APPS - Earnings call transcript Q4 2018

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Operator

Good afternoon and welcome to the Digital Turbine Fiscal Fourth Quarter and Fiscal Year 2018 Results Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Brian Bartholomew, Senior Vice President of Capital Markets and Strategy. Please go ahead.

Brian Bartholomew

Thank you. to conference Turbine call. welcome fiscal quarter and earnings XXXX afternoon the fourth Digital and Good

Garrison, Joining discuss Bill Barrett our on results CFO. me the are Stone, call CEO today to our and

and I Before that future beliefs, forward-looking forward-looking including expectations you today other statements would we based remarks market and get like take services, our to our statements. this forward-looking include metrics, and on projected products to anticipated will are operating remind opportunity These demand topics. assumptions, started, current

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

of our our to contemplated during will file Commission. a from those measures measures this information statements, materially performance. forward-looking Non-GAAP with actual Exchange today’s of we GAAP results to the the release these the discussion the the could For for financial well reconciliations non-GAAP substitutes refer of documents Please most by differ Also, of using are to limitations call, as refer risk please to our measures. for factors about measures and important measures. results we certain as press non-GAAP Securities cause discuss that GAAP non-GAAP comparable not

out directly my in release. an I encourage already you provided others XX have we and Lastly, me today’s that X before the that an of have on to reach be will I New Thursday, in To registered interest at everyone would turn Midtown, the remind address hosting June earnings call Day, over for event the want e-mail to Bill, Seasons quickly attending. I Many York. Analyst in next to

and the today’s part will prove customers real to presentations. hear our to have series of demonstrations testimonials chance to insightful as a of I product will new partners a think directly be and from get see where world highly investors event a it

So I of lot hope you to there. see a

Stone. without the pleasure it’s Bill to further Mr. to ado, turn Now, my call over

Bill Stone

all want against thanks us stated my Brian I joining our progress goal. remarks for Thanks, today. our and start to to with

$X the remarks Our pleased for will strategy. prior divestitures; year. areas: year. that delivered fiscal out sustainable second, are of quarter; This March our March free $X.X profitable report million solid $X a will comments full and we break the nearly build am momentum closing my our million our I first EBITDA adjusted I execution negative be demonstrating loss of the some million we quarter out into about four free comments fiscal an cash our to out adjusted been we and has against of will updates flow and some quarter to three in compares close thirdly operational and be goal flow cash current about continued business, we to strategic million will of growth products for levers. as then media; new those and EBITDA a against growth the while devices, $XX some levers with of

and advertiser transactions. We divestitures. month were two our two last the the our business for of pay publisher separate purposes. in business on done First primary announced transactions and sale content These

focus. did most strategic we First transactions for importantly, and these

has fits perfectly strong We and our our now on not XXX% leverage better operating vision. and business, margins, focused are three line one business better top with growth, strategic

allocation. capital was Second

account multiple through in team our and operations the that projects discontinued remarks excited seeing and ability gross profits and be our numbers in many delivery time the the managing operating benefits already is will our multiple our those business we on on now better take in delivery are ensure on are greater there you am faster Barrett mobile that focus communicate I platform as generates receive transactions across about our platform laser back what into proceeds future is growth, activities we we margins businesses our his are But business. sharing continued from will operations. leverage from Specifically, how to to focused that we no invested mobile confusion report, leverage.

to on all please continuing be discontinued out will the results not on my of Now, comments close performance, operations. our March operational any our operations, including note from

million to our have from this disappointing of our and the shout always particular, back year-over-year In reached or capital but doing revenue was across device all-time the I million quarterly with to $XX.X we our pleased XX% the Our to pull quarter today so, And our not $XX year quarter is ago demand results, overall both and continue modest want added give March XX% a to devices. sheet year carrier full a XX% growth out was partner for quarter to growth by flagship I sheet the revenue balance quarter-to-quarter job. to against sheet, balance balance America ago December our reducing and North know to device, annualized were platform additional there or doing the per I in materially years the largest am but in improved an quarter it million other base to a cash our I sheet. believe my despite products will many X in see in advertisers contribution improvements we with debt. increased even balance on great revenues devices. ago, by here $X.X from growth. our year-over-year the driven emergence million carrier in our particular to we RPD, want a Barrett lens the $XX.X a the team, focus finance later I expectations. initial our to in advertisers strongly team for sales just the that which if and compare discuss March the the and also This strengthen with slots in I of device growth We but on of compares also the in compares which remarks. a know is fluctuations The high per ability while or this simultaneously speaks in to added pleased as working quarter, in finish [indiscernible] quarter. revenue on occurred

let multiple and Google, platform. create harness me with others We shift once as revenue with business this to a future. Next, that any platform. growth our the effects key users to are Amazon streams growth their exponential to able in from such product and combined with end-user engaged see the companies Apple, Facebook, are growth in ability to The is network

effects our see I end-users growth once more some as want the but against software on operational to via spend products levers updates seeing more installed more add to and current device. ability have we additional advertiser at Analyst in detailed the on us, time the did these will will devices, June to create the ability demand share levers that are we next the For week, Day our progress our is three network quarter.

