AUSTIN, Texas, June 1, 2021 /PRNewswire/ -- Digital Turbine,
Inc. (Nasdaq: APPS) announced financial results for the fiscal full
year and quarter ended March 31,
2021. 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. ("Mobile
Posse"), 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 of 2021 revenue totaled $95.1 million, representing an increase of 142%
as compared to total revenue reported in the fiscal fourth quarter
of 2020. Application Media revenue increased 95% year-over-year to
$67.2 million in the fiscal fourth
quarter of 2021. Content Media revenue, which primarily included
revenue related to the February 2020
acquisition of Mobile Posse, totaled $27.9
million in the fiscal fourth quarter of 2021.
- Fiscal year 2021 revenue totaled $313.6
million, representing annual growth of 126% as compared to
fiscal year 2020 revenue of $138.7
million.
- GAAP net income for the fiscal fourth quarter of 2021 was
$30.1 million, or $0.31 per share, as compared to GAAP net income
of $14.0 million, or $0.15 per share for the fiscal fourth quarter of
2020. Non-GAAP adjusted net income1 for the fiscal
fourth quarter of 2021 was $24.5
million, or $0.25 per share,
as compared to Non-GAAP adjusted net income of $4.2 million, or $0.05 per share, in the fiscal fourth quarter of
2020.
- Non-GAAP adjusted EBITDA2 for the fiscal fourth
quarter of 2021 was $22.5 million, as
compared to Non-GAAP adjusted EBITDA of $5.3
million in the fiscal fourth quarter of 2020. Non-GAAP
Adjusted EBITDA for full year fiscal 2021 totaled $75.6 million, representing 287% growth when
compared to Non-GAAP Adjusted EBITDA of $19.6 million in fiscal year 2020.
- GAAP cash provided by operating activities totaled $14.2 million in the fiscal fourth quarter of
2021, inclusive of the payment of $10.3
million of excess contingent consideration related to the
Mobile Posse acquisition earn-out provisions. Non-GAAP free cash
flow3 totaled $21.9
million in the fiscal fourth quarter of 2021.
"Fiscal 2021 was a breakout year for Digital Turbine," said
Bill Stone, CEO. "We
accelerated our revenue growth amid unprecedented global demand for
our Applications Media and Content Media offerings. At the same
time, we clearly demonstrated the compelling operating leverage
inherent in our platform business model, as evidenced by a more
than four-fold year-over-year increase in our non-GAAP Adjusted
EBITDA to $22.5 million, and a more
than five-fold year-over-year increase in our non-GAAP EPS to
$0.25 in the fiscal fourth quarter.
Profitable growth, via continued operational execution and
strategic platform expansion, remains the primary focus for the
Company."
Mr. Stone concluded, "Coming off of the breakout performance in
fiscal 2021, we are even more excited about fiscal 2022 and
beyond. The combination of Digital Turbine, Appreciate,
AdColony, and Fyber position us as a company with greater than
$1 billion in profitable annualized
revenue. This full ad-tech scale, combined with our
independent approach and unique on-device technology, provide us
with the opportunity to significantly increase our share of the
$300+ billion mobile media advertising market."
Fourth Quarter Fiscal 2021 Financial Results
Total revenue for the fourth quarter of fiscal 2021 was
$95.1 million, representing an
increase of 142% year-over-year. Application Media revenue
increased 95% year-over-year to $67.2
million in the quarter, while Content Media revenue, which
was primarily related to the February
2020 acquisition of Mobile Posse, totaled $27.9 million.
GAAP net income from continuing operations for the fourth
quarter of fiscal 2021 was $30.1
million, or $0.31 per share,
as compared to GAAP net income from continuing operations for the
fourth quarter of fiscal 2020 of $14.0
million, or $0.15 per
share. Non-GAAP adjusted net income1 for the
fourth quarter of fiscal 2021 was $24.5
million, or $0.25 per share,
as compared to Non-GAAP adjusted net income of $4.2 million, or $0.05 per share, during the fourth quarter of
fiscal 2020.
