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Digital Turbine Reports Fiscal 2024 Fourth Quarter and Fiscal Year 2024 Financial Results

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2 years ago

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Fourth Quarter Revenue Totaled $112.2 Million and Fiscal 2024 Revenue Totaled $544.5 Million

Fourth Quarter GAAP Net Loss of $236.5 Million, or GAAP EPS of ($2.32), Inclusive of a Noncash Goodwill Impairment Charge of $189.5 Million; Fourth Quarter Non-GAAP Adjusted Net Income1 of $12.6 Million and Non-GAAP Adjusted EPS1 of $0.12

Fourth Quarter Non-GAAP Adjusted EBITDA2 Totaled $12.3 Million and Fiscal 2024 Non-GAAP Adjusted EBITDA2 Totaled $92.4 Million

AUSTIN, Texas, May 28, 2024 /PRNewswire/ — Digital Turbine, Inc. (Nasdaq: APPS) announced financial results for the fiscal fourth quarter and fiscal year ended March 31, 2024.

Recent Financial Highlights:

Fiscal fourth quarter of 2024 revenue totaled $112.2 million, representing a year-over-year decline of 20% as compared to the fiscal fourth quarter of 2023.

GAAP net loss for the fiscal fourth quarter of 2024 was $236.5 million, or ($2.32) per share, as compared to GAAP net loss for the fiscal fourth quarter of 2023 of $13.9 million, or ($0.14) per share. GAAP net loss for the fiscal fourth quarter included a noncash goodwill impairment charge of $189.5 million. Non-GAAP adjusted net income1 for the fiscal fourth quarter of 2024 was $12.6 million, or $0.12 per share, as compared to Non-GAAP adjusted net income1 of $13.6 million, or $0.14 per share, in the fiscal fourth quarter of 2023.

GAAP net loss for fiscal 2024 was $420.4 million, or ($4.16) per share, as compared to GAAP net income for fiscal 2023 of $16.9 million, or $0.16 per share. GAAP net loss for fiscal 2024 included a noncash goodwill impairment charge of $336.6 million. Non-GAAP adjusted net income1 for fiscal 2024 was $60.3 million, or $0.58 per share, as compared to Non-GAAP adjusted net income1 of $117.4 million, or $1.15 per share, in fiscal 2023.

Non-GAAP adjusted EBITDA2 for the fiscal fourth quarter of 2024 was $12.3 million, as compared to Non-GAAP adjusted EBITDA2 of $23.1 million in the fiscal fourth quarter of 2023. Non-GAAP adjusted EBITDA2 for fiscal 2024 was $92.4 million, as compared to Non-GAAP adjusted EBITDA2 of $163.2 million in fiscal 2023.

New partnerships are set to add more than 70 million new devices globally.

“We are seeing encouraging real-time momentum in the marketplace that we believe validates our strategy and positions the Company for a return to growth in the new fiscal year,” said Bill Stone, CEO. “We have recently secured additional global device supply that we believe will help to offset recent headwinds as a result of decade-low upgrade-rates and selective app distribution limitations in the U.S. In addition to adding new devices, we are adding complementary new features on many existing devices, with momentum in the area of alternative app distribution. Recent wins on the media and advertiser side 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. Operationally, we have successfully modernized key product functionality and added new leadership personnel that we believe will be integral to sustained growth in the future. Our financial results reported today fail to reflect much of the real-time progress that we are making. We are increasingly convinced that we are on the right track with our overarching corporate strategy, and consequently, we are seeing signs of greater market demand for our unique product offerings that we expect will promote top-line growth, enhanced operating leverage and improved free cash flow generation for the Company in future periods.”

Fiscal 2024 Fourth Quarter Financial Results

Total revenue for the fourth quarter of fiscal 2024 was $112.2 million. Total On Device Solutions revenue before intercompany eliminations was $78.5 million. Total App Growth Platform revenue before intercompany eliminations was $34.4 million.

GAAP net loss for the fourth quarter of fiscal 2024 was $236.5 million, or ($2.32) per share, as compared to GAAP net loss for the fourth quarter of fiscal 2023 of $13.9 million, or ($0.14) per share. GAAP net loss for the fourth quarter of fiscal 2024 included a noncash goodwill impairment charge of $189.5 million.

Non-GAAP adjusted net income1 for the fourth quarter of fiscal 2024 was $12.6 million, or $0.12 per share, as compared to Non-GAAP adjusted net income1 of $13.6 million, or $0.14 per share, in the fourth quarter of fiscal 2023.

