Digital Turbine Inc (APPS) 2024 Q1 法說會逐字稿

Good day, and welcome to the Digital Turbine Fiscal 2024 First Quarter Earnings Conference Call. (Operator Instructions) Please note that today's event is being recorded. I would now like to turn the conference over to Brian Bartholomew, Senior Vice President of Capital Markets. Please go ahead, sir.

美好的一天，歡迎參加數字渦輪機 2024 財年第一季度收益電話會議。 （操作員說明）請注意，今天的活動正在錄製中。我現在想將會議交給資本市場高級副總裁布萊恩·巴塞洛繆 (Brian Bartholomew)。請繼續，先生。

Thanks, Chris. Good afternoon, and welcome to the Digital Turbine Fiscal Year 2024 First Quarter Earnings Conference Call. Joining me on the call today to discuss our results are CEO, Bill Stone; and CFO, Barrett Garrison.

謝謝，克里斯。下午好，歡迎參加數字渦輪機 2024 財年第一季度收益電話會議。今天與我一起參加電話會議討論我們業績的有首席執行官比爾·斯通 (Bill Stone)；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. 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.

在我們開始之前，我想藉此機會提醒您，我們今天的言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、期望和信念，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。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業績，有些假設將不可避免地被證明是錯誤的。除法律要求外，我們不承擔更新任何前瞻性陳述的義務。

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.

有關可能導致我們的實際結果與前瞻性聲明中預期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。此外，在這次電話會議中，我們將討論某些非公認會計原則的業績衡量指標。非 GAAP 衡量標準不能替代 GAAP 衡量標準。請參閱今天的新聞稿，了解有關使用非 GAAP 衡量標準的局限性以及這些非 GAAP 財務業績與最具可比性 GAAP 衡量標準的調節的重要信息。

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比爾·斯通先生。

Thanks, Brian, and thank you all for joining our call tonight. For the June quarter, I was pleased that we beat the top end of our guidance range, both on the top and bottom lines, but we still have a lot of work to do to reach both our internal expectations and the potential of our broader total addressable market, or TAM.

謝謝布萊恩，也感謝大家今晚加入我們的電話會議。對於六月季度，我很高興我們在營收和利潤方面都超過了指導範圍的上限，但我們仍然有很多工作要做，以達到我們的內部預期和更廣泛的總體潛力可尋址市場（TAM ）。

I was pleased that we had a very clean quarter as operationally, we sequentially improved our business performance across key financial metrics. Our strategy is not simply to harvest our profitable products for short-term financial performance, but rather use our profitability to make capital investments against the future with new technology platforming, new ad tech capabilities, our hub, alternative app distribution, and SingleTap. We believe these investments will prove to be well served against our future growth. I'll provide updates on those future growth drivers after providing some operational updates and commentary on the current business.

我很高興我們的季度運營非常乾淨，我們在關鍵財務指標上的業務績效相繼提高。我們的戰略不僅僅是為了短期財務業績而收穫我們的盈利產品，而是利用我們的盈利能力通過新技術平台、新廣告技術能力、我們的中心、替代應用程序分發和SingleTap 進行針對未來的資本投資。我們相信這些投資將證明對我們未來的增長有很好的幫助。在提供一些運營更新和對當前業務的評論之後，我將提供有關這些未來增長動力的更新。

For the June quarter, we had $146.4 million of revenue, $27 million of EBITDA and $0.18 of non-GAAP earnings per share and gross profit margins were 47.1%. All of these financial metrics represented sequential improvements from our March quarterly results. From a segment perspective, despite continued soft device sales, our on-device business, or ODS, also grew sequentially to $98.3 million.

6 月份季度，我們的收入為 1.464 億美元，EBITDA 為 2700 萬美元，非 GAAP 每股收益為 0.18 美元，毛利率為 47.1%。所有這些財務指標都代表了我們三月份季度業績的連續改善。從細分市場的角度來看，儘管軟設備銷售持續增長，但我們的設備端業務（ODS）也連續增長至 9830 萬美元。

Operationally, I was pleased with our improvement of revenue per device or RPD in the U.S., which continues to grow and set an all-time high in the June quarter. Over the past 5 years, our RPDs have accreted from just over $2 in fiscal year 2020 to $3 in fiscal 2021 to $4 in fiscal 2022 to $5 in fiscal '23 and today, is now over $6.

在運營方面，我對美國每台設備收入或 RPD 的改善感到滿意，該收入繼續增長並在六月季度創下歷史新高。在過去的5 年裡，我們的RPD 從2020 財年的略高於2 美元增加到2021 財年的3 美元，再到2022 財年的4 美元，再到23 財年的5 美元，如今已超過6 美元。

We continue to see strong demand from our platform, both from advertisers and new products contributing more revenue to each device. Expanding global demand to our U.S. device supply has also been a big driver of those improved revenue per device results as 2 years ago, U.S. demand was approximately 50% of our U.S. supply and today, it is less than 25%. In particular, we have seen some positive movement on the willingness of our U.S. supply partners to soften their positions on some popular Chinese applications, which increases the overall demand for our platform. While we expect the current quarter to experience continued softness in the U.S. devices, we expect a strong global pipeline of expanding telcos and OEM relationships to help offset any macro weakness in device sales in the future.

