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Digital Turbine Reports Fiscal 2022 Third Quarter Financial Results
Third Quarter Revenue Totaled $375.5 Million, Representing Year-over-Year Growth of 324% on an As-Reported Basis and Year-over-Year Growth of 38% on a Pro Forma Basis
Strong Top-Line Growth and Operating Leverage Continue to Drive Significant Profitability Growth and Free Cash Flow Generation
Integrated End-to-End Platform Positioned to Address Greatly Expanded Market Opportunity
Austin, TX – February 8, 2022 – Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal third quarter ended December 31, 2021. The Company completed the acquisitions of AdColony Holdings AS and Fyber N.V. on April 29 and May 25, 2021, respectively. Specific references made to “pro forma” results in this release provide investors with quarterly results and comparisons as if all acquired businesses were owned for the entirety of the third quarter of fiscal 2021. The Company believes that pro forma results, where applicable, can provide investors with more relevant year-over-year comparisons. The reconciliations between the pro forma and GAAP financial results for the relevant periods are provided in the tables following the Unaudited Consolidated Statements of Cash Flows below.
Recent Financial Highlights:
•Fiscal third quarter of 2022 revenue totaled $375.5 million, representing a 324% increase year-over-year on an as-reported basis and a 38% increase year-over-year as compared to the comparable pro forma figure for the fiscal third quarter of 2021.
•GAAP net income for the fiscal third quarter of 2022, inclusive of a $18.2 million fair value adjustment to the contingent acquisition-related earn-outs, was $7.1 million, or $0.07 per share, as compared to GAAP net income of $14.5 million, or $0.15 per share for the fiscal third quarter of 2021. Non-GAAP adjusted net income1 for the fiscal third quarter of 2022 was $50.9 million, or $0.49 per share, as compared to Non-GAAP adjusted net income of $20.0 million, or $0.21 per share, in the fiscal third quarter of 2021.
•Non-GAAP adjusted EBITDA2 for the fiscal third quarter of 2022 was $57.0 million, representing growth of 153% as compared to Non-GAAP adjusted EBITDA of $22.5 million in the fiscal third quarter of 2021.
“Very few companies can walk and chew gum at the same time,” said Bill Stone, CEO. “We made material progress on our integration strategy in the December quarter, while simultaneously delivering record financial results. Many companies experience difficulties in the present with their execution, because they are overly focused on building the future, or vice versa. I’m proud of our team’s hustle and ability to do both. Integration for the future and execution in the present are becoming core competencies of Digital Turbine.”
“Top-line growth of 324% and 38%, on an as-reported basis and pro forma basis, respectively, is certainly a great result, but I am even more encouraged by the continued operating leverage exhibited by the business model. Non-GAAP adjusted EBITDA of more than $57 million during the December quarter increased by 153% on a year-over-year basis, and Non-GAAP adjusted EPS of $0.49 during the December quarter increased by 133% on a year-over-year basis.”


Digital Turbine Reports Fiscal 2022 Third Quarter Financial Results
February 8, 2022
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Mr. Stone concluded, “Calendar 2021 was a pivotal year for Digital Turbine, during which we strategically re-positioned the Company to leverage its inherent on-device competitive advantages to more effectively capitalize on a significantly expanded market opportunity in calendar 2022 and beyond. We are already seeing both revenue and cost synergies from our acquisitions bearing fruit and it is early days. Our strategy is winning in the marketplace. I am grateful for the hard work and shared dedication exhibited by all of Digital Turbine’s employees, O&O partners and platform advertisers."
Fiscal 2022 Third Quarter Financial Results
Total revenue for the third quarter of fiscal 2022 was $375.5 million. Total “On-Device Media” revenue, which represents revenue derived from the Company’s Application Media and Content Media platform products before intercompany eliminations, increased 43% year-over-year to $133.6 million. Before intercompany eliminations, total revenue from our two “In-App Media” segments, which represents revenue derived from the Fyber and AdColony businesses, increased 40% year-over-year on a pro forma basis to $251.7 million. Fyber contributed $157.4 million during the quarter, while AdColony contributed $94.3 million during the quarter.
GAAP net income for the fiscal third quarter of 2022, inclusive of a $18.2 million fair value adjustment to the contingent acquisition-related earn-outs, was $7.1 million, or $0.07 per share, as compared to GAAP net income of $14.5 million, or $0.15 per share for the third quarter of fiscal 2021. Non-GAAP adjusted net income1 for the third quarter of fiscal 2022 was $50.9 million, or $0.49 per share, as compared to Non-GAAP adjusted net income of $20.0 million, or $0.21 per share, in the third quarter of fiscal 2021.
Non-GAAP adjusted EBITDA2 for the third quarter of fiscal 2022 was $57.0 million, representing an increase of 153% year-over-year when compared to Non-GAAP adjusted EBITDA of $22.5 million in the third quarter of fiscal 2021. 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 February 8, 2022, the Company currently expects the following for the full-year fiscal 2022 period:
•Revenue of between $1.225 billion and $1.240 billion
•Non-GAAP adjusted EBITDA2 of between $195 million and $197 million
•Non-GAAP adjusted EPS1 of between $1.66 and $1.68, based on approximately 105 million diluted shares outstanding and an effective tax rate of 20% on non-GAAP net income in the fiscal fourth quarter
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, any adjustment to the contingent earn-out provisions, which will continue to be adjusted to fair value through the end of the earn-out periods, or other items that are difficult to predict with precision.

