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Digital Turbine Reports Fiscal 2024 Fourth Quarter and Fiscal Year 2024 Financial Results

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6 months ago

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Fourth Quarter Revenue Totaled $112.2 Million and Fiscal 2024 Revenue Totaled $544.5 Million

Fourth Quarter GAAP Net Loss of $236.5 Million, or GAAP EPS of ($2.32), Inclusive of a Noncash Goodwill Impairment Charge of $189.5 Million; Fourth Quarter Non-GAAP Adjusted Net Income1 of $12.6 Million and Non-GAAP Adjusted EPS1 of $0.12

Fourth Quarter Non-GAAP Adjusted EBITDA2 Totaled $12.3 Million and Fiscal 2024 Non-GAAP Adjusted EBITDA2 Totaled $92.4 Million

AUSTIN, Texas, May 28, 2024 /PRNewswire/ — Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal fourth quarter and fiscal year ended March 31, 2024.

Recent Financial Highlights:

Fiscal fourth quarter of 2024 revenue totaled $112.2 million, representing a year-over-year decline of 20% as compared to the fiscal fourth quarter of 2023.

GAAP net loss for the fiscal fourth quarter of 2024 was $236.5 million, or ($2.32) per share, as compared to GAAP net loss for the fiscal fourth quarter of 2023 of $13.9 million, or ($0.14) per share. GAAP net loss for the fiscal fourth quarter included a noncash goodwill impairment charge of $189.5 million. Non-GAAP adjusted net income1 for the fiscal fourth quarter of 2024 was $12.6 million, or $0.12 per share, as compared to Non-GAAP adjusted net income1 of $13.6 million, or $0.14 per share, in the fiscal fourth quarter of 2023.

GAAP net loss for fiscal 2024 was $420.4 million, or ($4.16) per share, as compared to GAAP net income for fiscal 2023 of $16.9 million, or $0.16 per share. GAAP net loss for fiscal 2024 included a noncash goodwill impairment charge of $336.6 million. Non-GAAP adjusted net income1 for fiscal 2024 was $60.3 million, or $0.58 per share, as compared to Non-GAAP adjusted net income1 of $117.4 million, or $1.15 per share, in fiscal 2023.

Non-GAAP adjusted EBITDA2 for the fiscal fourth quarter of 2024 was $12.3 million, as compared to Non-GAAP adjusted EBITDA2 of $23.1 million in the fiscal fourth quarter of 2023. Non-GAAP adjusted EBITDA2 for fiscal 2024 was $92.4 million, as compared to Non-GAAP adjusted EBITDA2 of $163.2 million in fiscal 2023.

New partnerships are set to add more than 70 million new devices globally.

“We are seeing encouraging real-time momentum in the marketplace that we believe validates our strategy and positions the Company for a return to growth in the new fiscal year,” said Bill Stone, CEO. “We have recently secured additional global device supply that we believe will help to offset recent headwinds as a result of decade-low upgrade-rates and selective app distribution limitations in the U.S. In addition to adding new devices, we are adding complementary new features on many existing devices, with momentum in the area of alternative app distribution. Recent wins on the media and advertiser side are proof points that our newly re-engineered ad tech platform is now performing at a level at which it is well-positioned to gain market share. Operationally, we have successfully modernized key product functionality and added new leadership personnel that we believe will be integral to sustained growth in the future. Our financial results reported today fail to reflect much of the real-time progress that we are making. We are increasingly convinced that we are on the right track with our overarching corporate strategy, and consequently, we are seeing signs of greater market demand for our unique product offerings that we expect will promote top-line growth, enhanced operating leverage and improved free cash flow generation for the Company in future periods.”

Fiscal 2024 Fourth Quarter Financial Results

Total revenue for the fourth quarter of fiscal 2024 was $112.2 million. Total On Device Solutions revenue before intercompany eliminations was $78.5 million. Total App Growth Platform revenue before intercompany eliminations was $34.4 million.

GAAP net loss for the fourth quarter of fiscal 2024 was $236.5 million, or ($2.32) per share, as compared to GAAP net loss for the fourth quarter of fiscal 2023 of $13.9 million, or ($0.14) per share. GAAP net loss for the fourth quarter of fiscal 2024 included a noncash goodwill impairment charge of $189.5 million.