我們繼續看到我們平台的強勁需求，包括廣告商和新產品為每台設備帶來更多收入。全球對我們美國設備供應的需求擴大也是每台設備收入提高的一個重要推動因素，因為兩年前，美國需求約占我們美國供應量的 50%，而如今，這一比例還不到 25%。特別是，我們看到美國供應合作夥伴願意軟化對一些流行的中國應用程序的立場，這增加了對我們平台的整體需求。雖然我們預計本季度美國設備將持續疲軟，但我們預計，電信公司和 OEM 關係不斷擴大的全球管道將有助於抵消未來設備銷售的任何宏觀疲軟。

We also made progress on our SingleTap enablement. As a reminder, we have 5 ways we monetize SingleTap. The first is direct demand via our demand side platform, where we leverage our own AI and machine learning to target advertising to SingleTap-enabled devices. The second is enabling other third-party demand partners from companies who can buy advertising on our SingleTap-enabled supply. The third is licensing mobile web traffic from brands such as Epic Games' Fortnite title, which then uses SingleTap to convert its web visitors into native Fortnite users.

我們在 SingleTap 支持方面也取得了進展。提醒一下，我們有 5 種通過 SingleTap 獲利的方法。第一個是通過我們的需求方平台產生的直接需求，我們利用自己的人工智能和機器學習將廣告定位到支持 SingleTap 的設備。第二個是讓來自公司的其他第三方需求合作夥伴能夠在我們支持 SingleTap 的供應上購買廣告。第三種是從 Epic Games 的 Fortnite 遊戲等品牌獲得移動網絡流量許可，然後使用 SingleTap 將其網絡訪問者轉換為原生 Fortnite 用戶。

The fourth is distributing alternative versions of applications, whether that's our own DT Hub version and Amazon version and so on for direct distribution device. And the fifth is enabling large distributors of application installs such as large social media players to leverage the conversion rate benefits of SingleTap across their entire network. And given there are so many use cases of how we utilize SingleTap going forward, we're going to focus on talking about SingleTap in the aggregate versus confusing investors with each individual use case, which may be seen as overwhelming with various operational metrics.

第四是分發應用程序的替代版本，無論是我們自己的DT Hub版本還是亞馬遜版本等等用於直接分發設備。第五是使大型社交媒體播放器等應用程序安裝的大型分銷商能夠在整個網絡中利用 SingleTap 的轉化率優勢。鑑於我們未來如何利用 SingleTap 的用例如此之多，我們將重點討論 SingleTap 的整體情況，而不是讓投資者對每個單獨的用例感到困惑，這可能會被各種運營指標視為壓倒性的。

However, given the investor focus on this product and interest in social media players, in particular, I did want to provide some operational updates on our progress. It's early days, but we have now generated our first revenues with TikTok, who is running SingleTap campaigns for their advertisers wanted to use their own version of an application to their users. We are also launching this quarter with LinkedIn, who's converting their mobile web users to native app users. And finally, we expect to begin a revenue-generating pilot with another large social media company across their entire user base here in the U.S. later this calendar year. Later in my remarks, I want to connect these operational updates to where we see SingleTap fitting in with the alternative app distribution markets of the future.

然而，考慮到投資者對該產品的關注以及對社交媒體播放器的興趣，我確實想提供一些有關我們進展的運營更新。現在還處於早期階段，但我們現在已經通過 TikTok 獲得了第一筆收入，TikTok 正在為希望向用戶使用他們自己版本的應用程序的廣告商運行 SingleTap 活動。本季度我們還將與 LinkedIn 合作，後者正在將其移動網絡用戶轉換為本機應用程序用戶。最後，我們預計將於今年晚些時候與另一家大型社交媒體公司在美國的整個用戶群開始創收試點。在稍後的發言中，我想將這些操作更新與我們看到的 SingleTap 與未來替代應用程序分發市場的契合點聯繫起來。

Our App Growth Platform segment, or AGP business, I was pleased to see our business show sequential growth in the June quarter, which was up nearly 10% from the March quarter. We are seeing sequential improved ECPM rates on both our brand demand and DSP from advertisers. And in particular, it was encouraging to see our brand business show double-digit sequential growth as we expand our relationships with large advertisers such as Starbucks and Chase Bank.

我們的應用程序增長平台業務，即 AGP 業務，我很高興看到我們的業務在 6 月季度呈現環比增長，比 3 月季度增長了近 10%。我們看到我們的品牌需求和廣告商的 DSP 的 ECPM 率連續提高。尤其令人鼓舞的是，隨著我們擴大與星巴克和大通銀行等大型廣告商的關係，我們的品牌業務呈現兩位數的連續增長。

The macro market has stabilized and our execution is improving. In addition, our exchange business had solid double-digit sequential growth in the quarter, and the exchange business continues to be well diversified globally with approximately 40% of our publishers in North and South America, 35% in Europe, Middle East, Africa, and 25% in Asia Pacific.

宏觀市場已經企穩，我們的執行力正在改善。此外，我們的交換業務在本季度實現了兩位數的穩定連續增長，並且交換業務在全球範圍內繼續實現多元化，大約40% 的發行商位於北美和南美，35% 位於歐洲、中東、非洲、亞太地區佔 25%。

We have made numerous enhancements to our ad tech capabilities such as improved AI and machine learning optimizations, ad rendering, new ad formats, and new bidding methodologies. We spent the last year integrating the companies and are now finally building upon the integration with new products and services. The combination of the new demand solutions and the expansion of supply types are allowing us to focus on controlling what we can control to drive improved performance.

我們對廣告技術能力進行了許多增強，例如改進的人工智能和機器學習優化、廣告渲染、新的廣告格式和新的出價方法。去年我們整合了這些公司，現在終於開始與新產品和服務進行整合。新的需求解決方案和供應類型的擴展相結合，使我們能夠專注於控制我們可以控制的內容，以推動績效的提高。

Combined with a more stable macro environment for ad spend, we expect these new ad tech capabilities to be a growth driver for our business as we enter the second half of this fiscal year.