Digital Turbine Reports Fiscal 2022 Third Quarter Financial Results
February 8, 2022
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About Digital Turbine, Inc.
Digital Turbine is the leading independent mobile growth platform and levels up the landscape for advertisers, publishers, carriers and OEMS. By integrating a full ad stack with proprietary technology built into devices by wireless operators and OEMs, Digital Turbine supercharges advertising and monetization. The company is headquartered in Austin, Texas, with global offices in New York, Los Angeles, San Francisco, London, Berlin, Singapore, Tel Aviv and other cities serving top agency, app developer and advertising markets. For additional information visit www.digitalturbine.com.
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Conference Call
Management will host a conference call today at 4:30 p.m. ET to discuss its fiscal 2022 third 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 15, 2022. The replay can be accessed by dialing 877-344-7529 in the United States or 412-317-0088 from international locations, passcode 1972027.
The conference call will discuss forward guidance and other material information.
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”) and non-GAAP adjusted EBITDA. 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.

Digital Turbine Reports Fiscal 2022 Third Quarter Financial Results
February 8, 2022
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1Non-GAAP adjusted net income and EPS are defined as GAAP net income and EPS adjusted to exclude the effect of stock-based compensation, amortization of intangibles, adjustments in the fair value of earn-out liabilities associated with acquisitions, and transaction-related expenses and compensation costs. 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: net interest income/(expense), adjustments in the fair value of earn-out liabilities associated with acquisitions, income tax provision, depreciation and amortization, stock-based compensation expense, amortization of intangibles, foreign exchange, transaction gains/(losses), and transaction-related expenses and compensation costs. 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.
Non-GAAP 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 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:
•a decline in general economic conditions nationally and internationally
•decreased market demand for our products and services
•market acceptance and brand awareness of our products
•risks associated with indebtedness
•the ability to comply with financial covenants in outstanding indebtedness
•the ability to protect our intellectual property rights
•risks associated with adoption of our platform among existing customers (including the impact of possible delays with major carrier and OEM partners in the roll out for mobile phones deploying our platform)
•actual mobile device sales and sell-through where our platform is deployed is out of our control
•risks associated with our ability to manage the business amid the COVID-19 pandemic
•the impact of COVID-19 on our partners, digital advertising spend and consumer purchase behavior
•the impact of COVID-19 on our results of operations

Digital Turbine Reports Fiscal 2022 Third Quarter Financial Results
February 8, 2022
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•risks associated with new privacy laws, such as the European Union’s GDPR and similar laws which may require changes to our development and user interface for certain functionality of our mobile platform
•risks associated with the activities of advertisers
•risks associated with the timing of our platform 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 our platform
•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 our platform slots across US carrier partners
•required customization and technical integration which may slow down time to revenue notwithstanding the existence of a distribution agreement
•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
•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)
•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
•technology management risk as the Company needs to adapt to a rapidly developing mobile device marketplace, complex specifications of different carriers and the management of a complex technology platform given the Company's relatively limited resources
•system security risks and cyberattacks
•risks and uncertainties associated with the integration of the acquisition of AdColony, including our ability to realize the anticipated benefits of the acquisition
•risks and uncertainties associated with the integration of the acquisition of Fyber, including our ability to realize the anticipated benefits of the acquisition and the satisfaction of related earn-out provisions
•risks associated with the failure or inability to pay the future consideration due in the Fyber acquisition
•challenges and risks associated with our rapid growth by acquisitions and resulting significant demands on our management and infrastructure
•challenges and risks associated with our global operations and related business, political, regulatory, operational, financial, and economic risks as a result of our global operations

Digital Turbine Reports Fiscal 2022 Third Quarter Financial Results
February 8, 2022
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•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 Contact:
Brian Bartholomew
Digital Turbine, Inc.
brian.bartholomew@digitalturbine.com
SOURCE Digital Turbine, Inc.
Digital Turbine, Inc.

