AUSTIN, Texas, Feb. 3, 2021 /PRNewswire/ -- Digital
Turbine, Inc. (Nasdaq: APPS) announced financial results for the
fiscal third quarter ended December 31,
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 third quarter of 2021 revenue totaled $88.6 million, representing an increase of 146%
as compared to total revenue reported in the fiscal third quarter
of 2020. Application Media revenue increased 58% year-over-year to
$56.9 million in the fiscal third
quarter of 2021. Content Media revenue, which primarily included
revenue related to the February 2020
acquisition of Mobile Posse, Inc. ("Mobile Posse"), totaled
$31.7 million in the fiscal third
quarter of 2021.
- GAAP net income for the fiscal third quarter of 2021, inclusive
of a $4.7 million adjustment to the
contingent earn-out related to the Mobile Posse acquisition, was
$14.5 million, or $0.15 per share, as compared to GAAP net income
of $3.3 million, or $0.04 per share, for the fiscal third quarter of
2020. Non-GAAP adjusted net income1 for the fiscal third
quarter was $20.0 million, or
$0.21 per share, as compared to
non-GAAP adjusted net income of $5.0
million, or $0.05 per share,
in the fiscal third quarter of 2020, representing growth of 278% in
non-GAAP EPS.
- Non-GAAP adjusted EBITDA2 for the fiscal third
quarter of 2021 was $22.5 million,
representing growth of more than 300% as compared to Non-GAAP
adjusted EBITDA of $5.6 million in
the fiscal third quarter of 2020.
- GAAP cash provided by operating activities totaled $18.9 million in the fiscal third quarter of
2021, inclusive of the payment of $5.4
million of excess contingent consideration related to the
Mobile Posse acquisition earn-out provisions. Non-GAAP free cash
flow3 totaled $22.0
million in the fiscal third quarter of 2021, as compared to
$7.0 million in the fiscal third
quarter of 2020, representing growth of more than 200%.
- GAAP gross margin was 43% for the fiscal third quarter of 2021,
as compared to 39% in the fiscal third quarter of 2020. Non-GAAP
adjusted gross margin4 was 43% for the fiscal third
quarter of 2021, as compared to 40% in the fiscal third quarter of
2020.
- The Company's Application Media software was installed on
approximately 65 million devices during the fiscal third quarter,
and has now been installed on more than 570 million devices to
date.
"Our strong third quarter results represented an acceleration of
the breakout momentum achieved in the first half of the fiscal
year," said Bill Stone, CEO.
"We once again set all-time quarterly records for revenue,
profitability and free cash flow. Total revenue grew 146%
year-over-year, as we saw strong demand for both our Application
Media and Content Media service offerings. The amount of time and
money spent by consumers within applications continues to rise, as
consumers increasingly grow accustomed to consuming more content
and spending greater share of their wallets using the applications
on their mobile devices. Businesses everywhere have reacted
accordingly by placing increased emphasis on the functionality and
monetization potential of their application-based
storefronts. These powerful secular tailwinds have been
driving, and we believe will continue to drive, significantly
greater demand for our unique platform offerings."
"I was once again exceptionally pleased with the bottom-line
profitability showcased by our platform business model during the
quarter. Higher gross margins and expanding operating
leverage enabled us to turn our 146% annual revenue growth into
more than 300% annual growth in Non-GAAP adjusted EBITDA, 278%
growth in Non-GAAP EPS, and more than 200% growth in Non-GAAP free
cash flow, as we continue to benefit from network effects and
economies of scale."
Mr. Stone concluded, "We believe that we are still in the early
stages of our growth story at Digital Turbine, as we continue to
employ our core diversification strategy in an effort to more fully
leverage our global distribution footprint with both existing and
newly-developed products and services. Partners and advertisers
across the platform are deriving clear monetary and strategic value
from a wide range of our services that work cohesively to provide
end consumers with highly-relevant information, entertainment and
e-commerce options at their fingertips. We remain
particularly excited about the potential to expand the reach of our
Content Media services, and we are likewise optimistic about the
potential growth in some of our other high-growth initiatives, such
as Single-Tap. We look forward to providing updates on our
progress related to these and other growth initiatives in the
quarters to come."
