AUSTIN, Texas, Feb. 7, 2018 /PRNewswire/ -- Digital Turbine,
Inc. (Nasdaq: APPS), the Company empowering operators and Original
Equipment Manufacturers ("OEMs") around the globe with end-to-end
mobile solutions, announced financial results for the fiscal third
quarter ended December 31, 2017.
Recent Highlights:
- Fiscal third quarter revenue totaled $38.0 million, representing 71% year-over-year
growth. Operators & OEMs ("O&O") revenue of $22.7 million in the third quarter of fiscal 2018
was up 93% when compared to the prior year period.
- The Company has surpassed 130 million total devices with Ignite
installed to date.
- GAAP net loss for fiscal third quarter was $3.8 million, or ($0.05) per share. Non-GAAP adjusted net
income1 was $0.5 million,
or $0.01 per share.
- Non-GAAP Adjusted EBITDA2 during the fiscal third
quarter increased to $1.2 million, as
compared to a loss of $2.1 million in
the third quarter of fiscal 2017.
- GAAP net cash provided by operating activities was $1.9 million during the third quarter of fiscal
2018, as compared to net cash used in operating activities of
$4.2 million in the third quarter of
fiscal 2017. Non-GAAP free cash flow4 increased to
$1.4 million during the third quarter
of fiscal 2018, as compared to a loss of $4.5 million in the third quarter of fiscal
2017.
- The Company's cash balance was $6.9
million as of December 31,
2017, up $1.0 million from the
September 30, 2017 balance of
$5.9 million.
- The gross principal amount of the convertible notes was
$8.6 million as of December 31, 2017, down from $10 million as of September 30, 2017, as an additional $1.4 million in principal amount was converted by
convertible note holders in the third quarter of fiscal 2018.
- The Company has successfully launched "Single-Tap" Installs
(rebranded from "Ignite Delivers") across multiple operators.
Single-Tap functionality is designed to provide end users with
frictionless access to desired applications while improving
advertiser conversion rates and providing an added source of
monetization for our carrier and OEM partners.
"The December quarter was a breakthrough quarter for Digital
Turbine in many ways," said Bill
Stone, CEO. "We achieved positive non-GAAP adjusted
net income1 while also generating $1.4 million in free cash flow4.
As we have stressed previously, establishing and maintaining a
sustainably profitable business model was a primary objective for
us in fiscal 2018. The performance in the fiscal third
quarter was driven primarily by better-than-expected results in our
O&O business as well as in our Content business. Strength
in our core O&O business was attributable to improved
per-device metrics with our key U.S. partners, added contributions
from recently launched partners in the U.S. and abroad, and growing
demand from an expanding roster of established brand
advertisers."
"As proud as I am of the December quarter results reported here
today, I am at least equally pleased with the progress we have made
in recent months toward the development of a more comprehensive,
more versatile, more scalable mobile delivery platform. We
have worked hand-in-hand with valued partners around the world to
develop creative new products and tailor new services designed to
enhance the end-user experience while generating additional sources
of monetization over the full lifecycle of a mobile device. I
am tremendously excited about the inherent potential of our
new-and-improved Ignite-driven platform moving forward, and I look
forward to providing updates to our investors as many related new
product and service offerings, including 'Single-Tap' and 'Smart
Folders', gain traction in the marketplace over the next several
quarters."
Mr. Stone concluded, "As we wind toward the end of fiscal 2018
and prepare to embark on the new fiscal year, I cannot help but
feel confident about the future of Digital Turbine. We have
accomplished our primary fiscal 2018 objective by establishing a
core business capable of generating positive cash flow on a
sustainable basis. At the same time, and with the influential
support of strategically-aligned partners, we have developed
several new platform innovations that are helping us seize
noteworthy momentum in the marketplace that should, in turn,
contribute to the next phase of growth for the Company in fiscal
2019 and beyond."
Fiscal 2018 Third Quarter Financial Results
Total revenue for the third quarter of fiscal 2018 was
$38.0 million, representing an
increase of 71% year-over-year. Advertising segment revenue
of $24.2 million increased 49%
year-over-year. Within Advertising, O&O revenue of
$22.7 million during the third
quarter of fiscal 2018 increased 93% year-over-year. Growth
in the O&O business was attributable to organic growth derived
from fully ramped partners, as well as incremental contributions
from partially ramped carrier and OEM partners added to the Ignite
platform over the preceding 12 months. Importantly, the
Company benefitted from substantially higher revenue-per-device
with its four largest U.S. carrier partners during the
quarter. Higher revenue-per-device metrics are reflective of
higher average slot counts and strong advertiser demand for unique
homescreen access.
