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Digital Turbine Reports Fiscal 2025 Second Quarter Financial Results

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Digital Turbine (NASDAQ: APPS) reported fiscal Q2 2025 results with revenue of $118.7 million, up 1% quarter-over-quarter but down 17% year-over-year. The company posted a GAAP net loss of $25.0 million ($0.24 per share) and Non-GAAP adjusted net income of $5.0 million ($0.05 per share). Adjusted EBITDA was $15.3 million, increasing 6% quarter-over-quarter but declining 45% year-over-year.

The company initiated a transformation program targeting over $25 million in annual cash expense savings and announced the acquisition of ONE Store International. For fiscal 2025, Digital Turbine expects revenue between $475-485 million and adjusted EBITDA of $65-70 million.

Digital Turbine (NASDAQ: APPS) ha riportato i risultati del secondo trimestre fiscale del 2025 con ricavi pari a 118,7 milioni di dollari, in aumento dell'1% rispetto al trimestre precedente, ma in calo del 17% rispetto allo stesso trimestre dell'anno precedente. L'azienda ha registrato una perdita netta GAAP di 25,0 milioni di dollari (0,24 dollari per azione) e un utile netto rettificato Non-GAAP di 5,0 milioni di dollari (0,05 dollari per azione). EBITDA rettificato è stato di 15,3 milioni di dollari, con un aumento del 6% rispetto al trimestre precedente, ma con una diminuzione del 45% rispetto all'anno precedente.

L'azienda ha avviato un programma di trasformazione mirato a oltre 25 milioni di dollari di risparmi annuali sulle spese in contante e ha annunciato l'acquisizione di ONE Store International. Per l'anno fiscale 2025, Digital Turbine prevede ricavi tra 475 e 485 milioni di dollari e un EBITDA rettificato di 65-70 milioni di dollari.

Digital Turbine (NASDAQ: APPS) reportó los resultados del segundo trimestre fiscal de 2025, con ingresos de 118,7 millones de dólares, un aumento del 1% en comparación con el trimestre anterior, pero una caída del 17% en comparación con el año anterior. La empresa publicó una pérdida neta GAAP de 25,0 millones de dólares (0,24 dólares por acción) y un ingreso neto ajustado Non-GAAP de 5,0 millones de dólares (0,05 dólares por acción). EBITDA ajustado fue de 15,3 millones de dólares, aumentando un 6% con respecto al trimestre anterior, pero disminuyendo un 45% en comparación con el año anterior.

La compañía inició un programa de transformación que busca más de 25 millones de dólares en ahorros anuales en gastos en efectivo y anunció la adquisición de ONE Store International. Para el año fiscal 2025, Digital Turbine espera ingresos entre 475 y 485 millones de dólares y un EBITDA ajustado de 65-70 millones de dólares.

디지털 터빈 (NASDAQ: APPS)은 2025 회계연도 2분기 실적을 발표했으며, 매출은 1억 1,870만 달러로 전분기 대비 1% 증가했지만 전년 대비 17% 감소했습니다. 회사는 GAAP 기준으로 2,500만 달러의 순손실을 기록했으며 (주당 0.24달러), 비 GAAP 조정 순이익은 500만 달러(주당 0.05달러)였습니다. 조정된 EBITDA는 1,530만 달러로 전분기 대비 6% 증가했지만 전년 대비 45% 감소했습니다.

회사는 연간 2,500만 달러 이상의 현금 비용 절감을 목표로 하는 변화 프로그램을 시작했으며 ONE Store International의 인수를 발표했습니다. 2025 회계연도에 대해 디지털 터빈은 매출이 4억 7,500만에서 4억 8,500만 달러 사이가 될 것으로 예상하며 조정된 EBITDA는 6,500만에서 7,000만 달러로 예상하고 있습니다.

