Q1 2025 Digital Turbine Inc Earnings Call

Good afternoon and welcome to the Digital Turbine Fiscal 2025 First Quarter Results Conference Call.

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Brian Bartholomew: I would now like to turn the comps over to Brian Bartholomew, Senior Vice President of Capital Markets. Please go ahead.

Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your telephone keypad. To withdraw from the question queue, 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.

Operator: I'd like to turn the conference over to Brian Bartholomew, Senior Vice President of Capital Markets. Please go ahead.

Speaker Change: 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.

Bill Stone: Thank you, Anthony.

Brian Bartholomew: Thank you, Anthony. Good afternoon, and welcome to the Digital Turbine Fiscal 2025 First Quarter Earnings Conference Call. Joining me on the call today to discuss our results are CEO Bill Stone and CFO Barrett Garrison. Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward-looking statements. These forward-looking statements are based on our current assumptions, expectations, and beliefs, including projected operating metrics, future products and services, anticipated market demand, and other forward-looking topics.

Brian Bartholomew: Thank you, Anthony. Good afternoon, and welcome to the Digital Turbine Fiscal 2025 First Quarter Earnings Conference Call. Joining me on the call today to discuss our results are CEO Bill Stone and CFO Barrett Garrison. Except as required by law, we undertake no obligation to update any forward-looking statements. For a discussion of the risk factors that could cause our actual results to differ materially from those contemplated by our forward-looking statements, please refer to the documents we filed with the Securities and Exchange Commission. Now, we'll turn the call over to our CEO, Bill Stoss.

Bill Stone: Good afternoon and welcome to the Digital Turbine Fiscal 2025 First Quarter Earnings Conference Call. Joining me on the call today to discuss our results are CEO Bill Stone and CFO Barrett Garrison.

Brian Bartholomew: Thank you, Anthony. Good afternoon and welcome to the Digital Turbine fiscal 2025 first quarter earnings conference call.

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

Bill Stone: Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward-looking statements. These forward-looking statements are based on our current assumptions, expectations, and beliefs, including projected operating metrics, future products and services, anticipated market demand, and other forward-looking topics. Although we believe that our assumptions are reasonable, they are not guarantees of future performance, and some will inevitably prove to be incorrect. Except as required by law, we undertake no obligation to update any forward-looking statements.

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 statements. For a discussion of the risk factors that could cause our actual results to differ materially from those contemplated by our forward-looking statements, please refer to the documents we filed with the Securities and Exchange Commission. Also, during this call, we will discuss certain non-GAAP measures of our performance.

Speaker Change: Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward-looking statements.

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

Speaker Change: To accept as required by law, we undertake no obligation to update any forward-looking statements.

Bill Stone: For discussion of the risk factors that could cause our actual results to differ materially from those contemplated by our forward-looking statements, this is part of the documents we file with the Securities and Exchange Commission.

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, please refer to the documents we filed with the Securities and Exchange Commission.

Bill Stone: Also, during this call, we will discuss certain non-GAAP measures of our performance. Non-gap measures are not substitutes for gap 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: 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. Now, we'll turn the call over to our CEO, Bill Stoss.

Speaker Change: 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.

Bill Stone: Now, we'll turn the call over to our CEO, Bill Stone. Thanks, Brian, and thank you for joining our call tonight. I'd like to break my remarks into three areas. First, I want to summarize our Q1 results. Secondly, I want to provide some operational updates as we continue our return to growth, and finally, we'll conclude with some strategic comments on how we're positioned for the future. For our first quarter results, I'm pleased to announce that we have returned to sequential growth in revenue, EBITDA, and non-GAAP earnings per share. As expected, the March quarter was the trough for our business, and the June quarter was a positive step on our journey to return to growth.

Bill 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 summarize our Q1 results. Secondly, I want to provide some operational updates as we continue our return to growth. And finally, we'll conclude with some strategic comments on how we're positioned for the future. For our first quarter results, I'm pleased to announce that we have returned to sequential growth in revenue, EBITDA, and non-GAAP earnings per share.

Speaker Change: Now we'll turn the call over to our CEO , Bill Stone.

Bill Stone: Thanks, Brian , and thank you all for joining our call tonight.

Bill Stone: I'd like to break my remarks into three areas.

Bill Stone: First, I want to summarize our Q1 results. Secondly, I want to provide some operational updates as we continue our return to growth. And finally, we'll conclude with some strategic comments on how we're positioned for the future.

Bill Stone: For our first quarter results, I'm pleased to announce that we have returned to sequential growth in revenue, EBITDA, and non-GAAP earnings per share.

Bill Stone: As expected, the March quarter was the trough for our business, and the June quarter was a positive step on our journey to return to growth. In addition to the numbers, we made notable progress on numerous investment activities that set us up for the future, including progress on our new version of Ignite, our new hosting platform has moved from migration phase to optimization phase, our launch of improved bidding capabilities is showing positive growth with brands, and many new back-end corporate systems consolidated and launched, which are simplifying and automating our work.

Bill Stone: As expected, the March quarter was the trough for our business, and the June quarter was a positive step on our journey to return to growth. We achieved $118 million of revenue, $15 million of EBITDA, and $0.07 of non-GAAP EPS.

Bill Stone: As expected, the March quarter was the trough for our business, and the June quarter was a positive step on our journey to return to growth.

Bill Stone: We achieved $118 million of revenue, $15 million of EBITDA, and $7 cents of non-gap EPS. In addition to the numbers, we made notable progress on numerous investment activities that set us up for the future, including our progress on our new version of Ignite. Our new hosting platform has moved from migration phase to optimization phase. Our launch should have improved bidding capabilities, showing positive growth with grants, and many new backend corporate systems consolidated and launched, which are simplifying and automating our work. I was pleased to see our return to growth, both in our ODS and HEP business segments, driven by better execution on our controllables.

Bill Stone: We achieved $118 million of revenue, $15 million of EBITDA, and $0.07 of non-GAAP EPS.

Bill Stone: In addition to the numbers, we made notable progress on numerous investment activities that set us up for the future, including progress on our new version of Ignite, our new hosting platform has moved from migration phase to optimization phase, our launch of improved bidding capabilities is showing positive growth with brands, and many new back-end corporate systems consolidated and launched, which are simplifying and automating our work. I was pleased to see our return to growth both in our ODS and AGP business segments, driven by better execution on our controllables.

Bill Stone: In addition to the numbers, we made notable progress on numerous investment activities that set us up for the future.

Bill Stone: including our progress on our new version of Ignite.

Bill Stone: Our new hosting platform has moved from migration phase to optimization phase. Our launch of improved bidding capabilities is showing positive growth with brands. And many new back-end corporate systems consolidated and launched, which are simplifying and automating our work.

Bill Stone: I was pleased to see our return to growth both in our ODS and AGP business segments driven by better execution on our controllables. In particular, our revenue per device, or RPDs, improved 15% despite continued softness in U.S. device sales. U.S. operators have publicly reported another quarter of post-pay upgrade rates that were less than 3% of the base for the June quarter, or a run rate of approximately 11% per year. We expect this trend to reverse as we get to the back end of our fiscal year, as we see the anniversary of the migration from two- to three-year leases in the U.S. market, as well as likely upgrades driven by new AI features on OEM hardware.