Digital Turbine Reports Fiscal 2022 Third Quarter Financial Results
February 8, 2022
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Digital Turbine, Inc. and Subsidiaries
Consolidated Statements of Operations and Comprehensive Income
(in thousands, except per share amounts)
Three months ended December 31,
20212020
Net revenue$375,487 $88,592 
Costs of revenue and operating expenses
License fees and revenue share267,722 50,144 
Other direct costs of revenue5,125 749 
Product development17,720 5,202 
Sales and marketing15,857 5,219 
General and administrative39,924 6,761 
Total costs of revenue and operating expenses346,348 68,075 
Income from operations29,139 20,517 
Interest and other income / (expense), net
Change in fair value of contingent consideration(18,200)(4,662)
Interest expense, net(2,195)(266)
Foreign exchange transaction gain2,122 — 
Other expense, net(86)(13)
Total interest and other income / (expense), net(18,359)(4,941)
Income before income taxes10,780 15,576 
Income tax provision3,718 1,061 
Net income7,062 14,515 
Less: net income / (loss) attributable to non-controlling interest48 — 
Net income attributable to Digital Turbine, Inc.7,014 14,515 
Other comprehensive loss
Foreign currency translation adjustment(8,389)(132)
Comprehensive income / (loss)(1,327)14,383 
Less: comprehensive loss attributable to non-controlling interest(11)— 
Comprehensive income / (loss) attributable to Digital Turbine, Inc.$(1,316)$14,383 
Net income per common share
Basic$0.07 $0.16 
Diluted$0.07 $0.15 
Weighted-average common shares outstanding
Basic96,548 89,003 
Diluted103,287 96,976 

Digital Turbine Reports Fiscal 2022 Third Quarter Financial Results
February 8, 2022
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Digital Turbine, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except par value and share amounts)
December 31, 2021March 31, 2021
(Unaudited)
ASSETS
Current assets
Cash$115,046 $30,778 
Restricted cash394 340 
Accounts receivable, net291,200 61,985 
Prepaid expenses and other current assets21,928 4,282 
Total current assets428,568 97,385 
Property and equipment, net25,862 13,050 
Right-of-use assets16,657 3,495 
Intangible assets, net446,535 53,300 
Goodwill554,975 80,176 
Deferred tax assets, net— 12,963 
Other non-current assets883 — 
TOTAL ASSETS$1,473,480 $260,369 
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities
Accounts payable$171,562 $34,953 
Accrued license fees and revenue share111,173 46,196 
Accrued compensation37,106 9,817 
Acquisition purchase price liabilities253,700 — 
Short-term debt12,501 14,557 
Other current liabilities23,586 5,626 
Total current liabilities609,628 111,149 
Long-term debt, net of debt issuance costs341,590 — 
Deferred tax liabilities, net18,856 — 
Other non-current liabilities17,540 4,108 
Total liabilities987,614 115,257 
Commitments and contingencies (Note 13)
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; 97,471,352 issued and 96,731,227 outstanding at December 31, 2021; 90,685,553 issued and 89,949,847 outstanding at March 31, 202110 10 
Additional paid-in capital740,592 373,310 
Treasury stock (758,125 shares at December 31, 2021 and March 31, 2021)(71)(71)
Accumulated other comprehensive loss(45,051)(903)
Accumulated deficit(211,888)(227,334)
Total stockholders' equity483,692 145,112 
Non-controlling interest2,174 — 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$1,473,480 $260,369 

