Fiscal 2022 Revenue of $747.6 Million Increased 138% on an As-Reported
Basis; Fourth Quarter Revenue Totaled $184.1
Million
Fiscal 2022 GAAP Net Income of $35.6 Million and GAAP EPS of $0.35
Fiscal 2022 Non-GAAP EPS1 of
$1.66 Increased 124% Year-Over-Year;
Fiscal 2022 Non-GAAP Adjusted EBITDA2 of $195.2 Million Increased 158%
Year-Over-Year
AUSTIN,
Texas, May 31, 2022 /PRNewswire/ -- Digital
Turbine, Inc. (Nasdaq: APPS) announced financial results for the
fiscal full year and quarter ended March 31,
2022. The Company completed the acquisitions of AdColony
Holdings AS ("AdColony") and Fyber N.V. ("Fyber") on April 29 and May 25,
2021, respectively. Specific references made to "pro forma"
results in this release provide investors with quarterly results
and comparisons as if all acquired businesses were owned for the
entirety of fiscal years 2021 and 2022. The Company believes that
pro forma results, where applicable, can provide investors with
more relevant year-over-year comparisons. As was initially
announced on May 11, 2022, the
Company has restated its financial results for the fiscal year 2022
quarters to reflect revenue net of revenue share costs for certain
product offerings of the acquired AdColony and Fyber businesses.
Results discussed below reflect this change.
Recent Financial Highlights:
- Fiscal fourth quarter of 2022 revenue totaled $184.1 million, representing a 94% increase
year-over-year on an as-reported basis and a 19% increase
year-over-year as compared to the comparable pro forma figure for
the fiscal fourth quarter of 2021.
- Fiscal year 2022 revenue totaled $747.6
million, representing a 138% increase year-over-year on an
as-reported basis. On a pro forma basis, fiscal year 2022 revenue
increased 41% year-over-year as compared to the comparable pro
forma figure for fiscal year 2021.
- GAAP net income for the fiscal fourth quarter of 2022 was
$20.1 million, or $0.19 per share, as compared to GAAP net income
for the fiscal fourth quarter of 2021 of $30.1 million, or $0.31 per share. Non-GAAP adjusted net
income1 for the fiscal fourth quarter of 2022 was
$41.0 million, or $0.39 per share, as compared to Non-GAAP adjusted
net income1 of $24.5
million, or $0.25 per share,
in the fiscal fourth quarter of 2021.
- GAAP net income for fiscal year 2022 was $35.6 million, or $0.35 per share, as compared to GAAP net income
for fiscal year 2021 of $54.9
million, or $0.57 per share.
Non-GAAP adjusted net income1 for fiscal year 2022 was $170.6 million, or $1.66 per share, representing an increase of 124%
year-over-year.
- Non-GAAP adjusted EBITDA2 for the fiscal fourth
quarter of 2022 was $50.4 million,
representing an increase of 124% as compared to Non-GAAP adjusted
EBITDA2 of $22.5 million
in the fiscal fourth quarter of 2021.
- Non-GAAP Adjusted EBITDA2 for fiscal year 2022
totaled $195.2 million, representing
158% growth when compared to Non-GAAP Adjusted EBITDA2
of $75.6 million in fiscal year
2021.
"It is more important than ever to have a clear vision of where
you are going as a Company, and to have a highly profitable,
proven, and scalable business model to get there in times like
these," said Bill Stone, CEO. "The
macro world has changed considerably in recent months, and I am
proud of our team's focus and execution to adjust to the rapidly
evolving operating conditions. We have made material progress on a
number of key future growth drivers, such as SingleTap licensing,
our role in the future of app stores, and the enhancement of
numerous strategic partnerships with market-leading companies
looking to leverage DT platform offerings as a core part of their
respective growth initiatives. While macro headwinds will present
certain challenges for nearly all companies in the short-term, I am
confident that those headwinds will be less impactful for highly
profitable growth businesses like ours generating nine-figures of
free cash flow per year. Additionally, I believe the recent changes
in the reporting of our revenue should help facilitate relative
peer comparisons and highlight the relative profitability of our
platform business model."