Digital Turbine (NASDAQ: APPS) a annoncé les résultats du deuxième trimestre de l'exercice 2025, avec des revenus de 118,7 millions de dollars, en hausse de 1 % par rapport au trimestre précédent, mais en baisse de 17 % par rapport à l'année précédente. L'entreprise a enregistré une perte nette GAAP de 25,0 millions de dollars (0,24 dollars par action) et un bénéfice net ajusté non-GAAP de 5,0 millions de dollars (0,05 dollars par action). EBITDA ajusté s'élevait à 15,3 millions de dollars, en hausse de 6 % par rapport au trimestre précédent, mais en baisse de 45 % par rapport à l'année précédente.

L'entreprise a lancé un programme de transformation visant des économies annuelles de plus de 25 millions de dollars sur les dépenses en espèces et a annoncé l'acquisition de ONE Store International. Pour l'exercice 2025, Digital Turbine prévoit des revenus compris entre 475 et 485 millions de dollars et un EBITDA ajusté de 65 à 70 millions de dollars.

Digital Turbine (NASDAQ: APPS) hat die Ergebnisse des zweiten Quartals des Geschäftsjahres 2025 gemeldet, mit einem Umsatz von 118,7 Millionen US-Dollar, was im Vergleich zum Vorquartal einem Anstieg von 1% entspricht, jedoch im Vergleich zum Vorjahr einem Rückgang von 17%. Das Unternehmen verzeichnete einen GAAP-Nettoverlust von 25,0 Millionen US-Dollar (0,24 US-Dollar pro Aktie) und ein bereinigtes Non-GAAP-Nettoeinkommen von 5,0 Millionen US-Dollar (0,05 US-Dollar pro Aktie). Bereinigtes EBITDA betrug 15,3 Millionen US-Dollar, was einem Anstieg von 6% im Vergleich zum Vorquartal, aber einem Rückgang von 45% im Vergleich zum Vorjahr entspricht.

Das Unternehmen startete ein Transformationsprogramm mit dem Ziel, über 25 Millionen US-Dollar an jährlichen Einsparungen bei den Bar-Ausgaben zu erzielen, und kündigte die Übernahme von ONE Store International an. Für das Geschäftsjahr 2025 erwartet Digital Turbine einen Umsatz zwischen 475 und 485 Millionen US-Dollar sowie ein bereinigtes EBITDA von 65-70 Millionen US-Dollar.

Positive
  • Sequential revenue growth of 1% quarter-over-quarter to $118.7 million
  • Adjusted EBITDA increased 6% quarter-over-quarter to $15.3 million
  • Transformation program expected to yield $25 million in annual cost savings
  • Acquisition of ONE Store International to create alternative app ecosystem
Negative
  • 17% year-over-year revenue decline
  • GAAP net loss of $25.0 million ($0.24 per share)
  • 45% year-over-year decline in adjusted EBITDA
  • Reduced outlook for remainder of fiscal 2025 due to legacy business headwinds

Insights

Digital Turbine's Q2 FY25 results reveal significant challenges. $118.7M revenue shows a concerning 17% YoY decline, while sequential growth of just 1% indicates stagnation. The $25M GAAP net loss, though improved from last year's $161.5M loss, remains worrying. The company's cost-cutting initiative targeting $25M annual savings signals defensive positioning.

The reduced outlook and acknowledgment of "significant headwinds" in legacy businesses is particularly concerning. The projected revenue of $475-485M and adjusted EBITDA of $65-70M suggest continued pressure on margins. While the ONE Store International acquisition shows strategic intent, the immediate focus appears to be on survival rather than growth.

The mobile app marketplace dynamics are shifting unfavorably for Digital Turbine. The 45% YoY decline in adjusted EBITDA to $15.3M reflects intensifying competitive pressures and market saturation. The drop in adjusted EPS from $0.13 to $0.05 indicates deteriorating operational efficiency.

The transformation program, while necessary, suggests deeper structural issues. The company's projection of returning to YoY growth in March quarter appears optimistic given current trajectory. The On Device Solutions segment's $82.4M revenue shows vulnerability to changing mobile ecosystem dynamics, while App Growth Platform's $37.3M hasn't provided sufficient diversification.