network Ignite First on an XXX to end metric had devices. them. scale with At demonstrate platform. the help important of from on our effects and we million is This March, devices

upcoming OEM signed have with to will many continue anticipate partners of new partners add incremental add devices additional that year. and more We in millions deals over we numerous existing our with this Asia-Pacific devices

their major into focus this is directly to operators place to United Asia, continue distribute our the versus very some in would like goal. as against robust pipeline devices close attention OEMs States. encourage Our where to we I investors through here pay progress

on products. is Secondly

install are added the than activation while install to other product, growth, the additional in primary that dynamic products strategic beginning for our these streams really and are What recurring is less now it company install able products XXXX, ago, focus X revenues new am generating upon today year, is have device. I versus strong we product years revenues. only was excited In to O&O X others. the additional contributing but Last dynamic our our are about dynamic growing words, to saw revenues. revenue. is Our it diversifying of with XX%. of monetize To-date continue show all of revenue XX% also XX% X we products that contribute

in Our been launch first This ways. new Single-Tap. launched product has has been two

launched our with a media deployed Android North It’s devices. and large American now it their operator. social the large integrated directly being have platform installer we First, with new across Single-Tap all of

one expanded other variety with is focus operators I one work are potential but also media but not of a from represent an encourage results as from most media would issues. encouraging. and I’d platform. be these a our many like investors game-changer, have post-install action Single-Tap as are, social getting through here products additional patients much also Single-Tap overall attention and in including as to excited across and about call and tremendous partners, we out operational last-mile North We I multiple opportunity The also Both as a early investors. the folders are America live, likely opportunity, of to analysts they also smart continue

and interest Our upon smart what to make based the allows organizes device into to then folder a showing recommendations on product end-users are us folders app applications in. they

The Our post-install are with product allows of in it. the also in early applications this we their encouraging have already and process returns they now engagement scaling are customers downloaded. to increase

via media week. our America. this advertising on will Analyst details measure increased We business. as all third to lever our result on relationships. on Revenue our finally, our per and North continues per is of is of at year-over-year color these growth encouraging a device. that revenue results, demonstrations additional and our We our per here in device early media revenue products provide more growth next new success Day And XX% trend device improve An

their and first to thing in These XXXX our is it we want will beginning in Yelp, fiscal of to to provide improvements results our beginning like next profitability saw up their spend platforms business on ours increase I eBay see continuing and churn turned to expand share focus, advertising where Analyst as see types year advertisers ‘XX, macro as was time. to the color on corner trends like decline Google another growth. for share of of the my in This with our week. and Day Google. Facebook the first at macro Facebook remarks actually as and conclude additional versus quarter are specific the digital are starting AccuWeather, examples spend platforms and such on We

turn fiscal future continues it Barrett ‘XX, Now, that, I to will positioned And through nicely about numbers. optimism the to is highs. and with our to XX-week at you and the my for excitement over where take it is business

Barrett Garrison

afternoon and everyone. Bill good Thanks,

we against our fiscal XXXX the year, Bill pleased very several In mentioned, achieved stated are we the together. came As with milestones way objectives.

free in EBITDA profitability adjusted the million in to First, $X.X year cash in loss as a of million flow. delivered the company and million $X.X compared of delivered prior $X

financial with we the the $XX.X Secondly, in year, sheet debt down position cash million $X.X this $XX XXXX. while of year exiting at our have gross strengthened balance position million from the fiscal million end to our of de-leveraging

We also environment controls finally and A&P am Pay divested of now enabling improvements is important the our our focus greater O&O our on report fully we growth company compliant. to made engine in and I proud businesses Sarbanes-Oxley and

of shared overview to And business. as this and higher noted. are discontinued operations to the will operations periods into to are all these drive continuing we month. allocated corporate continuing Before our My more numbers, as focus to expected business treated close margin, that refer a our O&O and today of The operations. higher financials. of comments results on publisher divestitures on all in advertising businesses presented results our for result, otherwise are pay non-core our growth are recently later go unless costs expected we divestiture detailed business content announced greater and These the

in Now, specific financial let me to turn the performance the quarter.