結合更穩定的廣告支出宏觀環境，我們預計這些新的廣告技術能力將在進入本財年下半年時成為我們業務的增長動力。

Turning to the future. I want to spend a few moments highlighting our longer-term growth drivers. I mentioned SingleTap earlier in my remarks as a strategic growth opportunity. But as we mentioned on prior calls, we are building alternative app distribution for app publishers. We believe we're uniquely positioned with our on-device technology, our expansion of publisher relationships and our operator and OEM relationships. We've launched our first alternative app distribution products, which we brand as DT Hub with 4 operators here in the United States, leveraging our Aptoide investment and are generating revenue today.

展望未來。我想花一些時間強調我們的長期增長動力。我之前在發言中提到 SingleTap 是一個戰略增長機會。但正如我們在之前的電話會議中提到的，我們正在為應用程序發行商構建替代應用程序分發方式。我們相信，我們憑藉設備端技術、發行商關係的擴展以及運營商和 OEM 關係而處於獨特的地位。我們已經推出了第一個替代應用程序分發產品，我們將其品牌命名為 DT Hub，與美國的 4 家運營商合作，利用我們的 Aptoide 投資，目前正在產生收入。

The carrier feedback has been impressive and supportive and it's very early days and not yet material to our overall results, but we are seeing incremental higher RPDs from devices engaging with our hub product, which is a combination of incremental in-app purchase revenues and incremental cost per install revenues from helping publishers acquire more users. So the focus for us is driving more devices, more engagement and more downloads. We have not started leveraging our in-app advertising assets into this alternative app distribution, but we do expect to add that as an additional revenue stream to this opportunity. And then all 3 of these monetization capabilities being drivers of RPD accretion into the future.

運營商的反饋令人印象深刻且具有支持性，而且現在還處於早期階段，對我們的整體業績還沒有實質性影響，但我們看到與我們的集線器產品配合使用的設備的RPD 不斷提高，這是增量應用內購買收入和增量的結合。每次安裝成本來自幫助發布商獲得更多用戶的收入。因此，我們的重點是推動更多設備、更多參與度和更多下載。我們尚未開始將我們的應用內廣告資產利用到這種替代應用程序分發中，但我們確實希望將其添加為此機會的額外收入來源。所有這三種貨幣化能力都將成為未來 RPD 增長的驅動力。

We also believe the global regulatory environment will provide additional thrust to this vision. Many of you may have seen articles in the press talking about a concept of direct distribution of applications involving mega cap tech players. This is highly strategic, and I want to spend a few moments describing it. Direct distribution is where any app publisher, such as a Spotify, Netflix or Epic Games, can run advertising for a user to install its application. But rather than take the user to the Apple or Google store after clicking on the advertisement, it would direct download the application to the device with its own unique version of an application outside of the traditional app stores. And to achieve this, there are some market pain points that need to be solved, such as making it easy for the app publishers to port their app to a new version, managing the payments and advertising inside the application, installing the apps without friction as there may not be a store involved at all, and managing the curation of the applications.

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。你們中的許多人可能在媒體上看到過有關直接分發涉及大型科技公司的應用程序概念的文章。這是高度戰略性的，我想花一些時間來描述它。直接分發是指任何應用程序發行商（例如 Spotify、Netflix 或 Epic Games）都可以為用戶安裝其應用程序投放廣告。但它不會在點擊廣告後將用戶帶到蘋果或谷歌商店，而是直接將應用程序下載到設備上，並在傳統應用程序商店之外使用自己獨特的應用程序版本。為了實現這一目標，有一些市場痛點需要解決，例如讓應用程序發行商能夠輕鬆地將其應用程序移植到新版本、管理應用程序內部的支付和廣告、無摩擦地安裝應用程序可能根本不涉及商店並管理應用程序的管理。

And these are all things that Digital Turbine is uniquely positioned to deliver on, whether directly via our own hub product, or indirectly through white labeling our capabilities to large players wanting to leverage their large audiences. And to accomplish all of these new growth areas, allocating resources will be key. In addition to paying down our debt, we are allocating capital to these new investments with a new dedicated team focused on unlocking this future growth opportunity. And despite these investments, our cash operating expenses are flat from the June quarter last year as we were focused on running lean and efficient with our legacy products while simultaneously investing in new platforms and products for future growth and scale. And Barrett will provide additional details in his remarks.

這些都是 Digital Turbine 獨特的優勢，無論是直接通過我們自己的中心產品，還是間接通過向想要利用其大量受眾的大型企業提供我們的能力的白標，來提供這些服務。為了實現所有這些新的增長領域，分配資源將是關鍵。除了償還債務外，我們還為這些新投資分配資金，並組建了一個新的專門團隊，專注於釋放這一未來的增長機會。儘管進行了這些投資，我們的現金運營支出與去年六月季度持平，因為我們專注於傳統產品的精益和高效運營，同時投資新平台和產品以實現未來的增長和規模。巴雷特將在講話中提供更多細節。

And before I turn it over to Barrett, I want investors to take away from the quarter that we had a very clean quarter, and operationally, we sequentially improved our business performance across key financial metrics. And we're making progress against our longer-term vision but still have much work to do. Our strategy is to use that profitability to make investments against the future with new technology platforms, new ad tech capabilities, our hub and alternative app distribution and SingleTap.

在我將其交給巴雷特之前，我希望投資者從我們的季度中獲得一個非常乾淨的季度，並且在運營上，我們在關鍵財務指標上相繼改善了我們的業務績效。我們正在朝著長期願景取得進展，但仍有許多工作要做。我們的戰略是利用這種盈利能力，通過新技術平台、新廣告技術能力、我們的中心和替代應用程序分發以及 SingleTap 進行面向未來的投資。

And with that, this 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，讓他帶你了解這些數字。

Thanks, Bill, and good afternoon, everyone. Overall, we were pleased to see results in the quarter ahead of our expectations for both top line and profitability measures. Revenue of $146.4 million in the quarter was up 4% sequentially and down 22% year-on-year with revenues improving sequentially across both segments of our business, on-device solutions, or ODS, and our app growth platform, or AGP, from the March quarter.

