APPS - Earnings call transcript Q3 2020

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Operator

Good afternoon and welcome to the Digital Turbine Third Quarter Fiscal 2020 Earnings Conference Call. All participants will be in listen-only mode. [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

Gary. Thanks welcome call. Turbine and quarter XXXX the conference earnings to afternoon fiscal Digital third Good

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

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

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

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

will I Stone. turn Now, the call Bill over Mr. to

Bill Stone

our areas. I’m going tonight. prepared three for to call into Thanks joining Brian all thank and my remarks you breakout

the December close out First, we'll quarter.

the nonetheless Mobile sales $XX in operational revenue a Secondly, the Closing for drivers. want top we our spend why quarter, the short $X.X revenue to million some month December with to to excited I'm discussing we'll real I with of acquisition million in finally, and core finished device soft of great exceed execution our Posse. growth result EBITDA And some of EBITDA fell operators then provide November, of operational U.S. as in the expectations, current managed about the on expectations largely due color out we time time our in and number quarter. while line so

a really time, factors, Android to all to uncontrollable The give along drivers internal experience want sales key And certain couldn't happier team's over quarter within as with from a a business hustle near-term our weaker but tone. our we'll command particular aspects positive really with smartphone business such entire I Turbine set out our control. shot focus team. of time be Digital and on our execution the in to I

a particularly partners. from meaningful also December increase high $X.XX $X evident blended with was which operators, device versus prior-year RPD international growth under or just revenue the core with in record quarter quarter-over-quarter our with an per execution is of This our U.S. year-over-year and and north

advertisers continues to applications device among first demand per Pandora, Our driven performance numerous revenue by as Music, such Apple categories, games, Amazon be and across including Snap, brands, others. Plus, strong mobile and Disney

flows now, generated to quarter. you through do our efficient cash leverage and quickly in the few operating highlight Barrett during I for will But minutes. take want record a financials the

so the This is our about I inherent one model. reasons of of get business the primary excited potential

even was operating we clip than at really faster the revenues. far company evident our software we’re starting that a a leverage, Now at to of scale, cloud-based in expands is true fruits operate harvest profitability cash real a managed our mobile This as our and EBITDA million more December of grow annual to top which line despite record at an free XX% generate flow, our than of we growth. impacting headwinds quarter the a quarter, $X rate all-time

our improved I want diversification. also our markedly highlight addition operational to quarter, In products a to

diversifying extremely we're by partner, geography, by times, many our say me business, by product. it heard you've focused As on diversifying

U.S. quarter our despite years December and revenues in Cellular initial the quarter of total total over our terms over a diversification, our in combined of December which XX% Cricket devices the decline revenue with quarter, the just and and increased sold XX% XX% partner partners ago. represented year-ago two year-over-year, in AT&T, December total In compares U.S. in the approximately Verizon, to

rollouts across Helping want and on based progress. our us update in Movil. the U.S. such this with has partners, more importance unlocked and specifically installed to Samsung, than Samsung And on as XX of this diversification and to Tracfone X are our such as with given our newer international countries. Samsung, been partners America partnership, devices software I an more To-date, than million provide respect

Brazil, for in out Brazilian Brazil. market and our of We others. believe of of this line both but Movil, that Brazil highly the us America we focused calendar also And by as end in the particular, majority a market software currently Samsung have in to vast want sight our year. Telefonica, devices OEM with have call the and Samsung business Samsung. the majority only on and we’re not In and strategic has to I share market growing

optimally in expect Brazil mind, And this in areas. also like I'd that ensure launch resources our the surrounding to we'd summer. and with this in partnership we the that to invest on best a wealth continue Mexico capitalize today we America opportunities of on Latin that ground expectation to with have to we in AT&T announce the

as additional rollouts partner has diversification LG expect we platform this to approximately add partners going to million as Telefonica other the and XX as and as For progress such to context, forward, And continue continue new Mexico we such Samsung AT&T trend subscribers. partner

integration to partnership Similar focused initially summer. this We're announce global with expect contributing working we Samsung, plans go We've be open will very multiple and geographies. devices LG’s today. LG, partnership begin revenues with formally market our announced LG this to to excited partnership to our on market across on with begun already and

