Fourth Quarter Revenue Totaled
$140.1 Million and Fiscal 2023
Revenue Totaled $665.9
Million
Fiscal 2023 GAAP Net Income of $16.9 Million and GAAP EPS of $0.16; Fiscal 2023 Non-GAAP Adjusted Net
Income1 of $117.4 Million
and Non GAAP EPS of $1.15
Fiscal 2023 Non-GAAP Adjusted
EBITDA2 of $163.2
Million
AUSTIN,
Texas, May 24, 2023 /PRNewswire/ -- Digital
Turbine, Inc. (Nasdaq: APPS) announced financial results for the
fiscal fourth quarter ended March 31,
2023.
Recent Financial Highlights:
- Fiscal fourth quarter of 2023 revenue totaled $140.1 million representing a 24% decline
year-over-year as compared to the fiscal fourth quarter of
2022.
- GAAP net loss for the fiscal fourth quarter of 2023 was
$13.9 million, or ($0.14) per share, as compared to GAAP net income
for the fiscal fourth quarter of 2022 of $20.1 million, or $0.19 per share. Non-GAAP adjusted net
income1 for the fiscal fourth quarter of 2023 was
$13.6 million, or $0.14 per share, as compared to Non-GAAP adjusted
net income1 of $41.0
million, or $0.39 per share,
in the fiscal fourth quarter of 2022.
- GAAP net income for fiscal year 2023 was $16.9 million, or $0.16 per share, as compared to GAAP net income
for fiscal year 2022 of $35.6
million, or $0.35 per share.
Non-GAAP adjusted net income1 for fiscal year 2023 was
$117.4 million, or $1.15 per share, as compared to Non-GAAP adjusted
net income1 for fiscal year 2022 of $170.6 million, or $1.66 per share.
- Non-GAAP adjusted EBITDA2 for the fiscal fourth
quarter of 2023 was $23.1 million, as
compared to Non-GAAP adjusted EBITDA2 for the fiscal
fourth quarter of 2022 of $50.4
million. Non-GAAP adjusted EBITDA2 for fiscal
year 2023 was $163.2 million, as
compared to Non-GAAP adjusted EBITDA2 for fiscal year
2022 of $195.2 million.
"We begin fiscal 2024 feeling increasingly excited about the
future of our business," said Bill
Stone, CEO. "Macro headwinds have adversely impacted overall
ad spending in recent quarters, but we are starting to see
stabilization and renewed confidence among advertisers, which
helped us to sign several notable strategic demand partnerships in
the March quarter. Meanwhile, we have made significant progress
with respect to several of our key growth initiatives at Digital
Turbine. We believe that we have the innovative new solutions, such
as the DT Hub and SingleTap, for which there is growing demand in
the marketplace, and that we are uniquely positioned to deliver
these value-added solutions for our partners and advertisers on a
large and global scale."
Fiscal 2023 Fourth Quarter Financial Results
Total revenue for the fourth quarter of fiscal 2023 was
$140.1 million. Total On Device
Solutions revenue before intercompany eliminations was $96.9 million. Total App Growth Platform revenue
before intercompany eliminations was $45.0
million.
GAAP net loss for the fourth quarter of fiscal 2023 was
$13.9 million, or ($0.14) per share. Non-GAAP adjusted net
income1 for the fourth quarter of fiscal 2023 was
$13.6 million, or $0.14 per share, as compared to Non-GAAP adjusted
net income1 of $41.0
million, or $0.39 per share in
the fourth quarter of fiscal 2022.
Non-GAAP adjusted EBITDA2 for the fourth quarter of
fiscal 2023 was $23.1 million, as
compared to Non-GAAP adjusted EBITDA2 for the fourth
quarter of fiscal 2022 of $50.4
million.
Full Year Fiscal 2023 Financial Results
Total revenue for fiscal 2023 was $665.9
million, representing a 11% decline as compared to fiscal
year 2022. Total On Device Solutions revenue before intercompany
eliminations was $420.3 million.
Total App Growth Platform revenue before intercompany eliminations
was $253.0 million.
GAAP net income for fiscal year 2023 was $16.9 million, or $0.16 per share, as compared to GAAP net income
for fiscal year 2022 of $35.6
million, or $0.35 per share.
