Digital Turbine Inc (APPS) 2023 Q4 法說會逐字稿

Good afternoon, and welcome to the Digital Turbine Fourth Quarter and Fiscal Year 2023 Financial Results Conference Call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Brian Bartholomew, Senior Vice President, Capital Markets and Strategy. Please go ahead.

下午好，歡迎來到數字渦輪第四季度和 2023 財年財務業績電話會議。 （操作員說明）請注意，正在記錄此事件。我現在想將會議轉交給資本市場和戰略高級副總裁 Brian Bartholomew。請繼續。

Thank you, Gary. Good afternoon, and welcome to the Digital Turbine Fourth Quarter and Fiscal Year 2023 Earnings Conference Call. Joining me on the call today to discuss our results are CEO, Bill Stone; and CFO, Barrett Garrison.

謝謝你，加里。下午好，歡迎來到數字渦輪第四季度和 2023 財年收益電話會議。今天和我一起參加電話討論我們的結果的是首席執行官 Bill Stone；和首席財務官，巴雷特加里森。

Before we get started, I'd like to take this 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.

在我們開始之前，我想藉此機會提醒您，我們今天的評論將包含前瞻性陳述。這些前瞻性陳述基於我們當前的假設、預期和信念，包括預計的運營指標、未來的產品和服務、預期的市場需求和其他前瞻性主題。

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.

儘管我們相信我們的假設是合理的，但它們並不能保證未來的表現，有些將不可避免地被證明是不正確的。除法律要求外，我們不承擔更新任何前瞻性陳述的義務。有關可能導致我們的實際結果與我們的前瞻性陳述中預期的結果存在重大差異的風險因素的討論，請參閱我們向美國證券交易委員會提交的文件。

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.

同樣在這次電話會議中，我們將討論我們業績的某些非 GAAP 衡量標準。非 GAAP 措施不能替代 GAAP 措施。請參閱今天的新聞稿，了解有關使用非 GAAP 指標的限制以及這些非 GAAP 財務結果與最具可比性的 GAAP 指標的調節的重要信息。

Now I'll turn the call over to our CEO, Mr. Bill Stone.

現在我將把電話轉給我們的首席執行官 Bill Stone 先生。

Thanks, Brian, and thank you all for joining our call tonight. I wanted to start my commentary closing out our fiscal '23 results, provide some real-time operational commentary on the state of our business today and conclude with some thoughts about our future and specifically, the role of AI and machine learning in our current and future business.

謝謝，布賴恩，感謝大家今晚加入我們的電話會議。我想開始我的評論，結束我們的 23 財年業績，提供一些關於我們今天業務狀況的實時運營評論，並以對我們未來的一些想法作為結尾，特別是人工智能和機器學習在我們當前和未來的事業。

First, turning to our fiscal '23 results. We closed the year with $666 million of revenue, $163 million of EBITDA and $1.15 of non-GAAP EPS. In addition, we reported gross margins of 49% and EBITDA margins of 25%.

首先，轉向我們的 23 財年業績。我們以 6.66 億美元的收入、1.63 億美元的 EBITDA 和 1.15 美元的非 GAAP 每股收益結束了這一年。此外，我們報告的毛利率為 49%，EBITDA 利潤率為 25%。

As we stated previously, our view is that the first half of this calendar year is the trough of the business. And our expectations are that our improved execution, new products and media relationships combined with increased stability in the macro environment will equate to sequential growth. And to date, we are seeing recent positive trends on all of these factors.

正如我們之前所說，我們認為今年上半年是業務的低谷期。我們的期望是，我們改進的執行力、新產品和媒體關係以及宏觀環境穩定性的提高將等同於連續增長。迄今為止，我們看到了所有這些因素的近期積極趨勢。

Also included in our results is a change in the expected timing of a strategic demand agreement that was signed in the March quarter with an app publisher. We do these strategic demand contracts to help drive unique advantages for the publisher on our inventory and also accrete incremental margins for us.

我們的結果還包括在 3 月季度與應用程序發行商簽署的戰略需求協議的預期時間發生變化。我們簽訂這些戰略需求合同是為了幫助出版商在我們的庫存上獲得獨特的優勢，並為我們增加利潤。

Our previous outlook anticipated a portion of the economics from that contract to impact the prior March quarter. However, the majority of the economic benefit from this agreement will be realized in fiscal year that we're in right now. This is strictly a timing issue, and these agreements actually have a positive impact on the fundamentals and operations of our business and as the total expected revenues and profits from that contract are unchanged. Barrett will provide more detail in his remarks.

我們之前的展望預計該合同的部分經濟效益將影響上一季度。然而，該協議的大部分經濟利益將在我們現在所在的財政年度實現。這完全是一個時間問題，這些協議實際上對我們業務的基本面和運營產生了積極影響，因為該合同的預期總收入和利潤沒有變化。巴雷特將在他的講話中提供更多細節。

Turning to our On Device business. We put our Ignite technology on over 285 million global devices over the past year, which is a 7% increase year-over-year. But in the U.S., we saw a double-digit percent decline in devices year-over-year. New device sales in the U.S. were the lowest we have seen since 2019.

轉向我們的設備上業務。過去一年，我們將 Ignite 技術應用於全球超過 2.85 億台設備，同比增長 7%。但在美國，我們看到設備數量同比下降了兩位數。美國的新設備銷量是我們自 2019 年以來的最低水平。

Offsetting device volume declines in the U.S., however, was positive progress on our rates and demand for our platform. And despite continued headwinds being able to scale nearly 9 figures of demand from Chinese publishers on our U.S. operator and OEM supply, I was pleased that in the U.S., our revenue per device or RPD increased both double digit sequentially and year-over-year driven by better rates and more products.

然而，抵消美國設備數量下降的是我們平台的費率和需求方面的積極進展。儘管持續的逆風能夠將中國出版商對我們美國運營商和 OEM 供應的需求擴大近 9 個數字，但我很高興在美國，我們的每台設備或 RPD 收入環比和同比增長兩位數通過更好的價格和更多的產品。

In particular, I was pleased to see growth return on our DSP that we utilized for direct SingleTap installs, showing double-digit growth from the March quarter last year to this year. We expect the DSP to be one of our major growth drivers as we progress into the current fiscal year.

