AUSTIN, Texas, Feb. 10, 2020 /PRNewswire/ -- Digital
Turbine, Inc. (Nasdaq: APPS) announced financial results for the
fiscal third quarter ended December
31, 2019. 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.
Recent Financial Highlights:
- Fiscal third quarter revenue was $36.0
million, marking a new all-time high for the Company, and
representing 18% growth when compared to the fiscal third quarter
of 2019.
- GAAP net income for the fiscal third quarter was $3.3 million, or $0.04 per share, as compared to a GAAP net loss
of $1.1 million, or ($0.01) per share for the fiscal third quarter of
2019. Non-GAAP adjusted net income1 for the fiscal
third quarter was $5.0 million, or
$0.05 per share, as compared to
Non-GAAP adjusted net income of $3.0
million, or $0.04 per share,
in the fiscal third quarter of 2019.
- Non-GAAP adjusted EBITDA2 for the fiscal third
quarter was $5.6 million, as compared
to Non-GAAP adjusted EBITDA of $3.8
million in the fiscal third quarter of 2019.
- GAAP cash provided by operating activities totaled $8.4 million in the fiscal third quarter.
Non-GAAP free cash flow3 totaled $7.0 million in the fiscal third quarter.
- GAAP gross margin was 39% for the fiscal third quarter of 2020,
as compared to a 35% GAAP gross margin in the fiscal third quarter
of 2019. Non-GAAP adjusted gross margin4 was 40%
for the fiscal third quarter of 2020, as compared to 37% in the
fiscal third quarter of 2019.
- The Company has surpassed 365 million total devices with Ignite
installed to date, including more than 40 million devices installed
during the fiscal third quarter.
- The Company signed a global partnership agreement with LG
Electronics, one of the world's largest and most innovative mobile
communications and consumer electronics companies.
- The Company's cash balance was $33.7
million as of December 31,
2019, as compared to the September
30, 2019 balance of $25.2
million. The Company had zero total debt as of
December 31, 2019.
"The December quarter was another highly productive quarter for
Digital Turbine across a number of fronts," said Bill Stone, CEO. "In terms of our financial
results for the quarter, I was pleased with our improved execution
and the resilient profitability demonstrated by our business
model. Despite substantially weaker-than-expected Android
device sales in November in our core U.S. market, we managed to
generate $5.6 million in EBITDA and
more than $7 million in free cash
flow during the quarter. We did a nice job controlling what
we could control as we set all-time records for revenue-per-device
("RPD"), revenue from new products, and revenue from our new
partners. In terms of our addressable market for devices, we are
continuing to make meaningful progress advancing our global device
footprint with key strategic partners such as Samsung, LG
Electronics, and Telefonica. We expect these and other new
partner rollouts, along with the increased promotion and adoption
of 5G, and the penetration into new device types such as
televisions, to be significant growth contributors in calendar 2020
and beyond."
Acquisition of Mobile Posse
Digital Turbine separately announced today that it has entered
into a definitive purchase agreement to acquire Mobile Posse, Inc.,
a mobile content discovery and advertising platform company
headquartered in Arlington, VA.,
for an estimated total of $66.0
million: (1) $41.5 million in
cash to be paid at closing, subject to purchase price adjustments,
and (2) an estimated earn-out of $24.5
million, to be paid in cash, based on Mobile Posse achieving
certain future target net revenues, less associated revenue shares,
over a twelve-month period following the closing, noting that the
earn-out amount is subject to change based on final results and
calculation. The initial cash consideration of $41.5 million will be funded by a combination of
cash on hand and debt. The acquisition of Mobile Posse, which is
fully consistent with Digital Turbine's expressed strategy to
provide a comprehensive media and advertising solution for our
operator and OEM partners while enriching the mobile experience for
end users by delivering highly relevant content to their
fingertips, is expected to close in the Company's fiscal fourth
quarter.