Speaker Change: I was pleased to see our return to growth both in our ODS and AGP business segments driven by better execution on our controllables. In particular, our revenue per device, or RPDs, improved 15% despite continued softness in U.S. device sales.

Bill Stone: In particular, our revenue per device, or RPDs, improved 15 percent, despite continued softness in U.S. device sales. U.S. operators have publicly reported another quarter of post-pay upgrade rates that were less than 3 percent of the base for the June quarter, or a run rate of approximately 11 percent 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 this is a reality in the present. We expect this trend to reverse, as we get to the back end of our fiscal year, as we see the anniversary of the migration from two to three year leases in the US market, as well as likely upgrades driven by new AI features on OEM hardware.

Bill Stone: In particular, our revenue per device, or RPDs, improved 15% despite continued softness in U.S. device sales. U.S. operators have publicly reported another quarter of post-pay upgrade rates that were less than 3% of the base for the June quarter, or a run rate of approximately 11% 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 this is a reality in the present.

Speaker Change: U.S. operators have publicly reported another quarter of post-pay upgrade rates that were less than 3% of the base for the June quarter, or a run rate of approximately 11% per year.

Speaker Change: This would imply more than an 8-year upgrade cycle, which I think all of us would recognize as unsustainable for the long term, but this is a reality in the present.

Bill Stone: We expect this trend to reverse as we get to the back end of our fiscal year, as we see the anniversary of the migration from two- to three-year leases in the U.S. market, as well as likely upgrades driven by new AI features on OEM hardware. As mentioned above, our RPDs were a bright spot, especially internationally, as we transitioned away from reliance on Chinese applications on U.S. devices and have been able to bring both new brands to the U.S. and international markets and improve our use of Chinese apps on our international supply. And we also returned our content media business to growth, both in the quarter as well as year-over-year, through improved execution. Our AGP business grew 11% sequentially.

Speaker Change: We expect this trend to reverse as we get to the back end of our fiscal year, as we see the anniversary of the migration from two- to three-year leases in the U.S. market, as well as likely upgrades driven by new AI features on OEM hardware.

Bill Stone: As mentioned above, our PDs were a bright spot, especially internationally, as we transitioned away from reliance on Chinese applications on US devices and have been able to bring both new brands to the US and international markets and improve our spends of Chinese apps on our international supply. And we also returned to our content media business to grow both in the quarter, as well as year-over-year, to improve execution. Our HUP business grew 11 percent sequentially. Two main drivers for the performance are solid eCPM improvements as advertisers are seeing positive return on ad spend or ROAS from our offerings, and the second driver is the ability to drive more first-party data traffic over our own network.

Speaker Change: As mentioned above, our RPDs were a bright spot, especially internationally, as we transitioned away from reliance on Chinese applications on U.S. devices and have been able to bring both new brands to the U.S. and international markets and improve our spend of Chinese apps on our international supply.

Speaker Change: and we also returned our content media business to growth both in the quarter as well as year-over-year through improved execution.

Bill Stone: Our HEP business grew 11% sequentially. Two main drivers for the performance are solid eCPM improvements, as advertisers are seeing positive return on ad spend, or ROAS, from our offerings, and the second driver is the ability to drive more first-party data traffic over our own network. We've had high conviction in our strategy to leverage the combination of our unique assets we have on device, our approach to working with big brands, and our integrated ad colony and fiber exchanges, which we brand as DTX, to have a differentiated offer from others. The legacy Appreciate Ad Colony and Fiverr businesses had the vast majority of their traffic being third-party demand or supply running through their pipes.

Bill Stone: Two main drivers for performance are solid eCPM improvements, as advertisers are seeing positive return on ad spend, or ROAS, from our offerings, and the second driver is the ability to drive more first-party data traffic over our own network. We've had high conviction in our strategy to leverage the combination of our unique assets we have on device, our approach to working with big brands, and our integrated ad colony and fiber exchanges, which we brand as DTX, to have a differentiated offer from others. The legacy Appreciate, AgColony, and Fiber businesses had the vast majority of their traffic being third-party demand or supply running through their pipes.

Speaker Change: Our HEP business grew 11% sequentially.

Speaker Change: Two main drivers for the performance are solid eCPM improvements as advertisers are seeing positive return on ad spend, or ROAS, from our offerings, and the second driver is the ability to drive more first-party data traffic over our own network.

Bill Stone: We've had high conviction in our strategy to leverage the combination of our unique assets we have on device, our approach to working with big brands, and our integrated ad colony and fiber exchanges, which we brand as DTX, to have a differentiated offer from others. The legacy appreciate ad colony and fiber businesses had the vast majority of the traffic being third-party demand or supply running through their pipes. Now being able to run first-party demand over our own network offers better solutions for our customers, publishers, better margins for us, a mode to differentiate our approach from competitors, and also creates a flywheel effect.

Speaker Change: We've had high conviction in our strategy to leverage the combination of our unique assets we have on device, our approach to working with big brands, and our integrated ad colony and fiber exchanges, which we brand as DTX, to have a differentiated offer from others.

Speaker Change: The legacy Appreciate Ad Colony and Fiverr businesses had the vast majority of their traffic being third-party demand or supply running through their pipes.

Bill Stone: Now being able to run first-party demand over our own network offers better solutions for our customers, publishers, better margins for us, a moat to differentiate our approach from competitors, and also creates a flywheel effect. As an example of this, the amount of traffic running first-party demand under our control over our network has grown from just over 10 percent two years ago, 25% last year, and now it's over 40%.

Speaker Change: Now being able to run first-party demand over our own network offers better solutions for our customers, publishers, better margins for us, a moat to differentiate our approach from competitors, and also creates a flywheel effect.

Bill Stone: As an example of this, the amount of traffic running first-party demand under our control over our network has grown from just over 10 percent two years ago to 25 percent last year, and now it's over 40 percent. In particular, our brand business has momentum with double-digit sequential growth, and as we're growing over year-over-year headwinds with one large brand advertiser, the sunset of legacy systems, and the migration from being performance centric to brand centric in advertising, we expect to grow over these year-over-year headwinds as we move forward through the fiscal year. Turning to our operational progress, our focus is expanding on the growth from the June quarter.

Bill Stone: As an example of this, the amount of traffic running first-party demand under our control over our network has grown from just over 10% two years ago. We do that through three focus areas: growing our device footprint, Launching, and Scaling New Products. And finally, growing our media relationships. First, we grow our device footprint. Despite soft device sales here in the U.S., we've been expanding our global device relationships through partners like Motorola, Nokia, One Store in Korea, and Xiaomi.

Speaker Change: As an example of this, the amount of traffic running first-party demand under our control over our network has grown from just over 10% two years ago.

Bill Stone: In particular, our brand business has momentum with double-digit sequential growth. And as we're growing over year-over-year headwinds with one large brand advertiser, the sunset of legacy systems, and the migration from being performance-centric to brand-centric in our advertising, we expect to grow over these year-over-year headwinds as we move forward through the fiscal year. Turning to our operational progress, our focus is expanding on the growth from the June quarter. We do that through three focus areas: growing our device footprint, and Launching and Scaling New Products.

Speaker Change: to 25% last year, and now it's over 40%.

Speaker Change: In particular, our brand business has momentum with double-digit sequential growth.

Speaker Change: And as we're growing over year-over-year headwinds with one large brand advertiser, the sunset of legacy systems, and the migration from being performance-centric to brand-centric in our advertising, we expect to grow over these year-over-year headwinds as we move forward through the fiscal year.

