Digital Turbine Inc (APPS) 2025 Q3 法說會逐字稿

Good day, and welcome to the Digital Turbine fiscal 2025 third-quarter results conference call.

大家好，歡迎參加 Digital Turbine 2025 財年第三季業績電話會議。

(Operator Instructions) Please note this event is being recorded.

（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference over to Mr. Brian Bartholomew, Head of Investor relations. Please go ahead, sir.

現在，我想將會議交給投資人關係主管 Brian Bartholomew 先生。先生，請繼續。

Thank you, Chuck. Good afternoon, and welcome to the Digital Turbine fiscal 2025 third quarter earnings conference call. Joining me on the call today to discuss our results are CEO, Bill Stone; and CFO, Barrett Garrison.

謝謝你，查克。下午好，歡迎參加 Digital Turbine 2025 財年第三季財報電話會議。今天與我一起參加電話會議討論我們業績的有執行長比爾史東 (Bill Stone)；和財務長巴雷特·加里森（Barrett Garrison）。

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，我們今天的演講將包括前瞻性陳述。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、未來產品和服務、預期的市場需求和其他前瞻性主題。

Although we believe that our assumptions are reasonable, they are not guarantees of future performance and some will inevitably prove to be incorrect. Except as required by law, we undertake no obligation to update any forward-looking statements.

儘管我們相信我們的假設是合理的，但它們並不能保證未來的表現，而且有些假設不可避免地會被證明是不正確的。除法律要求外，我們不承擔更新任何前瞻性聲明的義務。

For a discussion of the risk factors that could cause our actual results to differ materially from those contemplated by forward-looking statements, please refer to the documents we file with the Securities and Exchange Commission.

有關可能導致我們的實際結果與前瞻性陳述所預期的結果有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準則的績效指標。非公認會計準則 (GAAP) 指標不能取代公認會計準則 (GAAP) 指標。請參閱今天的新聞稿，以了解有關使用非公認會計準則 (GAAP) 指標的局限性以及這些非公認會計準則 (GAAP) 財務結果與最具可比性的公認會計準則 (GAAP) 指標的調節的重要資訊。

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

現在我們將電話轉給我們的執行長比爾·斯通先生。

Thanks, Brian, and good afternoon, everyone. Before diving into our quarterly results, I'd like to announce an exciting addition to our executive team. Steve Lasher will be joining as our new CFO effective tomorrow. Steve brings a wealth of technology and financial leadership experience as a former public company CFO of Vonage. And before that handling many financial executive positions with IBM, and we're thrilled to have Steve on board.

謝謝，布萊恩，大家下午好。在深入了解我們的季度業績之前，我想宣布我們的執行團隊又增添了一位令人興奮的新成員。史蒂夫·拉舍 (Steve Lasher) 將於明天加入本公司，擔任新任財務長。作為前上市公司 Vonage 的財務官，史蒂夫擁有豐富的技術和財務領導經驗。在此之前，史蒂夫曾在 IBM 擔任多個財務執行職位，我們非常高興他能加入我們。

However, it's bittersweet for me is Barrett has been instrumental in building our business over the past eight years. We transition into a consultant role for the next few months to ensure we have a very smooth and solid continuity and transition.

然而，對我來說，苦樂參半的是，巴雷特在過去八年裡為我們的業務發展做出了重要貢獻。我們將在接下來的幾個月轉變為顧問角色，以確保我們擁有非常順利和穩固的連續性和過渡。

When I reflect back on where we were at when Barrett first started on day one and compare that to where we're at today, the progress has been enormous. Well, thank Barrett for everything he's done to build DT and a close relationship we've built over the years, not just as colleagues, but also as friends.

當我回想起巴雷特第一天開始工作時的情況，並將其與今天的情況進行比較時，我發現我們的進步是巨大的。好吧，感謝巴雷特為建立 DT 所做的一切，以及我們多年來建立的密切關係，不僅是作為同事，也是作為朋友。

Turning the quarter. I was pleased to see us exceed expectations and also generate positive free cash flow. More specifically, we did $135 million in revenue, $22 million in adjusted EBITDA, and $0.13 in non-GAAP EPS. I'll break out additional details in my remarks. But the main takeaways for the investors on the drivers for our improved performance are improved advertising demand for our overall platform.

轉眼間。我很高興看到我們超出了預期並產生了正的自由現金流。更具體地說，我們的營收為 1.35 億美元，調整後 EBITDA 為 2,200 萬美元，非 GAAP EPS 為 0.13 美元。我將在我的發言中詳細說明。但對投資人來說，我們業績改善的主要驅動因素是我們整體平台的廣告需求增加。

Our transformation efforts are showing early bottom results, online results and overall improved execution as a company, especially for our on device, international business, and our brand strategy. We've talked about all these things on prior calls and it's great to see them not showing up in the results, enable us to raise our outlook.