Non-GAAP adjusted EBITDA2 for the fourth quarter of fiscal 2024 was $12.3 million, as compared to Non-GAAP adjusted EBITDA2 for the fourth quarter of fiscal 2023 of $23.1 million.

Full Year Fiscal 2024 Financial Results

Total revenue for fiscal 2024 was $544.5 million. Total On Device Solutions revenue before intercompany eliminations was $370.1 million. Total App Growth Platform revenue before intercompany eliminations was $178.8 million.

GAAP net loss for fiscal 2024 was $420.4 million, or ($4.16) per share, as compared to GAAP net income for fiscal 2023 of $16.9 million, or $0.16 per share. GAAP net loss for fiscal 2024 included a noncash goodwill impairment charge of $336.6 million.

Non-GAAP adjusted net income1 for fiscal 2024 was $60.3 million, or $0.58 per share, as compared to Non-GAAP adjusted net income1 of $117.4 million, or $1.15 per share, in fiscal 2023.

Non-GAAP adjusted EBITDA2 for fiscal year 2024 was $92.4 million, as compared to Non-GAAP adjusted EBITDA2 for fiscal year 2023 of $163.2 million. The reconciliations between GAAP and Non-GAAP financial results for all referenced periods are provided in the tables immediately following the Unaudited Consolidated Statements of Cash Flows below.

Business Outlook

Based on information available as of May 28, 2024, and considering the ongoing uncertainties in the macro environment, the Company currently expects the following for fiscal year 2025:

Revenue of between $540 million and $560 millionNon-GAAP adjusted EBITDA2 of between $85 million and $95 million

It is not reasonably practicable to provide a business outlook for GAAP net income because the Company cannot reasonably estimate the changes in stock-based compensation expense, which is directly impacted by changes in the Company’s stock price, or other items that are difficult to predict with precision.

About Digital Turbine, Inc.

Digital Turbine empowers superior mobile consumer experiences and results for the world’s leading telcos, advertisers, and publishers. Its end-to-end platform uniquely simplifies its partners’ abilities to supercharge awareness, acquisition, and monetization – connecting them with more consumers, in more ways, across more devices. Digital Turbine is headquartered in North America, with offices around the world. For additional information visit www.digitalturbine.com.

Conference Call

Management will host a conference call and webcast today at 4:30p ET to discuss its fiscal 2024 fourth quarter financial results and provide operational updates on the business. The conference call will discuss forward guidance and other material information. The call can be accessed online via the webcast link: https://app.webinar.net/a58rLm9LDgx. The call can also be accessed by dialing 888-317-6003 in the United States (or 412-317-6061 from international locations) and entering access code 7883119.

A playback will be available through June 4, 2024. The replay can be accessed by dialing 877-344-7529 in the United States or 412-317-0088 from international locations, passcode 4435511.  An online webcast will be archived for a period of one year, and is available via the Investor Relations section of Digital Turbine’s website.

Use of Non-GAAP Financial Measures

To supplement the Company’s consolidated financial statements presented in accordance with GAAP, Digital Turbine uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP adjusted net income and earnings per share (“EPS”), non-GAAP adjusted EBITDA, non-GAAP free cash flow and non-GAAP gross profit. Reconciliations to the nearest GAAP measures of all non-GAAP measures included in this press release can be found in the tables below.

Non-GAAP measures are provided to enhance investors’ overall understanding of the Company’s current financial performance, prospects for the future and as a means to evaluate period-to-period comparisons. The Company believes that these non-GAAP measures provide meaningful supplemental information regarding financial performance by excluding certain expenses and benefits that may not be indicative of recurring core business operating results. The Company believes the non-GAAP measures that exclude such items when viewed in conjunction with GAAP results and the accompanying reconciliations enhance the comparability of results against prior periods and allow for greater transparency of financial results. The Company believes non-GAAP measures facilitate management’s internal comparison of its financial performance to that of prior periods as well as trend analysis for budgeting and planning purposes. The presentation of non-GAAP measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

1Non-GAAP adjusted net income and EPS are defined as GAAP net income and EPS adjusted to exclude the effect of stock-based compensation expense, amortization of intangibles, business transformation costs, transaction-related expenses, severance costs, tax adjustments, impairment of goodwill, and adjustments acquisition-related liabilities and earn-out liabilities. Readers are cautioned that non-GAAP adjusted net income and EPS should not be construed as an alternative to comparable GAAP net income figures determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP.