Speaker Change: Turning to our operational progress, our focus is expanding on the growth from the June quarter.

Bill Stone: We do that through three focus areas: growing our device footprint, launching and scaling to products, and finally growing our media relationships. First is growing our device footprint. Despite soft device sales here in the US, we've been expanding our global device relationships through partners like Motorola, Nokia, One-Store and Korea, and Xiaomi. I'm also pleased to announce that we've been selected by a large Brazilian operator with over 60 million subscribers to be their on-device partner that will be leveraging Ignite. This is a nice win for us, as we now have all the major Brazilian telco partners choosing Digital Turbine.

Speaker Change: We do that through three focus areas, growing our device footprint, launching and scaling new products, and finally growing our media relationships.

Bill Stone: And finally, growing our media relationships. First, we grow our device footprint. Despite soft device sales here in the U.S., we've been expanding our global device relationships through partners like Motorola, Nokia, One Store in Korea, and Xiaomi. I'm also pleased to announce that we've been selected by a large Brazilian operator with over 60 million subscribers to be their on-device partner that will be leveraging Ignite. This is a nice win for us as we now have all the major Brazilian telco partners choosing Digital Turbine.

Speaker Change: First is growing our device footprint.

Speaker Change: Despite soft device sales here in the U.S., we've been expanding our global device relationships through partners like Motorola, Nokia, One Store in Korea, and Xiaomi.

Bill Stone: I'm also pleased to announce that we've been selected by a large Brazilian operator with over 60 million subscribers to be their on-device partner that will be leveraging Ignite. This is a nice win for us as we now have all the major Brazilian telco partners choosing Digital Turbine.

Speaker Change: I'm also pleased to announce that we've been selected by a large Brazilian operator with over 60 million subscribers to be their on-device partner that will be leveraging Ignite. This is a nice win for us as we now have all the major Brazilian telco partners choosing Digital Turbine.

Bill Stone: 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 ATTEC and on-device capabilities are critical for our return to growth. On our HEP business, as mentioned earlier, our SDK bidding capabilities have been a nice product enhancement to unlock brand spends on our exchange. While we still have plenty of work to do to transform our migration to this method of bidding with such enhancements as improved AI machine learning, integration of more first-party data, and so on, SDK bidding is already showing strong growth.

Bill Stone: Returning to growth through new devices on new partners plus existing partners showing momentum is the key 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. While we still have plenty of work to do to transform our migration to this method of bidding with such enhancements as improved AI and machine learning, integration of more first-party data, and so on, SDK bidding is already showing strong growth.

Bill Stone: Returning to growth through new devices on new partners plus existing partners showing momentum is the key 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 H-E-P business, as mentioned earlier, our S-D-K bidding capabilities have been a nice product enhancement to unlock brand spends on our exchange.

Speaker Change: Returning to growth through new devices on new partners plus existing partners showing momentum are the keys to our first growth driver.

Speaker Change: Our second growth driver is expanding our product portfolio for both our ODS and HEP businesses.

Speaker Change: Scaling new ad tech and on-device capabilities are critical to our return to growth.

Speaker Change: On our H-E-P business, as mentioned earlier, our S-D-K bidding capabilities have been a nice product enhancement to unlock brand spends on our exchange.

Bill Stone: While we still have plenty of work to do to transform our migration to this method of bidding with such enhancements as improved AI machine learning, integration of more first-party data, and so on, SDK bidding is already showing strong growth. Our investment here is a major enabler to drive more brand revenues through our network. And the early returns are encouraging that this will be a nice growth driver for us versus solely focused on performance advertising dollars like the majority of our competitors in the marketplace.

Speaker Change: While we still have plenty of work to do to transform our migration to this method of bidding with such enhancements as improved AI machine learning, integration of more first-party data, and so on, SDK bidding is already showing strong growth.

Bill Stone: Our investment here is a major enabler to drive more brand revenues through our network, and the early returns are encouraging that this will be a nice growth driver for us versus solely focused on performance advertising dollars like the majority of our competitors in the marketplace. Our brand revenues for the June quarter were up over 25% sequentially, and we're also close to 40% 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. Our primary growth drivers for the ODS business are single tap, alternative apps, and better leveraging our first-party data for our existing ODS products. Singletap continues to add more devices, more advertisers, and better execution.

Bill Stone: Our investment here is a major enabler to drive more brand revenues through our network. And the early returns are encouraging that this will be a nice growth driver for us versus solely focused on performance advertising dollars, like the majority of our competitors in the marketplace. Our brand revenues for the June quarter were up over 25% sequentially, and we're also close to 40% of our revenues on our DT exchange coming from SDK bidding, which is a requirement for many brands and agencies and how they bid for audiences. This allows us to grow our revenues not just with direct brand deals but also with brand on the DSPs like The Trade Desk and Google GV360.

Speaker Change: our investment here is a major enabler to drive more brand revenues through our network

Speaker Change: And the early returns are encouraging that this will be a nice growth driver for us versus solely focused on performance advertising dollars like the majority of our competitors in the marketplace.

Bill Stone: Our brand revenues for the June quarter were up over 25% sequentially, and we're also close to 40% 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. This allows us to grow our revenues, not just with direct brand deals but also with brand Omni DSPs like the Trade Desk and Google DV360. Our other AGP product growth driver will be increasing our share of voice for leveraging our first-party data and our Ignite capabilities via our demand-side platforms, or DSPs. We do this today through our Appreciate acquisition, which is showing renewed growth.

Speaker Change: Our brand revenues for the June quarter were up over 25% sequentially and we're also close to 40% of our revenues on our DT exchange coming from SDK bidding, which is a requirement for many brands and agencies and how they bid for audiences.

Speaker Change: This allows us to grow our revenues not just with direct brand deals but also with brand Omni DSPs like the Trade Desk and Google DV360.

Bill Stone: Our other AGP product growth driver will be increasing our share of voice for leveraging our first-party data and our Ignite capabilities via our demand-side platforms or DSP. We do this today through our appreciate acquisition, which is showing renewed growth. We're also beginning to partner with third-party DSPs in this current quarter that can help grow our share of voice, and all of this translates not just to top-line revenue growth with more demand dollars, but also is key in driving the flywheel effects of improving revenues on our other products such as single-tap, our DT exchange, and FairBid, our mediation product.

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 our demand-side platforms, or DSPs.

Speaker Change: We do this today through our Appreciate Acquisition, which is showing renewed growth.

Bill Stone: We're also beginning to partner with third-party DSPs in this current quarter that can help grow our share of voice, and all of this translates not just to top-line revenue growth with more demand dollars but also is 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 for the ODS business are single tap, alternative apps, and better leveraging our first-party data for our existing ODS products.

Speaker Change: We're also beginning to partner with third-party DSPs in this current quarter that can help grow our share of voice

Speaker Change: And all of this translates not just to top-line revenue growth with more demand dollars, but also is key in driving the flywheel effects of improving revenues on our other products, such as Singletap, our DT Exchange, and Fairbid, our mediation product.

Bill Stone: Our primary growth drivers on the ODS business are single-tap, alternative apps, and better leveraging our first-party data for existing produce products. Single-tap continues to add more devices, more advertisers, and better execution. And 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 of not just Android and iOS apps, but also alternative app versions. The interest from large tier one publishers is very encouraging and will be a growth driver for us this year. And finally, we've been historically focused on leveraging our distribution footprint to drive ODS revenue.

