AUSTIN, Texas, Nov. 7, 2017 /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 second quarter ended September 30,
2017.
Recent Highlights:
- Fiscal second quarter revenue totaled $27.9 million, representing 22% year-over-year
growth. Operators & OEMs ("O&O") revenue of $15.9 million in the second quarter of fiscal
2018 was up 61% when compared to the prior year period.
- The Company has surpassed 110 million total devices with Ignite
installed to date. Ignite was installed on 24 million devices in
the September quarter, more than double the number of installs in
the prior year period.
- GAAP net loss for fiscal second quarter was $6.5 million, or ($0.10) per share. Non-GAAP adjusted net
loss1 was $0.6 million, or
($0.01) per share.
- Non-GAAP Adjusted EBITDA2 during the fiscal second
quarter increased to $0.4 million, as
compared to a loss of $3.0 million in
the second quarter of fiscal 2017, with improvement driven
primarily by the combination of higher revenues in the O&O
business and improved operating leverage.
- GAAP gross margin increased to 26% during the second quarter of
fiscal 2018, up from the 14% reported in the second quarter of
fiscal 2017. Non-GAAP adjusted gross margin3 was 29% in
the second quarter of fiscal 2018, as compared to 22% in the second
quarter of fiscal 2017.
- Content revenue of $9.8 million
increased 23% sequentially in the fiscal second quarter of 2018,
marking the third consecutive quarter with double-digit sequential
growth for this business segment.
- The Company had $5.9 million in
cash as of September 30, 2017.
- The gross principal amount of the convertible notes was
$10.0 million as of September 30, 2017, down from $16 million as of June 30,
2017, as $6 million were
converted by convertible note holders in the second quarter of
fiscal 2018.
"The September quarter was another solid quarter for Digital
Turbine," said Bill Stone,
CEO. "The Company made significant progress in a number of
key focus areas. We successfully scaled additional phones and
slots with several partners recently added to our growing platform.
At the same time, we continue to work closely with all of our
partners around the world to develop new products and services
designed to enhance the overall end-user experience while
generating additional sources of high-margin revenue. In
addition to fostering higher engagement levels with existing and
prospective OEM and carrier partners during the quarter, we also
welcomed many well-respected advertisers to our platform, as we
continue to promote awareness for our unique value proposition and
strive to gain share from other less effective and less accountable
modes of mobile advertising in today's marketplace."
"Healthy operating metrics within our O&O business enabled
the Company to achieve increased profitability on a non-GAAP
adjusted EBITDA basis once again during the quarter. Our
primary objective here at Digital Turbine is to utilize the power
of our platform to generate new revenue streams with enhanced
margins, and we are taking important strides toward the realization
of this vision. Furthermore, I am very excited about several
upcoming partner launches and product initiatives currently under
development that have the potential to meaningfully expand the
platform's reach and contribute to the next phase of revenue and
profit growth for Digital Turbine."
Mr. Stone concluded, "I am very pleased with the progress that
we are making as an overall organization right now, and I am more
convinced than ever that Digital Turbine has the platform, the
partners, the people and the passion to deliver a meaningful return
to shareholders in the second half of fiscal 2018 and
beyond."
Fiscal 2018 Second Quarter Financial Results
Total revenue for the second quarter of fiscal 2018 was
$27.9 million, representing an
increase of 22% year-over-year. Advertising segment revenue
of $18.1 million increased 19%
year-over-year. Within Advertising, O&O revenue of
$15.9 million during the second
quarter of fiscal 2018 increased 61% year-over-year. Growth
in the O&O business was attributable to organic growth derived
from pre-existing partners, as well as incremental contributions
from new carrier and OEM partners added to the Ignite platform over
the preceding 12 months. Importantly, the Company has also
benefitted from higher revenue-per-slot rates on new high-end phone
models with its leading tier-one carrier partners, which is
reflective of healthy advertiser demand.
Content revenue for the second quarter of fiscal 2018 of
$9.8 million increased 28%
year-over-year. The continuing rebound in Content revenue reflects
the addition of new merchants and services.
GAAP gross margin was 26% in the second quarter of fiscal 2018,
as compared to 14% in the second quarter of fiscal 2017.
