AUSTIN, Texas, June 14, 2017 /PRNewswire/ -- Digital Turbine,
Inc. (Nasdaq: APPS), the Company empowering operators and Original
Equipment Manufacturers ("OEMs") around the globe with end-to-end
mobile solutions, announced financial results for the fiscal full
year and quarter ended March 31,
2017.
Recent Highlights:
- Fiscal fourth quarter revenue totaled $22.4 million, slightly higher than the total
revenue reported for the seasonally strong fiscal third quarter.
Operators & OEMs ("O&O") revenue of $11.6 million in the fiscal fourth quarter was
down 1% sequentially and up 46% versus the prior year period.
Year-over-year growth was driven by more meaningful contributions
from new international carrier and OEM partners added during fiscal
2017.
- GAAP net loss for fiscal fourth quarter was $6.9 million, or ($0.10) per share. Non-GAAP Adjusted
EBITDA1 during the fiscal fourth quarter was a loss of
$0.7 million, as compared to a loss
of $2.1 million in the preceding
quarter, with improvement driven primarily by the combination of
higher margins in the O&O business and a reduction in cash
operating expenses during the quarter, as persistent efforts to
more efficiently re-align resources and extract operational cost
savings yielded lower cash operating expenses for a second
consecutive quarter.
- GAAP gross margin increased to 17% during the fiscal fourth
quarter of 2017, as compared to 15% in the fiscal third quarter;
Non-GAAP adjusted gross margin2 increased to 28% in the
fiscal fourth quarter of 2017, up from the 24% reported in the
fiscal third quarter of 2017. Gross margin expansion is being
driven by the evolving mix shift toward higher margin O&O
business.
- Full fiscal year 2017 revenue totaled $91.6 million. O&O revenue of $40.2 million increased 81% year-over-year and
represented 44% of total fiscal year 2017 revenue.
- Content revenue rebounded to $7.2
million in the fiscal fourth quarter, representing
sequential growth of 18%, as DT Pay experienced a resumption of
sequential growth across its Australian carrier partners.
- The Company successfully deployed Ignite on the Samsung Galaxy
S8 and S8+ in April 2017 with its key
carrier partners amid robust advertiser demand for the homescreens
of these new devices. As part of this launch, AT&T became the
first partner to utilize a "Blended Flow" version of Ignite that
enables a two-pronged approach whereby silently installed app
preloads supplement a start-up app recommendation wizard.
- The Company recently announced an agreement with Lenovo, a
top-ten global smartphone manufacturer, to utilize the Ignite 3.0
platform across its leading brands, including Motorola, Lenovo and
Medion smartphones. Ignite is now live and generating revenue on
Moto E and E+ devices globally, with additional devices scheduled
going forward.
- The Company recently entered into a partnership with Indus OS,
the second-most popular smartphone OS in India, which is the world's fastest-growing
smartphone market. Indus is currently available on eight million
smartphones across 80 different smartphone models, and aims to add
100 million users by 2020. As part of a multiyear agreement, the
Ignite Platform will provide and manage apps for Indus OS.
- The Company had $6.1 million in
cash & cash equivalents as of March 31,
2017. On May 23, 2017, the
Company entered into a credit agreement with Western Alliance Bank
for a $5 million secured credit
facility to further bolster its balance sheet and provide
additional means with which to support working capital and fund
growth initiatives going forward.
"Fiscal 2017 ended on a positive note for Digital Turbine, and
fiscal 2018 is off to a promising start," said Bill Stone, CEO. "The March quarter was
perhaps most noteworthy for the meaningful improvement in gross
margin and Adjusted EBITDA realized in the quarter. On the
top-line, we managed modest sequential growth versus the seasonally
strong December quarter, largely driven by a significant rebound in
our DT Pay business, which more than offset a decline in our legacy
A&P revenue. Total revenue within our O&O business
was essentially flat quarter-over-quarter; however, an evolving mix
shift toward higher-margin partners on the platform and new
Ignite-related initiatives led to significantly improved gross
margins in the quarter. The gross margin expansion, along
with diligent expense management, yielded a significant improvement
in Adjusted EBITDA during the quarter and moved the Company closer
toward realizing its stated profitability objectives. In late
April, we successfully deployed Ignite on the widely-heralded
Samsung Galaxy S8 and S8+ with our key partners, including Verizon,
AT&T/Cricket, America Movil and
U.S. Cellular. Improved launch execution internally and
strong advertiser demand for these new phones positions us well for
the current quarter and beyond.
