Digital Turbine Inc (APPS) 2024 Q2 法說會逐字稿

Good afternoon, and welcome to the Digital Turbine Reports Fiscal 2024 Second Quarter Results Conference Call. (Operator Instructions) Please note that this event is being recorded.

下午好，歡迎參加數位渦輪機報告 2024 財年第二季業績電話會議。 （操作員說明）請注意，該事件正在被記錄。

I would now like to turn the conference over to Brian Bartholomew, Senior Vice President of Capital Markets. Please go ahead.

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。

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

謝謝。下午好，歡迎參加數位渦輪機 2024 財年第二季財報電話會議。今天與我一起參加電話會議討論我們的業績的是首席執行官比爾·斯通 (Bill Stone)；財務長巴雷特·加里森。

Before we get started, I would 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. 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 filed with the Securities and Exchange Commission.

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。這些前瞻性陳述是基於我們目前的假設、期望和信念，包括預期的營運指標、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，而且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聲明的義務。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。

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.

此外，在本次電話會議中，我們也將討論某些非公認會計原則的績效衡量指標。非 GAAP 衡量標準不能取代 GAAP 衡量標準。請參閱今天的新聞稿，以了解有關使用非 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 衡量標準的調整的重要資訊。

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執行長比爾·斯通先生。

Thanks, Brian, and thank you all for joining our call tonight.

謝謝布萊恩，也謝謝大家今晚加入我們的電話會議。

For the September quarter, we finished in line with our guidance range, and I was pleased with the cash flow generation in the quarter with sequentially higher EBITDA and free cash flow. And we still have much work to do to reach both our internal expectations and the potential of our broader total addressable market or TAM.

對於九月季度，我們的業績符合我們的指導範圍，我對該季度的現金流產生感到滿意，EBITDA 和自由現金流連續上升。為了實現我們的內部期望和更廣泛的總目標市場（TAM）的潛力，我們仍然有很多工作要做。

I continue to be encouraged with our effort and execution on controllables and believe they'll pay dividends into the future as we work through some of the uncontrollables with soft U.S. device sales and also be able to expand the reach of popular Chinese applications on our U.S. supply.

我繼續對我們在可控因素上的努力和執行感到鼓舞，並相信隨著我們透過美國設備銷售疲軟解決一些不可控因素，它們將在未來帶來紅利，並且能夠擴大流行的中國應用程式在美國的覆蓋範圍。供應。

I was also pleased with the tangible progress on a variety of capital investments against the future with new technology platforming, new ad tech capabilities, our Hub initiative, alternative app distribution and SingleTap. We believe these investments will prove to be well served against our future growth and also have the added benefit of being able to reallocate many of those resources against shorter-term revenue initiatives over the next few quarters to drive growth. I'll provide updates on those future growth drivers after providing some operational updates and commentary on the business.

我還對新技術平台、新廣告技術功能、我們的 Hub 計劃、替代應用程式分發和 SingleTap 等面向未來的各種資本投資的實際進展感到高興。我們相信，這些投資將證明對我們未來的成長有很好的作用，並且還有額外的好處，即能夠根據未來幾季的短期收入計劃重新分配許多資源，以推動成長。在提供一些營運更新和業務評論後，我將提供有關這些未來成長動力的更新。

For the September quarter, we had $143 million of revenue, $28 million of EBITDA, $0.13 of non-GAAP earnings per share and our gross profit margins were 47%. Our EBITDA improved sequentially, driven by reduced controllable costs. Barrett will talk about the details in his remarks, but it was positive to also see us reduce our debt in the quarter by $22 million, driven by improved sequential free cash flow.

9 月季度，我們的營收為 1.43 億美元，EBITDA 為 2,800 萬美元，非 GAAP 每股收益為 0.13 美元，毛利率為 47%。在可控成本降低的推動下，我們的 EBITDA 連續改善。巴雷特將在他的演講中討論細節，但在連續自由現金流改善的推動下，我們在本季度減少了 2200 萬美元的債務，這是積極的。

From a segment perspective, despite continued soft device sales here in the United States, our On Device business grew revenue sequentially to just over $99 million. Operationally, I was pleased with our improvement of revenue per device, or RPD, in the U.S., which continues to be over $6 for all of our partners. And for 2 of our U.S. postpaid carriers, we almost hit $10 for the first time.

從細分市場的角度來看，儘管美國的軟設備銷售持續成長，但我們的 On Device 業務收入較上季成長至略高於 9,900 萬美元。在營運方面，我對美國每台設備收入 (RPD) 的改善感到滿意，我們所有合作夥伴的收入仍然超過 6 美元。對於我們的 2 家美國後付費業者來說，我們的價格首次接近 10 美元。

Over the past 5 years, our RPDs have accreted from just over $2 in fiscal year '20, to $3 in fiscal year '21, to $4 in fiscal year '22, to $5 in fiscal '23 and today, it's over $6. We continue to see strong demand for our platform, both from advertisers and new products contributing more revenue to each device.

在過去的5 年裡，我們的RPD 從20 財年的略高於2 美元，增加到21 財年的3 美元，再到22 財年的4 美元，再到23 財年的5 美元，而今天，已經超過6 美元。我們繼續看到對我們平台的強勁需求，無論是廣告商還是新產品都為每台設備帶來了更多收入。

Expanding global demand to our U.S. device supply has also been a big driver of those improved RPD results as U.S. demand is less than 20% of revenues on our U.S. supply despite some continued headwinds on being able to run all the Chinese media dollars that we have budgets for.

