AUSTIN, Texas, June 3, 2019 /PRNewswire/ -- Digital
Turbine, Inc. (Nasdaq: APPS) announced financial results for the
fiscal full year and quarter ended March
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 Highlights:
- Fiscal fourth quarter revenue was $27.2
million, representing 30% growth when compared to the fiscal
fourth quarter of 2018. Fiscal year 2019 revenue totaled
$103.6 million, up 39% as compared to
fiscal year 2018 revenue.
- GAAP net loss for the fiscal fourth quarter was $6.8 million, or ($0.09) per share, as compared to a GAAP net loss
of $4.2 million, or ($0.06) per share for the fiscal fourth quarter
of 2018. Non-GAAP adjusted net income1 for the fiscal
fourth quarter was $2.4 million, or
$0.03 per share, as compared to a
Non-GAAP adjusted net loss of $0.6
million, or ($0.01) per share
in the fourth quarter of fiscal 2018.
- Non-GAAP adjusted EBITDA2 for the fiscal fourth
quarter was $3.3 million, as compared
to Non-GAAP adjusted EBITDA of approximately zero in the fourth
quarter of fiscal 2018. Non-GAAP adjusted EBITDA for full fiscal
year 2019 totaled $8.9 million.
- GAAP cash provided by operating activities totaled $2.4 million in the fiscal fourth quarter.
Non-GAAP free cash flow3 totaled $1.9 million in the fiscal fourth quarter.
- GAAP gross margin was 40% for the fourth quarter of fiscal
2019, as compared to a 33% GAAP gross margin in the fourth quarter
of fiscal 2018. Non-GAAP adjusted gross margin4 was 42%
for the fourth quarter of fiscal 2019, as compared to 36% in the
fourth quarter of fiscal 2018 and 37% in the third quarter of
fiscal 2019.
- The Company has surpassed 260 million total devices with Ignite
installed to date, including more than 29 million devices installed
during the March quarter.
- U.S. revenue-per-device ("RPD") increased by 27%, respectively,
when compared to the fiscal fourth quarter of 2018, highlighting
continuing strong demand among advertisers for the Digital Turbine
platform.
- The Company ended fiscal 2019 with a cash balance of
$10.9 million and zero total debt,
following the conversion of all remaining convertible notes
previously outstanding and full repayment of short-term debt.
"Fiscal year 2019 was a breakout year for Digital Turbine, with
strong growth on both the top-line and the bottom-line," said
Bill Stone, CEO. "During the
March quarter, we grew revenues 30% year-over-year and generated
more than $3 million in Adjusted
EBITDA despite slower smartphone sales in the U.S. during the
period. Revenue growth in the quarter was primarily driven by
strong revenue-per-device (RPD) with our U.S. partners. Our average
RPD with U.S. partners, a key health metric for the business,
increased 27% during the March quarter, a testament to the strength
of advertiser demand for access to the increasingly valuable device
homescreen. We were also very pleased with the profitability
metrics realized during the quarter. Notable gross margin expansion
and continuing operating leverage led to markedly improved Adjusted
EBITDA and Non-GAAP net income during the quarter."
"We began fiscal 2019 with a clear primary objective in mind -
to firmly establish a scalable, high-growth, sustainably-profitable
platform business. Strong demand for an enhanced Digital Turbine
platform from carrier, OEM and advertiser partners enabled us to
achieve this goal, as we generated nearly $9
million in total adjusted EBITDA during fiscal year 2019
while developing several promising new products and adding valuable
new partners such as Samsung that provide strategic catalysts for
meaningful future growth. Importantly, we also exited fiscal 2019
with a vastly improved balance sheet with approximately
$11 million in cash and zero
remaining debt."
Mr. Stone concluded, "As we embark on fiscal 2020 and page
forward to the next stage of growth for Digital Turbine, our
primary objective is to efficiently scale the platform. On the
business development side, we are actively recruiting additional
partners to the platform, with an added emphasis on large
international carriers and OEMs who can help to significantly
expand our addressable market opportunity overseas. On the product
development side, we are continuing to innovate and enact new
product features that foster improved levels of conversion and
engagement for advertisers, while providing a richer, more
pertinent value-added experience for end users. We look forward to
providing updates on our progress toward these key objectives as
the year plays out. We believe that by continuing to deliver
attractive returns for our many platform constituents, we can
expect to deliver attractive returns for our investors."
Fourth Quarter Fiscal 2019 Financial Results
Revenue for the fourth quarter of fiscal 2019 was $27.2 million, representing an increase of 30%
year-over-year. Revenue growth was primarily driven by higher
revenue-per-device with our large U.S.-based carrier partners,
reflecting strong baseline advertiser demand for our platform
products. Revenue growth during the March quarter was also
supplemented by 129% year-over-year growth in revenue derived from
international partners and Open Market devices.