我們的轉型努力正在顯現早期的底部成果、線上成果以及公司整體執行力的提升，特別是對於我們的設備、國際業務和品牌策略。我們在先前的電話會議中已經討論過所有這些事情，很高興看到它們沒有出現在結果中，這使我們能夠提高我們的展望。

For the March quarter, we're guiding for both year-over-year growth, not just on the top line but nearly 50% growth in EBITDA. For our ODS segments, revenues reached $92 million, an 11% sequential increase from the September quarter. We set all-time records for revenue per device both inside the US and internationally driven by strong advertiser demand.

對於三月季度，我們預計將同比成長，不僅是營收成長，而且 EBITDA 也將成長近 50%。就我們的ODS部門而言，營收達到了9,200萬美元，較9月份季度季增11%。在強勁的廣告商需求的推動下，我們在美國國內和國際上都創下了每台設備收入的歷史新高。

However, this was partially offset by continuing softness with US device volumes. With the anniversary of three-year releases here in the US, new AI features and new flagship device launches, we do expect to see stable device sales in the US in 2025.

然而，美國設備銷量持續疲軟在一定程度上抵消了這種影響。隨著美國三週年發布、新 AI 功能和新旗艦設備的推出，我們預計 2025 年美國的設備銷售將保持穩定。

But the highlight here is our nice breakthrough in our international On-Device business. Our On-Device international revenues were up 100% year-over-year, driven by strong advertiser demand and improved by execution by our sales, product, tech, and operations teams.

但這裡的亮點是我們在國際設備業務上取得了重大突破。受廣告主強勁需求的推動，以及我們的銷售、產品、技術和營運團隊的出色執行，我們的設備國際收入年增了 100%。

For our AGP business, we reported $44 million of revenues and $34 million of gross margin. The bright spots continue to be our investment in brands and our PMPs, they want to leverage our first party data to reach their existing and potential customers over our global network. That's now bearing fruit. We achieved double-digit sequential growth in this part of the business.

對於我們的 AGP 業務，我們報告的收入為 4,400 萬美元，毛利為 3,400 萬美元。亮點仍然是我們對品牌和 PMP 的投資，他們希望利用我們的第一方數據透過我們的全球網路接觸到他們現有和潛在的客戶。如今，這項努力已初見成效。我們這部分業務實現了兩位數的連續成長。

And as discussed on prior calls, this is a strategic objective for us and something we've invested in to differentiate us from other players. We are 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上所討論的那樣，這是我們的策略目標，也是我們為了與其他參與者區分開來而進行的投資。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，考慮到進入門檻高，需要付出努力才能贏得寶潔、可口可樂、迪士尼、星巴克等品牌的信任，我們正在建立護城河。

However, this new growth has been offset by transitioning from waterfall bidding to SDK bidding on our exchange. Improving our own performance advertising, leveraging our own first-party data is our most important execution improvement area for AGP business.

然而，這一新的成長已經被我們交易平台從瀑布式競價轉向 SDK 競價的轉變所抵消。改進我們自己的效果廣告，利用我們自己的第一方資料是我們AGP業務最重要的執行改善領域。

The legacy Fyber and AdColony exchange businesses were focused on waterfall bidding with third-party performance DSPs, primarily buying gaming advertising inside gaming applications. And as expected, these DSPs have been executing their own supply path optimization strategies to vertically integrate their demand connected to their own supply.

傳統的 Fyber 和 AdColony 交易業務專注於與第三方績效 DSP 進行瀑布式競價，主要購買遊戲應用程式內的遊戲廣告。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，以垂直整合與自身供應相關的需求。

And for those companies without a strong mediation footprint, it's become a largely commoditized ad tech gaming space for both iOS and Android. We saw this just 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 over our overall network and continue to invest in mediation.

對於那些沒有強大中介影響力的公司來說，它已經成為 iOS 和 Android 上高度商品化的廣告科技遊戲領域。我們幾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 競標活動來降低這種風險，增加我們在整個網路上的第一方活動，並繼續投資於中介。

We've also been able to expand our AGP supply from historically being largely dependent on game publishers to much more diversified over non-gaming. To illustrate this point, our DTX revenues on non-gaming applications have nearly doubled over the past year. In summary, our investment and focus areas are showing encouraging growth that is now showing up both in gross profit and EBITDA.

