Q4 2024 Digital Turbine Inc Earnings Call
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Operator: Good day, and welcome to the Digital Turbine Reports fourth quarter and fiscal 2024 financial results call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on a touch-tone phone. To withdraw your question, please press star, then 2. 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. Please go ahead.
Speaker Change: Good day and welcome to the digital turbine reports fourth quarter and fiscal 'twenty 'twenty four financial results call. All participants will be in listen only mode should you need assistance. Please signal a conference specialist by pressing the Starkey followed by zero.
Speaker Change: After today's presentation there'll be an opportunity to ask questions to ask a question you May Press Star then one on a touchtone phone to withdraw your question. Please press Star then two please note. This event is being recorded.
Speaker Change: I would now like to turn the conference over to Brian Bartholomew Senior Vice President of capital markets. Please go ahead.
Brian Bartholomew: Thanks, Nick. Good afternoon, and welcome to the Digital Turbine fourth quarter and fiscal 2024 earnings conference. Joining me on the call today to discuss our results are CEO Bill Stone and CFO Barrett Garrison. Before we get started, I'd 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.
Nick: Thanks, Nick Good afternoon, and welcome to the digital turbine fourth quarter and fiscal 2024 earnings conference call.
Speaker Change: Joining me on the call today to discuss our results are CEO, Bill stone and CFO Barrett garrison.
Brian Bartholomew: 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 statement. For a discussion of the risk factors that could cause our actual results to differ materially from those contemplated by our forward-looking statements, please refer to the documents we filed with the Securities and Exchange Commission. Also, during this call, we will discuss certain non-GAAP measures of our. Non-GAAP measures are not substitutes for GAAP measures.
Speaker Change: Before we get started I'd 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.
Speaker Change: Although he believes that our assumptions are reasonable they are not guarantees of future performance and some will inevitably prove to be incorrect.
Speaker Change: Except as required by law, we undertake no obligation to update any forward looking statements.
Speaker Change: For a discussion of the risk factors that could cause our actual results to differ materially from those contemplated by our forward looking statements.
Speaker Change: Please refer to the documents, we file with the Securities and Exchange Commission.
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.
Brian Bartholomew: 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. Now, we'll turn the call over to our CEO, Mr. Bill Stone.
Speaker Change: Now I will turn the call over to our CEO, Mr. Bill Stone.
William Gordon Stone: Thanks, Brian, and thank you all for joining our call tonight. I'd like to break my remarks into three areas. First, I want to close out our year-end results. Secondly, you may have seen in our outlook that we're beginning to issue annual guidance for the first time, and I want to focus the majority of my remarks on our plan to return to growth this fiscal year versus only focusing on a single quarter.
William Gordon Stone: Thanks, Brian and thank you all for joining our call Tonight.
Speaker Change: I'd like to break my remarks into three areas.
Speaker Change: First I want to close on our year end results.
Speaker Change: Secondly, you may have seen it in our outlook that we are beginning to issue annual guidance for the first time and I want to focus the majority of my remarks on our plan to return to growth this fiscal year versus only focusing on a single quarter and finally I want to provide some commentary and updates and how we're positioned to profitably grow well beyond just this fiscal year.
William Gordon Stone: And finally, I want to provide some commentary and updates on how we're positioned to profitably grow well beyond just this fiscal year. To close out Fiscal 24, we achieved $545 million of revenue, $92 million of EBITDA, and 58 cents of non-GAAP earnings per share.
Speaker Change: To close out fiscal 'twenty, four we achieved $545 million of revenue.
Speaker Change: $92 million of EBITDA, and 58 of non-GAAP earnings per share.
William Gordon Stone: In addition to the numbers, and despite a challenging operating environment, I'm proud of the team and specifically the notable progress we made on numerous investment activities that set us up for the future, including our progress on our new version of Ignite, our migration to our new hosting platform, our launch of SDK bidding, and many new back-end corporate systems consolidated in launch. We've also seen a number of tailwinds emerge that I'll discuss later in my remarks that will be catalysts for a return to growth.
Speaker Change: In addition to the numbers and despite a challenging operating environment I'm proud of the team and specifically the notable progress we made on numerous investment activities that set us up for the future, including our progress on our new version of ignite.
Speaker Change: Migration to our new hosting platform, our launch of SDK bidding and many new backend corporate systems consolidated and launched.
Speaker Change: We've also seen a number of tailwind emerge that I'll discuss later in my remarks, there'll be a catalyst for a return to growth.
William Gordon Stone: But we also continue to navigate a few short-term headwinds that are persistent in our very near-term results. Specifically, U.S. device sales continue to be challenging. As some U.S. operators have publicly reported, post-pay upgrade rates were approximately 3% of the base for the March quarter, or a run rate of 12% per year. This would imply more than an eight-year upgrade cycle, which I think all of us would recognize as unsustainable for the long term, but it is a reality in the present. Exacerbating this trend were fewer software updates on the in-life devices, which reduced monetization opportunities.
Speaker Change: But we also continue to navigate a few short term headwinds that are persistent in our very near term results.
Speaker Change: Specifically U S device sales continue to be challenging.
Speaker Change: Some U S operators have publicly reported postpaid upgrade rates were approximately 3% of the base for the March quarter or run rate of 12% per year.
This would imply more than an eight year upgrade cycle, which I think all of US would recognize is unsustainable for the long term, but it is a reality in the present.
Speaker Change: Exact exacerbating this trend where fewer software updates on the NN life devices, which reduced monetization opportunities.
William Gordon Stone: The other headwind is our ability to distribute Chinese non-gaming applications here in the United States. We're working aggressively and pivoting these spends to other international markets, but nevertheless, it does impact revenue here in the U.S. market. But our spend from non-gaming Chinese companies decreased by approximately $20 million from fiscal 23 to fiscal 24, despite those companies wanting to spend more on our U.S. supply.
Speaker Change: The other headwind is our ability to distribute Chinese non gaming applications here in the United States, We're working aggressively and pivoting. These spends to other international markets, but nevertheless, it does impact revenue here in the U S market, but our spend from non gaming Chinese companies has decreased by approximately $20 million from fiscal 'twenty three to fiscal 'twenty.
For despite those companies wanting to spend more on our U S supply.
William Gordon Stone: Our number one priority is returning the business to growth, and in order to do that, there are three growth drivers. First, we are growing our device footprint. As mentioned in our earnings press release, we anticipate an incremental 70 million devices launching with various Ignite capabilities.
Speaker Change: Our number one priority is returning the business to growth and in order to do that there are three growth drivers.
Speaker Change: First is growing our device footprint.
Speaker Change: As mentioned in our earnings press release, we anticipate an incremental 70 plus million devices launching with various ignite capabilities.