Fourth Quarter Fiscal 2022 Financial Results
Total revenue for the fourth quarter of fiscal 2022 was
$184.1 million, representing a 94%
increase year-over-year on an as-reported basis and a 19% increase
year-over-year as compared to the comparable pro forma figure for
the fiscal fourth quarter of 2021. Total "On-Device Media" revenue,
which represents revenue derived from the Company's Application
Media and Content Media platform products before intercompany
eliminations, increased 22% year-over-year to $119.2 million. Before intercompany eliminations,
total revenue from our two "In-App Media" segments, which
represents revenue derived from the Fyber and AdColony businesses,
increased 16% year-over-year on a pro forma basis to $69.6 million. Fyber contributed $29.2 million during the quarter, while AdColony
contributed $40.4 million during the
quarter.
GAAP net income for the fiscal fourth quarter of 2022 was
$20.1 million, or $0.19 per share. Non-GAAP adjusted net
income1 for the fourth quarter of fiscal 2022 was
$41.0 million, or $0.39 per share, as compared to Non-GAAP adjusted
net income1 of $24.5
million, or $0.25 per share,
in the fourth quarter of fiscal 2021.
Non-GAAP adjusted EBITDA2 for the fourth quarter of
fiscal 2022 was $50.4 million,
representing an increase of 124% year-over-year when compared to
Non-GAAP adjusted EBITDA2 of $22.5 million in the fourth quarter of fiscal
2021. 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 2022 Financial Results
Total revenue for fiscal 2022 was $747.6
million, representing 138% annual growth on as as-reported
basis. On a pro forma basis, fiscal year 2022 revenue increased 41%
year-over-year as compared to the comparable pro forma figure for
fiscal year 2021.
GAAP net income for fiscal 2022 was $35.6
million, or $0.35 per share.
Non-GAAP adjusted net income1 for fiscal 2022 was
$170.6 million, or $1.66 per share, as compared to Non-GAAP adjusted
net income1 of $71.5
million, or $0.74 per share,
in fiscal 2021.
Non-GAAP adjusted EBITDA2 for fiscal 2022 was
$195.2 million, representing an
increase of 158% year-over-year when compared to Non-GAAP adjusted
EBITDA2 of $75.6 million
in fiscal 2021. 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 May
31, 2022, the Company currently expects the following for
the first quarter of fiscal 2023:
- Revenue of between $183 million
and $187 million
- Non-GAAP adjusted EBITDA2 of between $49 million and $51
million
- Non-GAAP adjusted EPS1 of $0.34 to $0.35,
based on approximately 105 million diluted shares outstanding and
an effective tax rate of 25% on Non-GAAP adjusted net income
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, or other items that are difficult to predict with
precision.
About Digital Turbine, Inc.
Digital Turbine simplifies content discovery and delivers
relevant content directly to consumer devices. The Company's
on-demand media platform powers frictionless app and content
discovery, user acquisition and engagement, operational efficiency
and monetization opportunities. Digital Turbine's technology
platform has been adopted by more than 40 mobile operators and OEMs
worldwide, and has delivered more than three billion app preloads
for tens of thousands of advertising campaigns. The company is
headquartered in Austin, Texas,
with global offices in Arlington,
Durham, Mumbai, San
Francisco, Singapore and
Tel Aviv. For additional
information visit www.digitalturbine.com.
Conference Call
Management will host a conference call today at 4:30 p.m. ET to discuss its fourth quarter and
full fiscal year 2022 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 7,
2022. The replay can be accessed by dialing 877-344-7529,
passcode 9278131.
