Digital Turbine, Inc. · NASDAQ:APPS
Digital Turbine — Investor Presentation (November 2020)
26 slides from Digital Turbine's investor presentation, November 2020
Slide 1: Investor Presentation
Investor Presentation November 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes "forward-looking statements" EBITDA (as well as Adjusted EBITDA); varying and often within the meaning of the U.S. federal securities laws. unpredictable levels of orders; the challenges inherent in Statements in this news release that are not stateme
Slide 3: Agenda
Agenda 01 Company Overview 02 Platform Overview 03 Real-Time Update Recent Performance COVID-19 Impact 04 Financial Summary 05 Q&A Confidential. © 2020 Digital Turbine, Inc. | 3
Slide 4: A Platform for Simplified App & Content Discovery
A Platform for Simplified App & Content Discovery Multiple Marketplace Trends Support Opportunity to Monetize Better App and Content Discovery CONSUMERS ADVERTISERS OPERATORS & OEMS Apps are Ingrained in our Lives Fraud is an Increasing Issue The Device UI/UX is Fertile 2.7 M apps in Google Play Sto
Slide 5: Company Operating at Global Scale
Company Operating 20+ Million 150+ Countries at Global Scale New devices per month with active campaigns 500+ 10+ 70% 4.2 Publicly 40+ Top Apps Traded Billion Million Million on Google Play NASDAQ Ticker - work with us APPS Apps delivered Devices with DAUs for Locations: Partnerships globally across
Slide 6: Validated by Global Market Leaders
Validated by Global Market Leaders Confidential. © 2020 Digital Turbine, Inc. | 6
Slide 7: Working with the Top Apps Across Popular Categories
Working with the Top Apps Across Popular Categories News Retail Social Music eCommerce Entertainment Finance Gaming Shopping Agency Confidential. © 2020 Digital Turbine, Inc. | 7
Slide 8: Platform Overview
| Platform Overview
Slide 9: Diverse Products Drive Revenue at Activation Point & Beyond
PLATFORM PRODUCT OFFERING Diverse Products Drive Revenue at Activation Point & Beyond Increasing Recurring Revenue from Everyday Content and App Engagement Opportunities First Day Every Day TV FIRST SCREEN SINGLETAP INSTALLS NOTIFICATIONS DISCOVERY TOOLBAR APP WIZARD WEB PORTAL DYNAMIC INSTALLS HOME
Slide 10: Monetization Starts at First Boot
ACTIVATION POINT PRODUCTS Monetization Starts at First Boot Dynamic Installs drive engagement and monetization from Day 1 OVERVIEW • Next-gen smart “factory preload” • Dynamic delivery installs most up to date app version USER EXPERIENCE • 100% Seamless – Icon appears in app tray or home screen CONF
Slide 11: New Products Drive Ongoing Revenue Streams
LIFE-OF-DEVICE PRODUCTS New Products Drive Ongoing Revenue Streams Everyday Content and App Experiences create monetization opportunities over life of device Sports News HOME SCREEN TOOL BAR WEB PORTAL A blend of news, weather and Easy access to fresh content Popular content on the apps, right on th
Slide 12: Single Tap Installs™
ATTRACTIVE NEW PRODUCTS Single Tap Installs™ Frictionlessly install apps from mobile ads. BETTER USER EXPERIENCE IMPROVED CONVERSIONS Provides uninterrupted user Reduces friction and improves experience without redirects mobile ad to install conversion away from site. rates by 2-5X COMPREHENSIVE & C
Slide 13: Real-Time Update
Real-Time Update
Slide 14: Real-Time Update – Key Developments
Real-Time Update – Key Developments Strong Financial Results Driven by Rising Demand from Advertisers and Broad Revenue Diversification September quarter revenue of $70.9 million and Non-GAAP Adjusted EBITDA1 of $16.5 million grew 116% and 265%, respectively, on a year-over-year basis Our Applicatio
Slide 15: Accelerating Secular Tailwinds: Surge in App Usage & Spending
Accelerating Secular Tailwinds: Surge in App Usage & Spending Confidential. © 2020 Digital Turbine, Inc. | 15
Slide 16: Proven Business Model Resilience Despite Near-Term Macro Concerns
Proven Business Model Resilience Despite Near-Term Macro Concerns Near-Term Investor Concerns & Broader Industry Headwinds o Reduced Carrier Store Traffic Poses Risk to New Phone Activation Levels • The majority of U.S. carrier stores were at at one point closed and are experiencing reduced walk-in
Slide 17: Beyond The Pandemic: Medium/Longer-Term Tailwinds
Beyond The Pandemic: Medium/Longer-Term Tailwinds Residual Demand for App Content/Services • Explosion in subscriber usage of apps and app-driven spending for entertainment, information, education, retail, food delivery, etc., is likely to have lasting behavioral effects, thereby reinforcing the val
Slide 18: Financial Summary
Financial Summary
Slide 19: Rapid and Efficient Growth
Rapid and Efficient Growth Revenue Adjusted EBITDA1 Non-GAAP EPS2 $70m $17m $0.15 116% Y/Y Growth in Fiscal Q2 $60m $14m $0.10 $50m $11m $40m $8m $0.05 $30m $5m $- $20m $2m $10m -$1m $(0.05) FQ4 FQ1 FQ2 FQ3 FQ4 FQ1 FQ2 FQ3 FQ4 FQ1 FQ2 FQ3 FQ4 FQ1 FQ2 FQ4 FQ1 FQ2 FQ3 FQ4 FQ1 FQ2 FQ3 FQ4 FQ1 FQ2 FQ3 F
Slide 20: 3 Key Drivers Accelerate Growth in Platform
3 Key Drivers Accelerate Growth in Platform New Products More Devices Advertiser Demand Platform Network Effects Confidential. © 2020 Digital Turbine, Inc. | 20
Slide 21: Growing Installed Base
MORE DEVICES Growing Installed Base Digital Turbine’s Application Media software has now been installed on more than 500 million total devices to date and was installed on more than 60 million new devices worldwide during the just-reported September quarter Device Growth Drivers Cumulative Applicati
Slide 22: Strong RPD Trajectory With U.S.-Based Carrier Partners
ADVERTISER DEMAND Strong RPD Trajectory With U.S.-Based Carrier Partners Robust advertiser demand, along with increased contribution from new products, once again drove a nearly 40% Y/Y increase in the average revenue-per-device with U.S.-based partners in Fiscal Q2 Revenue-Per-Device Trends with U.
Slide 23: Strong Revenue Growth
PLATFORM NETWORK EFFECTS Strong Revenue Growth Revenue grew 116% year-over-year in the just-reported September quarter and has grown at an overall compounded annual growth rate of greater than 58% over the past four full fiscal years. $70m $150m $138.7m $60m $125m $103.6m $50m $100m $40m $74.8m $75m
Slide 24: Operating Model Leverage
PLATFORM NETWORK EFFECTS Operating Model Leverage Revenue and gross profit grew 116% and 140%, respectively, in the most recently reported quarter, driving more than 200% annual growth in EBITDA, non-GAAP EPS and Free Cash Flow, showcasing the inherently profitable operating leverage in the model (i
Slide 25: Digital Turbine Investment Highlights
Digital Turbine Investment Highlights Highly-scalable platform business model >100% revenue growth and expanding profit uniquely positioned in high growth, >$100 margins in the first half of fiscal 2021 billion mobile advertising market contributed to significantly higher earnings Powered >4 billion
Slide 26: Thank you
digital turbine Thank you
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