Non-GAAP adjusted net income1 for fiscal year 2023 was
$117.4 million, or $1.15 per share, as compared to Non-GAAP adjusted
net income1 for fiscal year 2022 of $170.6 million, or $1.66 per share.
Non-GAAP adjusted EBITDA2 for fiscal year 2023 was
$163.2 million, as compared to
Non-GAAP adjusted EBITDA2 for fiscal year 2022 of
$195.2 million. 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 24, 2023, and
considering the ongoing uncertainties in the macro environment, the
Company currently expects the following for the first quarter of
fiscal 2024:
- Revenue of between $140 million
and $145 million
- Non-GAAP adjusted EBITDA2 of between $23 million and $25
million
- Non-GAAP adjusted EPS1 of between $0.11 and $0.13,
based on approximately 102 million diluted shares outstanding and
an effective tax rate of 25% on Non-GAAP adjusted net
income1
It is not reasonably practicable to provide a business outlook
for GAAP net income 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 empowers superior mobile consumer experiences
and results for the world's leading telcos, advertisers, and
publishers. Its end-to-end platform uniquely simplifies its
partners' abilities to supercharge awareness, acquisition, and
monetization – connecting them with more consumers, in more ways,
across more devices. Digital Turbine is headquartered in
North America, with offices around
the world. 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 2023 financial results and provide operational updates on
the business. To participate, interested parties should access the
call online via the webcast
link: https://app.webinar.net/wKgVBXVQbZ9.
The call may also be accessed by dialing 888-317-6003 in
the United States (or 412-317-6061
from international locations) and entering access code 9200430.
A playback will be available through May
31, 2023. The replay can be accessed by dialing 877-344-7529
in the United States or
412-317-0088 from international locations, passcode 5576243.
The online webcast will be archived here for a period
of one year.
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,
change in fair value of contingent liability, transaction-related
expenses, severance costs and adjustment to acquisition-related
liabilities. 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:
stock-based compensation expense, depreciation and amortization,
net interest income (expense), change in fair value of contingent
liability, foreign exchange transaction gains (losses), income tax
provision, transaction-related expenses, severance costs, and
adjustment to acquisition-related liabilities. Non-GAAP adjusted
EBITDA margin is calculated as non-GAAP adjusted EBITDA as a
percentage of total revenue. 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 Statements of Cash
Flows), excluding transaction-related expenses and severance 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:
Risks Specific to our Business
- We have a history of net losses
- We have a limited operating history for our current portfolio
of assets.
- The failure to successfully integrate our recent acquisitions
may adversely affect our future results.
- Growth may place significant demands on our management and our
infrastructure.
- Our operations are global in scope, and we face added business,
political, regulatory, legal, operational, financial and economic
risks as a result of our international operations.
- Our financial results could vary significantly from
quarter-to-quarter and are difficult to predict.
- A significant portion of our revenue is derived from a limited
number of wireless carriers and customers.
- The risk of impairment of our goodwill.
- The effects of the current and any future general downturns in
the U.S. and the global economy, including financial market
disruptions.
- Our products, services and systems rely on software that is
highly technical, and if it contains errors or viruses, our
business could be adversely affected.
- Our business may involve the use, transmission and storage of
confidential information and personally identifiable information,
and the failure to properly safeguard such information could result
in significant reputational harm and monetary damages.
- System security risks and cyber-attacks could disrupt our
internal operations or information technology services provided to
customers.
- Our business and growth may suffer if we are unable to hire and
retain key talent.
- If we are unable to maintain our corporate culture, our
business could be harmed.
- If we make future acquisitions, this could require significant
management attention and disrupt our business.
- If we fail to implement or are delayed in the implementation of
our new ERP system platform, we may not be able to effectively
transact our business or produce our financial statements on a
timely basis.
- Adverse effects of negative developments affecting the
financial services industry, including events or concerns involving
liquidity, defaults, or non-performance by financial
institutions.
Risks Related to the Mobile Advertising Industry
- The mobile advertising business is an intensely competitive
industry, and we may not be able to compete successfully.
- The markets for our products and services are rapidly evolving
and may decline or experience limited growth.
- Our business is dependent on the continued growth in usage of
smartphones and other mobile connected devices.
- Wireless technologies are changing rapidly, and we may not be
successful in working with these new technologies.
- The complexity of and incompatibilities among mobile devices
may require us to use additional resources for the development of
our products and services.