LG to provide note, that that reiterate is value on OEMs. can to another OEMs global solutions of partnership us several want continue In the partnerships other including hope that I picture, many of with And of additional a validation the will form big ones discussions for quarters. to Chinese our our ongoing Tier-X in the related productive have also leading we lead future we

in diversification quarter December for quarter the the products doubled Dynamic Installs year-ago December device opportunities nearly business. of you and of compared business. grow primary reached amount count, one tremendous our high our is beyond year-over-year all-time revenues all global a see And of X% to our quarter, three in total XX% our December years growth Product to quarter an our for driver newer for in terms of during is and two we the diversification ago. short, drivers know is XX% product the another the as which growth key In of of

and our of during products performance quarter. We metrics demand heightened the saw many for encouraging newer

Our Single-Tap But Notification aggregate contributors and to as of such Hub Wizard and revenue products growth. products promise. show Media continue were the largest other

of our catalyst returns discuss call out pursuit media for worth our recurring were particular, and later Posse, my products here. which revenue early The positive that I'll a In in nature the of our Mobile business remarks.

branch. believe initial catalyst first them, than a us to are measurement Single-Tap it's live this partner forward. our for with although And now longer taken integration we We our going with mobile still is growth with expected integrate

Epic to with this select Single-Tab regarding Games, including in we’re a lastly, We many business on a I future. the new strategic other Twitter, such partners to profile for Pinterest, expansion few. name partners as device names that continue expect category to growth fortnight and high want And franchise mention which work owns continuing televisions, our with the and in to product be make meaningful into progress discussions overall driver to

Mobile to to acquisition. now want turn Posse our I

talked recognize a out over Founder Posse call First, I we've and admiring and and years their of to number process. want times Mobile the Jon and Jackson, Jon the I’ve and CEO, been team.

nature a less it's this $XX over of in than amazing They've years quarter-to-quarter. building fluctuations doing revenue. doing an scratch. in job Six smartphone sensitive million business business to $XX done the with revenues and as sales from Today less a new their of such from annually million all ago, recurring was

They professionalism business. now relationships it expertise. and and to our and Moxie believe we swipe do global connecting and brought be our has that hustle, left real install and a home team something they OEMs that and Mobile to mobile operators advertisers Mobile and product amazing screen other also and not our their or the minus mobile operators content with really the understand screen well, entrepreneurial for mobile portals, have is screen, that operating home true of a level between and on screen. resonate product the products. share spirit news, with the many you off want Culturally, to screen complementary one team details. are through leverage to weather, with. the the a mobile Jon's They curates We on to great sports, that can dots scale product success our the home Posse the ecosystem, building customers application a a a an different only to products, take Posse we that App the of Hub widget Media vision a to similar his products attention and like the content, powers but content and home

recognized We're largest They works share, such T-Mobile, supply highly That monetize to source partners MetroPCS, AT&T, pay And Desk a as and with recognizable as of revenues. advertising. and names their similar few. Google, programmatic is transaction of Cricket. platform the like to Boost, Rubicon they their these products Trade reasons. many about advertisers name excited this for The And demand by and us, their Blue their then revenue way to via such

being Turbine’s shareholders. and our it to immediately dilution and First There resources. accretive cash existing fully no is with Digital is funded debt

sources. are that recurring from the Secondly dramatically therefore of overall revenues we revenue revenue XXX% our will of predictably percentage more Mobile derive Posse’s and increase recurring, combined

synergies. Third, we're the about excited revenue

along ability business. market cross-sell opportunity Mobile their device our entity improve powerhouse and per an our with products, unique of DT partners existing combined set believe conversely more as establish our more vast differentiated we the their distribution Specifically, cross the advertising on Posse’s with partners can and products partners, the of distribution revenue products to more to to to

with business for core entity to revenue of close, operator be wherever beat single to for of generate At the than hand Jon miss a to mobile revenues. we cost General one-third will more synergies total OEM Jackson acquisition responsible company distribution smooth more execution. glove our one-third fits This revenue ensure expect expect facilitate in recurring don't Mobile strategy. no as work working Post we'll a our and sources to from the Posse diversification total combined join And integration on Manager CEO, unlock than partner and possible. we should together or team of our process close,

Barrett acquisition line and top needle a growth Garrison this that, and to significantly will be numbers. And for line bottom the to Digital to let it bottom for it Turbine with transformative the take The is me a turn line over will move trajectory.