謝謝比爾，大家下午好。總體而言，我們很高興看到本季度的業績超出了我們對營收和盈利能力指標的預期。本季度收入為 1.464 億美元，環比增長 4%，同比下降 22%，我們的業務、設備上解決方案 (ODS) 和應用程序增長平台 (AGP) 兩個業務部門的收入都在環比增長。三月季度。

Within ODS, revenues were slightly up sequentially from the March quarter and down 17% to the prior year. However, as Bill referenced, while we saw softer device volumes in Q1, this impact was offset by improved U.S. revenue per device, which exceeded $6 per device and increased both sequentially and year-on-year. As we've discussed in the past, while our content business has stabilized in the quarter, our ODS segment continues to experience headwinds from our prepaid content media business from a year-over-year comparison. And we expect this grow over comp to run off by Q3 within the December quarter.

在 ODS 中，收入比 3 月份季度略有增長，但比去年同期下降 17%。然而，正如Bill 提到的，雖然我們看到第一季度的設備銷量有所下降，但這種影響被美國每台設備收入的增長所抵消，每台設備的收入超過6 美元，並且環比和同比均有所增長。正如我們過去所討論的，雖然我們的內容業務在本季度已趨於穩定，但與去年同期相比，我們的 ODS 部門繼續遭受預付費內容媒體業務的不利影響。我們預計這一增長將在 12 月份季度的第三季度結束。

On our AGP business, Q1 revenues increased 9% sequentially and declined 32% over prior year. While we're encouraged by the improvement in the core business, the overall decline in AGP year-on-year continues to be driven largely by the short-term impact of the consolidation and exiting of certain legacy AdColony business lines that we have discussed previously. And we would expect these comps to fully run off by the back half of this fiscal year.

在我們的 AGP 業務上，第一季度收入環比增長 9%，比去年同期下降 32%。雖然我們對核心業務的改善感到鼓舞，但 AGP 同比整體下降仍然主要是由我們之前討論過的某些遺留 AdColony 業務線的整合和退出的短期影響推動的。我們預計這些比較將在本財年下半年完全結束。

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

我重申比爾早些時候的評論，即儘管近期存在阻力，但我們從為整合這些業務而進行的投資中看到的整合效益使我們感到鼓舞，並預計這些舉措將為我們未來的增長帶來積極的回報。

Our consolidated gross margin was 47% in Q1, which increased from Q4 sequentially and was down from 50% in Q1 from the prior year. Improvements in margins sequentially were largely driven by the combination of quarterly product mix shifts, where we experienced an increase in the mix of certain higher-margin products or those where revenues are recognized on a net basis. 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 opportunities.

第一季度我們的綜合毛利率為 47%，比第四季度有所增長，但比去年第一季度的 50% 有所下降。利潤率的連續改善主要是由季度產品組合變化共同推動的，其中我們經歷了某些利潤率較高的產品或按淨額確認收入的產品組合的增加。提醒一下，雖然毛利率可能會因季度而波動，但我們通常預計，隨著我們繼續抓住增長機會，長期利潤率將會擴大。

We remain disciplined with expenses and cash operating expenses were $42 million in the quarter, increasing 1% from prior year and represented 29% of revenues in the quarter. I'd highlight, while our expenses have remained relatively constant, we are making important investments that Bill referenced to ensure we capitalize on the full potential of our growth strategy. These internal initiatives are focused on integrating the technology platforms and financial and back office systems across our assets, also developing new ad tech capabilities and strategic growth initiatives Bill discussed, namely within DT Hub, alternative app distribution and SingleTap.

我們仍然嚴格控制開支，本季度現金運營開支為 4200 萬美元，比上年增長 1%，佔本季度收入的 29%。我想強調的是，雖然我們的開支保持相對穩定，但我們正在進行比爾提到的重要投資，以確保我們充分利用增長戰略的潛力。這些內部計劃的重點是整合我們資產中的技術平台以及財務和後台系統，同時開發新的廣告技術能力和比爾討論的戰略增長計劃，即在 DT Hub、替代應用程序分發和 SingleTap 內。

While the current and near-term periods will incur increased costs due to the completion of these integrations and new growth initiatives, we expect both the efficiencies and the growth to begin to be reflected in our results as we move into calendar year 2024. During this investment phase, we will continue to remain highly focused on operating efficiency.

雖然由於這些整合和新的增長計劃的完成，當前和近期的成本將會增加，但我們預計，隨著進入 2024 年，效率和增長將開始反映在我們的業績中。投資階段，我們將繼續高度關注運營效率。

Turning to our profitability. Our adjusted EBITDA of $27 million in the quarter increased $3.8 million sequentially and was down from $52 million in the prior year. Our EBITDA margin of 18% grew sequentially from 16% in the March quarter. And given the inherent operating leverage in our business model, we expect the active focus on expense measures and integration efforts we are taking will strengthen the platform as we return to growth and enable a greater portion of those dollars to fall to the bottom line.

轉向我們的盈利能力。本季度調整後 EBITDA 為 2700 萬美元，比上年同期的 5200 萬美元有所下降，比上一季度增加了 380 萬美元。我們的 EBITDA 利潤率為 18%，較三月份季度的 16% 有所增長。考慮到我們業務模式中固有的運營槓桿，我們預計，隨著我們恢復增長，積極關注費用措施和我們正在採取的整合努力將加強該平台，並使這些美元中的更大一部分落入底線。

In the quarter, we achieved non-GAAP adjusted net income of $18.2 million or $0.18 per share as compared to $38.7 million or $0.38 per share in the first quarter of last year. As compared to prior year, we incurred greater interest expense driven by the rising rate environment on our outstanding debt.