Content revenue for the third quarter of fiscal 2018 reached an
all-time high of $13.8 million,
representing year-over-year growth of 128%. Growth within the
Content business was driven by higher merchant spending levels, as
well as the addition of new merchants and services, during the
quarter.
GAAP gross margin was 25% in the third quarter of fiscal 2018,
as compared to 15% in the third quarter of fiscal 2017.
Non-GAAP adjusted gross margin3 was 27% for the
third quarter of fiscal 2018, as compared to 24% in the third
quarter of fiscal 2017. Gross margin expansion year-over-year
was driven by an improving revenue mix, as the higher-margin
O&O business has increased from 53% of total revenue in the
fiscal third quarter of 2017 to 60% of total revenue in the fiscal
third quarter of 2018. The reconciliation between GAAP and non-GAAP
financial results for all referenced periods is provided in a table
immediately following the Unaudited Consolidated Statements of
Operations and Comprehensive Loss included below.
Net loss for the third quarter of fiscal 2018 was $3.8 million, or ($0.05) per share, as compared to the net loss
for the third quarter of fiscal 2017 of $2.6
million, or ($0.04) per
share. Non-GAAP adjusted net income1 was
$0.5 million, or $0.01 per share, in the third quarter of fiscal
2018.
Non-GAAP adjusted EBITDA2 for the third quarter of
fiscal 2018 was $1.2 million, as
compared to a loss of $2.1 million
for the third quarter of fiscal 2017. Growth in non-GAAP
adjusted EBITDA was achieved primarily via the combination of gross
profit growth in the O&O business and effective expense
management. Please see 'Use of Non-GAAP Measures' at the end
of this press release for the definition of Non-GAAP adjusted
EBITDA and a reconciliation to GAAP net loss.
Business Outlook
Based on information available as of February 7, 2018, the Company expects full-year
fiscal 2018 revenue of $123 million,
representing 34% annual growth. The Company expects non-GAAP
adjusted EBITDA2 of $2.4
million for the full-year fiscal 2018, as compared to a
non-GAAP adjusted EBITDA loss of $8.9
million for fiscal 2017. The Company further expects to
generate positive non-GAAP free cash flow4 for the
full-year fiscal 2018. Non-GAAP adjusted EBITDA and free cash
flow differ from comparable GAAP measures in that they exclude
certain cash and non-cash expenses, such as interest expense,
foreign transaction gains (losses), income taxes, depreciation and
amortization, stock-based compensation expense, the change in fair
value of derivatives and warrants, impairment of intangible assets,
loss on disposal of fixed assets, and loss on extinguishment of
debt. Digital Turbine is unable to predict with reasonable
certainty the ultimate outcome of these exclusions without
unreasonable effort. For example, the Company cannot predict its
stock price, which under GAAP can have a significant impact on the
fair values of derivatives and warrants. Therefore, Digital Turbine
has not provided guidance for GAAP net loss or a reconciliation of
the foregoing forward-looking adjusted EBITDA and free cash flow
guidance to GAAP net loss.
About Digital Turbine, Inc.
Digital Turbine operates at the convergence of media and mobile
communications, connecting top mobile operators, OEMs and
publishers with app developers and advertisers worldwide. Its
comprehensive Mobile Delivery Platform powers frictionless user
acquisition and engagement, operational efficiency and monetization
opportunities. Digital Turbine's technology platform has been
adopted by more than 30 mobile operators and OEMs, and has
delivered more than one billion app preloads for tens of thousands
advertising campaigns. The company is headquartered in Austin, Texas, with global offices in
Durham, Mumbai, San
Francisco, Singapore,
Sydney and Tel Aviv. For additional information
visit www.digitalturbine.com.
https://twitter.com/DigitalTurbine
https://www.facebook.com/DigitalTurbineInc
https://www.linkedin.com/company/digital-turbine?trk=tyah&trkInfo=tas:digital+tur
Conference Call
Management will host a conference call today at 4:30 p.m. ET to discuss its most recent fiscal
quarter financial results and provide operational updates on
existing 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 February 14,
2018. The replay can be accessed by dialing 877-344-7529 in
the United States or 412-317-0088
from international locations, passcode 10116627.
