AUSTIN, Texas, June 2, 2020 /PRNewswire/ -- Digital Turbine,
Inc. (Nasdaq: APPS) announced financial results for the fiscal full
year and quarter ended March 31,
2020. All operating results discussed below, except as
otherwise specifically noted, refer only to the continuing
operations of the Company, and all comparisons to prior periods
have been adjusted to reflect only continuing operations. The
Company completed its acquisition of Mobile Posse, Inc., on
February 28, 2020. All
operating results discussed below include the contribution of
Mobile Posse's operations for the period from February 28, 2020 through March 31, 2020.
Recent Financial Highlights:
- Fiscal fourth quarter revenue was $39.4
million, representing 45% growth when compared to the fiscal
fourth quarter of 2019. Fiscal year 2020 revenue totaled
$138.7 million, up 34% as compared to
fiscal year 2019 revenue.
- GAAP net income for the fiscal fourth quarter was $14.0 million, or $0.16 per share, as compared to a GAAP net loss
of $6.8 million, or ($0.09) per share for the fiscal fourth quarter
of 2019. Non-GAAP adjusted net income1 for the fiscal
fourth quarter was $4.2 million, or
$0.05 per share, as compared to
Non-GAAP adjusted net income of $2.4
million, or $0.03 per share,
in the fiscal fourth quarter of 2019.
- Non-GAAP adjusted EBITDA2 for the fiscal fourth
quarter was $5.3 million, as compared
to Non-GAAP adjusted EBITDA of $3.3
million in the fiscal fourth quarter of 2019. Non-GAAP
Adjusted EBITDA for full year fiscal 2020 totaled $19.6 million, representing 120% growth when
compared to Non-GAAP Adjusted EBITDA of $8.9
million in fiscal year 2019.
- GAAP cash provided by operating activities totaled $13.5 million in the fiscal fourth quarter.
Non-GAAP free cash flow3 totaled $11.8 million in the fiscal fourth quarter. The
Company had total cash and cash equivalents of $21.5 million as of March
31, 2020.
- GAAP gross margin was 39% for the fiscal fourth quarter of
2020, as compared to 40% in the fiscal fourth quarter of 2019.
Non-GAAP adjusted gross margin4 was 40% for the fiscal
fourth quarter of 2020, as compared to 42% in the fiscal fourth
quarter of 2019.
- The Company has surpassed 405 million total devices with Ignite
installed to date, including more than 40 million devices
installed during the fiscal fourth quarter.
"We executed well in our fiscal fourth quarter, delivering
results that exceeded our expectations while completing the highly
strategic Mobile Posse acquisition and tactically navigating the
onset of unique challenges and opportunities presented by
COVID-19," said Bill Stone,
CEO. "I am incredibly grateful for the resilience, focus and
determination shown by the entire Digital Turbine team, which has
enabled our business to quickly adapt to rapidly evolving market
trends during these dynamic times. Today more than ever consumers
are turning to their mobile devices and applications for
information, socialization, entertainment, education and home
delivery services, and Digital Turbine values its critical role in
helping to connect consumers to this content."
"Looking ahead to fiscal 2021 and the pursuit of our primary
growth objectives, we are highly confident given the strengthening
momentum underlying our business today. We remain laser-focused on
operational execution in support of our valued partners,
advertisers on our platform, and mobile end-users everywhere.
While we expect some near-term uncertainty in terms of device
activations amid carrier store closures and associated re-opening
timelines, we could not be more pleased with the clear strength in
demand that we are witnessing from key advertiser segments, most
notably within the mobile gaming, social media, news, content
streaming and home delivery segments that collectively comprise the
overwhelming majority of our app installs. We expect consumers'
increased usage of these types of apps to continue well beyond the
current period, which we believe should continue to provide an
upward bias to conversion rates and revenue-per-device trends even
as device activation levels return to normalized levels.
Furthermore, like many others in the mobile industry, we eagerly
look forward to broader promotion and adoption of 5G devices later
this year as a possible catalyst for increased activations and
richer application-based services."
Mr. Stone concluded, "We believe that our motivated team,
profitable operating model, healthy balance sheet and unique
platform offering give us the confidence to not just be able to
weather near-term macro conditions, but to be able to continue to
grow both our top and bottom lines despite these conditions."
Fourth Quarter Fiscal 2020 Financial Results
Results for the fourth quarter and full fiscal year 2020 include
the results of the acquired Mobile Posse operations from
February 28, 2020 through
March 31, 2020. Revenue for the
fourth quarter of fiscal 2020 was $39.4
million, representing an increase of 45% year-over-year.