全球對我們美國設備供應的需求不斷擴大也是 RPD 業績改善的一個重要推動因素，因為儘管我們在運營所有中國媒體資金方面面臨一些持續的阻力，但美國的需求還不到我們美國供應收入的 20%的預算。

While we expect the current quarter to experience continued device softness here in the U.S., going into 2024, we will be expanding our global telco and OEM relationships to help offset weakness in device sales from our existing partners. As an example of this point, many of you have seen our announcement with Xiaomi that is focused on growing in Europe, Middle East, Africa and Asia Pacific. And we're also adding new operator partners in Latin America in this current quarter, and our global pipeline remains robust.

雖然我們預計本季美國的設備銷售將持續疲軟，但進入 2024 年，我們將擴大我們的全球電信和 OEM 關係，以幫助抵消現有合作夥伴設備銷售的疲軟。作為這一點的一個例子，你們很多人都已經看到了我們與小米的聲明，該聲明的重點是在歐洲、中東、非洲和亞太地區的成長。本季我們還在拉丁美洲增加了新的營運商合作夥伴，我們的全球管道仍然強勁。

And regarding our content media business, as we've discussed on prior calls, we expected it to trough in the June quarter, and that is what happened as we showed sequential growth quarter-over-quarter in September.

至於我們的內容媒體業務，正如我們在之前的電話會議中討論的那樣，我們預計該業務將在六月季度觸底，而這正是我們在 9 月份實現環比增長時所發生的情況。

On our App Growth Platform segment, or AGP business, we finished with $46 million in revenues. We're seeing sequential improvements in eCPM rates on both our brand demand and DSP from advertisers. And in particular, it was encouraging to see our brand business continue to grow nearly 10% sequentially as we saw eCPMs improve by nearly 25% in the quarter.

在我們的應用程式成長平台部分（即 AGP 業務）中，我們的營收達到了 4,600 萬美元。我們看到我們的品牌需求和廣告商的 DSP 的有效每千次曝光費用率都在連續提高。尤其令人鼓舞的是，我們的品牌業務持續較上季成長近 10%，本季 eCPM 提高了近 25%。

The macro market has stabilized, and our execution is improving, but there's still some uncertainty baked into our outlook given some of the global macro and geopolitical issues others have mentioned in their commentary. Our Exchange and Offer Wall business was roughly flat in the quarter, and the Exchange business continues to be well diversified globally with approximately 37% of our publishers in North and South America; 51% in Europe, Middle East, Africa; and 12% in Asia Pacific.

宏觀市場已經穩定，我們的執行力正在改善，但鑑於其他人在評論中提到的一些全球宏觀和地緣政治問題，我們的前景仍然存在一些不確定性。我們的 Exchange 和 Offer Wall 業務在本季度大致持平，並且 Exchange 業務繼續在全球範圍內實現多元化，大約 37% 的發行商位於北美和南美； 51%在歐洲、中東、非洲；亞太地區為 12%。

We have nearly completed our consolidation of multiple exchanges into a single DT Exchange. The main benefit of this consolidation is the efficiencies and new products such as SDK Bidding that will help us capture more ad dollars from companies such as The Trade Desk, Google and Amazon into the future. And as part of that migration, which will be complete in the current quarter, we've also chosen not to migrate some of the many thousands of long-tail publishers on the legacy exchanges over to the DT Exchange, which will create headwinds on past comps even as we grow our DT Exchange into the future.

我們即將完成將多個交易所合併為一個 DT 交易所的工作。整合的主要好處是提高了效率，並推出了 SDK Bidding 等新產品，未來將幫助我們從 The Trade Desk、Google 和 Amazon 等公司獲得更多廣告收入。作為將在本季度完成的遷移的一部分，我們還選擇不將舊交易所上的數千個長尾發布商遷移到 DT Exchange，這將對過去的交易帶來不利影響。即使我們將DT Exchange 發展到未來，也會進行比較。

We've also beta-launched our evolution of our demand side platform, or DSP, that we brand as DT Direct. This allows us to have more intelligent buying and selling of ad dollars across the DT network, which means better margins and better return on ad spend for our customers as we can better leverage SingleTap, our first-party data, data science, machine learning and AI at better scale and performance than our legacy DSP. These enhancements mean that DT Direct will be a growth driver for us in 2024.

我們也測試版推出了需求方平台（DSP）的演進，我們將其命名為 DT Direct。這使我們能夠在DT 網路上更聰明地買賣廣告資金，這意味著我們的客戶可以獲得更好的利潤和更好的廣告支出回報，因為我們可以更好地利用SingleTap、我們的第一方數據、數據科學、機器學習和與我們的傳統 DSP 相比，AI 具有更好的規模和性能。這些增強意味著 DT Direct 將成為我們 2024 年的成長動力。

In addition to leveraging SingleTap on the DSP, we continue to utilize it in many other ways across our device solutions as an enablement technology. The first is direct demand via the DSP where we leverage our own AI and machine learning to target advertising to SingleTap devices. The second is enabling other third-party demand partners from companies who can buy advertising on our SingleTap-enabled supply.