Non-GAAP adjusted net income1 for the fourth quarter of fiscal 2024 was $12.6 million, or $0.12 per share, as compared to Non-GAAP adjusted net income1 of $13.6 million, or $0.14 per share, in the fourth quarter of fiscal 2023.

Non-GAAP adjusted EBITDA2 for the fourth quarter of fiscal 2024 was $12.3 million, as compared to Non-GAAP adjusted EBITDA2 for the fourth quarter of fiscal 2023 of $23.1 million.

Full Year Fiscal 2024 Financial Results

Total revenue for fiscal 2024 was $544.5 million. Total On Device Solutions revenue before intercompany eliminations was $370.1 million. Total App Growth Platform revenue before intercompany eliminations was $178.8 million.

GAAP net loss for fiscal 2024 was $420.4 million, or ($4.16) per share, as compared to GAAP net income for fiscal 2023 of $16.9 million, or $0.16 per share. GAAP net loss for fiscal 2024 included a noncash goodwill impairment charge of $336.6 million.

Non-GAAP adjusted net income1 for fiscal 2024 was $60.3 million, or $0.58 per share, as compared to Non-GAAP adjusted net income1 of $117.4 million, or $1.15 per share, in fiscal 2023.

Non-GAAP adjusted EBITDA2 for fiscal year 2024 was $92.4 million, as compared to Non-GAAP adjusted EBITDA2 for fiscal year 2023 of $163.2 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 28, 2024, and considering the ongoing uncertainties in the macro environment, the Company currently expects the following for fiscal year 2025:

Revenue of between $540 million and $560 millionNon-GAAP adjusted EBITDA2 of between $85 million and $95 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 4:30p ET to discuss its fiscal 2024 fourth 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/a58rLm9LDgx. 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 7883119.

A playback will be available through June 4, 2024. The replay can be accessed by dialing 877-344-7529 in the United States or 412-317-0088 from international locations, passcode 4435511.  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, tax adjustments, impairment of goodwill, and adjustments acquisition-related liabilities and earn-out 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), net other income (expense), change in fair value of contingent consideration, business transformation costs, foreign exchange transaction gains (losses), income tax (benefit) provision, transaction-related expenses, severance costs, impairment of goodwill, and adjustments 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, 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, depreciation of software, and impairment of goodwill. 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 lossesWe 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 disruptionsSystem 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.Privacy-related litigation and fines.

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 rightsThird 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 March 31,

Year ended March 31,

2024

2023

2024

2023

Net revenue

$   112,223

$   140,118

$   544,482

$   665,920

Costs of revenue and operating expenses

Revenue share

53,551

71,629

262,226

309,247

Other direct costs of revenue

7,555

9,007

34,799

36,445

Product development

11,284

13,399

54,157

56,486

Sales and marketing

15,935

15,278

61,481

63,295

General and administrative

42,278

39,954

169,617

154,282

Impairment of goodwill

189,459

—

336,640

—

Total costs of revenue and operating expenses

320,062

149,267

918,920

619,755

(Loss) income from operations

(207,839)

(9,149)

(374,438)

46,165

Interest and other income (expense), net

Change in fair value of contingent consideration

—

—

372

—

Interest expense, net

(7,938)

(7,128)

(30,838)

(23,352)

Foreign exchange transaction gain (loss)

(54)

(431)

101

(1,026)

Other expense, net

(261)

(163)

(328)

229

Total interest and other expense, net

(8,253)

(7,722)

(30,693)

(24,149)

(Loss) income before income taxes

(216,092)

(16,871)

(405,131)

22,016

Income tax provision

20,414

(3,018)

15,317

5,146

Net (loss) income

(236,506)

(13,853)

(420,448)

16,870

Less: net (loss) income attributable to non-controlling interest

—

79

(220)

197

Net (loss) income to Digital Turbine, Inc.

(236,506)

(13,932)

(420,228)

16,673

Other comprehensive income (loss)

Foreign currency translation adjustment

(2,462)

2,258

(6,271)

(2,386)

Comprehensive (loss) income

(238,968)

(11,595)

(426,719)

14,484

Less: comprehensive income (loss) attributable to non-controlling interest

—

81

519

415

Comprehensive (loss) income attributable to Digital Turbine, Inc.