William Gordon Stone: Including in this number is expanding our relationship with Motorola that is both exclusive to Digital Turbine and is also global, including all operators here in the United States. Motorola has been shipping between 40 to 50 million devices over the past few years and is one of the few OEMs showing positive growth. Their shipments roughly approximate the amount of post-pay devices that all the U.S. operators combined are selling. In other words, this is a positive material development for us.
Speaker Change: Including this in this number is expanding our relationship with Motorola that is both exclusive to digital turbine and it's also a global including all operators here in the United States.
Speaker Change: Motorola has been shipping between 40 to 50 million devices over the past few years and are one of the few Oems showing positive growth.
Speaker Change: Their shipments roughly approximate to the amount of postpaid devices that all of the U S operators combined are selling.
Speaker Change: In other words this is a positive material development for us.
William Gordon Stone: It is early days, but we are also live with one store in Korea that will ultimately add tens of millions more devices with single-tap capability. Our pipeline remains extremely robust, as we are seeing many global operators and OEMs wanting to work with us, and we look forward to sharing more device supply opportunities in the future. In addition to these wins, we've heard some recent encouraging reports from chipset suppliers on future device volumes, which tend to be lead indicators for future demand, as well as the anniversary of the two to three-year lease plans later this year offered by U.S. operators. Thus, we are hopeful for better trends here in the U.S. into the future, but for now, it's a major henwood and is reflected in our forecast.
It is early days, but we are also live with one store in Korea that will ultimately add tens of millions more devices with single tap capability.
Speaker Change: Our pipeline remains extremely robust as we are seeing many global operators and Oems wanting to work with us and we look forward to sharing more device supply opportunities in the future.
Speaker Change: In addition to these wins we've heard some recent encourage your reports from chipset suppliers on future device volumes, which tend to be lead indicators for future demand as well as the anniversarying of the two to three year lease plans later this year offered by U S operators.
Speaker Change: Thus, we are hopeful for better trends here in the U S into the future, but for now it's a major headwind and is reflected in our forecast.
William Gordon Stone: But returning to growth through new devices on new partners, plus existing partners showing momentum, are the keys to our first growth driver. Our second growth driver is expanding our product portfolio for both our ODS and HEP businesses. Scaling new ad tech and on-device capabilities is critical to our return to growth. For our AGP business, as we've mentioned on prior calls, the last couple of years have been focused on investments and consolidating our ad tech assets into a common platform, that's now largely complete and ready to bear fruit. A specific example of this is our exchange, which we brand as the Digital Turbine Exchange, or DTX, which we have now fully consolidated from our legacy fiber and ad quality acquisitions.
Speaker Change: But returning to grow through new devices, and new partners plus existing partner showing momentum are the keys to our first growth driver.
Speaker Change: Yeah.
Speaker Change: Our second growth driver is expanding our product portfolio for both our ods and <unk> businesses.
Scaling new AD tech and on device capabilities are critical to our return to growth.
On our <unk> business as we've mentioned on prior calls the last couple of years have been focused on investments and consolidating our AD tech assets into a common platform.
Speaker Change: It is now largely complete and ready to bear fruit.
Speaker Change: A specific example of this is our exchange, which we brand as the digital turbine exchange our gtx.
Speaker Change: Which we have now been fully consolidated from our legacy fiber and add quality acquisitions.
William Gordon Stone: We believe we're uniquely positioned in mobile with the acquisitions to differentiate with brand dollars to our publishers versus our competitors that are more focused on performance dollars. And conversely, many advertisers spending on brands have not been as focused on mobile but other channels such as CTV or retail media. So we believe the combination of our mobile expertise, access to first-party data, product capabilities such as SingleTap, and our agency brand relationships and creative capabilities drives attention for advertiser audiences. It's something that we believe is going to allow us to win, and the early returns are encouraging. Our brand revenues for the March quarter were up 15% from the March quarter of last year.
Speaker Change: We believe we're uniquely positioned in mobile with the acquisitions to differentiate with brand dollars to our publishers versus our competitors that are more focused on performance dollars.
Speaker Change: And Conversely, many advertisers spending on brand has not been as focused on mobile, but other channels, such as CTV or retail media.
Speaker Change: So we believe the combination of our mobile expertise access to first party data product capabilities, such as single tap and our agency brand relationships and creative capabilities drive attention for Advertiser audience says, it's something that we believe is going to allow us to win.
And the early returns are encouraging.
Speaker Change: Our brand revenues for the March quarter were up 15% from the March quarter of last year.
William Gordon Stone: We're also now over one-third of our revenues on our DT Exchange coming from SDK bidding, which is a requirement for many brands and agencies in how they bid for audiences. And this allows us to grow our revenues, not just with direct brands but also with brand Omni DSPs like the Trade Desk and Google DB360. Our other AGP product growth driver will be increasing our share of voice for leveraging our first-party data and our Ignite capabilities via bidding.
Speaker Change: We're also now over one third of our revenues on our <unk> exchange coming from SDK bidding, which is a requirement for many brands and agencies and how they bid for audiences.
Speaker Change: And this allows us to grow our revenues not just with direct brand.
Speaker Change: But also with brand omni DSP like the trade desk, and Google D V $3 16.
Speaker Change: Yeah.
Speaker Change: Our other AGP product growth driver will be increasing our share of voice for leveraging our first party data and our ignite capabilities via bidding.
William Gordon Stone: We do this today through our Appreciate DSP acquisition, which is starting to show renewed growth. Our AI and machine learning enhancements to our new DSP, which we brand as DT Direct, will allow us to improve our bidding on our own supply, allowing us to optimize our own demand over our own supply.
Speaker Change: We do this today through our appreciate DSP acquisition, which is starting to show renewed growth.
Speaker Change: Our AI and machine learning enhancements to our new DSP, which we brand as D. T direct will allow us to improve our bidding on our own supply, allowing us to optimize our own demand over our own supply.
William Gordon Stone: We also look to partner with third-party DSPs that can help us grow our share of voice. And this all translates not just into top-line revenue growth with more demand dollars but is also key in driving the flywheel effects of improving revenues on our other products, such as Singletap, our DT Exchange, and Fairbid, our mediation product. Our primary growth drivers in our ODS business are single tap, alternative apps, and better leveraging our first-party data for existing ODS products. Single tap continues to add more devices, more advertisers, and better execution.
We also look to partner with third party DSP is they can help us grow our share of voice.
Speaker Change: And this all translates not just the topline revenue growth with more demand dollars, but it's also key in driving the flywheel effects of improving revenues on our other products such as single tap, our GT exchange and fair bid our mediation product.