Third Quarter Fiscal 2021 Financial Results
Total revenue for the third quarter of fiscal 2021 was
$88.6 million, representing an
increase of 146% year-over-year. Application Media revenue
increased 58% year-over-year to $56.9
million in the quarter, while Content Media revenue, which
was primarily related to the February
2020 acquisition of Mobile Posse, totaled $31.7 million.
GAAP gross margin was 43% for the third quarter of fiscal 2021,
as compared to a 39% GAAP gross margin in the third quarter of
fiscal 2020. Non-GAAP adjusted gross margin4 was 43% for
the third quarter of fiscal 2021, as compared to 40% for the third
quarter of fiscal 2020.
GAAP net income for the third quarter of fiscal 2021, inclusive
of a $4.7 million adjustment to the
contingent earn-out provision, was $14.5
million, or $0.15 per share,
as compared to GAAP net income for the third quarter of fiscal 2020
of $3.3 million, or $0.04 per share. Non-GAAP adjusted net
income1 for the third quarter of fiscal 2021 was
$20.0 million, or $0.21 per share, as compared to non-GAAP adjusted
net income of $5.0 million, or
$0.05 per share, during the third
quarter of fiscal 2020.
Non-GAAP adjusted EBITDA2 was $22.5 million for the third quarter of fiscal
2021, as compared to non-GAAP adjusted EBITDA of $5.6 million for the third 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.
New Credit Facility Agreement
On February 3, 2021, the Company
entered into a new credit facility agreement with Bank of America,
N.A., which provides for a revolving line of credit of $100 million, with an accordion feature enabling
upsizing to $200 million, to be used
for acquisitions, working capital and general corporate
purposes. The revolving line of credit matures in 2024 and
replaced the Company's prior term loan and credit facility.
"We are pleased to partner with Bank of America, N.A. on this
new credit facility which offers greater financial flexibility and
more attractive terms than our previous facility. We believe the
new, larger facility will help support our current and future
growth initiatives, enabling us to execute on our broader growth
strategy," said Barrett Garrison,
CFO.
Business Outlook
Based on information available as of February 3, 2021, the Company currently expects
the following for its full-year fiscal 2021 period:
- Revenue of between $298 million
and $300 million
- Non-GAAP adjusted EBITDA of between $71
million and $72 million
- Non-GAAP adjusted EPS of $0.67,
based on approximately 98 million diluted shares outstanding
It is not reasonably practicable to provide a business outlook
for GAAP net income 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 third 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 February 10,
2021. The replay can be accessed by dialing 877-344-7529 in
the United States or 412-317-0088
from international locations, passcode 10151854.