Barrett Garrison

good Bill everyone. Thanks, and afternoon,

gain from to an step this many a touched very cover strong Before of as and the acquisition like this to agreement technologies, through Posse. acquire strategic on excited access customers opportunity while Digital channels, perspective, our set I'd drive news our transaction us points quarterly And it relationship about to represents performance. I a of unique existing results, partners to Bill our a We're rationale recent with financial distribution broaden for enables tactical Turbine. on our and new accretive team, Mobile

in with based the Mobile balance share million on of of estimated with an closing all into gross stock we associated paid through acquire we agreement $XX.X a as outstanding specifics, million at certain the Now consideration refer deal our earn-out to to target what less capital XX-month revenue net profit. $XX and terms an or in revenues, purchase of total for entered Posse cash

a and of We expect consideration combination future by combined the operations cash cash balances, financing. flows the cash be existing from funded to debt

transaction, this no of consideration is for purchase be an as will this issued As all-cash the transaction. part equity

financial finalize share Posse’s as their our Mobile will based as did for transactions, a unaudited we well is we financials. the on want about fiscal our expected in accounting when the While the impact little to deal, estimates preliminary transaction which close the profile I of QX,

financial attractive free positive flows. and revenues, model, leverage sustainable and includes profitability strong all foremost, recurring resulted in First which their like we operating cash

profit For also optimistic and revenue in the XXXX, this standalone acquisition. Posse $XX both margins results. calendar-year excess million to ended with which our of I'm December are profitable about growth, gross very Mobile EBITDA accretive generated healthy

the have Jackson, Jon Posse business. Posse’s to Mobile that quickly Mobile we’re built Turbine Posse at team. forward team of CEO together And looking and I'm our all great a Mobile confident teams the Digital really the will at effectively. and come welcoming employees to

million top line results during flow to $X the strong million of the $X.X third quarter with free Now margins, delivered along cash quarter. with we results us adjusted the profit growth, and quarter, turning enabling in to in continued in our EBITDA generate expanding

As over to XX% Revenue basis and margins prior-year. million refer XX% a to experience the We reminder, with up growth continuing expanding unless versus points profit in year-over-year XXX $XX.X operations up of rate year-over-year. a otherwise noted. was representing generate my results comparisons comments gross will on non-GAAP million us quarter XX% basis $XX for in the increasing year-over-year a to enabling gross margins of

gross Our And type. be largely as being of based in is on on products the partners diversification margin sensitive and quarter-to-quarter revenue by successful from partner driven platform. can changes a mix expansion reminder and

are increase an million profits XX% $X.X the period. million third XX% prior-year. operating in expenses same the Cash as were Total expenses year-over-year, the $X.X to compared gross growing as represented $X.X operating totaled in during of million quarter

I a number Bill support we the support being focus specifically and outlined our revenues business drive future that earlier products our is operating even make investments partners incremental international highlight on will and to platform. initiatives leverage the to of within as achieved to that new

cash achieved quarter. quarter. continue to quarter XX.X% the net $X.XX the prior-year million we $X Adjusted EBITDA non-GAAP was expand share flow, income XX.X% to million margins $X.X this and net income during turning the from over prior-year or quarter Now of in XX% in the up to per and

quarter, $XX.X our the $X position is cash in million quarter positive an and the million from the to by capital increase better $X.X Free quarter prior-year the as improvement over million impressive flow compared which of totaled last million a year. $XX.X sequential quarter $X of million an to strengthening networking same

loss or $X.X share, XX.X net based Our per share. GAAP per net third weighted diluted $X.XX a shares was million QX XXXX or million compared on operations income $X.X from of quarter to continuing for outstanding $X.XX of loss million