特別是，我很高興看到我們用於直接 SingleTap 安裝的 DSP 的增長回報，從去年三月季度到今年顯示出兩位數的增長。隨著我們進入本財年，我們預計 DSP 將成為我們的主要增長動力之一。

Progress also continued with our SingleTap licensing business. Our install volume running SingleTap licensing was double in the March quarter from all of 2022, and our expectations are current June quarter will double the March quarter. We're excited to have welcomed many top 25 grossing gaming customers such as PlayerX and FunPlus.

我們的 SingleTap 許可業務也繼續取得進展。與 2022 年全年相比，我們運行 SingleTap 許可的安裝量在 3 月季度翻了一番，我們預計當前 6 月季度將是 3 月季度的兩倍。我們很高興迎來了 PlayerX 和 FunPlus 等收入排名前 25 位的遊戲客戶。

Additionally, we're also encouraged by the expansion of a number of our high-profile partners such as Amazon and Epic, who expanded both the volume of SingleTap implementations across our portfolio apps, adding additional titles and more traffic sources. We're also excited about the expected launch of our Google Marketplace integrations where both Digital Turbine and Google are jointly expanding Tier 1 publishers and brands all within Google's ecosystem. We have a healthy pipeline of partners looking to adopt SingleTap through Google and the Google Cloud Marketplace.

此外，我們還對一些知名合作夥伴（如 Amazon 和 Epic）的擴張感到鼓舞，他們在我們的產品組合應用程序中擴展了 SingleTap 實施的數量，添加了更多的標題和更多的流量來源。我們也對即將推出的 Google Marketplace 集成感到興奮，其中 Digital Turbine 和 Google 將共同擴展 Google 生態系統中的第 1 層發布商和品牌。我們擁有大量希望通過 Google 和 Google Cloud Marketplace 採用 SingleTap 的合作夥伴。

And finally, I'm pleased to report that we've made progress with multiple large social media companies and expect to have them begin the first pilots running SingleTap over their networks in the next few months. Bigger picture for SingleTap licensing, the product market fit is very strong. And while we're excited about our prospects, I do want to remind investors that while SingleTap licensing is generating revenue today, it will take time to get to material revenue generation.

最後，我很高興地向大家報告，我們已經與多家大型社交媒體公司取得了進展，並希望他們在未來幾個月內開始在其網絡上運行 SingleTap 的第一批試點。 SingleTap 許可的大局觀，產品市場契合度非常高。雖然我們對我們的前景感到興奮，但我確實想提醒投資者，雖然 SingleTap 許可今天正在產生收入，但要產生實質性收入還需要時間。

The operational complexity of bringing together not just the On Device technology, but the advertisers, publishers, attribution providers, telcos and OEMs has many moving parts requiring tight coordination and management. It's taken us more time than we like to get to scale, but the good news is that given all of this complexity, once established, the moat is very difficult to replicate at scale.

不僅將 On Device 技術，而且將廣告商、出版商、歸因提供商、電信公司和 OEM 整合在一起的操作複雜性有許多移動部分需要緊密協調和管理。我們花了比我們想要的更多的時間來擴大規模，但好消息是，考慮到所有這些複雜性，護城河一旦建立，就很難大規模複製。

Similar to the early days of our Dynamic Install business where we launched on one mobile operator with only a slot or 2 and ramped and then added another and so on. It layered on nice sequential growth as we expanded the depth and breadth of carriers and OEMs. It's very early days, but we're seeing those similar trends emerge here.

類似於我們早期的動態安裝業務，我們在一個移動運營商上推出，只有一個或兩個插槽，然後逐漸增加，然後添加另一個，依此類推。隨著我們擴大運營商和原始設備製造商的深度和廣度，它建立在良好的連續增長之上。現在還很早，但我們看到這裡出現了類似的趨勢。

On the App Growth Platform or AGP business, revenue was down 4% from fiscal '22 to fiscal '23. However, we expect these results to be the trough for our AGP business as we have seen revenue trends improving since the beginning of the calendar year.

在 App Growth Platform 或 AGP 業務上，收入從 22 財年到 23 財年下降了 4%。然而，我們預計這些結果將成為我們 AGP 業務的低谷，因為我們已經看到自日曆年年初以來收入趨勢有所改善。

With the integration of our acquisitions now largely complete, the benefit is that our execution in this part of the business has made major strides compared to last year. And we now expect that to bear fruit as we scale things like our AI and machine learning, our SDK bidding, our video rendering technology improvements and so on. I was also pleased to see Google bidding integrate with our mediation solution, FairBid, that should continue to improve our share of voice as we add more demand into our publisher supply.

隨著我們收購的整合現在基本完成，好處是我們在這部分業務的執行與去年相比有了長足的進步。我們現在希望隨著我們擴展我們的人工智能和機器學習、我們的 SDK 競標、我們的視頻渲染技術改進等方面，這會取得成果。我也很高興看到 Google 競價與我們的中介解決方案 FairBid 集成，隨著我們對發布商供應的需求增加，這應該會繼續提高我們的話語權份額。

Turning to the future. I want to spend a few moments highlighting our new product growth drivers. I mentioned both new enhancements on our ad tech solutions and SingleTap licensing earlier in my remarks as strategic growth opportunities. And we've also mentioned on prior calls, we want to build a Shopify for app stores On Device.

轉向未來。我想花點時間強調一下我們新的產品增長動力。我在前面的發言中提到了我們廣告技術解決方案的新增強功能和 SingleTap 許可作為戰略增長機會。我們在之前的電話中也提到過，我們想為設備上的應用商店構建一個 Shopify。

We believe we're uniquely positioned with our On Device technology, our publisher relationships and our operator and OEM relationships. We have now launched our first alternative app stores with 4 U.S. operators and also have a very strong international pipeline.

我們相信，我們在設備端技術、出版商關係以及運營商和 OEM 關係方面處於獨特的地位。我們現在已經與 4 家美國運營商一起推出了我們的第一個替代應用程序商店，並且還有一個非常強大的國際管道。

We also believe the global regulatory environment will provide additional thrust to this vision. A specific example of the regulations changing is Apple is preparing to support sideloading applications in the EU as part of its future versions of its iOS operating system. And to achieve this vision, there are some market pain points we will be solving, including making it easier for app publishers to port their apps to a new platform, managing payments, installing the apps and managing curation of the micro stores.