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 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 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 excluding the following cash and non-cash expenses: net
interest income/(expense), adjustments in the earn-out liability
associated with the Mobile Posse acquisition, 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 and transaction expenses. Readers are
cautioned that non-GAAP adjusted EBITDA should not be construed as
an alternative to net income 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),
excluding acquisition-related contingency payments, 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 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
(in thousands, except per share amounts)
|
|
|
|
3 Months Ended
December 31,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Net
revenues
|
|
$
|
88,592
|
|
|
$
|
36,016
|
|
Cost of
revenues
|
|
|
|
|
License fees and
revenue share
|
|
50,144
|
|
|
21,576
|
|
Other direct costs of
revenues
|
|
749
|
|
|
400
|
|
Total cost of
revenues
|
|
50,893
|
|
|
21,976
|
|
Gross
profit
|
|
37,699
|
|
|
14,040
|
|
Operating
expenses
|
|
|
|
|
Product
development
|
|
5,202
|
|
|
2,783
|
|
Sales and
marketing
|
|
5,219
|
|
|
2,815
|
|
General and
administrative
|
|
6,761
|
|
|
4,310
|
|
Total operating
expenses
|
|
17,182
|
|
|
9,908
|
|
Income from
operations
|
|
20,517
|
|
|
4,132
|
|
Interest and other
income / (expense), net
|
|
|
|
|
Interest income /
(expense), net
|
|
(266)
|
|
|
59
|
|
Change in fair value
of warrant liability
|
|
—
|
|
|
(870)
|
|
Change in estimated
contingent consideration
|
|
(4,662)
|
|
|
—
|
|
Other income /
(expense)
|
|
(13)
|
|
|
(19)
|
|
Total interest and
other income / (expense), net
|
|
(4,941)
|
|
|
(830)
|
|
Income from
continuing operations before income taxes
|
|
15,576
|
|
|
3,302
|
|
Income tax
provision
|
|
1,061
|
|
|
41
|
|
Income from
continuing operations, net of taxes
|
|
14,515
|
|
|
3,261
|
|
Loss from discontinued
operations
|
|
—
|
|
|
65
|
|
Net loss from
discontinued operations, net of taxes
|
|
—
|
|
|
65
|
|
Net income
|
|
$
|
14,515
|
|
|
$
|
3,326
|
|
Other comprehensive
loss
|
|
|
|
|
Foreign currency
translation adjustment
|
|
(132)
|
|
|
(44)
|
|
Comprehensive income
/ (loss)
|
|
$
|
14,383
|
|
|
$
|
3,282
|
|
Basic net loss per
common share
|
|
|
|
|
Continuing
operations
|
|
$
|
0.16
|
|
|
$
|
0.04
|
|
Discontinued
operations
|
|
—
|
|
|
—
|
|
Net loss
|
|
$
|
0.16
|
|
|
$
|
0.04
|
|
Weighted-average
common shares outstanding, basic
|
|
89,003
|
|
|
85,876
|
|
Diluted net loss per
common share
|
|
|
|
|
Continuing
operations
|
|
$
|
0.15
|
|
|
$
|
0.04
|
|
Discontinued
operations
|
|
—
|
|
|
—
|
|
Net loss
|
|
$
|
0.15
|
|
|
$
|
0.04
|
|
Weighted-average
common shares outstanding, diluted
|
|
96,976
|
|
|
92,472
|
|
Digital Turbine,
Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except par value and share
amounts)
|
|
|
|
December 31,
2020
|
|
March 31,
2020
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash
|
|
$
|
43,659
|
|
|
$
|
21,534
|
|
Restricted
cash
|
|
—
|
|
|
125
|
|
Accounts receivable,
net of allowances of $4,913 and $4,059, respectively
|
|
59,027
|
|
|
33,135
|
|
Prepaid expenses and
other current assets
|
|
1,955
|
|
|
3,653
|
|
Total current
assets
|
|
104,641
|
|
|
58,447
|
|
Property and
equipment, net
|
|
11,670
|
|
|
8,183
|
|