The conference call will discuss guidance and other material
information.
Use of Non-GAAP Financial Measures
To supplement the Company's condensed financial statements
presented in accordance with U.S. Generally Accepted Accounting
Principles ("GAAP"), Digital Turbine uses non-GAAP measures of
certain components of financial performance. These non-GAAP
measures include non-GAAP adjusted gross profit, non-GAAP gross
margin, non-GAAP adjusted EBITDA, non-GAAP adjusted net income,
non-GAAP EPS and free cash flow. 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/(loss) and EPS are
defined as GAAP net income/(loss) and EPS adjusted to exclude the
effect of stock-based compensation, amortization of intangibles,
changes in the fair value of derivatives and warrants related to
the September 2016 convertible notes
offering, and tax adjustments due to updates resulting from
finalization of a transfer pricing study. 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
loss excluding the following cash and non-cash expenses: interest
expense, foreign transaction gains (losses), income taxes,
depreciation and amortization, stock-based compensation expense,
the change in fair value of derivatives and warrants that are
recorded related to the September
2016 convertible notes offering, other income / (expense),
impairment of intangible assets, loss on disposal of fixed assets,
and loss on extinguishment of debt. Readers are cautioned
that Non-GAAP adjusted EBITDA should not be construed as an
alternative to net income (loss) determined in accordance with U.S.
GAAP as an indicator of performance, which is the most comparable
measure under GAAP.
3Non-GAAP adjusted gross profit and gross margin are
defined as GAAP gross profit and gross margin adjusted to exclude
the effect of intangible amortization expense, impairment of
intangible assets, and depreciation of software. Readers are
cautioned that Non-GAAP adjusted gross profit and gross margin
should not be construed as an alternative to gross margin
determined in accordance with U.S. GAAP as an indicator of
profitability or performance, which is the most comparable measure
under GAAP.
4Non-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)
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.
Non-GAAP adjusted gross profit and gross margin, adjusted
EBITDA, Non-GAAP adjusted net income and EPS, and free cash flow
are used by management as internal measures of profitability,
performance and liquidity. 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 the U.S. federal securities laws. 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 associated with Ignite adoption among existing customers
(including the impact of possible delays with major carrier and OEM
partners in the roll out for mobile phones deploying Ignite)
- actual mobile device sales and sell-through where Ignite is
deployed is out of our control
- risks associated with the timing of Ignite software pushes to
the embedded bases of carrier and OEM partners
- risks associated with end user take rates of carrier and OEM
software pushes which include Ignite
- new customer adoption and time to revenue with new carrier and
OEM partners is subject to delays and factors out of our
control
- risks associated with fluctuations in the number of Ignite
slots across US carrier partners
- required customization and technical integration which may slow
down time to revenue notwithstanding the existence of a
distribution agreement
- risk that strong Apple iPhone sales could result in a
disproportionately low amount of Android sales
- risks associated with delays in major mobile phone launches, or
the failure of such launches to achieve the scale
- customer adoption that either we or the market may expect
- risks associated with the level of our secured and unsecured
indebtedness
- ability to comply with financial covenants in outstanding
indebtedness
- the difficulty of extrapolating monthly demand to quarterly