我們也能夠擴大我們的 AGP 供應，從歷史上主要依賴遊戲發行商轉變為更多樣化的非遊戲供應。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。總而言之，我們的投資和重點領域正在顯示出令人鼓舞的成長，這在毛利和 EBITDA 中都有所體現。

We needed them to show grow faster growth to offset the impacts of US device sales with our legacy supply partners and also outrun our legacy performance DSP declines in our exchange as we transition to more brand, AI machine learning or data science increase our non-gaming applications and finally improve our share of voice, our first party performance demand over our network. Those are our AGP priorities.

我們需要他們表現出更快的成長，以抵消美國設備銷售對我們傳統供應合作夥伴的影響，並且隨著我們轉向更多品牌、人工智慧機器學習或數據科學，超越我們交易所中傳統性能 DSP 的下滑，增加我們的非遊戲應用程序，並最終提高我們的聲音份額，即我們對網路的第一方性能需求。這些是我們的 AGP 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 cost to gross profit and realigning our people, process, and systems for maximum benefit.

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、傳統產品和新產品性能的提升、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，將營運成本與毛利結合，並重新調整我們的人員、流程和系統以獲得最大利益。

Barrett will provide more details on our transformation activities and his remarks. But on our last call, we discussed targeting more than $25 million of annual operating expense savings from this work, and I'm pleased to announce we're on track to accomplish that goal.

巴雷特將提供有關我們的轉型活動和他的評論的更多細節。但在我們上次電話會議上，我們討論了透過這項工作節省每年超過 2500 萬美元的營運費用的目標，我很高興地宣布，我們有望實現這一目標。

Our other goal is driving growth. As a reminder, our growth drivers are devices, products, and media relationships. And for devices our goal is to expand and deepen our device footprint. And despite the soft device sales in the US, we've been expanding our global device relationships through partners like Motorola, Nokia, ONE Store, Xiaomi and Telecom Italia Brazil and now T-Mobile here in the United States.

我們的另一個目標是推動成長。提醒一下，我們的成長動力是設備、產品和媒體關係。對於設備，我們的目標是擴大和深化我們的設備足跡。儘管我們在美國的設備銷售表現疲軟，但我們一直在透過摩托羅拉、諾基亞、ONE Store、小米和義大利電信巴西公司以及現在的美國 T-Mobile 等合作夥伴擴大我們的全球設備關係。

This new supply was a growth driver for our international RPDs improving as more supply density helps us bring more scale in our demand. 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.

這種新的供應是我們國際 RPD 改善的成長動力，因為更高的供應密度有助於我們擴大需求規模。我們的第二個成長動力是擴大我們的ODS和AGP業務的產品組合。擴展新的廣告技術和設備功能對於我們恢復成長至關重要。

On our AGP business, as mentioned earlier, our SDK bidding capabilities have been a nice product enhancement to unlock brand spends on our exchange. While we still have plenty of work to do to transform our migration to this method of bidding, SDK bidding is already showing strong growth. It's now over 70% of total impressions on our exchange compared to only 5% a year ago.

就我們的 AGP 業務而言，如前所述，我們的 SDK 競價功能是一項很好的產品增強功能，可以解鎖我們交易平台上的品牌支出。儘管我們還有很多工作要做才能完成向這種競價方式的遷移，但 SDK 競價已經顯示出強勁的成長勢頭。目前，它在我們的交易平台的總展示量中所佔比例已超過 70%，而一年前這一比例僅為 5%。

And we're diversifying away from our waterfall bidding and is now at less than 30% of our traffic compared to over 90% a year ago. Our investments in first-party data and our Digital Turbine Exchange and other features here are a major enabler to drive more brand revenues through our network.

我們正在擺脫瀑布式競價的多元化，現在我們的流量不到 30%，而一年前這一比例超過 90%。我們對第一方數據和數位渦輪交換以及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因素。

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 demand side platform or DSP. We do this today through our appreciate acquisition, which is showing renewed growth.

我們的另一個 AGP 產品成長動力將是透過我們的需求方平台或 DSP 利用我們的第一方資料和 Ignite 功能來增加我們的話語權。今天，我們透過增值收購實現了這一目標，增值收購正在呈現新的成長。

We're also beginning to partner with many other third-party DSPs that can help grow our share of voice. This all translates not into just top line revenue growth with more demand dollars, but it's a very key in driving the flywheel effects of improving revenues on our other products such as SingleTap, the Exchange and FairBid, our mediation product.

