AUSTIN, Texas, Oct. 29, 2020 /PRNewswire/ -- Digital Turbine,
Inc. (Nasdaq: APPS) announced financial results for the fiscal
second quarter ended September 30,
2020. All operating results and historical comparisons
discussed below, except as otherwise specifically noted, refer only
to the continuing operations of the Company.
Recent Financial Highlights:
- Fiscal second quarter of 2021 revenue totaled $70.9 million, representing an increase of 116%
as compared to total revenue reported in the fiscal second quarter
of 2020. Application Media revenue increased 50%
year-over-year to $49.1 million in
the fiscal second quarter of 2021. Content Media revenue,
which primarily included revenue related to the February 2020 acquisition of Mobile Posse, Inc.,
totaled $21.8 million in the fiscal
second quarter of 2021.
- GAAP net income for the fiscal second quarter, inclusive of a
$10.8 million adjustment to the
contingent earn-out related to the Mobile Posse acquisition, was
$0.4 million, or $0.00 per share, as compared to a GAAP net loss
of $1.3 million, or ($0.02) per share, for the fiscal second quarter
of 2020. Non-GAAP adjusted net income1 for the fiscal
second quarter was $14.5 million, or
$0.15 per share, as compared to
non-GAAP adjusted net income of $4.1
million, or $0.05 per share,
in the fiscal second quarter of 2020.
- Non-GAAP adjusted EBITDA2 for the fiscal second
quarter was $16.5 million,
representing growth of 265% as compared to the fiscal second
quarter of 2020.
- GAAP cash provided by operating activities totaled $23.7 million in the fiscal second quarter of
2021, as compared to $6.7 million in
the fiscal second quarter of 2020. Non-GAAP free cash
flow3 totaled $21.5
million in the fiscal second quarter of 2021, as compared to
$5.7 million in the fiscal second
quarter of 2020.
- GAAP gross margin was 42% for the fiscal second quarter of
2021, as compared to 38% in the fiscal second quarter of 2020.
Non-GAAP adjusted gross margin4 was 43% for the fiscal
second quarter of 2021, as compared to 39% in the fiscal second
quarter of 2020.
- The Company's Application Media software was installed on more
than 60 million devices during the fiscal second quarter, and has
now been installed on more than 500 million devices to date.
"Our fiscal second quarter results exceeded our expectations as
we built upon the breakout momentum from our fiscal first quarter,"
said Bill Stone, CEO. "We set
all-time revenue, profitability, and free cash flow records, and we
accelerated top-line growth and profitability amid powerful secular
tailwinds that are driving strong demand for both our Application
Media and Content Media service offerings. While still early in our
efforts to fully leverage our extensive global distribution
footprint and further penetrate select target markets, it is clear
that our diversification strategy is working and that we are adding
measurable value for the partners and advertisers on our platform.
Consumers and businesses are increasingly dependent on applications
and mobile content, and Digital Turbine's platform is
ideally-positioned to help coordinate this evolution in the
marketplace."
"Surging advertiser demand for our applications-driven and
content-oriented products, along with efficient capital allocation
and disciplined operating expenses, enabled us to generate
$16.5 million in non-GAAP adjusted
EBITDA and $21.5 million in non-GAAP
free cash flow during the fiscal second quarter. We not only
accelerated overall revenue growth, but we did so while
meaningfully diversifying the sources of revenue during the
quarter. Our U.S.-based Application Media revenue grew nearly 30%
year-over-year, yet represented an all-time low of 50% of total
revenue during the quarter. Meanwhile, revenue from life-of-device
and content-themed products grew to represent an all-time high of
43% of total revenue during the quarter. Notably, we saw
exceptionally positive results in the quarter from our Content
Media business, where improved execution and higher engagement
rates drove more than 60% growth in revenue as compared to the
prior year period. Looking forward, we continue to be extremely
optimistic about our ability to deploy our Content Media software
across our broader global distribution footprint."