除了在 DSP 上利用 SingleTap 之外，我們還繼續在我們的設備解決方案中以多種其他方式使用它作為支援技術。第一個是透過 DSP 的直接需求，我們利用自己的人工智慧和機器學習將廣告定位到 SingleTap 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。

The third is licensing mobile web traffic from brands such as Epic Games' Fortnite title, which then uses SingleTap to convert its web visitors to native applications. The fourth is distributing alternative versions of the applications such as what we do with our Hub and Amazon version and so on for direct distribution of the device. And finally, it's enabling large distributors of applications such as large social media players to leverage the conversion rate benefits of SingleTap across our network.

第三種是從 Epic Games 的 Fortnite 遊戲等品牌獲得行動網路流量許可，然後使用 SingleTap 將其網路訪客轉換為本機應用程式。第四種是分發應用程式的替代版本，例如我們使用 Hub 和 Amazon 版本等來直接分發裝置。最後，它使大型應用程式分銷商（例如大型社交媒體播放器）能夠在我們的網路中利用 SingleTap 的轉換率優勢。

We continue to make progress on all fronts, including with multiple social media companies. In particular, I'm encouraged by the number of publishers wanting to use SingleTap to distribute alternative builds of their applications, which fits nicely with our strategy of alternative app distribution and Hub that I'll talk later in my remarks. And as the market expands with alternative builds, SingleTap will be a primary differentiator from others for distributing those new versions of applications.

我們繼續在各方面取得進展，包括與多家社群媒體公司的合作。特別是，令我感到鼓舞的是，有很多發行商希望使用SingleTap 來分發其應用程式的替代版本，這非常適合我們的替代應用程式分發和Hub 策略，我將在稍後的發言中討論這一點。隨著市場隨著替代版本的擴展而擴展，SingleTap 將成為分發這些新版本應用程式的主要區別因素。

Turning to future, I want to spend a few moments highlighting our longer-term growth drivers. We believe we're uniquely positioned with our On Device technology, including our first-party data, our AI, machine learning tools, SingleTap and our extensive publisher relation and operator and OEM relationships.

談到未來，我想花一些時間強調我們的長期成長動力。我們相信，我們的設備端技術具有獨特的優勢，包括我們的第一方資料、人工智慧、機器學習工具、SingleTap 以及我們廣泛的發行商關係以及營運商和 OEM 關係。

We have launched our first alternative app distribution products, which we brand as DT Hub, with 5 operators here in the U.S., leveraging our Aptoide investment that are generating revenue today. We have increased our equity investment in Aptoide to almost 20%. The carrier feedback has been encouraging, and we expect to be across many tens of millions of devices by the end of this calendar year.

我們已經推出了第一個替代應用程式分發產品，品牌為 DT Hub，在美國有 5 家營運商，利用我們目前正在產生收入的 Aptoide 投資。我們已將 Aptoide 的股權投資增加至近 20%。營運商的回饋令人鼓舞，我們預計到今年底將涵蓋數千萬台設備。

It's still early days and still not yet material to our overall results, but we are seeing incremental and higher revenue per device from devices engaging with our Hub product, which is a combination of in-app purchase revenues and incremental cost per install or CPI revenues, helping publishers acquire new users.

現在還處於早期階段，對我們的整體業績還沒有實質影響，但我們看到與我們的Hub 產品配合的設備帶來的每台設備收入的增量和更高，這是應用內購買收入和每次安裝增量成本或CPI 收入的組合，幫助發布商取得新用戶。

So the focus for us is driving more devices, more engagement and more downloads. We've not yet started leveraging our in-app advertising assets into this alternative app distribution, but do expect that to add an additional revenue stream to this opportunity and all 3 of these monetization capabilities being drivers of incremental RPD into the future. Monetizing via cost per install and in-app advertising are all very natural extensions of our existing business models.

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程式內廣告資產利用到這種替代應用程式發行版中，但確實希望為此機會增加額外的收入來源，並且所有這3 種貨幣化功能都將成為未來增量RPD 的驅動力。透過每次安裝成本和應用程式內廣告獲利都是我們現有業務模式的自然延伸。

We also believe the global regulatory environment will provide additional thrust to this vision, especially in the EU as the Digital Markets Act becomes effective next March. Many of you have seen articles in the press talking about a concept of direct distribution of applications that involve megacap tech players. This is highly strategic, and I want to spend a few moments describing it.

我們也相信，全球監管環境將為此願景提供額外的推動力，尤其是在歐盟，因為《數位市場法案》將於明年三月生效。你們中的許多人都在媒體上看到有關直接分發涉及大型科技公司的應用程式概念的文章。這是高度戰略性的，我想花一些時間來描述它。

Direct distribution is where any app publisher, such as Spotify, Netflix, Epic Games and so on, is running advertising for a user to install its application. But rather than take the user to the Apple or Google Store after clicking on the ad, it would direct download the application to the device with its own unique version of an application outside of the traditional app stores.

直接分發是指任何應用程式發行商（例如 Spotify、Netflix、Epic Games 等）為用戶安裝其應用程式投放廣告。但它不會在點擊廣告後將用戶帶到蘋果或谷歌商店，而是直接將應用程式下載到設備上，並在傳統應用程式商店之外使用自己獨特的應用程式版本。

And to achieve this, there are some market pain points that need to be solved, such as making it easy for app publishers to port their apps 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, and also managing the creation of the applications. 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.