本季度，我們實現非 GAAP 調整後淨利潤 1,820 萬美元，即每股 0.18 美元，而去年第一季度的淨利潤為 3,870 萬美元，即每股 0.38 美元。與去年相比，由於未償債務利率上升，我們產生了更多的利息支出。

Our GAAP net loss was $8.4 million or $0.08 per share based on 103.5 million diluted shares outstanding and compared to a prior year net income of $15 million or $0.15 per share on 102.7 million diluted shares outstanding. Our cash balance at the end of the quarter was $58.6 million after paying down an additional $5 million in debt using cash flows from operation to further deleverage our debt position. Cash flow and working capital were negatively impacted by the timing of revenues, which were weighted towards the end of the quarter, and we expect to return to generating positive free cash flow in Q3.

根據1.035 億稀釋後流通股計算，我們的GAAP 淨虧損為840 萬美元，即每股0.08 美元，而上一年淨利潤為1500 萬美元，即根據1.027 億稀釋後流通股計算的每股0.15 美元。在利用運營現金流進一步去槓桿化債務狀況後，我們的現金餘額為 5860 萬美元。現金流和營運資本受到收入時間的負面影響，這些收入在本季度末加權，我們預計第三季度將恢復產生正的自由現金流。

Our debt balance ended the quarter at $408 million drawn on our revolving credit facility. And as our business continues to strengthen, we would expect to continue to pay down our revolver in larger quarterly increments. We continue to be confident in our balance sheet and our capital position, given our profit model, cash flow generation and access to low-cost credit facility.

本季度末，我們利用循環信貸額度的債務餘額為 4.08 億美元。隨著我們的業務不斷加強，我們預計將繼續以更大的季度增量償還我們的左輪手槍。鑑於我們的盈利模式、現金流生成和低成本信貸便利，我們對我們的資產負債表和資本狀況繼續充滿信心。

Now let me turn to our outlook. We currently expect revenue for fiscal Q2 to be between $141 million and $149 million and adjusted EBITDA to be between $25 million and $27 million, and non-GAAP adjusted net income per diluted share to be between $0.13 and $0.15 based on approximately 104 million diluted shares outstanding and an effective tax rate of 25%.

現在讓我談談我們的前景。我們目前預計第二財季的收入將在1.41 億美元至1.49 億美元之間，調整後的EBITDA 將在2500 萬美元至2700 萬美元之間，根據約1.04 億稀釋股計算，非GAAP 調整後每股攤薄淨利潤將在0.13 美元至0.15 美元之間未清償，有效稅率為25%。

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

接下來，讓我將其交還給接線員以開始提問。操作員？

(Operator Instructions) Today's first question comes from Omar Dessouky with Bank of America.

（操作員說明）今天的第一個問題來自美國銀行的 Omar Dessouky。

This is Arthur on for Omar. So my question is on Google's header beating into FairBid. I understand this is still in testing. But I was wondering if you guys could talk a little bit about some of the early signals we're seeing from the initial integrations. And what sort of learnings are you taking away from the initial testing? And probably just on the same note, like if we should be expecting any sort of revenue contribution impact for the current over the next fiscal year?

這是奧馬爾的亞瑟。所以我的問題是 Google 的頭部攻擊 FairBid。據我所知，這仍在測試中。但我想知道你們是否可以談談我們從最初的集成中看到的一些早期信號。您從最初的測試中獲得了哪些經驗教訓？可能只是出於同樣的考慮，就像我們是否應該預期下一財年當前的任何收入貢獻影響一樣？

Yes, sure. I'll take that one. The short answer is yes. We're seeing positive impacts there. And the strategy here is obviously to increase our share of voice and demand into the mediation platform, which then benefits publishers. And so having the ability to bring Google is, obviously, vast demand is a positive for us. Still very early days. I wouldn't characterize it as moving the needle. We're still kind of optimizing what we're doing around that, but it's absolutely something as we think as we go into next year, bringing more demand, bringing the credibility of Google to our publishers is something we think will be a benefit for us.

是的，當然。我會接受那個。簡短的回答是肯定的。我們在那裡看到了積極的影響。這裡的策略顯然是增加我們在中介平台中的話語權和需求份額，從而使出版商受益。因此，顯然，有能力引入谷歌，巨大的需求對我們來說是積極的。還很早。我不會將其描述為移動指針。我們仍在優化我們正在做的事情，但這絕對是我們認為進入明年的事情，帶來更多的需求，為我們的出版商帶來谷歌的可信度，我們認為這將給我們帶來好處我們。

Today's next question comes from Dan Day with B. Riley Securities.

今天的下一個問題來自 B. Riley Securities 的 Dan Day。

Bill, in the past, when you talked about SingleTap on these calls, you've been pretty cautious around kind of the path to material revenue generation. You've been pretty clear you're developing it. Investors should be patient. I didn't hear you say that this time. Can we take that as a sign that you guys maybe have any more visibility than you have in past quarters into it becoming a material revenue contributor? Or am I just reading too much into that?

Bill，過去，當您在這些電話會議上談論 SingleTap 時，您對物質創收的途徑一直非常謹慎。你已經很清楚你正在開發它。投資者應保持耐心。這次我沒聽到你這麼說。我們是否可以將此視為一個跡象，表明你們可能比過去幾個季度對成為物質收入貢獻者有更多的了解？或者我只是讀得太多了？

Yes. We continue to be excited about SingleTap. I mean there's no question about that. It's not -- it was not material to our results in the June quarter, but there's a lot of catalysts that we're seeing into the future right now. And so we're starting to see some excitement around the catalyst and opportunity for scale to really improve on that.

