Digital Turbine Inc (APPS) 2025 Q2 法說會逐字稿

Good day, and welcome to the Digital Turbine Reports fiscal 2025 second-quarter earnings conference call. (Operator Instructions) Please note that this event is being recorded. I would now like to turn the conference over to Brian Bartholomew, Head of Investor Relations. Please go ahead.

大家好，歡迎參加 Digital Turbine Reports 2025 財年第二季財報電話會議。（操作員說明）請注意，該事件正在被記錄。我現在想將會議交給投資者關係主管布萊恩·巴塞洛繆 (Brian Bartholomew)。請繼續。

Thanks, Nick. Good afternoon, and welcome to the Digital Turbine fiscal 2025 second-quarter earnings conference call. Joining me on the call today to discuss our results are CEO, Bill Stone; and CFO, Barrett Garrison.

謝謝，尼克。下午好，歡迎參加 Digital Turbine 2025 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業績的是執行長比爾史東 (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.

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。

Although we believe that our assumptions are reasonable, they are not guarantees of future performance, and some will inevitably prove to be incorrect.

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不正確的。

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.

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, Bill Stone.

現在我將把電話轉給我們的執行長比爾·斯通。

Thanks, Brian, and thank you all for joining our call tonight. Before breaking down our specific quarterly results, I want to start the call with a summary of where we're at in our business. Our results for the September quarter were marginally better than our June quarter, and our results for the June quarter were better than the March quarter. Our outlook for the remainder of the fiscal year assumes December will be better than September, and we will perform better in this upcoming March than we did last March.

謝謝布萊恩，也謝謝大家今晚加入我們的電話會議。在詳細介紹我們的具體季度業績之前，我想在電話會議開始時總結一下我們的業務狀況。我們九月季度的業績略好於六月季度，六月季度的業績好於三月季度。我們對本財年剩餘時間的展望假設 12 月將好於 9 月，並且我們在即將到來的 3 月的表現將比去年 3 月更好。

However, while these results are showing positive progress, that progress is below our expectations, and thus, has been baked into our go-forward forecast. We've been able to grow the strategic areas of our business that we've discussed on prior calls, and we'll discuss later in my remarks.

然而，雖然這些結果顯示出積極的進展，但進展低於我們的預期，因此已納入我們的未來預測。我們已經能夠發展我們在先前的電話會議中討論過的業務策略領域，我們將在稍後的演講中討論。

But that new growth has not been strong enough to offset the declines in both our exited businesses and legacy businesses, including device sales with our US partners, our sunset products and our legacy performance bidding strategies into the DSPs on our exchange.

但新的成長還不足以抵消我們退出業務和傳統業務的下降，包括我們與美國合作夥伴的設備銷售、我們的日落產品以及我們交易所 DSP 中的傳統績效競價策略。

Given this new operating environment, we need to make these businesses more efficient and rightsize their cost and support structures to reflect their current profitability contributions. We've begun a transformation project, including some third-party consultation, to take out more than $25 million of annual costs in our business to become leaner, improve cash flow and enable us to invest in these growth areas.

鑑於這種新的營運環境，我們需要提高這些企業的效率，並調整其成本和支援結構，以反映其當前的獲利貢獻。我們已經開始了一個轉型項目，其中包括一些第三方諮詢，旨在減少我們業務每年超過 2500 萬美元的成本，以變得更精簡、改善現金流並使我們能夠投資於這些成長領域。

That future is bright, as evidenced by a multiyear agreement we've just signed with a new Tier 1 operator here in the US for a variety of services, and a relationship with one store that will be a catalyst for us to grow additional device supply here in the US, the EU, and Latin America.

未來是光明的，我們剛剛與美國一家新的一級運營商簽署了一項多年協議，提供各種服務，以及與一家商店的關係，這將成為我們增加額外設備供應的催化劑美國、歐盟和拉丁美洲。

In addition, our brand strategy on our AGP part of our business is now showing solid year-over-year and sequential growth, and we believe we are building a nice moat around our strategy.

此外，我們業務的 AGP 部分的品牌策略現在顯示出穩健的同比和連續成長，我們相信我們正在圍繞我們的策略建立一條良好的護城河。

I'll provide more details in my remarks on these items, but the bottom line is we need to execute better, faster and more efficiently in the present as a company so we can attack the enormous market opportunity in front of us in the future. That's our number one priority. To move to our second-quarter results, we achieved $119 million of revenue and just over $15 million of EBITDA.

我將在關於這些項目的評論中提供更多細節，但最重要的是，作為一家公司，我們目前需要更好、更快、更有效率地執行，這樣我們才能在未來抓住我們面前的巨大市場機會。這是我們的第一要務。來看第二季的業績，我們實現了 1.19 億美元的營收和略高於 1,500 萬美元的 EBITDA。

In addition to the numbers, and as we've discussed on prior calls, we continue to invest in the future with notable progress on numerous investment activities that set us up for the future, including our progress on our new version of Ignite, our new hosting platform, has moved from migration phase to optimization phase; our launch of improved bidding capabilities is showing positive growth with brands; and many new back-end corporate systems consolidated and launched, which are simplifying and automating our work.

