Digital Turbine, Inc. · NASDAQ:APPS
Digital Turbine — 30th Annual ROTH Conference (March 2018)
21 slides from Digital Turbine's conference presentation, March 2018
Slide 1: 30th Annual ROTH Conference March 2018
30th Annual ROTH Conference March 2018
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 © 2017 Digital Turbine, Inc. 3
Slide 4: Platform validated by market leaders
Platform validated by market leaders Operators OEMs Partnered with 30+ Active campaigns in over mobile operators & OEMs 150+ countries Ignite has delivered over Adding over 1,100,000,000 7,500,000 app preloads new devices per month Ignite is installed on Pay performs more than 130,000,000+ 8,000,000
Slide 5: © 2017 Digital Turbine, Inc.
© 2017 Digital Turbine, Inc. 5
Slide 6: Industry Statistics Highlight the Growing Influence of Digital Turbine's Platform
Industry Statistics Highlight the Growing Influence of Digital Turbine’s Platform § Digital Turbine currently ranks #3, trailing only Facebook and Google, in the AppsFlyer rankings for “fraud-free” non-gaming app installs on Android devices in North America. § With added reach internationally via pa
Slide 7: Smartphones and Apps are the Technology Ecosystem of Our Time
Smartphones and Apps are the Technology Ecosystem of Our Time Digital Turbine is uniquely positioned to capitalize on this growing market opportunity < 1.49 billion smartphones shipped globally in 2016, with Android’s overall market share reaching 85 percent < The “App Economy” is here to stay – 80%
Slide 8: Evolving Market Dynamics
Evolving Market Dynamics Rise of open market 1 Increased number of customers buying off contract and from non-carrier locations. Cracks in duopoly 2 Advertisers looking to diversify spend due to market concentration concerns and fraud fears. 3 Operators are diversifying their business model Looking
Slide 9: Digital Turbine: Building Connections and Facilitating Transactions
Digital Turbine: Building Connections and Facilitating Transactions Solving problems and creating opportunities for all parties in today’s app economy End Customers Advertisers Operators & OEMs App discovery & app install Problem Profitable user acquisition Cut out of the app economy friction § Prom
Slide 10: Digital Turbine Mobile Delivery Platform
Digital Turbine Mobile Delivery Platform Modular platform delivers comprehensive solutions tailored to customer need Monetization Operational Efficiency grow revenue through DT’s one-stop easily deliver and manage your owned campaign management and operated apps Pay Integration Insight Of carrier bi
Slide 11: Platform businesses drive more shareholder value
Platform businesses drive more shareholder value Number of Platform Companies App Ignite Home Producers screens Platform Source: applicoinc.com_2016 . © 2017 Digital Turbine, Inc. 11
Slide 12: Product expansion + Device Growth = Scalable Revenue Growth
Product expansion + Device Growth = Scalable Revenue Growth Product Expansion Single-Tap Rev Per Open Market Folders / Notifications Device Accelerating Revenue Growth Revenue per Slot Silent = # Devices on Platform # of Devices 130+M New product launches + Device growth = Scalable Growth © 2017 Dig
Slide 13: Operational Update
Operational Update Strong O&O Revenue Growth Amid Growing Advertiser Demand & Expanding Mobile Platform Opportunity < Total revenue reached a record of $38.0 million in fiscal Q3 (December) driven by “O&O” revenue growth of 93% Y/Y < Ignite has now been installed on more than 130 million total devic
Slide 14: Financial Update
Financial Update Positive Free Cash Flow* and Strengthened Balance Sheet < Strong O&O revenue growth and a strategically-realigned cost structure led to positive free cash flow* in the December quarter < Non-GAAP gross profit* increased 96% Y/Y in fiscal Q3, while cash operating expenses* increased
Slide 15: O&O Revenue Growth Being Driven by Proliferation of Ignite
O&O Revenue Growth Being Driven by Proliferation of Ignite Ignite has been successfully installed on more than 130 million devices to date and is currently being installed at a rate of approximately 100 million new devices per year $70 90 Ignite Installed Devices 80 $60 Trailing 12-Months 70 Total I
Slide 16: Evolving Mix Shift Toward Higher Margin O&O Revenue
Evolving Mix Shift Toward Higher Margin O&O Revenue; Scalable Business Model O&O revenue of $22.7 million in fiscal Q3 (December) increased more than 90% Y/Y and now represents 60% of total revenue, helping to drive expansion in gross profit and cash flow profitability Adjusted EBITDA* $12m $2m $40m
Slide 17: Management Team and Board of Directors
Management Team and Board of Directors Management Team Board of Directors < Bill Stone, CEO < Rob Deutschman q Chairman of the Board q Bill was previously SVP at QUALCOMM Inc. He has served as q Managing Director at Cappello Capital CEO/President of multiple startups and has extensive q Former Manag
Slide 18: Investment Highlights
Investment Highlights Investment Highlights Highly-scalable platform business model uniquely positioned in high growth, $100 billion mobile advertising market 30+ partnerships and long-term distribution deals with top-tier global carriers including Verizon, AT&T, America Movil and Reliance Jio Power
Slide 19: Summary Income Statement
Summary Income Statement Fiscal Year Ending March 31 ($ in millions, except for per share data) F3Q17 F4Q17 F1Q18 F2Q18 F3Q18 Total Net Revenues $22.3 $22.4 $26.1 $27.9 $38.0 YoY Growth % -7% -3% 9% 22% 71% Non-GAAP Gross Profit* $5.2 $6.2 $7.2 $8.0 $10.3 Non-GAAP Gross Margin* 24% 28% 28% 29% 27% N
Slide 20: Balance Sheet
Balance Sheet ($ in 000's) 31-Dec-17 ASSETS Current assets Cash and cash equivalents 6,883 Restricted cash 331 Accounts receivable, net of allowances 32,494 Deposits 155 Prepaid expenses and other current assets 551 Total current assets 40,414 Property and equipment, net 2,693 Deferred tax assets 59
Slide 21: Appendix: Non-GAAP Measures of Performance
*Appendix: Non-GAAP Measures of Performance < Non-GAAP gross profit and net income are defined as GAAP gross profit and net income adjusted to exclude the effect of stock-based compensation, amortization of intangibles, and changes in the fair value of derivatives and warrants related to the Septemb
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