我們還相信全球監管環境將為這一願景提供額外的推動力。法規變化的一個具體例子是 Apple 正準備在歐盟支持側載應用程序，作為其 iOS 操作系統未來版本的一部分。為了實現這一願景，我們將解決一些市場痛點，包括讓應用程序發行商更容易將他們的應用程序移植到新平台、管理支付、安裝應用程序和管理微型商店的管理。

On making it easier to port apps and manage payments, we took the first step in accelerating our efforts in this area. We're taking an equity position in an alternative app store company called Aptoide, which has approximately 430 million users, 10 billion downloads and over 1 million apps. Combining these capabilities with things like SingleTap will make all installs easier for consumers. And we're actually running SingleTap installs on Aptoide's alternative app store today.

為了更輕鬆地移植應用程序和管理支付，我們邁出了加快在這一領域努力的第一步。我們持有另一家名為 Aptoide 的應用商店公司的股權，該公司擁有約 4.3 億用戶、100 億次下載和超過 100 萬個應用程序。將這些功能與 SingleTap 等功能相結合，將使消費者的所有安裝更加輕鬆。實際上，我們今天正在 Aptoide 的替代應用程序商店中運行 SingleTap 安裝。

The alternative app stores will also help us further leverage our ad tech assets with applications supported by in-app advertising revenue, but the app stores will also help us with our first foray into this in-app purchasing market, which is a $100 billion global addressable market today. And here in the U.S., it's over a $50 billion market today and expect it to grow to over $600 billion by 2030.

替代應用商店還將幫助我們通過應用內廣告收入支持的應用進一步利用我們的廣告技術資產，但應用商店還將幫助我們首次涉足這個全球價值 1000 億美元的應用內購買市場今天的潛在市場。而在美國，今天的市場價值超過 500 億美元，預計到 2030 年將增長到超過 6000 億美元。

You'll see us refer to this business as our DT Hub business and variants on the hub, whether that be things like DT GamesHub, DT app hub and so on. And to tie all this past, present and future together, because of the exclusivity and uniqueness of our position with our On Device and publishers, we're able to create deeper, more strategic relationships with our partners.

您會看到我們將此業務稱為我們的 DT Hub 業務和集線器上的變體，無論是 DT GamesHub、DT 應用程序集線器等。為了將所有過去、現在和未來聯繫在一起，由於我們與我們的 On Device 和發行商的地位的排他性和獨特性，我們能夠與我們的合作夥伴建立更深入、更具戰略意義的關係。

And to that end, we've secured many tens of millions of dollars of revenue bookings for this current fiscal year across various verticals such as social media, weather, gaming and so on. We will provide the publishers with an alternative route to market, leveraging our On Device and SingleTap footprint, whether that's through our new DT app hub, our Dynamic Installs, our DSPs and so on. And this has not just a strategic benefit and validation of the DT platform benefit, but also the financial benefit of derisking future revenues.

為此，我們在本財年在社交媒體、天氣、遊戲等各個垂直領域獲得了數千萬美元的收入預訂。我們將為發布商提供另一種進入市場的途徑，利用我們的 On Device 和 SingleTap 足跡，無論是通過我們新的 DT 應用程序中心、我們的動態安裝、我們的 DSP 等等。這不僅具有戰略利益和對 DT 平台利益的驗證，而且還具有降低未來收入風險的財務利益。

And finally, before I turn it over to Barrett, I wanted to spend a few moments discussing our AI and machine learning strategies for investors. And while I do think these terms are getting a bit overhyped in the press right now, they nevertheless are and have been important components of our past, present and future strategies.

最後，在我把它交給 Barrett 之前，我想花點時間為投資者討論我們的 AI 和機器學習策略。雖然我確實認為這些術語現在在媒體上有點被誇大了，但它們仍然是我們過去、現在和未來戰略的重要組成部分。

Our business was actually built a decade ago, creating machine learning models to deliver dynamic experiences to users based upon using first-party data from our carrier and OEM partners. We continue to use AI and machine learning to help us optimize our SingleTap business, automate workflows and curate content in our content media business, leveraging large language model or LLM-based conversational AI and ML models to optimize our ad platform.

我們的業務實際上是十年前建立的，創建機器學習模型，根據使用來自我們的運營商和 OEM 合作夥伴的第一方數據為用戶提供動態體驗。我們繼續使用人工智能和機器學習來幫助我們優化我們的 SingleTap 業務、自動化工作流程並在我們的內容媒體業務中策劃內容，利用大型語言模型或基於 LLM 的對話式人工智能和機器學習模型來優化我們的廣告平台。

We'll continue to leverage AI as a foundational technology in our business, including our hubs business as we build curated privacy-preserving experiences based upon AI recommendation engines and port applications that are tailored to specific audiences. The important takeaway for investors is that there are 3 key success factors to winning with AI and machine learning.

我們將繼續利用 AI 作為我們業務的基礎技術，包括我們的中心業務，因為我們基於 AI 推薦引擎和為特定受眾量身定制的端口應用程序構建精心策劃的隱私保護體驗。對投資者來說重要的一點是，人工智能和機器學習的成功有 3 個關鍵因素。

The first is the quantity, quality and uniqueness of the data sets. Companies have access to unique first-party data will have material advantages over other players using third-party data that is either for sale or generally available on the Internet. Digital Turbine's access to On Device data with Ignite present on over 1 billion devices globally is a foundational core for us to leverage AI and machine learning models and algorithms, which run on anonymized data that enables us to protect user privacy.

首先是數據集的數量、質量和唯一性。公司能夠訪問獨特的第一方數據將比其他使用第三方數據的參與者俱有物質優勢，這些第三方數據可以出售或可以在 Internet 上普遍獲得。 Digital Turbine 通過 Ignite 訪問全球超過 10 億台設備上的 On Device 數據是我們利用 AI 和機器學習模型和算法的基礎核心，這些模型和算法在匿名數據上運行，使我們能夠保護用戶隱私。

The second is the quality of the models. We're doubling our investment in dedicated data science teams and machine learning engineers, both in Europe and here in the United States, building these models across all segments of the DT network.

