AUSTIN, Texas, Aug. 6, 2015/ PRNewswire/– Digital Turbine, Inc. (Nasdaq: APPS), the Business empowering operators and Initial Devices Manufacturers (OEMs) around the globe with end-to-end mobile options, announced monetary outcomes for the financial 2016 very first quarter ended June 30, 2015.
- Very first quarter monetary 2016 earnings of $18.7 million at upper end of outlook variety enhanced 83 % on an as reported basis, and 16 % on pro forma, sequential bases, respectively
- Attained $4 million in revenue in the second half of June, with DT Media profits, leaving out expert services, enhancing approximately 120 % from the first half of April, even offered Aprils pent-up need for new high profile gadget launches, a sign of the source of the demand in the quarter
- Non-GAAP adjusted gross margin of 24 % expanded around 600 basis points on as reported, and roughly 500 basis points on pro forma, consecutive bases, respectively
- Total operating expenditures reduced more than 5 % on an as reported basis, regardless of the inclusion of a complete quarter of Appias cost structure, and reduced 12 % on a pro forma basis sequentially
- DT IQTM launched on 6 T-Mobile devices, all Vodafone Australia, DT IgniteTM in multiple European nations
- AddedContributed to Russell 3000 and Russell Global Indexes
- Repeating FY2016 guidance
First Quarter 2016 Financial Outcomes
Due to the fact that the Appia acquisition closed on March 6, 2015, consolidated monetary outcomes for the 4th monetary 2015 quarter ended March 31, 2015 consisted of only 26 days of Appias operations and are not directly equivalent to very first quarter monetary 2016 outcomes ended June 30, 2015. For that reason, this release presents sequential contrasts on both an as reported basis and on a pro forma basis as if Appia had actually been had for the whole of 4th quarter monetary 2015. Additionally, all comparisons are made to the previous consecutive quarter unless particularly noted. We thinkOur team believe a sequential contrast to be a better indication for the performance of its company provided considerable operational distinctions in between our Company today and at this time last year.
Income for the fiscal 2016 first quarter, increased 83 % to $18.7 million, compared with $10.2 million for the financial 2015 fourth quarter. The impact of internationalforex was $0.1 million as a result of the stabilization of the $AUD in the quarter. On a pro forma basis, as if Appia, Inc. had been owned for the whole fourth quarter of fiscal 2015, revenue for the fiscal 2016 very first quarter increased 16 % compared with 4th quarter financial 2015 profits of $16.1 million.
We had a promising quarter for our DT Media business, with earnings ramping month-to-month in the quarter and all operating metrics moving in the ideal instructions, stated Bill Stone, CEO. Earnings from DT Media more than tripled sequentially on a pro forma basis through both development in profits per device and development in number of gadgets, and, leaving out expert services, grew 120 % in the back half of June from the front half of April, even given Aprils pent-up need for brand-new high profile device launches. This growth was driven by the deployment of DT Fire up across a number of vital providers new gadgets in the quarter and our effective effort to accrete yield per gadget, balanced out to a degree by lower than anticipated sell through of a variety of flagship gadgets. DT IQ is likewise building a foundation this fiscal year in prep work for growth next year, introducing on six gadgets with T-Mobile in the quarter as well as continued deployment throughout Vodafone Australia. This successful ramp in Marketing income in turn drove non-GAAP adjusted gross margin up almost 6 percentage points on an as reported basis. Appia Core income likewise enhanced throughout the quarter as core network need continued with additional spend by advertisers to the end of the quarter. Our Material company also grew as we continued to add customers, services and locations. Last, our operating take advantage of expanded through sequential declines in costs, leading to improved Adjusted EBITDA performance from the prior quarter.
Mr. Stone continued, Key to our growth, in addition to expanding our product footprint and optimizing our revenue per gadget gone over above, is increasing our distribution footprint. We have actually additionally expanded our distribution and our advertiser customer relationships worldwide. We have started working with brand-new worldwide carrier partners, launched DT Media items with new providers, broadened our relationships with OEMs, and brought-on brand-new advertising partners and companies with extra need to fulfill this growing supply of distribution. These are the levers that will fuel extra top-line growth this monetary year.
