Digital Turbine, Inc. · NASDAQ:APPS
Digital Turbine — Mandalay Digital Group — Investor Presentation (February 2014)
26 slides from Digital Turbine's investor presentation, Feb 25, 2014
Slide 1: End to End Mobile Content Solution for Carriers and OEMs
Confidential. © 2014 Mandalay Digital Group, Inc. Page 1 End to End Mobile Content Solution for Carriers and OEMs Investor Presentation February 2014 NASDAQ: MNDL www.mandalaydigital.com
Slide 2: Safe Harbor Statements
Confidential. © 2014 Mandalay Digital Group, Inc. Page 2 Safe Harbor Statements. Statements in this presentation concerning future results from operations, financial position, economic conditions, product r ele ases and any other statement that may be construed as a prediction of future performance
Slide 3: Corporate Profile
Confidential. © 2014 Mandalay Digital Group, Inc. Page 3 NASDAQ MNDL Share Price (02/21/14) $4.12 Fully Diluted Market Cap (02/21/14) $ 141 million Fully Diluted Shares Outstanding* 34.2 million Insider / Affiliate Ownership** 42 % Avg. Volume (3 month) 160,536 FYE 3/31/14 Revenue Guidance $25.0 to
Slide 4: The Company
Confidential. © 2014 Mandalay Digital Group, Inc. Page 4 The Company.
Slide 5: Digital Turbine, Logia Mobile and MIA acquisitions
Confidential. © 2014 Mandalay Digital Group, Inc. Page 5 Digital Turbine ( DT ) – Acquired in December 2011. Technology platform enabling media companies, mobile carriers, and OEM partners to take advantage of multiple mobile operating systems across multiple networks . Strategic Merit: Robust tec
Slide 6: Seasoned Management and World Class Board of Directors
Confidential. © 2014 Mandalay Digital Group, Inc. Page 6 Seasoned Management and World Class Board of Directors. Peter Adderton , CEO, MNDL and Director - Peter Adderton founded Boost Mobile in Australia in 2000. Under his leadership, Boost expanded to New Zealand, Canada and the United States. Pete
Slide 7: The Opportunity
Confidential. © 2014 Mandalay Digital Group, Inc. Page 7 The Opportunity.
Slide 8: The Market Implication
Confidential. © 2014 Mandalay Digital Group, Inc. Page 8 THE MARKET IMPLICATION Subscribers: • Over 6 Billion Global Subscribers / 4.5B in emerging markets. • ~300M in USA. Enormous Market Opportunity: • While optics do matter, US is only ~5% of market. Devices/Operating Systems: • Google ’ s Androi
Slide 9: MNDL Ripe to Capitalize From Recent Market Trends
Confidential. © 2014 Mandalay Digital Group, Inc. Page 9 MNDL Ripe to Capitalize From Recent Market Trends. Macro Trend 1. Google launch of KitKat version of Android, Google Play removed from Vodafone 2. 40% of Facebook’s mobile revenues came from CPI relationships in last quarter 3. Considerable M&
Slide 10: The Products
Confidential. © 2014 Mandalay Digital Group, Inc. Page 10 The Products.
Slide 11: An End-to-end Mobile Content Solution
Confidential. © 2014 Mandalay Digital Group, Inc. Page 11 An End - to - end Mobile Content Solution.
Slide 12: Ignite Product Overview
Confidential. © 2014 Mandalay Digital Group, Inc. Page 12 Ignite Product Overview. ▪ App management service that enables mobile operators and OEMs to control, manage and monetize the applications that are installed (pre or post) on smartphone devices. ▪ Controls the entire installing process for int
Slide 13: Digital IQ Product Overview
Confidential. © 2014 Mandalay Digital Group, Inc. Page 13 Digital IQ Product Overview. ▪ Intelligently unscrambles the myriad of available content to deliver a redefined and personalized user experience (“ UX ”). ▪ Innovative cross - platform user experience and Content Management System (CMS) deliv
Slide 14: Content Management Overview
Confidential. © 2014 Mandalay Digital Group, Inc. Page 14 Content Management Overview. ▪ The only marketplace dedicated for carriers and OEMs to compete with Google Play and iTunes. ▪ Over 100,000 applications serving over 200 million customers in more than 50 countries. ▪ The No.2 Music Retailer in
Slide 15: DT Pay Product Overview
Confidential. © 2014 Mandalay Digital Group, Inc. Page 15 DT Pay Product Overview. ▪ Connectivity to Operators as the “Visa” for processing mobile content transactions. ▪ Enable content providers (e.g. Electronic Arts) to bill directly to customer’s mobile bill. Pre - paid service coming. ▪ Launched
Slide 16: The Customers
Confidential. © 2014 Mandalay Digital Group, Inc. Page 16 The Customers.