"On the business development front, the past few months have
been highlighted by the signing of Lenovo, our largest OEM partner
to date, and the recent announcement of our partnership with Indus
OS, which marks our initial such partnership with an operating
system and adds to our rapidly-developing strategic footprint
within the world's fastest-growing smartphone market. In
terms of product development, we continue to make meaningful
progress leveraging our Ignite 3.0 platform and its expanded array
of services to benefit our partners as well as their end
users. Specifically, we recently began to trial 'Ignite
Delivers,' which we believe offers significant promise as a secure
path toward improved click-to-install rates for publishers and
advertisers alike, along with the appeal of lesser app install
friction for end users. We will continue to provide updates with
respect to the ongoing development and go-to-market strategies of
our Ignite 3.0 initiatives in coming months and quarters."
Mr. Stone concluded, "As we begin fiscal 2018, I am extremely
encouraged by our improved top-line and bottom-line
execution. Prolific business development and highly-focused
product development efforts, along with disciplined expense
controls, have begun to yield significantly improved operating
results. We have made real progress to be sure, but there is
still so much yet to accomplish at Digital Turbine. I remain
convinced that our Ignite platform is ideally positioned in the
ever-evolving mobile applications marketplace. We remain
committed to leveraging this platform's unique and diverse set of
capabilities in order to more fully capitalize on the enormous
opportunity in front of us, and in doing so, generate meaningful
shareholder returns in the quarters and years ahead."
Fourth Quarter Fiscal 2017 Financial Results
Total revenue for the fiscal fourth quarter of 2017 was
$22.4 million, representing an
increase of less than 1% sequentially and a decline of 3%
year-over-year. Advertising segment revenue of $15.2 million declined 6% sequentially and
increased 1% year-over-year. The Company further divides its
Advertising segment revenues into two components – Operators &
OEMs ("O&O") and Advertisers & Publishers ("A&P") – in
order to better reflect the entities with whom it partners.
O&O revenue of $11.6 million
during the fiscal fourth quarter was down 1% sequentially when
compared to the seasonally strong fiscal third quarter, but grew
46% year-over-year. Year-over-year growth in the O&O
business was primarily attributable to incremental contributions
from new carrier and OEM partners added to the Ignite platform
since the beginning of fiscal 2017.
A&P revenue of $3.6 million
declined 19% sequentially and 49% year-over-year stemming from the
continuing shift in advertiser budget allocation toward
programmatic and RTB systems away from legacy business development
deals. As a reminder, in late 2016/early 2017, the Company
enacted a plan to more efficiently re-align resources and
right-size the A&P business to achieve profitability at a lower
revenue level going forward.
Content revenue of $7.2 million
increased 18% sequentially and declined 10% year-over-year.
The sequential rebound in Content revenues was largely reflective
of a resumption of revenue growth for DT Pay with Australian
carrier partners during the quarter. Additionally, new DT Pay
implementations in India,
Singapore, Pakistan and the
Philippines are continuing to progress through initial ramp
phases.
GAAP gross margin was 17% for the fiscal fourth quarter of
fiscal 2017, as compared to the 15% GAAP gross margin for the
fiscal third quarter of 2017. Non-GAAP adjusted gross
margin2 increased to 28% for the fiscal fourth quarter
of 2017, as compared to 24% for the fiscal third quarter of 2017.