Right-of-use
assets
|
|
3,807
|
|
|
4,237
|
|
Intangible assets,
net
|
|
41,871
|
|
|
43,882
|
|
Goodwill
|
|
70,452
|
|
|
69,262
|
|
TOTAL
ASSETS
|
|
$
|
232,441
|
|
|
$
|
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
|
|
34,142
|
|
|
$
|
31,579
|
|
Accrued license fees
and revenue share
|
|
36,188
|
|
|
19,423
|
|
Accrued
compensation
|
|
8,340
|
|
|
4,311
|
|
Accrued
earn-out
|
|
10,000
|
|
|
23,735
|
|
Other current
liabilities
|
|
7,849
|
|
|
2,573
|
|
Total current
liabilities
|
|
98,457
|
|
|
82,809
|
|
Long-term debt, net of
issuance costs of $198 and $245, respectively
|
|
17,052
|
|
|
18,505
|
|
Other non-current
liabilities
|
|
4,758
|
|
|
5,243
|
|
Total
liabilities
|
|
120,267
|
|
|
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; 90,143,539 issued and 89,409,083
outstanding at December 31, 2020; 88,041,240 issued and
87,306,784 outstanding at March 31, 2020
|
|
10
|
|
|
10
|
|
Additional paid-in
capital
|
|
370,435
|
|
|
360,224
|
|
Treasury stock
(754,599 shares at December 31, 2020 and March 31,
2020)
|
|
(71)
|
|
|
(71)
|
|
Accumulated other
comprehensive loss
|
|
(910)
|
|
|
(591)
|
|
Accumulated
deficit
|
|
(257,390)
|
|
|
(282,218)
|
|
Total stockholders'
equity
|
|
112,174
|
|
|
77,454
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
232,441
|
|
|
$
|
184,011
|
|
Digital Turbine,
Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)
|
|
|
|
3 Months Ended
December 31,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flows from
operating activities
|
|
|
|
|
Net income from
continuing operations, net of taxes
|
|
14,515
|
|
|
3,261
|
|
Adjustments to
reconcile net income from continuing operations to net cash
provided by operating activities:
|
|
|
|
|
Depreciation and
amortization
|
|
1,821
|
|
|
540
|
|
Loss on disposal of
fixed assets
|
|
—
|
|
|
(4)
|
|
Change in provision
for doubtful accounts
|
|
257
|
|
|
48
|
|
Non-cash interest
expense
|
|
19
|
|
|
—
|
|
Stock-based
compensation
|
|
(123)
|
|
|
744
|
|
Stock-based
compensation for services rendered
|
|
283
|
|
|
173
|
|
Change in fair value
of warrant liability
|
|
—
|
|
|
870
|
|
Change in estimated
contingent consideration
|
|
4,662
|
|
|
—
|
|
Payment of contingent
consideration in excess of amount capitalized at
acquisition
|
|
(5,419)
|
|
|
—
|
|
(Increase) / decrease
in assets:
|
|
|
|
|
Accounts
receivable
|
|
(13,011)
|
|
|
(1,439)
|
|
Deferred tax
assets
|
|
—
|
|
|
7
|
|
Prepaid expenses and
other current assets
|
|
61
|
|
|
(743)
|
|
Right-of-use
assets
|
|
186
|
|
|
104
|
|
Increase / (decrease)
in liabilities:
|
|
|
|
|
Accounts
payable
|
|
(2,213)
|
|
|
(1,493)
|
|
Accrued license fees
and revenue share
|
|
13,988
|
|
|
4,634
|
|
Accrued
compensation
|
|
2,804
|
|
|
889
|
|
Other current
liabilities
|
|
1,268
|
|
|
904
|
|
Other non-current
liabilities
|
|
(152)
|
|
|
(105)
|
|
Net cash provided by
operating activities - continuing operations
|
|
18,946
|
|
|
8,390
|
|
Net cash provided by
operating activities - discontinued operations
|
|
—
|
|
|
47
|
|
Net cash provided
by operating activities
|
|
18,946
|
|
|
8,437
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
(2,366)
|
|
|
(1,374)
|
|
Net cash used in
investing activities
|
|
(2,366)
|
|
|
(1,374)
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Payment of contingent
consideration
|
|
(7,655)
|
|
|
—
|
|
Options and warrants
exercised
|
|
2,399
|
|
|
1,541