為了實現這一目標，有一些市場痛點需要解決，例如讓應用程式發行商能夠輕鬆地將其應用程式移植到新版本、管理應用程式內部的支付和廣告、無摩擦地安裝應用程式可能不涉及商店，並且還管理應用程式的創建。這些都是 Digital Turbine 的獨特優勢，無論是直接透過我們自己的 Hub 產品，還是透過白標間接將我們的能力提供給想要利用其大量受眾的大型企業。

And to that end, in addition to Aptoide, we're expanding our partnership with Flexion who is the market leader in porting applications into alternative version. Flexion works not just with us, but with all the other major alternative app stores such as the Samsung Galaxy Store, Amazon App Store, Xiaomi GetApps, Huawei's AppGallery, Aptoide, ONE store in Korea and many others. And in addition to paying down our debt, we're allocating our capital to pursue these new investments with a new dedicated team focused on unlocking this future growth opportunity.

為此，除了 Aptoide 之外，我們還擴大了與 Flexion 的合作關係，Flexion 是將應用程式移植到替代版本的市場領導者。 Flexion 不僅與我們合作，還與所有其他主要替代應用程式商店合作，例如三星 Galaxy Store、亞馬遜應用程式商店、小米 GetApps、華為的 AppGallery、Aptoide、韓國的 ONE 商店等。除了償還債務之外，我們還分配資金來進行這些新投資，並組建了一個新的專門團隊，專注於釋放未來的成長機會。

To recap, we have an enormous addressable market, large customers that want our solutions and operating leverage with our business models. Our focus is bringing these elements together with all the initiatives underway mentioned earlier in my remarks, from alternative app stores, ad tech enhancements, platform modernizations, strategic media relationships and leveraging our global device footprint. This is our formula for future growth and scale.

回顧一下，我們擁有龐大的潛在市場，需要我們的解決方案和業務模式的營運槓桿的大客戶。我們的重點是將這些元素與我前面提到的所有正在進行的舉措結合起來，包括替代應用商店、廣告技術增強、平台現代化、戰略媒體關係以及利用我們的全球設備足跡。這是我們未來成長和規模的公式。

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

至此，我準備好的演講就結束了，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, results in the quarter were in line with our expectations for top line and profitability, delivering sequential improvements in EBITDA and cash flow measures.

謝謝比爾，大家下午好。整體而言，本季的業績符合我們對營收和獲利能力的預期，EBITDA 和現金流量指標則連續改善。

Revenue of $143.3 million in the quarter was lower by 2% sequentially and down 18% year-on-year. Within ODS, revenues were slightly up sequentially from the June quarter and down 9% to the prior year September quarter. And as Bill referenced, while we saw softer device volumes in Q2, this impact was offset by improved U.S. revenue per device, which exceeded $6 per device and increased materially year-on-year.

該季度營收為 1.433 億美元，季減 2%，年減 18%。在 ODS 中，營收比 6 月季度略有成長，但比去年 9 月季度下降 9%。正如 Bill 所提到的，雖然我們在第二季度看到設備銷售下降，但這種影響被美國每台設備收入的成長所抵消，每台設備的收入超過 6 美元，並且比去年同期大幅增長。

Our content business delivered sequential growth in the quarter. And while this part of our business has experienced headwinds from prepaid content media from a year-on-year comparison, we expect this grow-over comp to run off within the December quarter.

我們的內容業務在本季實現了環比成長。儘管與去年同期相比，我們的這部分業務經歷了預付費內容媒體的不利影響，但我們預計這一增長將在 12 月的季度內結束。

On our AGP business, Q2 revenues 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 business lines that we have discussed previously, and we would expect these revenue lines to be fully consolidated by the end of the fiscal 2024.

在我們的 AGP 業務上，第二季營收比去年同期下降了 32%。儘管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業務線的整合和退出的短期影響所驅動的，我們預計這些收入線將在2024 財年末得到全面整合。

I'd reiterate Bill's earlier comments that despite the near-term headwinds, we're encouraged by the platform consolidations we're making to bring the businesses together and expect these actions to have a positive return on our future growth.

我重申比爾先前的評論，儘管近期存在阻力，但我們為將業務整合在一起而進行的平台整合感到鼓舞，並預計這些行動將為我們未來的成長帶來積極的回報。

Our consolidated gross margin was 47% in Q2, which was constant sequentially and was down from 52% in Q2 from the prior year, driven largely by product mix shifts year-on-year where we experienced an increase in the mix of certain lower-margin products. 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 strategy.

我們第二季的綜合毛利率為47%，與上一季持平，低於上年第二季的52%，這主要是由於產品組合同比變化，我們經歷了某些較低價格產品組合的增加。保證金產品。提醒一下，雖然毛利率可能會因季度而波動，但隨著我們繼續執行成長策略，我們通常會預期長期利潤率會擴大。

We remain disciplined with expenses. And cash operating expenses were $39.4 million in Q2, a reduction of 7% from prior year and represented 27% of revenues in the quarter. I highlight that we incurred lower-than-normal performance compensation expenses in the quarter, which we would not anticipate recurring in the second half of the fiscal year.

我們仍然嚴格控制開支。第二季現金營運支出為 3,940 萬美元，比去年同期減少 7%，佔該季度收入的 27%。我強調，我們在本季發生的績效補償費用低於正常水平，我們預計這種情況不會在本財年下半年再次出現。

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 back-office systems across our assets, developing new ad tech capabilities and also on strategic growth initiatives Bill discussed, namely DT Hub, alternative app distribution and SingleTap.