GAAP gross margin was 39% for the fourth quarter of fiscal 2020,
as compared to a 40% GAAP gross margin in the fourth quarter of
fiscal 2019. Non-GAAP adjusted gross margin4 was
40% for the fourth quarter of fiscal 2020, as compared to 42% for
the fourth quarter of fiscal 2019.
GAAP net income from continuing operations for the fourth
quarter of fiscal 2020 was $14.0
million, or $0.16 per share,
as compared to a GAAP net loss from continuing operations for the
fourth quarter of fiscal 2019 of $6.8
million, or ($0.09) per
share. Non-GAAP adjusted net income1 for the
fourth quarter of fiscal 2020 was $4.2
million, or $0.05 per share,
as compared to Non-GAAP adjusted net income of $2.4 million, or $0.03 per share, during the fourth quarter of
fiscal 2019.
Non-GAAP adjusted EBITDA2 was $5.3 million for the fourth quarter of fiscal
2020, as compared to Non-GAAP adjusted EBITDA of $3.3 million for the fourth quarter of fiscal
2019. The reconciliations between GAAP and Non-GAAP financial
results for all referenced periods are provided in the tables
immediately following the Unaudited Consolidated Statements of Cash
Flows below.
Full Year Fiscal 2020 Financial Results
Revenue for fiscal 2020 totaled $138.7
million, representing an increase of 34% as compared to
revenue of $103.6 million in fiscal
2019.
GAAP gross margin was 39% for fiscal 2020, as compared to a 34%
GAAP gross margin in fiscal 2019. Non-GAAP adjusted gross
margin4 was 40% for fiscal 2020, as compared to 36% in
fiscal 2019.
GAAP net income from continuing operations for fiscal 2020 was
$14.3 million, or $0.17 per share, as compared to a GAAP net loss
from continuing operations for fiscal 2019 of $4.3 million, or ($0.06) per share. Non-GAAP adjusted net
income1 for fiscal 2020 was $17.5
million, or $0.20 per share,
as compared to Non-GAAP adjusted net income of $5.9 million, or $0.08 per share, in fiscal 2019.
Non-GAAP adjusted EBITDA2 was $19.6 million for fiscal 2020, as compared to
Non-GAAP adjusted EBITDA of $8.9
million in fiscal 2019. The reconciliations between GAAP and
Non-GAAP financial results for all referenced periods are provided
in the tables immediately following the Unaudited Consolidated
Statements of Cash Flows below.
Business Outlook
Based on information available as of June
2, 2020, the Company expects first quarter fiscal 2021
revenue of between $47 million and
$50 million, and Non-GAAP adjusted
EBITDA2 of between $8
million and $10 million.
It is not reasonably practicable to provide a business outlook
for GAAP net income/(loss) from continuing operations because the
Company cannot reasonably estimate the changes in stock-based
compensation expense, which is directly impacted by changes in the
Company's stock price, or other items that are difficult to predict
with precision.
About Digital Turbine, Inc.
Digital Turbine simplifies content discovery and delivers
relevant content directly to consumer devices. The Company's
on-demand media platform powers frictionless app and content
discovery, user acquisition and engagement, operational efficiency
and monetization opportunities. Digital Turbine's technology
platform has been adopted by more than 40 mobile operators and OEMs
worldwide, and has delivered more than three billion app preloads
for tens of thousands of advertising campaigns. The company is
headquartered in Austin, Texas,
with global offices in Arlington,
Durham, Mumbai, San
Francisco, Singapore and
Tel Aviv. For additional
information visit www.digitalturbine.com.
Conference Call
Management will host a conference
call today at 4:30 p.m. ET to discuss
its fourth quarter and full fiscal year 2020 financial results and
provide operational updates on the business and issue additional
commentary on the Mobile Posse acquisition. 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 9,
2020. The replay can be accessed by dialing 877-344-7529 in
the United States or 412-317-0088
from international locations, passcode 10144552.
The conference call will discuss guidance and other material
information.
Use of Non-GAAP Financial Measures
To supplement the
Company's consolidated 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 net income and earnings per share ("EPS"),
non-GAAP adjusted gross profit, non-GAAP adjusted gross margin,
non-GAAP adjusted EBITDA and non-GAAP free cash
flow. 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 net income and EPS are defined as
GAAP net income/(loss) and EPS adjusted to exclude the effect of
stock-based compensation, amortization of intangibles, changes in
the fair value of derivatives associated with warrants issued in
connection with the September 2016
convertible notes offering, loss on extinguishment of debt, tax
adjustments and transaction expenses. Readers are cautioned
that Non-GAAP adjusted net income and EPS should not be construed
as an alternative to comparable GAAP net income figures determined
in accordance with U.S. GAAP as an indicator of profitability or
performance, which is the most comparable measure under
GAAP.