in positive $XX.X quarter convertible notes. GAAP at balance stronger million trends the prior-year derivative quarter impact $XX.X earlier of in respect cash to and of the outstanding for cash, that we’ve debt zero much balance our liabilities related connected the a contributed income sheet, the finished on the our recorded quarter-end, from I quarter fair of loss retired net in the balance to flow with to million noted sheet the Included a change the from million previously is $X.X in sheet. up issued warrants With value to

profile, sheet of balance to strength the and Mobile the sheet. excited current With position accretive acquisition, announced we're financial our our Posse balance the about position our further bolster

expect to grow call million. let to acquisition outlook. note, $XX.X me our between range, With any Posse. the currently for million $X.X adjusted the growth $X.X from Please outlook exclusive me QX million is that, midpoint and open it Mobile of back operator to let $XX.X EBITDA Operator? of for Now hand to turn representing our the XX% at grow to of between and We of this to and expect revenue million impact questions. the

Operator

We Our ahead. Craig-Hallum. question Instructions] from will is with now Please begin the go first question-and-answer Mike Malouf session. [Operator

Mike Malouf

a there talk you Thanks. regards when carriers on they Can could could for congrats questions Mobile of into? how six that and any about then little great. carriers, had wondering Posse, growth thanks XXXX the of you my talk taking talk to cross-selling, comment much little bit, just can last in they years. a pending questions if you particularly large the with Great, you sounds bit growth a But little get on talked acquisition more you on that couple recent A growth it you are about that. bit and particular

Bill Stone

Yes, Mike. thanks

outside I'll few Yes, about one second that's existing of things they're ability excited and the part growth really performance to Let been not the the of to turn and past distribution, products for their were United companies grow would for but years. the the very our we're States, which take and and my over EBITDA of their business as well for also the both Media include take as returns us ability But over onto able early us like generating on our T-Mobile, remarks, revenue in MetroPCS encouraging. our in United question. Barrett States. prepared they've the revenue onto to synergies for already the product ability I me referenced the to products just of your the And here as distribution their the and is Hub the some part the take

products, so going ability Barrett. go growth for to they're already already And already nice tuned, for see the So to us we similar top ready situated future, Mobile sides. to turn the as leverage I’ll generate Posse’s on growth over as far it rate distribution, our we in on line the us will think some both built, to

Barrett Garrison

way, certainly with we we that a centered they've prior-year’s But the deal that growth, we over a by heard won’t they've lot and pretty Yes, on built appropriate products, when Mike. existing Posse about respect team acquisition. enable directly seen I this of in a financials specifics this on and sure growth new of orientation, quarter. yes, we're both say, think the Thanks and growth Mobile disclose lot the the growth lot our comments, have you and will to would we this long-term they've products built, that that excited comment of close will later so

Mike Malouf

how continue Okay, regards maybe are just into sounds then versus just phones It is regards we getting opportunity? the of how all will sort on we the opportunity to that to of unlocked those? do deal more to think that of comment take where Samsung now? as you great. expand And long it to And big you LG And LG, certainly how big then a on is as big you couple with now Samsung, questions like a Brazil see relationship, Samsung. percentage with of through say to and stand get

Barrett Garrison

Yes, let me LG. so first talk about

see XX% is about global of the terms size think of shipped. units in I think I of that roughly globally LG you Samsung

so this And their year. the we'll for of like looks what balance roadmap see

we Samsung In specifically momentum I has quarter-over-quarter many how this back terms or to see of go devices kind and drumbeat AT&T, over of Verizon Cricket continued and Tracfone if is steady I they've million at countries, or now growth. look I different or Samsung had I XX and referenced as nice all with how time, ramped about like really think

news XXX million they well the year. a Samsung of smartphones aware move On about as north you're great

So about mid-seven figures, the out fact into lot we devices, got of eight that, we're getting relationship. kind a in talking of figures now grow room that to approaching

clip growth And so from March nice for compared and similar expectation really a quarter forward. is we’d quarter December to September. similarly And going our see of you saw growth expect to the

like or to march switch on to by grow I'd we're But to evidenced continue a it, as in real grow nice do although and million the a go see clip, a it's and to going like So, expect by at going it both it's countries. flip XXX quarter to anything to not I the nice we're models in continue trajectory that. increase to think healthy

Mike Malouf

all That’s great. Okay, have guys. I

Barrett Garrison

Thanks Mike.