Non-GAAP adjusted EBITDA2 was $22.5 million for the fourth quarter of fiscal
2021, as compared to Non-GAAP adjusted EBITDA of $5.3 million for the fourth 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.
Full Year Fiscal 2021 Financial Results
Revenue for fiscal 2021 totaled $313.6
million, representing an increase of 126% as compared to
revenue of $138.7 million in fiscal
2020.
GAAP net income from continuing operations for fiscal 2021 was
$54.9 million, or $0.57 per share, as compared to GAAP net income
from continuing operations for fiscal 2020 of $14.3 million, or $0.16 per share. Non-GAAP adjusted net
income1 for fiscal 2021 was $71.5
million, or $0.74 per share,
as compared to Non-GAAP adjusted net income of $17.5 million, or $0.20 per share, in fiscal 2020.
Non-GAAP adjusted EBITDA2 was $75.6 million for fiscal 2021, as compared to
Non-GAAP adjusted EBITDA of $19.6
million in 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 June
1, 2021, the Company currently expects the following for the
first quarter of fiscal 2022:
- Revenue of between $188 million
and $192 million
- Non-GAAP adjusted EBITDA2 of between $32 million and $34
million
- Non-GAAP adjusted EPS1 of $0.31, based on approximately 100 million diluted
shares outstanding
Please note that the business outlook above incorporates the
results of AdColony beginning on April 29,
2021 (the closing date of the acquisition) and the results
of Fyber beginning on May 25, 2021
(the closing date of the acquisition).
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.
As previously announced in recent Form 8-K filings, Digital
Turbine, Inc. (the "Company") has consummated multiple significant
strategic acquisitions in April and May of 2021. In addition,
the Company engaged a new independent registered public accounting
firm in March of 2021, just prior to its March 31, 2021 fiscal year-end, to align with the
growing scale and global profile of the Company. The
acquisitions have utilized significant internal resources, which
has impacted the Company's ability to (a) provide all the necessary
information to their auditors for them to complete the audit and
(b) prepare related disclosures to be included in the Company's
Annual Report on Form 10-K for the fiscal year ended March 31, 2021 (the "Form 10-K"). As a
result, the Form 10-K cannot be filed within the required time
period. The Company expects to file the Form 10-K within the
fifteen-calendar day grace period, as provided by Rule 12b-25 of the Securities Exchange Act of
1934.
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 2021 financial results and provide 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 June 8,
2021. The replay can be accessed by dialing 877-344-7529 in
the United States or 412-317-0088
from international locations, passcode 10156739.
The conference call will discuss forward 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 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, loss on extinguishment of debt 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.
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 AdColony, including our ability to realize the
anticipated benefits of the acquisition and the satisfaction of
