Digital Turbine, Inc. · NASDAQ:APPS
Digital Turbine — Investor Presentation (March 2015)
32 slides from Digital Turbine's investor presentation, Mar 24, 2015
Slide 1: Digital Turbine, Inc. Investor Presentation
Digital Turbine, Inc. Investor Presentation
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: Agenda
Agenda Market Opportunity Digital Turbine’s Solution Distribution & Customers Team & Investors Financial Overview © 2015 Digital Turbine, Inc. 3
Slide 4: Smartphones & apps are the technology platform of our time
Smartphones & apps are the technology platform of our time 1.4Bn +2Bn 1.3M smartphones shipped in 2014 smartphones predicted to ship in 2015 apps on both Google Play and the App Store +100k new apps each month Smartphone shipments are predicted to exceed more than 2 billion devices in 2015, while ap
Slide 5: Untapped Monetization Opportunity: Apps continue to dominate mobile
86% Of mobile time spent on applications Untapped Monetization Opportunity Apps continue to dominate mobile web App discovery is a challenge with more than 2.6M+ apps Total mobile app revenue forecast to reach $46B in 2016 Mobile is 20% of media time, but only 4% of advertising spend © 2015 Digital
Slide 6: Facebook mobile ad revenue and app install ads parallel
Facebook is currently driving approximately $2.5 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 7: 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 8: The Strategy
Build the Google AdWords for Apps to allow any Third Party to monetize mobile while developing a cohesive product suite containing Advertising, Content (CMS), and Pay to provide an end - to - end ecosystem for any 3 rd Party to ‘plug - in’ and monetize. The Strategy © 2015 Digital Turbine, Inc.
Slide 9: Our Business
Appia Network Expand other partners/supply sources Sell Advertising Ignite and IQ Sell Content MarketPlace and Pay DT Media Supply ongoing pipeline for DT Media Our Business © 2015 Digital Turbine, Inc. 9
Slide 10: Agenda
Agenda Market Opportunity Digital Turbine’s Solution Distribution & Customers Team & Investors Financial Overview © 2015 Digital Turbine, Inc. 10
Slide 11: Defining Appia Core vs. DT Media
Digital Turbine Media will focus as an advertiser solution for unique and exclusive carrier inventory. The primary products will be DT Ignite & DT IQ. Digital Turbine Media Appia , will continue to scale as a leading worldwide mobile user acquisition network, focused on multiple demand and supply so
Slide 12: Sustainable Differentiation
What will make our businesses have sustainable differentiation ? 1 2 Appia Core Appia Core – Able to run a profitable performance app - install business while building an APK managed DSP and leveraging DT Ad Units for Publishers Digital Turbine Media Digital Turbine Media – Unique Ad Units as the ow
Slide 13: Solution Overview
Solution 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 p
Slide 14: DT Ignite
DT Ignite App management service that enables mobile operators to control, manage and monetize the applications that are installed (pre or post) on smartphone devices Controls the entire install process for internal third party apps Allows mobile operators to obtain a new advertising revenue stream
Slide 15: DT IQ
Dynamic recommendations User focused Incremental revenue source Data - driven Multiple delivery channels but one set of intelligence and backend systems to enable delivering the correct app to the correct person. Right person, right app, right time DT IQ © 2015 Digital Turbine, Inc. 15
Slide 16: Optimizing User Flow -- Increase Performance
Digital Turbine’s 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 Goo
Slide 17: Digital Turbine Ignite Flow
Digital Turbine Ignite Flow 1 2 3 Optimizing User Flow -- Increase Performance Digital Turbine’s 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. 17
Slide 18: Agenda
Agenda Market Opportunity Digital Turbine’s Solution Distribution & Customers Team & Investors Financial Overview © 2015 Digital Turbine, Inc. 18
Slide 19: Customers Leveraging the DT Media Platform
Customers Leveraging the DT Media Platform © 2015 Digital Turbine, Inc. 19
Slide 20: Publishers Leveraging Appia Core Platform
Publishers Leveraging Appia Core Platform Appia partners with 250+ Publishers to monetize their mobile traffic © 2015 Digital Turbine, Inc. 20
Slide 21: App Install Advertisers
App Install Advertisers Appia works with 150 + Advertisers & Agencies, including 60 of the top 100 grossing apps on the App Store and Google Play © 2015 Digital Turbine, Inc. 21
Slide 22: #1 Independent App Install Network
0 20 40 60 80 100 120 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Millions #1 Independent App Install Network C rossed 100M sponsored app installs to date in February 2015 © 20
Slide 23: Agenda
Agenda Market Opportunity Digital Turbine’s Solution Distribution & Customers Team & Investors Financial Overview © 2015 Digital Turbine, Inc. 23
Slide 24: Revenue Guidance
Revenue Guidance – FY 15 and FY 16 $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. 24
Slide 25: FY 2016 Guidance Components
FY 2016 Guidance Components Total full year revenue for combined company in the range of $110 - 130M • Appia Core and DT Content businesses create a baseline of revenue at approximately 50+% of the midpoint • Advertising business including DT Ignite and DT IQ represents remainder of revenue DT Conte
Slide 26: Illustrative Content revenue model
Illustrative Content revenue model End User purchases content • Traditional Carrier content services, transactional content sales for services built, hosted and managed by Digital Turbine • API billing product enables third parties to monetize their services via direct carrier billing • Revenue is r
Slide 27: Illustrative Advertising revenue model
Illustrative Advertising revenue model Digital Turbine Media collects CPI rate from Advertiser $3.00 Gross Profit for Digital Turbine Media $0.60 Digital Turbine Media ‘sells ’ the advertising to DT Americas, EMEA, or APAC; Digital Turbine Gross Revenue $2.40 Revenue Share with Operator (varies by O
Slide 28: Agenda
Agenda Market Opportunity Digital Turbine’s Solution Distribution & Customers Team & Investors Financial Overview © 2015 Digital Turbine, Inc. 28
Slide 29: Experienced Executive Team
Experienced Executive Team Bill Stone – Chief Executive Officer • 20+ years experience in carrier relations, wireless, content, media, technology, marketing and distribution • Executive positions at Qualcomm, Verizon, and Vodafone © 2015 Digital Turbine, Inc. 29
Slide 30: Experienced Executive Team
Experienced Executive Team • Andrew Schleimer – Executive Vice President and Chief Financial Officer – President, Au Courant Capital Corp .; EVP of Strategic Development, Dick Clark Productions; EVP of Strategic Development, Six Flags; VP of M&A, UBS • James Alejandro – Chief Accounting Officer and
Slide 31: Experienced Executive Team; cont.
Experienced Executive Team; cont . • Jamie Fellows - Chief Product Officer – SVP of Product, Millennial Media; VP of Product Management, AOL; Director of Product, Management Advertising.com • Jeff Henderson – VP Engineering and IT Operations – Director of Engineering, Novarra; Director of Engineerin
Slide 32: 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