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Fiscal 2022 Revenue of $747.6 Million Increased 138% on an As-Reported Basis; Fourth Quarter Revenue Totaled $184.1 Million
Fiscal 2022 GAAP Net Income of $35.6 Million and GAAP EPS of $0.35
Fiscal 2022 Non-GAAP EPS1 of $1.66 Increased 124% Year-Over-Year; Fiscal 2022 Non-GAAP Adjusted EBITDA2 of $195.2 Million Increased 158% Year-Over-Year
AUSTIN, Texas, May 31, 2022 /PRNewswire/ — Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal full year and quarter ended March 31, 2022. The Company completed the acquisitions of AdColony Holdings AS ("AdColony") and Fyber N.V. ("Fyber") on April 29 and May 25, 2021, respectively. Specific references made to "pro forma" results in this release provide investors with quarterly results and comparisons as if all acquired businesses were owned for the entirety of fiscal years 2021 and 2022. The Company believes that pro forma results, where applicable, can provide investors with more relevant year-over-year comparisons. As was initially announced on May 11, 2022, the Company has restated its financial results for the fiscal year 2022 quarters to reflect revenue net of revenue share costs for certain product offerings of the acquired AdColony and Fyber businesses. Results discussed below reflect this change.
Recent Financial Highlights:
"It is more important than ever to have a clear vision of where you are going as a Company, and to have a highly profitable, proven, and scalable business model to get there in times like these," said Bill Stone, CEO. "The macro world has changed considerably in recent months, and I am proud of our team’s focus and execution to adjust to the rapidly evolving operating conditions. We have made material progress on a number of key future growth drivers, such as SingleTap licensing, our role in the future of app stores, and the enhancement of numerous strategic partnerships with market-leading companies looking to leverage DT platform offerings as a core part of their respective growth initiatives. While macro headwinds will present certain challenges for nearly all companies in the short-term, I am confident that those headwinds will be less impactful for highly profitable growth businesses like ours generating nine-figures of free cash flow per year. Additionally, I believe the recent changes in the reporting of our revenue should help facilitate relative peer comparisons and highlight the relative profitability of our platform business model."
Fourth Quarter Fiscal 2022 Financial Results
Total revenue for the fourth quarter of fiscal 2022 was $184.1 million, representing a 94% increase year-over-year on an as-reported basis and a 19% increase year-over-year as compared to the comparable pro forma figure for the fiscal fourth quarter of 2021. Total "On-Device Media" revenue, which represents revenue derived from the Company’s Application Media and Content Media platform products before intercompany eliminations, increased 22% year-over-year to $119.2 million. Before intercompany eliminations, total revenue from our two "In-App Media" segments, which represents revenue derived from the Fyber and AdColony businesses, increased 16% year-over-year on a pro forma basis to $69.6 million. Fyber contributed $29.2 million during the quarter, while AdColony contributed $40.4 million during the quarter.
GAAP net income for the fiscal fourth quarter of 2022 was $20.1 million, or $0.19 per share. Non-GAAP adjusted net income1 for the fourth quarter of fiscal 2022 was $41.0 million, or $0.39 per share, as compared to Non-GAAP adjusted net income1 of $24.5 million, or $0.25 per share, in the fourth quarter of fiscal 2021.
Non-GAAP adjusted EBITDA2 for the fourth quarter of fiscal 2022 was $50.4 million, representing an increase of 124% year-over-year when compared to Non-GAAP adjusted EBITDA2 of $22.5 million in the fourth quarter of fiscal 2021. 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.
Full Year Fiscal 2022 Financial Results
Total revenue for fiscal 2022 was $747.6 million, representing 138% annual growth on as as-reported basis. On a pro forma basis, fiscal year 2022 revenue increased 41% year-over-year as compared to the comparable pro forma figure for fiscal year 2021.
GAAP net income for fiscal 2022 was $35.6 million, or $0.35 per share. Non-GAAP adjusted net income1 for fiscal 2022 was $170.6 million, or $1.66 per share, as compared to Non-GAAP adjusted net income1 of $71.5 million, or $0.74 per share, in fiscal 2021.
Non-GAAP adjusted EBITDA2 for fiscal 2022 was $195.2 million, representing an increase of 158% year-over-year when compared to Non-GAAP adjusted EBITDA2 of $75.6 million in fiscal 2021. 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 31, 2022, the Company currently expects the following for the first quarter of fiscal 2023:
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 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 simplifies content discovery and delivers relevant content directly to consumer devices. The Company’s on-demand media platform powers frictionless app and content discovery, user acquisition and engagement, operational efficiency and monetization opportunities. Digital Turbine’s technology platform has been adopted by more than 40 mobile operators and OEMs worldwide, and has delivered more than three billion app preloads for tens of thousands of advertising campaigns. The company is headquartered in Austin, Texas, with global offices in Arlington, 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 full fiscal year 2022 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 7, 2022. The replay can be accessed by dialing 877-344-7529, passcode 9278131.
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, adjustments in the fair value of earn-out liabilities associated with acquisitions, and transaction-related expenses and compensation costs. 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: net interest income/(expense), adjustments in the fair value of earn-out liabilities associated with acquisitions, income tax provision, depreciation and amortization, stock-based compensation expense, amortization of intangibles, foreign exchange transaction gains/(losses), loss on debt extinguishment, and transaction-related expenses and compensation costs. 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 Statement of Cash Flows), excluding acquisition-related contingency and liability payments and transaction-related expenses and compensation 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:
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.
[email protected]
Digital Turbine, Inc.
Digital Turbine, Inc. and Subsidiaries
Consolidated Statements of Operations and Comprehensive Income / (Loss)
(in thousands, except per share amounts)