Second Quarter Revenue Totaled $118.7 Million

Second Quarter GAAP Net Loss of $25.0 Million, or GAAP EPS of ($0.24); Second Quarter Non-GAAP Adjusted Net Income1 of $5.0 Million and Non-GAAP Adjusted EPS1 of $0.05

Second Quarter Non-GAAP Adjusted EBITDA2 Totaled $15.3 Million

AUSTIN, Texas, Nov. 6, 2024 /PRNewswire/ -- Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal second quarter ended September 30, 2024.

Recent Financial Highlights:

  • Fiscal second quarter of 2025 revenue totaled $118.7 million, representing an increase of 1% quarter-over-quarter as compared to the fiscal first quarter of 2025, and a decline of 17% year-over-year as compared to the fiscal second quarter of 2024.
  • GAAP net loss for the fiscal second quarter of 2025 was $25.0 million, or ($0.24) per share, as compared to GAAP net loss for the fiscal second quarter of 2024 of $161.5 million, or ($1.61) per share, which included a noncash goodwill impairment charge of $147.2 million. Non-GAAP adjusted net income1 for the fiscal second quarter of 2025 was $5.0 million, or $0.05 per share, as compared to Non-GAAP adjusted net income1 of $13.9 million, or $0.13 per share, in the fiscal second quarter of 2024.
  • Non-GAAP adjusted EBITDA2 for the fiscal second quarter of 2025 was $15.3 million, representing an increase of 6% quarter-over-quarter as compared to the fiscal first quarter of 2025, and a decline of 45% year-over-year as compared to Non-GAAP adjusted EBITDA2 of $27.7 million in the fiscal second quarter of 2024.
  • The Company has initiated a transformation program designed to drive greater efficiency and enhance cash flow generation while accelerating innovation and future growth. The program is underway and is targeted to yield more than $25 million in annual cash expense savings.
  • The Company announced the acquisition of ONE Store International to create a leading comprehensive and competitive alternative app ecosystem beyond the traditional app store model, offering greater value to app developers, consumers and mobile operators.

"The September quarter results marked our second consecutive quarter of sequential growth," said Bill Stone, CEO. "While we anticipate continued sequential growth in the current December quarter and a return to year-over-year growth in the March quarter, our outlook for the remainder of fiscal 2025 has been reduced as a result of more significant anticipated headwinds in some of our legacy businesses. In order to drive greater efficiencies with current operations and enhance cash flow generation while simultaneously accelerating innovation and maintaining our investment is several promising future growth initiatives, we have enacted a strategic transformation project. We expect this transformation project to yield more than $25 million in annual cost savings and position the Company for greater profit and cash flow leverage when top-line growth rates re-accelerate. We remain steadfastly confident in the future of Digital Turbine, but we also recognize that we must execute with greater expediency and efficiency while attacking the enormous market opportunity in front of us. We have a clear plan to achieve this core objective and maximally capitalize on our advantageous foothold position in the newly evolving mobile app marketplace."  

Fiscal 2025 Second Quarter Financial Results

Total revenue for the second quarter of fiscal 2025 was $118.7 million. Total On Device Solutions revenue before intercompany eliminations was $82.4 million. Total App Growth Platform revenue before intercompany eliminations was $37.3 million.

GAAP net loss for the second quarter of fiscal 2025 was $25.0 million, or ($0.24) per share, as compared to GAAP net loss for the second quarter of fiscal 2024 of $161.5 million, or ($1.61) per share.

Non-GAAP adjusted net income1 for the second quarter of fiscal 2025 was $5.0 million, or $0.05 per share, as compared to Non-GAAP adjusted net income1 of $13.9 million, or $0.13 per share, in the second quarter of fiscal 2024.

Non-GAAP adjusted EBITDA2 for the second quarter of fiscal 2025 was $15.3 million, as compared to Non-GAAP adjusted EBITDA2 for the second quarter of fiscal 2024 of 27.7 million.