Speaker Change: Our primary growth drivers on the ODS business are single tap, alternative apps, and better leveraging our first party data for our existing ODS products.

Bill Stone: Singletap continues to add more devices, more advertisers, and better execution. And it's early days for the alternative app distribution approach, but as we've discussed on prior calls, we will look to begin showing our progress in the distribution of not just Android and iOS apps but also alternative app versions.

Speaker Change: single tap continues to add more devices more advertisers and better execution

Speaker Change: And it's early days for our alternative app distribution approach, but as we've discussed on prior calls, we will look to begin showing our progress of distribution of not just Android and iOS apps, but also alternative app versions.

Bill Stone: The interest from large Tier 1 publishers is very encouraging and will be a growth driver for us this year. And finally, we've been historically focused on leveraging our distribution footprint to drive ODS revenue. We have not optimized our first-party data.

Bill Stone: The interest from large Tier 1 publishers is very encouraging and will be a growth driver for us this year. And finally, we've been historically focused on leveraging our distribution footprint to drive ODS revenue. We have not optimized our first-party data.

Speaker Change: The interest from large Tier 1 publishers is very encouraging and will be a growth driver for us this year.

Speaker Change: And finally, we've been historically focused on leveraging our distribution footprint to drive ODS revenue.

Bill Stone: We have not optimized our first-party data. We are 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 on device. And our third-growth driver is our media relationships. We're continuing to expand directly with top consumer brands and advertising agencies that are driving this double-digit annual growth. We also continue to have many strategic demand relationships with large global game publishers. With a tailwind of alternative app distribution, these players are increasingly attracted to Digital Turbine to build the deeper relationships. The final media growth driver is our change in channel strategy to grow our revenue per device outside the U.S.

Bill Stone: We are 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 on devices. And our third growth driver is our media relationships. We're continuing to expand directly with top consumer brands and advertising agencies that are driving this double-digit annual growth. We also continue to have many strategic demand relationships with large global game publishers. With the tailwind of alternative app distribution, these players are increasingly attracted to Digital Turbine to build deeper relationships.

Bill Stone: We are 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 on devices. And our third Go-Driver is our media relationships. We're continuing to expand directly with top consumer brands and advertising agencies that are driving this double-digit annual growth. We also continue to have many strategic demand relationships with large global game publishers. The final media growth driver is our change in channel strategy to grow our revenue per device outside the U.S. As I mentioned earlier, I was pleased to see very strong sequential growth here, and we want to build on that by bringing more demand to our international supply.

Speaker Change: We have not optimized our first-party data. We are 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 on-device.

Speaker Change: And our third Go-Driver is our Meteor Relationships.

Speaker Change: We're continuing to expand directly with top consumer brands and advertising agencies that are driving this double-digit annual growth.

Speaker Change: We also continue to have many strategic demand relationships with large global game publishers. With a tailwind of alternative app distribution, these players are increasingly attracted to Digital Turbine to build deeper relationships.

Bill Stone: The final media growth driver is our change in channel strategy to grow our revenue per device outside the U.S. As I mentioned earlier, I was pleased to see very strong sequential growth here, and we want to build on that by bringing more demand to our international supply. We've talked about this many times on prior calls, so it's nice to see our execution improving here.

Speaker Change: The final media growth driver is our change in channel strategy to grow our revenue per device outside the U.S.

Bill Stone: As I mentioned earlier, I was pleased to see very strong sequential growth here, and we want to build on that by bringing more demand to our international supply. We've talked about this many times on prior calls, so it's nice to see our execution improving here. So to summarize, our number one priority is fiscal year is continuing to demonstrate sequential growth with our three growth drivers. And this will be through expanding our device footprint, expanding new products such as single tap, DT exchange, alternative app stores, and improve use of first party data, and finally expanding our media relationships.

Speaker Change: As I mentioned earlier, I was pleased to see very strong sequential growth here, and we want to build on that by bringing more demand to our international supply. We've talked about this many times on prior calls, so it's nice to see our execution improving here.

Bill Stone: We've talked about this many times on prior calls, so it's nice to see our execution improving here. And beyond this fiscal year, the goal is not just to return to growth but to accelerate it. The key driver here will be the expansion of our alternative app strategy. We have launched our first alternative app distribution products, which we brand as VT Hub, with five operators here in the U.S. We expect to begin increasing our focus in the EU with the Digital Markets Act, or DMA, now in effect.

Bill Stone: So to summarize, our number one priority this fiscal year is continuing to demonstrate sequential growth with our three growth drivers. And this will be through expanding our device footprint, expanding new products such as single tap, DT Exchange, alternative app stores, and improved use of first-party data, and finally, expanding our media relationships. And beyond this fiscal year, the goal is not just to return to growth but to accelerate it. The key driver here will be the expansion of our alternative app strategy.

Speaker Change: So to summarize, our number one priority this fiscal year is continuing to demonstrate sequential growth with our three growth drivers.

Speaker Change: And this will be through expanding our device footprint, expanding new products such as single tap, DT Exchange, alternative app stores, and improved use of first-party data, and finally, expanding our media relationships.

Bill Stone: And beyond this fiscal year, the goal is not just to return the growth, but to accelerate it. The key driver here will be expansion of our alternative app strategy. We have launched our first alternative app distribution products, which we brand as DT hub, with five operators here in the US. We expect to begin increased focus in the EU with the Digital Markets Act or DMA now in effect. As a reminder for investors, the DMA launched in March of this year in the EU, and in particular we would encourage investors to take close attention to the details around this, such as how the regulators manage apples, defiance, and compliance, and the corresponding opportunities that it presents for us.

Speaker Change: andbeyond this fiscal year the goal is not just to return the growth but to accelerate it the key driver here will be expansion of our alternative apstrategy

Bill Stone: We have launched our first alternative app distribution products, which we brand as VT Hub, with five operators here in the U.S. We expect to begin increasing our focus in the EU with the Digital Markets Act, or DMA, now in effect. As a reminder for investors, the DMA launched in March of this year in the EU, and in particular, we would encourage investors to pay close attention to the details around this, such as how the regulators manage apples, defiance, and compliance, and the corresponding opportunities that it presents for us.

Speaker Change: We have launched our first alternative app distribution products, which we brand as VT-Hub with five operators here in the U.S.

Speaker Change: We expect to begin increased focus in the EU with the Digital Markets Act, or DMA, now in effect.

Bill Stone: As a reminder for investors, the DMA launched in March of this year in the EU, and in particular, we would encourage investors to pay close attention to the details around this, such as how the regulators manage Apple's defiance and compliance with the DMA, and the corresponding opportunities that it presents for us. I would also encourage investors to pay close attention to all the developments here in the United States, such as the recent decision on Google's loss in the DOJ antitrust suit and a variety of other legal and regulatory matters that should be tailwinds for smaller companies like Digital Turbine.

Speaker Change: As a reminder for investors, the DMA launched in March of this year in the EU, and in particular we would encourage investors to pay close attention to the details around this, such as how the regulators manage Apple's defiance and compliance, and the corresponding opportunities that it presents for us.