Operator

is question Please next ROTH Capital Darren go with ahead. Aftahi from The Partners.

Darren Aftahi

Thanks Hey for taking questions. the guys, good afternoon.

Posse, couple on so I'm so of to going they things on me that follow-up no presence. correct? Mobile correct Is if wrong, international Just have a there,

Bill Stone

correct. Yes, that's

Darren Aftahi

a three, is is there of your take kind how internationally this platform besides? that one, screens platform point where questions and the hard Okay, leveragability can then two, other case? is that so Number take there. couple to you why Number to actually their

Bill Stone

thinking It's of advertising within of home and is, part excitement question, thinking Mobile doing good does televisions natural And the Darren the televisions how already screens start so and last smartphones. on of here that's on of extension. part a we a that Yes, job Posse our of absolutely. about

as relationships reasons it know the ability number and to distribution absolutely scale is Posse and we as that they Mobile to for been thinking reach just have something that's that our those while that about, the So transaction the of did and years, international takes we established. this a simply the we're leverage piece it, a as the one think far of of get is of us didn't have have for them these get here that I

the that talking in port these able Congress have that And about ability to and now so that something by partners is here be the to really we're have in to few technology World international to a opportunity encouraged Mobile we're to start allow weeks. you going

terms but international that around these localization, internationalization partners. about of something absolutely we're that platform, terms minor forklift the changes some I So in excited of in of your in would of material terms a supporting consider nothing kind edges and

Darren Aftahi

it. And I if just Got more may, maybe for then two one Barrett.

cash debt. this cash just how future said have you versus for What's the and balance, flows much cash So books? hand cash finance kind of combined trying the right entity kind kind is level be to and of and on going cash of this to to understand a on

Barrett Garrison

think Yes, capital, think that about, we I working we've businesses got have here two right. positive

call it’s so positive And need it million, it's we’re given $XX to that thinking that businesses. minimal, about Darren to equation have company got a million if nice and the both a that the $X cash of so is amount conversion would cash

and range to should So million. debt million probably but of things, $XX about in you of of the still finalizing some $XX we're these think range

Darren Aftahi

helpful. that's it, Got

me. for one last Just

anything some about that repeats is of and your that this these was in? of particular out itself the kind guys of job type there already just call macro, you in in with handset. March any in So good we guidance, to Thanks. quarter? in is inherent headwinds handset of done sales as that the phase November Or contemplate you kind are then guide factored quarter questions risk a curious, kind really two of past is There able on have there one the to be I of here

Barrett Garrison

we really exceeded in guidance, surprised own called what other we plans the and in revenue month in from thought November. actually I the our December And because Yes, Darren of that both of we saw for think I sources. in devices we terms what out so of terms terms internal that of just of were specifically

and think So a month really couple November, of a of was was really driven by it November factors. I

reference shorter You and of earnings shopping last call days things. number the heard on kind those of me just the

think iOS were little the saw that promotional prior years. a we more at I activity those of think I month we've bit in play. also dynamics definitely in November, aggressive seen

two U.S. kind think performance. our drove necessarily surprising of factors those amongst didn't four But operators core December, I So we a that. disappointing in see yet

So flip. I kind view one-month of a that as

I our go that and working think we've pretty good thinking control got and partners device with basis forecast. our and closely input We're pretty command our bake over a guidance. on that forward into on definitely

Darren Aftahi

thank you. Got it,

Operator

The with Canaccord. from next Please question is Moldow Austin go ahead.