related earn-out provisions
- risks and uncertainties associated with the integration of the
acquisition of Fyber, including our ability to realize the
anticipated benefits of the acquisition and the satisfaction of
related earn-out provisions
- risks associated with the failure or inability to pay the
future consideration due in the AdColony and Fyber
acquisitions
- challenges and risks associated with our rapid growth by
acquisitions and resulting significant demands on our management
and infrastructure
- challenges and risks associated with our global operations and
related business, political, regulatory, operational, financial,
and economic risks as a result of our global operations
- 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
|
(in thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
Three months ended
March 31,
|
|
Year ended March
31,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
revenues
|
|
$
|
95,082
|
|
|
$
|
39,351
|
|
|
$
|
313,579
|
|
|
$
|
138,715
|
|
Costs of revenues and
operating expenses
|
|
|
|
|
|
|
|
|
License fees and
revenue share
|
|
55,673
|
|
|
23,591
|
|
|
178,649
|
|
|
83,588
|
|
Other direct costs of
revenues
|
|
387
|
|
|
432
|
|
|
2,358
|
|
|
1,454
|
|
Product
development
|
|
6,292
|
|
|
3,706
|
|
|
20,119
|
|
|
12,018
|
|
Sales and
marketing
|
|
4,932
|
|
|
3,710
|
|
|
19,304
|
|
|
11,244
|
|
General and
administrative
|
|
11,844
|
|
|
4,987
|
|
|
33,940
|
|
|
17,199
|
|
Total costs of
revenues and operating expenses
|
|
79,128
|
|
|
36,426
|
|
|
254,370
|
|
|
125,503
|
|
Income from
operations
|
|
15,954
|
|
|
2,925
|
|
|
59,209
|
|
|
13,212
|
|
Interest and other
income / (expense), net
|
|
|
|
|
|
|
|
|
Change in estimated
contingent consideration
|
|
(332)
|
|
|
—
|
|
|
(15,751)
|
|
|
—
|
|
Interest income /
(expense)
|
|
(144)
|
|
|
(77)
|
|
|
(1,003)
|
|
|
41
|
|
Change in fair value
of warrant liability
|
|
—
|
|
|
1,021
|
|
|
—
|
|
|
(9,580)
|
|
Loss on extinguishment
of debt
|
|
(452)
|
|
|
—
|
|
|
(452)
|
|
|
—
|
|
Other income /
(expense)
|
|
(95)
|
|
|
(223)
|
|
|
(146)
|
|
|
232
|
|
Total interest and
other income / (expense), net
|
|
(1,023)
|
|
|
721
|
|
|
(17,352)
|
|
|
(9,307)
|
|
Income from
continuing operations before income taxes
|
|
14,931
|
|
|
3,646
|
|
|
41,857
|
|
|
3,905
|
|
Income tax
benefit
|
|
(15,125)
|
|
|
(10,381)
|
|
|
(13,027)
|
|
|
(10,375)
|
|
Income from
continuing operations, net of taxes
|
|
30,056
|
|
|
14,027
|
|
|
54,884
|
|
|
14,280
|
|
Loss from discontinued
operations
|
|
—
|
|
|
(209)
|
|
|
—
|
|
|
(380)
|
|
Loss from discontinued
operations, net of taxes
|
|
—
|
|
|
(209)
|
|
|
—
|
|
|
(380)
|
|
Net income
|
|
30,056
|
|
|
13,818
|
|
|
54,884
|
|
|
13,900
|
|
Other comprehensive
income / (loss)
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
7
|
|
|
129
|
|
|
(312)
|
|
|
(235)
|
|
Comprehensive
income
|
|
$
|
30,063
|
|
|
$
|
13,947
|
|
|
$
|
54,572
|
|
|
$
|
13,665
|
|
Basic net income per
common share
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
0.34
|
|
|
0.16
|
|
|
0.62
|
|
|
0.17
|
|
Discontinued
operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Basic net income per
common share
|
|
$
|
0.34
|
|
|
$
|