Non-GAAP adjusted gross revenue and non-GAAP adjusted gross margin, which leaves out the amortization of intangibles, were $4.5 million and approximately 24 %, respectively, for the first quarter of financial 2016, enhancing 143 % in dollars and approximately 600 basis points compared with $1.8 million and around 18 %, respectively, on an as reported basis, for the 4th quarter of fiscal 2015. This sequential comparison was mostly driven by the increasing contribution from higher-margin Advertising revenue. Very first quarter fiscal 2016 non-GAAP adjusted gross revenue and non-GAAP adjusted gross margin increased 45 % and roughly 500 basis points, respectively, from $3.1 million and approximately 19 %, respectively, on a pro forma basis for the 4th quarter fiscal 2015.
GAAP gross profit increased 144 % to $2.3 million (12 % GAAP gross margin) for the first quarter of fiscal 2016, versus $0.9 million (9 % GAAP gross margin) on an as reported basis for the monetary 2015 4th quarter. Driving this sequential comparison were the increasing contribution from higher-margin Marketing revenue and the addition of a full quarter of Appia. GAAP gross earnings for the first quarter of financial 2016 enhanced 143 % as compared with pro forma gross revenue of $0.9 million (6 % pro forma gross margin) for the monetary 2015 4th quarter.
Overall operating expendituresbusiness expenses for the first quarter of monetary 2016 decreased more than 5 % to $9.4 million compared to $10.0 million on an as reported basis for the 4th quarter of monetary 2015. The decrease in overall operating expendituresbusiness expenses was driven by lower stock based compensation and one-time items balanced out by the addition of a complete quarter of Appias costs. Total operating expendituresbusiness expenses for the very first quarter omitting stock based payment reduced 12 % from pro forma fourth quarter financial 2015 operating costs excluding stock based payment and one time and acquisition associated expenditures.
Bottom line from continuing operations for the first quarter of fiscal 2016 was $8.1 million, or ($0.14) per share, based on 57.4 million weighted average shares outstanding. Net loss from continuing operations for the 4th quarter of fiscal 2015 was $9.4 million, or ($0.22) per share, based on 43.2 million weighted typical shares exceptional.
Non-GAAP adjusted EBITDA loss for the very first quarter of monetary 2016 was $3.3 million, a 29 % decline from $4.6 million for the 4th quarter of fiscal 2015. Non-GAAP adjusted EBITDA loss decreased 42 % from pro forma Changed EBITDA loss of $5.7 million for the 4th quarter of fiscal 2015. Kindly see Usage of Non-GAAP steps at the end of this press release for the definition of adjusted EBITDA. The Business re-evaluated its meaning of adjusted EBITDA at the end of the monetary year ended March 31, 2015 and redefined this non-GAAP measure to not omit bonus offers.
For full-year monetary 2016, Digital Turbinereaffirmed its previous outlook, and anticipates income to bein the range of $110-130 million, driven by development in Appia Core, and continued development in DT PayTM and DT MarketplaceTM, coupled with a speeding up ramp in DT Media in the 2nd half of the year particularly in the seasonally greatest third monetary quarter and into the financial fourth quarter as device distribution and penetration with new and existing carrier partners are anticipated to become more extensive. The Business expects positive complete year non-GAAP adjusted EBITDA and full year non-GAAP adjusted gross margin in the mid-30 % range.
Mr. Stone concluded, Fiscal 2016 is off to a terrific start, with the chance we have actually been working towards now a truth, and we are very happyhappy with our reported outcomes. With further proof that our Marketing model is working, the previously mentioned ramp in higher-margin DT Media earnings through the year will certainly result from increasing gadget sales with existing carrier partners, the addition of brand-new distribution partners gadget launches, and continued growth in profits per device, and we are well-prepared from an executional perspective to develop to the years seasonal peak. With secular tail winds remaining to drive explosive app-install advertisement need and usage, Digital Turbines positioning at the epicenter of this spend, our huge scale ecosystem, our proven successful products that permit carriers back into this income stream, and our improving business model economics, place us uniquely well to achieve our growth plans.