Growth our year-on-year in quarter. otherwise the comparisons the the Bill were revenue in on contribution platform meaningful per $XX American results are XX%. operators was across primarily drove basis up of of improvements a the on as North outlined in noted. Revenue and driven unless from device quarter devices All million our

the non-GAAP our O&O XX% Turning business on and to the the prior margin XXXX. where highlights our for year profile gross higher compares in margin QX fiscal ops both business, and our margins was XX% of continuing the same fiscal XX% for for margins, This a basis XXXX. year reporting quarter to

of in in mix While quarter $X.X the revenue this million over Accelerating to lower margin in to expansion represented less quarter compared over are same non-GAAP margin gross as negatively X% year, to year-on-year growth last revenue year. quarter X% by $X.X million the by quarter. which profit were the margins a the licensing we improving in impacted high revenue, enabled increase in the of dollars excited mix than by

pleased in rates types Let sensitive by with this me we revenue and the that about partner margins improvement to encouraged mix overall, in while are changes opportunity leave may area can and fluctuations quarter-to-quarter. expand on our continued our be margin noting and vary margins these the gross discussion from to

sales I which and sales reallocate our expenses, force invest lastly, increases controls, continuing the being operating were shared towards of as now we investments personnel in held reporting our our incur under for And controls $X.X in in all continued million Congress the business. million inclusive are O&O turning quarter. operations Also, Total a in slightly a expenses internal in expenses Mobile down approximately resources typically have to marketing of the allocated were higher internal focused for on quarter. were quarter in earlier, growth noted spend as in to discontinued event we Now, prior $X June compared basis operations. continuing since the divested operations, $X.X and expenses and fourth corporate to we as our year accounting quarter expenses our business World and in million, annual resources to in February. reminder, and sequential primarily Cash our are

quarter fiscal operating business. were year, $XXX,XXX of EBITDA our Adjusted only during in million, leverage $XXX,XXX, to breakeven the was time prior the the revenue and of total compared discontinued in in inherent inclusive same the continued over the X% $XX.X prior For a up year fourth EBITDA XXXX. in of up operations our the an the positive was was In adjusted XX% for quarter growth expenses quarter, as operations $XXX,XXX from loss demonstrating loss our year. a

a net For the as $X.X compared quarter adjusted loss loss quarter adjusted to in the compared in continuing loss $XXX,XXX Non-GAAP per year we operations fiscal million $X.X million the $X.X year. was loss per EBITDA, share share or million net including $X.XX to a of operations from total fourth XXXX, discontinued in prior the as XXXX. or loss $X.XX in of of delivered

of our sensitive loss compared loss continuing is $X.XX fiscal value for XX.X million the fourth net in the GAAP on $X.X net fair for the $X.XX weighted the stock quarter $X.X derivative per a GAAP of resulting loss to quarter share for from operations or change the million which based was from of fourth outstanding convertible XXXX. Our the Included loss from quarter loss liabilities or to of million in recorded a net impact shares share price. a of note $X.X million our highly is company’s per

liabilities a stock balance fluctuate material reported moves a on our As our impact as derivative have price financials. reminder, the GAAP will sheet and may our on

the $XX million including loss, loss. net related ops or goodwill was lines GAAP on share $X.XX $XX.X earlier. to results Our These include discontinued per divested mentioned impairment million I business

in million for quarter in the and free from flow with in $X.X sheet, year million the the to continuing cash cash $XX compared Moving operations the as a at generated we balance positive cash fiscal million prior $XX.X million negative flow year. in quarter to the fiscal finished $X.X

As I the a stated company comments, my important mentioned of this for milestone very against beginning at our is objectives. the

can fluctuations seasonally the point and from to quarter was seasonality principal were of on million benefited may revolving sheet amount convertible capital $X.X fluctuations. in quarter, while our stands the leverage these full quarterly year, strong currently capital quarter. working the million, of quarter a notes from important the we the watch to favorable collections our notes is QX by from further end December that noteholders balance The drive capital reduced it and revenue working $XX During converted the working out by in of million gross in at million at original credit $X.X the addition the reducing $X.XX the over

quarter. that, context, QX million, XXXX. operator the strong greater and the it expect year-on-year has in growth positive Bill fiscal momentum a questions. a the EBITDA the revenue positioned hand currently open of call adjusted for let $XX to noted, In representing As back Year the into that for With projected approximately leading to than me XX% us Operator? New expect we