Mr. Stone concluded, "I want to express my considerable
gratitude for all of Digital Turbine's stakeholders. In particular,
I am very proud of our talented and motivated team of employees,
whose creativity, focus and work ethic during these challenging
macro times I believe is second-to-none. At the same time, I am
also very thankful for the tremendous support shown us by our
valued platform partners, as well as our loyal shareholders. The
opportunity that has long been in front of us is now here, and I
look forward to our team working even harder to capitalize on
this opportunity for the benefit of all of our stakeholders."
Second Quarter Fiscal 2021 Financial Results
Total revenue for the second quarter of fiscal 2021 was
$70.9 million, representing an
increase of 116% year-over-year. Application Media revenue
increased 50% year-over-year to $49.1
million in the quarter, while Content Media revenue, which
was primarily related to the February
2020 acquisition of Mobile Posse, Inc., totaled $21.8 million.
GAAP gross margin was 42% for the second quarter of fiscal 2021,
as compared to a 38% GAAP gross margin in the second quarter of
fiscal 2020. Non-GAAP adjusted gross margin4 was 43% for
the second quarter of fiscal 2021, as compared to 39% for the
second quarter of fiscal 2020.
GAAP net income for the second quarter of fiscal 2021, inclusive
of a $10.8 million adjustment to the
contingent earn-out provision, was $0.4
million, or $0.00 per share,
as compared to a GAAP net loss from continuing operations for the
second quarter of fiscal 2020 of $1.3
million, or ($0.02) per share.
Non-GAAP adjusted net income1 for the second quarter of
fiscal 2021 was $14.5 million, or
$0.15 per share, as compared to
non-GAAP adjusted net income of $4.1
million, or $0.05 per share,
during the second quarter of fiscal 2020.
Non-GAAP adjusted EBITDA2 was $16.5 million for the second quarter of fiscal
2021, as compared to non-GAAP adjusted EBITDA of $4.5 million for the second quarter of fiscal
2020. 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 October 29, 2020, the Company currently expects
the following for its fiscal third quarter:
- Revenue of between $72 million
and $75 million
- Non-GAAP adjusted EBITDA of between $17
million and $18 million
- Non-GAAP adjusted EPS of between $0.15 and $0.16,
based on approximately 97 million diluted shares outstanding
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, any adjustment to the contingent earn-out
provision which will continue to be adjusted to fair value through
the end of the earn-out period, 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 fiscal second quarter
financial results and provide additional operational updates on the
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 November 5,
2020. The replay can be accessed by dialing 877-344-7529 in
the United States or 412-317-0088
from international locations, passcode 10149257.
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, adjustments
in the earn-out liability associated with the Mobile Posse
acquisition, changes in the fair value of derivatives associated
with warrants issued in connection with the September 2016 convertible notes offering 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), 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, 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 adoption of our platform among existing
customers (including the impact of possible delays with major
carrier and OEM partners in the roll out for mobile phones
deploying our platform)
- actual mobile device sales and sell-through where our platform
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 our platform 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 our platform
- 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 our
platform 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 earn-out 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
brian.bartholomew@digitalturbine.com
Digital Turbine, Inc.