我們也開始與許多其他第三方 DSP 合作，以幫助我們擴大話語權。這一切不僅轉化為更多需求資金帶來的頂線收入成長，也是推動飛輪效應的關鍵，提高我們其他產品（如 SingleTap、Exchange 和 FairBid（我們的中介產品））的收入。

Primary product growth drivers on our ODS business are SingleTap, alternative apps and better leveraging our first party-data for our existing products. SingleTap continues to add more devices, more advertisers and better execution.

我們的 ODS 業務的主要產品成長動力是 SingleTap、替代應用程式以及更好地利用我們的第一方資料來開發我們現有的產品。SingleTap 繼續增加更多設備、更多廣告商和更好的執行。

It's early days for alternative app distribution approach, but as many saw with our PR late last year, our announcement with ONE Store, our strategy is now starting to come together. We've already distributed One Store on many millions of devices and are scaling quickly as we are live on three operators here in the US including Verizon.

替代應用程式分發方法還處於早期階段，但正如許多人在去年年底的公關活動和我們與 ONE Store 的公告中看到的那樣，我們的策略現在已經開始成形。我們已經在數百萬台設備上推出了 One Store，由於我們在美國與包括 Verizon 在內的三家營運商合作，因此正在迅速擴大規模。

Epic, Microsoft, and Pinterest are recent examples of partners taking advantage of our alternative and SingleTap distribution services. We believe one of the keys to unlocking more device supply will be the ability to offer alternative app distribution to publishers, OEm's megacap tech players and mobile operators.

Epic、Microsoft 和 Pinterest 是最近利用我們的替代和 SingleTap 分發服務的合作夥伴的例子。我們相信，釋放更多設備供應的關鍵之一是能夠為出版商、OEm 的大型科技公司和行動電信商提供替代的應用程式分發方式。

Many of you have read about all this regulatory activity around the globe in the EU, Japan, Korea, India, and also here in the US. There's building momentum to increase options for consumers and publishers on how they distribute and get applications to market. All of our hard work over the past decade has positioned us perfectly to leverage these opportunities.

你們中的許多人已經讀過有關歐盟、日本、韓國、印度以及美國的全球監管活動的文章。為消費者和出版商提供更多有關如何分發應用程式並將其推向市場的選擇的空間正在增加。過去十年的辛勤工作使我們有能力充分利用這些機會。

I also want to emphasize that the alternative app strategy is not just about new in-app payment revenues, but perhaps more importantly, be a 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% driven by in-app advertising.

我還想強調的是，替代應用程式策略不僅涉及新的應用程式內支付收入，也許更重要的是，它成為加速我們現有業務線在本財年之後發展的催化劑。今天，我們大約 50% 的業務是由用戶獲取驅動的，50% 是由應用程式內廣告驅動的。

Our app publishers want to find ways to acquire more users at lower cost with alternative users and we believe that this will also 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 the future strategy.

我們的應用程式發布商希望找到以更低的成本透過替代用戶獲取更多用戶的方法，我們相信這也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。我們目前正在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未來的策略密切相關。

In conclusion, the December quarter and current March quarter are additional data points demonstrating that Digital Turbines momentum has changed. The business is transforming both strategically and financially. We're confident we have the right strategy, partners, market opportunity, commercial model and products to have a very bright future. We're in the right space at the right time, which is critical for any technology company.

總之，12 月季度和當前 3 月季度是額外的數據點，表明 Digital Turbines 的發展勢頭已經發生了變化。該業務正在進行戰略和財務轉型。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，將擁有非常光明的未來。我們在正確的時間處於正確的空間，這對任何科技公司來說都至關重要。

And with that, I wanted to turn over to Steve Lasher to say a few words and then over to Barrett to take you through the numbers.

說完這些，我想請史蒂夫·拉舍講幾句話，然後請巴雷特向大家介紹一下這些數字。

Great. Thanks, Bill. Hi, everyone. I look forward to getting to know the Digital Turbine shareholder and analyst community moving forward. I'm thrilled to be joining Bill as part of the Digital Turbine leadership team. Digital Turbine is a highly innovative company that sits at the precipice of tremendous market opportunity and I'm eager to contribute to the effort and unlock significant shareholder value for all our stakeholders.

偉大的。謝謝，比爾。大家好。我期待在未來進一步了解 Digital Turbine 股東和分析師社群。我很高興能與比爾一起成為 Digital Turbine 領導團隊的一員。Digital Turbine 是一家高度創新的公司，面臨巨大的市場機會，我渴望為此做出貢獻並為我們所有的利害關係人創造巨大的股東價值。

Without any further ado, let me turn it over to Barrett, who will take you through and give you more color around the positive performance for December quarter.