Operator

Malouf question Mike comes first Craig-Hallum from Capital The Instructions] go Group. ahead. with [Operator Please

Mike Malouf

lot Hey, for guys. questions taking my a thanks

Bill Stone

Michael. Thanks,

Mike Malouf

how a on fiscal ‘XX? us that’s of asked guys I Can you later of, One and look your that. business contract a signed eyes out lot Verizon the the and are, lot about should get going think sense how XX% as that a things with, at Verizon, think, the of I about getting give is we with into I of over of that stages think we you

Bill Stone

is Yes. have say though the that on that not have at on Officer former today we report Roy to are obviously to Sure, will announce. Head who something we joined to Chestnutt anything any going I Mike. are M&A and our What one pleased contract specific have as Yes, and until I recently just don’t Verizon. comment we of Chief Strategy to board

to great up. continuous So They performance been my have he – you are has the addition put it’s got impressive a relationships. great some about of have heard remarks board. some some Also, in our we of

are So, regarding great our and we them. stay future good of a announcements tuned about They ours for partner feel things.

Mike Malouf

it there was quarter? March in it there Single-Tap great. really then any the licensing sound but it, didn’t any was the Okay, business And small business, like because Single-Tap was side, on

Bill Stone

large de the I There it media American the large was to associated that as as but would the company relates social little and quarter. North with minimis March bit very operator, it is call

Mike Malouf

other with visibility regards then have you expanding to gotten the at expanding beyond a take And look when into Single-Tap any you carriers? Okay. carrier, first

Bill Stone

across issues are last was as by getting by the OEM and is go little to in OEM, we are terms of carrier has with nuance environment. and characteristics Single-Tap we some actually today into it multiple a integrated mile one and we bit have process, live different right, each Yes, there in carrier carriers their

are those right we but working through multiple. live are yes, with already So now, today we

Mike Malouf

of a And give see more color just bit last I playing little just and on you the how want steal Analyst Asia coming question, lot opportunity XXXX? that thunder great. us Day to a the then could but you Okay, in your don’t out up, from

Bill Stone

Yes.

people here things the that cards, it’s One way just carrier buy devices market. of we where million they States, into it’s to the view and majority and in of their the buy is SIM are in sold it, is how call States that how go pickup them outside those United for think the material store the open in world I And investors rest of the call a United people we XXX different it, devices, the important than vast let’s devices note number.

China So, our deals whether press our even to with they other India our or ability March release. in $XXX do number we in go that OEMs those in really or are or key to expanding and device some Korea places that is quoted direct million

area per devices revenue the those So, and assumption device times, obviously can revenue for would generate company. some focus you incremental a multiply incremental that major on obviously and devices those

a area us. that’s So for major focus

Mike Malouf

all you and Okay, for helpful. next great. I will That’s see That’s me week.

Bill Stone

Mike. Thanks, Great.

Operator

Darren from next comes ahead. Please Capital Your go Partners. with question ROTH Aftahi

Darren Aftahi

Tencent, your just couple Hi, nice like with but mini work a program? Asia, that. somebody with are guys. have to taking Bill, platform then want it’s to start, per And where my got any to quarter. it’s follow-ups. a your Nice the limitations app software of not Congrats comments about a Thanks I potentially a I for see there se, cash on questions. to flow,

Bill Stone

Yes.

Tencent deal with actually So China. some outside a Tencent we where we applications of have today actually distribute

and for China, to ours as for they actually our So are a of them. looking customer growth of and catalyst a think they I scale are see platform as they outside expand potential

into So Ignite they tremendous embedding not but ours. that’s a rather embedding their opportunity, platform, we but are their software are on

other the around. way it’s So,

Darren Aftahi

helpful. That’s it. Got Understood.

enabled on a Single-Tap? with to devices quarter are mentioned follow-up I of you now of Could think those. you the that percentage last about I stats and couple talk want addressable

Bill Stone

Yes.

one we addressable view we for the for next the live Single-Tap give week. have a will got million would already now, lot on of we that a more subset Right devices So, this today. be color market XXX

we get mentioned, of kind and go I As operator-by-operator those implemented to deployed. to have

today, day. in now the turned low figures We have bigger getting and Single-Tap are each that’s bigger and devices that X of and on live already

So we quarters. we that being but it scale doing we near I are upcoming would scale, are that say the at anticipate nowhere the over