$ (238,968)

$   (11,676)

$ (427,238)

$     14,069

Net (loss) income per common share

Basic

$       (2.32)

$       (0.14)

$       (4.16)

$         0.17

Diluted

$       (2.32)

$       (0.14)

$       (4.16)

$         0.16

Weighted-average common shares outstanding

Basic

101,974

99,273

100,975

98,783

Diluted

101,974

100,712

100,975

101,816

 

Digital Turbine, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except par value and share amounts)

March 31, 2024

March 31, 2023

(Unaudited)

ASSETS

Current assets

Cash

$               33,605

$             75,558

Accounts receivable, net

191,015

178,189

Prepaid expenses

7,704

8,589

Other current assets

10,017

3,730

Total current assets

242,341

266,066

Property and equipment, net

45,782

39,327

Right-of-use assets

9,127

10,073

Intangible assets, net

313,505

379,632

Goodwill

220,072

561,576

Other non-current assets

34,713

9,882

TOTAL ASSETS

$             865,540

$        1,266,556

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable

$             159,200

$           119,338

Accrued revenue share

33,934

69,221

Accrued compensation

7,209

10,984

Other current liabilities

35,681

21,377

Total current liabilities

236,024

220,920

Long-term debt, net of debt issuance costs

383,490

410,522

Deferred tax liabilities, net

20,424

13,940

Other non-current liabilities

11,670

13,919

Total liabilities

651,608

659,301

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; 102,877,057 issued and 102,118,932 outstanding at
March 31, 2024; 100,216,494 issued and 99,458,369 outstanding at March 31, 2023

10

10

Additional paid-in capital

858,191

822,217

Treasury stock (758,125 shares at March 31, 2024 and March 31, 2023)

(71)

(71)

Accumulated other comprehensive loss

(48,955)

(41,945)

Accumulated deficit

(595,343)

(175,115)

Total stockholders’ equity

213,932

605,196

Non-controlling interest

—

2,059

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$             865,540

$        1,266,556

 

Digital Turbine, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

Three months ended March 31,

2024

2023

Cash flows from operating activities:

Net (loss) income

$        (236,506)

$          (13,853)

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

Depreciation and amortization

20,924

20,926

Non-cash interest expense

(531)

217

Allowance for credit losses

627

319

Stock-based compensation expense

6,743

10,758

Right-of-use asset

361

793

Deferred income taxes

15,909

(3,545)

Foreign exchange transaction (gain) loss

54

(1,607)

Impairment of goodwill

189,459

—

(Increase) decrease in assets:

Accounts receivable, gross

25,176

51,077

Prepaid expenses

2,920

1,595

Other current assets

(220)

17,809

Other non-current assets

(190)

(736)

Increase (decrease) in liabilities:

Accounts payable

108

(34,718)

Accrued revenue share

(32,119)

(5,678)

Accrued compensation

(111)

(5,097)

Other current liabilities

(2,628)

(21,828)

Other non-current liabilities

(1,732)

(570)

Net cash provided by (used in) operating activities

(11,756)

15,862

Cash flows from investing activities

Equity investments

(9,956)

(4,499)

Capital expenditures

(6,895)

(5,260)

Net cash used in investing activities

(16,851)

(9,759)

Cash flows from financing activities

Proceeds from borrowings

25,000

7,500

Payment of debt issuance costs

—

(5)

Repayment of debt obligations

(15,000)

(19,500)

Payment of withholding taxes for net share settlement of equity awards

(110)

(507)

Options exercised

85

925

Net cash provided by (used in) financing activities

9,975

(11,587)

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

2,772

1,181

Net change in cash and cash equivalents and restricted cash

(15,860)

(4,303)

Cash and cash equivalents and restricted cash, beginning of period

49,465

79,861

Cash and cash equivalents and restricted cash, end of period

$            33,605

$            75,558

 

REVENUE BY SEGMENT

(in thousands)

(Unaudited)

Three months ended March 31,

Year ended March 31,

2024

2023

% Change

2024

2023

% Change

On Device Solutions

$           78,504

$           96,909

(19) %

$         370,112

$         420,328

(12) %

App Growth Platform

34,437

44,966

(23) %

178,760

252,995

(29) %

Elimination

(718)