Slide 17: Current Access to Over 1 Billion Subscribers
Confidential. © 2014 Mandalay Digital Group, Inc. Page 17 OPERATOR SUBSCRIBERS PRODUCTS STATUS Verizon ~100M Ignite, IQ Launch Summer 2014 Cellcom (Israel) 3M All In Commercial Use SingTel** ~450M Ignite, Content Mgmt and DT Pay In Commercial Use Axis Indonesia** ~15M IQ, Content Mgmt. In Commercial
Slide 18: Current Access to Over 1 Billion Subscribers (continued)
Confidential. © 2014 Mandalay Digital Group, Inc. Page 18 OPERATOR SUBSCRIBERS PRODUCTS STATUS Cricket ~5M Ignite In Commercial Use CNT (Ecuador) 500K Content Mgmt. In Commercial Use AIS (Thailand)** ~36M Ignite Launch Q1 ‘14 MSAI (India) ~2M smartphones/month Ignite Launch June ‘14 ALL US CARRIERS
Slide 19: The Models and Numbers
Confidential. © 2014 Mandalay Digital Group, Inc. Page 19 The Models and Numbers.
Slide 20: Business Model Example: IQ and Content Management
Confidential. © 2014 Mandalay Digital Group, Inc. Page 20 Business Model Example: IQ and Content Management. Consumer purchases a $1.00 application: ▪ $.30 to Operator, $.50 to Content Publisher. ▪ $.20 to Digital Turbine (Operator pays sales / VAT tax). ▪ Average customer life of 36 months (3% chur
Slide 21: Business Model Example: Ignite
Confidential. © 2014 Mandalay Digital Group, Inc. Page 21 Business Model Example: Ignite. Operator pays set - up fee for Ignite system (from $100K - $500K): ▪ Sliding revenue scale per device (average $.25). ▪ Revenue for DT for each pre - loaded device, regardless of customer behavior/spend. DT and
Slide 22: The Current Metrics – Recap
Confidential. © 2014 Mandalay Digital Group, Inc. Page 22 The Current Metrics – Recap. • Total global smart phone market = ~ 6 billion units (Asia Pacific planning to grow at ~6x greater than the US) • MNDL current total addressable market = ~1 billion units • MNDL technologies currently deployed on
Slide 23: Summary Financials
Confidential. © 2014 Mandalay Digital Group, Inc. Page 23 Summary Financials. • Zero debt on balance sheet, assets unencumbered • Fiscal 2014 revenue guidance at $25mm to $27mm (3/31 year - end) • Logia + MIA are established and growing content businesses with products and relationships that can be
Slide 24: Product Comparables
Confidential. © 2014 Mandalay Digital Group, Inc. Page 24 PRODUCT COMPARABLES Out - of - Box (Ignite) Mobile Application Management VMWare acquired Airwatch for $1.2BN in cash. IBM acquired Fiberlink for approximately $130M in cash. Citrix acquired Zenprise for $355M in cash. Search and Discovery (I
Slide 25: Other Key Opportunities
Confidential. © 2014 Mandalay Digital Group, Inc. Page 25 Other Key Opportunities. Strategic Opportunities: ▪ Continue acquisitions to accelerate distribution, technology, and revenue growth. ▪ Accelerate investment against strategic opportunities (e.g., IQ, books, music, video, etc.) Operational Op
Slide 26: Contacts
Confidential. © 2014 Mandalay Digital Group, Inc. Page 26 Contacts. Investor Relations Andrew Schleimer Mandalay Digital Group Direct: 646 - 845 - 7335 Mobile: 646 - 584 - 4021 a.schleimer@mandalaydigital.com Laurie Berman PondelWilkinson Inc. Direct: 310 - 279 - 5962 Mobile: 310 - 867 - 4365 lberma
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