0.16
|
|
|
$
|
0.62
|
|
|
$
|
0.17
|
|
Weighted-average
common shares outstanding, basic
|
|
89,665
|
|
|
86,784
|
|
|
88,514
|
|
|
84,594
|
|
Diluted net income
per common share
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
0.31
|
|
|
0.15
|
|
|
0.57
|
|
|
0.16
|
|
Discontinued
operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Diluted net income per
common share
|
|
$
|
0.31
|
|
|
$
|
0.15
|
|
|
$
|
0.57
|
|
|
$
|
0.16
|
|
Weighted-average
common shares outstanding, diluted
|
|
97,582
|
|
|
91,875
|
|
|
96,151
|
|
|
89,558
|
|
Digital Turbine,
Inc. and Subsidiaries
|
Consolidated
Balance Sheets
|
(in thousands,
except par value and share amounts)
|
(Unaudited)
|
|
|
|
March 31,
2021
|
|
March 31,
2020
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash
|
|
$
|
30,778
|
|
|
$
|
21,534
|
|
Restricted
cash
|
|
340
|
|
|
125
|
|
Accounts receivable,
net of allowances for credit losses of $5,488 and $4,059,
respectively
|
|
61,985
|
|
|
33,135
|
|
Prepaid expenses and
other current assets
|
|
4,282
|
|
|
3,653
|
|
Total current
assets
|
|
97,385
|
|
|
58,447
|
|
Property and
equipment, net
|
|
13,050
|
|
|
8,183
|
|
Right-of-use
assets
|
|
3,495
|
|
|
4,237
|
|
Deferred tax assets,
net
|
|
12,963
|
|
|
—
|
|
Intangible assets,
net
|
|
53,300
|
|
|
43,882
|
|
Goodwill
|
|
80,176
|
|
|
69,262
|
|
TOTAL
ASSETS
|
|
$
|
260,369
|
|
|
$
|
184,011
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
|
34,953
|
|
|
$
|
31,579
|
|
Accrued license fees
and revenue share
|
|
46,196
|
|
|
19,423
|
|
Accrued
compensation
|
|
9,817
|
|
|
4,311
|
|
Accrued
earn-out
|
|
—
|
|
|
23,735
|
|
Short-term debt, net
of debt issuance costs of $443 and $62, respectively
|
|
14,557
|
|
|
1,188
|
|
Other current
liabilities
|
|
5,626
|
|
|
2,573
|
|
Total current
liabilities
|
|
111,149
|
|
|
82,809
|
|
Long-term debt, net of
debt issuance costs of $— and $245, respectively
|
|
—
|
|
|
18,505
|
|
Other non-current
liabilities
|
|
4,108
|
|
|
5,243
|
|
Total
liabilities
|
|
115,257
|
|
|
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)
|
|
100
|
|
|
100
|
|
Common
stock
|
|
|
|
|
$0.0001 par value:
200,000,000 shares authorized; 90,685,553 issued and 89,949,847
outstanding at March 31, 2021; 88,041,240 issued and
87,306,784 outstanding at March 31, 2020
|
|
10
|
|
|
10
|
|
Additional paid-in
capital
|
|
373,310
|
|
|
360,224
|
|
Treasury stock
(754,599 shares at March 31, 2021 and March 31,
2020)
|
|
(71)
|
|
|
(71)
|
|
Accumulated other
comprehensive loss
|
|
(903)
|
|
|
(591)
|
|
Accumulated
deficit
|
|
(227,334)
|
|
|
(282,218)
|
|
Total stockholders'
equity
|
|
145,112
|
|
|
77,454
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
|
260,369
|
|
|
$
|
184,011
|
|
Digital Turbine,
Inc. and Subsidiaries
|
Consolidated
Statements of Cash Flows
|
(in
thousands)
|
(Unaudited)
|
|
|
|
Three months ended
March 31,
|
|
|
2021
|
|
2020
|
Cash flows from
operating activities
|
|
|
|
|
Net income from
continuing operations, net of taxes
|
|
$
|
30,056
|
|
|
$
|
14,027
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
2,052
|
|
|
858
|
|
Non-cash interest
expense
|
|
39
|
|
|
6
|
|
Stock-based
compensation
|
|
1,308
|
|
|
666
|
|
Stock-based