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，以確保我們充分發揮成長策略的潛力。這些內部計劃的重點是整合我們資產中的技術平台和後台系統、開發新的廣告技術能力以及 Bill 討論的戰略增長計劃，即 DT Hub、替代應用程式分發和 SingleTap。

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

雖然由於這些平台整合和新的成長計劃的完成，當前和近期的轉型成本將會增加，但我們預計，隨著進入 2024 年，效率和成長將開始反映在我們的業績中。正如我之前所討論的，在這個投資階段，我們將繼續高度關注營運效率。

Turning to profitability. Our adjusted EBITDA of $27.7 million in the quarter increased $0.7 million sequentially and was down from $48.2 million in the prior year. Our EBITDA margin of 19% grew sequentially from 18% in the June quarter. And given the inherent operating leverage in our business model, we expect that 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 follow the bottom line.

轉向盈利能力。本季調整後 EBITDA 為 2,770 萬美元，比上年同期的 4,820 萬美元增加了 70 萬美元。我們的 EBITDA 利潤率為 19%，較六月季度的 18% 有所成長。考慮到我們業務模式中固有的營運槓桿，我們預計，隨著我們恢復成長，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能夠實現盈利。

In the quarter, we achieved non-GAAP adjusted net income of $13.9 million or $0.13 per share as compared to a $35 million or $0.34 per share in the second quarter of last year. As compared to prior year, we recorded a $2 million noncash FX loss in the quarter and also incurred greater interest expense driven by rising rates on our outstanding debt.

本季度，我們實現非 GAAP 調整後淨利潤 1,390 萬美元，即每股 0.13 美元，去年第二季度為 3,500 萬美元，即每股 0.34 美元。與去年同期相比，本季我們錄得 200 萬美元的非現金外匯損失，而且由於未償債務利率上升，利息支出也增加了。

Our GAAP net loss of $1.61 per share in the second quarter reflects a noncash goodwill impairment charge of $1.46 per share or $147.2 million in our AGP business unit. This charge was driven by the recent market-based factors such as sustained decline in our market cap and increases in interest rates as well as updates to our forecasted AGP cash flows consistent with our guidance disclosed today.

第二季我們的 GAAP 淨虧損為每股 1.61 美元，反映出我們的 AGP 業務部門每股非現金商譽減損費用為 1.46 美元，即 1.472 億美元。這項費用是由近期基於市場的因素驅動的，例如我們的市值持續下降和利率上升，以及我們預測的 AGP 現金流量的更新與我們今天披露的指導一致。

There was no change to the goodwill for the ODS reporting unit, and we remain excited about the AGP segment given the ad tech enhancements we've made and that are underway to enable future growth. $23.9 million in free cash flows generated for the quarter enabled us to exit Q2 with $58.1 million in cash after paying down an additional $22 million in debt using free cash flows from operations to further deleverage our debt position.

ODS 報告部門的商譽沒有變化，考慮到我們已經進行的廣告技術增強以及正在進行的廣告技術增強，我們仍然對 AGP 部門感到興奮，以實現未來的成長。本季產生的2,390 萬美元自由現金流使我們能夠在第二季結束時以5,810 萬美元現金退出，此前我們利用營運自由現金流償還了額外的2,200 萬美元債務，以進一步去槓桿化我們的債務狀況。

Our debt balance ended the quarter at $386 million drawn on our revolving credit facility. And our business -- and as our business continues to strengthen, we would expect to continue to pay down our revolver. 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.

本季末，我們的循環信貸額度債務餘額為 3.86 億美元。我們的業務—隨著我們業務的不斷加強，我們預計將繼續償還我們的左輪手槍。鑑於我們的獲利模式、現金流量產生和低成本信貸便利，我們對資產負債表和資本狀況持續充滿信心。

Now let me turn to our outlook. We currently expect revenue for fiscal Q3 to be between $144 million and $150 million; and adjusted EBITDA to be between $27 million and $31 million; and non-GAAP adjusted net income per diluted share to be between $0.16 and $0.19 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。我們目前預計第三財季的營收將在 1.44 億美元至 1.5 億美元之間；並將 EBITDA 調整為 2,700 萬至 3,100 萬美元；根據約 1.04 億股稀釋後流通股和 25% 的有效稅率，非 GAAP 調整後每股稀釋後淨利為 0.16 美元至 0.19 美元。

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) Our first question comes from Darren Aftahi with ROTH MKM.

（操作員說明）我們的第一個問題來自 ROTH MKM 的 Darren Aftahi。

Just 3, if I may. If my memory serves me correct, last December quarter, you guys guided -- and I think some of your channel partners maybe had some handset expectations that kind of fell off the cliff second half of the quarter. I'm just wondering if there's any conservatism baked into this December quarter similar to that?

如果可以的話，只有 3 個。如果我沒記錯的話，上個 12 月季度，你們指導了 - 我認為你們的一些渠道合作夥伴可能有一些手機預期，但在本季度下半年卻跌落懸崖。我只是想知道這個 12 月季度是否存在類似的保守主義？

Second question, Bill, the comments you made about some of the legacy long-tail publishers on the DT Exchange not migrating. Is there a way you can kind of quantify to be how big and how long that impact may take?

第二個問題，Bill，您對 DT Exchange 上的一些傳統長尾發布商未遷移的評論。有沒有一種方法可以量化這種影響有多大以及需要多長時間？

And then maybe one for Barrett. Your free cash flow was pretty nice in the quarter. Congrats on that. I look back on the last quarter, and there's kind of some variability sequentially. I'm just trying to understand what maybe is a steady state of free cash flow generation vis-à-vis EBITDA pass-through?