Darren Aftahi

Great. social kind is question is my other? one divestitures, And any etcetera, actually over-indexing constituents of publishers, if that platform for Single-Tap then there give the last using SKU or today, And then or North of on verticals on cost sense a among one – you OEMs using based Single-Tap was Thank can said are those business operators, though the that that mix of any outside media with then there you is are the versus the American you. North of drag legacy second America? and kind

Bill Stone

Yes, sure.

here those things. of or in in the or variance in Barrett ad of for divestitures. So relates will over turn a far keep so next Single-Tap as versus in now, see Day, or performance will banner have type United the based interstitial what the see depending on is have not are it’s one live is, as unit American Analyst variances to or are more Single-Tap of I company conversion we you, meaning things it it I in questions results, performance getting upon seeing because also America. rates the to costs, on just Yes, whether another performance, video differences outside will week you on it’s with in right and as that lot into what but geography questions North at that the Yes, are color mind your we we example, States India not we device will to North on take for it’s type we

and apps we right place the on really, started learned we way, reminds and next ago of perform We curve we when how me of that process again the the over will are about talk But kind business it years a in gotten lot perform on model the with Single-Tap. of and install week Verizon that fine-tune on And we that. is with forth. dynamic numbers a this evolution and many this same way now we so travel time this and gaming apps lot but and smarter and so learning in certain that phones some have

Barrett Garrison

Yes. some there to drags, around the we wind close be And Darren your cost will question activities. once down on transactions

I largely those winding as we some think cost, over about and of office down costs example, will months. in a a period of wind hosting months for that G&A down of as kind be few period

Darren Aftahi

Got it. you. Thank

Operator

next Sinha with question FBR. B. Riley Sameet go Please The from ahead. comes

Sameet Sinha

questions much. very Yes, you thank Couple of here.

if additions a out look there value get over you. of down, quarter, million Thank is seasonally of it’s are I how kind XX are you year, very been a us a is $XX you what device spend quarter million products what’s at went current you highlighted of minute, the and as understand your the standard that’s modeling rest strong So the question sort and making I the quarter, look the can the was devices around the and functionalities and can and proposition? product assumptions but of during marketed impression tell new your as talk obviously you you And how products as per wanted but second just gaining about folders be revenue of RPD? we off that to coming added contracts kind overall on that should look and have percentage maybe with new I kind every plus another an I of smart those the it revenue,

Bill Stone

Sure. Yes.

that second so me example it to organize about products, I us against going from games of forward. we the than modeling that chose your our AT&T talk to are folders, multiple we into a of AT&T it phone folders device take smart those in apps Yes, the put relates rather about categories. when products our with the carriers, after as through about turn forecast over how have Barrett and let to live as AT&T categories. part screening the get specific Sameet of think of to smart will could question, apps I So, to you out talk will scrolling screening those in different box many new

for either friction Google PlayStore, paid will that for your screen so of into device. within we exciting So no will that folder folder be the we home that work with one create the and can consumer. additional your that the then recommendations CPI into then we basis or of games would games The for gaming we organize AT&T. with a basis phone that’s different future will to all the that then end already pay those a ongoing life gaming us the on go your don’t on CPP games it’s then so to need types the that whether And to be those and tied is devices, device providers Single-Tap the companies way cut to and then will two thing about just have those share that it’s or download revenue you back you on

three download game month be X, XX, month you events a if X, us. month that separate revenue So, in for would

have notifications operator. have it’s event where through what a or year you creating whether are, there, is additional advertiser get on it early across we we basis with just been from and our So, our all for and all engagement on we from that you, share there is then it to but don’t daily of and generate where a then and the and apps are that. back but end-user, other nice encouraging phones with actions them or time in and And product the engagement post-install results can fine-tuning revenue have in but multiple customers, the what NIM live a sometimes have we engage that engagement to downloaded, we creates the increased are with you they seen so lift were from platform platform value, able on, operators provide we some was have add value so of our

we So scaling now early working that quite issues. about we have excited something returns and through been are just on the are

turn So as will I as far Barrett. devices, to it over

Barrett Garrison

Yes.

growth clear their what to So we partners are XXs that be where are on as the we just sure new to number device on to is low make drives as far make new are time, to obviously platform. the in flagship And Sameet, and million devices and we of – understand to can clear continue to we what coming the as timing millions impact launches what growth new to to mid today over platform sure expect grown the that well devices. in low of coming platform just of and devices that quarter. growth XX on which the beyond but mid we has we or seeing XXs to is each But kind it launch are new as grow of devices they

Sameet Sinha

Fair enough. Thank very you much.