除了這些數字之外，正如我們在先前的電話會議中所討論的那樣，我們將繼續投資未來，並在為未來奠定基礎的眾多投資活動上取得顯著進展，包括我們在新版本Ignite、我們的新版本Ignite 的進展。我們推出的改進的競價功能顯示出品牌的正面成長；許多新的後端企業系統被整合和啟動，這些系統正在簡化和自動化我們的工作。

For the quarter, we had a variety of encouraging activities that are showing improvement and a variety of activities that need improvement. First, on the ODS segment. On the positive side, as we've discussed on prior calls, the importance of increasing our revenue per device, or RPD, outside the United States to offset the device declines inside the United States. I was pleased to see our international ODS revenues improve nearly 25% year over year, driven by better RPDs and new supply offsetting legacy US supply.

本季度，我們開展了各種令人鼓舞的活動，這些活動正在取得進展，也有各種需要改進的活動。首先是ODS部分。從積極的一面來看，正如我們在之前的電話會議中討論的那樣，增加美國境外每台設備的收入（RPD）以抵消美國境內設備的下降非常重要。我很高興看到我們的國際消耗臭氧層物質收入年增近 25%，這得益於更好的 RPD 和新供應抵消了美國傳統供應。

We also saw both sequential and year-over-year growth in our content media business. We still need to add more supply to our content media business, but I was pleased to see the team doing a great job optimizing the supply we do have to drive growth.

我們也看到內容媒體業務的連續成長和年成長。我們仍然需要為我們的內容媒體業務增加更多供應，但我很高興看到團隊在優化我們必須推動成長的供應方面做得很好。

We also saw our SingleTap licensing product continue to grow as we expanded relationships with many partners. The biggest headwind call-outs are device sales and reduced software updates over the life of those reduced device volumes.

隨著我們擴大與許多合作夥伴的關係，我們也看到我們的 SingleTap 授權產品不斷成長。最大的不利因素是設備銷售以及在設備數量減少的整個生命週期內軟體更新的減少。

In the US, operators have now publicly reported another quarter of postpaid upgrade rates that were approximately 3% of the base for the September quarter or a run rate of approximately 12% per year. That would imply more than an eight-year upgrade cycle, which, I think, all of us would recognize as unsustainable for the long term, but this is a reality in the present.

在美國，營運商現已公開報告了另一個季度的後付費升級率，約為 9 月季度基數的 3%，或每年約 12% 的運行率。這將意味著超過八年的升級週期，我認為我們所有人都會認為從長遠來看這是不可持續的，但這是目前的現實。

We do expect this trend to reverse in 2025 as we see the anniversary and migration from two- to tree-year leases in the US market as well as likely upgrades, driven by new AI features on OEM hardware.

我們確實預計這一趨勢將在2025 年扭轉，因為我們將看到美國市場的周年紀念日和從兩年到三年租賃的轉變，以及在OEM 硬體上的新人工智慧功能的推動下可能進行的升級。

For our AGP business, the bright spots continue to be our investment in brands that want to leverage our first-party data to reach their existing and potential customers over our global network. That is now bearing fruit. We achieved double-digit sequential growth, and our year-over-year growth was up over 25%.

對於我們的 AGP 業務，亮點仍然是我們對希望利用我們的第一方資料透過我們的全球網路接觸現有和潛在客戶的品牌的投資。現在正在結出碩果。我們實現了兩位數的環比成長，年成長超過 25%。

As we've discussed on prior calls, this is a strategic objective for us and something we have invested in to differentiate us from other players. We're now in a great position to continue to grow, and we will continue to invest here as we believe we are building a moat given the high barriers to entry, and work required to earn the trust of brands like P&G, Coke, Disney, Starbucks, and so on.

正如我們在先前的電話會議中所討論的那樣，這是我們的策略目標，也是我們為使我們與其他參與者區分開來而進行投資的目標。我們現在處於繼續成長的有利位置，我們將繼續在這裡投資，因為我們相信，鑑於進入障礙很高，我們正在築起一條護城河，並且需要努力贏得寶潔、可口可樂、迪士尼等品牌的信任、星巴克等等。

However, this new growth has been offset by declining legacy performance advertising on our exchange. And improving our own performance advertising, leveraging our own first-party data is our most important execution improvement area for our AGP business. We have simply not made the progress here that we need.

然而，這一新的成長已被我們交易所上傳統績效廣告的減少所抵消。利用我們自己的第一方資料來改善我們自己的效果廣告，是我們 AGP 業務最重要的執行改善領域。我們根本沒有取得我們需要的進展。

For legacy Fyber and AdColony exchange businesses, we're focused on waterfall bidding with third-party performance DSPs, primarily buying gaming advertising inside gaming applications. As expected, these DSPs have been executing their own supply path optimization strategies to vertically integrate the demand connected to their own supply. And for those companies without a strong mediation footprint, it has become a largely commoditized ad tech gaming space for both iOS and Android.