2Non-GAAP adjusted EBITDA is calculated as GAAP net
income/(loss) excluding the following cash and non-cash expenses:
net interest income/(expense), foreign exchange transaction loss,
income tax provision, depreciation and amortization, stock-based
compensation expense, amortization of intangibles, the change in
fair value of derivatives associated with warrants issued in
connection with the September 2016
convertible notes offering, other expense, loss on extinguishment
of debt, non-recurring severance expense and transaction
expenses. 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.
3Non-GAAP free cash flow, which is a non-GAAP
financial measure, is defined as net cash provided by operating
activities (as stated in our Consolidated Statement of Cash Flows)
reduced by capital expenditures. Readers are cautioned that free
cash flow should not be construed as an alternative to net cash
provided by operating activities determined in accordance with U.S.
GAAP as an indicator of profitability, performance or liquidity,
which is the most comparable measure under GAAP.
4Non-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 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, Non-GAAP
adjusted EBITDA, Non-GAAP adjusted net income and EPS, and Non-GAAP
free cash flow are used by management as internal measures of
profitability, performance and liquidity. 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 Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. 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:
- a decline in general economic conditions nationally and
internationally
- decreased market demand for our products and services
- market acceptance and brand awareness of our products
- risks associated with indebtedness
- the ability to comply with financial covenants in outstanding
indebtedness
- the ability to protect our intellectual property rights
- 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 our ability to manage the business amid
the COVID-19 pandemic
- the impact of COVID-19 on our partners, digital advertising
spend and consumer purchase behavior
- the impact of COVID-19 on our results of operations
- risks associated with new privacy laws, such as the European
Union's GDPR and similar laws which may require changes to our
development and user interface for certain functionality of our
mobile platform
- 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
- 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
- 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)
- 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
- 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
- risks and uncertainties associated with the integration of the
acquisition of Mobile Posse, including our ability to realize the
anticipated benefits of the acquisition and the satisfaction of
related earnout provisions
- 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 Income /
(Loss)
|
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
12 Months
Ended
|
|
12 Months
Ended
|
|
March 31,
2020
|
|
March 31,
2019
|
|
March 31,
2020
|
|
March 31,
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
Net
revenues
|
$
39,351
|
|
$
27,192
|
|
$
138,715
|
|
$
103,569
|
Cost of
revenues
|
|
|
|
|
|
|
|
License fees and
revenue share
|
23,591
|
|
15,768
|
|
83,588
|
|
65,981
|
Other direct cost of
revenues
|
432
|
|
470
|
|
1,454
|
|
2,023
|
Total cost of
revenues
|
24,023
|
|
16,238
|
|
85,042
|
|
68,004
|
Gross
profit
|
15,328
|
|
10,954
|
|
53,673
|
|
35,565
|
Operating
expenses
|
|
|
|
|
|
|
|
Product
development
|
3,706
|
|
2,702
|
|
12,018
|
|
10,876
|
Sales and
marketing
|
3,710
|
|
2,501
|
|
11,244
|
|
8,212
|
General and
administrative
|
4,987
|
|
