Exhibit 99.1 

Digital Turbine Reports Fiscal 2019 Third Quarter Results

Revenue from Continuing Operations of $30.4 Million Represented 34% Annual Growth

Gross Margin Expansion and Operating Leverage Drove Higher Net Income and Cash Flow

Austin, TX – February 5, 2019 – Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal third quarter ended December 31, 2018. All operating results discussed below, except as otherwise specifically noted, refer only to the continuing operations of the Company, and all comparisons to prior periods have been adjusted to reflect only continuing operations.

Recent Highlights:

“Our December quarter was easily the strongest in the Company’s history across a wide range of operational and financial metrics,” said Bill Stone, CEO. “More impressively, we were able to deliver these strong quarterly results amid a relatively weak U.S. smartphone market, which we believe is a direct testament to the growing value that we bring to advertisers, operators and device OEMs. We witnessed higher revenue-per-slot on a comparable ‘same-store sales’ basis, modest slot accretion with select partners, and greater contribution from new products outside of Dynamic Installs. In addition to the organically-driven growth with our relatively mature U.S. carrier partners, we also benefitted from nearly 100% annual growth with our international partners and the launch of a new partner in the U.S. The added diversification from new products and partners was vital to driving meaningfully higher margins and greater profitability in the quarter. Our Non-GAAP adjusted EBITDA from continuing operations of $3.8 million in the December quarter came in well ahead of our expectations and represents definitive progress relative to a comparable EBITDA figure of roughly zero in the prior year period.”

Mr. Stone concluded, “Solid execution over the past twelve months has positioned the Company well for continuing growth and expanding profitability going forward. During the second half of calendar 2018, we successfully renewed our partnership agreements with several of our most valued carrier partners, including Verizon, AT&T Wireless and Cricket Wireless. Additionally, we added several high-profile advertisers, including Netflix and LinkedIn, to our newly-enhanced product platform, and we signed a new multi-year partnership agreement with Samsung to accelerate our global expansion and to more effectively capitalize on the burgeoning unlocked devices opportunity around the world. All of this sets the stage for the next phase of growth at Digital Turbine as we work diligently with all of our partners, existing and prospective, to maximize the addressable market opportunity for the Digital Turbine Mobile Delivery Platform.”

Third Quarter Fiscal 2019 Financial Results

Revenue for the fiscal third quarter of 2019 was $30.4 million, representing an increase of 34% year-over-year. Revenue growth was primarily driven by significantly higher revenue-per-device with our larger U.S.-based carrier partners, reflective of strong advertiser demand for our Dynamic Installs and other products recently added to the platform. Revenue growth was also attributable to incremental contributions from international partners and other new partners that launched on the platform in fiscal 2019.

GAAP gross margin was 35% for the third quarter of fiscal 2019, as compared to a 33% GAAP gross margin in the fiscal third quarter of 2018. Non-GAAP adjusted gross margin⁴ was 37% for the fiscal third quarter of 2019, as compared to 34% for the fiscal third quarter of 2018.

Net loss from continuing operations for the third quarter of fiscal 2019 was $1.1 million, or ($0.01) per share, as compared to a net loss from continuing operations for the fiscal third quarter of 2018 of $4.8 million, or ($0.07) per share. Non-GAAP adjusted net income¹ for the third quarter of fiscal 2019 was $3.0 million, or $0.04 per share, as compared to a Non-GAAP adjusted net loss of $0.8 million, or ($0.01) per share, during the fiscal third quarter of 2018.

Non-GAAP adjusted EBITDA² was $3.8 million for the third quarter of fiscal 2019, as compared to Non-GAAP adjusted EBITDA of $0.0 million for the third quarter of fiscal 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 Income/(Loss) below.

Business Outlook

Based on information available as of February 5, 2019, the Company expects full-year fiscal 2019 revenue between $102.5 million and $103.5 million, and non-GAAP adjusted EBITDA² between $7.3 million and $7.8 million. It is not reasonably practicable to provide a business outlook for GAAP net income from continuing operations because the Company cannot reasonably estimate the changes in the fair value of derivatives and warrants related to the September 2016 convertible notes offering, which are directly impacted by changes in the Company’s stock price.

About Digital Turbine, Inc.

Digital Turbine innovates 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 worldwide, 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 and Tel Aviv. For additional information visit www.digitalturbine.com.

Conference Call

Management will host a conference call today at 4:30 p.m. ET to discuss its second quarter financial results and provide operational updates on the business. To participate, interested parties should dial 855-238-2713 in the United States or 412-542-4111 from international locations. A webcast of the conference call will be available at ir.digitalturbine.com/events.

For those who are not able to join the live call, a playback will be available through February 12, 2019. The replay can be accessed by dialing 877-344-7529 in the United States or 412-317-0088 from international locations, passcode 10128183.

The conference call will discuss guidance and other material information.

Use of Non-GAAP Financial Measures

To supplement the Company’s condensed consolidated 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 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 loss on extinguishment of debt. Readers are cautioned that Non-GAAP adjusted net income/(loss) 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/(loss) excluding the following cash and non-cash expenses: interest expense, foreign exchange transaction loss/(gain), income tax provision/(benefit), 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 expense, and a 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 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.

⁴Non-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 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, Non-GAAP adjusted EBITDA, Non-GAAP adjusted net income / (loss) and EPS, and Non-GAAP 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:

Investor Relations Contacts:

Brian Bartholomew
Digital Turbine
brian.bartholomew@digitalturbine.com

SOURCE Digital Turbine, Inc.

Digital Turbine, Inc. and Subsidiaries

Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except per share amounts)

Digital Turbine, Inc. and Subsidiaries

Consolidated Balance Sheets

(in thousands, except par value and share amounts)

Digital Turbine, Inc. and Subsidiaries

Consolidated Statement of Cash Flows

(in thousands)       

GAAP GROSS MARGIN TO NON-GAAP GROSS MARGIN

(in thousands)

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

(in thousands)

GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA

(in thousands)

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

(in thousands)