對於傳統的 Fyber 和 AdColony 交易業務，我們專注於使用第三方高效能 DSP 進行瀑布式競價，主要在遊戲應用程式內購買遊戲廣告。正如預期的那樣，這些 DSP 一直在執行自己的供應路徑最佳化策略，以垂直整合與其自身供應相關的需求。對於那些沒有強大中介足跡的公司來說，它已經成為 iOS 和 Android 基本上是商品化的廣告技術遊戲空間。

We saw this risk years ago, and that's why we invested in our own brand and SDK bidding activities to mitigate that risk, increase our own first-party activities of our own network and continue to invest in mediation.

我們多年前就看到了這種風險，這就是為什麼我們投資於我們自己的品牌和 SDK 競價活動，以減輕這種風險，增加我們自己網路的第一方活動，並繼續投資於調解。

We've also been able to expand our AGP supply from being largely dependent upon game publishers to much more diversified over nongaming. To illustrate this point, our DTX revenues on nongaming applications have nearly doubled over the past year.

我們也能夠將 AGP 供應從很大程度上依賴遊戲發行商擴大到更多元化的非遊戲領域。為了說明這一點，我們在非遊戲應用程式上的 DTX 收入在過去一年中幾乎翻了一番。

In summary, our investment and focus areas are showing growth. We just need them to grow faster to offset the impacts of US device sales with our legacy supply partners and also outrun our legacy performance DSP declines on our exchange as we transition to more brand, more AI and machine learning in our data science, increase our nongaming applications and improve our share of voice or first-party performance demand over our network. Those are our AGP priorities.

總而言之，我們的投資和重點領域正在呈現成長。我們只需要它們更快地成長，以抵消美國設備銷售對我們傳統供應合作夥伴的影響，並超越我們交易所傳統性能DSP 的下降，因為我們在數據科學中轉向更多品牌、更多人工智慧和機器學習，增加我們的非遊戲應用程序，並提高我們在網路上的語音份額或第一方效能需求。這些是我們 AGP 的優先事項。

Turning to the future. Our focus is on growth and efficiency. The keys to driving growth are more devices, improved performance from legacy and new products and a wider and deeper net of media and brand relationships. The key to efficiency is automation, aligning operating costs to gross profit and realigning our people, process and systems for maximum benefit. Barrett will provide more details on our transformation activities in his remarks.

展望未來。我們的重點是成長和效率。推動成長的關鍵是更多的設備、舊產品和新產品性能的提高以及更廣泛、更深層的媒體和品牌關係網絡。效率的關鍵是自動化，使營運成本與毛利保持一致，並重新調整我們的人員、流程和系統，以最大化利益。巴雷特將在演講中提供有關我們轉型活動的更多詳細資訊。

To drive faster growth, the first driver is expanding our device footprint. Despite those soft device sales in the US, we have been expanding our global device relationships through partners like Motorola, Nokia, ONE Store, Xiaomi, and Telecom Italia Brazil.

為了推動更快的成長，第一個驅動因素是擴大我們的設備覆蓋範圍。儘管在美國有這些軟設備銷售，但我們一直在透過摩托羅拉、諾基亞、ONE Store、小米和巴西義大利電信等合作夥伴擴大我們的全球設備關係。

Today, I'm pleased to announce that a Tier 1 US operator has recently selected us for a variety of services, leveraging our Ignite platform, such as SingleTap, in a multiyear deal that should prove to be a nice 2025 growth catalyst for us. This win is a nice proof point and validation of the product market fit for our solutions.

今天，我很高興地宣布，一家美國一級運營商最近選擇我們提供各種服務，利用我們的Ignite 平台（例如SingleTap），這是一項多年期協議，這對我們來說應該是2025 年良好的成長催化劑。這次勝利是一個很好的證明，也是對我們解決方案適合的產品市場的驗證。

Our second growth driver is expanding our product portfolio for both our ODS and AGP businesses. Scaling new ad tech and on-device capabilities are critical to our return to growth. On our AGP business, as mentioned earlier, our SDK bidding capabilities have been a nice product enhancement to unlock brand spends on our exchange.

我們的第二個成長動力是擴大 ODS 和 AGP 業務的產品組合。擴展新的廣告技術和設備上的功能對於我們恢復成長至關重要。在我們的 AGP 業務中，如前所述，我們的 SDK 競價功能是一個很好的產品增強功能，可以釋放我們交易所的品牌支出。

While we still have plenty of work to do to transform our migration to this method of bidding with such enhancements of improved AI, machine learning, integration of more first-party data and so on, SDK bidding is already showing strong growth. It's now approximately 70% of the total impressions on our exchange compared to only 5% a year ago. We're diversifying away from waterfall bidding as it's less than 40% to our traffic compared to 90% a few years ago.