事不宜遲，現在讓我把時間交給巴雷特，他將帶您了解並讓您更多地了解 12 月季度的積極表現。

Thanks, Steve, and good afternoon everyone. Before diving into our quarterly performance, I'd like to take a quick moment to address my transition. Reflecting on my time at Digital Turbine, I am truly humbled and grateful for the incredible journey I've had here over the past eight-plus years.

謝謝，史蒂夫，大家下午好。在深入討論我們的季度業績之前，我想花一點時間來談談我的過渡期。回顧我在 Digital Turbine 的工作時光，我對過去八年多來在這裡經歷的不可思議的旅程感到非常謙卑和感激。

What we've achieved as a company, the teams we've built and the partnerships we formed have been nothing short of remarkable. And none of this would have been possible without the dedication and hard work of our talented team members who have made it all happen, day in and day out.

我們作為一家公司所取得的成就、我們所組成的團隊以及我們所建立的合作關係都是非常了不起的。如果沒有我們才華橫溢的團隊成員日復一日的奉獻和努力，這一切都不可能實現。

A special thank you goes to Bill. Working alongside you have been a truly rewarding experience, your leadership, vision, and unwavering commitment to our team and our vision have been inspiring. And I have no doubt Digital Turbine will thrive in the years ahead. While this transition is bittersweet, I'm excited for what lies ahead for both myself personally and for Digital Turbine.

特別感謝比爾。與您一起工作是一次真正有益的經歷，您的領導力、遠見以及對我們的團隊和願景的堅定承諾一直鼓舞人心。我堅信 Digital Turbine 在未來幾年一定會蓬勃發展。雖然這種轉變是苦樂參半的，但我對我個人和 Digital Turbine 的未來充滿期待。

I will remain involved through the transition to ensure a smooth handoff. And I have full confidence that Steve will be an excellent addition to the leadership team. His experience will be invaluable as the company continues on this next wave of growth.

我將繼續參與過渡過程，以確保順利交接。我完全相信史蒂夫將成為領導團隊的優秀成員。隨著公司繼續迎接新一輪的成長，他的經驗將會非常寶貴。

Now, turning to the performance in the quarter. We were pleased to see results exceeding expectations for top line profitability and cash flow measures. Revenue of $134.6 million in the quarter was up 13% sequentially, delivering EBITDA of $22 million and generating positive free cash flow of $6.4 million in the quarter.

現在，來談談本季的表現。我們很高興看到業績超出了營業利潤和現金流指標的預期。本季營收為 1.346 億美元，季增 13%，EBITDA 為 2,200 萬美元，本季產生了 640 萬美元的正自由現金流。

In our ODS segment revenues reached $91.7 million, a 11% increase from the September quarter and down 3% compared to the same period last year. As Bill highlighted, revenue per device or RPD reached record levels across both US and international devices. This elevated RPD performance helped offset continued softer US device volumes in the quarter as we continue to be encouraged by the positive revenue growth from our international ODS efforts.

我們的ODS部門營收達到了9,170萬美元，比9月份季度成長了11%，比去年同期下降了3%。正如比爾所強調的，美國和國際設備上的每台設備收入或 RPD 都達到了創紀錄的水平。RPD 業績的提升有助於抵銷本季美國設備銷售持續疲軟的影響，我們持續受到國際 ODS 業務營收正成長的鼓舞。

Turning to our AGP business, Q3 revenues came in at $43.8 million, representing 17% sequential quarter growth. Revenues from brand spending continue to be a positive area with the rate of growth accelerating to 34% year-on-year. As a reminder, we have now lapped the comps for the legacy business lines we exited last year and Q4 fiscal '25 will be our first normalized comparison period for our core products.

談到我們的 AGP 業務，第三季營收為 4,380 萬美元，比上一季成長 17%。品牌支出收入持續保持正面勢頭，成長率加速至 34%。提醒一下，我們現在已經對去年退出的傳統業務線進行了比較，2025 財年第四季將是我們核心產品的第一個標準化比較期。

Our consolidated Q3 gross margin was 44% down from 45% in Q2 and 46% in Q3 of the prior year. This modest sequential decline in margins was primarily influenced by product mix changes in our ODS segment.

我們第三季的綜合毛利率為 44%，低於第二季的 45% 和去年同期的 46%。利潤率的環比小幅下降主要受到 ODS 部門產品組合變化的影響。

We continue our focus on pursuing expense efficiencies to maximize the profitability of our growth strategy. We remain disciplined in our cost control measures, which I will discuss further in relation to updates on our transformation program that we announced on our last call. In Q3, our cash operating expenses were $37.6 million, down 3% sequentially and 3% year-on-year, representing 28% of our revenues for the quarter.