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, non-GAAP free cash
flow, and non-GAAP gross profit. 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 expense, amortization of intangibles,
adjustments in the fair value of earn-out liabilities associated
with acquisitions, and transaction-related expenses and
compensation costs. 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 fair value of
earn-out liabilities associated with acquisitions, income tax
provision, depreciation and amortization, stock-based compensation
expense, amortization of intangibles, foreign exchange transaction
gains/(losses), loss on debt extinguishment, and
transaction-related expenses and compensation costs. 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 and liability payments
and transaction-related expenses and compensation costs, 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 gross profit is defined as GAAP income from
operations adjusted to exclude the effect of product development
costs, sales and marketing costs, general and administrative costs,
and depreciation of software. Readers are cautioned that non-GAAP
gross profit should not be construed as an alternative to income
from operations 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 EBITDA, non-GAAP adjusted net income and EPS,
non-GAAP free cash flow, and non-GAAP gross profit are used by
management as internal measures of profitability and performance.
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 activities of advertisers
- 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 a
rapidly developing mobile device marketplace, complex
specifications of different carriers and the management of a
complex technology platform given the Company's relatively limited
resources
- system security risks and cyberattacks
- risks and uncertainties associated with the integration of the
acquisition of AdColony, including our ability to realize the
anticipated benefits of the acquisition
- risks and uncertainties associated with the integration of the
acquisition of Fyber, including our ability to realize the
anticipated benefits of the acquisition
- 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 Contact:
Brian Bartholomew
Digital Turbine, Inc.
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)
|
|
|
|
Three months ended March 31,
|
|
Year ended March 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net revenue
|
|
$
184,135
|
|
$
95,082
|
|
$
747,596
|
|
$
313,579
|
Costs of revenue and
operating expenses
|
|
|
|
|
|
|
|
|
License fees and revenue share
|
|
86,279
|
|
55,673
|
|
370,648
|
|
178,649
|
Other direct costs of revenue
|
|
8,453
|
|
387
|
|
29,838
|
|
2,358
|
Product development
|
|
12,129
|
|
6,292
|
|
52,723
|
|
20,119
|
Sales and marketing
|
|
16,237
|
|
4,932
|
|
63,309
|
|
19,304
|
General and administrative
|
|
33,612
|
|
11,844
|
|
138,837
|
|
33,940
|
Total costs of revenue and
operating expenses
|
|
156,710
|
|
79,128
|
|
655,355
|
|
254,370
|
Income from
operations
|
|
27,425
|
|
15,954
|
|
92,241
|
|
59,209
|
Interest and other
income / (expense), net
|
|
|
|
|
|
|
|
|
Change in fair value of contingent consideration
|
|
(800)
|
|
(332)
|
|
(41,087)
|
|
(15,751)
|
Interest expense, net
|
|
(3,188)
|
|
(144)
|
|
(8,495)
|
|
(1,003)
|
Foreign exchange transaction gain
|
|
459
|
|
—
|
|
2,062
|
|
—
|
Loss on extinguishment of debt
|
|
—
|
|
(452)
|
|
—
|
|
(452)
|
Other expense, net
|
|
(151)
|
|
(95)
|
|
(749)
|
|
(146)
|
Total interest and other income
/ (expense),
net
|
|
(3,680)
|
|
(1,023)
|
|
(48,269)
|
|
(17,352)
|
Income before income
taxes
|
|
23,745
|
|
14,931
|
|
43,972
|
|
41,857
|
Income tax provision / (benefit)
|
|
3,604
|
|
(15,125)
|
|
8,403
|
|
(13,027)
|
Net income
|
|
20,141
|
|
30,056
|
|
35,569
|
|
54,884
|
Less: net income attributable to non-controlling
interest
|
|
41
|
|
—
|
|
23
|
|
—
|
Net income attributable
to Digital Turbine, Inc.
|
|
20,100
|
|
30,056
|
|
35,546
|
|
54,884
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment
|
|
5,667
|
|
7
|
|
(39,395)
|
|
(312)
|
Comprehensive
income
|
|
25,808
|
|
30,063
|
|
(3,826)
|
|
54,572
|
Less: comprehensive loss attributable to non-
controlling interest
|
|
(2)
|
|
—
|
|
(934)
|
|
—
|
Comprehensive income
attributable to Digital Turbine, Inc.