demand
- the challenges, given the Company's comparatively small size,
to expand the combined Company's global reach, accelerate growth
and create a scalable, low-capex business model that drives EBITDA
(as well as Adjusted EBITDA)
- challenges to realize anticipated operational efficiencies,
revenue (including projected revenue) and cost synergies and
resulting revenue growth, EBITDA (and Adjusted EBITDA) and free
cash flow conversion from the Appia merger
- the impact of currency exchange rate fluctuations on our
reported GAAP financial statements, particularly in regard to the
Australian dollar
- ability as a smaller Company to manage international
operations
- varying and often unpredictable levels of orders; the
challenges inherent in technology development necessary to maintain
the Company's competitive advantage such as adherence to release
schedules and the costs and time required for finalization and
gaining market acceptance of new products
- changes in economic conditions and market demand
- rapid and complex changes occurring in the mobile
marketplace
- pricing and other activities by competitors
- pricing risks associated with potential commoditization of the
A&P business as competition increases and new technologies, in
particular Real Time Bidding, add pricing pressure
- developing RTB for A&P to the level required to compete in
the increasingly important programmatic bidding area will require
additional investment that, given the Company's limited resources,
may not be available in the time or on the terms necessary
- derivative and warrant liabilities on our balance sheet will
fluctuate as our stock price moves and will also produce changes in
our income statement; these fluctuations and changes might
materially impact our reported GAAP financials in an adverse
manner, particularly if our stock price were to rise
- technology management risk as the Company needs to adapt to
complex specifications of different carriers and the management of
a complex technology platform given the Company's relatively
limited resources, and
- other risks including those described from time to time in
Digital Turbine's filings on Forms 10-K and 10-Q with the
Securities and Exchange Commission (SEC), press releases and other
communications. 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 Contacts:
Brian Bartholomew
Digital Turbine
brian.bartholomew@digitalturbine.com
Digital Turbine,
Inc. and Subsidiaries
|
Consolidated
Statements of Operations and Comprehensive Loss
|
|
|
|
|
|
|
|
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
9 Months
Ended
|
|
9 Months
Ended
|
|
December 31,
2017
|
|
December 31,
2016
|
|
December 31,
2017
|
|
December 31,
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Net
revenues
|
$
38,031
|
|
$
22,285
|
|
$
92,042
|
|
$
69,156
|
Cost of
revenues
|
|
|
|
|
|
|
|
License fees and
revenue share
|
27,719
|
|
17,039
|
|
66,485
|
|
54,060
|
Other direct cost of
revenues
|
651
|
|
1,878
|
|
1,917
|
|
5,640
|
Total cost of
revenues
|
28,370
|
|
18,917
|
|
68,402
|
|
59,700
|
Gross
profit
|
9,661
|
|
3,368
|
|
23,640
|
|
9,456
|
Operating
expenses
|
|
|
|
|
|
|
|
Product
development
|
3,623
|
|
3,113
|
|
9,218
|
|
9,065
|
Sales and
marketing
|
2,042
|
|
1,683
|
|
5,288
|
|
4,655
|
General and
administrative
|
4,592
|
|
3,982
|
|
12,504
|
|
13,902
|
Total operating
expenses
|
10,257
|
|
8,778
|
|
27,010
|
|
27,622
|
Loss from
operations
|
(596)
|
|
(5,410)
|
|
(3,370)
|
|
(18,166)
|
Interest and other
expense, net
|
|
|
|
|
|
|
|
Interest expense,
net
|
(446)
|
|
(725)
|
|
(1,815)
|
|
(2,029)
|
Foreign exchange
transaction loss
|
35
|
|
(9)
|
|
(182)
|
|
(13)
|
Change in fair value
of convertible note
embedded derivative liability
|
(1,658)
|
|
2,853
|
|
(6,310)
|
|
2,423
|
Change in fair value
of warrant liability
|
(898)
|
|
937
|
|
(2,526)
|
|
797
|
Loss on
extinguishment of debt
|
(284)
|
|
-
|
|
(1,166)
|
|
(293)
|
Other
income
|
(36)
|
|