The increase in GAAP and non-GAAP gross margin, despite
approximately flat total revenue, was driven by a richer business
mix within our higher-margin O&O business, as new partners have
boarded the Ignite platform at higher contribution margins.
The reconciliation between GAAP and non-GAAP financial results for
all referenced periods is provided in a table immediately following
the Unaudited Consolidated Statements of Operations and
Comprehensive Loss below.
Net loss for the fourth quarter of fiscal 2017 was $6.9 million, or ($0.10) per share, as compared to the net loss
for the fiscal third quarter of 2017 of $2.6
million, or ($0.04) per
share.
Non-GAAP adjusted EBITDA1 loss for the fourth quarter
of fiscal 2017 was $0.7 million, as
compared to a Non-GAAP adjusted EBITDA loss of $2.1 million for the fiscal third quarter.
Please see 'Use of Non-GAAP Measures' at the end of this press
release for the definition of adjusted EBITDA and a reconciliation
to GAAP net loss.
Full Year Fiscal 2017 Financial Results
Total revenue for fiscal 2017 was $91.6
million, representing annual growth of 6% when compared to
fiscal 2016 total revenue. Advertising segment revenue of
$59.4 million increased 3%
year-over-year. Within Advertising, O&O revenue of
$40.2 million grew 81% and comprised
68% of Advertising segment revenue in fiscal 2017, up from 38% in
fiscal 2016. Growth in O&O revenue during fiscal 2017 was
attributable to increased revenue with preexisting carrier partners
as well as revenue derived from new carrier and OEM partners added
to the Ignite platform over the course of the fiscal year.
A&P revenue of $19.2 million
declined 46% year-over-year, as a pronounced shift in advertiser
budget allocation toward programmatic and RTB systems away from
legacy business development deals had a material impact on A&P
revenue during fiscal 2017.
Content revenue of $32.1 million
increased 12% year-over-year. Growth in the Content business
was spurred by higher DT Pay revenues with its Australian carrier
partners, as well as incremental contributions from new DT Pay
implementations in other regions such as India, Singapore, Pakistan and the Philippines. DT Pay
revenues comprised more than 95% of total Content revenue during
fiscal 2017.
GAAP gross margin was 15% for fiscal 2017, as compared to an 11%
GAAP gross margin for fiscal 2016. Non-GAAP adjusted gross
margin2 was 23% for fiscal 2017, as compared to 24% for
fiscal 2016. The reconciliation between GAAP and non-GAAP
financial results for all referenced periods is provided in a table
immediately following the Unaudited Consolidated Statements of
Operations and Comprehensive Loss below.
Net loss for fiscal 2017 was $24.3
million, or ($0.36) per share,
as compared to the net loss for fiscal 2016 of $28.0 million, or ($0.46) per share.
Non-GAAP adjusted EBITDA1 loss for fiscal 2017 was
$8.9 million, as compared to a
Non-GAAP adjusted EBITDA loss of $9.1
million for fiscal 2016. Please see 'Use of Non-GAAP
Measures' at the end of this press release for the definition of
adjusted EBITDA and a reconciliation to GAAP net loss.
Business Outlook
Based on information available as of June
14, 2017, the Company expects fiscal first quarter 2018
revenue of approximately $25 million,
along with further sequential improvement in non-GAAP adjusted
EBITDA1. The Company expects to generate positive
non-GAAP adjusted EBITDA1 for the full year fiscal
2018.
About Digital Turbine, Inc.
Digital Turbine works at
the convergence of media and mobile communications, delivering
end-to-end products and solutions for mobile operators, device
OEMs, app advertisers and publishers, that enable efficient user
acquisition, app management and monetization opportunities. The
company's products include Ignite™, a mobile device management
solution with targeted app distribution capabilities, Discover™, a
customized user experience and app discovery tool, Marketplace™, an
application and content store, and Pay™, a content management and
mobile payment solution. Digital Turbine Media encompasses a
leading independent user acquisition network as well as an
advertiser solution for unique and exclusive carrier inventory.