Austin Moldow

thanks taking for questions. Hi, my

The and ask first timing of give on rollout that's Can expected? an one about us I just update the that you wanted Telefonica. impact to

Barrett Garrison

Yes, we're have launching really We're that of how we go also kind integration expect in launch by but of speak countries on including America, close so first hope from as playing U.K. news some as dictate and We roll-out first that intensity will in devices we good in Telefonica. and Austin, the markets which we Brazil, of them the really speed to and then throes the and to to number with a soon. Samsung with those well Latin in there. in

Austin Moldow

currently us a to share Okay. relationship related three-way to that, that? partner walk in Samsung the adding you're and what to how through the you with mix will And relative can that change getting revenue

Bill Stone

Samsung elements without works two and how One works Samsung. devices would is of other kind be one third-parties. with then the, it there. it And so how Yes, there's

agreement will aggregate, to doing with specifics this And going we're going what be not I are overall call, on in structure. so any we In Telefonica detrimental those say not is is, are to separate. our to here aggregate but specific, of margin any mean give what I the

Austin Moldow

And worse any U.S. growth it. over that you RPD, was you the better? partners if maybe or maybe I the four can you perhaps Or from the or granular about more think can some talk there $X? for partners only Thanks. or Got of RPD share which with you get that? did drivers on speak Can said major rate the qualitatively, just of

Bill Stone

Yes, sure.

really the things. media One were media it's to is we growth able new that rates. our product coming hit referenced kick-in those higher being starting we second time, Installs. then the more And think I two revenues So to of paying for comprised from partners running the as XX% first of non-Dynamic is really

the And then so partners different we types that's And one saw. spending driver our one the just of is media more that, of other that $X across categories.

terms partners, of out think to continue In call great more general, high I a maybe do flagship devices. or on we job profile I

I we lower end our growth kind we work continue bifurcated improve have do to some to And devices that out. say lower see can to the or of terms tier in of how

that of little RPD. of a a the to But for end for headwind a aggregate something in tailwind So to would bit XG like us. see extent for example be terms we lower be may devices coming market that

Austin Moldow

Got much. very thanks it,

Operator

Please from is Lee question Krowl Riley go B. next The with FBR. ahead.

Lee Krowl

you touch synergies for there's my associated thanks just with any Could questions. Mobile taking Posse the cost base on acquisition maybe whether combination? Great, on the

Bill Stone

a talk there synergies cost-synergies hosting over cost at said, is deal. buying that? anything agreements being around we add revenue for do into this companies, but about some grow and to the Barrett AWS business want synergies may power forward of like got line is do that to in to in not high top me how that, you Yes, synergies but continue and let Barrett. deal, else go revenue power with some things investment Yes, and terms the this where With we've really edges and our be more level turn purchasing the

Barrett Garrison

acquisition model. their their growth the and they're play their lot financial operating a that avoided culture, is This you small while on like hit Bill some a in this costs But there'll model a and I is as revenue mentioned, I play. No, they've in we think got a growth be corporate like it. leverage future, of we

Lee Krowl

it. Single-Tap to And Got then switching over for Samsung.

You on with on perhaps the timeline last provide update generating an update call to there and the on Single-Tap Samsung? guys maybe announced revenue an it

Bill Stone

a Samsung actually this have in event I of down a actually in Yes, kickoff so our They're our think to, later going to, speak. we Brazil that we couple week. as having Brazil we Single-Tap launch is expect senior guys it for

just going we're with about demand on, as to it expect some kind start those sometime go and partners And excited it. bringing live local we the later this planning getting as of of So demand soon get partners. quarter. into They're

overall is have going the as by international we’re as also something we're been And just Single-Tap encouraged forward. well story

Lee Krowl

talked one for the especially sales for me, where devices? And around Got kind translating increase about those the of kind some of of we're internationally, from investments the guys kind you force, timeline it. the lower-end then just productivity of investments last making RPD to in on

Bill Stone

three Yes, investments think our of to it we and about one other three three channel it’s are types continuing of partnerships about sense. relationships. think in of where work about can our partnerships across it media really to is dimensions, all the already those areas in and with our channel self installs we're across app process and when who add to selling app is growing footprint now. And number And or investments serve tail think really agency the and making we makes in and then number two be we long where able whether leverage establishment their really right so media third-parties of the of capture think about sales is force existing we bodies automation providers. areas local strategy, We