Digital Turbine,
Inc. and Subsidiaries
Consolidated
Statements of Operations and Comprehensive Income /
(Loss)
(in thousands,
except per share amounts)
|
|
|
|
|
|
3 Months Ended
September 30,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Net
revenues
|
|
$
|
70,893
|
|
|
$
|
32,795
|
|
Cost of
revenues
|
|
|
|
|
License fees and
revenue share
|
|
40,532
|
|
|
20,146
|
|
Other direct costs of
revenues
|
|
662
|
|
|
344
|
|
Total cost of
revenues
|
|
41,194
|
|
|
20,490
|
|
Gross
profit
|
|
29,699
|
|
|
12,305
|
|
Operating
expenses
|
|
|
|
|
Product
development
|
|
4,217
|
|
|
2,735
|
|
Sales and
marketing
|
|
4,835
|
|
|
2,441
|
|
General and
administrative
|
|
8,531
|
|
|
4,014
|
|
Total operating
expenses
|
|
17,583
|
|
|
9,190
|
|
Income from
operations
|
|
12,116
|
|
|
3,115
|
|
Interest and other
income / (expense), net
|
|
|
|
|
Interest income /
(expense), net
|
|
(287)
|
|
|
41
|
|
Change in fair value
of warrant liability
|
|
—
|
|
|
(4,505)
|
|
Change in estimated
contingent consideration
|
|
(10,757)
|
|
|
—
|
|
Other income /
(expense)
|
|
(38)
|
|
|
84
|
|
Total interest and
other income / (expense), net
|
|
(11,082)
|
|
|
(4,380)
|
|
Income / (loss) from
continuing operations before income taxes
|
|
1,034
|
|
|
(1,265)
|
|
Income tax
provision
|
|
661
|
|
|
72
|
|
Income / (loss) from
continuing operations, net of taxes
|
|
373
|
|
|
(1,337)
|
|
Loss from discontinued
operations
|
|
—
|
|
|
(88)
|
|
Net loss from
discontinued operations, net of taxes
|
|
—
|
|
|
(88)
|
|
Net income /
(loss)
|
|
$
|
373
|
|
|
$
|
(1,425)
|
|
Other comprehensive
loss
|
|
|
|
|
Foreign currency
translation adjustment
|
|
(45)
|
|
|
(418)
|
|
Comprehensive income
/ (loss)
|
|
$
|
328
|
|
|
$
|
(1,843)
|
|
Basic net loss per
common share
|
|
|
|
|
Continuing
operations
|
|
$
|
—
|
|
|
$
|
(0.02)
|
|
Discontinued
operations
|
|
—
|
|
|
—
|
|
Net loss
|
|
$
|
—
|
|
|
$
|
(0.02)
|
|
Weighted-average
common shares outstanding, basic
|
|
88,035
|
|
|
83,909
|
|
Diluted net loss per
common share
|
|
|
|
|
Continuing
operations
|
|
$
|
—
|
|
|
$
|
(0.02)
|
|
Discontinued
operations
|
|
—
|
|
|
—
|
|
Net loss
|
|
$
|
—
|
|
|
$
|
(0.02)
|
|
Weighted-average
common shares outstanding, diluted
|
|
96,057
|
|
|
83,909
|
|
Digital Turbine,
Inc. and Subsidiaries
Consolidated
Balance Sheets
(in thousands,
except par value and share amounts)
|
|
|
|
|
|
|
|
September 30,
2020
|
|
March 31,
2020
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash
|
|
$
|
32,967
|
|
|
$
|
21,534
|
|
Restricted
cash
|
|
—
|
|
|
125
|
|
Accounts receivable,
net of allowances of $4,656 and $4,059, respectively
|
|
46,273
|
|
|
33,135
|
|
Prepaid expenses and
other current assets
|
|
2,016
|
|
|
3,653
|
|
Total current
assets
|
|
81,256
|
|
|
58,447
|
|
Property and
equipment, net
|
|
10,458
|
|
|
8,183
|
|
Right-of-use
assets
|
|
3,993
|
|
|
4,237
|
|
Intangible assets,
net
|
|
42,541
|
|
|
43,882
|
|
Goodwill
|
|
70,452
|
|
|
69,262
|
|
TOTAL
ASSETS
|
|
$
|
208,700
|
|
|
$
|
184,011
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term debt, net
of issuance costs of $62 and $62, respectively
|
|
$
|
1,938
|
|
|
$
|
1,188
|
|
Accounts
payable
|
|
36,355
|
|
|
$
|
31,579
|
|