Three months ended March 31,
Year ended March 31,
2022
2021
2022
2021
Net revenue
$       184,135
$         95,082
$       747,596
$       313,579
Costs of revenue and operating expenses
     License fees and revenue share
86,279
55,673
370,648
178,649
     Other direct costs of revenue
8,453
387
29,838
2,358
     Product development
12,129
6,292
52,723
20,119
     Sales and marketing
16,237
4,932
63,309
19,304
     General and administrative
33,612
11,844
138,837
33,940
          Total costs of revenue and operating expenses
156,710
79,128
655,355
254,370
Income from operations
27,425
15,954
92,241
59,209
Interest and other income / (expense), net
     Change in fair value of contingent consideration
(800)
(332)
(41,087)
(15,751)
     Interest expense, net
(3,188)
(144)
(8,495)
(1,003)
     Foreign exchange transaction gain
459

2,062

     Loss on extinguishment of debt

(452)

(452)
     Other expense, net
(151)
(95)
(749)
(146)
          Total interest and other income / (expense),
          net

(3,680)
(1,023)
(48,269)
(17,352)
Income before income taxes
23,745
14,931
43,972
41,857
     Income tax provision / (benefit)
3,604
(15,125)
8,403
(13,027)
Net income
20,141
30,056
35,569
54,884
     Less: net income attributable to non-controlling
     interest

41

23

Net income attributable to Digital Turbine, Inc.
20,100
30,056
35,546
54,884
Other comprehensive income
     Foreign currency translation adjustment
5,667
7
(39,395)
(312)
Comprehensive income
25,808
30,063
(3,826)
54,572
     Less: comprehensive loss attributable to non-
     controlling interest

(2)

(934)

Comprehensive income attributable to Digital Turbine, Inc.
$         25,810
$         30,063
$          (2,892)
$         54,572
Net income per common share
     Basic
$              0.21
$              0.34
$              0.37
$              0.62
     Diluted
$              0.19
$              0.31
$              0.35
$              0.57
Weighted-average common shares outstanding
     Basic
96,965
89,665
95,198
88,514
     Diluted
104,151
97,582
102,640
96,151
Digital Turbine, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except par value and share amounts)