"We are extremely excited to announce the acquisition of Mobile
Posse today," said Bill Stone, CEO
of Digital Turbine. "We believe that this is a great
transaction for our partners, advertisers, employees and
shareholders. The early returns on our internally-developed Media
Hub product showcased exciting potential, thereby encouraging us to
profitably accelerate our growth efforts with these types of
content offerings, and Mobile Posse has a proven track record of
being one of the very best at providing users with richer media
content. With a similar-minded focus on promoting higher user
engagement and boosting advertising revenue for mobile operators
and OEMs, Mobile Posse's content discovery platform is a perfect
complement to our own existing platform offering. I look forward to
working with the highly skilled team at Mobile Posse to leverage
our respective strengths and partner relationships in an effort to
accelerate our mission to build the preeminent end-to-end mobile
content delivery platform offering and thereby create additional,
highly profitable, growth opportunities for Digital Turbine in the
coming years. We look forward to providing more specific
details regarding our financial expectations for Mobile Posse on
future calls after the transaction has closed. However, based
on preliminary unaudited financials, Mobile Posse is expected to
have generated more than $55 million
in total revenue and more than $10
million in EBITDA during calendar 2019. As such,
considering the current run-rate of recurring business at Mobile
Posse and the terms of consideration, we anticipate that the Mobile
Posse transaction will be meaningfully accretive to our EBITDA
following the transaction."
"Mobile Posse is excited to join the Digital Turbine team," said
Jon Jackson, CEO of Mobile
Posse. "As Bill referenced, the strategic rationale for the
acquisition is very strong. We believe that Mobile Posse's
content discovery platform and Digital Turbine's distribution and
relationships combine to create a powerful and
highly-differentiated industry solution. We look forward to
joining forces to make that promise a reality."
All historical financial information for Mobile Posse referenced
above is unaudited and is subject to adjustment based on completion
of the audit of Mobile Posse's financial statements, which
adjustments may be material. Investors therefore should not place
undue reliance on such unaudited financial information.
Following the closing of the acquisition, the Company intends to
file the financial statements of Mobile Posse and furnish pro forma
financial information as required by Securities and Exchange
Commission rules.
Fiscal Third Quarter Financial Results
Revenue for the third quarter of fiscal 2020 was $36.0 million, representing an increase of 18%
year-over-year. Revenue growth was constrained by
weaker-than-expected Android device sales in our core U.S. market
during the quarter. However, we continued to benefit from higher
revenue-per-device ("RPD") trends with our primary U.S.-based
carrier partners, reflecting strong advertiser demand for Dynamic
Installs and other, newer platform products. Revenue derived
via our International partners increased more than 150%
year-over-year and represented more than 10% of total revenue in
the quarter.
GAAP gross margin was 39% for the third quarter of fiscal 2020,
as compared to a 35% GAAP gross margin in the third quarter of
fiscal 2019. Non-GAAP adjusted gross margin4
increased to 40% for the third quarter of fiscal 2020, as compared
to 37% for the third quarter of fiscal 2019.
Net income from continuing operations for the third quarter of
fiscal 2020 was $3.3 million, or
$0.04 per share, as compared to a net
loss from continuing operations for the third quarter of fiscal
2019 of $1.1 million, or ($0.01) per share. Non-GAAP adjusted net
income1 for the third quarter of fiscal 2020 was
$5.0 million, or $0.05 per share, as compared to Non-GAAP adjusted
net income of $3.0 million, or
$0.04 per share, during the third
quarter of fiscal 2019.
Non-GAAP adjusted EBITDA2 was $5.6 million for the third quarter of fiscal
2020, as compared to Non-GAAP adjusted EBITDA of $3.8 million for the third quarter of fiscal
2019. The reconciliation between GAAP and Non-GAAP financial
results for all referenced periods is provided in a table
immediately following the Unaudited Consolidated Statement of Cash
Flows below.
Business Outlook
Based on information available as of February 10, 2020, the Company expects fourth
quarter fiscal 2020 revenue of between $33.2
million and $34.5 million, and
Non-GAAP adjusted EBITDA2 of between $3.5 million and $4.0
million, exclusive of any impact from the acquisition of
Mobile Posse.5
It is not reasonably practicable to provide a business outlook
for GAAP net income/(loss) from continuing operations because the
Company cannot reasonably estimate the changes in the fair value of
derivatives associated with outstanding warrants issued in
connection with the September 2016
convertible notes offering and stock-based compensation expense,
which are directly impacted by changes in the Company's stock price
or other items that are difficult to predict with
precision.