3,817
|
|
17,199
|
|
13,032
|
Total operating
expenses
|
12,403
|
|
9,020
|
|
40,461
|
|
32,120
|
Income from
operations
|
2,925
|
|
1,934
|
|
13,212
|
|
3,445
|
Interest and other
expense, net
|
|
|
|
|
|
|
|
Interest income /
(expense), net
|
(77)
|
|
(472)
|
|
41
|
|
(1,120)
|
Foreign exchange
transaction gain / (loss)
|
-
|
|
(3)
|
|
-
|
|
3
|
Change in fair value
of convertible note embedded derivative liability
|
-
|
|
(2,104)
|
|
-
|
|
(1,008)
|
Change in fair value
of warrant liability
|
1,021
|
|
(5,720)
|
|
(9,580)
|
|
(4,875)
|
Loss on
extinguishment of debt
|
-
|
|
(421)
|
|
-
|
|
(431)
|
Other income /
(expense)
|
(223)
|
|
336
|
|
232
|
|
153
|
Total interest and
other income / (expense), net
|
721
|
|
(8,384)
|
|
(9,307)
|
|
(7,278)
|
Income / (loss) from
continuing operations before income taxes
|
3,646
|
|
(6,450)
|
|
3,905
|
|
(3,833)
|
Income tax provision
/ (benefit)
|
(10,381)
|
|
312
|
|
(10,375)
|
|
469
|
Net income / (loss)
from continuing operations, net of taxes
|
14,027
|
|
(6,762)
|
|
14,280
|
|
(4,302)
|
Loss from
discontinued operations
|
(209)
|
|
(96)
|
|
(380)
|
|
(1,708)
|
Net loss from discontinued
operations, net of taxes
|
(209)
|
|
(96)
|
|
(380)
|
|
(1,708)
|
Net income / (loss)
from operations, net of taxes
|
$
13,818
|
|
$
(6,858)
|
|
$
13,900
|
|
$
(6,010)
|
Foreign currency
translation adjustment
|
129
|
|
(26)
|
|
(235)
|
|
(31)
|
Comprehensive income
/ (loss):
|
$
13,947
|
|
$
(6,884)
|
|
$
13,665
|
|
$
(6,041)
|
Basic net income /
(loss) per common share
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.16
|
|
$
(0.09)
|
|
$
0.17
|
|
$
(0.06)
|
Discontinued
operations
|
$
0.00
|
|
$
0.00
|
|
$
0.00
|
|
$
(0.02)
|
Net income /
(loss)
|
$
0.16
|
|
$
(0.09)
|
|
$
0.17
|
|
$
(0.08)
|
Weighted average
common shares outstanding, basic
|
86,784
|
|
79,404
|
|
84,594
|
|
77,440
|
Diluted net income /
(loss) per common share
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.15
|
|
$
(0.09)
|
|
$
0.16
|
|
$
(0.06)
|
Discontinued
operations
|
$
0.00
|
|
$
0.00
|
|
$
0.00
|
|
$
(0.02)
|
Net income /
(loss)
|
$
0.15
|
|
$
(0.09)
|
|
$
0.16
|
|
$
(0.08)
|
Weighted average
common shares outstanding, diluted
|
91,875
|
|
79,404
|
|
89,558
|
|
77,440
|
Digital Turbine,
Inc. and Subsidiaries
|
Consolidated
Balance Sheets
|
|
|
|
|
|
(in thousands,
except par value and share amounts)
|
|
|
|
|
|
|
|
|
|
|
March 31,
2020
|
|
March 31,
2019
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
21,534
|
|
$
10,894
|
Restricted
cash
|
125
|
|
165
|
Accounts receivable,
net of allowances of $1,101 and $895, respectively
|
33,135
|
|
22,707
|
Prepaid expenses and
other current assets
|
3,653
|
|
1,331
|
Deferred tax assets,
current
|
-
|
|
-
|
Current assets held
for disposal
|
-
|
|
2,026
|
Total current
assets
|
58,447
|
|
37,123
|
Property and
equipment, net
|
8,183
|
|
3,430
|
Right-of-use
assets
|
4,237
|
|
-
|
Deferred tax
assets
|
-
|
|
40
|
Intangible assets,
net
|
43,882
|
|
-
|
Goodwill
|
69,262
|
|
42,268
|
TOTAL
ASSETS
|
$
184,011
|
|
$
82,861
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
31,579
|
|
$
14,912
|
Accrued license fees
and revenue share
|
19,423
|
|
16,205
|
Accrued
compensation
|
4,311
|
|
2,441
|
Accrued
earn-out
|
23,735
|
|
-
|
Short-term debt, net
of debt issuance costs of $62 and $0, respectively
|
1,188
|
|
-
|
Other current
liabilities
|
2,573
|
|
826
|
Current liabilities
held for disposal
|
-
|
|
3,924
|
Total current
liabilities
|
82,809
|
|
38,308
|
Long-term debt, net
of debt issuance costs of $245 and $0, respectively
|
18,505
|
|
-
|
Warrant
liability
|
-
|
|
8,013
|
Other non-current
liabilities
|
5,243
|
|
182
|
Total
liabilities
|
106,557
|
|
46,503
|
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