Digital Turbine has delivered more than 150 million app installs
for hundreds of advertisers. In addition, more than 31 million
customers use Digital Turbine's solutions each month across more
than 20 global operators. The company is headquartered in
Austin, Texas, with global offices
in Durham, San Francisco, Singapore, Sydney and Tel
Aviv. For additional information visit
www.digitalturbine.com or connect with Digital Turbine on Twitter
at @DigitalTurbine.
www.digitalturbine.com
Twitter: https://twitter.com/DigitalTurbine
Facebook: https://www.facebook.com/DigitalTurbineInc
LinkedIn:
https://www.linkedin.com/company/digital-turbine?trk=tyah&trkInfo=tas:digital+tur
Conference Call
Management will host a conference call
today at 4:30 p.m. ET to discuss its
fourth quarter financial results and provide operational updates on
existing business. To participate, interested parties should dial
855-238-2713 in the United
States or 412-542-4111 from international locations. A
webcast of the conference call will be available at
ir.digitalturbine.com/events.
For those who are not able to join the live call, a playback
will be available through June 21,
2017. The replay can be accessed by dialing 877-344-7529 in
the United States or 412-317-0088
from international locations, passcode 10108501.
The conference call will discuss guidance and other material
information.
Use of Non-GAAP Financial Measures
To supplement the
Company's condensed financial statements presented in accordance
with U.S. Generally Accepted Accounting Principles ("GAAP"),
Digital Turbine uses non-GAAP measures of certain components of
financial performance. These non-GAAP measures include
non-GAAP adjusted gross profit, non-GAAP gross margin and non-GAAP
adjusted EBITDA. Reconciliations to the nearest GAAP
measures of all non-GAAP measures included in this press release
can be found in the tables below.
Non-GAAP measures are provided to enhance investors' overall
understanding of the Company's current financial performance,
prospects for the future and as a means to evaluate
period-to-period comparisons. The Company believes that these
Non-GAAP measures provide meaningful supplemental information
regarding financial performance by excluding certain expenses and
benefits that may not be indicative of recurring core business
operating results. The Company believes the non-GAAP measures
that exclude such items when viewed in conjunction with GAAP
results and the accompanying reconciliations enhance the
comparability of results against prior periods and allow for
greater transparency of financial results. The Company
believes Non-GAAP measures facilitate management's internal
comparison of its financial performance to that of prior periods as
well as trend analysis for budgeting and planning purposes.
The presentation of Non-GAAP measures is not intended to be
considered in isolation or as a substitute for, or superior to, the
financial information prepared and presented in accordance with
GAAP.
1Non-GAAP adjusted EBITDA is calculated as GAAP net
loss excluding the following cash and non-cash expenses: interest
expense, foreign transaction gains (losses), income taxes,
depreciation and amortization, stock-based compensation expense,
the change in fair value of derivatives and warrants that are
recorded related to the September
2016 convertible notes offering, other income / (expense),
impairment of intangible assets, loss on disposal of fixed assets,
and loss on extinguishment of debt. Readers are cautioned
that Non-GAAP adjusted EBITDA should not be construed as an
alternative to net income (loss) determined in accordance with U.S.
GAAP as an indicator of performance, which is the most comparable
measure under GAAP.
2Non-GAAP adjusted gross profit and gross margin are
defined as GAAP gross profit and gross margin adjusted to exclude
the effect of intangible amortization expense, impairment of
intangible assets, and depreciation of software. Readers are
cautioned that Non-GAAP adjusted gross profit and gross margin
should not be construed as an alternative to gross margin
determined in accordance with U.S. GAAP as an indicator of
profitability or performance, which is the most comparable measure
under GAAP.
Non-GAAP adjusted gross profit and gross margin and adjusted
EBITDA are used by management as internal measures of profitability
and performance. They have been included because the Company
believes that the measures are used by certain investors to assess
the Company's financial performance before non-cash charges and
certain costs that the Company does not believe are reflective of
its underlying business.