(1,757)

(59) %

(4,390)

(7,403)

(41) %

Consolidated

$         112,223

$         140,118

(20) %

$         544,482

$         665,920

(18) %

 

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

(in thousands)

(Unaudited)

Three months ended March 31,

Year ended March 31,

2024

2023

2024

2023

Net revenue

$      112,223

$      140,118

$      544,482

$      665,920

(Loss) income from operations

(207,839)

(9,149)

(374,438)

46,165

Add-back items:

Product development

11,284

13,399

54,157

56,486

Sales and marketing

15,935

15,278

61,481

63,295

General and administrative

42,278

39,954

169,617

154,282

Depreciation of software included in other direct costs of revenue

208

1,694

4,045

6,275

Impairment of goodwill

189,459

—

336,640

—

Non-GAAP gross profit

$        51,325

$        61,176

$      251,502

$      326,503

Non-GAAP gross profit percentage

46 %

44 %

46 %

49 %

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

(in thousands)

(Unaudited)

Three months ended March 31,

Year ended March 31,

2024

2023

2024

2023

Net (loss) income

$    (236,506)

(13,853)

$    (420,448)

$        16,870

Add-back items:

Stock-based compensation expense

6,743

10,758

33,763

30,401

Amortization of intangibles

16,039

16,126

64,321

64,608

Adjustment to estimated earn-out liability

—

—

(372)

—

Tax adjustment (1)

33,817

—

33,817

—

Business transformation costs

2,127

—

9,418

—

Transaction-related expenses

177

859

338

4,739

Severance costs

710

1,066

2,795

2,176

Impairment of goodwill

189,459

—

336,640

—

Adjustment to acquisition-related liabilities

—

(1,346)

—

(1,346)

Non-GAAP adjusted net income

$        12,566

$        13,610

$        60,272

$      117,448

Non-GAAP adjusted net income per common share

$            0.12

$            0.14

$            0.58

$            1.15

Weighted-average common shares outstanding, diluted

103,451

100,712

103,928

101,816

(1) Valuation allowance

 

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

(in thousands)

(Unaudited)

Three months ended March 31,

Year ended March 31,

2024

2023

2024

2023

Net (loss) income

$        (236,506)

$          (13,853)

$       (420,448)

$           16,870

Add-back items:

Stock-based compensation expense

6,743

10,758

33,763

30,401

Depreciation and amortization

20,924

20,926

83,858

81,073

Interest expense, net

7,938

7,128

30,838

23,352

Other expense, net

261

163

328

(229)

Change in fair value of contingent consideration

—

—

(372)

—

Business transformation costs

2,127

—

9,418

—

Foreign exchange transaction (gain) loss

54

431

(101)

1,026

Income tax provision

20,414

(3,018)

15,317

5,146

Transaction-related expenses

177

859

338

4,739

Severance costs

710

1,066

2,795

2,176

Impairment of goodwill

189,459

—

336,640

—

Adjustment to acquisition-related liabilities

—

(1,346)

—

(1,346)

Non-GAAP adjusted EBITDA

$            12,301

$            23,114

$           92,374

$         163,208

 

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

(in thousands)

(Unaudited)

Three months ended March 31,

2024

2023

Net cash provided by (used in) operating activities

$          (11,756)

$            15,862

Capital expenditures

(6,895)

(5,260)

Transaction-related expenses

177

859

Severance costs

710

1,066

Business transformation costs

2,127

—

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

$          (15,637)

$            12,527

 

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SOURCE Digital Turbine, Inc.

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REWARD ACQUIRES UK’S LEADING HOSPITALITY DATA INSIGHTS COMPANY (HDI) TO ENHANCE COMMERCE MEDIA OFFERING, DELIVERING DEEPER CONSUMER INSIGHTS FOR THE RETAIL SECTOR

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November 14, 2024

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Reward completes acquisition of Hospitality Data Insights (HDI), a UK market-leading data insights company and longtime partnerThe acquisition will strengthen Reward’s Commerce Media proposition, enhancing consumer insights capabilities that unlock growth opportunities for global retail partnersThis acquisition follows a period of strong growth for Reward, further bolstered by recent strategic investment from Experian PLC, A FTSE 25 company, solidifying Reward’s position as a leader in Customer Engagement and Commerce Media

LONDON, Nov. 14, 2024 /PRNewswire/ — Reward, a global leader in Customer Engagement and Commerce Media, today announces the acquisition of Hospitality Data Insights (HDI), a prominent UK-based data insights company and trusted partner. This acquisition is set to further elevate Reward’s Commerce Media capabilities, driving enriched consumer insights for retail and bank partners worldwide.