其次是模型的質量。我們將在歐洲和美國對專門的數據科學團隊和機器學習工程師的投資加倍，在 DT 網絡的所有部分構建這些模型。

The final component is the actual application being used commercially to deliver value to the end user. Our applications like SingleTap, content media and hub are all specific use cases of AI and machine learning enhanced offerings bringing value to all of our stakeholders across end users, operators and OEMs and app publishers.

最後一個組件是商業上用於向最終用戶交付價值的實際應用程序。我們的應用程序（如 SingleTap、內容媒體和集線器）都是 AI 和機器學習增強產品的特定用例，為最終用戶、運營商和 OEM 以及應用程序發行商的所有利益相關者帶來價值。

We're very bullish on AI and machine learning, both for our future success as well as for society at large. But I caution investors to be able to separate the hyperbole in storytelling of these new technologies from the actual practical use cases of how AI and machine learning is and will be delivering value in the marketplace.

我們非常看好人工智能和機器學習，無論是為了我們未來的成功，還是為了整個社會。但我告誡投資者，要能夠將這些新技術的誇張故事與人工智能和機器學習如何以及將如何在市場上創造價值的實際用例區分開來。

Investors should look for companies that have all 3 of these success factors of unique data modeling and applications being offered.

投資者應該尋找擁有獨特數據建模和應用程序的所有這 3 個成功因素的公司。

And in conclusion, I'm proud of our team as I've seen a marked improvement in our execution that combined with the stabilization of the macro environment will be catalysts for future growth. Our outlook for the long term remains unchanged as the total addressable market for mobile advertising is over $300 billion, the addressable market for in-app payments is even larger than that into the future.

最後，我為我們的團隊感到自豪，因為我看到我們的執行力有了顯著改善，加上宏觀環境的穩定將成為未來增長的催化劑。我們的長期前景保持不變，因為移動廣告的總潛在市場超過 3000 億美元，應用內支付的潛在市場甚至比未來更大。

I want to remind investors that in addition to this enormous and growing addressable market, we have products our customers want, a favorable regulatory environment and a profitable business model to drive operating leverage from our revenues and cost structure to attack the enormous market opportunity in front of us.

我想提醒投資者，除了這個巨大且不斷增長的潛在市場外，我們還擁有客戶想要的產品、有利的監管環境和有利可圖的商業模式，可以從我們的收入和成本結構中推動經營槓桿，以抓住面前的巨大市場機會我們。

With that, that concludes my prepared remarks, and I'll turn it over to Barrett to take you through the numbers.

至此，我準備好的發言就結束了，我將把它交給巴雷特，讓你了解一下這些數字。

Thanks, Bill, and good afternoon. For the fiscal year 2023, we reported $665.9 million in revenue, down 11% year-on-year and generated $163.2 million in adjusted EBITDA or 25% of revenues and delivered $118.2 million (sic) [$117.4 million] in adjusted net income or $1.15 per share as compared to $1.66 per share in the prior year.

謝謝，比爾，下午好。在 2023 財年，我們報告的收入為 6.659 億美元，同比下降 11%，調整後 EBITDA 為 1.632 億美元，佔收入的 25%，調整後淨收入為 1.182 億美元（原文如此）[1.174 億美元]，即 1.15 美元每股 1.66 美元，而去年同期為每股 1.66 美元。

Now turning to the financial performance in the quarter. Revenue of $140.1 million in the quarter was down 24% year-on-year. Overall revenue performance was driven in large part by continued soft advertiser spending across both of our business segments.

現在轉向本季度的財務業績。本季度收入為 1.401 億美元，同比下降 24%。整體收入表現在很大程度上是由我們兩個業務部門持續的軟廣告客戶支出推動的。

Within our On Device Solutions segment or ODS, revenues were sequentially flat to the December quarter and down 19% to the prior year March quarter. However, as Bill referenced, while we saw global devices increase year-on-year, we experienced greater than 20% declines year-over-year in U.S. device volumes, which have a greater overall impact given their higher revenue per device than our non-U.S. global operators and OEMs.

在我們的設備解決方案部門或 ODS 中，收入與 12 月季度持平，比去年 3 月季度下降 19%。然而，正如 Bill 所提到的，雖然我們看到全球設備同比增長，但美國設備數量同比下降了 20% 以上，由於每台設備的收入高於我們的非-美國全球運營商和原始設備製造商。

Impacts from lower U.S. device volumes were partially offset by improved revenue per device in the U.S., which exceeded $5 per device and increased both sequentially and year-on-year. In addition to the impact from the near-term macro conditions, our ODS segment experiences headwinds from the prepaid content media that we have discussed in the past. And while the year-on-year decline has moderated, we expect the grow over comps to continue for the next couple of quarters.

美國設備銷量下降的影響被美國每台設備收入的增加部分抵消，每台設備收入超過 5 美元，環比和同比都有所增長。除了近期宏觀環境的影響外，我們的 ODS 部門還受到我們過去討論過的預付費內容媒體的不利影響。雖然同比下降有所緩和，但我們預計未來幾個季度將繼續增長。

On our App Growth Platform or AGP business, fiscal '23 revenues were down 4% over last year, and Q4 declined 35% over prior year. Recent declines in the quarter year-on-year were driven in part by macro declines in ad rates and the short-term impact of the consolidation and exiting certain legacy AdColony business lines we have discussed previously.

在我們的 App Growth Platform 或 AGP 業務中，23 財年的收入比去年下降了 4%，第四季度比上年下降了 35%。最近本季度同比下降的部分原因是廣告費率的宏觀下降以及整合和退出我們之前討論過的某些遺留 AdColony 業務線的短期影響。

I'd reiterate Bill's earlier comment that despite the near-term headwinds, we're encouraged by the early integration benefits we are seeing by bringing these businesses together and expect these moves to have a positive impact on our future growth.

我要重申比爾早先的評論，即儘管近期存在逆風，但我們對通過將這些業務整合在一起所看到的早期整合優勢感到鼓舞，並預計這些舉措將對我們未來的增長產生積極影響。

Before leaving revenues, I would point out that in the quarter, we experienced timing differences from our original expectations and guidance that we provided on our last call. While overall revenue results were generally in line with our expectations, we entered into a strategic app publisher arrangement within the quarter, and the change in timing resulted in the majority of the recognition of these revenues and margins shifting from this March quarter into fiscal '24. Modest revenue upside in other parts of the business offset the shift in revenues, but this program made up several million dollars of change versus our previous expectations in gross profits in the quarter.