Forward-Looking Statements
This news release
includes "forward-looking statements" within the meaning of the
U.S. federal securities laws. Statements in this news release that
are not statements of historical fact and that concern future
results from operations, financial position, economic conditions,
product releases and any other statement that may be construed as a
prediction of future performance or events, including financial
projections and growth in various products are forward-looking
statements that speak only as of the date made and which involve
known and unknown risks, uncertainties and other factors which may,
should one or more of these risks uncertainties or other factors
materialize, cause actual results to differ materially from those
expressed or implied by such statements.
These factors and risks include:
- risks associated with Ignite adoption among existing customers
(including the impact of possible delays with major carrier and OEM
partners in the roll out for mobile phones deploying Ignite)
- actual mobile device sales and sell-through where Ignite is
deployed is out of our control
- risks associated with the timing of Ignite software pushes to
the embedded bases of carrier and OEM partners
- risks associated with end user take rates of carrier and OEM
software pushes which include Ignite
- new customer adoption and time to revenue with new carrier and
OEM partners is subject to delays and factors out of our
control
- risks associated with fluctuations in the number of Ignite
slots across US carrier partners
- required customization and technical integration which may slow
down time to revenue notwithstanding the existence of a
distribution agreement
- risk that strong Apple iPhone sales could result in a
disproportionately low amount of Android sales
- risks associated with delays in major mobile phone launches, or
the failure of such launches to achieve the scale
- customer adoption that either we or the market may expect
- risks associated with the level of our secured and unsecured
indebtedness
- ability to comply with financial covenants in outstanding
indebtedness
- the difficulty of extrapolating monthly demand to quarterly
demand
- the challenges, given the Company's comparatively small size,
to expand the combined Company's global reach, accelerate growth
and create a scalable, low-capex business model that drives EBITDA
(as well as Adjusted EBITDA)
- challenges to realize anticipated operational efficiencies,
revenue (including projected revenue) and cost synergies and
resulting revenue growth, EBITDA (and Adjusted EBITDA) and free
cash flow conversion from the Appia merger
- the impact of currency exchange rate fluctuations on our
reported GAAP financial statements, particularly in regard to the
Australian dollar
- ability as a smaller Company to manage international
operations
- varying and often unpredictable levels of orders; the
challenges inherent in technology development necessary to maintain
the Company's competitive advantage such as adherence to release
schedules and the costs and time required for finalization and
gaining market acceptance of new products
- changes in economic conditions and market demand
- rapid and complex changes occurring in the mobile
marketplace
- pricing and other activities by competitors
- pricing risks associated with potential commoditization of the
A&P business as competition increases and new technologies, in
particular Real Time Bidding, add pricing pressure
- developing RTB for A&P to the level required to compete in