HDI is known for delivering high-quality, independent data solutions to over 100 global and national brands in the hospitality and convenience sectors, including industry leaders McDonald’s, Pizza Express, and Deliveroo. With a focus on high-spend, high-frequency sectors representing over 20% of household spending, HDI strengthens Reward’s capability to deliver significant consumer value, supporting Reward’s commitment to deliver over £2 billion in rewards by 2025.

By combining HDI’s SKU-level data, product range, pricing insights, and consumer sentiment analysis with Reward’s transactional and behavioural insights, the acquisition enhances Reward’s suite of products for retail marketing, performance optimisation, and operational insights. HDI’s extensive sector expertise and talented team of data analysts add further depth to Reward’s offerings, positioning the company for growth as it establishes itself as the preferred marketing and insights partner. This strategic focus aims to help banks and retailers better understand customers while securing a larger share of marketing budgets.

The all cash acquisition reflects Reward’s period of significant growth. The recent strategic investment from Experian PLC has further enhanced Reward’s consumer insights capabilities, integrating new assets like its Mosaic product. Reward has also expanded its international footprint, with new investment directed at scaling operations in key regions such as Europe, the Middle East and Asia.

Effective immediately, Darroch Bagshaw, Managing Director of HDI, will join Reward’s Leadership Team, reporting to CEO Jamie Samaha. While HDI has been primarily servicing its global brands in the UK, Reward and HDI are well-positioned to scale their enhanced capabilities internationally. The combined efforts will start in the hospitality and convenience sectors and move into other high priority spend categories including convenience and grocery.

Jamie Samaha, CEO of Reward, commented: “In today’s fast-evolving Commerce Media landscape, expanding consumer insights capabilities is more critical than ever. This acquisition of HDI marks a transformative step in our journey to deepen our understanding of consumer behaviour and amplify the value we deliver to our customers, banking partners, and retailers. HDI’s diverse portfolio of leading hospitality brands and innovative insight products opens significant opportunities for us to strengthen our retailer relationships in this key sector, all while driving toward our goal of delivering $2 billion in rewards by 2025.”

Darroch Bagshaw, Managing Director of HDI, added: “HDI’s mission has always been to provide market-leading insights to businesses across the hospitality sector using accurate and actionable data. Reward’s endorsement of our services is testament to our aligned commitment to high quality data analytics that drive investment decisions for the world’s largest retailers. We look forward to combining insights capabilities to provide enriched products and services to retailers and greater value to customers.”

ABOUT REWARD

Reward is a global leader in Customer Engagement and Commerce Media, operating in more than 15 markets across the UK, Europe, the Middle East and Asia. Uniquely positioned at the intersection of banking and retail, Reward’s platform combines technology, data insights and digital marketing to deliver personalised products and services that help brands deepen connections with customers.

As businesses strive to better understand and influence customer behaviour, Reward is poised to lead in the fast-growing commerce media space, offering consumer insights that enhance omnichannel experiences, boost sales and build customer loyalty.

Beyond unifying consumer insight and commerce, Reward is on a mission to make everyday spending more rewarding and every interaction count, delivering billions in rewards to customers.

For more information, please visit www.rewardinsight.com.

ABOUT HDI

Hospitality Data Insights (HDI) is a leading UK insights business, providing independent data insight to global and national brands operating in the UK hospitality sector since 2017, supporting over 100 different clients spanning Pubs & Bars, Restaurants & Casual Dining, QSR, Coffee Shops, Delivery, Convenience, Drinks Suppliers & Manufacturers, Investors and Consulting Firms.