compensation for services rendered
|
|
283
|
|
|
173
|
|
Loss on disposal of
fixed assets
|
|
—
|
|
|
(4)
|
|
Change in fair value
of warrant liability
|
|
—
|
|
|
(1,021)
|
|
Loss on extinguishment
of debt
|
|
255
|
|
|
—
|
|
Change in estimate of
remaining contingent consideration
|
|
332
|
|
|
—
|
|
Payment of contingent
consideration in excess of amounts capitalized at
acquisition
|
|
(10,332)
|
|
|
—
|
|
(Increase) / decrease
in assets:
|
|
|
|
|
Accounts receivable,
gross
|
|
1,368
|
|
|
1,762
|
|
Allowance for credit
losses
|
|
570
|
|
|
2,660
|
|
Prepaid expenses and
other current assets
|
|
(2,284)
|
|
|
82
|
|
Deferred tax
assets
|
|
(12,952)
|
|
|
—
|
|
Right-of-use
asset
|
|
312
|
|
|
171
|
|
Increase / (decrease)
in liabilities:
|
|
|
|
|
Accounts
payable
|
|
(4,460)
|
|
|
10,260
|
|
Accrued license fees
and revenue share
|
|
9,643
|
|
|
(3,689)
|
|
Accrued
compensation
|
|
1,195
|
|
|
806
|
|
Other current
liabilities
|
|
(2,552)
|
|
|
(2,419)
|
|
Other non-current
liabilities
|
|
(650)
|
|
|
(10,823)
|
|
Net cash provided by
operating activities - continuing operations
|
|
14,183
|
|
|
13,515
|
|
Net cash used in
operating activities - discontinued operations
|
|
—
|
|
|
(2,148)
|
|
Net cash provided
by operating activities
|
|
14,183
|
|
|
11,367
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Capital
expenditures
|
|
(2,659)
|
|
|
(1,666)
|
|
Acquisition of
Appreciate, net of cash
|
|
(20,348)
|
|
|
—
|
|
Acquisition of Mobile
Posse, net of cash
|
|
(288)
|
|
|
(41,872)
|
|
Net cash used in
investing activities
|
|
(23,295)
|
|
|
(43,538)
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Proceeds from
borrowings
|
|
15,000
|
|
|
20,000
|
|
Payment of debt
issuance costs
|
|
(469)
|
|
|
(313)
|
|
Payment of contingent
consideration
|
|
1
|
|
|
—
|
|
Options and warrants
exercised
|
|
1,282
|
|
|
135
|
|
Repayment of debt
obligations
|
|
(19,250)
|
|
|
—
|
|
Net cash provided
by / (used in) financing activities
|
|
(3,436)
|
|
|
19,822
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash
|
|
7
|
|
|
129
|
|
|
|
|
|
|
Net change in
cash
|
|
(12,541)
|
|
|
(12,220)
|
|
|
|
|
|
|
Cash and
restricted cash, beginning of year
|
|
43,659
|
|
|
33,879
|
|
|
|
|
|
|
Cash and
restricted cash, end of year
|
|
$
|
31,118
|
|
|
$
|
21,659
|
|
GAAP INCOME FROM
OPERATIONS TO NON-GAAP GROSS PROFIT
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
Year ended March
31,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Continuing
operations
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$
|
95,082
|
|
|
$
|
39,351
|
|
|
$
|
313,579
|
|
|
$
|
138,715
|
|
Income from
operations
|
|
15,954
|
|
|
2,925
|
|
|
59,209
|
|
|
13,212
|
|
Add-back
items:
|
|
|
|
|
|
|
|
|
Product
development
|
|
6,292
|
|
|
3,706
|
|
|
20,119
|
|
|
12,018
|
|
Sales and
marketing
|
|
4,932
|
|
|
3,710
|
|
|
19,304
|
|
|
11,244
|
|
General and
administrative
|
|
11,844
|
|
|
4,987
|
|
|
33,940
|
|
|
17,199
|
|
Depreciation of
software included in other direct costs of revenue
|
|
387
|
|
|
431
|
|
|
2,357
|
|
|
1,454
|
|
Non-GAAP gross profit
from continuing operations
|
|
$
|
39,409
|
|
|
$
|
15,759
|
|
|
$
|
134,929
|
|
|
$
|
55,127
|
|
Non-GAAP gross profit