|
|
$
25,810
|
|
$
30,063
|
|
$
(2,892)
|
|
$
54,572
|
Net income per common
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.21
|
|
$
0.34
|
|
$
0.37
|
|
$
0.62
|
Diluted
|
|
$
0.19
|
|
$
0.31
|
|
$
0.35
|
|
$
0.57
|
Weighted-average common
shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
96,965
|
|
89,665
|
|
95,198
|
|
88,514
|
Diluted
|
|
104,151
|
|
97,582
|
|
102,640
|
|
96,151
|
Digital Turbine,
Inc. and Subsidiaries
|
|
Consolidated Balance
Sheets (in thousands, except par value and share
amounts)
|
|
|
|
|
|
|
|
|
March 31, 2022
|
|
March 31, 2021
|
ASSETS
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash equivalents
|
|
$
126,768
|
|
$
30,778
|
Restricted cash
|
|
394
|
|
340
|
Accounts receivable, net
|
|
263,139
|
|
61,985
|
Prepaid expenses and other current assets
|
|
20,570
|
|
4,282
|
Total current
assets
|
|
410,871
|
|
97,385
|
Property and equipment, net
|
|
31,086
|
|
13,050
|
Right-of-use assets
|
|
15,439
|
|
3,495
|
Deferred tax assets, net
|
|
—
|
|
12,963
|
Intangible assets, net
|
|
440,589
|
|
53,300
|
Goodwill
|
|
559,792
|
|
80,176
|
Other non-current assets
|
|
732
|
|
—
|
TOTAL
ASSETS
|
|
$ 1,458,509
|
|
$
260,369
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDER'S
EQUITY
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable
|
|
$
167,858
|
|
$
34,953
|
Accrued license fees and revenue share
|
|
95,170
|
|
46,196
|
Accrued compensation
|
|
28,775
|
|
9,817
|
Short-term debt
|
|
12,500
|
|
14,557
|
Other current liabilities
|
|
30,960
|
|
5,626
|
Acquisition purchase price liabilities
|
|
50,000
|
|
—
|
Total current
liabilities
|
|
385,263
|
|
111,149
|
Long-term debt, net of debt issuance costs
|
|
520,785
|
|
—
|
Deferred tax liabilities, net
|
|
19,976
|
|
—
|
Other non-current liabilities
|
|
16,270
|
|
4,108
|
Total
liabilities
|
|
942,294
|
|
115,257
|
Commitments and contingencies
(Note 13)
|
|
|
|
|
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; 97,921,826 issued and
97,163,701
outstanding at March 31, 2022; 90,685,553 issued and 89,949,847
outstanding at
March 31, 2021
|
|
10
|
|
10
|
Additional paid-in
capital
|
|
745,661
|
|
373,310
|
Treasury stock (758,125
shares at March 31, 2022 and March 31, 2021)
|
|
(71)
|
|
(71)
|
Accumulated other
comprehensive loss
|
|
(39,341)
|
|
(903)
|
Accumulated
deficit
|
|
(191,788)
|
|
(227,334)
|
Total stockholders' equity
attributable to Digital Turbine, Inc.