About Digital Turbine, Inc.
Digital Turbine innovates at the convergence of media and mobile
communications, connecting top mobile operators, OEMs and
publishers with app developers and advertisers worldwide. Its
comprehensive Mobile Delivery Platform powers
frictionless user acquisition and engagement, operational
efficiency and monetization opportunities. Digital Turbine's
technology platform has been adopted by more than 35 mobile
operators and OEMs worldwide, and has delivered more than one
billion app preloads for tens of thousands advertising campaigns.
The company is headquartered in Austin,
Texas, with global offices in Durham, Mumbai, San
Francisco, Singapore and
Tel Aviv. For additional
information visit www.digitalturbine.com.
Conference Call
Management will host a conference call
today at 4:30 p.m. ET to discuss its
third quarter financial results, provide operational updates on the
business and issue additional commentary on the Mobile Posse
acquisition. 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 17,
2020. The replay can be accessed by dialing 877-344-7529 in
the United States or 412-317-0088
from international locations, passcode 10136386.
The conference call will discuss guidance and other material
information.
Use of Non-GAAP Financial Measures
To supplement the
Company's condensed 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 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, changes in
the fair value of derivatives associated with warrants issued in
connection with the September 2016
convertible notes offering, and loss on extinguishment of
debt. 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), foreign exchange transaction loss,
income tax provision, depreciation and amortization, stock-based
compensation expense, the change in fair value of derivatives
associated with warrants issued in connection with the September 2016 convertible notes offering, other
expense, and loss on extinguishment of debt. Readers are
cautioned that Non-GAAP adjusted EBITDA should not be construed as
an alternative to net income/(loss) determined in accordance with
U.S. GAAP as an indicator of performance, which is the most
comparable measure under GAAP.
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.
5Due to the exclusion of Mobile Posse from the fourth
quarter fiscal 2020 forecasted revenue and Non-GAAP adjusted EBITDA
amounts, such amounts are forward-looking Non-GAAP financial
measures. The Company is unable, without unreasonable
efforts, to provide a reconciliation for fourth quarter fiscal 2020
forecasted revenue and Non-GAAP adjusted EBITDA to the comparable
forecast GAAP measures due to the level of unpredictability
associated with the certainty and timing of such acquisition. For
these same reasons, we are unable to assess the probable
significance of these excluded items.
Forward-Looking Statements
This news release
includes "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Statements in this
news release that are not statements of historical fact and that
concern future results from operations, financial position,
economic conditions, product releases and any other statement that
may be construed as a prediction of future performance or events,
including financial projections and growth in various products are
forward-looking statements that speak only as of the date made and
which involve known and unknown risks, uncertainties and other
factors which may, should one or more of these risks uncertainties
or other factors materialize, cause actual results to differ
materially from those expressed or implied by such statements.
These factors and risks include:
- risks associated with Ignite adoption among existing customers
(including the impact of possible delays with major carrier and OEM
partners in the roll out for mobile phones deploying Ignite)
- actual mobile device sales and sell-through where Ignite is
deployed is out of our control
- risks associated with new privacy laws, such as the European
Union's GDPR and similar laws which may require changes to our
development and user interface for certain functionality of our
Ignite product
- risks associated with the timing of Ignite software pushes to
the embedded bases of carrier and OEM partners
- risks associated with end user take rates of carrier and OEM
software pushes which include Ignite
- new customer adoption and time to revenue with new carrier and
OEM partners is subject to delays and factors out of our
control
- risks associated with fluctuations in the number of Ignite
slots across US carrier partners
- required customization and technical integration which may slow
down time to revenue notwithstanding the existence of a
distribution agreement
- risks associated with delays in major mobile phone launches, or
the failure of such launches to achieve the scale
- customer adoption that either we or the market may expect
- the difficulty of extrapolating monthly demand to quarterly
demand
- the challenges, given the Company's comparatively small size,
to expand the combined Company's global reach, accelerate growth
and create a scalable, low-capex business model that drives EBITDA
(as well as Adjusted EBITDA)
- ability as a smaller Company to manage international
operations
- varying and often unpredictable levels of orders; the
challenges inherent in technology development necessary to maintain
the Company's competitive advantage such as adherence to release
schedules and the costs and time required for finalization and
gaining market acceptance of new products
- changes in economic conditions and market demand
- rapid and complex changes occurring in the mobile
marketplace
- pricing and other activities by competitors
- derivative and warrant liabilities on our balance sheet will
fluctuate as our stock price moves and will also produce changes in
our statement of operations; these fluctuations and changes might
materially impact our reported GAAP financials in an adverse
manner, particularly if our stock price were to rise
- technology management risk as the Company needs to adapt to
complex specifications of different carriers and the management of
a complex technology platform given the Company's relatively
limited resources
- risks and uncertainties associated with the completion of the
acquisition of Mobile Posse, including the satisfaction of closing
conditions
- the impact on our operations and stock price if the acquisition
of Mobile Posse is not completed, and
- other risks including those described from time to time in
Digital Turbine's filings on Forms 10-K and 10-Q with the
Securities and Exchange Commission (SEC), press releases and other
communications.