在離開收入之前，我要指出的是，在本季度，我們經歷了與我們在上次電話會議上提供的最初預期和指導的時間差異。雖然整體收入結果總體上符合我們的預期，但我們在本季度內達成了一項戰略應用程序發行商安排，時間的變化導致這些收入和利潤的大部分確認從本季度轉移到 24 財年.該業務其他部分的適度收入增長抵消了收入的變化，但與我們之前對本季度毛利潤的預期相比，該計劃帶來了數百萬美元的變化。

Our gross margin was 49% in fiscal '23, up from 47% in the prior year. And Q4 gross margin was 44%, which was down from 49% in Q4 from the last year. Changes in margin year-on-year were largely driven by the combination of quarterly product mix shifts, where we experienced a decline in the mix of certain higher-margin products or those where revenues are recognized on a net basis after revenue shares to our partner.

我們在 23 財年的毛利率為 49%，高於去年的 47%。第四季度毛利率為 44%，低於去年第四季度的 49%。利潤率的同比變化主要是由季度產品組合變化共同推動的，在這些組合中，我們經歷了某些利潤率較高的產品組合的下降，或者那些在向我們的合作夥伴分享收入後以淨額確認收入的產品組合的下降.

And secondly, margins were also affected by exiting certain noncore business lines previously discussed. As a reminder, while gross margin rates can fluctuate from quarter-to-quarter, we generally anticipate long-term margin expansion as we continue to execute on growth and synergy strategies.

其次，利潤率也受到退出先前討論的某些非核心業務線的影響。提醒一下，雖然毛利率可能會隨季度波動，但隨著我們繼續執行增長和協同戰略，我們通常預計長期利潤率會擴大。

We remain disciplined with expenses, especially in the light of the temporary backdrop of the fourth quarter. Cash operating expenses were $38 million in the quarter, decreasing 4% from prior year and represented 27% of revenues in the quarter.

我們仍然嚴格控制支出，尤其是考慮到第四季度的臨時背景。本季度現金運營支出為 3800 萬美元，比上年同期下降 4%，佔本季度收入的 27%。

We would typically experience seasonally higher expenses in Q4, but we had an offset from lower-than-normal performance compensation expenses and other cost reduction actions. As we discussed previously, we are executing company-wide expense reductions to begin to rightsize the business for the current environment and to fund key strategic investments, including investments in our enterprise-wide systems and integrations to drive future scale across our platforms.

我們通常會在第四季度經歷季節性較高的支出，但我們可以從低於正常水平的績效補償支出和其他成本削減措施中得到抵消。正如我們之前討論的那樣，我們正在執行全公司範圍的開支削減，以開始根據當前環境調整業務規模，並為關鍵戰略投資提供資金，包括對我們企業範圍系統的投資和集成，以推動我們平台的未來規模。

Earlier this year, we carried out a small workforce reduction and remain focused on optimizing efficiency without sacrificing catalysts for long-term growth. We expect the impact of these actions will become more fully reflected in our results over time, and we remain highly focused on operating efficiency.

今年早些時候，我們進行了小規模裁員，並在不犧牲長期增長催化劑的情況下繼續專注於優化效率。我們預計這些行動的影響將隨著時間的推移更充分地反映在我們的業績中，並且我們仍然高度關注運營效率。

Turning to profitability. Our adjusted EBITDA of $23.1 million in the quarter decreased from $50 million in the prior year and our EBIT margin of 16% compared to 27% in the same period last year. Given the inherent operating leverage in our business model, we expect the active focus on expense measures we are taking will strengthen the platform when we return to growth and enable a greater portion of those dollars to follow the bottom line.

轉向盈利能力。我們本季度調整後的 EBITDA 為 2310 萬美元，低於去年同期的 5000 萬美元，我們的 EBIT 利潤率為 16%，而去年同期為 27%。鑑於我們業務模式中固有的運營槓桿，我們預計積極關注我們正在採取的費用措施將在我們恢復增長時加強平台，並使這些美元中的大部分能夠遵循底線。

In the quarter, we achieved non-GAAP adjusted net income of $13.6 million or $0.14 per share as compared to $40.9 million or $0.39 per share in the fourth quarter of last year. As compared to prior year, we incurred greater interest expense driven by rising rates and higher average outstanding debt.

本季度，我們實現了 1360 萬美元或每股 0.14 美元的非 GAAP 調整後淨收入，而去年第四季度為 4090 萬美元或每股 0.39 美元。與上一年相比，由於利率上升和平均未償債務增加，我們產生了更多的利息支出。

Our GAAP net loss was $13.9 million or negative $0.14 per share based on 100.7 million diluted shares outstanding compared to prior year net income of $20.1 million or $0.21 (sic) [$0.19] per share. Free cash flow for the quarter of $12.5 million enabled us to exit the quarter with $75.1 million in cash after paying down an additional $12 million in debt using free cash flows from operations to further deleverage our debt position.

我們的 GAAP 淨虧損為 1390 萬美元或每股負 0.14 美元，基於 1.007 億股稀釋流通股，而去年淨收入為 2010 萬美元或每股 0.21 美元（原文如此）[0.19 美元]。本季度 1250 萬美元的自由現金流使我們能夠在使用運營自由現金流償還額外的 1200 萬美元債務以進一步去槓桿化我們的債務頭寸後，以 7510 萬美元的現金退出本季度。

Our debt balance ended the quarter at $413 million drawn on our revolving credit facility. And our business continues to produce strong cash flows, and we would expect to continue to pay down our revolver.

本季度末，我們的債務餘額為 4.13 億美元，來自我們的循環信貸額度。我們的業務繼續產生強勁的現金流，我們預計將繼續償還我們的左輪手槍。

We continue to be confident in our balance sheet and capital position given our profit model, cash flow generation and access to low-cost credit facility. We expect these market conditions to be temporary, and we are well positioned to resume the strong growth when the macro landscape improves.