Business Outlook

Based on information available as of November 6, 2024, the Company currently expects the following for fiscal year 2025:

  • Revenue of between $475 million and $485 million
  • Non-GAAP adjusted EBITDA2 of between $65 million and $70 million

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 and webcast today at 6:00 p.m. ET to discuss its fiscal 2025 second quarter financial results and provide operational updates on the business. The conference call will discuss forward guidance and other material information. The call can be accessed online via the webcast link: https:app.webinar.net/pvYVXg0ZeQo.  The call can also be accessed by dialing 888-317-6003 in the United States (or 412-317-6061 from international locations) and entering access code 4716696.

A playback will be available through November 13, 2024. The replay can be accessed by dialing 877-344-7529 in the United States or 412-317-0088 from international locations, passcode 9360917.  An online webcast will be archived for a period of one year and is available via the Investor Relations section of Digital Turbine's website.

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, business transformation costs, transaction-related expenses, severance costs, impairment of goodwill, changes in fair value of contingent considerations, and tax adjustments. 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), net other income (expense), business transformation costs, foreign exchange transaction gains (losses), income tax (benefit) provision, transaction-related expenses, impairment of goodwill, changes in fair value of contingent considerations, and severance costs. 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, severance costs and business transformation 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, impairment of goodwill, 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.
  • 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.
  • Our business and reputation could be impacted by information technology system failures and network disruptions
  • 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.
  • Adverse effects of negative developments affecting the financial services industry, including events or concerns involving liquidity, defaults, or non-performance by financial institutions.
  • Entry into new lines of business, and our offering of new products and services, resulting from our investments may result in exposure to new risks.
  • Litigation may harm out business.

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 conflicts, 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.
  • 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.
  • A material weakness in our internal control over financial reporting and disclosure controls and procedures could, if not remediated, result in 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

Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income

(Unaudited)

(in thousands, except share and per share amounts)




Three months ended September 30,


Six months ended September 30,



2024


2023


2024


2023

Net revenue


$     118,728


$          143,259


$   236,717


$   289,625

Costs of revenue and operating expenses









Revenue share


56,336


68,719


112,145


138,311

Other direct costs of revenue


8,438


9,017


16,228


18,630

Product development


9,433


14,037


20,147


29,837

Sales and marketing


15,887


15,537


32,134


31,114

General and administrative


42,176


41,385


85,693


81,884

Impairment of goodwill



147,181



147,181

Total costs of revenue and operating expenses


132,270


295,876


266,347


446,957

Loss from operations


(13,542)


(152,617)


(29,630)


(157,332)

Interest and other income (expense), net









Change in fair value of contingent consideration


200


372


200


372

Interest expense, net


(9,232)


(7,844)


(17,482)


(15,234)

Foreign exchange transaction loss


(976)


(2,106)


(158)


(183)

Other income (expense), net


(36)



78


244

Total interest and other expense, net


(10,044)


(9,578)


(17,362)


(14,801)

Loss before income taxes


(23,586)


(162,195)


(46,992)


(172,133)

Income tax provision (benefit)


1,400


(713)


3,150


(2,252)

Net loss


(24,986)


(161,482)


(50,142)


(169,881)

Less: net loss attributable to non-controlling interest





(220)

Net loss attributable to Digital Turbine, Inc.


(24,986)


(161,482)


(50,142)


(169,661)

Other comprehensive income (loss)









Foreign currency translation adjustment


2,157


(1,287)


944


(7,394)

Comprehensive loss


(22,829)


(162,769)


(49,198)


(177,275)

Less: comprehensive income attributable to non-controlling interest





519

Comprehensive loss attributable to Digital Turbine, Inc.