是的。我們仍然對 SingleTap 感到興奮。我的意思是，這是毫無疑問的。事實並非如此——這對我們六月季度的業績並不重要，但我們現在看到了很多未來的催化劑。因此，我們開始看到一些令人興奮的催化劑和規模真正改善的機會。

I will say it will -- it's going to take time, but the encouraging signs are starting to really show for us with the product. And the thing that I really want to remind investors about is we have this embedded base of many, many hundreds of millions of devices, and that's extremely difficult for anyone to replicate. And so having that high amount of devices already out in the market at global scale and our focus to continue to grow that is something, I think, that advertisers, publishers, demand-side platforms and all the people that are going to integrate in this new app world is something I think they're going to want to take advantage of.

我會說它會的——這需要時間，但令人鼓舞的跡像開始真正通過該產品向我們顯現出來。我真正想提醒投資者的是，我們擁有由數以億計的設備組成的嵌入式基礎，這對任何人來說都極其難以復制。因此，我認為，全球範圍內市場上已經有大量的設備，而且我們的重點是繼續增長，廣告商、出版商、需求方平台以及所有將要融入這個領域的人我認為他們會想要利用新的應用程序世界。

I think -- important point I want to also make on this is the integration with the alternative app stores. There's going to be this increasing -- our view is that there's going to be this increasing pressure on the duopoly of app stores today. And that the ability to have a publisher get lower rates to pay is going to -- they're to want to acquire new users and SingleTap is absolutely an enabler to help make that happen to distribute non-Google or non-Apple builds out to customers. So that's going to be something that we're excited about and leveraging our existing hub capabilities to go do.

我認為，我還想強調的一點是與替代應用程序商店的集成。這種情況將會不斷增加——我們的觀點是，當今應用商店的雙寡頭壟斷的壓力將會越來越大。發行商能夠獲得更低的付費率，他們希望獲得新用戶，而 SingleTap 絕對是一個推動者，可以幫助實現這一目標，將非 Google 或非 Apple 的產品分發給顧客。因此，這將是我們感到興奮的事情，並利用我們現有的中心能力去做。

And then just for the fiscal second quarter revenue outlook, the midpoint is right around where fiscal first quarter revenue came in. Just any material difference between the on-device versus the app growth platform segments as far as the outlook goes, or you think pretty flat for both quarter-over-quarter?

然後，僅就第二財季收入前景而言，中點就在第一財季收入的附近。就前景而言，設備上與應用程序增長平台細分市場之間的任何重大差異，或者您認為相當不錯季度環比持平？

Yes. Dan, I think we think about -- in the Q1, we've seen -- we talked -- we touched on the improvements we're seeing in the AGP business near 10% sequential improvement. We think there's a lot of opportunity there. We don't give guidance by segment, but we're seeing nice trends there. We touched on some of the device softness that is sometimes hard to predict. I think we might see that for the near term that's kind of embedded in our guidance. But I think the AGP business is growing nicely on a sequential basis, and I think that might be a continued trend we'd expect to see.

是的。丹，我想我們會考慮——在第一季度，我們已經看到——我們談到了——我們談到了我們在 AGP 業務中看到的改進，接近 10% 的環比改進。我們認為那裡有很多機會。我們不按細分市場提供指導，但我們看到了良好的趨勢。我們談到了一些有時難以預測的設備軟性。我認為我們可能會在短期內看到這一點嵌入到我們的指導中。但我認為 AGP 業務環比增長良好，而且我認為這可能是我們期望看到的持續趨勢。

Today's next question comes from Darren Aftahi with ROTH.

今天的下一個問題來自羅斯的達倫·阿夫塔希 (Darren Aftahi)。

This is [Dylan] on for Darren. I wanted to sort of talk about sort of RPD in the U.S. You mentioned it's an all-time high at $6. I think you sort of said 25% of total supply. So I guess -- I mean, what are sort of your strategies in going after growing that RPD on the international side, both with sort of higher monetization on the existing devices and sort of just capturing more devices in the different markets with some of the partners you've mentioned in the past?

這是[迪倫]為達倫主持的節目。我想談談美國的 RPD。您提到這是 6 美元的歷史高點。我認為你所說的是總供應量的 25%。所以我想 - 我的意思是，你們在國際方面追求增長 RPD 的策略是什麼，既要在現有設備上實現更高的貨幣化，又要在不同市場上用一些設備捕獲更多設備。您過去提到過的合作夥伴？

Yes, sure. What we're seeing right now, it was encouraging, is the diversification of our demand on our U.S. supply. And I wanted to highlight that out, particularly because now we're to a point where we're well north of 50% of the demand coming in to U.S. supply from places outside the United States. And a lot of international advertisers, whether they're from Europe or APAC, want to be on those devices.

是的，當然。令人鼓舞的是，我們現在看到的是我們對美國供應的需求的多樣化。我想強調這一點，特別是因為現在我們已經達到了 50% 的需求來自美國以外的地方。許多國際廣告商，無論是來自歐洲還是亞太地區，都希望在這些設備上投放廣告。

And so being able to bring those on to devices and then we can do strategic demand deals and whether that's carving out things like whether a particular game type or social media or whatever happens to be, allows that international competition as well to come in. And so that allows us to achieve higher rates. So that's something that has been really encouraging for us.

因此，能夠將這些內容帶到設備上，然後我們就可以進行戰略需求交易，無論是開拓特定遊戲類型還是社交媒體或其他任何東西，都可以讓國際競爭進入。這樣我們就能獲得更高的利率。所以這對我們來說是非常令人鼓舞的事情。

Now the key is for us, how do we expand that to other markets, whether that's in Europe or Latin America or what have you. So a major focus area for us to replicate that success that we're seeing in the U.S., outside. That's on the advertiser side. And then the other part would be on the product side. So historically, as you're well aware, we started with dynamic installs as a primary product. But as we've added so many other products to our portfolio, the product growth is also enhancing RPD. So the combination of this more demand on the platform combined with the more products on the platform is really helping drive those accretion and results.