鑑於我們的盈利模式、現金流產生和獲得低成本信貸額度，我們繼續對我們的資產負債表和資本狀況充滿信心。我們預計這些市場狀況是暫時的，我們有能力在宏觀環境改善時恢復強勁增長。

Now let me turn to our outlook. As we consider the ongoing uncertainties in the macro environment, we currently expect revenue for fiscal Q1 to be between $140 million and $145 million and adjusted EBITDA to be between $23 million and $25 million and non-GAAP adjusted net income per diluted share to be between $0.11 and $0.13 based on approximately 102 million diluted shares outstanding and an effective tax rate of 25%.

現在讓我談談我們的前景。由於我們考慮到宏觀環境持續存在的不確定性，我們目前預計第一財季的收入在 1.4 億美元至 1.45 億美元之間，調整後的 EBITDA 介於 2300 萬美元至 2500 萬美元之間，非 GAAP 調整後每股攤薄淨收入介於0.11 美元和 0.13 美元基於約 1.02 億股稀釋後流通股和 25% 的有效稅率。

With that, let me hand it back to the operator to open the call for questions. Operator?

有了這個，讓我把它交還給接線員打開問題電話。操作員？

(Operator Instructions)

（操作員說明）

Our first question is from Darren Aftahi with ROTH MKM.

我們的第一個問題來自 Darren Aftahi 和 ROTH MKM。

First, I just want to get more clarity. I was just doing some math, it looks like your business fell sequentially last year 15%, fell 14% this year on revenue. But the non-GAAP gross profit fell quite a bit more this year versus last year.

首先，我只想更清楚一點。我只是在做一些計算，看起來你的業務去年連續下降了 15%，今年的收入下降了 14%。但今年的非美國通用會計準則毛利潤比去年下降了很多。

And in the context of your comments about the strategic app publisher relationship, I guess, can you quantify how much in terms of like gross profit dollars are moving from what would have been in the March quarter to maybe down the line? I'm just trying to understand if that's the main reason for kind of the non-GAAP gross margin weakness or if there's something else.

在您對戰略應用程序發行商關係的評論的背景下，我想，您能否量化毛利潤美元從 3 月季度的水平到可能下降的程度？我只是想了解這是否是非 GAAP 毛利率疲軟的主要原因，或者是否還有其他原因。

Yes. Thanks, Darren. Yes, we -- I'll give you kind of an indication of the magnitude. I referenced in my prepared remarks that it was several million dollars. And so I'd also reference that we were basically in line with our expectations, had those not shifted out. But those several million dollars of revenue related to timing will move into FY '24.

是的。謝謝，達倫。是的，我們——我會給你一些關於規模的指示。我在準備好的評論中提到這是幾百萬美元。因此，我還提到我們基本上符合我們的預期，如果那些沒有轉移的話。但與時間相關的數百萬美元收入將進入 24 財年。

Got it. And then maybe could you just talk about the quarter you just came out of and maybe trends in April and May just in terms of impressions and eCPM? And then any kind of good, bad and different? You've called out, I think in the last quarter, you talked about regional performance. So anything in that context would be helpful.

知道了。然後，也許你能談談你剛出來的那個季度，也許只是在印象和 eCPM 方面的 4 月和 5 月的趨勢？然後有什麼好的、壞的和不同的嗎？你已經大聲疾呼，我想在上個季度，你談到了區域表現。因此，在這種情況下，任何事情都會有所幫助。

Yes, Darren. It's Bill. I'll take that one. I'd say in terms of trends that we're seeing so far in the current calendar year, we continue to see improvement on the AGP part of our business, I think, which is in line with other players that have already reported.

是的，達倫。是比爾。我會拿那個。我想說的是，就我們在當前日曆年中看到的趨勢而言，我們繼續看到我們業務的 AGP 部分有所改善，我認為，這與已經報告的其他參與者一致。

We're seeing rebounds in eCPMs. We're seeing rebounds in publishers wanting to continue to integrate our products. We're seeing really good progress I referenced in my commentary on the DSP, which we leverage SingleTap for.

我們看到了有效每千次展示費用的反彈。我們看到希望繼續整合我們產品的出版商有所反彈。我們看到了非常好的進展，我在對 DSP 的評論中提到過，我們利用 SingleTap。

So I'd say on the AGP part of the business, the trends have been encouraging. On the ODS side of the business, the 2 major headwinds that we've been dealing with are really just new device sales and then having an enormous amount of insertion orders from these various Chinese publishers that want to run on our supply -- they want to run on our O&O supply.

所以我想說，在業務的 AGP 部分，趨勢一直令人鼓舞。在業務的 ODS 方面，我們一直在處理的兩大逆風實際上只是新設備銷售，然後是來自這些想要在我們的供應上運行的各種中國出版商的大量插入訂單——他們想要依靠我們的 O&O 供應運行。

But quite frankly, due to primarily political considerations in the short term, it's been a little bit of a struggle for us to do that. I think we've got a variety of other things that are in our control that I think give us optimism in terms of new supply, new products, other strategic demand relationships that we're referencing that it will all counteract that as we go forward into the fiscal year.

但坦率地說，由於短期內主要是出於政治考慮，我們很難做到這一點。我認為我們還有很多其他事情在我們的控制之下，我認為這些事情讓我們對新供應、新產品和其他戰略需求關係感到樂觀，我們正在參考這些關係，隨著我們前進，這些都會抵消進入財政年度。

But those 2 primary factors are the headwinds we're facing right now. And we want to put that consideration in our guidance for the current quarter. If something changes on those factors, obviously, that would be a tailwind for us.

但這兩個主要因素是我們目前面臨的不利因素。我們希望在本季度的指導中考慮這一點。顯然，如果這些因素發生變化，那將對我們有利。

The next question is from Omar Dessouky with Bank of America.

下一個問題來自美國銀行的 Omar Dessouky。

Thanks for calling out FairBid and having Google as one of its partners. Could you help us frame the size of that opportunity a little bit and also understand the competitive landscape and real-time bidding?

感謝您呼籲 FairBid 並讓 Google 成為其合作夥伴之一。您能否幫助我們稍微了解一下這個機會的規模，並了解競爭格局和實時出價？

Yes. Sure, Omar. Yes, we're excited because Google only announced a handful of partners that they're integrating with, and we were one of them. So it was really with the biggest mediation players in the industry. So we're quite proud of that.

