Good day, and welcome to the Digital Turbine Fiscal 2022 First Quarter Results Call. [Operator Instructions] Please note, this event is being recorded. I would like now to turn the conference over to Brian Bartholomew. Please go ahead.

Thanks, Jason. Good afternoon, and welcome to the Digital Turbine Fiscal 2022 First Quarter Earnings Conference Call. Joining me on today's call to discuss our results are CEO, Bill Stone; and CFO, Barrett Garrison. Before we get started, I would like to take the opportunity to remind you that our remarks today will include forward-looking statements. These forward-looking statements are based on our current assumptions, expectations and beliefs, including projected operating metrics, future products and services, anticipated market demand and other forward-looking topics. Although we believe that our assumptions are reasonable, they are not guarantees of future performance and some will inevitably prove to be incorrect. Except as required by law, we undertake no obligation to update any forward-looking statements. For a discussion of the risk factors that could cause our actual results to differ materially from those contemplated by our forward-looking statements, please refer to the documents we file with the Securities and Exchange Commission. Also, during this call, we will discuss certain non-GAAP measures of our performance. Non-GAAP measures are not substitutes for GAAP measures. Please refer to today's press release for important information about the limitations of using non-GAAP measures as well as reconciliations of these non-GAAP financial results to the most comparable GAAP measures. Now I am happy to turn the call over to CEO, Mr. Bill Stone.

Thanks Brian. And thank you all for joining our call tonight. First, I want to formally welcome, appreciate AdColony and Fyber to our team. This is our first earnings call announcing results as one Digital Turbine. I've been impressed with the ability of all of our team, whether it from AdColony, Fyber, Appreciate or Digital Turbine to focus on the execution on the day-to-day what you're seeing in our results, but also simultaneously focusing on building out one company, which is well underway. I've been pleased with how the teams from each company are beginning to gel together. Very few companies have the ability to walk and chew gum, but our team continues to show an amazing set of skills, whether it's on acquisitions, integrations, COVID, new business opportunities or whatever comes at us to maintain focus and hustle on what's right in front of us, but also simultaneously anticipate what's around the corner. I'm going to break my remarks out into four areas. First is some commentary on our consolidated results for the quarter. Second is a breakout of each of our segments. Third will be some real-time operational updates. And finally, we'll close on our strategic integration progress of one Digital Turbine. Want to remind investors, that our results announced today are for a partial quarter of results for both AdColony and Fyber. Our results include a full quarter of Appreciate, two months of AdColony and one month of Fyber. At a macro level, our consolidated actual results were $213 million in revenue, $40 million of adjusted EBITDA and $0.34 of non-GAAP earnings per share. Our top line and EBITDA growth were over 100% and 200% respectively on a pro forma basis, and our earnings per share growth was over 150%. This showcases the operating leverage of the…

Thanks Bill and good afternoon, everyone. Before I cover our financial results, I'll start by echoing Bill’s sentiment. We're excited to be announced in our first quarter with the results of the newly joined acquisitions and want to welcome the Fyber and AdColony teams to our one digital turbine team. Across the teams, the cultures and values are incredibly well aligned and I continue to be excited about the tremendous opportunity ahead of Digital Turbine, especially during this transformational phase of the company. Now turning to our results, we're pleased with the strong first quarter performance, which exceeded our expectations for both our existing business and the performance on the new acquisitions. As a reminder, we completed the acquisitions of AdColony and Fyber on April 29 and May 25, 2021 respectively, and our actual reported results reflect partial contributions of those businesses, beginning on the dates the acquisitions closed. I will occasionally reference results on a pro forma basis, which reference quarterly results and comparisons as if all acquired businesses were owned for the entirety of the first quarters of fiscal 2021 and fiscal 2022. We believe these pro forma results provide additional insight into the underlying trends when comparing current performance against prior periods. My comments today will refer to comparisons on a year-over-year basis, unless otherwise noted. Revenue of 212.6 million in the quarter was up 260% as reported and 104% on a pro forma basis. Adjusted EBITDA increased to 39.8 million growing 183% year-over-year. As a result of the successful acquisitions, starting this quarter we are reporting our revenues in three segments, On-Device Media, In-App Media AdColony and the In-App Media Fyber. On-Device Media revenue, which represents existing revenue derived from the company's application media inclusive of SingleTap, DSP and Content-Media, and platform products increased 93% year-over-year…

Thank you. We will now begin the question-and-answer session. [Operator Instructions] Our first question comes from Darren Aftahi from ROTH Capital Partners. Please go ahead.