Non-GAAP adjusted gross margin3 was 29% for the
second quarter of fiscal 2018, as compared to 22% in the second
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 43% of total revenue in the
fiscal second quarter of 2017 to 57% of total revenue in the fiscal
second 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 second quarter of fiscal 2018 was $6.5 million, or ($0.10) per share, as compared to the net loss
for the first quarter of fiscal 2018 of $4.2
million, or ($0.06) per
share. Non-GAAP adjusted net loss1 was
$0.6 million, or ($0.01) per share, in the second quarter of
fiscal 2018, as compared to a net loss of $0.9 million, or ($0.01) per share, in the first quarter of fiscal
2018.
Non-GAAP adjusted EBITDA2 for the second quarter of
fiscal 2018 was $0.4 million, as
compared to a loss of $3.0 million
for the second 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 November 7, 2017, the Company expects third
quarter of fiscal 2018 revenue of approximately $31 million, with further sequential improvement
in non-GAAP adjusted EBITDA2. The Company reaffirms its
expectations to generate positive non-GAAP adjusted
EBITDA2 for the full year fiscal 2018.
About Digital Turbine, Inc.
Digital Turbine works 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 700 million 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
first 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 November 14,
2017. The replay can be accessed by dialing 877-344-7529 in
the United States or 412-317-0088
from international locations, passcode 10113911.
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, and Non-GAAP adjusted net income and EPS. 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 loss and EPS are defined as
GAAP net income 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.
Non-GAAP adjusted gross profit and gross margin, adjusted
EBITDA, and Non-GAAP adjusted net income and EPS 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 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
|
|
6 Months
Ended
|
|
6 Months
Ended
|
|
|
September 30,
2017
|
|
September 30,
2016
|
|
September 30,
2017
|
|
September 30,
2016
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Net
revenues
|
|
$
27,891
|
|
$
22,832
|
|
$
54,011
|
|
$
46,871
|
Cost of
revenues
|
|
|
|
|
|
|
|
|
License fees and
revenue share
|
|
19,885
|
|
17,797
|
|
38,766
|
|
37,021
|
Other direct cost of
revenues
|
|
643
|
|
1,882
|
|
1,266
|
|
3,762
|
Total cost of
revenues
|
|
20,528
|
|
19,679
|
|
40,032
|
|
40,783
|
Gross
profit
|
|
7,363
|
|
3,153
|
|
13,979
|
|
6,088
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Product
development
|
|
2,837
|
|
3,117
|
|
5,595
|
|
5,952
|
Sales and
marketing
|
|
1,688
|
|
1,528
|
|
3,246
|
|
2,972
|
General and
administrative
|
|
4,088
|
|
4,815
|
|
7,912
|
|
9,920
|
Total operating
expenses
|
|
8,613
|
|
9,460
|
|
16,753
|
|
18,844
|
Loss from
operations
|
|
(1,250)
|
|
(6,307)
|
|
(2,774)
|
|
(12,756)
|
Interest and other
expense, net
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(662)
|
|
(622)
|
|
(1,369)
|
|
(1,304)
|
Foreign exchange
transaction loss
|
|
(73)
|
|
(1)
|
|
(217)
|
|
(4)
|
Change in fair value
of convertible note
embedded derivative liability
|
|
(3,344)
|
|
(430)
|
|
(4,652)
|
|
(430)
|
Change in fair value
of warrant liability
|
|
(1,164)
|
|
(140)
|
|
(1,628)
|
|
(140)
|
Loss on
extinguishment of debt
|
|
(882)
|
|
(293)
|
|
(882)
|
|
(293)
|
Other
income
|
|
33
|
|
15
|
|
36
|
|
33
|
Total interest and
other expense, net
|
|
(6,092)
|
|
(1,471)
|
|
(8,712)
|
|
(2,138)
|
Loss from operations
before income taxes
|
|
(7,342)
|
|
(7,778)
|
|
(11,486)
|
|
(14,894)
|
Income tax
benefit
|
|