About Digital Turbine, Inc.Digital Turbine works at the convergence of media and mobile interactions, delivering end-to-end items and solutions for mobile operators, app advertisers, device OEMs and other third celebrations3rd parties to allow them to efficiently monetize mobile material and acquire greater value user acquisition. The business products include DT Ignite, a mobile gadgeta mobile phone management option with targeted app distribution abilities, DT IQ, a tailored user experience and app discovery tool, DT Marketplace, an application and material store, and DT Pay, a content management and mobile payment option, DT Media, a marketer solution for special and exclusive carrier inventory, and Appia, a leading around the world mobile user acquisition network. Digital Turbine has provided more than 100 million app installs for hundreds of marketers. In addition, more than 31 million customers utilize Digital Turbines solutions every month across more than 20 global operators. Headquartered in Austin, Texas with global offices in Durham, Berlin, Singapore, Sydney and Tel Aviv. For additional details visitwww.digitalturbine.comor connect with Digital Turbine on Twitter at@DigitalTurbine. Teleconference Management will host a conference call today at
4:30 pm ET to discuss its financial first quarter 2016 monetary results. To get involved, interested celebrations must call 866-652-5200 in the United States or 412-317-6060 from international areas, conference ID 10070012. A webcast of the conference call will be offered at ir.digitalturbine.com. For those who are unable to join the live call, a playback will be offered through August 18
, 2015. The replay can be accessed by calling 877-344-7529 in the United States or 412-317-0088 from worldwide locations, passcode 10070012. The webcast will be archived at ir.digitalturbine.com/events for a duration of one year. Usage of Non-GAAP Financial Steps To supplement the business condensed financial statements provided in accordance with United States Generally Accepted Accounting Principles( GAAP), Digital Turbine makes use of non-GAAP measures of particular parts of monetary efficiency. These non-GAAP measures include non-GAAP adjusted gross profit and gross margin and non-GAAP adjusted EBITDA. Reconciliations to the nearby GAAP measures of all non-GAAP measures included in this news release can be discovered in the tables below. Non-GAAP steps are offered to enhance investors total understanding of the companys present financial efficiency, potential customers for the future and as a method to assess period-to-period
contrasts. The company thinks that these non-GAAP steps supply significant additional details concerning financial performance by leaving out specific costs and advantages that may not be a sign of recurring core company operating results. The business believes the non-GAAP steps that omit such products when seen in combination with GAAP outcomes and the accompanying reconciliations boost the comparability of results against previous periods and permitenable greater openness of financial outcomes. The company thinks non-GAAP steps facilitate managements internal comparison of its monetary performance to that of prior periods in addition to trend analysis for budgeting and planning functions. The presentation of non-GAAP measures is not planned to be considered in isolation or as a substitute for, or superior to, the financial information prepared and provided in accordance with GAAP. Non-GAAP adjusted gross earnings and gross margin are specified as GAAP gross profit and gross margin changedadapted to omit the result of intangible amortization expenditure. Readers are cautioned that non-GAAP adjusted gross earnings and gross margin must not be interpreted as an alternative to gross margin figured out
in accordance with United States GAAP as a sign of profitability or performance, which is the most similar step under GAAP. Non-GAAP adjusted EBITDA is calculated as GAAP net loss leaving out the following cash and non-cash expenditures: interest expense, foreign transaction gains (losses ), financial obligation financing and non-cash associated expenses, debt discount and non-cash financial obligation settlement expense, gain or loss on extinguishment of debt, earnings taxes, possession disability charges, depreciation and
amortization, stock-based payment expense, modification in reasonable value of derivatives, and charges and costs connected to acquisitions. Since adjusted EBITDA is a non-GAAP procedure that does not have a standardized definition, it may not be similar to similar steps presented by other companies. Readers are warned that non-GAAP adjusted EBITDA must not be interpreted as an alternative to net income (loss)identified in accordance with US GAAP as an indication of performance, which is the most comparable procedure under GAAP. Non-GAAP adjusted gross earnings and gross margin and changed EBITDA are utilized by management as internal procedures of success and efficiency. They have actually been consisted of since the business believes that the procedures are utilized by particular investors to examine the companys financial performance prior to non-cash charges and specific expenses that the company does not think are reflective of its
hidden business. Pro Forma Financial Info On March 6, 2015, Digital Turbine, Inc., a Delaware corporation obtained Appia, Inc. Digital Turbine, Inc. and Appia, Inc. had various financial year ends. As such, quantities connected to the historic operations of Appia have been adjustedadapted to line up the duration over which those operations occurred and likewiseas well as adjustedadapted to reflect as if Appia, Inc. had been had for the whole quarter ended March 31, 2015.