Speaker Change: Our primary growth drivers at our ODM business, our single tap alternative apps and better leveraging our first party data for our existing ods products.
Speaker Change: Single tap continues to add more devices more advertisers and have better execution.
William Gordon Stone: It's Early Days for Alternative App Distribution Approach, but as we've discussed on prior calls, we will look to begin showing our progress of distribution not just on Android and Apple iOS but also alternative app versions. The interest from large tier one publishers is encouraging.
It's early days for alternative App distribution approach.
Speaker Change: But as we've discussed on prior calls we.
Speaker Change: We'll look to begin showing our progress of distribution not just on Android and Apple iOS, but also alternative app versions.
Speaker Change: The interest from large tier one publishers is encouraging it will be a growth driver for us this year.
William Gordon Stone: It will be a growth driver for us this year. And finally, we've historically been focused on leveraging our distribution footprint to drive ODS revenue. We haven't optimized our first-party data.
Speaker Change: And finally, we've historically been focused on leveraging our district distribution footprint to drive Ods revenue, we've not optimized our first party data we are beginning to do a better job here and seen increased interest from our supply partners to also leverage these insights to help advertisers drive better outcomes.
William Gordon Stone: We're beginning to do a better job here and seeing increased interest from our supply partners to also leverage these insights to help advertisers drive better outcomes. And our third growth driver is our media relationships. We are continuing to expand directly with brands such as Apple, Amazon, Starbucks, P&G, and many others, as well as their advertising agencies, which are driving 15% plus annual growth. In particular, I'm pleased to announce that GroupM, the largest media buying agency in the world under the WPP umbrella, has included us as the only global preferred partner for mobile.
Speaker Change: Yeah.
Speaker Change: And our third growth driver is our media relationships. We are continue to expand directly with brands such as Apple Amazon Starbucks P&G and many others as well as their advertising agencies that are driving 15% plus annual growth.
William Gordon Stone: This materially expands our addressable market for ad dollars, as GroupM manages over $50 billion in media buying, and our competition in mobile will not have access to this brand inventory. And as things like cookie deprecation happen in Chrome, it'll showcase our mobile app inventory as more attractive offerings to brands than other Omni SSPs that have been relying upon these identifiers in other ad channels.
Speaker Change: In particular I'm pleased to announce that group M, who is the largest media buying agency in the world under the W. P. P. Umbrella has included us as the only global preferred partner for mobile.
Speaker Change: This materially expands our addressable market for AD dollars as group and managed over $50 billion of media buying and our competition in mobile will not have access to this brand inventory.
Speaker Change: And as things like Cookie deprecation happened in chrome it'll showcase our mobile app inventory as more attractive offerings to brands than other omni ssp's that've been relying upon identifiers and other ad channels.
William Gordon Stone: We anticipate that our group and relationship will unlock media dollars from well-known brands, and we also continue to have many strategic relationships with large global game publishers. And with a tailwind of alternative app distribution, these players are increasingly attracted to Digital Turbine to develop deeper relationships. And the final media growth driver is our change in channel strategy to grow revenue per device outside the United States. Our current distribution approach is optimized to drive stronger RPDs on U.S. supply.
Speaker Change: We.
Speaker Change: Fate that our group and relationship will unlock media dollars from well known brands.
Speaker Change: And we also continue to have many strategic relationships with large global game publishers.
Speaker Change: And with a tailwind of alternative App distribution. These players are increasingly attracted to digital turbine to develop deeper relationships.
And the final media growth driver is our change in channel strategy to grow revenue per device outside the United States.
Speaker Change: Our current distribution approach is optimized to drive stronger Rpt's on U S supply.
William Gordon Stone: And the positive results we've talked about on prior calls of doubling RPDs over the past few years are a result of this. However, that has been at the expense of better execution of working with channel partners who can bring more media dollars to our international device footprint. This is controllable and a major focus area for us. To summarize, our number one priority this fiscal year is returning our business to growth with three main growth drivers.
Speaker Change: And the positive results, we've talked about on prior calls of doubling rpt's over the past few years as a result of this.
Speaker Change: However, that's been at the expense of better execution of working with channel partners, who can bring more media dollars to our international device footprint. This is a controllable and a major focus area for us.
Speaker Change: Yeah.
William Gordon Stone: The first is expanding our device footprint. The second is growth from new products such as single tap, DTX, alternative app stores, and so on. And the third is expanding our media relationships, whether that's via new relationships with behemoths like GroupM, expanding our brand dollars with brand buyers like the Trade Desk and Google, or other gaming strategic partners looking to expand their mobile gaming audience. And beyond this fiscal year, the goal is not just to return to growth, but to accelerate it.
Speaker Change: To summarize our number one priority. This fiscal year is returning our business to growth with three main growth drivers. The first is expanding our device footprint. The second is growth from new products, such as single tap Gtx Alt App stores and so on and a third is expanding our media relationships, whether that's via new relationships with behemoths like group M expanding our brand dollars of brand.
Speaker Change: Buyers like the trade desk and Google.
Speaker Change: Our other gaming strategic partners looking to expand their mobile gaming audiences.
And beyond this fiscal year. The goal is not just a return to growth, but accelerating the key driver here will be the expansion of our alternative app strategy.
William Gordon Stone: The key driver here will be the expansion of our alternative app strategy. We've launched our first alternative app distribution platform, which we brand as DT Hub, with five operators here in the United States. We're leveraging our Aptoide investment and are generating revenue today. We've also taken a minority interest in FlexShon so we can prove our partnership in building great alternative app experiences. Esflexion is a leading porting source for many alternative app stores, such as Amazon, Samsung, Huawei, Xiaomi, and many others.
Speaker Change: We've launched our first alternative app distribution products, which we brand as D. T hub with five operators here in the United States, we're leveraging our app toward investment and are generating revenue today.
Speaker Change: We are also taking a minority interest inflection. So we can prove our partnership on building great alternative app experiences.
Speaker Change: As <unk> is a leading porting source for many alternative app stores, such as Amazon, Samsung Huawei, and Xiaomi and many others and finally, we've also taken an equity stake in one store.
William Gordon Stone: And finally, we've also taken an equity stake in one store. And, as I mentioned earlier, we've just launched SingleTap on devices in Korea this month. This launch has three benefits. One is that it will allow us to leverage our DSP to provide friction-free app downloads of alternative app versions to Korean customers. And second, is a way for us to expand the scale of developed market supply versus being constrained by the issues I mentioned here in the U.S. And finally, we'll look to enhance our partnership with OneStore into the future outside of Korea, and combined with our Aptoide and FlexGen relationships, we've got the building blocks to be a dominant force in the alternative app market.