|
|
Repayment of debt
obligations
|
|
(500)
|
|
|
—
|
|
Net cash (used in)
/ provided by financing activities
|
|
(5,756)
|
|
|
1,541
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
(132)
|
|
|
(44)
|
|
|
|
|
|
|
Net change in
cash
|
|
10,692
|
|
|
8,560
|
|
|
|
|
|
|
Cash and
restricted cash, beginning of period
|
|
32,967
|
|
|
25,319
|
|
|
|
|
|
|
Cash and
restricted cash, end of period
|
|
43,659
|
|
|
33,879
|
|
GAAP GROSS MARGIN
TO NON-GAAP GROSS MARGIN
|
(in
thousands)
|
|
|
|
|
|
|
3 Months Ended
December 31,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Continuing
operations
|
|
|
|
|
Revenue
|
|
$
|
88,592
|
|
|
$
|
36,016
|
|
Gross
profit
|
|
37,699
|
|
|
14,040
|
|
Gross margin
percentage
|
|
43
|
%
|
|
39
|
%
|
Add-back
items:
|
|
|
|
|
Depreciation of
software
|
|
748
|
|
|
400
|
|
Non-GAAP gross profit
from continuing operations
|
|
$
|
38,447
|
|
|
$
|
14,440
|
|
Non-GAAP gross margin
percentage from continuing operations
|
|
43
|
%
|
|
40
|
%
|
|
|
|
|
|
|
|
|
|
|
GAAP NET INCOME /
(LOSS) TO NON-GAAP ADJUSTED NET INCOME
|
(in
thousands)
|
|
|
|
|
|
|
3 Months Ended
December 31,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Continuing
operations
|
|
|
|
|
Net income / (loss)
from continuing operations
|
|
14,515
|
|
|
3,261
|
|
Add-back
items:
|
|
|
|
|
Stock and stock option
compensation
|
|
160
|
|
|
917
|
|
Amortization of
intangibles
|
|
670
|
|
|
—
|
|
Adjustment for
estimated earn-out liability
|
|
4,662
|
|
|
—
|
|
Change in fair value
of warrant liability
|
|
—
|
|
|
870
|
|
Transaction
expenses
|
|
12
|
|
|
—
|
|
Non-GAAP adjusted net
income from continuing operations
|
|
$
|
20,019
|
|
|
$
|
5,048
|
|
Non-GAAP adjusted net
income per share from continuing operations
|
|
$
|
0.21
|
|
|
$
|
0.05
|
|
Weighted-average
common shares outstanding, diluted
|
|
96,980
|
|
|
92,472
|
|
|
|
GAAP NET INCOME /
(LOSS) TO NON-GAAP ADJUSTED EBITDA
|
(in
thousands)
|
|
|
|
|
|
|
3 Months Ended
December 31,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Continuing
operations
|
|
|
|
|
Net income / (loss)
from continuing operations
|
|
14,515
|
|
|
3,261
|
|
Add-back
items:
|
|
|
|
|
Stock and stock option
compensation
|
|
160
|
|
|
917
|
|
Amortization of
intangibles
|
|
670
|
|
|
—
|
|
Depreciation
expense
|
|
1,151
|
|
|
540
|
|
Interest (income) /
expense, net
|
|
266
|
|
|
(59)
|
|
Change in estimated
contingent consideration
|
|
4,662
|
|
|
—
|
|
Other (income) /
expense, net
|
|
13
|
|
|
19
|
|
Change in fair value
of warrant liability
|
|
—
|
|
|
870
|
|
Income tax
provision
|
|
1,061
|
|
|
41
|
|
Transaction
expenses
|
|
12
|
|
|
—
|
|
Non-GAAP adjusted
EBITDA from continuing operations
|
|
$
|
22,510
|
|
|
$
|
5,589
|
|
|
|
|
|
|
|
|
|
|
|
GAAP CASH FLOW
FROM OPERATING ACTIVITIES FROM CONTINUING OPERATIONS TO NON-GAAP
FREE
CASH FLOW FROM CONTINUING OPERATIONS
|
(in
thousands)
|
|
|
|
|
|
|
3 Months Ended
December 31,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Net cash provided by
operating activities from continuing operations
|
|
18,946
|
|
|
8,390
|
|
Capital
expenditures
|
|
(2,366)
|
|
|
(1,374)
|
|
Payment of contingent
consideration in excess of amount capitalized at
acquisition
|
|
$
|
5,419
|
|
|
$
|
—
|
|
Non-GAAP free cash
flow provided by continuing operations
|
|
$
|
21,999
|
|
|
$
|
7,016
|
|
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SOURCE Digital Turbine, Inc.