- If wireless subscribers do not continue to use their mobile
devices to access mobile content and other applications, our
business growth and future revenue may be adversely affected.
- A shift of technology platform by wireless carriers and mobile
device manufacturers could lengthen the development period for our
offerings, increase our costs, and cause our offerings to be
published later than anticipated.
- Actual or perceived security vulnerabilities in devices or
wireless networks could adversely affect our revenue.
- We may be subject to legal liability associated with providing
mobile and online services.
- Risks of public health issues, such as a major epidemic or
pandemic.
- Risk related to geopolitical conditions and the global economy,
including financial markets, and inflation.
- Risk related to the geopolitical relationship between the U.S.
and China or changes in
China's economic and regulatory
landscape.
Industry Regulatory Risks
- We are subject to rapidly changing and increasingly stringent
laws, regulations and contractual requirements related to privacy,
data security, and protection of children.
- We are subject to anti-corruption, import/export, government
sanction, and similar laws, especially related to our international
operations.
- Government regulation of our marketing methods could restrict
or prevent our ability to adequately advertise and promote our
content, products and services available in certain
jurisdictions.
- Regulatory requirements pertaining to the marketing,
advertising, and promotion of our products and services.
- Governmental regulation of our marketing methods.
Risks Related to Our Intellectual Property and Potential
Liability
- Third parties may obtain and improperly use our intellectual
property; and if so, our competitive position may be adversely
affected, particularly if we do not, or are unable to, adequately
protect our intellectual property rights
- Third parties may sue us for intellectual property
infringement, which may prevent or limit our use of the
intellectual property and disrupt our business and could require us
to pay significant damage awards.
- Our platform contains open source software.
- Litigation may harm out business.
- Indemnity provisions in various agreements potentially expose
us to substantial liability for intellectual property infringement,
damages caused by malicious software, and other losses.
Risks Relating to Our Common Stock and Capital
Structure
- We have secured and unsecured indebtedness, which could limit
our financial flexibility.
- To service our debt and fund our other obligations and capital
requirements, we will require a significant amount of cash, and our
ability to generate cash will depend on many factors beyond our
control.
- The market price of our common stock is likely to be highly
volatile and subject to wide fluctuations, and you may be unable to
resell your shares at or above the current price or the price at
which you purchased your shares.
- Risk of not being able to raise capital to grow our
business.
- Risk to trading volume of lack of securities or industry
analysts research coverage.
- We have identified a material weakness in our internal control
over financial reporting and disclosure controls and procedures
which could, if not remediated, result in additional material
misstatements in our financial statements.
- Maintaining and improvising financial controls and being a
public company may strain resources.
- Anti-takeover provisions in our charter documents could make an
acquisition of our company more difficult.
- Our bylaws designate Delaware
as the exclusive forum for certain disputes.
- Other risks described in the risk factors in Item 1A of our
latest Annual Report on Form 10-K under the heading "Risk Factors"
and subsequent Quarterly Reports on Form 10-Q filed with the
Securities and Exchange Commission.
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. and Subsidiaries
Consolidated
Statements of Operations and Comprehensive Income
(Loss)
(in thousands,
except share and per share amounts)
|
|
|
|
Three months ended
March 31,
|
|
Year ended March
31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net revenue
|
|
$
140,118
|
|
$
184,135
|
|
$
665,920
|
|
$
747,596
|
Costs of revenue and
operating expenses
|
|
|
|
|
|
|
|
|
License fees and
revenue share
|
|
71,629
|
|
86,279
|
|
309,247
|
|
370,648
|
Other direct costs of
revenue
|
|
9,007
|
|
8,453
|
|
36,445
|
|
29,838
|
Product
development
|
|
13,399
|
|
12,129
|
|
56,486
|
|
52,723
|
Sales and
marketing
|
|
15,278
|
|
16,237
|
|
63,295
|
|
63,309
|
General and
administrative
|
|
39,954
|
|
33,612
|
|
154,282
|
|
138,837
|
Total costs of revenue
and operating expenses
|
|
149,267
|
|
156,710
|
|
619,755
|
|
655,355
|
Income (loss) from
operations
|
|
(9,149)
|
|
27,425
|
|
46,165
|
|
92,241
|
Interest and other
income (expense), net
|
|
|
|
|
|
|
|
|
Change in fair value
of contingent consideration
|
|
—
|
|
(800)
|
|
—
|
|
(41,087)
|
Interest expense,
net
|
|
(7,128)
|
|
(3,188)
|
|
(23,352)
|
|
(8,495)
|
Foreign exchange
transaction gain (loss)
|
|
(431)
|
|
459
|
|
(1,026)
|
|
2,062
|
Other expense,
net
|
|
(163)
|
|
(151)
|
|
229
|
|
(749)
|
Total interest and
other income (expense), net
|
|
(7,722)
|
|
(3,680)
|
|
(24,149)
|
|
(48,269)
|
Income (loss) before
income taxes
|
|
(16,871)
|
|
23,745
|
|
22,016
|
|
43,972
|
Income tax provision
(benefit)
|
|
(3,018)
|
|
3,604
|
|
5,146
|
|
8,403
|
Net income
(loss)
|
|
(13,853)
|
|
20,141
|
|
16,870
|
|
35,569
|
Less: net income
attributable to non-controlling interest
|
|
79
|
|
41
|
|
197
|
|
23
|
Net income (loss)
attributable to Digital Turbine, Inc.