是的。當然，奧馬爾。是的，我們很興奮，因為谷歌只宣布了他們正在整合的少數合作夥伴，而我們就是其中之一。因此，這確實與業內最大的中介機構有關。所以我們為此感到非常自豪。

And our main issue on mediation has not been on the supply side in terms of getting publisher access. It's really having the share of voice on the demand side bidding into the platform. And so now really being able to add the strength of Google's, I'll call it, firehose of demand they can bring into the supply we can mediate really helps our mediation platform's competitiveness and scale.

我們關於調解的主要問題不是在獲得發布者訪問權方面的供應方。它確實在需求方投標平台上擁有話語權。所以現在真的能夠增加谷歌的力量，我稱之為，他們可以將大量需求帶入我們可以調解的供應中，這確實有助於我們調解平台的競爭力和規模。

So that's something we're excited about because it's really about improving the share of voice that you're running on all these different apps on consumers' devices. And so this is a big win in terms of being able to add more demand to our supply.

所以這是我們感到興奮的事情，因為它真的是關於提高你在消費者設備上的所有這些不同應用程序上運行的語音份額。因此，就能夠為我們的供應增加更多需求而言，這是一個巨大的勝利。

The next question is from Anthony Stoss with Craig-Hallum.

下一個問題來自 Anthony Stoss 和 Craig-Hallum。

Bill, a couple of questions related to the timing of that contract that didn't happen. Do you expect any revenue to hit in the June quarter?

比爾，有幾個問題與未發生的合同時間有關。您預計 6 月季度會有收入嗎？

Yes, I'll let Barrett take that one.

是的，我會讓巴雷特拿那個。

Yes. So just to clarify, we entered into the arrangement in the quarter -- in the March quarter. The timing of the recognition of the revenues was different than we anticipated, and that shifted into the fiscal '24, just to clarify that. And that timing of [revenue] will be throughout the year.

是的。因此，為了澄清起見，我們在本季度 - 在三月季度進行了安排。確認收入的時間與我們預期的不同，並且轉移到 24 財年，只是為了澄清這一點。 [收入] 的時間將貫穿全年。

All right. So do you not expect any for the June quarter, I guess, my question.

好的。那麼，我想，我的問題是，你對 6 月季度沒有任何期望嗎？

Well, so we won't spell out the particular assumptions in the guidance, but we do anticipate some of that revenue will flow into June as well as other contracts that we've executed in the past.

好吧，所以我們不會在指南中詳細說明具體的假設，但我們確實預計部分收入將流入 6 月以及我們過去執行的其他合同。

Got it. And then, Bill, late in the quarter, you were at a conference, you're talking about Digital Turbine signing its biggest contract in history with [Timo], and you rattle off a whole bunch of others. Were you able to book revenue from Timo in March? And what would you expect from them specifically up sequentially in June?

知道了。然後，比爾，在本季度末，你在一個會議上，你正在談論 Digital Turbine 與 [Timo] 簽署其歷史上最大的合同，並且你喋喋不休地談論了一大堆其他人。你能在 3 月份從 Timo 那裡獲得收入嗎？您對他們在 6 月份的具體順序有何期望？

Yes. I'd say that right now, we're running revenue with some of our O&O partners today on [Timo] but the amount of revenue they want to run versus the amount of supply that's available to be run is where the mismatch is. And I mentioned that we kind of -- we signed greater than mid 8-figure deal with Timo that they really wanted to deleverage our platform.

是的。我現在要說的是，我們今天在 [Timo] 上與我們的一些 O&O 合作夥伴一起經營收入，但他們想要經營的收入金額與可經營的供應量之間存在不匹配之處。我提到我們有點 - 我們與 Timo 簽署了超過 8 位數的協議，他們真的想去槓桿化我們的平台。

But given a lot of the, I'll call it, politics around Chinese apps on U.S. devices right now, whether it's one player or multiple players, it's something I think that our O&O partners are taking a very cautious stance on.

但鑑於目前美國設備上圍繞中國應用程序的很多政治，我稱之為政治，無論是一個玩家還是多個玩家，我認為我們的 O&O 合作夥伴正在採取非常謹慎的立場。

I don't expect that to continue. And so if and when that changes, that would be a really nice tailwind for our business because we'd be adding some really good demand onto the platforms at very high rates. But for now, we wanted to be cautious in our approach for the current guide to assume that, that doesn't happen at any scale for us.

我不希望這種情況繼續下去。因此，如果這種情況發生變化，那對我們的業務來說將是一個非常好的順風，因為我們將以非常高的速度在平台上增加一些非常好的需求。但就目前而言，我們希望對我們當前指南的方法持謹慎態度，假設這對我們來說不會發生在任何規模。

Got you. Two last questions, and maybe both probably for Barrett. When you look at the remainder of fiscal 2024 versus 2023, would you expect revenues to be up year-over-year? And then also give us a sense on kind of the trajectory on gross margins throughout the year.

明白了最後兩個問題，也許都是針對巴雷特的。當您比較 2024 財年與 2023 財年的剩餘時間時，您預計收入會同比增長嗎？然後也讓我們了解全年毛利率的軌跡。

Yes. So as we think about the year, obviously, we don't guide to the -- for the full year. We provided guidance for the June quarter. I think the things that would be important to the growth factors beyond the strategic initiatives that Bill touched on would be the macro environment. And our expectation is that we see improvements in the second half of the calendar year.

是的。因此，當我們考慮這一年時，顯然，我們不會指導 - 全年。我們為 6 月季度提供了指導。我認為，除了比爾提到的戰略舉措之外，對增長因素重要的是宏觀環境。我們的期望是我們會在日曆年下半年看到改善。

And then on the margin profile, I think what we've commented, we've seen a little bit of fluctuations over time in our margin -- our gross margins, if that's what you're referring to, or EBITDA margins?

然後在利潤率方面，我想我們已經評論過，我們已經看到我們的利潤率隨著時間的推移出現了一些波動——我們的毛利率，如果你指的是毛利率，還是 EBITDA 利潤率？

Gross margins.

毛利率。

Gross margin. We would expect those to kind of stabilize in the high 40 range in the near term. But again, our long-term growth expectations around margins that they would continue to expand.

毛利率。我們預計這些指標在短期內會穩定在 40 的高位範圍內。但同樣，我們對利潤率的長期增長預期將繼續擴大。

(Operator Instructions)

（操作員說明）

The next question is from Dan Day with B. Riley.