Speaker Change: And as I mentioned earlier, we just launched single tap on devices and Korea. This month.
Speaker Change: This launch has three benefits.
Speaker Change: One is it will allow us to leverage our DSP to friction free app downloads of alternative App versions to Korean customers and second is a way for us to expand scale of developed market supply versus being constrained with the issues I mentioned here in the U S.
And finally, we will look to enhance our partnership with one store into the future outside of Korea, and combined with our app toward inflection on relationships. We've got the building blocks to be a dominant force in the alternative app market.
William Gordon Stone: And as a reminder for investors, the Digital Markets Act, or DMA, launched in March in the EU, and we would encourage investors to pay very close attention to the details around this, such as how the regulators manage Apple's compliance with the DMA and the corresponding opportunities that it will present for us.
Speaker Change: And as a reminder for investors the digital markets Act or DNA launched in March in the EU and we would encourage investors to pay very close attention to the details around this such as how the regulators manage apple compliance and the corresponding opportunities that will present for us.
William Gordon Stone: I also want to emphasize that the alternative app strategy is not just about new in-app payment revenues but, perhaps more importantly, to be the catalyst to accelerate our existing lines of business beyond this fiscal year. Today, approximately 50% of our business is driven by user acquisition, and 50% is driven by in-app advertising. Our app providers want to find ways to acquire more users at a 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 this 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 to achieve current results.
Speaker Change: I also want to emphasize that the alternative App strategy is not just about new Nf payment revenues, but perhaps more importantly to be the catalyst to accelerate our existing lines of businesses beyond this fiscal year.
Speaker Change: Today, approximately 50% of our business is driven by user acquisition and 50% is driven by in App advertising.
Speaker Change: Our app providers want to find ways to acquire more users at a 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 this strategy, thereby driving more AGP revenue growth.
Speaker Change: [noise] rely today running both alternative App user acquisition campaigns and in App advertising, leveraging our technology into the current results.
William Gordon Stone: In other words, improving our present revenues and cash flow are both closely linked to the future strategy. And a key to all this will be the leadership to make it happen. I'm pleased to announce that Michael Ackerman will be joining our team as the Chief Business Officer effective June 3, reporting to Maine. Michael is joining us from Uber, where he is the General Manager of Advertising across Uber's various businesses. And before that, Michael had executive roles at Pinterest and Cardlytics.
Speaker Change: Other words, improving our present revenues and cash flow are both closely linked to the future strategy.
Speaker Change: Yeah.
Speaker Change: And the key to all of this will be the leadership to make it happen.
Speaker Change: I am pleased to announce that Michael Akkerman, who will be joining our team as the chief business Officer effective June 3rd reporting to me.
Speaker Change: Michael is joining us from Uber, where he was the general manager of advertising across your various businesses.
Speaker Change: And before that Michael had executive roles at Pinterest and <unk>.
William Gordon Stone: I'm excited to have Michael's nice blend of functional skills in product, marketing, and sales, but perhaps even more excited with his global background and cultural fit with ours. Michael's primary responsibility will be to be the lead executive returning our business to growth. And in conclusion, we've seen some nice tailwinds in our business that should be catalysts returning our business to growth later this year, with many specific drivers from devices, products, media partners, and cost optimization activities that are all in flight to accomplish this year.
Speaker Change: I am excited to have Michael was nice blend of functional skills in product marketing and sales, but perhaps even more excited with this global background and cultural fit with ours.
Speaker Change: Michael has primary responsibility will be to the lead executive returning our business to growth.
Speaker Change: Thanks.
Speaker Change: And in conclusion, we've seen some nice tailwind in our business that should be catalyst returning our business to growth later this year with many specific drivers from devices products media partners and cost optimization activities that are all in flight to accomplish this year.
William Gordon Stone: Those are the things that are going to return Digital Turbine to a growth company in the short term while we continue to preserve our very bright long-term vision. And with that, my prepared remarks are over, and I'll turn it over to Barrett to take you through the numbers. Thanks, Bill.
Speaker Change: Those are the things that are going to return digital turbine to a growth company in the short term, while we continue to preserve our very bright long term vision.
Barrett Garrison: And with that concludes my prepared remarks, and I will take it over to Barrett to take you through the numbers.
Barrett Garrison: Thanks, Bill, and good afternoon, everyone. For the fiscal year 2024, we reported $544.5 million in revenue, down 18% year-on-year, and generated $92.4 million in adjusted EBITDA, or 17% of revenue, and delivered $60.3 million in adjusted net income, or 58 cents per share, as compared to $1.15 per share in the prior While fiscal year 2024 presented its share of challenges, we are pleased to share that our strategic initiatives are gaining traction and setting the foundation for future growth, and I'll cover some of those highlights later within my remarks.
Barrett Garrison: Thanks, Bill and good afternoon, everyone for the fiscal year 2024, we reported $544 5 million in revenue down 18% year on year and generated $92 4 million and adjusted EBITDA or.
Barrett Garrison: Or 17% of revenue and delivered $63 million and adjusted net income or <unk> 58 per share as compared to $1 15 per share in the prior year.
Barrett Garrison: While fiscal year 2024 presented its share of challenges. We are pleased to share that our strategic initiatives are gaining traction and setting the foundation for future growth and I'll cover some of those highlights later with my remarks.
Barrett Garrison: Now turning to the financial performance in the quarter, total revenue of $112.2 million in the quarter was down 20% year-on-year. On-device solutions, our ODS segment, revenues of $78 million were slightly below our expectations, largely due to weaker U.S. upgrade rates that Bill described in his remarks.
Barrett Garrison: Now turning to the financial performance in the quarter total revenue of $112 2 million in the quarter was down 20% year on year.
Speaker Change: Device solutions or Ods segment revenues of $78 million were slightly below our expectations largely due to weaker U S upgrade rates that bill described in his remarks.
Barrett Garrison: In our app growth platform, our AGP business, Q4 revenues of $33.8 million, performed generally in line with our guidance expectations. We saw improving signs of spin levels, particularly within brands, as evidenced by greater than 15% year-over-year revenue increases. The Q4 results in our AGP business reflect the impact of sunsetting certain legacy business lines in early January of this year. I reiterate Bill's earlier comments that despite the near-term headwinds, we're encouraged by the completion of our platform consolidation and expect these efforts to be an important catalyst for our future revenue growth.
Speaker Change: And our outgrowth platform or <unk>.
G. P business Q4 revenues of $33 8 million performed generally in line with our guidance expectations.
We saw improving signs of spend levels, particularly within brand evidenced by greater than 15% year over year revenue increases.