雖然我們仍然有大量工作要做，透過改進人工智慧、機器學習、整合更多第一方資料等增強功能來轉變我們向這種出價方法的遷移，但 SDK 出價已經顯示出強勁的成長。現在，它約占我們交易所總展示次數的 70%，而一年前僅為 5%。我們正在擺脫瀑布式出價，因為與幾年前的 90% 相比，瀑布式出價占我們流量的比例不到 40%。

Our investments in first-party data, DTX, and other features are a major enabler to drive more brand revenues through our network. Our other AGP product growth driver will be increasing our share of voice for leveraging our first-party data and our Ignite capabilities via our own demand-side platform or DSP.

我們對第一方數據、DTX 和其他功能的投資是透過我們的網路推動更多品牌收入的主要推動力。我們的另一個 AGP 產品成長動力將是透過我們自己的需求方平台或 DSP 來利用我們的第一方資料和 Ignite 功能來增加我們的話語權。

We do this today through our Appreciate acquisition, which is showing renewed growth, and we're beginning to partner with third-party DSPs that can help grow our share of voice. This will translate not just top line revenue growth with more demand dollars, but it's also key in driving the flywheel effects of improving revenues for other products like SingleTap, the DT Exchange, and FairBid, our mediation product.

今天，我們透過收購 Appreciate 來做到這一點，該收購正在顯示出新的成長，我們開始與第三方 DSP 合作，這有助於提高我們的話語權份額。這不僅會帶來更多需求帶來的營收成長，而且對於推動提高其他產品（如 SingleTap、DT Exchange 和我們的中介產品 FairBid）收入的飛輪效應也很關鍵。

On the ODS side of our business, our primary growth drivers are SingleTap, alternative apps and better leveraging our first-party data for our existing ODS products. SingleTap continues to add more devices, more advertisers and better execution. It's early days for our alternative app distribution approach, but as many saw with our recent PR announcement with ONE Store, our strategy is starting to come together.

在我們業務的 ODS 方面，我們的主要成長動力是 SingleTap、替代應用程式以及更好地利用我們現有 ODS 產品的第一方資料。SingleTap 不斷添加更多設備、更多廣告商和更好的執行力。我們的替代應用程式分發方法還處於早期階段，但正如許多人從我們最近與 ONE Store 發布的公關公告中看到的那樣，我們的策略正在開始整合。

We believe one of the keys to unlocking more device supply will be the ability to offer alternative app distribution to publishers, OEMs, mobile carriers and mega cap tech players. Many of you have read about all of the regulatory activity around the globe in the EU, Japan, Korea, India, and here in the US.

我們相信，釋放更多設備供應的關鍵之一是能夠向發行商、原始設備製造商、行動營運商和大型科技公司提供替代應用程式分發。你們中的許多人都已經了解了全球範圍內歐盟、日本、韓國、印度和美國的所有監管活動。

There's a building momentum to increase options for consumers and publishers on how they distribute and get applications to market, and all of our hard work over the past decade has positioned us perfectly to leverage these opportunities. I encourage investors to pay close attention to these developments in the space as they will likely open up growth opportunities for companies like Digital Turbine.

消費者和發行商在如何分發和將應用程式推向市場方面有更多的選擇，而我們過去十年的所有努力使我們能夠完美地利用這些機會。我鼓勵投資者密切關注該領域的這些發展，因為它們可能為 Digital Turbine 等公司帶來成長機會。

And beyond this fiscal year, our goal is not just to return to growth but to accelerate it. The key driver here will be the expansion of our alternative app strategy. We've launched our first alternative app distribution products, which we brand as DT Hub, with 5 operators here in the United States.

在本財年之後，我們的目標不僅是恢復成長，而是加速成長。這裡的關鍵驅動力將是我們替代應用程式策略的擴展。我們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。

With our OS -- or One Store announcement last week, we will be leveraging their platform across our operator relationships, not just in the United States, but also in the European Union and Latin America. Be on the lookout for operator and OEM progress here as this will be a major driver of accelerating our device supply, and thus, revenues.

隨著我們上週發布的作業系統（或 One Store）的發布，我們將在我們的營運商關係中利用他們的平台，不僅在美國，而且在歐盟和拉丁美洲。請留意營運商和 OEM 的進展，因為這將是加速我們的設備供應以及收入的主要驅動力。

We're excited about our ONE Store relationship for many reasons, but one is that it is not capital-intensive as we can leverage the great work the ONE Store team has done in Korea with alternative apps and their local work with Korean operators. We expect to begin increased focus in the EU with the Digital Markets Act, or DMA, now in effect.