GAAP gross margin was 40% for the fourth quarter of fiscal 2019,
as compared to a 33% GAAP gross margin in the fourth quarter of
fiscal 2018. Non-GAAP adjusted gross margin4
increased to 42% for the fourth quarter of fiscal 2019, as compared
to 36% for the fourth quarter of fiscal 2018.
Net loss from continuing operations for the fourth quarter of
fiscal 2019 was $6.8 million, or
($0.09) per share, as compared to a
net loss from continuing operations for the fiscal fourth quarter
of 2018 of $4.2 million, or
($0.06) per share. Non-GAAP
adjusted net income1 for the fourth quarter of fiscal
2019 was $2.4 million, or
$0.03 per share, as compared to a
Non-GAAP adjusted net loss of $0.6
million, or ($0.01) per share,
during the fiscal fourth quarter of 2018.
Non-GAAP adjusted EBITDA2 was $3.3 million for the fourth quarter of fiscal
2019, as compared to Non-GAAP adjusted EBITDA of approximately zero
for the fourth quarter of fiscal 2018. The reconciliation between
GAAP and Non-GAAP financial results for all referenced periods is
provided in a table immediately following the Unaudited
Consolidated Statements of Operations and Comprehensive
Income/(Loss) below.
Full Year Fiscal 2019 Financial Results
Revenue for fiscal 2019 totaled $103.6
million, representing an increase of 39% year-over-year.
Revenue growth during fiscal 2019 was attributable to significantly
higher revenue-per-device with our large U.S.-based carrier
partners, as well as incremental contributions from international
partners and other new partners that launched on the platform
during the year.
GAAP gross margin was 34% for fiscal 2019, as compared to the
34% GAAP gross margin in fiscal 2018. Non-GAAP adjusted gross
margin4 was 36% for fiscal 2019, as compared to 36% in
fiscal 2018.
Net loss from continuing operations for fiscal 2019 was
$4.3 million, or ($0.06) per share, as compared to a net loss from
continuing operations for fiscal 2018 of $19.7 million, or ($0.28) per share. Non-GAAP adjusted net
income1 for fiscal 2019 was $5.9
million, or $0.08 per share,
as compared to a Non-GAAP adjusted net loss of $3.6 million, or ($0.05) per share, during fiscal 2018.
Non-GAAP adjusted EBITDA2 was $8.9 million for fiscal 2019, as compared to a
Non-GAAP adjusted EBITDA loss of $0.2
million in fiscal 2018. The reconciliation between GAAP and
Non-GAAP financial results for all referenced periods is provided
in a table immediately following the Unaudited Consolidated
Statements of Operations and Comprehensive Income/(Loss) below.
Business Outlook
Based on information available as of June
3, 2019, the Company expects first quarter fiscal 2020
revenue of between $28.0 million and
$28.5 million, and non-GAAP adjusted
EBITDA2 of between $2.2
million and $2.6
million. 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 the
fair value of derivatives associated with warrants issued in
connection with the September 2016
convertible notes offering, which are directly impacted by changes
in the Company's stock price.
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 30 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 fourth quarter and
fiscal 2019 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 10,
2019. The replay can be accessed by dialing 877-344-7529 in
the United States or 412-317-0088
from international locations, passcode 10131961.