|
|
(13,932)
|
|
20,100
|
|
16,673
|
|
35,546
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
2,258
|
|
(5,667)
|
|
(2,386)
|
|
(39,395)
|
Comprehensive income
(loss)
|
|
(11,595)
|
|
25,808
|
|
14,484
|
|
(3,826)
|
Less: comprehensive
income (loss) attributable to non-controlling interest
|
|
81
|
|
(2)
|
|
415
|
|
(934)
|
Comprehensive income
(loss) attributable to Digital Turbine, Inc.
|
|
$
(11,676)
|
|
$
25,810
|
|
$
14,069
|
|
$
(2,892)
|
Net income (loss) per
common share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.14)
|
|
$
0.21
|
|
$
0.17
|
|
$
0.37
|
Diluted
|
|
$
(0.14)
|
|
$
0.19
|
|
$
0.16
|
|
$
0.35
|
Weighted-average common
shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
99,273
|
|
96,965
|
|
98,783
|
|
95,198
|
Diluted
|
|
100,712
|
|
104,151
|
|
101,816
|
|
102,640
|
Digital Turbine,
Inc. and Subsidiaries
Consolidated Balance
Sheets
(in thousands,
except par value and share amounts)
|
|
|
|
March 31,
2023
|
|
March 31,
2022
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash
|
|
$
75,058
|
|
$
126,768
|
Restricted
cash
|
|
500
|
|
394
|
Accounts receivable,
net
|
|
178,189
|
|
263,139
|
Prepaid expenses and
other current assets
|
|
12,319
|
|
20,570
|
Total current
assets
|
|
266,066
|
|
410,871
|
Property and
equipment, net
|
|
39,327
|
|
31,086
|
Right-of-use
assets
|
|
10,073
|
|
15,439
|
Intangible assets,
net
|
|
379,632
|
|
440,589
|
Goodwill
|
|
561,576
|
|
559,792
|
Other non-current
assets
|
|
9,882
|
|
732
|
TOTAL
ASSETS
|
|
$
1,266,556
|
|
$
1,458,509
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDER'S EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
119,338
|
|
$
167,858
|
Accrued license fees
and revenue share
|
|
69,221
|
|
95,170
|
Accrued
compensation
|
|
10,984
|
|
28,775
|
Acquisition purchase
price liabilities
|
|
—
|
|
50,000
|
Current portion of
debt
|
|
—
|
|
12,500
|
Other current
liabilities
|
|
21,377
|
|
30,960
|
Total current
liabilities
|
|
220,920
|
|
385,263
|
Long-term debt, net of
debt issuance costs
|
|
410,522
|
|
520,785
|
Deferred tax
liabilities, net
|
|
13,940
|
|
19,976
|
Other non-current
liabilities
|
|
13,919
|
|
16,270
|
Total
liabilities
|
|
659,301
|
|
942,294
|
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;
100,216,494 issued and
99,458,369 outstanding
at March 31, 2023; 97,921,826 issued and
97,163,701 outstanding
at March 31, 2022
|
|
10
|
|
10
|
Additional paid-in
capital
|
|
822,217
|
|
745,661
|
Treasury stock
(758,125 shares at March 31, 2023 and March 31, 2022)
|
|
(71)
|
|
(71)
|
Accumulated other
comprehensive loss
|
|
(41,945)
|
|
(39,341)
|
Accumulated
deficit
|
|
(175,115)
|
|
(191,788)
|
Total stockholders'
equity
|
|
605,196
|
|
514,571
|
Non-controlling
interest
|
|
2,059
|
|
1,644
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
$
1,266,556
|
|
$
1,458,509
|
Digital Turbine,
Inc. and Subsidiaries
Consolidated
Statements of Cash Flows
(Unaudited)
(in
thousands)
|
|
|
|
Three months ended
March 31,
|
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
(loss)
|
|
$
(13,853)
|
|