the increasingly important programmatic bidding area will require
additional investment that, given the Company's limited resources,
may not be available in the time or on the terms necessary
- derivative and warrant liabilities on our balance sheet will
fluctuate as our stock price moves and will also produce changes in
our income statement; these fluctuations and changes might
materially impact our reported GAAP financials in an adverse
manner, particularly if our stock price were to rise
- technology management risk as the Company needs to adapt to
complex specifications of different carriers and the management of
a complex technology platform given the Company's relatively
limited resources, and
- other risks including those described from time to time in
Digital Turbine's filings on Forms 10-K and 10-Q with the
Securities and Exchange Commission (SEC), press releases and other
communications. You should not place undue reliance on these
forward-looking statements. The Company does not undertake to
update forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
Investor Relations Contacts:
Brian Bartholomew
Digital Turbine
brian.bartholomew@digitalturbine.com
Digital Turbine,
Inc. and Subsidiaries
|
Consolidated
Statements of Operations and Comprehensive Loss
|
|
|
|
|
|
|
|
|
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
|
March 31,
2017
|
|
March 31,
2016
|
|
March 31,
2017
|
|
March 31,
2016
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
Net
revenues
|
|
$
22,397
|
|
$
23,032
|
|
$
91,553
|
|
$
86,541
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
License fees and
revenue share
|
|
16,192
|
|
17,296
|
|
70,252
|
|
66,185
|
Other direct cost of
revenues
|
|
2,298
|
|
2,084
|
|
7,938
|
|
10,537
|
Total cost of
revenues
|
|
18,490
|
|
19,380
|
|
78,190
|
|
76,722
|
Gross
profit
|
|
3,907
|
|
3,652
|
|
13,363
|
|
9,819
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Product
development
|
|
2,970
|
|
3,085
|
|
12,035
|
|
10,983
|
Sales and
marketing
|
|
1,882
|
|
1,641
|
|
6,537
|
|
6,067
|
General and
administrative
|
|
2,909
|
|
4,302
|
|
16,811
|
|
18,705
|
Total operating
expenses
|
|
7,761
|
|
9,028
|
|
35,383
|
|
35,755
|
Loss from
operations
|
|
(3,854)
|
|
(5,376)
|
|
(22,020)
|
|
(25,936)
|
Interest and other
income / (expense), net
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(599)
|
|
(449)
|
|
(2,628)
|
|
(1,816)
|
Foreign exchange
transaction loss
|
|
(75)
|
|
(9)
|
|
(88)
|
|
(29)
|
Change in fair value
of convertible note
embedded derivative liability
|
|
(1,948)
|
|
-
|
|
475
|
|
-
|
Change in fair value
of warrant liability
|
|
(650)
|
|
-
|
|
147
|
|
-
|
Loss on
extinguishment of debt
|
|
-
|
|
-
|
|
(293)
|
|
-
|
Loss on disposal of
fixed assets
|
|
-
|
|
(6)
|
|
-
|
|
(37)
|
Other income /
(expense)
|
|
(102)
|
|
(20)
|
|
(1)
|
|
-
|
Total interest and
other income / (expense), net
|
|
(3,374)
|
|
(484)
|
|
(2,388)
|
|
(1,882)
|
Loss from operations
before income taxes
|
|
(7,228)
|
|
(5,860)
|
|
(24,408)
|
|
(27,818)
|
Income tax provision
/ (benefit)
|
|
(303)
|
|
(32)
|
|
(144)
|
|
214
|
Net loss
|
|
$
(6,925)
|
|
$
(5,828)
|
|
$
(24,264)
|
|
$
(28,032)
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income / (loss):
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
(71)
|
|
(147)
|
|
(119)
|
|
(150)
|
Comprehensive
loss:
|
|
$
(6,996)
|
|
$
(5,975)
|
|
$
(24,383)
|
|
$
(28,182)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per common share
|
|
$
(0.10)
|
|
$
(0.09)
|
|
$
(0.36)
|
|
$
(0.46)
|
Weighted average
common shares outstanding, basic and diluted
|
|
66,595