|
|
514,571
|
|
145,112
|
Non-controlling
interest
|
|
1,644
|
|
—
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
$ 1,458,509
|
|
$
260,369
|
Digital Turbine,
Inc. and Subsidiaries
|
|
Consolidated
Statements of Cash Flows (in thousands)
|
|
|
|
Three months ended March 31,
|
|
|
2022
|
|
2021
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flows from operating
activities:
|
|
|
|
|
Net income
|
|
20,141
|
|
30,056
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and amortization
|
|
16,506
|
|
2,052
|
Non-cash interest expense
|
|
215
|
|
39
|
Stock-based compensation expense
|
|
3,935
|
|
1,591
|
Loss on extinguishment of debt
|
|
—
|
|
255
|
Change in estimate of remaining contingent
consideration
|
|
800
|
|
332
|
Right-of-use asset
|
|
2,773
|
|
312
|
Deferred income taxes
|
|
(8,780)
|
|
(12,952)
|
Payment of contingent consideration in excess of amount
capitalized at
acquisition
|
|
—
|
|
(10,332)
|
Foreign exchange transaction gain
|
|
(459)
|
|
—
|
(Increase) / decrease in assets:
|
|
|
|
|
Accounts receivable,
gross
|
|
30,879
|
|
514
|
Allowance for doubtful
accounts
|
|
685
|
|
1,424
|
Prepaid expenses and other
current assets
|
|
2,556
|
|
(2,284)
|
Other non-current
assets
|
|
209
|
|
—
|
Increase / (decrease) in liabilities:
|
|
|
|
|
Accounts payable
|
|
(6,705)
|
|
(4,460)
|
Accrued license fees and
revenue share
|
|
(14,811)
|
|
9,643
|
Accrued compensation
|
|
(10,401)
|
|
1,195
|
Other current
liabilities
|
|
8,520
|
|
(2,552)
|
Other non-current
liabilities
|
|
(4,787)
|
|
(650)
|
Net cash provided by operating
activities
|
|
41,276
|
|
14,183
|
|
|
|
|
|
Cash flows from investing
activities
|
|
|
|
|
Business acquisitions, net of cash acquired
|
|
(530)
|
|
(20,636)
|
Capital expenditures
|
|
(7,588)
|
|
(2,659)
|
Net cash used in investing
activities
|
|
(8,118)
|
|
(23,295)
|
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
|
Proceeds from borrowings
|
|
179,147
|
|
15,000
|
Payment of debt issuance costs
|
|
(20)
|
|
(469)
|
Payment of contingent consideration
|
|
—
|
|
1
|
Payment of deferred business acquisition
consideration
|
|
(204,501)
|
|
—
|
Options and warrants exercised
|
|
1,486
|
|
1,282
|
Payment of withholding taxes for net share settlement of
equity awards
|
|
(1,018)
|
|
—
|
Repayment of debt obligations
|
|
(149)
|
|
(19,250)
|
Net cash used in financing
activities
|
|
(25,055)
|
|
(3,436)
|
Effect of exchange rate
changes on cash and cash equivalents and restricted cash
|
|
3,619
|
|
7
|
Net change in cash and cash equivalents and
restricted cash
|
|
11,722
|
|
(12,541)
|
Cash and cash
equivalents and restricted cash, beginning of period
|
|
115,440
|
|
43,659
|
Cash and cash
equivalents and restricted cash, end of period
|
|
$
127,162
|
|
$
31,118
|
PRO FORMA REVENUE
|
(in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
Year ended March 31,
|
|
|
2022
|
|
2021
|
|
% Change
|
|
2022
|
|
2021
|
|
% Change
|
On Device
Media
|
|
$
119,211
|
|
$
97,471
|
|
22 %
|
|
$
502,637
|
|
$
327,872
|
|
53 %
|
In App Media -
AdColony
|
|
40,357
|
|
39,407
|
|
2 %
|
|
181,482
|
|
157,784
|
|
15 %
|
In App Media -
Fyber
|
|
29,215
|
|
20,328
|
|
44 %
|
|
105,362
|
|
63,116
|
|
67 %
|
Elimination
|
|
(4,648)
|
|
(2,361)
|
|
97 %
|
|
(19,488)
|
|
(4,276)
|
|
356 %
|
Consolidated
|
|
$
184,135
|
|
$
154,845
|
|
19 %
|
|
$
769,993
|
|
$
544,496