然後也許是巴雷特的一個。本季您的自由現金流相當不錯。對此表示祝賀。我回顧上個季度，發現連續出現了一些變化。我只是想了解自由現金流產生相對於 EBITDA 轉嫁的穩定狀態是什麼？

Yes. Thanks, Darren. I'll take the device sales and the DT Exchange. And as you said, Barrett can take the free cash flow one. Yes, I think on the device sales, one of the things we saw here in the U.S. is a lot of carriers back during COVID had moved from 2- to 3-year leases on the devices, both across Android and iOS. That's burning off next year. And so I think that will be a good thing in terms of changing some of the trajectory around U.S. device demand.

是的。謝謝，達倫。我將負責設備銷售和 DT Exchange。正如你所說，巴雷特可以選擇自由現金流。是的，我認為在設備銷售方面，我們在美國看到的一件事是，在新冠疫情期間，許多運營商已經將設備的租期從 2 年改為 3 年，無論是 Android 還是 iOS。明年就燃盡了。因此，我認為這對於改變美國設備需求的一些軌跡而言將是一件好事。

But in terms of the focus on the holidays right now, we want to make sure that we're pretty conservative in what we're expecting on devices. And just in the September quarter, we saw amongst our large carrier partners down millions of devices between the large carriers from September quarter last year, September quarter this year. So I don't know if we would expect anything to dramatically change in the current quarter around that. And then you could do the math, multiplying it by north of $6 in terms of what that impact is to us. So that's something we look forward to getting back on track with the operators next year.

但就目前對假期的關注而言，我們希望確保我們對設備的期望相當保守。就在九月季度，我們看到我們的大型營運商合作夥伴從去年九月季度到今年九月季度，在大型營運商之間減少了數百萬台設備。因此，我不知道我們是否會期望本季發生任何重大變化。然後你可以計算一下，將其乘以 6 美元以上，就得出了這種影響對我們的影響。因此，我們期待明年與營運商重回正軌。

And then on the DT Exchange side, yes, we're consolidating and really focused on where the puck is going versus where it's been. So I mentioned a lot of things in my remarks around new features on the exchange like SDK Bidding and what we see from large brands that are buying advertising through The Trade Desk or Google's TV 360, Amazon, whatever, they want to buy through SDK Bidding. So getting our exchange going to where things are going in the future to capture those dollars is going to be really key and critical. So that's where we're focused.

然後在 DT Exchange 方面，是的，我們正在整合並真正關注冰球的去向和過去的位置。因此，我在演講中提到了很多關於交易所新功能的內容，例如SDK 競價，以及我們從透過The Trade Desk 或Google 的TV 360、亞馬遜等購買廣告的大品牌看到的情況，他們希望透過SDK競價購買廣告。因此，讓我們的交易所走向未來以獲取這些美元將是非常關鍵和關鍵的。這就是我們關注的重點。

But as part of that, there's probably many thousands of long-tail publishers from the legacy companies that are doing very small dollars where it's just not worth the effort to migrate them over. But in aggregate, we still have to comp over those, and that's millions of dollars of revenue a quarter. It's not tens of millions. And it's something that will burn off, and our expectation is we'll go through to where the growth is going with a lot of these brands and larger omnichannel DSPs.

但作為其中的一部分，可能有成千上萬來自傳統公司的長尾出版商的收入非常小，根本不值得花費精力將它們遷移過來。但總的來說，我們仍然需要對這些進行比較，即每季數百萬美元的收入。這不是幾千萬。這是一種會消失的東西，我們的期望是，我們將經歷許多這樣的品牌和更大的全通路 DSP 的成長。

And I'll turn it over to Barrett on the cash flow.

我會將現金流轉交給巴雷特。

Yes. Darren, I think your question on the cash flow was kind of timing, seasonality and kind of the flow-through. So we had a little over $27 million in cash from operations in this quarter. As we touched on last quarter, you're right, we mentioned some timing elements on working capital that would push into this quarter, which we saw.

是的。達倫，我認為你關於現金流的問題是時間、季節性和流量的問題。因此，本季我們的營運現金略多於 2,700 萬美元。正如我們談到上個季度時，你是對的，我們提到了一些關於營運資金的時間因素，這些因素將推入本季度，我們看到了這一點。

I think that on a quarterly basis, over the year, we'd expect the flow-through of EBITDA to our cash from operations to be around 50%. And give or take a quarter or so, those will -- there are some timing elements, especially when we see rises in revenue. But otherwise, we see about 50% of our EBITDA turning into free cash for us.

我認為，按季度計算，全年我們預計 EBITDA 流入營運現金的比例約為 50%。大約一個季度左右，就會有一些時間因素，特別是當我們看到收入成長時。但除此之外，我們看到大約 50% 的 EBITDA 變成了我們的自由現金。

Our next question comes from Omar Dessouky with Bank of America.

我們的下一個問題來自美國銀行的 Omar Dessouky。

(inaudible) on for Omar. So I know you guys were working on -- or working with some of the supply partners in the U.S. to fill demand from some of the Chinese e-commerce players like [Tmall], like you guys have touched on that a little bit in the prepared remarks. I'm just wondering if there has been any progress there. And just in terms of time line, like when should we expect sort of the hurdles to clear out?