You should not place undue reliance on these forward-looking
statements. The Company does not undertake to update
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
Investor Relations Contacts:
Brian Bartholomew
Digital Turbine
brian.bartholomew@digitalturbine.com
Digital Turbine,
Inc. and Subsidiaries
|
Consolidated
Statements of Operations and Comprehensive Income /
(Loss)
|
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
Net
revenues
|
$
36,016
|
|
$
30,411
|
Cost of
revenues
|
|
|
|
License fees and
revenue share
|
21,576
|
|
19,195
|
Other direct cost of
revenues
|
400
|
|
538
|
Total cost of
revenues
|
21,976
|
|
19,733
|
Gross
profit
|
14,040
|
|
10,678
|
Operating
expenses
|
|
|
|
Product
development
|
2,783
|
|
2,428
|
Sales and
marketing
|
2,815
|
|
1,962
|
General and
administrative
|
4,310
|
|
3,832
|
Total operating
expenses
|
9,908
|
|
8,222
|
Income from
operations
|
4,132
|
|
2,456
|
Interest and other
expense, net
|
|
|
|
Interest income /
(expense), net
|
59
|
|
(194)
|
Foreign exchange
transaction loss
|
-
|
|
(2)
|
Change in fair value
of convertible note embedded derivative liability
|
-
|
|
(1,476)
|
Change in fair value
of warrant liability
|
(870)
|
|
(1,651)
|
Loss on
extinguishment of debt
|
-
|
|
(10)
|
Other
expense
|
(19)
|
|
(43)
|
Total interest and
other expense, net
|
(830)
|
|
(3,376)
|
Income / (loss) from
operations before income taxes
|
3,302
|
|
(920)
|
Income tax
provision
|
41
|
|
216
|
Net income / (loss)
from operations, net of taxes
|
$
3,261
|
|
$
(1,136)
|
Income / (loss) from
discontinued operations
|
$
65
|
|
$
(212)
|
Net income / (loss) from
discontinued operations, net of taxes
|
$
65
|
|
$
(212)
|
Net income /
(loss)
|
$
3,326
|
|
$
(1,348)
|
Foreign currency
translation adjustment
|
(44)
|
|
(5)
|
Comprehensive income
/ (loss):
|
$
3,282
|
|
$
(1,353)
|
Basic and diluted net
income / (loss) per common share
|
|
|
|
Continuing
operations
|
$
0.04
|
|
$
(0.01)
|
Discontinued
operations
|
$
0.00
|
|
$
(0.00)
|
Net income /
(loss)
|
$
0.04
|
|
$
(0.01)
|
Weighted average
common shares outstanding, basic
|
85,876
|
|
77,645
|
Weighted average
common shares outstanding, diluted
|
92,472
|
|
77,645
|
Digital Turbine,
Inc. and Subsidiaries
|
Consolidated
Balance Sheets
|
|
(in thousands,
except par value and share amounts)
|
|
|
|
|
|
|
|
|
|
December 31,
2019
|
|
March 31,
2019
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
33,714
|
|
$
10,894
|
Restricted
cash
|
165
|
|
165
|
Accounts receivable,
net of allowances of $1,101 and $895, respectively
|
26,694
|
|
22,707
|
Prepaid expenses and
other current assets
|
2,141
|
|
1,331
|
Current assets held
for disposal
|
1,527
|
|
2,026
|
Total current
assets
|
64,241
|
|
37,123
|
Property and
equipment, net
|
5,116
|
|
3,430
|
Right-of-use
assets
|
2,029
|
|
-
|
Deferred tax
assets
|
-
|
|
40
|
Goodwill
|
42,268
|
|
42,268
|
TOTAL
ASSETS
|
$
113,654
|
|
$
82,861
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
20,820
|
|
$
14,912
|
Accrued license fees
and revenue share
|
16,264
|
|
16,205
|
Accrued
compensation
|
3,296
|
|
2,441
|
Warrant
liability
|
6,300
|
|
-
|