|
|
41 %
|
GAAP INCOME FROM OPERATIONS TO NON-GAAP GROSS
PROFIT
|
(in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
Year ended March 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net revenue
|
|
$ 184,135
|
|
$
95,082
|
|
$ 747,596
|
|
$ 313,579
|
Income from
operations
|
|
27,425
|
|
15,954
|
|
92,241
|
|
59,209
|
Add-back
items:
|
|
|
|
|
|
|
|
|
Product development
|
|
12,129
|
|
6,292
|
|
52,723
|
|
20,119
|
Sales and marketing
|
|
16,237
|
|
4,932
|
|
63,309
|
|
19,304
|
General and administrative
|
|
33,612
|
|
11,844
|
|
138,837
|
|
33,940
|
Depreciation of software included in other direct
costs of revenue
|
|
836
|
|
387
|
|
3,060
|
|
2,357
|
Non-GAAP gross
profit
|
|
$
90,239
|
|
$
39,409
|
|
$ 350,170
|
|
$ 134,929
|
Non-GAAP gross profit
percentage
|
|
49 %
|
|
41 %
|
|
47 %
|
|
43 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP NET INCOME TO NON-GAAP ADJUSTED NET
INCOME
|
(in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended March 31,
|
|
Year ended March 31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income
|
|
$
20,141
|
|
$
30,056
|
|
$
35,569
|
|
$
54,884
|
Add-back
items:
|
|
|
|
|
|
|
|
|
Stock and stock option compensation
|
|
3,935
|
|
1,591
|
|
19,304
|
|
5,877
|
Amortization of intangibles
|
|
13,544
|
|
766
|
|
48,417
|
|
2,776
|
Adjustment to estimated earn-out liability
|
|
800
|
|
332
|
|
41,087
|
|
15,751
|
Tax
adjustment (1)
|
|
—
|
|
(11,154)
|
|
—
|
|
(11,154)
|
Transaction expenses
|
|
2,566
|
|
2,951
|
|
26,237
|
|
3,413
|
Non-GAAP adjusted net
income from continuing
operations
|
|
$
40,986
|
|
$
24,542
|
|
$ 170,614
|
|
$
71,547
|
Non-GAAP adjusted net
income per share from
continuing operations
|
|
$
0.39
|
|
$
0.25
|
|
$
1.66
|
|
$
0.74
|
Weighted-average common
shares outstanding, diluted
|
|
104,151
|
|
97,582
|
|
102,640
|
|
96,151
|
(1) Valuation allowance release
GAAP NET INCOME TO
NON-GAAP ADJUSTED EBITDA
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
Year ended March
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income from
continuing operations
|
|
$
20,141
|
|
$
30,056
|
|
$
35,569
|
|
$
54,884
|
Add-back
items:
|
|
|
|
|
|
|
|
|
Stock and stock option compensation
|
|
3,935
|
|
1,591
|
|
19,304
|
|
5,877
|
Depreciation and amortization
|
|
16,506
|
|
2,052
|
|
57,452
|
|
7,114
|
Interest expense, net
|
|
3,188
|
|
144
|
|
8,495
|
|
1,003
|
Other expense, net
|
|
151
|
|
95
|
|
749
|
|
146
|
Change in fair value of contingent liability
|
|
800
|
|
332
|
|
41,087
|
|
15,751
|
Loss on extinguishment of debt
|
|
—
|
|
452
|
|
—
|
|
452
|
Foreign exchange transaction gain
|
|
(459)
|
|
—
|
|
(2,062)
|
|
—
|
Income tax provision / (benefit)
|
|
3,604
|
|
(15,125)
|
|
8,403
|
|
(13,027)
|
Transaction expenses
|
|
2,566
|
|
2,951
|
|
26,237
|
|
3,413
|
Non-GAAP adjusted
EBITDA
|
|
$
50,432
|
|
$
22,548
|
|
$
195,234
|
|
$
75,613
|
GAAP CASH FLOW FROM
OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
2022
|
|
2021
|
Net cash provided by
operating activities
|
|
41,276
|
|
14,183
|
Capital
expenditures
|
|
(7,588)
|
|
(2,659)
|
Payment of
acquisition-related liabilities assumed
|
|
—
|
|
10,332
|
Transaction
expenses
|
|
2,566
|
|
2,951
|
Non-GAAP free cash flow
provided by continuing operations
|
|
$
36,254
|
|
$
24,807
|
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SOURCE Digital Turbine, Inc.