我們持續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。我們將繼續嚴格執行成本控制措施，我將結合上次電話會議上宣布的轉型計劃的最新進展進一步討論這一點。第三季度，我們的現金營運費用為 3,760 萬美元，季減 3%，年減 3%，佔本季營收的 28%。

As I discussed in our last earnings call, we have been focused on driving a significant transformation program across the business with a target of achieving over $25 million in cost reductions. I'm pleased to report that we are tracking well against this target, having already taken actions totaling more than $25 million in annualized cost efficiencies.

正如我在上次財報電話會議上所討論的那樣，我們一直致力於推動整個業務的重大轉型計劃，目標是削減超過 2500 萬美元的成本。我很高興地報告，我們正在順利實現這一目標，並採取了總額超過 2500 萬美元的年度成本效率措施。

To break this down further, we expect the first full quarter of fiscal '25 -- '26 to be $25 million-plus take out actions to be fully reflected within that quarter. And we are continuing to drive further efficiencies that we anticipate will push us beyond our initial goals. These savings are a direct result of our ongoing efforts to streamline operations, optimize our cost structure, and leverage the platform migrations and system integrations that we completed last year.

進一步細分，我們預計 25 至 26 財年的第一個完整季度的收購金額將超過 2500 萬美元，並將在該季度內充分反映。我們將繼續進一步提高效率，預計這將使我們超越最初的目標。這些節省是我們持續努力簡化營運、優化成本結構以及利用去年完成的平台遷移和系統整合的直接結果。

In addition to realizing these cost savings, we're also retooling and enhancing key work streams and processes across the business. A prime example of this is our efforts to automate and streamline our billing and invoicing processes. This initiative is not only improving operational efficiency but is also enhancing our working capital management, which is helping to optimize our free cash flow.

除了實現這些成本節約之外，我們還在重組和增強整個業務的關鍵工作流程和流程。一個典型的例子就是我們努力實現計費和發票流程的自動化和簡化。這項措施不僅提高了營運效率，而且還增強了我們的營運資本管理，有助於優化我們的自由現金流。

As we said before, this is not just about cutting costs, it's about creating a faster, leaner, and more agile organization. We've made difficult but necessary decisions to reduce headcount across all areas and to eliminate non-strategic expenses, which are enabling us to reinvest in areas that will drive long-term growth such as our alternative app business.

正如我們之前所說，這不僅是為了削減成本，也是為了創造一個更快、更精簡、更敏捷的組織。我們做出了艱難但必要的決定，減少所有領域的員工人數並消除非策略性開支，這使我們能夠重新投資於推動長期成長的領域，例如我們的替代應用業務。

We remain committed to achieving even greater efficiencies in the quarter ahead. While we've made significant progress, we continue to challenge ourselves to identify further opportunities to improve our cost structure and exceed the $25 million target to fuel our growth plans. We expect to continue to provide further updates on our transformation efforts during our next earnings call.

我們仍致力於在未來季度實現更高的效率。在取得重大進展的同時，我們仍在不斷挑戰自我，尋找進一步的機會來改善我們的成本結構，並超越 2500 萬美元的目標，以推動我們的成長計劃。我們預計將在下次財報電話會議上繼續提供有關我們轉型工作的進一步更新。

In the quarter, we achieved non-GAAP adjusted net income of $13.7 million or $0.13 per share as compared to $15.6 million or $0.15 per share in the third quarter of fiscal '24. Our GAAP net loss was negative $23.1 million or $0.22 per share based on 104 million basic shares outstanding compared to prior year net loss of $0.14 per share.

本季度，我們實現的非 GAAP 調整後淨收入為 1,370 萬美元或每股 0.13 美元，而 24 財年第三季為 1,560 萬美元或每股 0.15 美元。我們的 GAAP 淨虧損為負 2,310 萬美元，即每股 0.22 美元（基於 1.04 億股基本流通股），而去年同期的淨虧損為每股 0.14 美元。

Moving to the balance sheet and cash flows. Our cash balance at the end of the quarter stood at $34.6 million, an increase of $2.5 million from the September quarter. Free cash flow generated in the quarter was $6.4 million driven from improvements in both business performance and continued working capital efficiency.

轉向資產負債表和現金流量。本季末的現金餘額為 3,460 萬美元，比 9 月季度增加了 250 萬美元。本季產生的自由現金流為 640 萬美元，得益於業務績效的提高和營運資本效率的持續提高。

Our debt balance remained constant to the prior quarter, ending at $408 million. As our business continues to strengthen, we would expect to pay down our revolver in quarterly increments. With steady growth and sequential EBITDA and the executed cost reduction actions I referenced earlier, we maintain ample liquidity to execute on our growth plans.