Bill Stone: I would also encourage investors to pay close attention to all the developments here in the United States, such as the recent decision on Google's loss on the DOJ antitrust suit and a variety of other legal and regulatory matters that should be tailwinds for smaller companies like Digital Turbine. I also want to emphasize that the alternative app strategy is not just about new in-app payment revenues, but perhaps more importantly, be a catalyst to accelerate our existing lines of business beyond this fiscal year. Today, approximately 50% of our business is driven by user acquisition and 50% driven by in-app advertising.

Bill Stone: I would also encourage investors to pay close attention to all the developments here in the United States, such as the recent decision on Google's loss in the DOJ antitrust suit and a variety of other legal and regulatory matters that should be tailwinds for smaller companies like Digital Turbine.

Speaker Change: I would also encourage investors to pay close attention to all the developments here in the United States, such as the recent decision on Google's loss on the DOJ antitrust suit and a variety of other legal and regulatory matters that should be tailwinds for smaller companies like Digital Turbine.

Bill Stone: I also want to emphasize that the alternative app strategy is not just about new in-app payment revenues but, perhaps more importantly, a catalyst to accelerate our existing lines of business beyond this fiscal year. Today, approximately 50% of our business is driven by user acquisition and 50% driven by in-app advertising. Our app providers want to find ways to acquire more users at lower cost with alternative users, and we believe that this will also open up new app providers to leverage our ad tech stack as part of the strategy, thereby driving more AGP revenue growth. We are live today running both alternative app user acquisition campaigns and in-app advertising leveraging our technology.

Speaker Change: I also want to emphasize that the alternative app strategy is not just about new in-app payment revenues, but perhaps more importantly, be a catalyst to accelerate our existing lines of business beyond this fiscal year.

Bill Stone: Today, approximately 50% of our business is driven by user acquisition, and 50% is driven by in-app advertising. In other words, improving our present revenues and cash flow are both closely linked to our future strategy. In conclusion, we've made improved execution a top priority of the company, and I'm pleased to see that execution improve, starting to show up in our results with sequential growth. We have a lot more opportunity in front of us to build on the momentum. And with that, I'll turn it to Barrett to take you through the numbers.

Speaker Change: Today, approximately 50% of our business is driven by user acquisition and 50% driven by in-app advertising.

Bill Stone: Our app providers want to find ways to acquire more users at lower cost with alternative users, and we believe that this will also open up new app providers to leverage our ad tech stack as part of the strategy, thereby driving more HDP revenue growth. We are live today running both alternative app user acquisition campaigns and in-app advertising leveraging our technology. In other words, improving our present revenues in cash flow are both closely linked to the future strategy. In conclusion, we've made improved execution a top priority of the company. I'm pleased to see that execution improve starting to show up in our results with sequential growth.

Speaker Change: Our app providers want to find ways to acquire more users at lower cost with alternative users, and we believe that this will also open up new app providers to leverage our ad tech stack as part of the strategy, thereby driving more AGP revenue growth.

Speaker Change: We are live today running both alternative app user acquisition campaigns and in-app advertising leveraging our technology.

Bill Stone: In other words, improving our present revenues and cash flow are both closely linked to the future strategy. In conclusion, we've made improved execution a top priority of the company. I'm pleased to see that execution is improving and starting to show up in our results with sequential growth. We have a lot more opportunity in front of us to build on the momentum. And with that, I'll turn it over to Barrett to take you through the numbers.

Speaker Change: In other words, improving our present revenues and cash flow are both closely linked to the future strategy.

Speaker Change: In conclusion, we've made improved execution a top priority of the company. I'm pleased to see that execution improve, starting to show up in our results with sequential growth. We have a lot more opportunity in front of us to build on the momentum. And with that, I'll turn it to Barrett to take you through the numbers.

Barrett Garrison: We have a lot more opportunity in front of us to build on the momentum, and would that alternative bear it to take you through the numbers? Thanks, Bill, and good afternoon everyone. Revenue of 118 million in the quarter was up 5% sequentially, with revenues improving sequentially across both segments of our business. On-device solutions are ODS and our app growth platform, our HEP from the March quarter, and EBITDA of 14.5 million improved 18% sequentially. Our ODS segment revenues of 80.7 million were up 3% sequentially from the March quarter and down 18% from the prior year. However, as Bill referenced, while macro trends continued with software U.S.

Barrett Garrison: Thanks, Bill, and good afternoon, everyone. Revenue of $118 million in the quarter was up 5% sequentially, with revenues improving sequentially across both segments of our business. On-Device Solutions, or ODS, and our App Growth Platform, or AGP, from the March quarter, and EBITDA of $14.5 million improved 18% sequentially. Our ODS segment revenues of $80.7 million were up 3% sequentially from the March quarter and down 18% from the prior year. However, as Bill referenced, while macro trends continued with software U.S. device volumes in Q1, this impact was partially offset by sequential improvements in RPD, or revenue per device, across both the U.S. and international regions and growth in our content media revenues, which were up 12% year-on-year in the quarter. Our consolidated Q1 growth margin was 46%. This was a 50 basis point expansion sequentially and compared to 47% in Q1 from the prior year. With our commitment to financial discipline and resilience,

Barrett Garrison: Thanks, Bill, and good afternoon, everyone. Revenue of $118 million in the quarter was up 5% sequentially, with revenues improving sequentially across both segments of our business. On-Device Solutions, or ODS, and our App Growth Platform, or AGP, from the March quarter. And EBITDA of $14.5 million improved 18% sequentially. Our ODS segment revenues of $80.7 million were up 3% sequentially from the March quarter and down 18% from the prior year. However, as Bill referenced, while macro trends continued with software US device volumes in Q1, this impact was partially offset by sequential improvements in RPD, or Revenue Per Device, across both the US and international regions and growth in our content media revenues, which were up 12% year-on-year in the quarter. In our AGP business, Q1 revenue was $38.4 million, which increased 11% sequentially. We experience positive signals on increasing advertising spend levels, particularly within brands, as evidenced by a greater than 20% year-on-year revenue increase.

Barrett Garrison: Thanks, Bill, and good afternoon, everyone. Revenue of $118 million in the quarter was up 5% sequentially, with revenues improving sequentially across both segments of our business.

Barrett Garrison: on-device solutions, or ODS, and our app growth platform, or AGP, from the March quarter. And EBITDA of $14.5 million improved 18% sequentially.

Barrett Garrison: Our ODS segment revenues of $80.7 million were up 3% sequentially from the March quarter and down 18%.

Speaker Change: from the prior year.

Barrett Garrison: Device volumes in Q1, this impact was partially offset by sequential improvements in RPD or revenue per device across both the U.S. and international regions. And growth in our content media revenues, which were up 12% year on year in the quarter. In our AGP business, Q1 revenue is 38.4 million, which increased 11% sequentially. We experienced positive signals on increasing advertising spend levels, particularly within brand, evidence by greater than 20% year-on-year revenue increases. Our consolidated Q1 growth margin was 46%. This was a 50 basis point expansion, coincidentally, and compared to 47% in Q1 from the prior year.

Speaker Change: However, as Bill referenced, while macro trends continued with software U.S. device volumes in Q1, this impact was partially offset by sequential improvements in RPD, or revenue per device, across both the U.S. and international regions.

Speaker Change: and growth in our content media revenues, which were up 12% year-on-year in the quarter.