$
20,141
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
20,926
|
|
16,506
|
Non-cash interest
expense
|
|
217
|
|
215
|
Stock-based
compensation expense
|
|
10,758
|
|
3,935
|
Change in fair value
of contingent consideration
|
|
—
|
|
800
|
Right-of-use
asset
|
|
793
|
|
2,773
|
Deferred income
taxes
|
|
(3,545)
|
|
(8,780)
|
Foreign exchange
transaction gain
|
|
(1,607)
|
|
(459)
|
(Increase) decrease in
assets:
|
|
|
|
|
Accounts receivable,
gross
|
|
51,077
|
|
30,879
|
Allowance for doubtful
accounts
|
|
319
|
|
685
|
Prepaid expenses and
other current assets
|
|
19,404
|
|
2,556
|
Other non-current
assets
|
|
(736)
|
|
209
|
Increase (decrease) in
liabilities:
|
|
|
|
|
Accounts
payable
|
|
(34,718)
|
|
(6,705)
|
Accrued license fees
and revenue share
|
|
(5,678)
|
|
(14,811)
|
Accrued
compensation
|
|
(5,097)
|
|
(10,401)
|
Other current
liabilities
|
|
(21,828)
|
|
8,520
|
Other non-current
liabilities
|
|
(570)
|
|
(4,787)
|
Net cash provided by
operating activities
|
|
15,862
|
|
41,276
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Equity
investments
|
|
(4,499)
|
|
—
|
Business acquisitions,
net of cash acquired
|
|
—
|
|
(530)
|
Capital
expenditures
|
|
(5,260)
|
|
(7,588)
|
Net cash used in
investing activities
|
|
(9,759)
|
|
(8,118)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Proceeds from
borrowings
|
|
7,500
|
|
179,147
|
Payment of debt
issuance costs
|
|
(5)
|
|
(20)
|
Payment of deferred
business acquisition consideration
|
|
—
|
|
(204,501)
|
Options and warrants
exercised
|
|
925
|
|
1,486
|
Payment of withholding
taxes for net share settlement of equity awards
|
|
(507)
|
|
(1,018)
|
Repayment of debt
obligations
|
|
(19,500)
|
|
(149)
|
Net cash used in
financing activities
|
|
(11,587)
|
|
(25,055)
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents and restricted cash
|
|
1,181
|
|
3,619
|
|
|
|
|
|
Net change in cash
and cash equivalents and restricted cash
|
|
(4,303)
|
|
11,722
|
|
|
|
|
|
Cash and cash
equivalents and restricted cash, beginning of period
|
|
79,861
|
|
115,440
|
|
|
|
|
|
Cash and cash
equivalents and restricted cash, end of period
|
|
$
75,558
|
|
$
127,162
|
REVENUE BY
SEGMENT
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
Year ended March
31,
|
|
|
2023
|
|
2022
|
|
%
Change
|
|
2023
|
|
2022
|
|
%
Change
|
On Device
Solutions
|
|
$
96,909
|
|
$
119,211
|
|
(19) %
|
|
$
420,328
|
|
$
502,636
|
|
(16) %
|
App Growth
Platform
|
|
44,966
|
|
69,572
|
|
(35) %
|
|
252,995
|
|
262,336
|
|
(4) %
|
Elimination
|
|
(1,757)
|
|
(4,648)
|
|
(62) %
|
|
(7,403)
|
|
(17,376)
|
|
(57) %
|
Consolidated
|
|
$
140,118
|
|
$
184,135
|
|
(24) %
|
|
$
665,920
|
|
$
747,596
|
|
(11) %
|
GAAP INCOME FROM
OPERATIONS TO NON-GAAP GROSS PROFIT
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
Year ended March
31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net revenue
|
|
$ 140,118
|
|
$ 184,135
|
|
$ 665,920
|
|
$ 747,596
|
Income (loss) from
operations
|
|
(9,149)
|
|
27,425
|
|
46,165
|
|
92,241
|
Add-back
items:
|
|
|
|
|
|
|
|
|
Product