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 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/(loss) 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/(loss) 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:
interest expense, foreign exchange transaction loss/(gain), income
tax provision/(benefit), 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 a 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 / (loss) 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:
- 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
- risks associated with the level of our secured and unsecured
indebtedness
- ability to comply with financial covenants in outstanding
indebtedness
- 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 income statement; 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, 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 Loss
|
|
|
|
|
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
12 Months
Ended
|
|
12 Months
Ended
|
|
March 31,
2019
|
|
March 31,
2018
|
|
March 31,
2019
|
|
March 31,
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
Net
revenues
|
$
27,192
|
|
$
20,961
|
|
$
103,569
|
|
$
74,751
|
Cost of
revenues
|
|
|
|
|
|
|
|
License fees and
revenue share
|
15,768
|
|
13,623
|
|
65,981
|
|
47,967
|
Other direct cost of
revenues
|
470
|
|
453
|
|
2,023
|
|
1,729
|
Total cost of
revenues
|
16,238
|
|
14,076
|
|
68,004
|
|
49,696
|
Gross
profit
|
10,954
|
|
6,885
|
|
35,565
|
|
25,055
|
Operating
expenses
|
|
|
|
|
|
|
|
Product
development
|
2,973
|
|
2,118
|
|
11,147
|
|
9,653
|
Sales and
marketing
|
2,501
|
|
2,043
|
|
8,212
|
|
6,087
|
General and
administrative
|
3,546
|
|
4,063
|
|
12,761
|
|
15,124
|
Total operating
expenses
|
9,020
|
|
8,224
|
|
32,120
|
|
30,864
|
Income / (loss) from
operations
|
1,934
|
|
(1,339)
|
|
3,445
|
|
(5,809)
|
Interest and other
expense, net
|
|
|
|
|
|
|
|
Interest expense,
net
|
(472)
|
|
(252)
|
|
(1,120)
|
|
(2,067)
|
Foreign exchange
transaction gain / (loss)
|
(4)
|
|
(87)
|
|
3
|
|
(148)
|
Change in fair value
of convertible note embedded derivative liability
|
(2,104)
|
|
(1,249)
|
|
(1,008)
|
|
(7,559)
|
Change in fair value
of warrant liability
|
(5,720)
|
|
(682)
|
|
(4,875)
|
|
(3,208)
|
Loss on
extinguishment of debt
|
(406)
|
|
(619)
|
|
(431)
|
|
(1,785)
|
Other income /
(expense)
|
322
|
|
2
|
|
153
|
|
(72)
|
Total interest and
other expense, net
|
(8,384)
|
|
(2,887)
|
|
(7,278)
|
|
(14,839)
|
Loss from continuing
operations before income taxes
|
(6,450)
|
|
(4,226)
|
|
(3,833)
|
|
(20,648)
|
Income tax benefit /
(provision)
|
312
|
|
(14)
|
|
469
|
|
(951)
|
Net loss from
continuing operations, net of taxes
|
(6,762)
|
|
(4,212)
|
|
(4,302)
|
|
(19,697)
|
Loss from
discontinued operations
|
(96)
|
|
(34,213)
|
|
(1,708)
|
|
(33,160)
|
Net loss from discontinued
operations, net of taxes
|
(96)
|
|
(34,213)
|
|
(1,708)
|
|
(33,160)
|
Net loss from
operations, net of taxes
|
$
(6,858)
|
|
$
(38,425)
|
|
$
(6,010)
|
|
$
(52,857)
|
Foreign currency
translation adjustment
|
(28)
|
|
1
|
|
(31)
|
|
(4)
|
Comprehensive
loss:
|
$
(6,886)
|
|
$
(38,424)
|
|
$
(6,041)
|
|
$
(52,861)
|
Basic and diluted net
loss per common share
|
|
|
|
|
|
|
|
Continuing
operations
|
$
(0.09)
|
|
$
(0.06)
|
|
$
(0.06)
|
|
$
(0.28)
|
Discontinued
operations
|
$
-
|
|
$
(0.46)
|
|
$
(0.02)
|
|
$
(0.47)
|
Net loss
|
$
(0.09)
|
|
$
(0.52)
|
|
$
(0.08)
|
|
$
(0.75)
|
Weighted average
common shares outstanding, basic
|
79,404
|
|
75,160
|
|
77,440
|
|
70,263
|
Weighted average
common shares outstanding, diluted
|
79,404
|
|
75,160
|
|
77,440
|
|
70,263
|
|
|
|
|
|
|
|
|
Digital Turbine,
Inc. and Subsidiaries
|
|
|
|
Consolidated
Balance Sheets
|
|
|
|
|
|
|
|
(in thousands,
except par value and share amounts)
|
|
|
|
|
|
|
|
|
|
March 31,
2019
|
|
March 31,
2018
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
10,894
|
|
$
12,720
|
Restricted
cash
|
165
|
|
331
|
Accounts receivable,
net of allowances of $895 and $512, respectively
|
22,707
|
|
17,050
|
Prepaid expenses and