(884)
|
|
(437)
|
|
(853)
|
|
(141)
|
Net loss
|
|
$
(6,458)
|
|
$
(7,341)
|
|
$
(10,633)
|
|
$
(14,753)
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income / (loss)
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
3
|
|
(80)
|
|
(5)
|
|
(53)
|
Comprehensive
loss
|
|
$
(6,455)
|
|
$
(7,421)
|
|
$
(10,638)
|
|
$
(14,806)
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
loss per common share
|
|
$
(0.10)
|
|
$
(0.11)
|
|
$
(0.16)
|
|
$
(0.22)
|
Weighted average
common shares outstanding, basic and diluted
|
66,846
|
|
66,457
|
|
66,723
|
|
66,358
|
Digital Turbine,
Inc. and Subsidiaries
|
Consolidated
Balance Sheets
|
|
(in thousands,
except par value and share amounts)
|
|
|
|
|
|
September 30,
2017
|
|
March 31,
2017
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash
|
$
5,867
|
|
$
6,149
|
Restricted
cash
|
331
|
|
331
|
Accounts receivable,
net of allowances of $832 and $597, respectively
|
23,787
|
|
16,554
|
Deposits
|
117
|
|
121
|
Prepaid expenses and
other current assets
|
444
|
|
510
|
Total current
assets
|
30,546
|
|
23,665
|
Property and
equipment, net
|
2,565
|
|
2,377
|
Deferred tax
assets
|
688
|
|
352
|
Intangible assets,
net
|
3,393
|
|
4,565
|
Goodwill
|
76,621
|
|
76,621
|
TOTAL
ASSETS
|
$
113,813
|
|
$
107,580
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities
|
|
|
|
Accounts
payable
|
$
23,277
|
|
$
19,868
|
Accrued license fees
and revenue share
|
10,442
|
|
8,529
|
Accrued
compensation
|
1,876
|
|
1,073
|
Short-term debt, net
of debt issuance costs of $290 and $0, respectively
|
2,210
|
|
-
|
Other current
liabilities
|
1,194
|
|
1,304
|
Total current
liabilities
|
38,999
|
|
30,774
|
Convertible notes,
net of debt issuance costs and discounts of $3,491 and $6,315,
respectively
|
6,509
|
|
9,685
|
Convertible note
embedded derivative liability
|
5,116
|
|
3,218
|
Warrant
liability
|
2,704
|
|
1,076
|
Other non-current
liabilities
|
241
|
|
782
|
Total
liabilities
|
53,569
|
|
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;
72,396,491 issued and 71,662,035 outstanding at September 30,
2017;
67,329,262 issued and 66,594,807 outstanding at March 31,
2017
|
10
|
|
8
|
Additional paid-in
capital
|
308,415
|
|
299,580
|
Treasury stock
(754,599 shares at September 30, 2017 and March 31,
2017)
|
(71)
|
|
(71)
|
Accumulated other
comprehensive loss
|
(326)
|
|
(321)
|
Accumulated
deficit
|
(247,884)
|
|
(237,251)
|
Total stockholders'
equity
|
60,244
|
|
62,045
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
113,813
|
|
$
107,580
|
Digital Turbine,
Inc. and Subsidiaries
|
Consolidated
Statement of Cash Flows
|
|
(in
thousands)
|
|
|
|
|
|
6 Months
Ended
|
|
6 Months
Ended
|
|
September 30,
2017
|
|
September 30,
2016
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash flows from
operating activities
|
|
|
|
Net loss
|
$
(10,633)
|
|
$
(14,753)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
1,808
|
|
4,199
|
Change in allowance
for doubtful accounts
|
235
|
|
7
|
Amortization of debt
discount and debt issuance costs
|
680
|
|
681
|
Accrued
interest
|
(24)
|
|
(91)
|
Stock-based
compensation
|
1,479
|
|
2,310
|
Stock-based
compensation for services rendered
|
150
|
|
166
|
Change in fair value
of convertible note embedded derivative liability
|
4,652
|
|
430
|
Change in fair value
of warrant liability
|
1,628
|
|
140
|
Loss on
extinguishment of debt
|
882
|
|
293
|
(Increase)/decrease
in assets:
|
|
|
|
Restricted cash
transferred from operating cash
|
-
|
|
(321)
|
Accounts
receivable
|
(7,468)
|
|
35
|
Deposits
|
4
|
|
61
|
Deferred tax
assets
|
(336)
|
|
99
|
Prepaid expenses and
other current assets
|
66
|
|
68
|
Increase/(decrease)
in liabilities:
|
|
|
|
Accounts