Speaker Change: The Q4 results and our AGP business reflects the impact of sunsetting certain legacy business lines in early January of this year.
I would reiterate bill's earlier comments, despite the near term headwinds we are encouraged by the completion of our platform consolidation and expect these efforts to be an important catalyst for our future revenue growth.
Barrett Garrison: Before leaving revenue, I would point out that we completed sunsetting certain legacy business lines, marking an important milestone towards our priority of returning to growth and strategic focus. Looking ahead, we anticipate the March quarter revenues to be a period of normalization, free from the transitional impacts of our integration efforts. Drawing from historical seasonality trends, we anticipate modest sequential growth in the June quarter.
Speaker Change: Before leaving revenues I would point out we completed sunsetting certain legacy business lines, marking an important milestone towards our priority of returning to growth and strategic focus.
Speaker Change: Looking ahead, we anticipate the March quarter revenues to be a period of normalization free from the transitional impact of our integration efforts.
Speaker Change: ROIC from historical seasonality trends, we anticipate modest sequential growth in the June quarter.
Barrett Garrison: Our Q4 gross margin was 46%, which was up from 44% in Q4 from the prior year. The improvement in margin year on year was largely driven by favorable product mix shifts, where we experienced an increase in the mix towards certain higher margin products. While MIX had a positive impact, we also experienced improved margins year-on-year across both ODS and AGP segments. Furthermore, with our commitment to financial resilience, we proactively pursued expense efficiencies to maximize the profitability of our growth strategy and remain disciplined with expense plans. Cash operating expenses were $39 million in the quarter, decreasing 5% from the prior year, and represented 35% of our revenues in the quarter.
Speaker Change: Our Q4 gross margin was 46%, which was up from 44% in Q4 from the prior year improve.
Speaker Change: Improvement in margin year on year was largely driven by favorable product mix shifts, where we experienced an increase in the mix towards certain higher margin products.
Speaker Change: While mix had a positive impact we also experienced improved margins year on year across both ods and <unk> segments.
Speaker Change: With our commitment to financial resilience, we proactively pursued expense efficiencies to maximize the profitability of our growth strategy and remain disciplined with expense plans.
Speaker Change: Cash operating expenses were $39 million in the quarter decreasing 5% from prior year and represented 35% of our revenues in the quarter.
Barrett Garrison: Through our strategic investments, we've integrated our technology platforms, paving the way for enhanced operational synergy, scalability, and unlocking the full potential of our organization. We're encouraged to see that our efforts are yielding tangible results.
Speaker Change: Through our strategic investments, we've integrated our technology platforms paving the way for enhanced operational synergies scalability and unlocking the full potential of our organization.
Speaker Change: We're encouraged to see that our efforts are yielding yielding tangible results. One notable area of progress is in our cloud computing expenses, where we've achieved important cost reductions and expenses are now declining as a percent of revenue a testament to the effectiveness of our initiatives and optimizing cost and driving operations.
Barrett Garrison: One notable area of progress is in our cloud computing expenses, where we've achieved important cost reductions, and expenses are now declining as a percent of revenue. This is a testament to the effectiveness of our initiatives in optimizing costs and driving operational efficiency. Turning to profitability, our adjusted EBITDA of $12.3 million in the quarter came in line with our guidance expectations. Given the inherent operating leverage in our business model, we expect the active focus on expense measures we are taking will strengthen the platform as we return to growth and enable a greater portion of those dollars to fall to the bottom line.
Speaker Change: Efficiency.
Speaker Change: Turning to profitability, our adjusted EBITDA of $12 3 million in the quarter came in line with our guidance expectations given the inherent operating leverage in our business model. We expect the active focus on expense measures. We are taking will strengthen the platform as we returned to growth and enable a greater portion of those dollars to fall to the <unk>.
Speaker Change: Bottom line.
Barrett Garrison: In the quarter, we achieved non-gap adjusted net income of $12.6 million, or $0.12 per share, as compared to $13.6 million, or $0.14 per share, in the fourth quarter of 2023. Additionally, during the period, we reported a higher than expected non-recurring tax benefit. Also, as compared to the prior year, we incur greater interest expense driven by rising rates partially offset by lower outstanding debt. Our gap net loss of $2.32 per share in the fourth quarter reflects a non-cash goodwill impairment charge of $1.86 per share or $189.5 million in our AGP business. This charge was primarily driven by recent market-based factors, such as the decline in our stock price.
In the quarter, we achieved non-GAAP adjusted net income of $12 6 million or 12 cents per share as compared to $13 6 million or 14 cents per share in the fourth quarter of 2023.
Speaker Change: During the during the period, we reported higher than expected nonrecurring tax benefit.
Speaker Change: Also as compared to prior year, we incurred greater interest expense driven by rising rates, partially offset by lower outstanding debt.
Speaker Change: Our GAAP net loss of $2.32 per share in the fourth quarter reflects a noncash goodwill impairment charge of $1 86 per share or $189 5 million in our AGP business. This charge was primarily driven by recent market based factors.
Speaker Change: And by the decline in our stock price.
Barrett Garrison: There was no change to Goodwill for the ODS reporting unit, and we remain optimistic about the AGP segment, given the ad tech enhancements we've made to enable future growth. Our cash balance at the end of the quarter was $32.9 million; free cash flow from operations of negative $15.6 million was temporarily impacted primarily due to delays in invoicing time. While we've completed our back office system implementation to a single accounting platform that we have discussed on prior calls, our billing system migration impacted certain AGP invoicing timing delays in the quarter, resulting in a temporary negative impact on cash flows and working capital in the quarter of approximately $15 million.
Speaker Change: There was no change to goodwill for the Ods reporting unit and we remain optimistic about the AGP segment, given the AD Tech enhancements, we've made to enable future growth.
Our cash balance at the end of the quarter was $32 9 million.
Speaker Change: Free cash flow from operations of negative $15 6 million was temporarily impacted primarily due to delays in invoicing timing, while we've completed our back office system implementation to a single accounting platform that we have discussed on prior calls our billing system migration impacted.
Speaker Change: A G P invoicing timing delays in the quarter, resulting in a temporary negative impact on cash flows and working capital in the quarter of approximately $15 million.
Barrett Garrison: We have corrective actions in motion and expect to see our receivable balance and working capital return to normal levels in the coming months, and we expect to return to generating positive free cash flow in the back half of the calendar year. Additionally, during the period, we completed and funded a $10 million strategic equity investment in our one-store partnership. Our debt balance ended the quarter at $385 million, drawn on our revolving credit facility.
Speaker Change: We have corrective actions in motion and expect to see our receivable balance and working capital returned to normal levels in the coming months and expect to return to generating positive free cash flow in the back half of the calendar year.