Other current
liabilities
|
4,285
|
|
826
|
Current liabilities
held for disposal
|
3,431
|
|
3,924
|
Total current
liabilities
|
54,396
|
|
38,308
|
Warrant
liability
|
-
|
|
8,013
|
Other non-current
liabilities
|
2,007
|
|
182
|
Total
liabilities
|
56,403
|
|
46,503
|
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
|
|
|
|
Common Stock at
$0.0001 par value: 200,000,000 shares authorized; 87,057,421 issued
and 86,322,965 outstanding at December 31, 2019; 82,354,940 issued
and 81,620,484 outstanding at March 31, 2019
|
10
|
|
10
|
Additional paid-in
capital
|
353,968
|
|
332,793
|
Treasury stock
(754,599 shares at December 31, 2019 and March 31, 2019)
|
(71)
|
|
(71)
|
Accumulated other
comprehensive loss
|
(720)
|
|
(356)
|
Accumulated
deficit
|
(296,036)
|
|
(296,118)
|
Total stockholders'
equity
|
57,251
|
|
36,358
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
113,654
|
|
$
82,861
|
Digital Turbine,
Inc. and Subsidiaries
|
Consolidated
Statements of Cash Flows
|
(in
thousands)
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
December 31,
2019
|
|
December 31,
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flows from
operating activities
|
|
|
|
Net income / (loss)
from continuing operations, net of taxes
|
$
3,261
|
|
$
(1,136)
|
Adjustments to
reconcile net income / (loss) to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
540
|
|
709
|
Change in allowance
for doubtful accounts
|
48
|
|
71
|
Loss on disposal of
fixed assets
|
(4)
|
|
-
|
Non-cash interest
expense
|
-
|
|
63
|
Stock-based
compensation
|
744
|
|
474
|
Stock-based
compensation for services rendered
|
173
|
|
157
|
Change in fair value
of convertible note embedded derivative liability
|
-
|
|
1,476
|
Change in fair value
of warrant liability
|
870
|
|
1,651
|
Loss on
extinguishment of debt
|
-
|
|
10
|
(Increase)/decrease
in assets:
|
|
|
|
Accounts
receivable
|
(1,439)
|
|
(3,460)
|
Deposits
|
-
|
|
(10)
|
Deferred tax
assets
|
7
|
|
216
|
Prepaid expenses and
other current assets
|
(743)
|
|
(584)
|
Right-of-use
asset
|
104
|
|
-
|
Increase/(decrease)
in liabilities:
|
|
|
|
Accounts
payable
|
(1,493)
|
|
(4,200)
|
Accrued license fees
and revenue share
|
4,634
|
|
5,773
|
Accrued
compensation
|
889
|
|
1,033
|
Other current
liabilities
|
904
|
|
377
|
Other non-current
liabilities
|
(105)
|
|
66
|
Net cash provided by
operating activties - continuing operations
|
8,390
|
|
2,686
|
Net cash provided by
/ (used in) operating activties - discontinued
operations
|
47
|
|
(338)
|
Net cash provided by
operating activties
|
$
8,437
|
|
$
2,348
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Capital
expenditures
|
$
(1,374)
|
|
$
(696)
|
Cash used in
investing activties - continuing operations
|
(1,374)
|
|
(696)
|
Cash provided by
investing activties - discontinued operations
|
-
|
|
41
|
Net cash used in
investing activities
|
$
(1,374)
|
|
$
(655)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Options and warrants
exercised
|
$
1,541
|
|
$
63
|
Net cash
provided by financing activities
|
$
1,541
|
|
$
63
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents and restricted