development
|
|
13,399
|
|
12,129
|
|
56,486
|
|
52,723
|
Sales and
marketing
|
|
15,278
|
|
16,237
|
|
63,295
|
|
63,309
|
General and
administrative
|
|
39,954
|
|
33,612
|
|
154,282
|
|
138,837
|
Depreciation of
software included in other direct costs of revenue
|
|
1,694
|
|
836
|
|
6,275
|
|
3,060
|
Non-GAAP gross
profit
|
|
$
61,176
|
|
$
90,239
|
|
$ 326,503
|
|
$ 350,170
|
Non-GAAP gross profit
percentage
|
|
44 %
|
|
49 %
|
|
49 %
|
|
47 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP NET INCOME TO
NON-GAAP ADJUSTED NET INCOME
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
Year ended March
31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
(loss)
|
|
$ (13,853)
|
|
20,141
|
|
$
16,870
|
|
$
35,569
|
Add-back
items:
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
|
10,758
|
|
3,935
|
|
30,401
|
|
19,304
|
Amortization of
intangibles
|
|
16,126
|
|
13,544
|
|
64,608
|
|
48,417
|
Adjustment to
estimated earn-out liability
|
|
—
|
|
800
|
|
—
|
|
41,087
|
Transaction-related
expenses
|
|
859
|
|
2,566
|
|
4,739
|
|
26,237
|
Severance
costs
|
|
1,066
|
|
—
|
|
2,176
|
|
—
|
Adjustment to
acquisition-related liabilities
|
|
(1,346)
|
|
—
|
|
(1,346)
|
|
—
|
Non-GAAP adjusted net
income
|
|
$
13,610
|
|
$
40,986
|
|
$ 117,448
|
|
$ 170,614
|
Non-GAAP adjusted net
income per common share
|
|
$
0.14
|
|
$
0.39
|
|
$
1.15
|
|
$
1.66
|
Weighted-average common
shares outstanding, diluted
|
|
100,712
|
|
104,151
|
|
101,816
|
|
102,640
|
GAAP NET INCOME TO
NON-GAAP ADJUSTED EBITDA
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
Year ended March
31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
(loss)
|
|
$
(13,853)
|
|
$
20,141
|
|
$
16,870
|
|
$
35,569
|
Add-back
items:
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
|
10,758
|
|
3,935
|
|
30,401
|
|
19,304
|
Depreciation and
amortization
|
|
20,926
|
|
16,506
|
|
81,073
|
|
57,452
|
Interest expense,
net
|
|
7,128
|
|
3,188
|
|
23,352
|
|
8,495
|
Other expense,
net
|
|
163
|
|
151
|
|
(229)
|
|
749
|
Change in fair value
of contingent consideration
|
|
—
|
|
800
|
|
—
|
|
41,087
|
Foreign exchange
transaction gain (loss)
|
|
431
|
|
(459)
|
|
1,026
|
|
(2,062)
|
Income tax provision
(benefit)
|
|
(3,018)
|
|
3,604
|
|
5,146
|
|
8,403
|
Transaction-related
expenses
|
|
859
|
|
2,566
|
|
4,739
|
|
26,237
|
Severance
costs
|
|
1,066
|
|
—
|
|
2,176
|
|
—
|
Adjustment to
acquisition-related liabilities
|
|
(1,346)
|
|
—
|
|
(1,346)
|
|
—
|
Non-GAAP adjusted
EBITDA
|
|
$
23,114
|
|
$
50,432
|
|
$
163,208
|
|
$
195,234
|
GAAP CASH FLOW FROM
OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW
|
(in
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
2023
|
|
2022
|
Net cash provided by
operating activities
|
|
$
15,862
|
|
$
41,276
|
Capital
expenditures
|
|
(5,260)
|
|
(7,588)
|
Transaction-related
expenses
|
|
859
|
|
2,566
|
Severance
costs
|
|
1,066
|
|
—
|
Non-GAAP free cash flow
provided by operations
|
|
$
12,527
|
|
$
36,254
|
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SOURCE Digital Turbine, Inc.