HDI turns vast amounts of high-quality data into meaningful products and services that help operators improve their investment decisions, offer development and customer marketing; and help manufacturers sell and support their brands more effectively

Since late 2022, HDI have extended their capabilities into the UK grocery sector, tracking online pricing for 10 national grocers and monitoring customer spending patterns within over 40,000 individual convenience & grocery stores.

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From Pollution to Restoration: The Art of Living’s Powerful Partnerships to Heal Karnataka

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November 14, 2024

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BENGALURU, India, Nov. 14, 2024 /PRNewswire/ — On November 11, 2024, The Art of Living Social Projects signed a landmark Memorandum of Understanding (MoU) with Bangalore University, the Environmental Management and Policy Research Institute (EMPRI), and the Department of Forest Ecology and Environment, Government of Karnataka. This marks a powerful new chapter in advancing environmental sustainability and climate action through rigorous research, community-driven initiatives, and participatory governance. Rooted in Gurudev Sri Sri Ravi Shankar’s vision, The Art of Living Social Projects’ methodology is holistic, nature-centred and emphasises hands-on community involvement to create tangible and lasting change.

The organisation brings extensive expertise in programme management and Corporate Social Responsibility (CSR) engagement to the partnership, which aims to address some of Karnataka’s most pressing environmental challenges. At the top of the agenda is an ambitious plan to clean and restore the heavily polluted Vrishabhavathi River, which flows through Bangalore University’s campus. 

Reviving the Vrishabhavathi River Through Nature-Based Solutions (NBS)

Traditional approaches to river restoration often fall short when faced with severe pollution, requiring more innovative strategies. This is precisely where the Art of Living Social Projects’ Nature-Based Solutions come into play. Leveraging natural elements like microorganisms, plants, and algae; NBS techniques use bioremediation and phytoremediation to detoxify the water. Microbial communities work to break down pollutants, while specially chosen plants absorb harmful substances. 

In addition to these natural detoxifiers, aeration plays a crucial role by oxygenating the water, which helps revitalise aquatic habitats and promotes the overall health of the ecosystem. These initiatives demonstrate the organisation’s dedication to lasting environmental interventions and will be utilised in the restoration of the Vrishabhavathi River.

Tackling Broader Environmental Challenges in Karnataka

The MoU extends far beyond river restoration to addressing other urgent environmental issues such as deforestation, air and water pollution, waste management, and ecosystem conservation. The alliance plans to drive change through joint research projects, workshops, and seminars, offering hands-on training and creating educational opportunities that empower the next generation of environmental leaders.

Bridging Academic Research and Practical Implementation

The MoU draws on the unique strengths of each partner. Bangalore University brings academic depth, while EMPRI contributes expertise in policy research. The Art of Living Social Projects’ extensive experience with large-scale projects  and community engagement rounds out this powerful team. The synergy facilitates the implementation of evidence-based plans that are not only effective but also engage the community in enduring practices.

Empowering Communities for Lasting Change

The MoU also reflects a commitment to participatory governance, a principle close to The Art of Living’s ethos. Shared Sri Prasana Prabhu, Chairman of The Art of Living Social Projects, “We believe that sustainability must be rooted in the participatory governance framework. This MoU allows us to deepen our engagement and leverage our resources to empower academia and civil society organisations towards sustainable practices.”

A Model for Environmental Protection

A new standard in environmental governance and action will be set by this collaboration. By bridging academic research with practical, community-driven game plans, it presents a model that could inspire similar initiatives in other regions. As this collaborative effort unfolds, The Art of Living Social Projects, Bangalore University, EMPRI, and the Department of Forest, Ecology, and Environment are poised to make significant strides in tackling Karnataka’s environmental challenges, from cleaner rivers to thriving ecosystems.

Through this landmark MoU, The Art of Living Social Projects, under the inspiration of Gurudev Sri Sri Ravi Shankar, reaffirms its commitment to nature-driven solutions, working towards a future of cleaner water, healthier ecosystems, and stronger communities.

About The Art of Living Social Projects 

Inspired by the world-renowned humanitarian and spiritual leader Gurudev Sri Sri Ravi Shankar; The Art of Living is a global non-profit organisation dedicated to peace, well-being, and humanitarian service. Committed to holistic development, The Art of Living champions various initiatives, including water conservation, sustainable agriculture, afforestation, free education, skill development, women empowerment, integrated village development, renewable energy and waste management. Through these multifaceted efforts, The Art of Living strives to create positive social and environmental impact, fostering a more sustainable and harmonious future for all.