|
|
66,278
|
|
66,511
|
|
61,763
|
Digital Turbine,
Inc. and Subsidiaries
|
Consolidated
Balance Sheets
|
|
|
|
|
(in thousands,
except par value and share amounts)
|
|
|
|
|
|
March 31,
2017
|
|
March 31,
2016
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
6,149
|
|
$
11,231
|
Restricted
cash
|
331
|
|
-
|
Accounts receivable,
net of allowances of $597 and $464, respectively
|
16,554
|
|
17,519
|
Deposits
|
121
|
|
213
|
Prepaid expenses and
other current assets
|
510
|
|
583
|
Total current
assets
|
23,665
|
|
29,546
|
Property and
equipment, net
|
2,377
|
|
1,784
|
Cost method
investment
|
-
|
|
999
|
Deferred tax
assets
|
352
|
|
500
|
Intangible assets,
net
|
4,565
|
|
12,490
|
Goodwill
|
76,621
|
|
76,621
|
TOTAL
ASSETS
|
$
107,580
|
|
$
121,940
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
19,868
|
|
$
15,300
|
Accrued license fees
and revenue share
|
8,529
|
|
9,622
|
Accrued
compensation
|
1,073
|
|
1,353
|
Short-term debt, net
of debt issuance costs and discounts of $0 and $568,
respectively
|
-
|
|
10,432
|
Other current
liabilities
|
1,304
|
|
2,147
|
Total current
liabilities
|
30,774
|
|
38,854
|
Convertible notes,
net of debt issuance costs and discounts of $6,315 and $0,
respectively
|
9,685
|
|
-
|
Convertible note
embedded derivative liability
|
3,218
|
|
-
|
Warrant
liability
|
1,076
|
|
-
|
Other non-current
liabilities
|
782
|
|
815
|
Total
liabilities
|
45,535
|
|
39,669
|
Stockholders'
equity
|
|
|
|
Preferred
stock
|
|
|
|
Series A convertible
preferred stock at $0.0001 par value; 2,000,000 shares authorized,
100,000 issued and outstanding (liquidation preference of
$1,000)
|
100
|
|
100
|
Common
stock
|
|
|
|
$0.0001 par value:
200,000,000 shares authorized; 67,368,462 issued and 66,634,006
outstanding at March 31, 2017; 67,019,703 issued and 66,284,606
outstanding at March 31, 2016
|
8
|
|
8
|
Additional paid-in
capital
|
299,580
|
|
295,423
|
Treasury stock
(754,599 shares at March 31, 2017 and March 31, 2016)
|
(71)
|
|
(71)
|
Accumulated other
comprehensive loss
|
(321)
|
|
(202)
|
Accumulated
deficit
|
(237,251)
|
|
(212,987)
|
Total stockholders'
equity
|
62,045
|
|
82,271
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
107,580
|
|
$
121,940
|
Digital Turbine,
Inc. and Subsidiaries
|
Consolidated
Statement of Cash Flows
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
March 31,
2017
|
|
March 31,
2016
|
|
(Unaudited)
|
|
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$
(24,264)
|
|
$
(28,032)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
8,170
|
|
10,974
|
Change in allowance
for doubtful accounts
|
133
|
|
(234)
|
Amortization of debt
discount and debt issuance costs
|
1,256
|
|
470
|
Accrued
interest
|
36
|
|
12
|
Stock-based
compensation
|
3,748
|
|
5,095
|
Stock-based
compensation for services rendered
|
398
|
|
867
|
Change in fair value
of convertible note embedded derivative liability
|
(475)
|
|
-
|
Change in fair value
of warrant liability
|
(147)
|
|
-
|
Loss on
extinguishment of debt
|
293
|
|
-
|
Impairment of
intangible assets
|
757
|
|
-
|
Stock issued for
settlement of liability
|
-
|
|
283
|
(Increase)/decrease
in assets:
|
|
|
|
Restricted cash
transferred to / (from) operating cash
|
(331)
|
|
200
|
Accounts
receivable
|
833
|
|
(5,111)
|
Deposits
|
92
|
|
(104)
|
Deferred tax
assets
|
148
|
|
(418)
|
Prepaid expenses and
other current assets
|
73
|
|
57
|
Increase/(decrease)
in liabilities:
|
|
|
|
Accounts
payable
|
4,568
|
|
7,308
|
Accrued license fees
and revenue share
|
(1,093)
|
|
2,789
|
Accrued
compensation
|
(280)
|
|
