Digital Turbine, Inc. · NASDAQ:APPS
Digital Turbine — Canaccord Genuity 39th Annual Growth Conference 2019
20 slides from Digital Turbine's conference presentation, August 2019
Slide 1: Canaccord Genuity 39th Annual Growth Conference
Canaccord Genuity 39th Annual Growth Conference August 2019
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 Real-Time Update Company Overview Market Dynamics Mobile Delivery Platform Financial Results Q&A Confidential. © 2019 Digital Turbine, Inc. 3
Slide 4: Real-Time Update – Key Developments
Real-Time Update – Key Developments Strong Results in the Just-Reported Fiscal Q1 as Penetration Story Unfolds q Exceeded consensus estimates with record-high revenue, gross profit, non-GAAP net income and Adjusted EBITDA in the June quarter reported earlier this week* q Revenue and Non-GAAP gross p
Slide 5: Rapid and Efficient Growth
Rapid and Efficient Growth Revenue Adjusted EBITDA $35m $5m $30m $4m $3m $25m $2m 38% Y/Y Growth $20m in FQ1 $1m $15m $0m $10m -$1m FQ4 '17 FQ1 '18 FQ2 '18 FQ3 '18 FQ4 '18 FQ1 '19 FQ2 '19 FQ3 '19 FQ4 '19 FQ1 '20 FQ4 '17 FQ1 '18 FQ2 '18 FQ3 '18 FQ4 '18 FQ1 '19 FQ2 '19 FQ3 '19 FQ4 '19 FQ1 '20 *Adjuste
Slide 6: Company Operating at Global Scale
Company Operating at Global Scale 40 + +2.3B Apps preloaded globally 300M+ Partnerships with mobile Devices installed with operators and OEMs across devices Digital Turbine software 150 + +10M 70% Countries with active campaign Additional new devices per month Of the top grossing apps on Google Play
Slide 7: Platform Validated by Market Leaders
Platform Validated by Market Leaders Operators OEMs Confidential. © 2019 Digital Turbine, Inc. 7
Slide 8: Market Dynamics
Market Dynamics Apps are Ingrained in our Lives Rise of Fraud 3.5 M apps in Google Play Store while The rising cost of fraud per quarter for average user has 30 apps on device using mobile app marketers is estimated 10 per day $700-$800M per quarter Time Spent in Apps Duopoly Users in the US average
Slide 9: Mobile Delivery Platform
Install Recommend Mobile Delivery Notify PLATFORM Engage Advertise Monetize Confidential. © 2019 Digital Turbine, Inc. 9
Slide 10: Digital Turbine Platform
Digital Turbine Platform Setup Wizard Opt-in app recommendations Dynamic Installs Seamless app delivery Smart Folder Organized, contextual recommendations Notifications Increase engagement BYOD/ Open Market Reach new customers Single Tap Installs Frictionless app installs Media Hub Increase engageme
Slide 11: Growth Drivers
Growth Drivers Multiple levers to drive accelerated growth x x = New Products More Devices Advertiser Demand Platform Network Effects Confidential. © 2019 Digital Turbine, Inc. 11
Slide 12: Expansion of Product Portfolio Driving New Revenue Streams
Expansion of Product Portfolio Driving New Revenue Streams D Y NA MI C I NS T A L L S Recurring Revenue with Engagement Opportunities - Device Life (~2 Years) + OOB E WI Z A RD S I NG L E T A P S MA RT F OL D E R NOT I F I C A T I ONS B Y OD ME D I A HU B Device Activation (Day 1) Confidential. © 20
Slide 13: Single Tap Installs
PRODUCTS Single Tap Installs™ Frictionlessly install apps from mobile ads. Better User Experience Improved Conversions Users stay in the mobile web Single Tap Installs reduce friction and experience and are not redirected. With improve web to app conversion rates by Single Tap Installs, users are no
Slide 14: Mobile Media Hub
Mobile Media Hub Rich, personalized media content for a valuable and engaging user experience Video Sports Entertainment Weather News Revenue generation with each click Branded and whitelabel options available Reach new users and your existing base Light weight and configurable Confidential. © 2019
Slide 15: Growing Installed Base
MORE DEVICES Growing Installed Base Our Mobile Delivery Platform has now been installed on more than 300 million total devices to date and was installed on more than 30 million new devices worldwide during the June quarter Cumulative Ignite-Installed Devices 300m Device Growth Drivers 270m 240m § Ma
Slide 16: Strong RPD Trajectory With Strategic Partners
ADVERTISER DEMAND Strong RPD Trajectory With Strategic Partners Robust advertiser demand, along with increased contribution from new products, drove a greater than 30% Y/Y increase in the average revenue-per-device with U.S.-based partners in the June quarter Revenue-Per-Device Trends with Leading U
Slide 17: Strong Revenue Growth
PLATFORM NETWORK EFFECTS Strong Revenue Growth Mobile Delivery Platform* revenue growth accelerated to 38% year-over-year in the just-reported June quarter and has grown at an overall compounded annual growth rate of greater than 67% over the past 3 fiscal years $32m $120m Quarterly Revenue Annual F
Slide 18: Operating Model Leverage
PLATFORM NETWORK EFFECTS Operating Model Leverage Revenue and gross profit grew 38% and 78%, respectively, in the June quarter on cash operating expense growth of 20%, driving EBITDA growth and showcasing the inherent operating leverage in the model (in millions) Fiscal Q1 ‘19 Fiscal Q1 ‘20 Change Y
Slide 19: Strengthened Balance Sheet
Strengthened Balance Sheet Positive free cash flow generation, along with the full conversion of convertible notes and paydown of short-term debt has resulted in a vastly improved balance sheet with zero debt (in millions) June 30, 2017 June 30, 2018 June 30, 2019 Cash & Cash Equivalents $6.3 $8.6 $
Slide 20: Investment Highlights
| Investment Highlights Highly-scalable platform business 38% revenue growth and 78% Experienced management team model uniquely positioned in high gross profit growth in FQ1 and board with a track record of growth, $100 billion mobile contributed to higher operating outstanding business growth at ad
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