Accrued license fees
and revenue share
|
|
22,200
|
|
|
19,423
|
|
Accrued
compensation
|
|
5,536
|
|
|
4,311
|
|
Accrued
earn-out
|
|
18,412
|
|
|
23,735
|
|
Other current
liabilities
|
|
6,581
|
|
|
2,573
|
|
Total current
liabilities
|
|
91,022
|
|
|
82,809
|
|
Long-term debt, net of
issuance costs of $214 and $245, respectively
|
|
17,536
|
|
|
18,505
|
|
Other non-current
liabilities
|
|
4,910
|
|
|
5,243
|
|
Total
liabilities
|
|
113,468
|
|
|
106,557
|
|
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; 89,431,559 issued and 88,697,103
outstanding at September 30, 2020; 88,041,240 issued and
87,306,784 outstanding at March 31, 2020
|
|
10
|
|
|
10
|
|
Additional paid-in
capital
|
|
367,876
|
|
|
360,224
|
|
Treasury stock
(754,599 shares at September 30, 2020 and March 31,
2020)
|
|
(71)
|
|
|
(71)
|
|
Accumulated other
comprehensive loss
|
|
(778)
|
|
|
(591)
|
|
Accumulated
deficit
|
|
(271,905)
|
|
|
(282,218)
|
|
Total stockholders'
equity
|
|
95,232
|
|
|
77,454
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
208,700
|
|
|
$
|
184,011
|
|
Digital Turbine,
Inc. and Subsidiaries
Consolidated
Statements of Cash Flows
(in
thousands)
|
|
|
|
|
|
3 Months Ended
September 30,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flows from
operating activities
|
|
|
|
|
Net income / (loss)
from continuing operations, net of taxes
|
|
373
|
|
|
(1,337)
|
|
Adjustments to
reconcile net income / (loss) from continuing operations to net
cash provided by operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
1,689
|
|
|
482
|
|
Loss on disposal of
fixed assets
|
|
—
|
|
|
8
|
|
Provision for doubtful
accounts
|
|
219
|
|
|
92
|
|
Non-cash interest
expense
|
|
18
|
|
|
—
|
|
Stock-based
compensation
|
|
2,230
|
|
|
740
|
|
Stock-based
compensation for services rendered
|
|
285
|
|
|
175
|
|
Change in fair value
of warrant liability
|
|
—
|
|
|
4,505
|
|
Change in estimated
contingent consideration
|
|
10,757
|
|
|
—
|
|
(Increase) / decrease
in assets:
|
|
|
|
|
Accounts
receivable
|
|
(3,049)
|
|
|
(2,662)
|
|
Deferred tax
assets
|
|
—
|
|
|
78
|
|
Prepaid expenses and
other current assets
|
|
1,181
|
|
|
65
|
|
Right-of-use
assets
|
|
183
|
|
|
35
|
|
Increase / (decrease)
in liabilities:
|
|
|
|
|
Accounts
payable
|
|
6,474
|
|
|
3,419
|
|
Accrued license fees
and revenue share
|
|
(1,422)
|
|
|
(1,228)
|
|
Accrued
compensation
|
|
2,243
|
|
|
959
|
|
Other current
liabilities
|
|
2,969
|
|
|
1,459
|
|
Other non-current
liabilities
|
|
(496)
|
|
|
(69)
|
|
Net cash provided by
operating activities - continuing operations
|
|
23,654
|
|
|
6,721
|
|
Net cash provided by
operating activities - discontinued operations
|
|
—
|
|
|
38
|
|
Net cash provided
by operating activities
|
|
23,654
|
|
|
6,759
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Acquisition of Mobile
Posse
|
|
(736)
|
|
|
—
|
|
Capital
expenditures
|
|
(2,166)
|
|
|
(1,022)
|
|
Net cash used in
investing activities
|
|
(2,902)
|
|
|
(1,022)
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Payment of contingent
consideration
|
|
(9,302)
|
|
|
—
|
|
Options and warrants
exercised
|
|
3,089
|
|
|
3,613
|
|
Repayment of debt
obligations
|
|
(250)
|
|
|
—
|
|
Net cash (used in)