Speaker Change: Additionally, during the period, we completed and funded a $10 million strategic.
Speaker Change: Equity investment and our one store partnership.
Our debt balance ended the quarter at $385 million drawn on our revolving credit facility and as our business strengthens we would expect to pay down our revolver and larger quarterly increments.
Barrett Garrison: And as our business strengthens, we would expect to pay down our revolver in larger quarterly increments. Now, let me turn to our outlook. Looking ahead to our growth roadmap, we are optimistic about the prospects for Digital Turbine. Starting this fiscal year, we are now providing annual guidance.
Speaker Change: Now, let me turn to our outlook.
Speaker Change: Looking ahead to our growth roadmap, we are optimistic about the prospects for digital turbine.
Speaker Change: Starting this fiscal year, we are now providing annual guidance.
Barrett Garrison: This move is aimed at informing our stakeholders about our longer-term growth roadmap, intentions, and expectations. With the recent addition of new global device supply and the ongoing enhancements to our platform, we are well-positioned to capitalize on emerging opportunities and drive top-line growth and free cash flow. We expect revenue to be in the range of $540 to $560 million for the fiscal year 2025, reflecting our confidence in the underlying trajectory of the business and the momentum we are seeing in the market.
Speaker Change: This move is aimed at informing our stakeholders about our longer term growth roadmap intentions and expectations with the recent addition of new global device supply and the ongoing enhancements to our platform, we are well positioned to capitalize on the emerging opportunities and drive topline growth and free cash flows we.
Speaker Change: Expect revenue to be in the range of $540 million to $560 million for the fiscal year 2025.
Speaker Change: Reflecting our confidence in the underlying trajectory of the business and the momentum we're seeing in the market.
Speaker Change: Additionally, we project non-GAAP adjusted EBITDA of between $85 million and $95 million underscoring our commitment to driving operational efficiency and delivering value for our shareholders.
Barrett Garrison: Additionally, we project non-gap adjusted EBITDA of between $85 million and $95 million, underscoring our commitment to driving operational efficiency and delivering value for our shareholders. In closing, we are working diligently to ensure that we position the company for growth in 2024 and beyond. Our business is seeing encouraging signals and evidence implying growth on the horizon, fueled by some of the announcements and growth catalysts that Bill referenced earlier. Operationally, we have made significant strides in modernizing key product functionality and back office system infrastructure and enhancing our leadership.
Speaker Change: In closing we are working diligently to ensure that we position the company for growth in 2024 and beyond our business is seeing an encouraging signals and evidence implying growth on the horizon fueled by some of the announcements and growth catalyst that bill referenced earlier.
Speaker Change: Operationally, we have made significant strides in modernizing key product functionality and back office system infrastructure and enhancing our leadership team. These initiatives are integral to our long term success and will enable us to unlock growth potential and enhance shareholder value.
Barrett Garrison: These initiatives are integral to our long-term success and will enable us to unlock growth potential and enhance shareholder value. Furthermore, the recent wins on the media and advertiser sides are proof points that our newly re-engineered ad tech platform is now performing at a level at which it is well positioned to gain market share. As we look ahead to fiscal year 2025 and beyond, we are confident in our ability to capitalize on emerging opportunities, drive top line and free cash flow growth, and deliver sustainable long-term value for our shareholders, and we are excited about the journey ahead. With that, let me hand it back to the operator to open the call to questions. Operator.
Speaker Change: Furthermore, the recent wins on immediate advertiser side are proof points that our newly Reengineered AD Tech platform is now performing at a level at which is well positioned to gain market share.
Speaker Change: As we look ahead to fiscal year 2025, and beyond we are confident in our ability to capitalize on emerging opportunities drive top line and free cash flow growth.
Speaker Change: And deliver sustainable long term value for our shareholders and we are excited about the journey ahead with that let me hand, it back to the operator to open the call for questions operator.
Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the. If at any time your question has been answered, and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. The first question comes from Omar Dessouky with Bank of America. Please go ahead.
Speaker Change: Thank you.
Speaker Change: We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.
You are using a speakerphone please pick up your handset before pressing the keys.
Speaker Change: Anytime you question has been addressed and you would like to withdraw your question. Please press Star then two.
Speaker Change: At this time, we will pause momentarily to assemble our roster.
Speaker Change: The first question comes from Omar <unk> with Bank of America. Please go ahead.
Omar Dessouky: We saw a news article today saying that T-Mobile is about to acquire U.S. Cellular. I think U.S. Cellular is one of your biggest, is one of your customers, but T-Mobile's working with one of your competitors. So do you foresee any impact to your business? And how should we think about the potential opportunities and risks relating to the market? National Merch.
Omar: Hi, Thanks for taking my question.
Omar: We saw a news article today, saying that T mobile is about to acquire U S. Cellular.
Speaker Change: U S. Cellular is one of your biggest with one of your customers that T Mobile's working with one of your competitors.
Speaker Change: Do you foresee any impact to your business.
Speaker Change: And how should we think about the potential opportunities and risks related to the merger.
Speaker Change: Actual merger.
William Gordon Stone: Yeah, sure, Omar. This is Bill.
William Gordon Stone: Yeah sure sure Omar this is bill.
William Gordon Stone: I think that this is something that is.
Speaker Change: I read it today is that it's going to be about a year plus away from from closing so it's not anything that's imminent.
Speaker Change: It has to go through a bunch of regulatory reviews.
William Gordon Stone: You know, I think that this is something that is, what I read today is that it's going to be about a year plus away from closing, so it's not anything that's imminent. It has to go through a bunch of regulatory reviews. But with that being said, U.S. Cellular has been a fantastic partner for us. You know, they have the highest revenue per device of any of our partners today, and they've been fantastic for us.
Speaker Change: That being said USA there has been a fantastic partner for us for ours.
Speaker Change: They they do our highest revenue per device of any of our partners today.
And they've been fantastic for us.
Speaker Change: There are probably about 1% to 2% of our revenue.
Speaker Change: I look forward to having that as an opportunity to put on their zero on it.
Speaker Change: Hopefully T mobile can see the great debt performance had been able to generate with us.
Omar Dessouky: And if I could just ask one follow-up question, Apple has begun enforcing its New Privacy Manifest Policy at the beginning of May. We're wondering if you've heard anything from clients. I know there's a lot of focus on Android, usually. But to the extent you see anything from the Apple side, or just read through it, would be really helpful from some of the customers.
Speaker Change: Okay, and if I could just ask one follow up.
William Gordon Stone: [inaudible]
Speaker Change: Apple had begun enforcing.
Speaker Change: Privacy manifest policy at the beginning.
Speaker Change: Hey.