Speaker Change: In our AGP business, Q1 revenues of $38.4 million, which increased 11% sequentially, we experienced positive signals on increasing advertising spend levels, particularly within brand evidenced by greater than 20% year-on-year revenue increases.

Barrett Garrison: Our consolidated Q1 growth margin was 46%, which was a 50 basis point expansion sequentially and compared to 47% in Q1 from the prior year. sequentially, margins were impacted by positive, modest increases across both segments. As a reminder, margin rates can fluctuate from quarter to quarter, but we generally anticipate long-term margin expansion as we continue to execute on our growth strategy. With our commitment to financial discipline and resilience, we continue to pursue expense efficiencies to maximize the profitability of our growth strategy, and we remain disciplined with our cost control measures. Cash operating expenses were $40 million in Q1, decreasing 5% from the prior year, and they represented 34% of revenues in the quarter.

Speaker Change: Our consolidated Q1 growth margin was 46%. This was a 50 basis point expansion sequentially and compared to 47% in Q1 from the prior year.

Barrett Garrison: Sequentially, margins were impacted by positive, modest increases across both segments. And as a reminder, margin rates can fluctuate from quarter to quarter, but we generally anticipate long-term margin expansion as we continue to execute on our growth strategy. With our commitment to financial discipline and resilience, we continue to pursue expense efficiencies to maximize the profitability of our growth strategy, and we remain disciplined with our cost control measures. Cash operating expenses were 40 million in Q1, decreasing 5% from prior year, and represented 34% of revenues in the quarter. Turning to profitability, our adjusted EBITDA, a 14.5 million in the quarter, increased 2.2 million sequentially and was down from 27 million in the prior year, driven primarily from lower revenues and partially offset by a reduction in cash-optic.

Speaker Change: Sequentially, margins were impacted by positive, modest increases across both segments, and as a reminder, margin rates can fluctuate from quarter to quarter, but we generally anticipate long-term margin expansion as we continue to execute on our growth strategies.

Speaker Change: With our commitment to financial discipline and resilience, we continue to pursue expense efficiencies to maximize the profitability of our growth strategy, and we remain disciplined with our cost control measures.

Barrett Garrison: Cash operating expenses were $40 million in Q1, decreasing 5% from the prior year and represented 34% of revenues in the quarter. Turning to profitability, our adjusted EBITDA of $14.5 million in the quarter increased $2.2 million sequentially and was down from $27 million in the prior year, driven primarily from lower revenues and partially offset by a reduction in cash OPEX. And given the inherent operating leverage in our business model, we continue to expect the active focus on expense measures and integration efforts we have completed will strengthen the platform as we return to growth and enable a greater portion of those dollars to follow the bottom line. Our gap net loss was $25.1 million, or $0.25 per share loss, based on 102.4 million basic shares outstanding, compared to a prior year net loss of $1.61 per share.

Speaker Change: Cash operating expenses were $40 million in Q1, decreasing 5% from prior year, and represented 34% of revenues in the quarter.

Barrett Garrison: Turning to profitability, our adjusted EBITDA of $14.5 million in the quarter increased $2.2 million sequentially and was down from $27 million in the prior year, driven primarily from lower revenues and partially offset by a reduction in cash OPEX. Our EBITDA margin of 12% grew sequentially from 11% in the March quarter. And given the inherent operating leverage in our business model, we continue to expect the active focus on expense measures and integration efforts we have completed will strengthen the platform as we return to growth and enable a greater portion of those dollars to follow the bottom line.

Speaker Change: Turning to profitability, our adjusted EBITDA of $14.5 million in the quarter increased $2.2 million sequentially and was down from $27 million in the prior year, driven primarily from lower revenues and partially offset by a reduction in cash OPEX.

Barrett Garrison: Our EBITDA margin of 12% grew sequentially from 11% in the March quarter. And given the inherent operating leverage in our business model, we continue to expect the active focus on expense measures and integration efforts we have completed will strengthen the platform as we return to growth and enable a greater portion of those dollars to follow the bottom line. In the quarter, we achieved non-GAAP adjustment income with 7.3 million or 7 cents per share, as compared to 18.2 million or 18 cents per share in the first quarter of fiscal 2024. During the period, we experienced a higher than expected positive tax benefit.

Speaker Change: Our EBITDA margin of 12% grew sequentially from 11% in the March quarter.

Speaker Change: And given the inherent operating leverage in our business model, we continue to expect the active focus on expense measures and integration efforts we have completed will strengthen the platform as we return to growth and enable a greater portion of those dollars to follow the bottom line.

Barrett Garrison: In the quarter, we achieved non-gap adjusted net income of $7.3 million, or $0.07 per share, as compared to $18.2 million, or $0.18 per share, in the first quarter of fiscal 2024. During the period, we experienced a higher than expected positive tax rate. Our gap net loss was $25.1 million, or $0.25 per share loss, based on 102.4 million basic shares outstanding, compared to a prior year net loss of $1.61 per share.

Speaker Change: In the quarter, we achieved non-gap adjusted net income of $7.3 million, or $0.07 per share, as compared to $18.2 million, or $0.18 per share, in the first quarter of fiscal 2024.

Speaker Change: During the period we experience a higher than expected positive tax benefit.

Barrett Garrison: Our gap net loss was 25.1 million, or 25 cents per share loss, based on 102.4 million basic shares outstanding, compared to prior year net loss of $1.61 per share.

Speaker Change: Our gap net loss was $25.1 million, or $0.25 per share loss, based on 102.4 million basic shares outstanding, compared to prior year net loss of $1.61 per share.

Barrett Garrison: Moving to the balance sheet in cash flow. Our cash balance at the end of the quarter was 36 million and increase of 2 million from the March quarter, and cash flow from operations was a negative 1.3 million, which improved over 10 million from the March quarter with the increase in EBITDA sequentially and improved work and capital stemming from the correction of the invoicing timing delays we discussed in the prior quarter and expect to return to generating positive free cash flow in the back half of the year. We recently amended our credit facility, as disclosed in our credit agreement amendment, which provides further flexibility for the company to execute on our return to growth plans.

Barrett Garrison: Moving on to the Balance Sheet and Cash Flow. Our cash balance at the end of the quarter was $36 million, an increase of $2 million from the March quarter, and cash flow from operations was a negative $1.3 million, which improved by over $10 million from the March quarter with the increase in EBITDA sequentially and improved working capital stemming from the correction of the invoicing timing delays we discussed in the prior quarter. We expect to return to generating positive free cash flow in the back half of the year.

Operator: Moving on to the Balance Sheet and Cash Flow. Our cash balance at the end of the quarter was $36 million, an increase of $2 million from the March quarter, and cash flow from operations was a negative $1.3 million, which improved by over $10 million from the March quarter with the increase in EBITDA sequentially and improved working capital stemming from the correction of the invoicing timing delays we discussed in the prior quarter. We expect to return to generating positive free cash flow in the back half of the year.

Speaker Change: Moving to the balance sheet and cash flow.

Speaker Change: Our cash balance at the end of the quarter was $36 million, an increase of $2 million from the March quarter, and cash flow from operations was a negative $1.3 million, which improved over $10 million from the March quarter with the increase in EBITDA sequentially and improved working capital stemming from the correction of the invoicing timing delays.

Speaker Change: We discussed in the prior quarter and expect to return to generating positive free cash flow in the back half of the year.