|
|
|
|
Common Stock at
'$0.0001 par value: 200,000,000 shares authorized; 88,041,240
issued and 87,306,784 outstanding at March 31, 2020; 82,354,940
issued and 81,620,485 outstanding at March 31, 2019
|
10
|
|
10
|
Additional paid-in
capital
|
360,224
|
|
332,793
|
Treasury stock
(754,599 shares at March 31, 2020 and March 31, 2019)
|
(71)
|
|
(71)
|
Accumulated other
comprehensive loss
|
(591)
|
|
(356)
|
Accumulated
deficit
|
(282,218)
|
|
(296,118)
|
Total stockholders'
equity
|
77,454
|
|
36,358
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
184,011
|
|
$
82,861
|
Digital Turbine,
Inc. and Subsidiaries
|
Consolidated
Statements of Cash Flows
|
(in
thousands)
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
March 31,
2020
|
|
March 31,
2019
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flows from
operating activities
|
|
|
|
Net income / (loss)
from continuing operations, net of taxes
|
$
14,027
|
|
$
(6,762)
|
Adjustments to
reconcile net income / (loss) to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
858
|
|
621
|
Change in allowance
for doubtful accounts
|
2,660
|
|
(42)
|
Loss on disposal of
fixed assets
|
(4)
|
|
-
|
Non-cash interest
expense
|
6
|
|
547
|
Stock-based
compensation
|
666
|
|
595
|
Stock-based
compensation for services rendered
|
173
|
|
155
|
Change in fair value
of convertible note embedded derivative liability
|
-
|
|
2,104
|
Change in fair value
of warrant liability
|
(1,021)
|
|
5,720
|
Loss on
extinguishment of debt
|
-
|
|
406
|
(Increase)/decrease
in assets:
|
|
|
|
Accounts
receivable
|
1,762
|
|
1,586
|
Deposits
|
-
|
|
10
|
Deferred tax
assets
|
-
|
|
399
|
Prepaid expenses and
other current assets
|
82
|
|
121
|
Right-of-use
asset
|
171
|
|
-
|
Increase/(decrease)
in liabilities:
|
|
|
|
Accounts
payable
|
10,260
|
|
(7,640)
|
Accrued license fees
and revenue share
|
(3,689)
|
|
4,715
|
Accrued
compensation
|
806
|
|
820
|
Other current
liabilities
|
(2,419)
|
|
(1,041)
|
Other non-current
liabilities
|
(10,823)
|
|
127
|
Net cash provided by
operating activities - continuing operations
|
13,515
|
|
2,441
|
Net cash used in
operating activities - discontinued operations
|
(2,148)
|
|
(265)
|
Net cash provided by
operating activities
|
$
11,367
|
|
$
2,176
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Capital
expenditures
|
$
(1,666)
|
|
$
(533)
|
Acquisition of Mobile
Posse, net of cash received
|
(41,872)
|
|
-
|
Cash used in
investing activities - continuing operations
|
(43,538)
|
|
(533)
|
Cash used in
investing activities - discontinued operations
|
-
|
|
-
|
Net cash used in
investing activities
|
(43,538)
|
|
(533)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
borrowings
|
$
20,000
|
|
$
-
|
Options and warrants
exercised
|
135
|
|
511
|
Repayment of debt
obligations
|
-
|
|
(1,600)
|
Payment for debt
issuance costs
|
(313)
|
|
-
|
Net cash provided by
financing activities
|
$
19,822
|
|
$
(1,089)
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents and restricted
cash
|
$
129
|
|
$
(26)
|
|
|
|
|
Net change in cash
and cash equivalents and restricted cash
|
$
(12,220)
|
|
$
528
|
|
|
|
|
Cash and cash
equivalents and restricted cash, beginning of period
|
$
33,879
|
|
$
10,531
|
|
|
|
|
Cash and cash
equivalents and restricted cash, end of period
|
$
21,659
|
|
$
11,059
|
GAAP GROSS MARGIN
TO NON-GAAP GROSS MARGIN
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
12 Months
Ended
|
|
12 Months
Ended
|
|
|
March 31,
2020
|
|
March 31,
2019
|
|
March 31,
2020
|
|
March 31,
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Continuing
Operations:
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
39,351
|
|
$
27,192
|
|
$
138,715
|
|
$
103,569
|
Gross