March 31, 2022
March 31, 2021
ASSETS
Current assets
     Cash and cash equivalents
$       126,768
$         30,778
     Restricted cash
394
340
     Accounts receivable, net
263,139
61,985
     Prepaid expenses and other current assets
20,570
4,282
          Total current assets
410,871
97,385
     Property and equipment, net
31,086
13,050
     Right-of-use assets
15,439
3,495
     Deferred tax assets, net

12,963
     Intangible assets, net
440,589
53,300
     Goodwill
559,792
80,176
     Other non-current assets
732

          TOTAL ASSETS
$    1,458,509
$       260,369
LIABILITIES AND STOCKHOLDER’S EQUITY
Current liabilities
     Accounts payable
$       167,858
$         34,953
     Accrued license fees and revenue share
95,170
46,196
     Accrued compensation
28,775
9,817
     Short-term debt
12,500
14,557
     Other current liabilities
30,960
5,626
     Acquisition purchase price liabilities
50,000

          Total current liabilities
385,263
111,149
     Long-term debt, net of debt issuance costs
520,785

     Deferred tax liabilities, net
19,976

     Other non-current liabilities
16,270
4,108
          Total liabilities
942,294
115,257
          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; 97,921,826 issued and
          97,163,701 outstanding at March 31, 2022; 90,685,553 issued and 89,949,847
          outstanding at March 31, 2021

10
10
Additional paid-in capital
745,661
373,310
Treasury stock (758,125 shares at March 31, 2022 and March 31, 2021)
(71)
(71)
Accumulated other comprehensive loss
(39,341)
(903)
Accumulated deficit
(191,788)
(227,334)
     Total stockholders’ equity attributable to Digital Turbine, Inc.
514,571
145,112
          Non-controlling interest
1,644

     TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$    1,458,509
$       260,369
Digital Turbine, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)

Three months ended March 31,
2022
2021
(Unaudited)
(Unaudited)
Cash flows from operating activities:
Net income
20,141
30,056
Adjustments to reconcile net income to net cash provided by operating activities:
     Depreciation and amortization
16,506
2,052
     Non-cash interest expense
215
39
     Stock-based compensation expense
3,935
1,591
     Loss on extinguishment of debt

255
     Change in estimate of remaining contingent consideration
800
332
     Right-of-use asset
2,773
312
     Deferred income taxes
(8,780)
(12,952)
     Payment of contingent consideration in excess of amount capitalized at
     acquisition


(10,332)
     Foreign exchange transaction gain
(459)

     (Increase) / decrease in assets:
          Accounts receivable, gross
30,879
514
          Allowance for doubtful accounts
685
1,424
          Prepaid expenses and other current assets
2,556
(2,284)
          Other non-current assets
209

     Increase / (decrease) in liabilities:
          Accounts payable
(6,705)
(4,460)
          Accrued license fees and revenue share
(14,811)
9,643
          Accrued compensation
(10,401)
1,195
          Other current liabilities
8,520
(2,552)
          Other non-current liabilities
(4,787)
(650)
Net cash provided by operating activities
41,276
14,183
Cash flows from investing activities
     Business acquisitions, net of cash acquired
(530)
(20,636)
     Capital expenditures
(7,588)
(2,659)
Net cash used in investing activities
(8,118)
(23,295)
Cash flows from financing activities
     Proceeds from borrowings
179,147
15,000
     Payment of debt issuance costs
(20)
(469)
     Payment of contingent consideration

1
     Payment of deferred business acquisition consideration
(204,501)

     Options and warrants exercised
1,486
1,282
     Payment of withholding taxes for net share settlement of equity awards
(1,018)

