Digital Turbine (APPS) investor relations material

Executive summary

• Q1 revenue reached $166 million, up 27% year-over-year, driven by strong international performance and growth in both On Device Solutions and App Growth Platform segments.

• Non-GAAP adjusted net income was $24.1 million ($0.19 per share), a significant increase from $7.0 million ($0.06 per share) in the prior year.

• Adjusted EBITDA grew 69% year-over-year to $42.5 million, reflecting significant operating leverage.

• Strategic partnerships were announced with Orange and AI-focused collaborations with Google Cloud and Databricks, enhancing technology and market reach.

• Financing agreement was amended, reducing loan margin and liquidity covenants after achieving leverage targets.

Financial highlights

• On Device Solutions revenue was $110 million, up 15% year-over-year; App Growth Platform revenue was $56.6 million, up 56%.

• Non-GAAP gross margin was 49.4%, up from 47.3% a year ago; non-GAAP gross profit was $82.0 million.

• GAAP net loss improved to $3.2 million from $14.1 million in the prior year.

• Cash from operations was $17.9 million, more than double the prior year; free cash flow was $11.3 million.

• Cash and equivalents at quarter-end were $43.2 million, up from $38.0 million at the prior quarter-end.

Outlook and guidance

• Fiscal 2027 revenue guidance raised to $650–$670 million, up from $630–$650 million.

• Adjusted EBITDA guidance increased to $145–$155 million, up from $135–$145 million.

• Management expects continued macroeconomic headwinds, including geopolitical tensions and inflation, to impact customer spending and revenue growth.

• The company believes existing cash, cash flow from operations, and access to debt markets are sufficient to meet business requirements for at least 12 months, assuming successful refinancing of certain loan tranches.

• Positive trends expected to continue, driven by AI, data, brand, Ignite platform, and alternative app distribution.