我們對ONE Store 合作關係感到興奮的原因有很多，但其中之一是它不是資本密集的，因為我們可以利用ONE Store 團隊在韓國透過替代應用程式所做的出色工作以及他們與韓國運營商的本地合作。隨著《數位市場法案》（DMA）現已生效，我們預計將開始更加關注歐盟。

And as a reminder for investors, the DMA launched in March of this year in the EU, and we would encourage investors to pay close attention to the details around this, such as how the regulators manage Apple compliance and the corresponding opportunities it presents to us. I'd also encourage investors to pay close attention to all the developments here in the United States, such as the recent decisions on Google's laws and the DOJ antitrust suit and a variety of other legal and regulatory matters that should be tailwinds for companies like ours.

並且提醒投資者，DMA於今年3月在歐盟推出，我們鼓勵投資者密切關注圍繞此的細節，例如監管機構如何管理蘋果的合規性以及它為我們帶來的相應機會。我還鼓勵投資者密切關注美國的所有事態發展，例如最近關於谷歌法律的決定和司法部反壟斷訴訟以及各種其他法律和監管事務，這些對我們這樣的公司來說應該是有利的。

I also want to emphasize that the alternative app strategy is not just about new in-app payment revenues, but perhaps, more importantly, to be the catalyst to accelerate our existing lines of business beyond this fiscal year. Today, approximately 50% of our business is driven by user acquisition, and 50% is driven by in-app advertising. Our app providers want to find innovative ways to acquire more users at lower cost.

我還想強調，替代應用程式策略不僅僅是新的應用程式內支付收入，更重要的是，可能會成為本財年之後加速我們現有業務線的催化劑。如今，我們大約 50% 的業務由用戶獲取驅動，50% 由應用程式內廣告驅動。我們的應用程式供應商希望找到創新的方法以更低的成本獲取更多用戶。

And also, we believe that this will open up new app providers to leverage our ad tech stack as part of the strategy, thereby driving more AGP revenue growth. We're live today running both alternative app user acquisition campaigns and in-app advertising, leveraging our technology. In other words, improving our present revenues and cash flow are both closely linked to this future strategy.

此外，我們相信這將開闢新的應用程式供應商利用我們的廣告技術堆疊作為策略的一部分，從而推動更多的 AGP 收入成長。今天，我們利用我們的技術開展替代應用程式用戶獲取活動和應用程式內廣告。換句話說，改善我們目前的收入和現金流都與這個未來的策略密切相關。

In conclusion, improving our execution remains a top priority of the company. We're confident we have the right strategy, partners, market opportunity, commercial model and products to have a very bright future as we're in the right space at the right time, which is critical for any tech company.

總之，提高執行力仍是公司的首要任務。我們相信，我們擁有正確的策略、合作夥伴、市場機會、商業模式和產品，擁有非常光明的未來，因為我們在正確的時間處於正確的空間，這對任何科技公司都至關重要。

With that, I'll turn it over to Barrett to take you through the numbers.

接下來，我會將其交給巴雷特，讓他帶您了解這些數字。

Thanks, Bill, and good evening. As we review our performance in this quarter, it's clear we've made progress, though not at the pace we had anticipated. Revenue of $119 million in the quarter was up modestly sequentially, and EBITDA of $15.3 million also improved quarter-over-quarter.

謝謝，比爾，晚上好。當我們回顧本季的業績時，很明顯地我們已經取得了進展，儘管沒有達到我們預期的速度。本季營收為 1.19 億美元，環比小幅成長，EBITDA 為 1,530 萬美元，環比也有所改善。

In our ODS segment, revenues reached $82.4 million, a 2% increase from the June quarter, but down 17% compared to the same period last year. While we are encouraged by the positive revenue growth from our international ODS efforts, driven by our focused initiative to expand RPDs outside the US, we are facing significant headwinds.

在我們的 ODS 部門，營收達到 8,240 萬美元，比 6 月季度成長 2%，但與去年同期相比下降 17%。儘管在我們將 RPD 擴展到美國以外的重點計劃的推動下，我們的國際消耗臭氧層物質努力所帶來的積極收入增長令我們感到鼓舞，但我們仍面臨著巨大的阻力。

Softer US device volumes have impacted our performance, with Q2 device volumes experiencing the largest year-on-year percentage decline in the past four quarters. And we have integrated these disappointing trends into our revised forecast for FY25.

美國設備銷售疲軟影響了我們的業績，第二季設備銷售量出現了過去四個季度以來最大的年減幅。我們已將這些令人失望的趨勢納入我們對 2025 財年的修訂預測中。

Alternative ad distribution remains a critical growth initiative within ODS. While our efforts accelerated this, the strategy are still in early stages. We are energized by the recent advancements with our ONE Store partnership, requiring minimal capital outlay, and we believe this will help us gain further momentum in the market.

替代廣告分發仍然是 ODS 內的一項重要成長舉措。雖然我們的努力加速了這一進程，但該戰略仍處於早期階段。我們對 ONE Store 合作夥伴關係最近的進展感到鼓舞，需要最少的資本支出，我們相信這將有助於我們在市場上獲得進一步的動力。

Turning to our AGP business. Q2 revenues came in at $37.3 million, which was a modest sequential decline. As Bill mentioned, revenues from brand spending continues to shine, with brand revenues up 26% year-over-year and 13% sequentially.