percentage from continuing operations
|
|
41
|
%
|
|
40
|
%
|
|
43
|
%
|
|
40
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP NET INCOME TO
NON-GAAP ADJUSTED NET INCOME
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
Year ended March
31,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Continuing
operations
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
|
$
|
30,056
|
|
|
$
|
14,027
|
|
|
$
|
54,884
|
|
|
$
|
14,280
|
|
Add-back
items:
|
|
|
|
|
|
|
|
|
Stock and stock option
compensation
|
|
1,591
|
|
|
839
|
|
|
5,877
|
|
|
3,353
|
|
Amortization of
intangibles
|
|
766
|
|
|
218
|
|
|
2,776
|
|
|
218
|
|
Adjustment for
estimated earn-out liability
|
|
332
|
|
|
—
|
|
|
15,751
|
|
|
—
|
|
Change in fair value
of warrant liability
|
|
—
|
|
|
(1,021)
|
|
|
—
|
|
|
9,580
|
|
Tax adjustment
(1)
|
|
(11,154)
|
|
|
(10,552)
|
|
|
(11,154)
|
|
|
(10,552)
|
|
Transaction
expenses
|
|
2,951
|
|
|
657
|
|
|
3,413
|
|
|
657
|
|
Non-GAAP adjusted net
income from continuing operations
|
|
$
|
24,542
|
|
|
$
|
4,168
|
|
|
$
|
71,547
|
|
|
$
|
17,536
|
|
Non-GAAP adjusted net
income per share from continuing operations
|
|
$
|
0.25
|
|
|
$
|
0.05
|
|
|
$
|
0.74
|
|
|
$
|
0.20
|
|
Weighted-average
common shares outstanding, diluted
|
|
97,582
|
|
|
91,875
|
|
|
96,151
|
|
|
89,558
|
|
(1) Valuation
allowance release
|
GAAP NET INCOME TO
NON-GAAP ADJUSTED EBITDA
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
Year ended March
31,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Continuing
operations
|
|
|
|
|
|
|
|
|
Net income from
continuing operations
|
|
$
|
30,056
|
|
|
$
|
14,027
|
|
|
$
|
54,884
|
|
|
$
|
14,280
|
|
Add-back
items:
|
|
|
|
|
|
|
|
|
Stock and stock option
compensation
|
|
1,591
|
|
|
839
|
|
|
5,877
|
|
|
3,353
|
|
Amortization of
intangibles
|
|
766
|
|
|
218
|
|
|
2,776
|
|
|
218
|
|
Depreciation
expense
|
|
1,286
|
|
|
620
|
|
|
4,338
|
|
|
2,124
|
|
Interest (income) /
expense, net
|
|
144
|
|
|
77
|
|
|
1,003
|
|
|
(41)
|
|
Other (income) /
expense, net
|
|
95
|
|
|
223
|
|
|
146
|
|
|
(245)
|
|
Change in fair value
of contingent liability
|
|
332
|
|
|
—
|
|
|
15,751
|
|
|
—
|
|
Change in fair value
of warrant liability
|
|
—
|
|
|
(1,021)
|
|
|
—
|
|
|
9,580
|
|
Loss on extinguishment
of debt
|
|
452
|
|
|
—
|
|
|
452
|
|
|
—
|
|
Income tax provision /
(benefit)
|
|
(15,125)
|
|
|
(10,381)
|
|
|
(13,027)
|
|
|
(10,375)
|
|
Transaction
expenses
|
|
2,951
|
|
|
657
|
|
|
3,413
|
|
|
657
|
|
Non-GAAP adjusted
EBITDA from continuing operations
|
|
$
|
22,548
|
|
|
$
|
5,259
|
|
|
$
|
75,613
|
|
|
$
|
19,551
|
|
GAAP CASH FLOW
FROM OPERATING ACTIVITIES FROM CONTINUING OPERATIONS TO NON-GAAP
FREE CASH FLOW FROM CONTINUING OPERATIONS
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
2021
|
|
2020
|
Net cash provided by
operating activities - continuing operations
|
|
$
|
14,183
|
|
|
$
|
13,515
|
|
Capital
expenditures
|
|
(2,659)
|
|
|
(1,666)
|
|
Payment of contingent
consideration in excess of amounts capitalized at
acquisition
|
|
10,332
|
|
|
—
|
|
Non-GAAP free cash
flow provided by continuing operations
|
|
$
|
21,856
|
|
|
$
|
11,849
|
|
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SOURCE Digital Turbine, Inc.