And starting see from we're efficiencies to already that. some

these the that partnerships app as for I scaling will international some catalyst cast part the focus on and think to self the about productivity. the tail some then really a of would of in options of improved key so more drive serve especially net demand, really long countries be of wider to providers And more channel we

Lee Krowl

questions. Got my it. taking Thanks for

Bill Stone

Lee. Thanks

Operator

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

Jon Hickman

almost factoring on guidance Hey, like taking thanks questions. your have March for my appreciate my with possible in Bill, is all virus, asked there softness versus would what's on quarter? answered. But comments in been I the your and China of questions this going some

Bill Stone

help we China. China. We're China news Yes, really doing don't not thanks, good developers to focused it's is the working for any to us call a we other in strategy, a Tok what the Yes, Europe, we do on of which with presence is markets, right how America, so the U.S., and how now, we're App Chinese continue in I cetera. partnerships Latin Jon. Tik in China, international et expand outside OEMs like and to do have business out Tencent whether We're Alibaba, China that, regards lot Chinese their

focused because in So the virus, all activities focused, not regards to any there impact it's those outside of seeing are we're China. on really

expect will got macro the away, on of not right that's say just Chinese but headwind those some of also to opportunities opportunity of some the exciting lot as goes we're a those I macro virus, deals, is we that our other of of thesis got kind work on is about. a of with We some in bit little OEMs a OEM something the noise of we've the been now. but pipeline really definitely Chinese going excited

tuned. stay So

Jon Hickman

to I you're think close you then so said you think when to do close And going the this you acquisition it, know going quarter. were Okay. you

get done? quarter going it's to that take the of think to You most

Barrett Garrison

really about Yes, anything the complex close activity. there's not

And five so -- yes, we closing. the were we from away probably here think weeks

Jon Hickman

Okay.

right. So you March, that'll into put

Barrett Garrison

That's right.

Jon Hickman

Thank Okay. you.

Bill Stone

Jon. thanks Okay,

Operator

Allen Klee is question go National Please from next ahead. Securities Corporation. with The

Allen Klee

to do devices that about in you are Hello, grow? calendar or new that overall opportunity going of decline U.S. you kind how did for think believe the XG are there's how an XXXX. you to to that that phones going impact And

Bill Stone

XG increase product. XG seeing an Allen. that I lit days cities we start just their ago with thanks, more out an kind a expect few actually as article Yes, saw XXXX. up XX AT&T through to go Yes, devices just of we of

think cities devices end as to an come not expect of follow online, there's would the you're well aware, Apple as and to I you that's until come those year. device, back out this So XG expected

So it's Android. only

interest I as up, applications for and that deliver I markets the devices the carrier. definitely to light something think make benefit will because the point in video bandwidth get all operators hands up, high So to would cost the light XG the those the other as markets just that's it's us, a just is in to better

the device, onto not the the it's the customer would pushing just the carrier pulling device be marketplace. it So

XG expect seeing devices, we as like Samsung launch that’s high we to more something devices start and start more et seeing profile cetera. Motorola, And so the would LG,

Allen Klee

what new XX% that there? kind there's is products, sell like, wondering, to And try how you grew My the other you. in a penetrated is out think to can I you devices around opportunity question revenue. overall is Thank of about the we of for to number was way figure that of like

Barrett Garrison

of driving RPD that exactly apart you'd revenue are total it all equal. it's not non-Dynamic look way We look to are have we the at we devices the because portion what break the Installs. Yes, or streams really not at from created

the So away to that wouldn't new diversifying all But we've that's moving we measured these panned to streams. product how that per have direction and translate we're like device. it. I

important As for Bill said step hitting was XX% an us.

Allen Klee

Great, so thank much. you

Bill Stone

Yes, thanks Allen.

Operator

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

Bill Stone

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

Operator

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

You disconnect. may now

Digital Turbine (APPS) 10 Feb 202020 Q3 Earnings call transcript