profit
|
|
$
15,329
|
|
$
10,954
|
|
$
53,673
|
|
$
35,565
|
Gross margin
percentage
|
|
39.0%
|
|
40.3%
|
|
39%
|
|
34%
|
Add back
items:
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
|
-
|
|
224
|
|
-
|
|
1,230
|
Depreciation of
software
|
|
431
|
|
148
|
|
1,454
|
|
696
|
Non-GAAP gross profit
from continuing operations
|
|
$
15,760
|
|
$
11,326
|
|
$
55,127
|
|
$
37,491
|
Non-GAAP gross margin
percentage from continuing operations
|
40.0%
|
|
41.7%
|
|
40%
|
|
36%
|
GAAP NET INCOME TO
NON-GAAP ADJUSTED NET INCOME
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
12 Months
Ended
|
|
12 Months
Ended
|
|
|
March 31,
2020
|
|
March 31,
2019
|
|
March 31,
2020
|
|
March 31,
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Continuing
Operations:
|
|
|
|
|
|
|
|
|
Net income / (loss)
from continuing operations
|
|
$
14,027
|
|
$
(6,763)
|
|
$
14,280
|
|
$
(4,303)
|
Add back
items:
|
|
|
|
|
|
|
|
|
Stock and stock
option compensation
|
|
839
|
|
750
|
|
3,353
|
|
2,531
|
Amortization of
intangibles
|
|
218
|
|
224
|
|
218
|
|
1,230
|
Change in fair value
of convertible note
embedded derivative and warrant liability
|
|
(1,021)
|
|
7,824
|
|
9,580
|
|
5,883
|
Loss on
extinguishment of debt
|
|
-
|
|
406
|
|
-
|
|
431
|
Non-recurring
severence expense
|
|
-
|
|
-
|
|
-
|
|
145
|
Tax adjustment
(1)
|
|
(10,552)
|
|
-
|
|
(10,552)
|
|
-
|
Transaction
expenses
|
|
657
|
|
-
|
|
657
|
|
-
|
Non-GAAP adjusted net
income from continuing operations
|
|
$
4,168
|
|
$
2,441
|
|
$
17,536
|
|
$
5,917
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net
income per share from continuing operations
|
|
$
0.05
|
|
$
0.03
|
|
$
0.20
|
|
$
0.08
|
Weighted average
common shares outstanding, diluted
|
|
91,875
|
|
79,404
|
|
89,558
|
|
77,440
|
|
|
|
|
|
|
|
|
|
(1) Valuation
allowance release due to purchase price allocation of Mobile
Posse
|
GAAP NET INCOME TO
NON-GAAP ADJUSTED EBITDA
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
12 Months
Ended
|
|
12 Months
Ended
|
|
|
March 31,
2020
|
|
March 31,
2019
|
|
March 31,
2020
|
|
March 31,
2019
|
Continuing
Operations:
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Net income / (loss)
from continuing operations
|
|
$
14,027
|
|
$
(6,763)
|
|
$
14,280
|
|
$
(4,303)
|
Add back
items:
|
|
|
|
|
|
|
|
|
Stock and stock
option compensation
|
|
839
|
|
750
|
|
3,353
|
|
2,531
|
Amortization of
intangibles
|
|
218
|
|
224
|
|
218
|
|
1,230
|
Depreciation
expense
|
|
620
|
|
396
|
|
2,124
|
|
1,535
|
Interest expense,
net
|
|
77
|
|
472
|
|
(41)
|
|
1,120
|
Other expense /
(income)
|
|
223
|
|
(316)
|
|
(246)
|
|
(139)
|
Change in fair value
of convertible note
embedded derivative and warrant liability
|
|
(1,021)
|
|
7,824
|
|
9,580
|
|
5,883
|
Loss on
extinguishment of debt
|
|
-
|
|
406
|
|
-
|
|
425
|
Non-recurring
severence expense
|
|
-
|
|
-
|
|
-
|
|
145
|
Foreign exchange
transaction loss / (gain)
|
|
-
|
|
4
|
|
1
|
|
(2)
|
Income tax
provision
|
|
(10,381)
|
|
312
|
|
(10,375)
|
|
469
|
Transactions
expenses
|
|
657
|
|
-
|
|
657
|
|
-
|
Non-GAAP adjusted
EBITDA from continuing operations
|
|
$
5,259
|
|
$
3,309
|
|
$
19,550
|
|
$
8,894
|
GAAP CASH FLOW
FROM OPERATING ACTIVITIES FROM CONTINUING OPERATIONS TO NON-GAAP
FREE CASH FLOW FROM CONTINUING OPERATIONS
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
|
March 31,
2020
|
|
March 31,
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Net cash provided by
operating activities from continuing operations
|
|
$
13,515
|
|
$
2,441
|
Capital
expenditures
|
|
(1,666)
|
|
(533)
|
|
|
|
|
|
Non-GAAP free cash
flow provided by continuing operations
|
|
$
11,849
|
|
$
1,908
|
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SOURCE Digital Turbine, Inc.