(831)
|
Other current
liabilities
|
(879)
|
|
(394)
|
Other non-current
liabilities
|
(31)
|
|
-
|
Net cash used in
operating activities
|
(6,995)
|
|
(7,069)
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Capital
expenditures
|
(1,595)
|
|
(1,549)
|
Proceeds from sale of
cost method investment in Sift
|
999
|
|
-
|
Net cash proceeds
from cost method investment in Sift
|
-
|
|
875
|
Net cash used in
investing activities
|
(596)
|
|
(674)
|
Digital Turbine,
Inc. and Subsidiaries
|
Consolidated
Statement of Cash Flows
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
Year
Ended
|
|
Year
Ended
|
|
March 31,
2017
|
|
March 31,
2016
|
|
(Unaudited)
|
|
|
Cash flows from
financing activities
|
|
|
|
Cash received in
convertible notes issuance
|
16,000
|
|
-
|
Repayment of debt
obligations
|
(11,000)
|
|
(600)
|
Payment of debt
issuance costs
|
(2,383)
|
|
-
|
Options
exercised
|
11
|
|
51
|
Stock issued for cash
in stock offering, net
|
-
|
|
12,627
|
Net cash provided in
financing activities
|
2,628
|
|
12,078
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(119)
|
|
(173)
|
|
|
|
|
Net change in cash
and cash equivalents
|
(5,082)
|
|
4,162
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
11,231
|
|
7,069
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
6,149
|
|
$
11,231
|
GAAP GROSS MARGIN
TO NON-GAAP GROSS MARGIN
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
March 31,
2017
|
|
December 31,
2016
|
|
March 31,
2017
|
|
March 31,
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenue
|
$
22,397
|
|
$
22,285
|
|
$
91,553
|
|
$
86,541
|
Gross
profit
|
$
3,907
|
|
$
3,368
|
|
$
13,363
|
|
$
9,819
|
Gross margin
percentage
|
17%
|
|
15%
|
|
15%
|
|
11%
|
Add back
items:
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
$
1,528
|
|
$
1,878
|
|
$
7,168
|
|
$
10,537
|
Impairment of
intangible assets
|
757
|
|
-
|
|
757
|
|
-
|
Depreciation of
software
|
13
|
|
-
|
|
13
|
|
-
|
Non-GAAP gross
profit
|
$
6,205
|
|
$
5,246
|
|
$
21,301
|
|
$
20,356
|
Non-GAAP gross margin
percentage
|
28%
|
|
24%
|
|
23%
|
|
24%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP NET LOSS TO
NON-GAAP ADJUSTED EBITDA
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
March 31,
2017
|
|
December 31,
2016
|
|
March 31,
2017
|
|
March 31,
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Net Loss
|
$
(6,925)
|
|
$
(2,586)
|
|
$
(24,264)
|
|
$
(28,032)
|
Add back
items:
|
|
|
|
|
|
|
|
Stock and stock
option compensation
|
535
|
|
1,135
|
|
4,146
|
|
5,962
|
Stock issued for
settlement of liability, net of $381 accrual reversal
|
-
|
|
-
|
|
-
|
|
(98)
|
Amortization of
intangibles
|
1,528
|
|
1,878
|
|
7,168
|
|
10,537
|
Impairment of
intangible assets
|
757
|
|
-
|
|
757
|
|
-
|
Depreciation
expense
|
317
|
|
248
|
|
1,002
|
|
437
|
Interest expense,
net
|
599
|
|
725
|
|
2,628
|
|
1,816
|
Other expense /
(income)
|
102
|
|
(68)
|
|
1
|
|
-
|
Change in fair value
of convertible note
embedded derivative liability
|
1,948
|
|
(2,853)
|
|
(475)
|
|
-
|
Change in fair value
of warrant liability
|
650
|
|
(937)
|
|
(147)
|
|
-
|
Loss on
extinguishment of debt
|
-
|
|
-
|
|
293
|
|
-
|
Loss on disposal of
fixed assets
|
-
|
|
-
|
|
-
|
|
37
|
Foreign exchange
transaction loss
|
75
|
|
9
|
|
88
|
|
29
|
Income tax provision
/ (benefit)
|
(303)
|
|
300
|
|
(144)
|
|
214
|
Non-GAAP Adjusted
EBITDA
|
$
(717)
|
|
$
(2,149)
|
|
$
(8,947)
|
|
$
(9,098)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/digital-turbine-reports-fourth-quarter-and-fiscal-full-year-2017-results-300474205.html
SOURCE Digital Turbine, Inc.