other current assets
|
1,331
|
|
901
|
Current assets held
for disposal
|
2,026
|
|
8,753
|
Total current
assets
|
37,123
|
|
39,755
|
Property and
equipment, net
|
3,430
|
|
2,757
|
Deferred tax
assets
|
40
|
|
596
|
Intangible assets,
net
|
-
|
|
1,231
|
Goodwill
|
42,268
|
|
42,268
|
TOTAL
ASSETS
|
$
82,861
|
|
$
86,607
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
14,912
|
|
$
19,895
|
Accrued license fees
and revenue share
|
16,205
|
|
8,232
|
Accrued
compensation
|
2,441
|
|
2,966
|
Short-term debt, net
of debt issuance costs of $0 and $205, respectively
|
-
|
|
1,445
|
Other current
liabilities
|
826
|
|
1,142
|
Current liabilities
held for disposal
|
3,924
|
|
12,726
|
Total current
liabilities
|
38,308
|
|
46,406
|
Convertible notes,
net of debt issuance costs and discounts of $0 and $1,827,
respectively
|
-
|
|
3,873
|
Convertible note
embedded derivative liability
|
-
|
|
4,676
|
Warrant
liability
|
8,013
|
|
3,980
|
Other non-current
liabilities
|
182
|
|
-
|
Total
liabilities
|
46,503
|
|
58,935
|
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;
82,354,940 issued and 81,620,484 outstanding at March 31, 2019;
76,843,278 issued and 76,108,822 outstanding at March 31,
2018
|
10
|
|
10
|
Additional paid-in
capital
|
332,793
|
|
318,066
|
Treasury stock
(754,599 shares at March 31, 2019 and March 31, 2018)
|
(71)
|
|
(71)
|
Accumulated other
comprehensive loss
|
(356)
|
|
(325)
|
Accumulated
deficit
|
(296,118)
|
|
(290,108)
|
Total stockholders'
equity
|
36,358
|
|
27,672
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
82,861
|
|
$
86,607
|
Digital Turbine,
Inc. and Subsidiaries
|
|
Consolidated
Statement of Cash Flows
|
|
(in
thousands)
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
March 31,
2019
|
|
March 31,
2018
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flows from
operating activities
|
|
|
|
Net loss from
continuing operations, net of taxes
|
$
(6,762)
|
|
$
(4,212)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
621
|
|
702
|
Change in allowance
for doubtful accounts
|
(42)
|
|
68
|
Non-cash interest
expense
|
547
|
|
143
|
Stock-based
compensation
|
595
|
|
519
|
Stock-based
compensation for services rendered
|
155
|
|
100
|
Change in fair value
of convertible note embedded derivative liability
|
2,104
|
|
1,249
|
Change in fair value
of warrant liability
|
5,720
|
|
682
|
Loss on
extinguishment of debt
|
406
|
|
618
|
(Increase)/decrease
in assets:
|
|
|
|
Accounts
receivable
|
1,586
|
|
5,636
|
Deferred tax
assets
|
399
|
|
-
|
Prepaid expenses and
other current assets
|
131
|
|
(249)
|
Increase/(decrease)
in liabilities:
|
|
|
|
Accounts
payable
|
(7,640)
|
|
1,075
|
Accrued license fees
and revenue share
|
4,715
|
|
1,547
|
Accrued
compensation
|
867
|
|
90
|
Other current
liabilities
|
(1,088)
|
|
(246)
|
Other non-current
liabilities
|
127
|
|
(67)
|
Net cash provided by
operating activties - continuing operations
|
2,441
|
|
7,655
|
Net cash used in
operating activties - discontinued operations
|
(265)
|
|
(1,175)
|
Net cash provided by
operating activties
|
$
2,176
|
|
$
6,480
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Capital
expenditures
|
$
(533)
|
|
$
(772)
|
Cash used in
investing activties - continuing operations
|
(533)
|
|
(772)
|
Cash used in
investing activties - discontinued operations
|
-
|
|
(50)
|
Net cash used in
investing activities
|
$
(533)
|
|
$
(822)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Options
exercised
|
$
511
|
|
$
78
|
Repayment of debt
obligations
|
(1,600)
|
|
(250)
|
Warrants
exercised
|
-
|
|
350
|
Net cash provided by
/ (used in) financing activities
|
$
(1,089)
|
|
$
178
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents and restricted
cash
|
$
(26)
|
|
$
1
|
|
|
|
|
Net change in cash
and cash equivalents and restricted cash
|
$
528
|
|
$
5,837
|
|
|
|
|
Cash and cash
equivalents and restricted cash, beginning of period
|
$
10,531
|
|
$
6,883
|
|
|
|
|
Cash and cash
equivalents and restricted cash, end of period
|
$
11,059
|
|
$
12,720
|
GAAP GROSS MARGIN
