AUSTIN, Texas, March 3, 2020 /PRNewswire/ -- Digital Turbine,
Inc. (Nasdaq: APPS) announced today that it has completed the
acquisition of Mobile Posse, Inc., a complementary mobile content
discovery and advertising platform company.
"We are very excited to have completed the acquisition of Mobile
Posse," said Bill Stone, CEO of
Digital Turbine. "Mobile Posse has a highly profitable
business model with recurring revenue streams and an attractive
margin structure. While we are certainly excited about the
immediately accretive financial benefits of the acquisition, we are
even more upbeat about the clear strategic benefits underlying the
combination. Mobile Posse's suite of highly-engaging content
discovery products is a perfect complement to our core Digital
Turbine platform offering. Working together, we will now look to
leverage our respective product strengths and partner distribution
avenues to continue to further differentiate our industry-leading,
end-to-end mobile content delivery platform."
For a more detailed summary of the Mobile Posse acquisition,
please view the slide presentation now available on the Digital
Turbine investor relations website at
https://ir.digitalturbine.com/presentations.
Guidance Updated to Reflect Completion of Mobile Posse
Acquisition
The Company has updated its guidance for the fiscal fourth
quarter solely to reflect the expected impact of the Mobile Posse
acquisition, which was completed on February
28, 2020:
|
Previous
Guidance
|
Current
Guidance
|
|
(issued on
2/11/20)
|
|
|
|
Revenue
|
$33.2-34.5
million
|
$37.6-39.2
million
|
Adjusted
EBITDA1
|
$3.5-4.0
million
|
$4.5-5.0
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 the fair value of
derivatives associated with outstanding warrants issued in
connection with the September 2016
convertible notes offering and stock-based compensation expense,
which are directly impacted by changes in the Company's stock price
or other items that are difficult to predict with precision.
Use of Non-GAAP Financial Measures
Digital Turbine uses Non-GAAP measures of certain components of
financial performance. These Non-GAAP measures include Non-GAAP
adjusted EBITDA. 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 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, financial information in accordance
with GAAP.
1Non-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, the change in fair value of derivatives
associated with warrants issued in connection with the September 2016 convertible notes offering, other
expense, 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.
About Digital Turbine, Inc.
Digital Turbine innovates at the convergence of media and mobile
communications, connecting top mobile operators, OEMs and
publishers with app developers and advertisers worldwide. Its
comprehensive Mobile Delivery Platform powers
frictionless user acquisition and engagement, operational
efficiency and monetization opportunities. Digital Turbine's
technology platform has been adopted by more than 35 mobile
operators and OEMs worldwide, and has delivered more than one
billion app preloads for tens of thousands advertising campaigns.
The company is headquartered in Austin,
Texas, with global offices in Durham, Mumbai, San
Francisco, Singapore and
Tel Aviv. For additional
information visit www.digitalturbine.com.
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:
- 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 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
Ignite product
- 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
- derivative and warrant liabilities on our balance sheet will
fluctuate as our stock price moves and will also produce changes in
our statement of operations; 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
- risks and uncertainties associated with the successful
integration of the business of Mobile Posse
- risks and uncertainties associated with realization of the
anticipated benefits of the acquisition of Mobile Posse is not
completed, 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.
Follow Digital Turbine:
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
Investor Relations Contacts:
Brian Bartholomew
Digital Turbine
brian.bartholomew@digitalturbine.com
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SOURCE Digital Turbine, Inc.