Speaker Change: Wondering if you've heard anything from clients I know, there's a lot of focus on.
Speaker Change: So what you're saying.
Speaker Change: Okay.
Speaker Change: From the Apple Filers this week.
Speaker Change: Yes.
Speaker Change: Customers.
Speaker Change: Really helpful. Thanks.
Speaker Change: Yes.
Speaker Change: Each of these items.
William Gordon Stone: Yeah, yeah, sure. So yeah, I think as far as Apple's new pricing goes, I think it really depends upon, you know, what kind of, you know, app developer you are. I think for app developers that have We're kind of mid to hardcore gaming audiences where maybe there are fewer numbers of people, but they spend more per person. I think those changes are pretty much a non-event. I think for lower-end, casual, hyper-casual games that are advertising-based and may not generate a lot of revenue per user, it's prohibitive.
Speaker Change: Yeah, Yeah sure. So I think as far as far as apples new pricing goes I think it really depends upon what kind of App developer you are I think for App developers that have.
Speaker Change: You won't kind of mid to hardcore gaming audiences, where maybe they are there fewer numbers of people, but they spend more per person I think the changes are pretty much more of a non event.
Speaker Change: For lower end.
Speaker Change: Casual hyper casual games that are advertising base may not generate a lot per user.
Speaker Change: It's prohibitive.
William Gordon Stone: So I think our expectation, Omar, is that we're going to see the EU regulators weigh in on this later this year. And I think we'll see a lot of downstream impacts from that, whether that's from telcos, whether that's from OEMs, whether that's from publishers, whether that's from megacap players. I think you're going to see a lot of downstream impacts depending upon how the EU rules on some of the pricing moves they've made as part of the DMA.
Speaker Change: So I think our expectation Omar is that we're going to see the EU regulators weigh on it weigh in on this later this year and I think we will see a lot of downstream impacts from that whether that's.
Speaker Change: From telcos, whether that's from Oems, whether that's from publishers, where that's from Mega cap players.
Speaker Change: Are you going to see a lot of downstream impacts depending upon how the EU rules on some of the pricing moves you've made as part of the DNA.
Omar Dessouky: Okay, thanks a lot guys. I look forward to catching up later.
Speaker Change: Okay. Thanks, a lot guys I look forward to catching up later alright.
Speaker Change: Alright. Thanks.
Speaker Change: Yeah.
Darren Paul Aftahi: The next question comes from Darren Aftahi with Ross. Please go ahead.
Speaker Change: The next question comes from Darren <unk> with Roth. Please go ahead.
William Gordon Stone: Hey guys, good afternoon.
Darren Paul Aftahi: Hey, guys. Good afternoon, Bill you talked about some traction with tier one publishers on the open App distribution side could you indulge us a little bit more about kind of the traction you're seeing and I think you said there may be some contribution this fiscal year like how material was that.
Darren Paul Aftahi: Billy, talk about some traction with tier one publishers on the open app distribution side. Could you indulge us a little bit more about the kind of traction you're seeing? And I think you said there may be some contribution this fiscal year, but how material is that?
William Gordon Stone: Yeah, so yeah, thanks, Darren. Yeah, so yeah, as far as tier one publishers, you know, we're seeing great relationships with some of the gaming folks. I'd call out King, I'd call out Playtica, I'd call it Play Simple, I call it Scopely, you know, it's kind of some specific publisher names that we're working with in the alternative space. And so, you know, as they are looking to diversify away from paying a 30% tax to Apple or Google, obviously, alternative distribution is something that's highly attractive to them, given it's the single biggest line item on their P&L right now. So, you know, we look forward to being good partners with companies like that and helping them achieve their strategic goals.
Speaker Change: Yes, so yes, thanks Darren.
Speaker Change: As far as tier one publisher as you were seeing great relationship with some of the gaming folks I'd call. It King I'd call out play ticker I'd call out.
Speaker Change: Called place simple my caused scope Lee.
Speaker Change: This is kind of some specific publisher names that we're working with in the alternative space.
Speaker Change: So as they are looking to diversify away from paying a 30%.
Speaker Change: <unk> to Apple or Google, obviously alternative distribution something is highly attractive to them given it's the single biggest line item on their P&L right. Now so we look forward to being good partners with companies like that and help them achieve their strategic goals.
Speaker Change: Yeah.
Darren Paul Aftahi: Great, maybe if we could ask one more. Barrett, you made some commentary about sequential improvement in June relative to the annual guide. I guess maybe I missed or didn't hear correctly if you said anything specifically about the cadence in March. I know you guys historically have always given one quarter out guidance and given sort of 30 days left in the quarter. I'm just kind of curious if you have any thoughts there.
Speaker Change: Great and maybe if I could ask one more.
Barry you made some commentary about.
Speaker Change: Financial improvement.
Speaker Change: In June relative to the annual guide I guess, maybe I missed it I didn't hear correctly. If you said anything specifically about the cadence of margin that you guys historically have always given.
Speaker Change: One quarter out guidance, and given where sort of 30 days left in the quarter I'm just kind of curious if you have any thoughts there.
Barrett Garrison: Yeah, Darren, you know, our focus has been, we've been wanting to provide annual guidance for some time now. I think this is a good opportunity. I also wanted to focus on, you know, there can be ins and outs in the quarter, and we thought this would simplify for stakeholders our approach and intent for growth. I also, you'll notice, I did comment on some seasonality, you know, flattest to modest growth sequentially between the June and March quarters.
Speaker Change: Yes Darren.
Darren: You know our focus has been we've been wanting to provide annual guidance for for some time now and I think there's a good opportunity also wanted to focus on there can be ins and outs in the quarter and we thought this would simplify for stakeholders of.
Darren: Our approach in it for growth.
Darren: Also you'll you'll notice I did comment on some seasonality.
Darren: Flattish to modest.
Darren:
Darren: Growth sequentially between the June and March quarter.
Darren Paul Aftahi: Got it. Great. Thank you.
Speaker Change: Got it great. Thank you.
Operator: Again, if you have a question, please press star then 1. The next question comes from Tim Nolan with Macquarie. Please go ahead.
Speaker Change: Again, if you have a question. Please press Star then one.
Speaker Change: The next question comes from Tim Nolan with Macquarie. Please go ahead.
Timothy Kelly Horan: Hi Guys, thanks for taking the question. I'd like to ask about things on the AppGrowth side, where you had said previously that some of the longer tail customers that you were kind of not bringing on as part of your consolidation efforts would be, I think you had said, would be kind of cycling out as lost business around this time, around early 2025, fiscal 25. I was wondering if you could update us on that and maybe comment a bit further on, you know, it's been a very interesting market with the two biggest players in the space, AppLovin and Unity, reporting very different types of results in ad tech. I just wonder if you could talk a bit about your positioning versus them and kind of what you're seeing in terms of demand from your customers to use your DT Exchange and other Thank you.