現在對我們來說關鍵是如何將其擴展到其他市場，無論是歐洲還是拉丁美洲還是其他市場。因此，我們的一個主要重點領域是在美國以外複製我們所看到的成功。這是在廣告商方面。然後另一部分將在產品方面。正如您所知，從歷史上看，我們一開始就將動態安裝作為主要產品。但隨著我們在產品組合中添加瞭如此多的其他產品，產品的增長也提高了 RPD。因此，平台上更多的需求與平台上更多的產品相結合，確實有助於推動這些增長和成果。

And sort of as a follow-up. With some of the investments you mentioned with ad tech and with other app stores, like how should we think about the time line of that trade-off of the incremental investment dollars that aren't really bringing in revenue in terms of like the OpEx? Sort of when do you start to see those contribute?

有點像後續行動。對於您提到的廣告技術和其他應用商店的一些投資，例如我們應該如何考慮權衡增量投資的時間線，而這些投資並沒有真正帶來運營支出等收入？您什麼時候開始看到這些貢獻？

Let me start on the revenue side, and I'll turn it over to Barrett on the OpEx side. Right now, in terms of how we're thinking about it in terms of the back end of this year, Barrett mentioned his remarks on AGP showing nice sequential growth. And our view right now is in the short term, as we look at future quarters, in the near term, AGP and these enhancements and things I mentioned in my prepared remarks will be drivers.

讓我從收入方面開始，然後我將把運營支出方面的問題交給 Barrett。現在，就我們如何看待今年年底的情況而言，巴雷特提到了他對 AGP 的評論，顯示出良好的連續增長。我們現在的觀點是短期的，當我們展望未來幾個季度時，在短期內，AGP 和這些增強功能以​​及我在準備好的發言中提到的事情將成為驅動因素。

And as we get into next year, I think you're going to see more things like with the hub and SingleTap and some of these other things ramping. It's how we think about it from a revenue/business perspective. And I'll turn it over to Barrett to talk about the OpEx on the investment side.

當我們進入明年時，我認為您會看到更多的事情，比如集線器和 SingleTap 以及其他一些事情的發展。這就是我們從收入/業務角度思考它的方式。我將把它交給巴雷特來談論投資方面的運營支出。

Yes. Just, Dylan, I think for your model, we touched on it in my remarks. We have -- we're incurring those expenses, some of those excess costs for a lot of the back office systems that we're integrating, bringing the companies together. Those are our financial systems, those are things like our HR systems as well as the investments in the teams that Bill touched on. Those investments are in place today.

是的。只是，迪倫，我認為對於你的模型，我們在發言中談到了它。我們正在承擔這些費用，其中一些是我們正在整合的許多後台系統的超額成本，這些系統將公司整合在一起。這些是我們的財務系統，這些是我們的人力資源系統以及比爾提到的團隊投資。這些投資現已到位。

I think we're going to carry those expenses at kind of similar levels out through the end of the calendar year. And then we'll start to see those costs -- those investments drop off, and you'll start to see efficiencies in both our cost structure as well as the incremental growth in revenues begin to pick up as well.

我認為我們將以類似的水平將這些費用結轉到日曆年年底。然後我們將開始看到這些成本——這些投資下降，你將開始看到我們的成本結構的效率以及收入的增量增長也開始回升。

(Operator Instructions) The next question comes from Anthony Stoss with Craig-Hallum.

（操作員說明）下一個問題來自 Anthony Stoss 和 Craig-Hallum。

Bill, I wanted to ask about this Verge article where they were interviewing a Meta employee, and they're discussing what certainly sounded like SingleTap functionality. If not Digital Turbine, who else could it be?

Bill，我想問一下 Verge 這篇文章，他們正在採訪一位 Meta 員工，他們正在討論聽起來確實像 SingleTap 功能的內容。如果不是 Digital Turbine，還能是誰？

Yes. It's hard for me, Tony, to comment on like things that came from somebody on future speculations, so I'm going to kind of stay away from that. But what I will say is that you're seeing mega cap tech players, not just Meta but others, now talking about alternative app distribution. And you're seeing in specifically in Europe now that the Digital Markets Act is coming into reality. And you're seeing, for example, sideloading of applications on things like iOS 17, it was really opening up a lot of interest from mega cap players.

是的。托尼，我很難對某人對未來的猜測做出類似的評論，所以我會避開這種情況。但我要說的是，你會看到大型科技公司，不僅僅是 Meta，還有其他公司，現在正在談論替代應用程序分發。現在，特別是在歐洲，您會看到《數字市場法案》正在成為現實。例如，您會看到，在 iOS 17 等設備上側載應用程序，這確實引起了大型玩家的極大興趣。

And I'd highlight Amazon, I'd highlight with the Microsoft-Activision Blizzard deal getting done as an example. Meta was in the article you're referencing. So there's a lot of interest starting to see right now. But I think the key is that, okay, it's one thing to have the interest and have the -- want to be able to do this. The question then becomes how.

我要強調亞馬遜，我要強調以微軟與動視暴雪的交易為例。元在您引用的文章中。所以現在已經開始引起很多興趣。但我認為關鍵是，好吧，有興趣並希望能夠做到這一點是一回事。那麼問題就變成瞭如何。

And so when you think about how the apps actually get ported from different versions, how you manage the internal kind of plumbing of the apps, how you make it a friction-free experience if it's not a store, it's being, in fact, direct distributed down to you, how do you curate that on the device with your telco and OEM partners. Those are all things that we've got unique advantages to go to.