下一個問題來自 Dan Day 和 B. Riley。

So maybe just a little more about your expectations for device shipments in the June quarter. What's embedded in there for the guide, I appreciate the commentary you gave around the double-digit decline in the March quarter. And then you also talked about U.S. RPD. Anything you can provide on international RPD, how that's trended? Anything you're doing to try and close that gap with U.S. RPD would be great.

因此，也許更多關於您對 6 月季度設備出貨量的預期。指南中包含的內容，我感謝您對 3 月季度兩位數下降的評論。然後你還談到了美國 RPD。您可以提供有關國際 RPD 的任何信息，趨勢如何？您為縮小與美國 RPD 的差距所做的任何努力都會很棒。

Yes. Sure, Dan. I'll take that. As far as first on international RPD, we are basically flat on our international RPD sequentially. We've got work to do there. So given there was some seasonality in the December quarter, I'm not saying it's not horrible, but it's not something we're happy with. I think our expectations continue to be higher, and we can do more.

是的。當然，丹。我會接受的。就國際 RPD 而言，我們的國際 RPD 順序基本持平。我們有工作要做。因此，鑑於 12 月季度存在一些季節性，我並不是說這並不可怕，但我們對此並不滿意。我認為我們的期望繼續提高，我們可以做得更多。

The one thing about the international RPD is that it also varies by country. So if we're in developing countries versus developed countries on devices that can skew your international headline number a little bit, so for example, we do more devices in Latin America than Western Europe. The RPDs are a little lower. So your overalls would be lower if that makes sense.

關於國際 RPD 的一件事是它也因國家/地區而異。因此，如果我們在發展中國家與發達國家的設備上可能會稍微扭曲您的國際標題數字，例如，我們在拉丁美洲做的設備比西歐多。 RPD 略低。所以如果有意義的話，你的工作服會更低。

But on the domestic side, we've continue to focus in on some modest declines on devices here in the U.S. for the current quarter baked into our guide. Obviously, if that changes here over the next 5 or 6 weeks, that would be a tailwind for our business. But for right now, our assumption is that the trends are going to continue as we've seen.

但在國內方面，我們繼續關注本季度美國設備的一些適度下降，這些下降已納入我們的指南。顯然，如果這種情況在接下來的 5 或 6 週內發生變化，那將對我們的業務有利。但就目前而言，我們的假設是趨勢將像我們所看到的那樣繼續下去。

And then anything you can provide if I look at like the App Growth Platform line, 35% year-over-year decline, like how much of that was due to these noncore business lines being shut down versus like what it would have been, had those not been in it a year before. I think it would just help us frame up like what you guys are doing organically versus any of the peers out there in mobile ad tech.

然後你可以提供任何你能提供的東西，如果我看一下 App Growth Platform 系列，同比下降 35%，比如其中有多少是由於這些非核心業務線被關閉而不是像它本來的那樣，有那些一年前沒有參加過的人。我認為這只會幫助我們將你們正在做的事情與移動廣告技術領域的任何同行進行比較。

Yes. So I think you think of it as the -- some of the legacy that we're winding down is in the range of kind of 10% of that historical revenue mix. The other thing that we're doing is, as we combine these platforms, there's an impact as they migrate. And those challenges -- or those revenue headwinds are, I wouldn't spell them out, but they're modest in the particular quarter.

是的。所以我認為你認為它是——我們正在逐漸減少的一些遺產在歷史收入組合的 10% 左右。我們正在做的另一件事是，當我們結合這些平台時，它們會隨著遷移而產生影響。而那些挑戰——或者那些收入逆風，我不會把它們拼出來，但它們在特定的季度是適度的。

If I could sneak one more in. Just for another quarter down the line with GamesHub, these alternative app store products you guys are working on, any better idea of when these might start to be a revenue growth driver? Or is it just kind of still way too early to say?

如果我能再偷偷加入一個。就在 GamesHub 的下一個季度，你們正在開發這些替代的應用程序商店產品，關於這些產品何時可能開始成為收入增長的驅動力有更好的想法嗎？還是說現在還為時過早？

Yes. I mean, we're seeing revenue on the products today. They're contributing incremental revenue that we didn't have last year. It's not in a place where it's moving the needle that -- but it is in a place where it is showing growth. So our optimism is we're going to continue to talk about it improving sequentially.

是的。我的意思是，我們今天看到了產品的收入。他們貢獻了我們去年沒有的增量收入。它不在移動針頭的地方 - 但它在顯示增長的地方。因此，我們樂觀地認為，我們將繼續討論它的順序改進。

And that's why I kind of referenced kind of the early days of our Dynamic Install business many, many years ago where it took a while to get going, but then once you get it going and each partner ramps by themselves and then you keep adding additional partners to it, that's why you really drive the top line growth.

這就是為什麼我提到了很多很多年前我們動態安裝業務的早期階段，在那裡需要一段時間才能開始，但是一旦你開始了，每個合作夥伴都會自己增加，然後你會繼續添加額外的合作夥伴，這就是您真正推動收入增長的原因。

And so our expectations is that something you're going to see as we go forward in time. The product market fit has been extremely encouraging from what we've seen in the marketplace. And now it's just a matter of kind of putting all the operational touches on it to put it in place to scale. And that's where kind of the part we're focused on right now.

因此，我們的期望是，隨著時間的推移，你會看到一些東西。從我們在市場上看到的情況來看，產品市場契合度非常令人鼓舞。現在，只需對它進行所有操作接觸，使其到位即可擴展。這就是我們現在關注的部分。

This concludes our question-and-answer session. I would like to turn the conference back over to Bill Stone for any closing remarks.

我們的問答環節到此結束。我想將會議轉回 Bill Stone 的閉幕詞。

Yes. Thanks, everyone, for joining the call today, and we look forward to reporting on our progress against all the points we made on tonight's call. We'll talk to you again on our fiscal '24 first quarter call in a few months. Thanks, and have a great night.

是的。感謝大家參加今天的電話會議，我們期待著報告我們在今晚電話會議上提出的所有要點的進展情況。我們將在幾個月後的 24 財年第一季度電話會議上再次與您交談。謝謝，祝你有個愉快的夜晚。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。