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CIOs Struggle to Define AI Value For Their Business as They Continue to Invest in New Projects

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November 14, 2024

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Tech leaders are divided on whether AI investments should boost productivity, revenue, or worker satisfaction

SAN FRANCISCO, Nov. 14, 2024 /PRNewswire/ — New research from revenue intelligence leader Gong reveals widely varying viewpoints among CIOs and other tech leaders over how to evaluate the success of AI projects. Surveying over 500 CIOs and heads of IT across the UK and US, the findings illustrate the challenge many businesses face when it comes to strategically implementing AI and the uncertainty in measuring whether those AI investments are paying off.

While over half of CIOs (53 percent) prioritize productivity gains, an equal proportion focus on revenue growth as their key success metrics, with worker satisfaction trailing closely behind (46 percent). This divergence underscores a broader challenge: confusion about where AI can deliver the most business value and a well-defined approach for evaluation.

Key insights from the study include:

Revenue Growth vs. Time Savings: 61 percent of global CIOs believe increased revenue alone justifies AI costs, while 60 percent say that time savings alone will justify costs. Yet, only 32 percent actively measure both, suggesting that many companies still don’t have systems in place to measure and assess the impact on the variables they say matter most.A Growing Interest in Predictive AI: While generative AI attracts much of the buzz around the technology, it is not the clear leader among CIOs in terms of driving value. Fifty-four percent of tech leaders prioritize generative AI, 51 percent prioritize automation, and 31 percent prioritize predictive AI. To capitalize on this discord and deliver value across a broad spectrum, AI models must be tuned to support workflow automation and predictive analytics.Adoption of Domain-Specific Solutions: While nearly three-quarters of tech leaders rely on off-the-shelf large language models (LLMs) as part of their AI investments, 58 percent are utilizing domain-specific solutions. These AI tools are trained on industry- and function-specific data to deliver more precise and measurable results.Security is a Key Obstacle…: Security remains a top priority for 68 percent of tech leaders, but 28 percent admit this is where their AI projects most often fall short.…As is Data Integration: Data integration challenges also threaten project success, with 36 percent of CIOs likely to pause initiatives if implementation complexities arise. Without the right underlying data, AI outputs risk delivering little value or, worse, biased or inaccurate results.AI’s Long-Term Value Persists: Despite mixed measurement strategies, only a small fraction (under 20 percent) cited a lack of provable ROI as a reason to abandon AI initiatives, indicating that most companies continue to explore its potential and long-term value.Smaller companies are more eager to prove ROI: Smaller US firms (250-500 employees) are more ROI-focused, with 40 percent willing to halt projects lacking clear ROI, compared to just 19 percent of larger companies. This suggests that while smaller US firms see the value in investing in AI, they need to focus on initiatives that deliver measurable and immediate returns and have less budget for experimentation. In contrast, larger companies might have more capacity to invest in long-term projects without immediate ROI.

“Over the last two years, the AI hype and pace of innovation has created incredible excitement and confusion for CIOs and tech leaders about its potential and where to focus,” said Eilon Reshef, co-founder and Chief Product Officer, Gong. “But one thing is clear: leaders are pursuing value and exploring different areas across the business where AI can have a transformative impact.”

To learn more about the survey’s findings, read the blog.

Methodology
The research was conducted by Censuswide with 573 CIOs/Heads of IT (aged 25+) in medium and large companies who have purchased an off-the-shelf AI application in the last 2 years across the UK and US (250 and 323 respondents respectively) between October 9 -October 16, 2024. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles. Censuswide are also members of the British Polling Council.

About Gong
Gong transforms revenue organizations by driving business efficiency, revenue growth, and improved decision-making. The Revenue Intelligence Platform uses proprietary artificial intelligence technology to enable teams to capture, understand, and act on all customer interactions in a single, integrated platform. Thousands of companies around the world rely on Gong to support their go-to-market strategies and grow revenue efficiently. For more information, visit www.gong.io.

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SOURCE Gong

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