Hey guys, thanks for taking my questions and a nice job on the quarter. So two things, first Bill, on your comments about the Samsung, I'm just kind of curious, like how big the opportunity is there. And then as maybe a derivative, you've been working with Samsung for a while now. I'm just curious if there's any other kind of large OEM, either handset or maybe even larger screen sizes where you feel there's a kind of a near-term opportunity where we might see another name, that will be beyond Samsung?

Yeah. Sure, Darren. Yeah, so specifically on Samsung, I think it's important to highlight to investors we have all these new products, we've got our on-device products, whether it's our new Dynamic Installs, App Wizard that people are familiar with, but now we're talking about things like SingleTap or content media products, things that we now have as part of our acquisitions from Fyber and AdColony. So as we think about, taking our Samsung relationship broader, which we're talking about today with more devices, but also deeper as it relates to a lot of these new products. So we're pretty excited about that and encourage investors to think a little bit more broadly about the opportunity there than just kind of historical our first boot products and that's definitely how we want to think about it throughout the entire life of the device with Samsung. In terms of other operating OEM relationships, yeah a lot of good things happen in here. We didn't – because we have so many things to talk about on today's call, we didn't get into any specifics like we did back in the old days of specific accounts, but yeah there's a lot of good things happening here and the results are starting to see, a lot of our other partners around the world beginning to grow and scale, that includes people like Xiaomi, Telefonica, just to kind of name a few. The pipeline continues to remain encouraging for us as we expand globally. And it's just a classic scale begets scale. So we feel pretty good about the strategy and the ability to add additional partners, additional screens and so on

This one more if I may. So with AdColony, I mean, anybody in their stable or your core stable on the brand side where you've already seen kind of cross-pollination in terms of opportunity or is it still too early there?

Yeah, so we're seeing great opportunities both on the Fyber and on the AdColony side. AdColony, a couple of specific examples that I highlight would be McDonald's and Starbucks, were ones that are already today, where there's cross-selling, up-selling and we're able to pull through McDonald's, brand dollars on AdColony into some of our On-Device Media products. So those would be a couple of examples, the pipeline is pretty rich and encouraging right now. And then on the supply side with Fyber, you're already working with a number of various publishers around there. So you can think of names like Zynga and Scopely, and Tripledot and names like that, we're already seeing nice synergies from, in terms of collaborating together.

Great. Thank you.

The next question comes from Austin Moldow from Canaccord. Please go ahead.

Hi, thanks for taking my questions and also thanks for all of the transparency, can you talk a little about how meaningful your Verizon and AT&T content deployments might be later this year, in terms of how wide-ranging those deployments will be? And can you also maybe talk about some of the other cross-selling you've realized thus far between the two entities?

Yeah. Sure, Austin. As we think about our – we think about the opportunity, today we have just north of around 10 million daily active users primarily on T-Mobile today. So I think in terms of we think about the opportunity set, that 10 million users generating, let's call it roughly a $100 million of revenue, that seems like an opportunity set, given that they've got one-third of the market, Verizon has one-third, AT&T has one-third in rough terms, that seems like the market opportunity that we should be thinking about. In terms of the specifics of rolling out, we're working those real-time right now, I don't think Verizon or AT&T want me making forward looking statements on their behalf today about their rollout plans. But just if I say, I think we're in good shape with both partners right now and they're excited to get going on these incremental opportunities.

Got it. And last question, what does the guidance assume for the Fyber performance?

Yeah, we are not breaking out the segment specific guidance, but we see a lot of headroom on the horizon for each of our businesses. We did break out their growth in our prepared remarks, as well as in the 10-Q. But in – those are organic – obviously organic growth rates and so the synergies that Bill touched on will be things on the horizon that will come at different paces. But we've been very pleased with each individual performance on each of our segments and have high aspirations for their growth rates.

Okay. Thanks very much.

[Operator Instructions] The next question comes from Allen Klee from Maxim Group. Please go ahead.

Hi two financial questions, one your tax rate was around 19% for this quarter. Is it reasonable to assume that going forward you'll be a taxpayer and is that a reasonable rate? And then how do you define – you mentioned the term non-GAAP free cash flow, how are you defining that? Thank you.