轉向我們的 AGP 業務。第二季營收為 3,730 萬美元，季減。正如 Bill 所提到的，品牌支出收入持續表現出色，品牌收入較去年同期成長 26%，較上季成長 13%。

However, these positive trends are tempered by our exchange business, which underperformed expectations in Q2. Despite our initiatives to enhance our bidding capabilities and attract improved DSP spending on our platform, we have not yet achieved the anticipated progress.

然而，這些積極趨勢受到我們的交易所業務的影響，該業務在第二季度的表現低於預期。儘管我們採取措施增強投標能力並吸引平台上 DSP 支出的增加，但我們尚未取得預期進展。

Our consolidated Q2 gross margin was 45%, down from 46% in Q1 and 47% in Q2 of the prior year. This sequential decline in margins was primarily influenced by modest product mix changes in AGP, where our higher-margin exchange business has not kept pace with the growth in our brand revenues.

我們第二季的綜合毛利率為 45%，低於上年第一季的 46% 和第二季的 47%。利潤率的連續下降主要是受到 AGP 產品組合適度變化的影響，我們利潤率較高的交易所業務未能跟上我們品牌收入的成長步伐。

We remain committed to pursuing expense efficiencies to maximize the profitability of our growth strategy. We are disciplined in our cost controls, which I will discuss further in relation to our important transformation program, as Bill highlighted.

我們仍然致力於追求費用效率，以最大限度地提高我們成長策略的獲利能力。正如比爾所強調的那樣，我們在成本控制方面遵守紀律，我將進一步討論與我們重要的轉型計劃相關的問題。

Our cash operating expenses were $38.7 million in Q2, down 3% sequentially and 2% year-on-year, representing 33% of our revenues for the quarter. It's important to note that the actions from our recently announced transformation program did not yet impact Q2 results.

第二季我們的現金營運支出為 3,870 萬美元，季減 3%，年減 2%，佔本季營收的 33%。值得注意的是，我們最近宣布的轉型計劃的行動尚未影響第二季度的業績。

In the quarter, we achieved non-GAAP adjusted net income of $5 million or $0.05 per share as compared to a $13.9 million or $0.13 per share in the second quarter of fiscal 2024. Our GAAP loss was $25 million or $0.24 per share based on 103 million basic shares outstanding compared to a prior year net loss of $1.61 per share.

本季度，我們實現了非 GAAP 調整後淨利潤 500 萬美元，即每股 0.05 美元，而 2024 財年第二季度的淨利潤為 1,390 萬美元，即每股 0.13 美元。根據 1.03 億股已發行基本股計算，我們的 GAAP 虧損為 2,500 萬美元，即每股 0.24 美元，而前一年的淨虧損為每股 1.61 美元。

Moving to the balance sheet and cash flow. Our cash balance at the end of the quarter stood at $32 million, a decrease of $3 million from the June quarter. Cash flow from operations was negative $8.7 million, primarily driven from an improvement in working capital as we reduced payable balances in the quarter.

轉向資產負債表和現金流量。本季末我們的現金餘額為 3,200 萬美元，比 6 月季度減少了 300 萬美元。營運現金流為負 870 萬美元，主要是由於我們在本季減少了應付餘額，營運資金有所改善。

Our net working capital increased $8 million in the quarter to $20.3 million. With steady growth in sequential EBITDA and recent cost reduction actions, we maintained ample liquidity to execute on our growth plans.

本季我們的淨營運資本增加了 800 萬美元，達到 2,030 萬美元。隨著 EBITDA 的連續穩定成長和最近的成本削減行動，我們保持了充足的流動性來執行我們的成長計劃。

We increased the amount drawn on our revolver by $15 million in the quarter, bringing our debt balance at the end of the quarter to $411 million. As our business continues to strengthen, we would expect to pay down our revolver in quarterly increments.

本季我們將左輪手槍提領的金額增加了 1,500 萬美元，使季末的債務餘額達到 4.11 億美元。隨著我們的業務不斷加強，我們預計將按季度增量償還我們的左輪手槍。

Reducing our debt and lowering leverage remain top financial priorities to strengthen our balance sheet, objectives that are crucial for our shareholders. Our recently launched transformation program is a significant step towards achieving this goal.

減少債務和降低槓桿仍然是加強我們資產負債表的首要財務優先事項，這對我們的股東至關重要。我們最近啟動的轉型計劃是實現這一目標的重要一步。

Now let me address the transformation program that Bill mentioned. Despite green shoots of improved performance in the first half of the year, we recognize there's more work to do. We are not making sufficient progress on our growth initiatives to offset the headwinds in our legacy business lines.

