Exhibit 99.1

Digital Turbine Reports Fiscal 2020 First Quarter Results

Revenue of $30.6 Million Represented 38% Annual Growth

Accelerated Revenue and Gross Profit Growth Drove Higher Profitability

Austin, TX – August 5, 2019 – Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal first quarter ended June 30, 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:

“We are out of the gates strong as we begin our fiscal 2020,” said Bill Stone, CEO.  “We have a lot of momentum, as not only did our results for the fiscal first quarter comfortably exceed our internal expectations driven largely by stronger revenue-per-device (“RPD”) metrics during the latter half of the quarter, but we also made significant operational progress with valuable new partners and strategic platform initiatives that should help propel our growth in future quarters and years. We managed to accelerate our year-over-year revenue growth to 38% and our Non-GAAP gross profit growth to 78% in the June quarter, as compared to 30% revenue growth and 50% Non-GAAP gross profit growth in the preceding March quarter. This strong top-line momentum, along with continuing operating leverage, led to the generation of $4.2 million in Adjusted EBITDA and $4.3 million in free cash flow during the quarter, which in turn helped us further bolster a balance sheet that comprised of more than $16 million in cash and zero debt as of quarter-end.”

Mr. Stone concluded, “I remain highly encouraged by the inherent momentum of our increasingly differentiated platform offering and the deep collaboration shown by our valued operator and OEM partners. While I am certainly proud of our strong financial results, our focus remains single-mindedly on effectively positioning and scaling the platform to ensure future success for our business and that of our partners. We are continuing to aggressively recruit additional carriers and OEMs to further expand our scale and global footprint. At the same time, we are continuing to work collaboratively with existing partners and advertiser clients to develop innovative new platform features designed to drive added monetization via higher levels of conversion and engagement for advertisers and end users alike. I look forward to providing real-time updates on our progress toward these core objectives as fiscal 2020 matures.”

Fiscal First Quarter Financial Results

Revenue for the first quarter of fiscal 2020 was $30.6 million, representing an increase of 38% year-over-year. Revenue growth was primarily driven by higher revenue-per-device with our large U.S.-based carrier partners, reflecting strong advertiser demand for Dynamic Installs as well as incremental contributions from other, newer platform products.

GAAP gross margin was 39% for the first quarter of fiscal 2020, as compared to a 29% GAAP gross margin in the first quarter of fiscal 2019. Non-GAAP adjusted gross margin⁴ increased to 40% for the first quarter of fiscal 2020, as compared to 31% for the first quarter of fiscal 2019.

Net loss from continuing operations for the first quarter of fiscal 2020 was $1.7 million, or ($0.02) per share, as compared to a net income from continuing operations for the first quarter of fiscal 2019 of $1.5 million, or $0.02 per share. Non-GAAP adjusted net income¹ for the first quarter of fiscal 2020 was $4.2 million, or $0.05 per share, as compared to a Non-GAAP adjusted net loss of $0.6 million, or ($0.01) per share, during the first quarter of fiscal 2019.

Non-GAAP adjusted EBITDA² was $4.2 million for the first quarter of fiscal 2020, as compared to Non-GAAP adjusted EBITDA of $0.2 million for the first quarter of fiscal 2019. 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 Cash Flows below.

Business Outlook

Based on information available as of August 5, 2019, the Company expects second quarter fiscal 2020 revenue of between $31 million and $32 million, and non-GAAP adjusted EBITDA² of between $3.2 million and $3.7 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 outstanding 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 first 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 August 12, 2019. The replay can be accessed by dialing 877-344-7529 in the United States or 412-317-0088 from international locations, passcode 10133868.

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, severance, 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, severance, the change in fair value of derivatives associated with warrants issued in connection with the September 2016 convertible notes offering, other income / (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 Income / (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 Statements of Cash Flows

(in thousands)

GAAP GROSS MARGIN TO NON-GAAP GROSS MARGIN

(in thousands)

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

(in thousands)      

GAAP NET INCOME / (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)