Yeah. Good tax question. So obviously with the acquisitions where we've got operations in different regions now, so it makes it a little more complex. We still do have NOLs in certain regions, so we will be taken advantage of shielding some of our taxes in some of those regions. But we are generating net income and operating income, so we will have tax obligations in certain regions. So I couldn't give you – Allen, I couldn't give you specifically the effective tax rate. We're going to be on an enterprise level, some obviously will be shielded within NOLs and other as well, but we will be a net taxpayer overall, fortunately given the profitability in the business. And then with respect to the way we determine our operating non-GAAP cash flow, we have a table included in the press release when you get a chance you'll be able to build a CV, the walk there. But we're basically demonstrating the free cash flow after operating free cash flow, less CapEx and less any non-recurring activities, so trying to get to our true inherent business cash flow results.

Thank you.

The next question comes from Dennis LaValle from Lantern. Please go ahead.

First of all, Bill I want to thank you for assembling a team that made this all possible. And on today's call, you didn't mention anything about the TV market space. Number one, how big is that? And who are the competitors and when will we be able to see some results in that arena?

Yeah, thanks Dennis. Yeah, we already have some results, in terms of some revenue from one of our carrier partners that has paid us for some licensing on televisions. And we're excited about the opportunity. We're excited about the space that's for sure. And we think the opportunities is compelling that's why we're in it, but I would highlight to investors that while we're excited about the opportunity, today we just talked about adding 60 million devices to the footprint, plus 1 billion devices at AdColony and Fyber on. I think if you look at, company like Roku for example, I think don't they have less than total users, and we just announced a quarter on televisions. So the opportunity while there it's impressive, the linear television market is roughly a $100 billion market, relatively flat, the mobile media market is $300 billion. So we view the TV market as a nice adjacency for us, but in terms of just total size and scope, we see the mobile market as vastly larger. And given that $300 billion plus mobile media market, we're less than 1% of that. We're seeing an enormous opportunity to grow that and generate results. So I think the key for us is with our operator and OEM partners is showing the breadth of services that we can offer both on whether it's on smartphones or tablets and televisions, and really integrating those things together. That's something that we're excited about. But in terms of the overall opportunity, I think it's important to have, kind of a relative size between mobile versus television.

As always you're on top of it. Thank you.

The next question comes from Anthony Stoss from Craig-Hallum. Please go ahead.

Hi guys. Nice job. Bill you talked about 70% of your revenues right now are for the life of the device, you mentioned Notifications and a bunch of other software ads that are forthcoming, when you look out how much potential revenue per device do you see over the next couple of years versus where you're at today?

Yeah, one of the things on that Tony is, we continue to say there's a lot of opportunity for revenue per device, we've been asked this for many years and it continues to go up into the right, I think we've seen both in our international business and our domestic business, as we've seen revenue per device in the June quarter go up 60% year-over-year which we're pretty excited about, it's north of $4 here in the United States. So now with all these new products, we see continued accretion there and we see the accretion coming from the both, the additional products, which adds revenues, so think of Notifications, SingleTap, et cetera, but also now obviously new media relationships too, right? So the combination of the media relationships and the new products and all these cross-selling and up-selling give, gives us a lot of optimism of being able to have increased RPDs, especially as the percentage of our revenues that are monetized over the life of the device increased. And so for example, in our App Media and Content Media businesses, our legacy Dynamic Install business was up like 50% year-over-year, which is great, but all the other products combined were up over 175%. So that kind of growth is really what's driving the improved revenue per device metrics. We think that's something that investors should be excited about.

Then a clarification on Samsung, is it just SingleTap that the new agreement is covering and then how quickly is it going to begin?

So what we announced today was for SingleTap. And as I just mentioned it to Darren earlier Tony is, I'd encourage investors to think about the relationship with Samsung more broadly than just the app should get out of the box, which is I think how most investors have seen that relationship historically. We'd like to think about it now, but all these products and things that we've acquired and assembled over the past few years. So today we are live with Samsung in Latin America on SingleTap. We just recently expanded that into Europe and we look forward to continue to expand that to other geographies. And we're working through those details with Samsung real time.

Thanks Bill. Appreciate it. Good luck guys.

Thanks Tony.

There are no more questions in the queue. This concludes our question-and-answer session. I would like to turn the conference back over to Bill Stone for any closing remarks.

Yeah. Thanks everyone for joining the call today. We'll look forward to reporting on our progress against all the points we made on today's call. And we'll talk to you again on our fiscal 2022 second quarter call in a few months. Thanks and have a great night.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.