Slide 1: Needham Interconnect Conference August 4, 2015
Needham Interconnect Conference August 4, 2015
Slide 2: Safe Harbor Statements. Use of Non-GAAP Financial Measures.
Safe Harbor Statements. Use of Non-GAAP Financial Measures. To supplement the Company’s condensed historical financial statements and/or Statements in this presentation that are not statements of historical fact and that forward looking financials presented in accordance with U.S. Generally Accepted
Slide 3: Smartphones & apps are the technology platform of our time
Smartphones & apps are the technology platform of our time 1.3B 1.4M $45B $4.4B smartphones apps on both mobile app mobile shipped in 2014 Google Play and revenue advertising the App Store forecast in revenue in 2015 2015 Mobile app revenues estimated at $45B in 2015, with advertising revenue repres
Slide 4: Facebook Parallel
Facebook Parallel Facebook is currently driving approximately $2.9 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 1.3 billion mobile monthly active users Source:
Slide 5: 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 6: Our Business
Our Business Segment Advertising Content DT DT Media Appia Core DT Pay Marketplace Product Mobile Mobile Ad App and Ignite & IQ Payment Network Content Store Solution Advertisers are the customer Carriers are the customer Customer Application installs on devices End user content downloads trigger pa
Slide 7: Now in Execution Phase
Now in Execution Phase Development Acquisition Execution Strong foundation through product development and customer acquisition Optimize the business Launch and model to scale grow top and Sign customers bottom line customers to Develop right meet products to demand Identify meet growing and opportu
Slide 8: Growth Levers
Growth Levers Expand Increase Optimize Product Distribution Revenue Footprint Footprint per Device © 2015 Digital Turbine, Inc. 8
Slide 9: Product Overview
Product Overview Digital Turbine Digital Turbine IQ Ignite mobile device customized user management solution experience and app with targeted app discovery tool distribution capabilities Digital Turbine Digital Turbine Marketplace Pay an application and content management content store and mobile pa
Slide 10: Ignite: Optimizes User Flow which increases Performance
Ignite: Optimizes User Flow which increases Performance Ignite simplifies the conversion flow for app installs from 6 steps to 2 steps, creating an order of magnitude increase in mobile monetization Current Flow for Facebook, Appia, and others 1: Open app or mobile web site 4: Install App 5: Open Ap
Slide 11: Ignite: Optimizes User Flow which increases Performance
Ignite: Optimizes User Flow which increases Performance Ignite simplifies the conversion flow for app installs from 6 steps to 2 steps, creating an order of magnitude increase in mobile monetization Ignite Flow 1 2 3 © 2015 Digital Turbine, Inc. 11
Slide 12: 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 IQ Suite of Products Operator CRM Digital Turbine Data Appia Recommendation Data Server Intel. Organizer Discover xyo Engine Third Party Native IQ App Historical Data App Ads API Perform. Device & App Data Customizable IQ Products
Slide 13: Appia Core Diversifies Revenues
Appia Core Diversifies Revenues Appia will continue to scale as a leading worldwide mobile user acquisition network • Partnering with 150+ app install advertisers – Drives both Appia Core and DT Media ads – Exposure to Apple Ecosystem, with ~20% of revenue from iOS advertisers • Solid foundation of
Slide 14: 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 U.S. • Deutsche Telekom now launched in Europe with Ignite • Marketplace also expanding DT Ignite/IQ relation
Slide 15: Increase Distribution Footprint
Increase Distribution Footprint Strategy: Connect any Third Party wanting to monetize mobile applications on any Screen Other Third Parties (Distributors, Operators OEMs Chipset suppliers, Retailers, etc.) © 2015 Digital Turbine, Inc. 15
Slide 16: Digital Turbine Mobile Operator Partners
Digital Turbine Mobile Operator Partners © 2015 Digital Turbine, Inc. 16
Slide 17: Expanding OEM relationships
Expanding OEM relationships ~30M devices shipped per year ~6M devices shipped per year ~10M devices shipped per year ~40M smartphones shipped per year © 2015 Digital Turbine, Inc. 17
Slide 18: Strong Demand for DT Media Inventory
Strong Demand for DT Media Inventory © 2015 Digital Turbine, Inc. 18
Slide 19: Optimize Revenue per Device
Optimize Revenue per Device Customers are asking for additional pricing models that will deliver better quality Focus is the optimization of the overall revenue per device by utilizing all pricing models Past Present Future •CPI (Cost per •CPI •CPI Install) •Cost per •CPP Placement •CPA (CPP) •Targe
Slide 20: FY 2016 – Q1 Revenue Pre-Announcement
FY 2016 – Q1 Revenue Pre-Announcement $20.0M $18.6M - $18.7M $18.0M • Q1 FY16 highlights: $16.1M $16.0M • ~230% growth in DT Ignite and DT IQ $14.0M revenue to $3.2M $12.0M • Achieved $4M in $10.2M $10.0M revenue in second half of June $8.0M • DT Media revenue $6.0M in second half of $4.0M June was
Slide 21: Reiterating Full Year Guidance – FY 2016
Reiterating Full Year Guidance – FY 2016 $140M $110M - $130M Guidance $120M Range $100M • FY16: • Revenue to be in $80M the range of: $110M - $130M $58M $60M • Non-GAAP adjusted gross $40M margin in the mid- $28M 30%-range $20M • Positive Non-GAAP adjusted EBITDA $0M FY15 FY15 FY16 including bonus A
Slide 22: 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 • Andrew Schleimer – CFO • Harris Thurmond – Ignite and IQ
Slide 23: Investment Thesis
Investment Thesis At the center of exponential growth in marketing and app-install advertising spend on mobile Strong secular tail winds of global mobile, app, and install advertising growth Recent acquisitions create single, large scale ecosystem Uniquely positioned to deliver apps and ads to a dev
Slide 24: Thank you!
Thank you! digital