cash
|
$
(44)
|
|
$
(5)
|
|
|
|
|
Net change in cash
and cash equivalents and restricted cash
|
$
8,560
|
|
$
1,751
|
|
|
|
|
Cash and cash
equivalents and restricted cash, beginning of period
|
$
25,319
|
|
$
8,780
|
|
|
|
|
Cash and cash
equivalents and restricted cash, end of period
|
$
33,879
|
|
$
10,531
|
|
|
|
|
GAAP GROSS MARGIN
TO NON-GAAP GROSS MARGIN
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Continuing
Operations:
|
|
|
|
|
Revenue
|
|
$
36,016
|
|
$
30,411
|
Gross
profit
|
|
$
14,040
|
|
$
10,678
|
Gross margin
percentage
|
|
39.0%
|
|
35.1%
|
Add back
items:
|
|
|
|
|
Amortization of
intangibles
|
|
$
-
|
|
$
335
|
Depreciation of
software
|
|
$
400
|
|
$
204
|
Non-GAAP gross profit
from continuing operations
|
|
$
14,440
|
|
$
11,217
|
Non-GAAP gross margin
percentage from continuing operations
|
|
40.1%
|
|
36.9%
|
GAAP NET INCOME /
(LOSS) TO NON-GAAP ADJUSTED NET INCOME
|
|
(in
thousands)
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Continuing
Operations:
|
|
|
|
|
Net income / (loss)
from continuing operations
|
|
$
3,261
|
|
$
(1,136)
|
Add back
items:
|
|
|
|
|
Stock and stock
option compensation
|
|
917
|
|
631
|
Amortization of
intangibles
|
|
-
|
|
335
|
Change in fair value
of convertible note
embedded derivative and warrant liability
|
|
870
|
|
3,127
|
Loss on
extinguishment of debt
|
|
-
|
|
10
|
Non-GAAP adjusted net
income from continuing operations
|
|
$
5,048
|
|
$
2,967
|
|
|
|
|
|
Non-GAAP adjusted net
income per share from continuing operations
|
|
$
0.05
|
|
$
0.04
|
Weighted average
common shares outstanding, diluted
|
|
92,472
|
|
77,645
|
GAAP NET INCOME /
(LOSS) TO NON-GAAP ADJUSTED EBITDA
|
|
(in
thousands)
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
|
December 31,
2019
|
|
December 31,
2018
|
Continuing
Operations:
|
|
(Unaudited)
|
|
(Unaudited)
|
Net income / (loss)
from continuing operations
|
|
$
3,261
|
|
$
(1,136)
|
Add back
items:
|
|
|
|
|
Stock and stock
option compensation
|
|
917
|
|
631
|
Amortization of
intangibles
|
|
-
|
|
335
|
Depreciation
expense
|
|
540
|
|
374
|
Interest income /
(expense), net
|
|
(59)
|
|
194
|
Other
expense
|
|
19
|
|
43
|
Change in fair value
of convertible note
embedded derivative and warrant liability
|
|
870
|
|
3,127
|
Loss on
extinguishment of debt
|
|
-
|
|
10
|
Foreign exchange
transaction loss
|
|
-
|
|
2
|
Income tax
provision
|
|
41
|
|
216
|
Non-GAAP adjusted
EBITDA from continuing operations
|
|
$
5,589
|
|
$
3,796
|
GAAP CASH FLOW
FROM OPERATING ACTIVITIES FROM CONTINUING OPERATIONS TO NON-GAAP
FREE CASH FLOW FROM CONTINUING OPERATIONS
|
|
(in
thousands)
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Net cash provided by
operating activities from continuing operations
|
|
$
8,390
|
|
$
2,686
|
Capital
expenditures
|
|
(1,374)
|
|
(696)
|
|
|
|
|
|
Non-GAAP free cash
flow provided by continuing operations
|
|
$
7,016
|
|
$
1,990
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/digital-turbine-reports-fiscal-2020-third-quarter-results-and-announces-definitive-purchase-agreement-to-acquire-mobile-posse-301002127.html
SOURCE Digital Turbine, Inc.