（聽不清楚）奧馬爾。所以我知道你們正在努力，或與美國的一些供應合作夥伴合作，以滿足一些中國電子商務企業（如天貓）的需求，就像你們在《天貓》中提到的那樣。準備好的發言。我只是想知道那裡是否有任何進展。就時間軸而言，例如我們應該期望什麼時候清除障礙？

Yes. So our expectation is that we're going to see some positive progress in the current quarter. We did not bake that into our outlook just because it's not here yet. If it happens, then that's great. But our expectation is we're going to see a little positive movement in the current quarter. But I think as we go into next year, we're going to see some improvements there. We continue to see a lot of popular Chinese apps that want to run on U.S. supply. And given some of the historical geopolitical things we've seen throughout the balance of this year, that's really limited the dollars that we've been able to run on that.

是的。因此，我們的期望是，我們將在本季度看到一些積極的進展。我們並沒有因為它還沒有出現就將其納入我們的展望中。如果它發生了，那就太好了。但我們的預期是，本季我們將看到一些正面的變化。但我認為，進入明年，我們將看到一些改進。我們繼續看到許多流行的中國應用程式希望在美國供應上運行。考慮到我們在今年餘下時間裡看到的一些歷史性地緣政治事件，這確實限制了我們能夠以此為基礎的美元。

It does vary by partner. So partner X has maybe a little more conservative view than partner Y on these things and then even within the apps themselves. So there's really 2 impacts there. One is the actual dollars from the Chinese -- the popular Chinese applications. But the other thing is the rising tide lifts all boats, meaning that the rates that others now have to pay when there's higher rates coming in from them. So there's kind of a double whammy there. So we're obviously working hard to derisk that with our operator partners because our expectation is that's something that could be a material driver for us on our ODS business.

它確實因合作夥伴而異。因此，在這些事情上，甚至在應用程式本身內部，合作夥伴 X 的觀點可能比合作夥伴 Y 更保守一些。所以那裡確實有兩個影響。一是來自中國人的實際收入——流行的中國應用程式。但另一件事是水漲船高，這意味著當其他人的利率更高時，其他人現在必須支付更高的利率。所以這有點雙重打擊。因此，我們顯然正在努力與我們的營運商合作夥伴一起消除這種風險，因為我們的期望是這可能成為我們消耗臭氧層物質業務的物質驅動力。

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

下一個問題來自安東尼·斯托斯和克雷格·哈勒姆。

Bill, over the last couple of quarters, you've talked about a large social media company expected to go live with SingleTap by the end of this year. Can you update us where they stand? And then I have a couple of follow-ups.

Bill，在過去的幾個季度中，您談到了一家大型社交媒體公司預計將在今年年底推出 SingleTap。您能告訴我們他們的最新情況嗎？然後我有一些後續行動。

Yes, sure, Tony. Unfortunately, the large social media company doesn't want me making any statements on their behalf. So unfortunately, I can't make any statements here today around that. I'd like to. So I kind of say, stay tuned. Nothing has changed from our prior comments or remarks. We continue to have good relationships there. But unfortunately, nothing I can say specifically on that topic today.

是的，當然，托尼。不幸的是，這家大型社群媒體公司不希望我代表他們發表任何聲明。不幸的是，我今天無法就此發表任何聲明。我想。所以我想說，請繼續關注。我們之前的評論或評論沒有任何變化。我們在那裡繼續保持著良好的關係。但不幸的是，今天我無法就這個主題具體說些什麼。

Got it. And then just -- I'm going to pick one of your SingleTap customers. Amazon, I think they've been live for maybe just short of a year. Talk to us about what the experience has been. Do you expect them to renew? Would you expect pricing? Because it seems like you're not generating a lot of revenue yet from SingleTap, more or less giving it away or attractive prices to get them hooked. I'd love to hear kind of the experience of your customers who have been using it for, say, a year or less.

知道了。然後 - 我將選擇您的一位 SingleTap 客戶。亞馬遜，我認為他們上線可能不到一年。和我們談談經歷是什麼。你希望他們續約嗎？您預計定價嗎？因為看起來您還沒有從 SingleTap 中獲得大量收入，或多或少會贈送它或有吸引力的價格來吸引他們。我很想聽聽您的客戶使用它一年或更短的體驗。

Yes, sure. So on Amazon specifically, today, what we do with Amazon is we have a licensing deal with Amazon where they pay us a fixed fee, let's call it, low-7 figures a year in revenue to distribute the alternative versions of the Amazon apps, so -- and then the store itself. So think about things like Prime and Audible and so on. And that relationship has been going great with Amazon.

是的，當然。具體來說，今天在亞馬遜上，我們與亞馬遜簽訂了一項許可協議，他們向我們支付固定費用，我們稱之為每年低七位數的收入，以分發亞馬遜應用程式的替代版本，那麼——然後是商店本身。所以想想像 Prime 和 Audible 之類的東西。與亞馬遜的關係一直進展順利。

Our next step with them is to expand it to third-party application, so think Candy Crush, Uber, Starbucks, that kind of thing. And that would be kind of the next leg of the relationship there that would have a different monetization with them. And so we're working through some of those integration details right now.

我們與他們合作的下一步是將其擴展到第三方應用程序，例如 Candy Crush、Uber、星巴克等。這將是我們關係的下一個階段，與他們有不同的貨幣化方式。因此，我們現在正在研究其中一些整合細節。

But I'd characterize the relationship is in a good spot. I think we're all wanting to see things move faster than what we're seeing right now. But in terms of delivering the conversion rate benefits that they expect, we're absolutely seeing that in the marketplace.