     Repayment of debt obligations
(149)
(19,250)
 Net cash used in financing activities
(25,055)
(3,436)
Effect of exchange rate changes on cash and cash equivalents and restricted cash
3,619
7
Net change in cash and cash equivalents and restricted cash
11,722
(12,541)
Cash and cash equivalents and restricted cash, beginning of period
115,440
43,659
Cash and cash equivalents and restricted cash, end of period
$       127,162
$         31,118
PRO FORMA REVENUE
(in thousands)
(Unaudited)
Three months ended March 31,
Year ended March 31,
2022
2021
% Change
2022
2021
% Change
On Device Media
$         119,211
$           97,471
22 %
$         502,637
$         327,872
53 %
In App Media – AdColony
40,357
39,407
2 %
181,482
157,784
15 %
In App Media – Fyber
29,215
20,328
44 %
105,362
63,116
67 %
Elimination
(4,648)
(2,361)
97 %
(19,488)
(4,276)
356 %
     Consolidated
$         184,135
$         154,845
19 %
$         769,993
$         544,496
41 %
GAAP INCOME FROM OPERATIONS TO NON-GAAP GROSS PROFIT
(in thousands)
(Unaudited)
Three months ended March 31,
Year ended March 31,
2022
2021
2022
2021
Net revenue
$      184,135
$        95,082
$      747,596
$      313,579
Income from operations
27,425
15,954
92,241
59,209
Add-back items:
     Product development
12,129
6,292
52,723
20,119
     Sales and marketing
16,237
4,932
63,309
19,304
     General and administrative
33,612
11,844
138,837
33,940
     Depreciation of software included in other direct
     costs of revenue

836
387
3,060
2,357
Non-GAAP gross profit
$        90,239
$        39,409
$      350,170
$      134,929
Non-GAAP gross profit percentage
49 %
41 %
47 %
43 %
GAAP NET INCOME TO NON-GAAP ADJUSTED NET INCOME
(in thousands)
(Unaudited)
Three months ended March 31,
Year ended March 31,
2022
2021
2022
2021
Net income
$        20,141
$        30,056
$        35,569
$        54,884
Add-back items:
     Stock and stock option compensation
3,935
1,591
19,304
5,877
     Amortization of intangibles
13,544
766
48,417
2,776
     Adjustment to estimated earn-out liability
800
332
41,087
15,751
     Tax adjustment (1)

(11,154)

(11,154)
     Transaction expenses
2,566
2,951
26,237
3,413
Non-GAAP adjusted net income from continuing
operations

$        40,986
$        24,542
$      170,614
$        71,547
Non-GAAP adjusted net income per share from
continuing operations

$            0.39
$            0.25
$            1.66
$            0.74
Weighted-average common shares outstanding, diluted
104,151
97,582
102,640
96,151
(1) Valuation allowance  release
GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDA
(in thousands)
(Unaudited)
Three months ended March 31,
Year ended March 31,
2022
2021
2022
2021
Net income from continuing operations
$           20,141
$           30,056
$           35,569
$           54,884
Add-back items:
     Stock and stock option compensation
3,935
1,591
19,304
5,877
     Depreciation and amortization
16,506
2,052
57,452
7,114
     Interest expense, net
3,188
144
8,495
1,003
     Other expense, net
151
95
749
146
     Change in fair value of contingent liability
800
332
41,087
15,751
     Loss on extinguishment of debt

452

452
     Foreign exchange transaction gain
(459)

(2,062)

     Income tax provision / (benefit)
3,604
(15,125)
8,403
(13,027)
     Transaction expenses
2,566
2,951
26,237
3,413
Non-GAAP adjusted EBITDA
$           50,432
$           22,548
$         195,234
$           75,613
GAAP CASH FLOW FROM OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW
(in thousands)
(Unaudited)
Three months ended March 31,
2022
2021
Net cash provided by operating activities
41,276
14,183
Capital expenditures
(7,588)
(2,659)
Payment of acquisition-related liabilities assumed

10,332
Transaction expenses
2,566
2,951
Non-GAAP free cash flow provided by continuing operations
$           36,254
$           24,807
SOURCE Digital Turbine, Inc.
Cision Distribution 888-776-0942
from 8 AM – 9 PM ET

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