我們的債務餘額與上一季保持不變，為 4.08 億美元。隨著我們業務的不斷加強，我們期望按季分期償還循環信貸。透過穩定成長和連續的 EBITDA 以及我之前提到的執行的成本削減行動，我們保持了充足的流動性來執行我們的成長計劃。

Now let me turn to our outlook. We anticipate revenue in the range of $485 million to $490 million for fiscal year 2025 with projected non-GAAP adjusted EBITDA of between $69 million and $71 million

現在讓我來談談我們的展望。我們預計 2025 財年營收將在 4.85 億美元至 4.9 億美元之間，預計非 GAAP 調整後 EBITDA 在 6,900 萬美元至 7,100 萬美元之間

In closing, I just want to express my heartfelt gratitude to everyone at Digital Turbine, our shareholders, partners, board, and most importantly, my colleagues. Thank you for allowing me to be part of something so special. I'm looking forward to watching the company's success and I'm excited about the future ahead.

最後，我只想向 Digital Turbine 的每一個人、我們的股東、合作夥伴、董事會以及最重要的是我的同事們表達衷心的感謝。謝謝你讓我參與到如此特別的一件事。我期待著看到公司的成功並對未來充滿興奮。

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

說完這些，我現在將電話交還給接線員，開始回答問題。操作員？

(Operator Instructions)

（操作員指令）

Anthony Stoss, Craig-Hallam.

安東尼·斯托斯、克雷格·哈勒姆。

Good afternoon, guys. Welcome on board, Steve, and Barrett, best of luck. It was nice working with you through the years. Bill, I wanted to focus in on your comments about the brand, big brand names coming back to you on the advertising side. Was that because it was a seasonally strong December quarter ? What's changed that they're getting more comfort in coming back to Digital Turbine? And I had a follow-up.

大家下午好。歡迎史蒂夫和巴雷特的加入，祝你們好運。這些年來與您共事非常愉快。比爾，我想重點談談你對品牌的評論，大品牌在廣告方面帶給你回饋。那是因為 12 月是旺季嗎？？是什麼改變讓他們更放心地回到 Digital Turbine？我進行了後續行動。

Yeah. Hey, thanks, Tony. On the brand business, I'd just like to say it's a go fashion hard work. It's perseverance. It takes time to build those relationships on some of the names I mentioned in my prepared remarks. There's advertising agencies, obviously the brands themselves and a lot of people involved in earning their trust.

是的。嘿，謝謝，托尼。關於品牌業務，我只想說這是一項艱苦的工作。這就是毅力。與我在準備好的發言中提到的一些名字建立關係需要時間。有廣告公司，當然還有品牌本身，還有許多人致力於贏得他們的信任。

And so it's something we've been talking about for a long time. And it's been really nice to start seeing it showing up in the results for the business and getting approved to be the in-app choice versus a CTV or retail media, things like that. There are a lot of brand dollars are going to today for a lot of these players is something we think we can really build around right now and that we're excited about.

這是我們很久以來一直在談論的事情。我很高興看到它開始出現在業務結果中，並被批准成為應用程式內選擇，而不是 CTV 或零售媒體等。今天有很多品牌資金投入到許多這些球員的身上，我們認為我們現在可以真正地圍繞這個方向進行建設，我們對此感到興奮。

Got it. And now that you're powering the Epic alternative app store and I think they're gearing up to bring a third-party advertisers and there hasn't been much of a response from Google as far as I've seen.

知道了。現在你正在為 Epic 替代應用程式商店提供支持，我認為他們正準備引入第三方廣告商，據我所知，谷歌還沒有做出太多回應。

Is that giving confidence to other large publishers to get ready to launch their own app stores? And if so, can you maybe not share the names, but just give us a sense of quantity and when you think some of these guys can launch also using Digital Turbine in calendar 2025.

這是否會給其他大型出版商信心，讓他們準備推出自己的應用程式商店？如果是這樣，您能否不透露名稱，而只告訴我們數量，以及您認為其中一些公司何時可以在 2025 年使用 Digital Turbine 進行發射。

Yeah. So Epic has done a great job out there building awareness and really educating the market around this. So they've done an amazing job. I think you also in my prepared remarks, I had mentioned Microsoft and their Xbox group as well that we're doing some things with.

是的。因此，Epic 在提高知名度和真正教育市場方面做得非常出色。所以他們做了一件了不起的工作。我想您也在我的準備好的演講中提到微軟及其 Xbox 集團，我們正在與其合作做一些事情。

And so I think that's another good proof point and validation here. So the awareness is growing and growing. It's much stronger than what we've seen here a year ago, and now we're starting to see that growth turn into actual distribution on devices.