$      (22,829)


$        (162,769)


$   (49,198)


$ (177,794)

Net loss per common share









Basic


$          (0.24)


$              (1.61)


$       (0.49)


$       (1.69)

Diluted


$          (0.24)


$              (1.61)


$       (0.49)


$       (1.69)

Weighted-average common shares outstanding









Basic


103,041


100,604


102,722


100,272

Diluted


103,041


100,604


102,722


100,272

 

Digital Turbine, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except par value and share amounts)




September 30, 2024


March 31, 2024



(Unaudited)



ASSETS





Current assets





Cash and cash equivalents


$               32,765


$             33,605

Accounts receivable, net


191,612


191,015

Prepaid expenses


7,093


7,704

Other current assets


12,419


10,017

Total current assets


243,889


242,341

Property and equipment, net


48,159


45,782

Right-of-use assets


11,222


9,127

Intangible assets, net


285,848


313,505

Goodwill


221,059


220,072

Other non-current assets


34,309


34,713

TOTAL ASSETS


$             844,486


$           865,540






LIABILITIES AND STOCKHOLDERS' EQUITY





Current liabilities





Accounts payable


$             148,062


$           159,200

Accrued revenue share


29,518


33,934

Accrued compensation


7,408


7,209

Other current liabilities


38,643


35,681

Total current liabilities


223,631


236,024

Long-term debt, net of debt issuance costs


407,620


383,490

Deferred tax liabilities, net


17,460


20,424

Other non-current liabilities


13,405


11,670

Total liabilities


662,116


651,608

Commitments and contingencies





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; 104,279,577 issued and 103,521,452 outstanding at September 30, 2024; 102,877,057 issued and 102,118,932 outstanding at March 31, 2024


10


10

Additional paid-in capital


875,827


858,191

Treasury stock (758,125 shares at September 30, 2024 and March 31, 2024)


(71)


(71)

Accumulated other comprehensive loss


(48,011)


(48,955)

Accumulated deficit


(645,485)


(595,343)

Total stockholders' equity


182,370


213,932

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$             844,486


$           865,540

 

Digital Turbine, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

 



Three months ended September 30,



2024


2023

Cash flows from operating activities:





Net (loss) income


$          (24,986)


$        (161,482)

Adjustments to reconcile net (loss) income to net cash provided by operating activities:





Depreciation and amortization


19,352


20,668

Non-cash interest expense


456


(147)

Allowance for credit losses


1,084


475

Stock-based compensation expense


8,999


9,016

Change in estimate of remaining contingent consideration


(200)


(372)

Right-of-use asset


(2,304)


1,173

Foreign exchange transaction loss


976


2,106

Impairment of goodwill



147,181

(Increase) decrease in assets:





Accounts receivable, gross


3,183


8,102

Prepaid expenses


(161)


(334)

Other current assets


(451)


Other non-current assets


(96)


(2,566)

Increase (decrease) in liabilities:





Accounts payable


(20,435)


1,663

Accrued revenue share


3,025


5,350

Accrued compensation


434


(1,906)

Other current liabilities


2,079


11,808

Deferred income taxes


(1,035)


(12,351)

Other non-current liabilities


1,361


(930)

Net cash provided by (used in) operating activities


(8,719)


27,454

Cash flows from investing activities





Capital expenditures


(7,477)


(7,001)

Net cash used in investing activities


(7,477)


(7,001)

Cash flows from financing activities





Proceeds from borrowings


21,000


12,000

Payment of debt issuance costs


(1,561)


Repayment of debt obligations


(6,000)


(34,136)

Acquisition of non-controlling interest in consolidated subsidiaries



Payment of withholding taxes for net share settlement of equity awards


(112)


(106)

Options exercised


79


1,998

Net cash provided by (used in) financing activities


13,406


(20,244)

Effect of exchange rate changes on cash and cash equivalents and restricted cash


(174)


(629)

Net change in cash and cash equivalents and restricted cash


(2,964)


(420)

Cash and cash equivalents and restricted cash, beginning of period


35,729


59,069

Cash and cash equivalents and restricted cash, end of period


$            32,765


$            58,649

 

REVENUE BY SEGMENT

(in thousands)

(Unaudited)