現在讓我談談比爾提到的轉型計畫。儘管上半年業績有所改善，但我們意識到還有更多工作要做。我們的成長計劃沒有取得足夠的進展來抵消我們傳統業務線的阻力。

In response, we have enacted a program aimed at achieving more than $25 million in cost reductions across the business. We will drive these efficiencies by streamlining our processes and leveraging the system integrations and platform migrations we have recently completed. Our goal is to create a faster and leaner organization.

作為回應，我們制定了一項計劃，旨在實現整個企業成本削減超過 2500 萬美元。我們將透過簡化流程並利用我們最近完成的系統整合和平台遷移來提高效率。我們的目標是創造一個更快、更精簡的組織。

Additionally, we will cut costs in nonstrategic areas and ensure all our overall cost structure is aligned with our greatest growth opportunities. Importantly, we plan to reinvest a portion of our savings into strategic growth areas, such as our alternative app business, to fuel growth while we improve profitability. We are taking aggressive action to optimize our cost structure.

此外，我們將削減非策略領域的成本，並確保我們所有的整體成本結構與我們最大的成長機會保持一致。重要的是，我們計劃將部分儲蓄再投資到策略性成長領域，例如我們的替代應用程式業務，以在提高獲利能力的同時推動成長。我們正在採取積極行動來優化我們的成本結構。

In the current quarter, we have already reduced annualized cost savings by $15 million, primarily through a reduction in our workforce, focused on non-revenue-generating areas, combined with other nonpersonnel expenses.

在本季度，我們已經將年化成本節省減少了 1500 萬美元，主要是透過減少勞動力、專注於非創收領域以及其他非人事支出。

While these changes involve difficult decisions, they are necessary to optimize our company and strengthen our balance sheet and invest in the future. We expect to achieve the majority of our $25 million target on a full run rate basis by the first quarter of fiscal 2026. We will provide more specifics on our plans and the timing in our coming quarters.

雖然這些變化涉及艱難的決策，但它們對於優化我們的公司、加強我們的資產負債表和投資未來是必要的。我們預計到 2026 財年第一季度，在全面運作的基礎上實現 2,500 萬美元目標的大部分。我們將在未來幾季提供有關我們的計劃和時間表的更多細節。

Now let me turn to our outlook. Reflecting the current operating environment and recent trends, we anticipate revenue in the range of $475 million to $485 million in the fiscal year 2025, with projected non-GAAP adjusted EBITDA of between $65 million and $70 million.

現在讓我談談我們的前景。根據當前的營運環境和近期趨勢，我們預計 2025 財年的營收將在 4.75 億美元至 4.85 億美元之間，預計非 GAAP 調整後 EBITDA 將在 6,500 萬美元至 7,000 萬美元之間。

As we look ahead to the second half of the year, we expect continued sequential revenue growth in Q3. We also lap the residual impact of the exited legacy businesses in Q4, which positions us to return to growth year-on-year top line in the March quarter.

展望今年下半年，我們預期第三季營收將持續較上季成長。我們還克服了第四季度退出的遺留業務的殘餘影響，這使我們能夠在三月季度恢復同比增長。

In closing, despite these challenging circumstances, we are energized and optimistic about the future. We are committed to executing our plans to capitalize on the emerging opportunities, strengthen our financial position, drive top line and free cash flow growth, and position DT to achieve its full potential.

最後，儘管面臨這些充滿挑戰的環境，我們仍對未來充滿活力和樂觀。我們致力於執行我們的計劃，以利用新興機遇，增強我們的財務狀況，推動營收和自由現金流成長，並使 DT 充分發揮其潛力。

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

接下來，讓我將其交還給接線員以開始提問。操作員？接線員，我們現在可以開始提問。

The next question comes from [Neil Nibert], private investor.

下一個問題來自私人投資者[尼爾·尼伯特]。

Neil. Please go ahead with your question.

尼爾.請繼續你的問題。

Mr. Nibert is disconnected. (Operator Instructions) Anthony Stoss, Craig-Hallum.

Nibert 先生已斷開連接。（操作說明）Anthony Stoss，Craig-Hallum。

Thank you, operator. Bill, just I'm curious if you could lay out -- you talked about the phone activation side of the business. I think that's been bouncing along the bottom according to most of our covered companies within the handset space. So I'm struggling to see why that's getting worse. And maybe just comment on that. But also, do you think you're losing a substantial share on the performance advertising side?

謝謝你，接線生。比爾，我很好奇你是否可以闡述一下——你談到了業務的電話激活方面。我認為，根據我們在手機領域覆蓋的大多數公司的說法，這一數字一直在底部反彈。所以我很難理解為什麼情況會變得更糟。也許只是對此發表評論。而且，您是否認為您在效果廣告方面正在失去大量份額？

Just more detail would be helpful, and then I have a couple of follow-ups. Thanks.

只要提供更多細節就會有所幫助，然後我會進行一些後續行動。謝謝。

Yeah. Hey, Tony. Yeah, so we're seeing some new partners we brought on that I referenced in my remarks that are actually growing our device supply, which is encouraging. A few of those names have shown nice growth, but just not enough to outrun some of the legacy supply issues here in the United States.