Operator: We recently amended our credit facility, as disclosed in our credit agreement amendment, which provides further flexibility for the company to execute on our return to growth plans. Among other changes, we amended our credit facility by $100 million, which maintains a solid liquidity position with sufficient resources to meet our operational and strategic needs. These changes will allow us to focus on our key strategic initiatives without interruption, specifically to progress with our alternative app store opportunity.

Speaker Change: We recently amended our credit facility as disclosed in our credit agreement amendment, which provides further flexibility for the company to execute on our return to growth plans.

Barrett Garrison: Among other changes, we amended our credit facility lower by 100 million, which maintains the solid liquidity position with sufficient resources to meet our operational and strategic needs. These changes will allow us to focus on our key strategic initiatives without interruption. Specifically to progress on our alternative app store opportunity. We are pleased to have the ongoing support of our banking partners, reflecting their confidence in our business model and long-term strategy.

Speaker Change: Among other changes, we amended our credit facility lower by $100 million, which maintains a solid liquidity position with sufficient resources to meet our operational and strategic needs.

Barrett Garrison: These changes will allow us to focus on our key strategic initiatives without interruption, specifically to progress our alternative app store opportunity. We are pleased to have the ongoing support of our banking partners, reflecting their confidence in our business model and long-term strategy. In closing, we're pleased to deliver sequential growth in the quarter and set up growth for this year and beyond. As we look ahead to the balance of fiscal year 2025, 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 continue to be excited about the journey ahead. The show will now begin.

Speaker Change: These changes will allow us to focus on our key strategic initiatives without interruption, specifically to progress on our alternative app store opportunity.

Operator: We are pleased to have the ongoing support of our banking partners, reflecting their confidence in our business model and long-term strategy. Our debt balance ended the quarter at $396 million, drawn on the revolving credit facility. And as our business continues to strengthen, we would expect to pay down our revolver in larger quarterly increments. Now, let me turn to our album. Looking ahead to our growth roadmap, we reaffirm our expectations of revenue to be in the range of $540 to $560 million for fiscal year 2025, reflecting our confidence in the underlying trajectory of our business and the momentum we are seeing in the market. Additionally, we project our non-gap adjusted EBITDA of between $85 million and $95 million, underscoring our commitment to driving operational efficiency and delivering value for our shareholders.

Speaker Change: We are pleased to have the ongoing support of our banking partners, reflecting their confidence in our business model and long-term strategy.

Barrett Garrison: Energy. Our debt balance ended the quarter at 396 million drawn on the result, revolving credit facility. And as our business continues to strengthen, we would expect to pay down our revolver in larger quarterly increments.

Speaker Change: Our debt balance ended the quarter at $396 million, drawing on the revolving credit facility. And as our business continues to strengthen, we would expect to pay down our revolver in larger quarterly increments.

Barrett Garrison: Now, let me turn to our outlet. Looking ahead to our growth roadmap, we reaffirm our expectations of revenue to be in the range of 540 to 560 million for fiscal year 2025. Reflecting our confidence in the underlying trajectory of our business and the momentum we are seeing in the market, and project our non-GAAP adjustity of between 85 million and 95 million. Underscoring our commitment to driving operational efficiency and delivering value for our shareholders. In closing, we're pleased to deliver sequential growth in the quarter and set up growth for this year and beyond. As we look ahead to the balance of fiscal year 2025, we are confident in our ability to capitalize on the emerging opportunities, drive top line and free cash flow growth, and deliver sustainable long-term value for our shareholders. We continue to be excited about the journey ahead.

Speaker Change: Now let me turn to our album.

Speaker Change: Looking ahead to our growth roadmap, we reaffirm our expectations of revenue to be in the range of $540 to $560 million for fiscal year 2025.

Speaker Change: reflecting our confidence in the underlying trajectory of our business and the momentum we are seeing in the market, and project our non-gap adjusted EBITDA of between $85 million and $95 million, underscoring our commitment to driving operational efficiency and delivering value for our shareholders.

Operator: In closing, we're pleased to deliver sequential growth in the quarter and set up growth for this year and beyond. As we look ahead to the balance of fiscal year 2025, 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 continue to be excited about the journey ahead. With that, let me hand it back to the operator to open the call for questions. Operator? The meeting will now begin.

Speaker Change: In closing, we're pleased to deliver sequential growth in the quarter and set up growth for this year and beyond.

Speaker Change: As we look ahead to the balance of fiscal year 2025, we are confident in our ability to capitalize on the emerging opportunities, drive top-line and free cash flow growth, and deliver sustainable long-term value for our shareholders, and we continue to be excited about the journey ahead.

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

Operator: Operator?

Speaker Change: With that, let me hand it back to the operator to open the call for questions. Operator? We will now begin the question and answer session.

Operator: We will now begin the question and answer session. To ask a question, you may press star, then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw from the question queue, please press star, then 2. Our first question will come from Anthony Stoss with Craig Hallam.

Operator: We will now begin the question and answer session. To ask a question, you may press star, then one new telephone keypad. If you're using a speaker phone, please pick up your handset before pressing the keys. To withdraw from the question queue, please press star, then two.

Speaker Change: To ask a question, you may press star, then 1 on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw from the question queue, please press star, then 2.

Anthony Stoss: Our first question will come from Anthony Stoss with Craig Hallum. You may now go ahead. Thanks. Congrats on the return to growth, guys. Nice to see you again. Bill, a couple questions.

Anthony Stoss: Thanks. Congratulations on the return to growth, guys. It's nice to see it again.

Operator: Our first question will come from Anthony Stoss, with Craig Hallam.

Speaker Change: yeah

Speaker Change: Our first question will come from Anthony Stoss with Craig Hallam.

Bill Stone: Bill, a couple questions. Can you Within your full-year fiscal guide, are you assuming or do you need on-device sales to grow, you know, substantially to hit that number, or can you hit it if you even if device sales stay flat?

Speaker Change: You may now go ahead.

Anthony Stoss: Thanks. Congrats on the return to growth, guys. Nice to see it again. Bill, a couple questions. Can you...

Bill Stone: Within your full year fiscal guide, are you assuming or do you need on-device sales to grow substantially to hit that number, or can you hit it if even device sales stay flat? Then that will have a couple of follows. Yeah, sure, Tony. Our assumption right now is that we're not going to see an acceleration of devices or a deceleration in devices; that we're going to see the status quo. What we've seen is what our expectations are. Anything that would go off the current status quo could be either a headwind or tailwind for us. A lot of the growth that we're thinking about right now is coming from the addition of some of the new products I talked about, expansion and media relationships, expansion of the RPGs, and so on.

Anthony Stoss: Within your full-year fiscal guide are you assuming or do you need on-device sales to grow, you know, substantially to hit that number or can you hit it even if device sales stay flat? Then I have a couple follow-ups.

Bill Stone: Yeah, sure, Tony. But our assumption right now is that we're not going to see an acceleration of devices or a deceleration of devices. That we're going to kind of see the status quo of what we've seen is what our expectations are. So anything that would go against the current status quo could be either a headwind or a tailwind for us. A lot of the growth that we're thinking about right now is coming from the addition of some of the new products I talked about, the expansion of media relationships, the expansion of RPGs, and so on.