Timothy Kelly Horan: Hi, guys. Thanks for taking the question I'd like to ask about.
Speaker Change: On the macro side, where you had said previously some of the longer tail of customers.
Speaker Change: That you were.
Timothy Kelly Horan: Not bringing on as part of your consolidation efforts would be I think you had said would be kind of cycling out of Las Vegas around this time kind of early 2025 25, I'm just wondering if you could update us on that.
Timothy Kelly Horan: And maybe comment a bit further on its been a very interesting market with the two biggest players in that space and plumbing and unity reporting very different types of results and AD Tech I'm. Just wondering if you could talk a bit about your position.
Timothy Kelly Horan: Positioning versus them and kind of what you're seeing in terms of demand from your customers to use your DTA exchange and other services.
William Gordon Stone: Yeah, thanks, Tim. Yeah, so you're referencing the first part of your question around the deprecation of our ad colony exchange. And the ad colony exchange had many, many tens of thousands of publishers and a very long tail of publishers, some of which were making hundreds of dollars or thousands of dollars. And it didn't make economic sense for us to go out and migrate a lot of those legacy publishers over to our consolidated digital turbine exchange. And so we're rolling through those comps right now; it will no longer be a negative comp for us like it has been in the rearview mirror.
Timothy Kelly Horan: Yes, I think Tim yes, so youre referencing in the first part of your question around the deprecation of our AD colony exchange and yes. The icon exchange had many many tens of thousands of publishers in a very long tail of publishers some of which were doing hundreds of dollars of thousands of dollars and it didn't make economic sense for us to.
Timothy Kelly Horan: Go out and migrate a lot of those legacy publishers over to our consolidated digital turbine exchange. So we're rolling through those comps right now so as we go forward in the year.
Timothy Kelly Horan: Youll see that.
Timothy Kelly Horan: No longer be a negative comp for us like it has been.
Timothy Kelly Horan: The rear view mirror, but with that being said the reason we did that is we wanted to consolidate around digital turbine exchange and we believe we've got something pretty special and unique here not just with our performance advertisers, but also with brand advertisers as I mentioned in my remarks.
William Gordon Stone: But with that being said, the reason we did that was we wanted to consolidate around Digital Turbine Exchange. And, you know, we believe we've got something pretty special and unique here, not just with our performance advertisers but also with brand advertisers. As I mentioned in my remarks, being certified by GroupM as a global distribution partner is a really big deal in terms of unlocking brand dollars where those brand dollars have historically gone to other channels, whether that's retail media or CTV or other places on the web or what have you.
Timothy Kelly Horan: Could be <unk> certified by group them as a global distribution partner, that's a really big deal in terms of unlocking brand dollars.
Timothy Kelly Horan: Now those brand dollars has historically had gone to other channels, where that's retail media or CTV or other places on the web or what have you. So now in terms of in App advertising for mobile that's something that's unique for us and that's something our competitors do not have.
William Gordon Stone: So now, in terms of in-app advertising for mobile, that's something that's unique for us, and that's something our competitors do not have. So if you talk to most game publishers and others out there, they'd much rather see a P&G ad or a Coca-Cola ad than an ad for a competing game that's trying to take their users. We think this is something that is very sticky and something that has now allowed us to consolidate around in terms of differentiating our exchange versus others that are out in the marketplace. So that's something we're pretty excited about.
Timothy Kelly Horan: So if you talk to most game publishers and others out there you know they'd much rather see.
Timothy Kelly Horan: P&G at or Coca Cola ad than an AD for competing game I'm just trying to take their users. So.
Timothy Kelly Horan: We think this is something that is very sticky and something that as of now allowed us to consolidate around in terms of differentiating our exchange versus others that are out in the marketplace. So that's something we're pretty excited about.
Timothy Kelly Horan: Okay, so could I just follow up on that point, then, Bill? So is the momentum and the growth, return to growth you're talking about for next year, is that maybe more coming from those advertisers, or do you also see the gaming advertisers using the platform more? Oh, yeah, yeah, we'll continue to work with our performance and gaming advertisers, but you'd ask the question on differentiation, you know, and we feel like that, you know, the brand dollars rolling through, whether those are direct brand dollars, those are PMP to brand dollars, or whether those are coming from omni DSPs like the Trade Desk or Google DV360, that's something we're really excited about in terms of, you know, that's unique to us in the marketplace, you know, on our publishers, so that's something where we're really focusing on how we can differentiate there.
Speaker Change: Okay. So can I just follow up on that point so.
William Gordon Stone: Yep, yep, very clear. Got it. Thanks.
Speaker Change: Momentum and growth returning to growth, we're talking about for next year or something maybe more coming from those advertisers or do you also see the gaming advertisers using our platform.
Speaker Change: Oh, Yes, we will continue to work with our performance in gaming advertisers, but you you'd asked a question around differentiation.
Speaker Change: We feel like the brand dollars rolling through whether those are direct brand dollars as your Pnp brand dollars or whether those are coming from omni DSP like the trade desk or Google DB $3 60.
Speaker Change: That's something we're really excited about in terms of that's unique to us in the marketplace on our publishers. So that's something where we're really focusing on how we can differentiate there.
Speaker Change: Yep Yep.
Thanks.
Speaker Change: Yeah.
William Gordon Stone: This concludes our question and answer session. I would like to turn the conference back over to Bill Stone for any closing remarks.
Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Bill stone for any closing remarks.
William Gordon Stone: Thank you everyone for joining the call tonight. I feel the weight of our stock performance on our shareholders, employees, and all of our stakeholders and want to make sure everybody knows we as a team are fully committed to returning to growth. We have a number of encouraging activities and growth drivers that are going to help us achieve this. We look forward to reporting our progress against all the points that we made on today's call, and we'll talk to you again on our fiscal 25 first quarter call in a few months. Thanks, and have a great night!
William Gordon Stone: Yeah, Thanks, everyone for joining the call Tonight.
William Gordon Stone: So the weight of our stock performance on our shareholders employees and all of our stakeholders and want to make sure everybody knows we as a team are fully committed to returning to growth. We have a number of encouraging activities and growth drivers that can help us achieve this we look forward to reporting on our progress against all the points that we made on today's call and we'll talk to you again on our fiscal 'twenty five first quarter call in a few.
Thanks, and have a great night.
William Gordon Stone: Yeah.
Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
Music: ??
Speaker Change: Okay.
[music].
Yeah.
Speaker Change: Yes.