TO NON-GAAP GROSS MARGIN
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
12 Months
Ended
|
|
12 Months
Ended
|
|
|
March 31,
2019
|
|
March 31,
2018
|
|
March 31,
2019
|
|
March 31,
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Continuing
Operations:
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
27,192
|
|
$
20,960
|
|
$
103,569
|
|
$
74,751
|
Gross
profit
|
|
$
10,954
|
|
$
6,885
|
|
$
35,565
|
|
$
25,055
|
Gross margin
percentage
|
|
40%
|
|
33%
|
|
34%
|
|
34%
|
Add back
items:
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
|
$
224
|
|
$
453
|
|
$
1,231
|
|
$
1,416
|
Depreciation of
software
|
|
$
148
|
|
$
202
|
|
$
696
|
|
$
313
|
Non-GAAP gross profit
from continuing operations
|
|
$
11,326
|
|
$
7,540
|
|
$
37,491
|
|
$
26,785
|
Non-GAAP gross margin
percentage from continuing operations
|
|
42%
|
|
36%
|
|
36%
|
|
36%
|
GAAP NET LOSS TO
NON-GAAP ADJUSTED NET INCOME / (LOSS)
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
12 Months
Ended
|
|
12 Months
Ended
|
|
|
March 31,
2019
|
|
March 31,
2018
|
|
March 31,
2019
|
|
March 31,
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Continuing
Operations:
|
|
|
|
|
|
|
|
|
Net loss from
continuing operations
|
|
$
(6,763)
|
|
$
(4,212)
|
|
$
(4,302)
|
|
$
(19,697)
|
Add back
items:
|
|
|
|
|
|
|
|
|
Stock and stock
option compensation
|
|
750
|
|
619
|
|
2,531
|
|
2,978
|
Amortization of
intangibles
|
|
224
|
|
453
|
|
1,231
|
|
1,416
|
Change in fair value
of convertible note
embedded derivative and warrant liability
|
|
7,824
|
|
1,931
|
|
5,883
|
|
10,767
|
Loss on
extinguishment of debt
|
|
406
|
|
619
|
|
431
|
|
1,785
|
Non-recurring
severance expense
|
|
-
|
|
-
|
|
145
|
|
-
|
Tax adjustment
(1)
|
|
-
|
|
-
|
|
-
|
|
(849)
|
Non-GAAP adjusted net
income / (loss) from continuing operations
|
|
$
2,441
|
|
$
(590)
|
|
$
5,919
|
|
$
(3,601)
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net
income / (loss) per share from continuing operations
|
|
$
0.03
|
|
$
(0.01)
|
|
$
0.08
|
|
$
(0.05)
|
Weighted average
common shares outstanding, basic
|
|
79,404
|
|
75,160
|
|
77,440
|
|
70,263
|
Weighted average
common shares outstanding, diluted
|
|
79,404
|
|
75,160
|
|
77,440
|
|
70,263
|
|
(1) Non-cash
charges to the tax provision / (benefit) are largely due to updates
resulting from finalization of a transfer pricing
study
|
GAAP NET LOSS TO
NON-GAAP ADJUSTED EBITDA
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
12 Months
Ended
|
|
12 Months
Ended
|
|
|
March 31,
2019
|
|
March 31,
2018
|
|
March 31,
2019
|
|
March 31,
2018
|
Continuing
Operations:
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Net loss from
continuing operations
|
|
$
(6,763)
|
|
$
(4,212)
|
|
$
(4,302)
|
|
$
(19,697)
|
Add back
items:
|
|
|
|
|
|
|
|
|
Stock and stock
option compensation
|
|
750
|
|
619
|
|
2,531
|
|
2,978
|
Amortization of
intangibles
|
|
224
|
|
453
|
|
1,231
|
|
1,416
|
Depreciation
expense
|
|
396
|
|
248
|
|
1,535
|
|
1,244
|
Interest expense,
net
|
|
472
|
|
252
|
|
1,120
|
|
2,067
|
Other
income
|
|
(316)
|
|
(2)
|
|
(153)
|
|
72
|
Change in fair value
of convertible note
embedded derivative and warrant liability
|
|
7,824
|
|
1,931
|
|
5,883
|
|
10,767
|
Loss on
extinguishment of debt
|
|
406
|
|
619
|
|
440
|
|
1,785
|
Non-recurring
severance expense
|
|
-
|
|
-
|
|
145
|
|
-
|
Foreign exchange
transaction loss / (gain)
|
|
4
|
|
87
|
|
(3)
|
|
148
|
Income tax provision
/ (benefit)
|
|
312
|
|
(16)
|
|
469
|
|
(951)
|
Non-GAAP adjusted
EBITDA from continuing operations
|
|
$
3,309
|
|
$
(21)
|
|
$
8,896
|
|
$
(173)
|
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
|
|
|
March 31,
2019
|
|
March 31,
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Net cash provided by
operating activities from continuing operations
|
|
$
2,441
|
|
$
7,655
|
Capital
expenditures
|
|
(533)
|
|
(772)
|
|
|
|
|
|
Non-GAAP free cash
flow provided by continuing operations
|
|
$
1,908
|
|
$
6,883
|
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SOURCE Digital Turbine, Inc.