Digital Turbine, Inc. Q1 FY2026 earnings call

• Revenue for the quarter was $130.9 million, with 11% year-over-year growth and $25.1 million in adjusted EBITDA, up 73% year-over-year.
• Key drivers of performance include higher advertiser demand leading to improved pricing and fill rates, increased device volumes in North America and selected international markets, and progress on first-party data and AI machine learning platform.
• Strategic progress includes branding first-party data as DT Ignite and AI machine learning platform as DTiQ. Brand engagement on the platform increased, with nearly 50% quarter-over-quarter growth in campaigns contributing to brand revenue.
• Regulatory momentum is accelerating globally, with the company joining coalitions to ensure an open mobile marketplace.

The company has two main segments. The On Device Solutions (ODS) business generated $95.4 million in revenue, which is approximately 73% of the total revenue of $130.9 million, up 18% from the June quarter of last year. The Application Growth Platform (AGP) segment posted $36.3 million in revenue, which is about 27.7% of the total revenue, down 5% year-over-year but up 9% sequentially from the fiscal fourth quarter.

• Raised full-year revenue guidance to $525 million to $535 million.
• Raised adjusted EBITDA guidance to $90 million to $95 million, representing increases of $10 million in revenue and $5 million in EBITDA compared to prior outlook.

• Forward-looking statements are based on current assumptions and not guarantees of future performance. Actual results may differ due to various factors, as detailed in SEC filings.

Q: On the international carrier strength and RPD side on the international business, is it a combination of new international customers or better take rates?

A: It was driven by better device volumes and better RPDs, with stronger demand coming into geographies from other geographies helping drive better RPDs.

Q: Can you talk about the longevity of the brand revenue business?

A: There's more diversification with nearly 50% increase in brand advertisers from more verticals, and they're playing a long game with mobile first strategy.

Q: On the AGP business, what needs to happen to bring it back to year-over-year growth?

A: Performance side of the business is key, with work on first-party data and AI machine learning algorithms being important for demand side to drive top line growth.

Q: Any timeline on performance DSP work?

A: Progress and timelines will be communicated in future calls, with connection of performance DSP to first-party data and AI being key for improved top line performance.

Q: How does device sales turnaround affect DT going forward?

A: Helps in macro trend turning from headwind to tailwind and growing share by getting technology on more devices.

Q: Where is growth coming from geographically?

A: AGP has growth in Asia and Europe; ODS has growth in EU and Latin America in the US.