Bill Stone: Yeah, sure, Tony. But our assumption right now is that we're not going to see an acceleration of devices or a deceleration of devices. That we're going to kind of see the status quo of what we've seen is what our expectations are. So anything that would go against the current status quo could be either a headwind or a tailwind for us. A lot of the growth that we're thinking about right now is coming from the addition of some of the new products I talked about, the expansion of media relationships, the expansion of RPGs, and so on.

Bill Stone: Yeah, sure, Tony. Our assumption right now is that we're not going to see an acceleration of devices or a deceleration in devices, that we're going to kind of see the status quo of what we've seen is what our expectations are. So anything that would go off kind of the current status quo could be either a headwind or a tailwind for us. A lot of the growth that we're thinking about right now is coming from the addition of some of the new products I talked about, expansion of media relationships, expansion of the RPGs and so on.

Bill Stone: Gotcha. And then, can you confirm that all your systems integration, the Fibrad colony combination, the DTX hub, is all behind you, that's complete, or is there still a little bit more work to go? I know you're seeing some of the fruits of it now, but I'm just curious if you're completely done with that.

Bill Stone: Gotcha. And then can you confirm that all your systems integration, the Fibrad colony combination, the DTX hub, that's all behind you, that's complete, or there's still a little bit more work to go? I know you're seeing some of the fruits of it now, but I'm just curious if you're completely done with that.

Anthony Stoss: Gotcha.

Bill Stone: Can you confirm that all your systems integration, the five red call and the combination, the DTX hub, that's all behind you, that's complete, or is there still a little bit more work to go? I know you're seeing some of the fruits of it now, but I'm just curious, spirit completely done with that. No, we still have a little bit to go in a variety of areas, but the lion's share of the work on the, especially on the exchange consolidation in particular, that is really helping us drive a lot of that brand growth. We've been talking a long time around how we wanted to take the leverage of the Ad Colony brand business and the five or supply business and bring those together.

Tony: Gotcha. And then, can you confirm that all your systems integration, the fiber add colony combination, the DTX hub, that that's all behind you, that's complete, or there's still a little bit more work to go? I know you're seeing some of the fruits of it now, but I'm just curious if you're completely done with that.

Bill Stone: No, we still have a little bit to go in a variety of areas, but the lion's share of the work, especially on the exchange consolidation in particular, is really helping us drive a lot of brand growth. We've been talking a long time about how we wanted to leverage the ad colony brand business and the fiber supply business and bring those together. So getting that piece done is very important for us and will also be a material driver for our future growth. That was the big one, but there's a variety of other things that are still going on here.

Bill Stone: No, we still have a little bit to go in a variety of areas, but, you know, the lion's share of the work on the, especially the exchange consolidation in particular, is really helping us drive a lot of that brand growth. You know, we've been talking a long time about how we wanted to take the leverage of the ad colony brand business and the fiber supply business and bring those together. So getting that piece done, you know, is very important for us in terms of, and also a material driver for our future growth. So that was the big one, but there's a variety of other things, you know, still going on here.

Speaker Change: No, we still have a little bit to go in a variety of areas, but the lion's share of the work, especially on the exchange consolidation in particular, that is really helping us drive a lot of brand growth. We've been talking a long time around how we wanted to leverage the ad colony brand business and the fiber supply business and bring those together. So getting that piece done is very material for us, and also be a material driver for our future growth. So that was the big one, but there's a variety of other things still going on here.

Anthony Stoss: Getting that piece done is very material for us in terms of, and also be material driver for our future growth. That was the big one, but there's a variety of other things that so-so going on here. Gotcha.

Bill Stone: Gotcha, then one last question, I'll jump back in the queue. You highlighted the EU, keep an eye on things. I know Singletap's been out there for a while in terms of alternative app platforms, but is there something coming with the European guys that you can talk about now? Do you expect to land new customers and go live potentially by the end of this year?

Bill Stone: The one last question on the jetback in the queue, you highlighted kind of the EU, keep your eye on things. I know there is something coming with the European Guides that you can talk about now? Do you expect to land new cospers and go live potentially by the end of this year? Just any more detail behind Yeah, so we expect the European situation to be a big tailwind for us, and that would obviously be good for things like single tap, no question around it. I mentioned in my remarks that we're going to see what the European Commission does as it relates to Apple.

Bill Stone: Any more detail would be helpful.

Speaker Change: Gotcha. Then one last question, I'll jump back in the queue. You highlighted kind of the EU, keep your eye on things. I know Singletap's been out there for a while in terms of alternative app platforms.

Speaker Change: Is there is there something coming with the European guys you can talk about now? Do you expect to land new customers and go live potentially by the end of this year? Just any more detail will be helpful

Bill Stone: Yeah, so, you know, we expect the European situation to be a big tailwind for us, and that would obviously be good for things like Singletap, no question about that. I mentioned in my remarks that, you know, we're going to see what the European Commission does as it relates to, you know, Apple. I think, you know, our view on that is, you know, they're not very happy right now and, you know, they're going to put some enforcement on Apple. I think the question is when.

Speaker Change: Yeah, so we expect the European situation to be a big tailwind for us and that would obviously be good for things like Singletap, no question around it. I mentioned in my remarks that we're going to see what the European Commission does as it relates to Apple. I think our view on that is they're not very happy right now and they're going to put some enforcement on Apple. I think the question is when. And then I think you're going to see that be a catalyst not just for us and our activity with the EU telcos, but I think you're going to see other mega cap tech players in a variety of folks coming in more aggressively into the EU market once that regulation comes into place.

Anthony Stoss: I think our view on that is they're not very happy right now, and they're going to put some enforcement on Apple, and the question is when. And then I think you're going to see that the catalyst, not just for us in our activity with the EU telcos, but I think you're going to see other mega-cap tech players in a variety of folks coming in more aggressively into the EU market once that regulation comes in place. Thanks Bill, thanks Bill, thanks.

Bill Stone: And then I think you're going to see that be a catalyst, not just for us and our activity with the EU telcos, but I think you're going to see other megacap tech players and a variety of folks coming in more aggressively into the EU market once that regulation comes into place.

Bill Stone: Thanks, Bill. Best of luck. Thanks, Tony. Again, if you...

Speaker Change: Thanks, Bill. Best of luck. Thanks, John .

Operator: Again, if you have a question, please press star, then one.

Operator: Again, if you have a question, please press star then 1. It appears we have no further questions. This concludes our question and answer session. I would like to turn the comments back over to Bill Stone for any closing remarks. Thanks, everyone, for joining the call.

Speaker Change: Again, if you have a question, please press star then 1.

Operator: It appears we have no further questions.

Bill Stone: This concludes our question and answer session.

Speaker Change: It appears we have no further questions. This concludes our question and answer session. I would like to turn the comments back over to Bill Stone for any closing remarks.

Bill Stone: I would like to turn the comments back over to Bill Stone for any closing remarks. Thanks everyone for joining the call tonight. We'll talk to you again at our fiscal 25 second quarter call in a few months.

Operator: Thanks, everyone, for joining the call.

Bill Stone: Thank you everyone for joining the call tonight. We'll talk to you again at our fiscal 25 second quarter call in a few months. Thanks and have a great night.

Bill Stone: Thanks everyone for joining the call tonight. We'll talk to you again at our fiscal 25 second quarter call in a few months. Thanks and have a great night.

Bill Stone: Thanks and have a great night.

Operator: Conference is now concluded. Thank you for saying today's presentation.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Operator: You may not.

Speaker Change: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.