是的。嘿，東尼。是的，我們看到了我在評論中提到的一些新合作夥伴，這些合作夥伴實際上正在增​​加我們的設備供應，這是令人鼓舞的。其中一些公司表現出了良好的成長，但不足以擺脫美國遺留的一些供應問題。

And one nuance here is we also -- because of the declining supply base in the United States, what we've been able to work with our partners on is working on services that would offer our applications after they do software updates.

這裡的一個細微差別是我們也 - 由於美國的供應基礎不斷下降，我們能夠與我們的合作夥伴合作開發服務，在他們進行軟體更新後為我們的應用程式提供服務。

And that part of the business, because we reduced the volume, is also now starting to have reduced software updates over the life. And so those two drivers are really what we're seeing. We saw the major US operators report their upgrade rates in the quarter that were down year-over-year. And so I don't have that broken out by iOS or Android.

由於我們減少了數量，這部分業務現在也開始減少生命週期內的軟體更新。所以這兩個驅動程式確實是我們所看到的。我們看到美國主要營運商報告的本季升級率年減。所以我沒有透過 iOS 或 Android 來解決這個問題。

But in aggregate, they are, and we continue to still see that show up in our volumes that we see, but we're seeing some encouraging things internationally.

但總的來說，它們確實如此，而且我們仍然看到這一點出現在我們所看到的數量中，但我們在國際上看到了一些令人鼓舞的事情。

On the performance DSP side, yes, this is the biggest area we got to improve on the -- on our AGP business. Specifically, we've done a nice job on brands and bringing brands into our network, and we think that's unique and differentiated from other players.

在效能 DSP 方面，是的，這是我們 AGP 業務上需要改進的最大領域。具體來說，我們在品牌方面做得很好，並將品牌引入我們的網絡，我們認為這是獨一無二的，與其他參與者不同。

But taking our first-party data that we have on things like Ignite, bringing that into our performance business, whether we do that through our build, which is Appreciate and DT Direct. We do that through leasing it. Those AI and machine learning capabilities from other third parties, we've got to improve here.

但是，利用我們在 Ignite 等方面擁有的第一方數據，將其帶入我們的性能業務，無論我們是否透過我們的構建（即 Appreciate 和 DT Direct）來做到這一點。我們透過租賃來做到這一點。來自其他第三方的人工智慧和機器學習能力，我們必須在這裡改進。

This is our single biggest area for improvement on the AGP side of the business as we see some of our legacy performance DSPs doing their own supply path optimization strategies. So it is a major focus area, but there's some other bright spots in the AGP business, but that's the one we got to focus on.

這是我們在 AGP 業務方面需要改進的最大領域，因為我們看到一些傳統效能 DSP 正在執行自己的供應路徑最佳化策略。所以這是一個主要的重點領域，但 AGP 業務還有一些其他亮點，但這是我們必須關注的。

(Operator Instructions) Anthony Stoss, Craig-Hallum.

（操作說明）Anthony Stoss，Craig-Hallum。

I got cut off. Bill, could you list or tell us what the RPD was? Was it up, down, flat in the quarter? And then also, just so I don't get cut off from the operator again, at what point does the Board start to explore strategic alternatives?

我被打斷了。Bill，您能列出或告訴我們 RPD 是什麼嗎？本季是上漲、下跌還是持平？另外，為了避免我再次與營運商失去聯繫，董事會什麼時候開始探索策略替代方案？

Yeah. So Tony, as far as RPDs go, we had nice improvement in our RPDs outside the United States. So it was encouraging to see some accretion and growth there. That's always been a focus area is to bring more revenue outside the US.

是的。東尼，就 RPD 而言，我們在美國以外的 RPD 取得了很大的進步。因此，看到那裡的一些增長和增長是令人鼓舞的。將更多收入帶到美國境外一直是一個重點領域。

In the US, we saw RPDs decline a little bit, but that was primarily driven by that software issue I mentioned earlier in my remarks. And then as far as strategic options go for the company, our focus right now is we got to go execute in the business. We think we've got some right assets. We just got to improve our presence to get to the bright future for what we're doing.

在美國，我們看到 RPD 略有下降，但這主要是由我之前在演講中提到的軟體問題造成的。然後就公司的策略選擇而言，我們現在的重點是我們必須在業務中執行。我們認為我們擁有一些合適的資產。我們只需要提高我們的表現，為我們正在做的事情創造光明的未來。

Thank you.

謝謝。

At this time, we show no further questions. So I'd like to turn the conference back over to Bill Stone for closing remarks.

此時，我們不再提出任何問題。因此，我想將會議轉回比爾·斯通致閉幕詞。

Thanks, everyone, for joining the call today. We'll talk to you again in our fiscal '25 third quarter call in a few months. Thanks and have a great night.

感謝大家今天加入電話會議。我們將在幾個月後的 25 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。