Digital Turbine Reports Fiscal 2022 Third Quarter Financial Results
February 8, 2022
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Digital Turbine, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)
Three months ended December 31,
20212020
(Unaudited)(Unaudited)
Cash flows from operating activities
Net income7,062 14,515 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization15,965 1,821 
Non-cash interest expense202 19 
Stock-based compensation expense5,739 160 
Change in fair value of contingent consideration18,200 4,662 
Right-of-use asset1,319 186 
Deferred income taxes4,621 — 
Payment of contingent consideration in excess of amount capitalized at acquisition— (5,419)
Foreign exchange transaction (gain) / loss(1,603)— 
(Increase) / decrease in assets:
Accounts receivable, gross(42,680)(13,011)
Allowance for credit losses443 257 
Prepaid expenses and other current assets(843)61 
Other non-current assets(21)— 
Increase / (decrease) in liabilities:
Accounts payable(13,209)(2,213)
Accrued license fees and revenue share27,995 13,988 
Accrued compensation12,188 2,804 
Other current liabilities(1,529)1,268 
Other non-current liabilities1,859 (152)
Net cash provided by operating activities35,708 18,946 
Cash flows from investing activities
Business acquisitions, net of cash acquired(136)— 
Capital expenditures(5,281)(2,366)
Net cash used in investing activities(5,417)(2,366)
Cash flows from financing activities
Proceeds from borrowings102,779 — 
Payment for debt issuance costs(1,056)— 
Payment of contingent consideration— (7,655)
Payment of deferred business acquisition consideration(98,175)— 
Options and warrants exercised659 2,399 
Payment of withholding taxes for net share settlement of equity awards(7,587)— 
Repayment of debt obligations(6,367)(500)
Net cash used in financing activities(9,747)(5,756)
Effect of exchange rate changes on cash(1,321)(132)
Net change in cash19,223 10,692 
Cash and restricted cash, beginning of period96,217 32,967 
Cash and restricted cash, end of period$115,440 $43,659 

Digital Turbine Reports Fiscal 2022 Third Quarter Financial Results
February 8, 2022
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PRO FORMA REVENUE
(in thousands)
(Unaudited)
Three months ended December 31,
20212020% Change
On Device Media$133,594 $93,403 43 %
In App Media - AdColony94,335 73,909 28 %
In App Media - Fyber157,380 106,361 48 %
Elimination(9,822)(2,138)359 %
Consolidated$375,487 $271,535 38 %
GAAP INCOME FROM OPERATIONS TO NON-GAAP GROSS PROFIT
(in thousands)
(Unaudited)
Three months ended December 31,
20212020
Net revenue$375,487 $88,592 
Income from operations29,139 20,517 
Add-back items:
Product development17,720 5,202 
Sales and marketing15,857 5,219 
General and administrative39,924 6,761 
Depreciation of software included in other direct costs of revenue753 748 
Non-GAAP gross profit$103,393 $38,447 
Non-GAAP gross profit percentage28 %43 %
GAAP NET INCOME TO NON-GAAP ADJUSTED NET INCOME
(in thousands)
(Unaudited)
Three months ended December 31,
20212020
Net income$7,062 $14,515 
Add-back items:
Stock-based compensation expense5,739 160 
Amortization of intangibles13,773 670 
Change in fair value of contingent consideration18,200 4,662 
Transaction-related expenses and compensation costs6,167 12 
Non-GAAP adjusted net income$50,941 $20,019 
Non-GAAP adjusted net income per share$0.49 $0.21 
Weighted-average common shares outstanding, diluted103,287 96,976 

Digital Turbine Reports Fiscal 2022 Third Quarter Financial Results
February 8, 2022
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GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDA
(in thousands)
(Unaudited)
Three months ended December 31,
20212020
Net income$7,062 $14,515 
Add-back items:
Stock-based compensation expense5,739 160 
Amortization of intangibles13,773 670 
Depreciation expense2,192 1,151 
Interest expense, net2,195 266 
Other expense, net86 13 
Change in fair value of contingent consideration18,200 4,662 
Foreign exchange transaction gain(2,122)— 
Income tax provision3,718 1,061 
Transaction-related expenses and compensation costs6,167 12 
Non-GAAP adjusted EBITDA$57,010 $22,510 
GAAP CASH FLOW FROM OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW
(in thousands)
(Unaudited)
Three months ended December 31,
20212020
Net cash provided by operating activities35,708 18,946 
Capital expenditures(5,281)(2,366)
Payment of contingent consideration in excess of amount capitalized at acquisition— 5,419 
Transaction-related expenses and compensation costs6,167 12 
Non-GAAP free cash flow$36,594 $22,011