因此，當您考慮應用程序實際上如何從不同版本移植、如何管理應用程序的內部管道、如何使其成為無摩擦體驗（如果它不是商店）時，它實際上是直接的分發給您，您如何與電信公司和OEM 合作夥伴在設備上進行管理。這些都是我們擁有獨特優勢的事情。

And so when I mentioned in my comments, doing it directly through DT Hub or doing it white labeling with other large players, I think we're in a pretty unique spot here to really capture this wave of alternative app distribution. And so it's something from our perspective -- I think about CTV a few years ago and how CTV is today. I almost say about alternative app distribution is kind of in the early innings today and something as the regulations and some of these other large players and just customers and publishers really wanting alternative choice, I think it's going to be some really nice opportunities that we're really uniquely positioned to just given the embedded base of devices with our technology already on them.

因此，當我在評論中提到直接通過 DT Hub 進行操作或與其他大型參與者進行白標操作時，我認為我們處於一個非常獨特的位置，可以真正捕捉到這波替代應用程序分發浪潮。所以這是從我們的角度來看的——我想到了幾年前的 CTV 以及今天的 CTV。我幾乎要說的是，替代應用程序分發是在今天的早期階段，以及法規和其他一些大型參與者以及真正想要替代選擇的客戶和發行商，我認為這將是我們的一些非常好的機會。我們確實處於獨特的地位，只是為設備的嵌入式基礎提供了我們的技術。

And then a couple of follow-ups. In past quarters, Bill, you talked about, I think it was in your prepared remarks quite often, international carrier launches. Literally, the on-device segment is weak in the U.S., not a shock to anybody. Is there anything or new carriers that you're planning on launching that will help offset that? I mean I think in the past, you used to highlight the percent of the international markets covered, and then you guys haven't really done that lately. I'm just -- if you could update us, that would be helpful.

然後是一些後續行動。比爾，在過去的幾個季度裡，您經常在準備好的講話中談到國際航空公司的推出。從字面上看，美國的設備端市場很薄弱，這對任何人來說都不足為奇。您計劃推出什麼或新的運營商來幫助抵消這一影響嗎？我的意思是，我認為在過去，你們常常強調所覆蓋的國際市場的百分比，但你們最近並沒有真正這樣做。我只是——如果你能為我們提供最新消息，那將會很有幫助。

Yes, absolutely. I did make a comment in the prepared remarks around a strong global pipeline of expanding our telcos and OEM relationships. And so I kind of dried it out. We're not going to name names here on the call for obvious reasons. But I think we have a lot of optimism right now in terms of the ability to continue to expand our addressable market here.

是的，一點沒錯。我確實在準備好的評論中圍繞擴大我們的電信公司和 OEM 關係的強大全球渠道發表了評論。所以我把它弄乾了。出於顯而易見的原因，我們不會在電話會議上點名。但我認為我們現在對繼續擴大我們的潛在市場的能力非常樂觀。

And if I can slide in one for Barrett. Normally, your December quarter is up pretty strongly seasonally. Any thoughts on if you expect it to be more muted again this year like it was last?

如果我能為巴雷特插一張。通常情況下，12 月所在季度的季節性增長相當強勁。您是否認為今年會像去年一樣更加安靜？

That's December?

那是十二月嗎？

Yes.

是的。

Tony, yes. So December was an odd quarter last year, right? We kind of -- the markets change quite quickly. I think as we're seeing things now, I would like to expect that we see closer to a more normalized seasonal trend. I don't -- not sure we're back to '21 levels. But yes, we would expect to see some seasonal uplift for the holiday quarter.

托尼，是的。那麼去年 12 月是一個奇怪的季度，對嗎？我們認為——市場變化得很快。我認為，正如我們現在所看到的那樣，我希望我們能看到更加接近正常化的季節性趨勢。我不確定——不確定我們是否回到了 21 世紀的水平。但是，是的，我們預計假期季度會出現一些季節性增長。

And one last quickie for Bill. Love to hear more on Aptoide, how vital you think it is. I'm just curious kind of where you're at with Aptoide.

比爾的最後一件事。很高興聽到有關 Aptoide 的更多信息，您認為它有多重要。我只是好奇你對 Aptoide 的態度如何。

Yes. We continue -- our Aptoide technology partnership has been great. They're tech integrated into our hub product today. They've been great to work with. We're looking forward to expanding with them and looking forward to expanding with others. There's a lot of players out there in the space. Aptoide's been fantastic.

是的。我們繼續——我們的 Aptoide 技術合作夥伴關係非常好。他們今天已將技術集成到我們的中心產品中。與他們合作非常愉快。我們期待與他們一起擴張，也期待與其他人一起擴張。這個領域有很多玩家。 Aptoide 太棒了。

But I think we want to think about it even broader than that. We think there's an enormous opportunity. You heard the word investment a lot in Barrett, in my prepared remarks. So we really want to think about how we can get after the space and really have some first-mover advantages.

但我認為我們應該考慮更廣泛的問題。我們認為這是一個巨大的機會。在我準備好的演講中，你在巴雷特那裡經常聽到投資這個詞。所以我們真的想考慮如何才能獲得這個空間並真正擁有一些先發優勢。

At this time, there are no questioners in the queue, and this does conclude our question-and-answer session. I would now like to turn the conference back over to Bill Stone for any closing remarks.

此時，隊列中已經沒有提問者了，我們的問答環節就此結束。現在我想將會議轉回比爾·斯通發表閉幕詞。

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

是的。感謝大家今天加入通話。我們期待根據我們在電話會議中提出的所有觀點報告我們的進展。我們將在幾個月後的 24 財年第二季度電話會議上再次與您交談。謝謝，祝您度過一個美好的夜晚。

The conference has now concluded. Thank you for attending.

會議現已結束。感謝您的出席。