Advertiser: ~$500k $750k Publishers Live: - 8 Top mobile install drivers Typical Publisher: - Average Monthly Revenue Per Publisher: - $1.5M
Slide 30: Part 1 Q&A
Part 1 Q&A
Slide 31: Financial Outlook
Barrett Garrison Financial Outlook
Slide 32: Rapid & Efficient Growth
Rapid & Efficient Growth Non-GAAP Revenue Non-GAAP EPS2 Adjusted EBITDA1 1 Please see the Appendix for a definition of Non-GAAP Adjusted EBITDA. 2 Please see the Appendix for a definition of Non-GAAP EPS.
Slide 33: Significant Scale and Expanding Operating Leverage
Significant Scale and Expanding Operating Leverage Pro Forma Revenue ($MM)4 Pro Forma Non-GAAP Adj. EBITDA1,4 ($MM) 5 1 Please see the Appendix for a definition of Non-GAAP Adjusted EBITDA and a reconciliation table to GAAP net income. 4 Please see the Appendix for definition of pro forma results. 5 Re
Slide 34: Operating Leverage Drives Growth in Earnings
Operating Leverage Drives Growth in Earnings 1st Half 1st Half in millions except EPS Change Y/Y Fiscal 2022 Fiscal 2021 Revenue4 $602.3 $333.0 81% Non-GAAP Adj. EBITDA1,4 $96.5 $34.0 184% Non-GAAP EPS2 $0.78 $0.28 176% 1 Please see the Appendix for a definition of Non-GAAP Adjusted EBITDA and a reco
Slide 35: Part 2 Q&A
Part 2 Q&A
Slide 36: Appendix
Appendix
Slide 37: Use of Non-GAAP Financial Measures
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-GAAP adjusted net income and earnings per share
Slide 38: Appendix: Definitions of Non-GAAP and Pro Forma Measures
Appendix: Definitions of Non-GAAP and Pro Forma Measures 1 Non-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 provision, depreciation and amortization, sto
Slide 39: GAAP Net Income to Non-GAAP Adjusted Earnings Per Share
GAAP Net Income to Non-GAAP Adjusted Earnings Per Share Confidential. © 2021 Digital Turbine, Inc. | 44
Slide 40: Pro Forma GAAP Net Income to Non-GAAP Adjusted EBITDA
Pro Forma GAAP Net Income to Non-GAAP Adjusted EBITDA As Reported + Recent Acquisitions (Appreciate, AdColony, Fyber) Confidential. © 2021 Digital Turbine, Inc. | 45