但我認為這種關係處於良好狀態。我認為我們都希望看到事情進展得比我們現在看到的更快。但就提供他們期望的轉換率優勢而言，我們絕對在市場上看到了這一點。

Got it. And then I just wanted to try to get a little more info on the Latin American carrier that you talked about that you expect to go live with your RPDs. I mean, really attractive for carriers. Where do you stand with kind of interest levels from other international carriers?

知道了。然後我只是想嘗試獲取有關您提到的希望與 RPD 一起使用的拉丁美洲運營商的更多資訊。我的意思是，這對運營商來說確實很有吸引力。您對其他國際航空公司的興趣程度有何看法？

Yes. So the pipeline is really robust, and I expect to have some good things to talk about here over the upcoming future because the pipeline is in really good shape right now. We're in the process of launching with this quarter with some new Latin American operators, which is encouraging to continue to expand our presence down there. And then I touched on Xiaomi as well in my comments.

是的。因此，管道非常強大，我希望在即將到來的未來在這裡談論一些好的事情，因為管道目前的狀況非常好。我們正在本季度與一些新的拉丁美洲運營商合作，這對於繼續擴大我們在那裡的業務來說是令人鼓舞的。然後我在評論中也談到了小米。

And really, the point here is rather than just being only relying upon a few operators here in the U.S., we've got to go ahead and cast a wider net and get a wider footprint. So we're not relying upon just upgrade cycles here in the U.S., and that's exactly what we're doing.

事實上，這裡的重點不是僅僅依賴美國的少數運營商，我們必須繼續撒下更廣泛的網路並獲得更廣泛的足跡。因此，我們在美國不僅僅依賴升級週期，而這正是我們正在做的事情。

Our next question comes from Tim Horan with Oppenheimer.

我們的下一個問題來自蒂姆·霍蘭和奧本海默。

The last few years, I think your fiscal fourth quarter revenues have been down 10% or so and EBITDA a little bit. Any reason that should be different this year?

過去幾年，我認為你們第四財季的營收下降了 10% 左右，EBITDA 也下降了一點。今年應該會有所不同嗎？

Yes, I don't know that it'd be much of a different seasonal factor. Tim, one thing we're considering as last December quarter was quite unique and didn't have quite the holiday seasonal lift that many expected in the ad markets. So we've taken what we think is a pretty prudent approach to how we're thinking about our December quarter. But I don't think outside of historical trends, a seasonal decline and almost seasonal decline wouldn't be odd for Q4 this year.

是的，我不知道這會是一個不同的季節因素。提姆，我們正在考慮的一件事是，去年 12 月的季度非常獨特，廣告市場並沒有像許多人預期的那樣出現假日季節的提振。因此，我們對 12 月季度採取了我們認為相當謹慎的方法。但我認為，除了歷史趨勢之外，今年第四季的季節性下降和幾乎季節性下降並不奇怪。

Got it. And can you give us a sense of the profitability of the 2 main lines of business at this point and maybe relative kind of growth rates for '25? Yes.

知道了。您能否讓我們了解目前 2 個主要業務線的獲利能力以及 25 年的相對成長率？是的。

Tim, was your question around...

提姆，你的問題是…

Well, can you give us a sense of, is there much difference in profitability for the 2 different business units on an EBITDA basis yet? And then -- and how about growth into 2025, maybe in total over the 2 units here?

那麼，您能否讓我們了解一下，以 EBITDA 為基礎，兩個不同業務部門的獲利能力是否有很大差異？然後 - 到 2025 年的增長怎麼樣，也許這裡的 2 個單位總共增長？

Yes. So let me start with the first one on kind of profitability. I'd say there is a difference on profitability, especially when you think about the margin. And we have some details in the Q that you'll be able to review, which breaks out the profitability. It doesn't have all of the expenses burn, but just give you a sense of that.

是的。讓我從第一個關於獲利能力的問題開始。我想說的是，獲利能力有差異，尤其是當你考慮利潤率時。我們在 Q 中提供了一些詳細信息，您可以查看這些詳細信息，其中列出了盈利能力。它並沒有燒掉所有的費用，但只是給你一種感覺。

But as a reminder, much of our Exchange business on our AGP business is reported on a net basis. So you'll see the margins are slightly higher. But on an absolute dollar basis, they're similar profitability. Of course, there are different products within each of those business units that have different economic and profitability profiles. But typically, I'd say they're similar on an absolute dollar basis. But on a margin basis, our AGP business would be higher.

但提醒一下，我們 AGP 業務中的大部分交換業務都是以淨額報告的。所以你會發現利潤略高。但以絕對美元計算，它們的獲利能力相似。當然，每個業務部門內都有不同的產品，具有不同的經濟和獲利能力。但通常情況下，我會說它們在絕對美元基礎上是相似的。但從利潤率的角度來看，我們的 AGP 業務會更高。

And then secondly, given the growth profile, we're not guiding to next year. But you would hear optimism around many of the things, the investments we put in place as well as some of the comps that we're growing over that would enable and allow us to grow next year.

其次，考慮到成長情況，我們不會為明年提供指導。但你會聽到對許多事情的樂觀情緒，我們所進行的投資以及我們正在發展的一些比較將使我們能夠在明年實現成長。

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。我想將會議轉回比爾·斯通發表閉幕詞。

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

謝謝大家參加今晚的電話會議。我們期待根據今晚的電話會議提出的所有要點報告我們的進展。我們將在幾個月後的 24 財年第三季電話會議上再次與您交談。謝謝，祝您有個愉快的夜晚。

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。您現在可以斷開連線。