所以我認為這是另一個很好的證明點和驗證。因此，人們的認識正在不斷增強。它比我們一年前看到的要強勁得多，現在我們開始看到這種成長轉變為設備上的實際分佈。

I think that the key watermark I'd highlight for investors is what does the European Commission do with the Digital Markets Act and Apple's compliance of that here as we get into 2025. I think that's going to be an important moment I'd keep an eye on and perhaps a watershed moment to see a lot of people get a lot more aggressive.

我認為，我要向投資者強調的關鍵水準是，歐盟委員會將如何處理《數位市場法案》，以及蘋果在 2025 年將如何遵守該法案。我認為這將是我關注的一個重要時刻，也許是一個分水嶺時刻，許多人將變得更加激進。

And as I mentioned in my remarks, we're really uniquely positioned to take advantage of that.

正如我在演講中提到的，我們確實擁有獨特的優勢來利用這一點。

Thanks, Bill, and congrats on the return to good execution. Thank you.

謝謝，比爾，恭喜你重回良好狀態。謝謝。

Thanks, Tony.

謝謝，托尼。

(Operator Instructions) Omar Dessouky, BofA Securities.

（操作員指令） Omar Dessouky，美國銀行證券。

Hey guys, it's Arthur on for Omar. Thanks for taking my question. So Bill, I know it's still early and you guys are not providing out for next year yet. But I'm just curious like what are some of the key sort of moving pieces or dynamics you can contemplate when thinking about how 2025 would look like probably relative to this year?

嘿夥計們，亞瑟代替奧馬爾上場。感謝您回答我的問題。所以比爾，我知道現在還為時過早，你們還沒有為明年做出貢獻。但我只是好奇，當你思考 2025 年相對於今年可能會是什麼樣子時，你可以考慮哪些關鍵的變動因素或動態？

Yes. As I think about going to next year and then we'll provide an annual guide. Our anticipation would be as we get into -- on our next earnings call, as you're well aware, we start on a March fiscal year, not a calendar year.

是的。當我考慮明年的時候，我們會提供一份年度指南。我們的預期是－在我們下一次財報電話會議上，正如你們所知道的，我們將從三月的財政年度開始，而不是日曆年。

As we kind of think about what's important going into this current year, for us, it's really just building on the things we've done over the past year. And now we're in a point to really grow and scale it. So Tony had asked a question brand. That's absolutely one of those things. I spend a lot of time in my remarks talking about the importance of our data and first-party data and how we better leverage that.

當我們思考今年什麼是重要的時，對我們來說，這實際上只是基於過去一年所做的事情。現在我們已到了真正發展和擴大規模的階段。所以托尼就問了品牌一個問題。這絕對是其中之一。我在我的演講中花了很多時間談論我們的數據和第一方數據的重要性以及我們如何更好地利用這些數據。

We've made some real progress on the plumbing for that. Now it's time to take advantage of all the plumbing we've done and actually turn it into revenue and EBITDA for us in the upcoming year. I talked a lot about devices, and I was really something to keep an eye on is just our growth and devices from those operators that haven't been our legacy ones over a number of years.

我們在該管道工程上取得了一些真正的進展。現在是時候利用我們已經完成的所有管道工程並將其轉化為來年的收入和 EBITDA 了。我談了很多關於設備的問題，我真正需要關注的是我們的成長以及來自那些多年來一直不是我們的傳統運營商的設備。

And there's a lot of exciting things happening there and that's some of that growth showed up in the December quarter. And so those would be kind of the keys that I think about in terms of our growth into next year, but it is absolutely our intention to continue the momentum that we've been building here.

那裡發生了很多令人興奮的事情，其中​​一些增長是在 12 月季度實現的。所以我認為這些是我們明年成長的關鍵，但我們絕對打算繼續保持我們一直以來的勢頭。

Thanks, Bill, appreciate it.

謝謝，比爾，我很感激。

And this concludes our question-and-answer session. I would like to turn the conference back over to Bill Stone for any closing remarks. Please go ahead, sir.

我們的問答環節到此結束。我想將會議交還給比爾·斯通，請他作最後發言。先生，請繼續。

Yeah. Thanks, everyone. I appreciate you joining the call today. We'll talk to you again on our fiscal '25 fourth quarter call in a few months. Thanks and have a great night.

是的。謝謝大家。感謝您今天的加入電話會議。幾個月後，我們將在 2025 財年第四季電話會議上再次與您交談。謝謝，祝你有個愉快的夜晚。

The conference is 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。