The pro forma financial info in this press release is unaudited and does not represent real combined outcomes of operations of the two business, which might have been materially different had the acquisition actually occurred at the start of our fourth monetary 2015 quarter. Positive Statements This press release consists of positive statements within the significance of the US federal securities laws. Statements in this news release that are not statements of historic reality which concern future results from operations, monetary position, economic conditions, item releases and other statement that may be construed as a prediction of future performance or occasions, consisting of financial forecasts and development in various products are forward-looking statements(and price quotes of income for completed quarters might include forward-looking statements )that speak just as of the date made and which involve understood and unknown risks, uncertainties and other factors which might, need to several of these dangers unpredictabilities or other aspects emerge, cause real outcomes to vary materially from those revealed or suggested by such statements. These aspects consist of the event of any event, change or other circumstances that could give risegenerate threats associated with disruption of managements attention from the continuous company operations due to the Appia merger integration effort; details regarding within-quarter demand and income is supplied to give an indicator of the source of demand or earnings, not as a measure of trends or forecasts; the capability to broaden the combined companys worldwide reach, speed up growth and produce a scalable, low-capex company design that drives EBITDA; failure to recognize expected operational effectiveness, revenue (including projected profits)and cost synergies and resulting earnings development, EBITDA and free money flowcapital conversion from the Appia merger; failure to refinance the assumed financial obligation or to refinance the debt on beneficial terms; unforeseen challenges connected to relationships with operators, publishers and marketers and expanding and preserving those relationships; the ability to perform upon, and recognize any advantagestake advantage of, potential value development chances through strategic relationships in the future or at all, including the capability to leverage advertising chances efficiently and enhance profits streams for providers; the fundamental and deal certain difficulties in transforming discussions with providers into actual contractual relationships; product acceptance of a new product such as DT Ignite or DT IQ in a competitive marketplace; device sell through for any certain gadget or series of devices; the capacity for unexpected or ignored money requirements or liabilities; the effect of currency exchange rate variations on our reported GAAP monetary statements; the companys capability as a smaller sized business to manage global operations; its capability offered the business restricted resources to determine and consummate acquisitions; differing and commonly unpredictable levels of orders; the obstacles intrinsic in innovation development required to maintain the business competitive advantage such as adherence to launch schedules and the expenses and time needed for finalization and acquiring market approval of new products; modifications in economic conditions and market demand; quick and complicated changes occurring in the mobile marketplace; rates and other activities by competitors; prices threats associated with potential commoditization of the Appia Core as competitors boosts and new technologies include pricing pressure; innovation management danger as the company requireshas to adapt to intricate specifications of different providers and the management of a complicated technology platform given the business fairly restricted resources; and other threats consisting of those described from time to time in Digital Turbines filings on Kinds 10-K and 10-Q with the Securities and Exchange Commission (SEC ), news release and other interactions. You should not position undue reliance on these forward-looking statements. The business does not undertake to upgrade forward-looking statements, whether as a result of brand-new information, future occasions or otherwise, other than as needed by law. For more detailsTo learn more, contact: Carolyn Capaccio/Sanjay M. Hurry LHA -LRB-212-RRB-Â 838-3777