payable
|
3,409
|
|
4,771
|
Accrued license fees
and revenue share
|
1,912
|
|
(1,009)
|
Accrued
compensation
|
803
|
|
(280)
|
Other current
liabilities
|
(86)
|
|
(393)
|
Other non-current
liabilities
|
(541)
|
|
20
|
Net cash used in
operating activities
|
(1,380)
|
|
(3,567)
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Capital
expenditures
|
(823)
|
|
(1,115)
|
Net cash used in
investing activities
|
(823)
|
|
(1,115)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Cash received from
issuance of convertible notes
|
-
|
|
16,000
|
Proceeds from
short-term borrowings
|
2,500
|
|
-
|
Options
exercised
|
19
|
|
11
|
Repayment of debt
obligations
|
(247)
|
|
(11,000)
|
Payment of debt
issuance costs
|
(346)
|
|
(2,091)
|
Net cash provided in
financing activities
|
1,926
|
|
2,920
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
(5)
|
|
(53)
|
|
|
|
|
Net change in cash
and cash equivalents
|
(282)
|
|
(1,815)
|
|
|
|
|
Cash and cash
equivalents, beginning of period
|
6,149
|
|
11,231
|
|
|
|
|
Cash and cash
equivalents, end of period
|
$
5,867
|
|
$
9,416
|
|
|
|
|
Supplemental
disclosure of non-cash investing and financing
activities:
|
|
|
|
|
|
|
|
Common stock of the
Company issued for extinguishment of debt
|
$
7,187
|
|
$
-
|
GAAP GROSS MARGIN
TO NON-GAAP GROSS MARGIN
|
|
(in
thousands)
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
September 30,
2017
|
|
June 30,
2017
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenue
|
$
27,891
|
|
$
26,120
|
Gross
profit
|
$
7,363
|
|
$
6,616
|
Gross margin
percentage
|
26%
|
|
25%
|
Add back
items:
|
|
|
|
Amortization of
intangibles
|
$
582
|
|
$
590
|
Depreciation of
software
|
61
|
|
33
|
Non-GAAP gross
profit
|
$
8,006
|
|
$
7,239
|
Non-GAAP gross margin
percentage
|
29%
|
|
28%
|
|
|
|
|
|
|
|
|
GAAP NET LOSS TO
NON-GAAP ADJUSTED EBITDA
|
|
(in
thousands)
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
September 30,
2017
|
|
June 30,
2017
|
|
(Unaudited)
|
|
(Unaudited)
|
Net Loss
|
$
(6,458)
|
|
$
(4,175)
|
Add back
items:
|
|
|
|
Stock and stock
option compensation
|
765
|
|
864
|
Amortization of
intangibles
|
582
|
|
590
|
Depreciation
expense
|
338
|
|
298
|
Interest expense,
net
|
662
|
|
707
|
Other
income
|
(33)
|
|
(3)
|
Change in fair value
of convertible note
embedded derivative liability
|
3,344
|
|
1,308
|
Change in fair value
of warrant liability
|
1,164
|
|
464
|
Loss on
extinguishment of debt
|
882
|
|
-
|
Foreign exchange
transaction loss
|
73
|
|
144
|
Income tax provision
/ (benefit)
|
(884)
|
|
31
|
Non-GAAP Adjusted
EBITDA
|
$
435
|
|
$
228
|
|
|
|
|
|
|
|
|
GAAP NET LOSS TO
NON-GAAP ADJUSTED NET LOSS
|
|
(in
thousands)
|
|
|
3 Months
Ended
|
|
3 Months
Ended
|
|
September 30,
2017
|
|
June 30,
2017
|
|
(Unaudited)
|
|
(Unaudited)
|
Net Loss
|
$
(6,458)
|
|
$
(4,175)
|
Add back
items:
|
|
|
|
Stock and stock
option compensation
|
765
|
|
864
|
Amortization and
impairment of intangibles
|
582
|
|
590
|
Change in fair value
of convertible note
embedded derivative and warrant liability
|
4,508
|
|
1,772
|
Loss on
extinguishment of debt
|
882
|
|
-
|
Tax
adjustment
(1)
|
(848)
|
|
-
|
Non-GAAP Adjusted Net
Loss
|
$
(569)
|
|
$
(949)
|
|
|
|
|
Non-GAAP Adjusted Net
Loss per share
|
$
(0.01)
|
|
$
(0.01)
|
Weighted average
common shares outstanding, basic and diluted
|
66,846
|
|
66,599
|
|
|
|
|
(1) A tax benefit of
$848k resulted during the three months ended September 30, 2017.
These non cash changes to the tax provision and benefit reported in the current quarter
are largely due to updates resulting from finalization of a
transfer pricing study.
|
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SOURCE Digital Turbine, Inc.