68
|
|
-
|
|
101
|
Total interest and
other expense, net
|
(3,287)
|
|
3,124
|
|
(11,999)
|
|
986
|
Loss from operations
before income taxes
|
(3,883)
|
|
(2,286)
|
|
(15,369)
|
|
(17,180)
|
Income tax
benefit
|
(84)
|
|
300
|
|
(937)
|
|
159
|
Net loss
|
$
(3,799)
|
|
$
(2,586)
|
|
$
(14,432)
|
|
$
(17,339)
|
|
|
|
|
|
|
|
|
Other comprehensive
income / (loss)
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
-
|
|
5
|
|
(5)
|
|
(48)
|
Comprehensive
loss
|
$
(3,799)
|
|
$
(2,581)
|
|
$
(14,437)
|
|
$
(17,387)
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per common share
|
$
(0.05)
|
|
$
(0.04)
|
|
$
(0.21)
|
|
$
(0.26)
|
Weighted average
common shares outstanding, basic and diluted
|
72,148
|
|
66,634
|
|
68,575
|
|
66,416
|
Digital Turbine,
Inc. and Subsidiaries
|
Consolidated
Balance Sheets
|
|
|
|
|
(in thousands,
except par value and share amounts)
|
|
|
|
|
|
December 31,
2017
|
|
March 31,
2017
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalents
|
$
6,883
|
|
$
6,149
|
Restricted
cash
|
331
|
|
331
|
Accounts receivable,
net of allowances of $841 and $597, respectively
|
32,494
|
|
16,554
|
Deposits
|
155
|
|
121
|
Prepaid expenses and
other current assets
|
551
|
|
510
|
Total current
assets
|
40,414
|
|
23,665
|
Property and
equipment, net
|
2,693
|
|
2,377
|
Deferred tax
assets
|
593
|
|
352
|
Intangible assets,
net
|
2,844
|
|
4,565
|
Goodwill
|
76,621
|
|
76,621
|
TOTAL
ASSETS
|
$
123,165
|
|
$
107,580
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
28,404
|
|
$
19,868
|
Accrued license fees
and revenue share
|
12,857
|
|
8,529
|
Accrued
compensation
|
3,456
|
|
1,073
|
Short-term debt, net
of debt issuance costs and discounts of $247 and $0,
respectively
|
1,653
|
|
-
|
Other current
liabilities
|
1,844
|
|
1,304
|
Total current
liabilities
|
48,214
|
|
30,774
|
Convertible notes,
net of debt issuance costs and discounts of $2,881 and $6,315,
respectively
|
5,751
|
|
9,685
|
Convertible note
embedded derivative liability
|
5,896
|
|
3,218
|
Warrant
liability
|
3,602
|
|
1,076
|
Other non-current
liabilities
|
51
|
|
782
|
Total
liabilities
|
63,514
|
|
45,535
|
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
$1,000)
|
100
|
|
100
|
Common
stock
|
|
|
|
$0.0001 par value:
200,000,000 shares authorized; 74,079,153 issued and 73,344,697
outstanding at December 31, 2017; 67,329,262 issued and 66,594,807
outstanding at March 31, 2017
|
10
|
|
8
|
Additional paid-in
capital
|
311,621
|
|
299,580
|
Treasury stock
(754,599 shares at December 31, 2017 and March 31, 2017)
|
(71)
|
|
(71)
|
Accumulated other
comprehensive loss
|
(326)
|
|
(321)
|
Accumulated
deficit
|
(251,683)
|
|
(237,251)
|
Total stockholders'
equity
|
59,651
|
|
62,045
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
123,165
|
|
$
107,580
|
Digital Turbine,
Inc. and Subsidiaries
|
Consolidated
Statement of Cash Flows
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
9 Months
Ended
|
|
9 Months
Ended
|
|
December 31,
2017
|
|
December 31,
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$
(14,432)
|
|
$
(17,339)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
2,707
|
|
6,325
|
Change in allowance
for doubtful accounts
|
244
|
|
130
|
Amortization of debt
discount and debt issuance costs
|
875
|
|
969
|
Accrued
interest
|
165
|
|
297
|
Stock-based
compensation
|
2,296
|
|
3,335
|
Stock-based
compensation for services rendered
|
224
|
|
276
|
Change in fair value
of convertible note embedded derivative liability
|
6,310
|
|
(2,423)
|
Change in fair value
of warrant liability
|
2,526
|
|
(797)
|
Loss on
extinguishment of debt
|
1,166
|
|
293
|
(Increase)/decrease
in assets:
|
|
|
|
Restricted cash
transferred from operating cash
|
-
|
|
(323)
|
Accounts
receivable
|
(16,184)
|
|
(1,877)
|
Deposits
|
(34)
|
|
83
|
Deferred tax
assets
|
(241)
|
|
212
|
Prepaid expenses and
other current assets
|
(41)
|
|
30
|
Increase/(decrease)
in liabilities:
|
|
|
|
Accounts
payable
|
8,536