/ provided by financing activities
|
|
(6,463)
|
|
|
3,613
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
(45)
|
|
|
(418)
|
|
|
|
|
|
|
Net change in
cash
|
|
14,244
|
|
|
8,932
|
|
|
|
|
|
|
Cash and
restricted cash, beginning of period
|
|
18,723
|
|
|
16,387
|
|
|
|
|
|
|
Cash and
restricted cash, end of period
|
|
32,967
|
|
|
25,319
|
|
GAAP GROSS MARGIN
TO NON-GAAP GROSS MARGIN
|
(in
thousands)
|
|
|
|
|
|
|
3 Months Ended
September 30,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Continuing
operations
|
|
|
|
|
Revenue
|
|
$
|
70,893
|
|
|
$
|
32,795
|
|
Gross
profit
|
|
29,699
|
|
|
12,305
|
|
Gross margin
percentage
|
|
42
|
%
|
|
38
|
%
|
Add-back
items:
|
|
|
|
|
Depreciation of
software
|
|
662
|
|
|
344
|
|
Non-GAAP gross profit
from continuing operations
|
|
$
|
30,361
|
|
|
$
|
12,649
|
|
Non-GAAP gross margin
percentage from continuing operations
|
|
43
|
%
|
|
39
|
%
|
|
|
|
|
|
|
|
|
|
|
GAAP NET INCOME /
(LOSS) TO NON-GAAP ADJUSTED NET INCOME
|
(in
thousands)
|
|
|
|
|
|
|
3 Months Ended
September 30,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Continuing
operations
|
|
|
|
|
Net income / (loss)
from continuing operations
|
|
373
|
|
|
(1,337)
|
|
Add-back
items:
|
|
|
|
|
Stock and stock option
compensation
|
|
2,515
|
|
|
915
|
|
Amortization of
intangibles
|
|
670
|
|
|
—
|
|
Adjustment for
estimated earn-out liability
|
|
10,757
|
|
|
—
|
|
Change in fair value
of warrant liability
|
|
—
|
|
|
4,505
|
|
Transaction
expenses
|
|
150
|
|
|
—
|
|
Non-GAAP adjusted net
income from continuing operations
|
|
$
|
14,465
|
|
|
$
|
4,083
|
|
Non-GAAP adjusted net
income per share from continuing operations
|
|
$
|
0.15
|
|
|
$
|
0.05
|
|
Weighted-average
common shares outstanding, diluted
|
|
96,028
|
|
|
83,909
|
|
GAAP NET INCOME /
(LOSS) TO NON-GAAP ADJUSTED EBITDA
|
(in
thousands)
|
|
|
|
|
|
|
3 Months Ended
September 30,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Continuing
operations
|
|
|
|
|
Net income / (loss)
from continuing operations
|
|
373
|
|
|
(1,337)
|
|
Add-back
items:
|
|
|
|
|
Stock and stock option
compensation
|
|
2,515
|
|
|
915
|
|
Amortization of
intangibles
|
|
670
|
|
|
—
|
|
Depreciation
expense
|
|
1,019
|
|
|
482
|
|
Interest (income) /
expense, net
|
|
287
|
|
|
(41)
|
|
Change in estimated
contingent consideration
|
|
10,757
|
|
|
—
|
|
Other (income) /
expense, net
|
|
38
|
|
|
(84)
|
|
Change in fair value
of warrant liability
|
|
—
|
|
|
4,505
|
|
Income tax
provision
|
|
661
|
|
|
72
|
|
Transaction
expenses
|
|
150
|
|
|
—
|
|
Non-GAAP adjusted
EBITDA from continuing operations
|
|
$
|
16,470
|
|
|
$
|
4,512
|
|
|
|
|
|
|
|
|
|
|
GAAP CASH FLOW
FROM OPERATING ACTIVITIES FROM CONTINUING OPERATIONS TO NON-GAAP
FREE CASH FLOW FROM CONTINUING OPERATIONS
|
(in
thousands)
|
|
|
|
|
|
|
3 Months Ended
September 30,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Net cash provided by
operating activities from continuing operations
|
|
23,654
|
|
|
6,721
|
|
Capital
expenditures
|
|
(2,166)
|
|
|
(1,022)
|
|
Non-GAAP free cash
flow provided by continuing operations
|
|
$
|
21,488
|
|
|
$
|
5,699
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Digital Turbine, Inc.