Three months ended September 30,



2024


2023


% Change

On Device Solutions


$           82,414


$           99,060


(17) %

App Growth Platform


37,346


46,183


(19) %

Elimination


(1,032)


(1,984)


(48) %

Consolidated


$         118,728


$         143,259


(17) %

 

GAAP (LOSS) INCOME FROM OPERATIONS TO NON-GAAP GROSS PROFIT

(in thousands)

(Unaudited)








Three months ended September 30,



2024


2023

Net revenue


$      118,728


$      143,259

(Loss) income from operations


(13,542)


(152,617)

Add-back items:





Product development


9,433


14,037

Sales and marketing


15,887


15,537

General and administrative


42,176


41,385

Depreciation of software included in other direct costs of revenue


51


1,509

Impairment of goodwill



147,181

Non-GAAP gross profit


$        54,005


$        67,032

Non-GAAP gross profit percentage


45 %


47 %











GAAP NET (LOSS) INCOME TO NON-GAAP ADJUSTED NET INCOME

(in thousands)

(Unaudited)








Three months ended September 30,



2024


2023

Net (loss) income


$      (24,986)


(161,482)

Add-back items:





Stock-based compensation expense


8,999


9,016

Amortization of intangibles


13,505


16,157

Change in fair value of contingent consideration


(200)


(372)

Tax adjustment (1)


7,200


Business transformation costs


237


2,528

Transaction-related expenses



79

Severance costs


268


809

Impairment of goodwill



147,181

Non-GAAP adjusted net income


$          5,023


$        13,916

Non-GAAP adjusted net income per common share


$            0.05


$            0.13

Weighted-average common shares outstanding, diluted


105,345


103,428

(1) Valuation allowance

 

GAAP NET (LOSS) INCOME TO NON-GAAP ADJUSTED EBITDA

(in thousands)

(Unaudited)








Three months ended September 30,



2024


2023

Net (loss) income


$          (24,986)


$        (161,482)

Add-back items:





Stock-based compensation expense


8,999


9,016

Depreciation and amortization


19,352


20,668

Interest expense, net


9,232


7,844

Other income (expense), net


36


Change in fair value of contingent consideration


(200)


(372)

Business transformation costs


237


2,528

Foreign exchange transaction (gain) loss


976


2,106

Income tax provision (benefit)


1,400


(713)

Transaction-related expenses



79

Severance costs


268


809

Impairment of goodwill



147,181

Non-GAAP adjusted EBITDA


$            15,314


$            27,664

 

GAAP CASH FLOW FROM OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW

(in thousands)

(Unaudited)








Three months ended September 30,



2024


2023

Net cash provided by (used in) operating activities


$            (8,719)


$            27,454

Capital expenditures


(7,477)


(7,001)

Transaction-related expenses



79

Severance costs


268


809

Business transformation costs


237


2,528

Non-GAAP free cash flow provided (used) by operations


$          (15,691)


$            23,869

 

Digital Turbine (PRNewsfoto/Digital Turbine, Inc.)

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/digital-turbine-reports-fiscal-2025-second-quarter-financial-results-302297919.html

SOURCE Digital Turbine, Inc.

FAQ

What was Digital Turbine's (APPS) revenue in Q2 fiscal 2025?

Digital Turbine reported revenue of $118.7 million in Q2 fiscal 2025, representing a 1% increase quarter-over-quarter and a 17% decline year-over-year.

How much cost savings is Digital Turbine (APPS) targeting from its transformation program?

Digital Turbine's transformation program is targeted to yield more than $25 million in annual cash expense savings.

What is Digital Turbine's (APPS) revenue guidance for fiscal 2025?

Digital Turbine expects revenue between $475 million and $485 million for fiscal year 2025.

What was Digital Turbine's (APPS) Q2 fiscal 2025 GAAP net loss?

Digital Turbine reported a GAAP net loss of $25.0 million, or ($0.24) per share, in Q2 fiscal 2025.

Digital Turbine, Inc.

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