|
|
4,509
|
Accrued license fees
and revenue share
|
4,328
|
|
(712)
|
Accrued
compensation
|
2,383
|
|
(241)
|
Other current
liabilities
|
385
|
|
(818)
|
Other non-current
liabilities
|
(731)
|
|
283
|
Net cash provided
by/(used in) operating activities
|
482
|
|
(7,788)
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Capital
expenditures
|
(1,312)
|
|
(1,381)
|
Proceeds from the
sale of cost method investment in Sift
|
-
|
|
999
|
Net cash used in
investing activities
|
(1,312)
|
|
(382)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Cash received from
issuance of convertible notes
|
-
|
|
16,000
|
Proceeds from
short-term borrowings
|
2,500
|
|
-
|
Options
exercised
|
261
|
|
11
|
Repayment of debt
obligations
|
(847)
|
|
(11,000)
|
Payment of debt
issuance costs
|
(346)
|
|
(2,319)
|
Net cash provided in
financing activities
|
1,568
|
|
2,692
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(4)
|
|
(48)
|
|
|
|
|
Net change in cash
and cash equivalents
|
734
|
|
(5,526)
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
6,149
|
|
11,231
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
6,883
|
|
$
5,705
|
|
|
|
|
Supplemental
disclosure of non-cash investing and financing
activities:
|
770
|
|
741
|
|
|
|
|
Common stock of the
Company issued for extinguishment of debt
|
$
9,510
|
|
$
-
|
GAAP GROSS MARGIN
TO NON-GAAP GROSS MARGIN
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
December 31,
2017
|
|
December 31,
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenue
|
$
38,031
|
|
$
22,285
|
Gross
profit
|
$
9,661
|
|
$
3,368
|
Gross margin
percentage
|
25%
|
|
15%
|
Add back
items:
|
|
|
|
Amortization of
intangibles
|
$
549
|
|
$
1,878
|
Depreciation of
software
|
89
|
|
-
|
Non-GAAP gross
profit
|
$
10,299
|
|
$
5,246
|
Non-GAAP gross margin
percentage
|
27%
|
|
24%
|
|
|
|
|
|
|
|
|
GAAP NET LOSS TO
NON-GAAP ADJUSTED EBITDA
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
December 31,
2017
|
|
December 31,
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
Net Loss
|
$
(3,799)
|
|
$
(2,586)
|
Add back
items:
|
|
|
|
Stock and stock
option compensation
|
891
|
|
1,135
|
Amortization of
intangibles
|
549
|
|
1,878
|
Depreciation
expense
|
350
|
|
248
|
Interest expense,
net
|
446
|
|
725
|
Other
income
|
36
|
|
(68)
|
Change in fair value
of convertible note
embedded derivative liability
|
1,658
|
|
(2,853)
|
Change in fair value
of warrant liability
|
898
|
|
(937)
|
Loss on
extinguishment of debt
|
284
|
|
-
|
Foreign exchange
transaction loss
|
(35)
|
|
9
|
Income tax provision
/ (benefit)
|
(84)
|
|
300
|
Non-GAAP Adjusted
EBITDA
|
$
1,194
|
|
$
(2,149)
|
|
|
|
|
|
|
|
|
GAAP NET LOSS TO
NON-GAAP ADJUSTED NET INCOME/(LOSS)
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
December 31,
2017
|
|
December 31,
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
Net Loss
|
$
(3,799)
|
|
$
(2,586)
|
Add back
items:
|
|
|
|
Stock and stock
option compensation
|
891
|
|
1,135
|
Amortization of
intangibles
|
549
|
|
1,878
|
Change in fair value
of convertible note
embedded derivative and warrant liability
|
2,556
|
|
(3,790)
|
Loss on
extinguishment of debt
|
284
|
|
-
|
Non-GAAP Adjusted Net
Income/(Loss)
|
$
481
|
|
$
(3,363)
|
|
|
|
|
Non-GAAP Adjusted Net
Income/(Loss) per share
|
$
0.01
|
|
$
(0.05)
|
Weighted average
common shares outstanding, basic and diluted
|
72,148
|
|
66,634
|
|
|
GAAP CASH FLOW
FROM OPERATIONS TO NON-GAAP FREE CASH FLOW
|
|
|
|
|
(in
thousands)
|
|
|
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
December 31,
2017
|
|
December 31,
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
Net cash provided
by/(used in) operating activities
|
$
1,862
|
|
$
(4,221)
|
Capital
expenditures
|
$
489
|
|
$
266
|
|
|
|
|
Non-GAAP free cash
flow
|
$
1,373
|
|
$
(4,487)
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/digital-turbine-reports-fiscal-2018-third-quarter-results-300595211.html
SOURCE Digital Turbine, Inc.