Operator

Jon Hickman The Ladenburg next Please with comes Thalmann. question ahead. from go

Jon Hickman

got count if Thanks diluted could notes all be taking for us my what questions. your the converted? fully share you tell Barrett, would

Barrett Garrison

can’t. I

range $X.XX which is outstanding warrants – have covert from about convert price, a million, over could the So in is there million we they were to convert are a at we there and that million $X incremental be And $XX we million in $X the close a at the to $X exercised. plus excited at or a million little quarter. if would notes end of those the about $X

we notes. to bring the outstanding would addition notes million of inclusive the X plus into to the have that in total convertible related million XX the the So,

Jon Hickman

warrants So, are like or the also a around there? range $X.XX

Barrett Garrison

the correct. They the notes as that’s have effective same Yes, price themselves.

Jon Hickman

$X.XX in if So they bring those got exercised? would which

Barrett Garrison

They would of inflow That’s cash. in right. bring

Jon Hickman

Okay.

question back go So can here to these finish you cost, discontinued then out operating operations, we more expenses? expect the kind come so on of about like to the as transition of I’d some your dollars

Barrett Garrison

You to will agreements see flow net will the discontinued inflows that will then profit ops. in And reduction of company’s reported to you two discontinued into maintain won’t will to begin sharing see those part obviously those is gross these as total a of down overall and we will the company businesses that new the Those which the We be ops. which costs. wind owners. be in expenses transitioned

Jon Hickman

the a course So amount can put year? on dollar the of over that you

Barrett Garrison

Yes.

we assets are replace the positive intended of I dollars businesses like cash think So, the are when own X-year contracts free can’t significant not we course they be say think they contribution to of amount of I guidance from will we the over not agreements. giving the a to what that and they in the the generating contribution, and is on expect but are both it and are amounts that those, flow are we

Jon Hickman

so concerned not am about So sorry, am with that contribution, the I along about reduction in concerned that? I I costs the go am

Barrett Garrison

in reduction The so. cost do relating to

Jon Hickman

In yes. operating cost,

So over any what’s million are $X year can the put course – or around you another you going of save to the parameters that?

Barrett Garrison

Yes.

you you dig range chance the in you seen once the a a related to costs businesses into of have to million have will So to the would that $X.X $X K, see quarter. are these million

business costs those of drag, bit there will the but cost so eventually completely. will be a And out come of little

Jon Hickman

Okay, for thank it me. you. That’s

Barrett Garrison

Jon. Thanks,

Operator

Instructions] Ilya [Operator with Please comes Grozovsky question ahead. next The National from go Securities.

Ilya Grozovsky

Thanks.

catch the but out I I didn’t the you think from said revenues of had percentage new three did it, give you number? just products, a it,

Bill Stone

actually and was earlier AT&T the the XXs. other and XX% ago of we a like States outside Motorola, that first, operators are we some is products point there the that’s the three to our and our it’s in have United years ones with licensee our it’s some new couple and of product then it’s with XX% revenue have was at gone we now Yes, wizard dynamic that product plus for

So even up. growing revenues we though the have overall seen

seeing products other contribute line. to we to So the starting those more bottom are

Ilya Grozovsky

now? the like the look then divestitures, given Okay, headcount what’s And great.

Barrett Garrison

Yes.

be we in K close So believe I we are to will There two transitions XXX. and the the transactions further close. reported as agreements

Ilya Grozovsky

Okay, an the your number X down, that great. And be I guidance gave annual give what believe which for think the you what finally the on XXXX are obviously guys would out QX guys at ends so initial your end year, in you weeks, June for previous and thoughts? quarter used fiscal number the then are of roughly to I so thoughts

Bill Stone

Yes.

a outlook the have. in growth we We first, have with of the quarter, activities. is lot divestitures those So there evaluate good we got guidance And beat giving And that like that the when think we a activity to position – we quarter. over we to on few the on think June annual have that our will we continue quarters. the next we guided

Ilya Grozovsky

thanks. Okay,

Operator

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

Bill Stone

for hopefully the of a in will today’s and made look Great. forward for next points all talk many night. and call see ‘XX. next will first Day fiscal to everyone call again the and We our results joining quarter you York have for on our against week today. we our you, on reporting our call New earnings Thanks at Thank progress on Analyst we great

Operator

Thank you attending The today’s for concluded. presentation. conference is now

disconnect. may You now

Digital Turbine (APPS) 12 Jun 182018 Q4 Earnings call transcript