Exhibit 99.1

Digital Turbine Reports Fourth Quarter and Fiscal Full Year 2019 Results

Fiscal 2019 Revenue of $103.6 Million Represented 39% Annual Growth

Gross Margin Expansion and Operating Leverage Continue to Drive Improved Profitability

Austin, TX – June 3, 2019 – Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal full year and quarter ended March 31, 2019. 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:

“Fiscal year 2019 was a breakout year for Digital Turbine, with strong growth on both the top-line and the bottom-line” said Bill Stone, CEO.  “During the March quarter, we grew revenues 30% year-over-year and generated more than $3 million in Adjusted EBITDA despite slower smartphone sales in the U.S. during the period. Revenue growth in the quarter was primarily driven by strong revenue-per-device (RPD) with our U.S. partners. Our average RPD with U.S. partners, a key health metric for the business, increased 27% during the March quarter, a testament to the strength of advertiser demand for access to the increasingly valuable device homescreen. We were also very pleased with the profitability metrics realized during the quarter. Notable gross margin expansion and continuing operating leverage led to markedly improved Adjusted EBITDA and Non-GAAP net income during the quarter.” 

“We began fiscal 2019 with a clear primary objective in mind - to firmly establish a scalable, high-growth, sustainably-profitable platform business. Strong demand for an enhanced Digital Turbine platform from carrier, OEM and advertiser partners enabled us to achieve this goal, as we generated nearly $9 million in total adjusted EBITDA during fiscal year 2019 while developing several promising new products and adding valuable new partners such as Samsung that provide strategic catalysts for meaningful future growth. Importantly, we also exited fiscal 2019 with a vastly improved balance sheet with approximately $11 million in cash and zero remaining debt.”

Mr. Stone concluded, “As we embark on fiscal 2020 and page forward to the next stage of growth for Digital Turbine, our primary objective is to efficiently scale the platform. On the business development side, we are actively recruiting additional partners to the platform, with an added emphasis on large international carriers and OEMs who can help to significantly expand our addressable market opportunity overseas. On the product development side, we are continuing to innovate and enact new product features that foster improved levels of conversion and engagement for advertisers, while providing a richer, more pertinent value-added experience for end users. We look forward to providing updates on our progress toward these key objectives as the year plays out. We believe that by continuing to deliver attractive returns for our many platform constituents, we can expect to deliver attractive returns for our investors.”

Fourth Quarter Fiscal 2019 Financial Results

Revenue for the fourth quarter of fiscal 2019 was $27.2 million, representing an increase of 30% year-over-year. Revenue growth was primarily driven by higher revenue-per-device with our large U.S.-based carrier partners, reflecting strong baseline advertiser demand for our platform products. Revenue growth during the March quarter was also supplemented by 129% year-over-year growth in revenue derived from international partners and Open Market devices.

GAAP gross margin was 40% for the fourth quarter of fiscal 2019, as compared to a 33% GAAP gross margin in the fourth quarter of fiscal 2018. Non-GAAP adjusted gross margin⁴ increased to 42% for the fourth quarter of fiscal 2019, as compared to 36% for the fourth quarter of fiscal 2018.

Net loss from continuing operations for the fourth quarter of fiscal 2019 was $6.8 million, or ($0.09) per share, as compared to a net loss from continuing operations for the fiscal fourth quarter of 2018 of $4.2 million, or ($0.06) per share. Non-GAAP adjusted net income¹ for the fourth quarter of fiscal 2019 was $2.4 million, or $0.03 per share, as compared to a Non-GAAP adjusted net loss of $0.6 million, or ($0.01) per share, during the fiscal fourth quarter of 2018.

Non-GAAP adjusted EBITDA² was $3.3 million for the fourth quarter of fiscal 2019, as compared to Non-GAAP adjusted EBITDA of approximately zero for the fourth 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.

Full Year Fiscal 2019 Financial Results

Revenue for fiscal 2019 totaled $103.6 million, representing an increase of 39% year-over-year. Revenue growth during fiscal 2019 was attributable to significantly higher revenue-per-device with our large U.S.-based carrier partners, as well as incremental contributions from international partners and other new partners that launched on the platform during the year.

GAAP gross margin was 34% for fiscal 2019, as compared to the 34% GAAP gross margin in fiscal 2018. Non-GAAP adjusted gross margin⁴ was 36% for fiscal 2019, as compared to 36% in fiscal 2018.

Net loss from continuing operations for fiscal 2019 was $4.3 million, or ($0.06) per share, as compared to a net loss from continuing operations for fiscal 2018 of $19.7 million, or ($0.28) per share. Non-GAAP adjusted net income¹ for fiscal 2019 was $5.9 million, or $0.08 per share, as compared to a Non-GAAP adjusted net loss of $3.6 million, or ($0.05) per share, during fiscal 2018.

Non-GAAP adjusted EBITDA² was $8.9 million for fiscal 2019, as compared to a Non-GAAP adjusted EBITDA loss of $0.2 million in 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 June 3, 2019, the Company expects first quarter fiscal 2020 revenue of between $28.0 million and $28.5 million, and non-GAAP adjusted EBITDA² of between $2.2 million and $2.6 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 associated with warrants issued in connection with 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 fourth quarter and fiscal 2019 financial results and provide operational updates on the business. To participate, interested parties should dial 855-238-2713 in the United States or 412-542-4111 from international locations. A webcast of the conference call will be available at ir.digitalturbine.com/events.

For those who are not able to join the live call, a playback will be available through June 10, 2019. The replay can be accessed by dialing 877-344-7529 in the United States or 412-317-0088 from international locations, passcode 10131961.

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 associated with warrants issued in connection with 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 associated with warrants issued in connection with 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 Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this news release that are not statements of historical fact and that concern future results from operations, financial position, economic conditions, product releases and any other statement that may be construed as a prediction of future performance or events, including financial projections and growth in various products are forward-looking statements that speak only as of the date made and which involve known and unknown risks, uncertainties and other factors which may, should one or more of these risks uncertainties or other factors materialize, cause actual results to differ materially from those expressed or implied by such statements.

These factors and risks include:

You should not place undue reliance on these forward-looking statements.  The Company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Investor Relations 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

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Digital Turbine, Inc. and Subsidiaries

Consolidated Statement of Cash Flows

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GAAP GROSS MARGIN TO NON-GAAP GROSS MARGIN

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

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(1) Non-cash charges to the tax provision / (benefit) are largely due to updates resulting from finalization of a transfer pricing study

GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA

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

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