2Non-GAAP adjusted EBITDA is calculated as GAAP net income excluding the following cash and non-cash expenses: stock-based compensation expense, depreciation and amortization, net interest income (expense), net other income (expense), change in fair value of contingent consideration, business transformation costs, foreign exchange transaction gains (losses), income tax (benefit) provision, transaction-related expenses, severance costs, impairment of goodwill, and adjustments to acquisition-related liabilities. Non-GAAP adjusted EBITDA margin is calculated as non-GAAP adjusted EBITDA as a percentage of total revenue. Readers are cautioned that non-GAAP adjusted EBITDA should not be construed as an alternative to net income determined in accordance with U.S. GAAP as an indicator of performance, which is the most comparable measure under GAAP.

3Non-GAAP free cash flow, which is a non-GAAP financial measure, is defined as net cash provided by operating activities (as stated in our Consolidated Statements of Cash Flows), excluding transaction-related expenses, severance costs and business transformation costs, reduced by capital expenditures. Readers are cautioned that free cash flow should not be construed as an alternative to net cash provided by operating activities determined in accordance with U.S. GAAP as an indicator of profitability, performance or liquidity, which is the most comparable measure under GAAP.

4Non-GAAP gross profit is defined as GAAP income from operations adjusted to exclude the effect of product development costs, sales and marketing costs, general and administrative costs, depreciation of software, and impairment of goodwill. Readers are cautioned that non-GAAP gross profit should not be construed as an alternative to income from operations determined in accordance with U.S. GAAP as an indicator of profitability or performance, which is the most comparable measure under GAAP.

Non-GAAP adjusted EBITDA, non-GAAP adjusted net income and EPS, non-GAAP free cash flow and non-GAAP gross profit are used by management as internal measures of profitability and performance. They have been included because the Company believes that the measures are used by certain investors to assess the Company’s financial performance before non-cash charges and certain costs that the Company does not believe are reflective of its underlying business.

Forward-Looking Statements

This news release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this news release that are not statements of historical fact and that concern future results from operations, financial position, economic conditions, product releases and any other statement that may be construed as a prediction of future performance or events, including financial projections and growth in various products are forward-looking statements that speak only as of the date made and which involve known and unknown risks, uncertainties and other factors which may, should one or more of these risks uncertainties or other factors materialize, cause actual results to differ materially from those expressed or implied by such statements. These factors and risks include:

Risks Specific to our Business

We have a history of net lossesWe have a limited operating history for our current portfolio of assets.Growth may place significant demands on our management and our infrastructure.Our operations are global in scope, and we face added business, political, regulatory, legal, operational, financial and economic risks as a result of our international operations.Our financial results could vary significantly from quarter-to-quarter and are difficult to predict.A significant portion of our revenue is derived from a limited number of wireless carriers and customers.The risk of impairment of our goodwill.The effects of the current and any future general downturns in the U.S. and the global economy, including financial market disruptions.Our products, services and systems rely on software that is highly technical, and if it contains errors or viruses, our business could be adversely affected.Our business may involve the use, transmission and storage of confidential information and personally identifiable information, and the failure to properly safeguard such information could result in significant reputational harm and monetary damages.Our business and reputation could be impacted by information technology system failures and network disruptionsSystem security risks and cyber-attacks could disrupt our internal operations or information technology services provided to customers.Our business and growth may suffer if we are unable to hire and retain key talent.If we are unable to maintain our corporate culture, our business could be harmed.If we make future acquisitions, this could require significant management attention and disrupt our business.Adverse effects of negative developments affecting the financial services industry, including events or concerns involving liquidity, defaults, or non-performance by financial institutions.Entry into new lines of business, and our offering of new products and services, resulting from our investments may result in exposure to new risks.Litigation may harm out business.

Risks Related to the Mobile Advertising Industry

The mobile advertising business is an intensely competitive industry, and we may not be able to compete successfully.The markets for our products and services are rapidly evolving and may decline or experience limited growth.Our business is dependent on the continued growth in usage of smartphones and other mobile connected devices.Wireless technologies are changing rapidly, and we may not be successful in working with these new technologies.The complexity of and incompatibilities among mobile devices may require us to use additional resources for the development of our products and services.If wireless subscribers do not continue to use their mobile devices to access mobile content and other applications, our business growth and future revenue may be adversely affected.A shift of technology platform by wireless carriers and mobile device manufacturers could lengthen the development period for our offerings, increase our costs, and cause our offerings to be published later than anticipated.Actual or perceived security vulnerabilities in devices or wireless networks could adversely affect our revenue.We may be subject to legal liability associated with providing mobile and online services.Risks of public health issues, such as a major epidemic or pandemic.Risk related to geopolitical conditions and the global economy, including conflicts, financial markets, and inflation.Risk related to the geopolitical relationship between the U.S. and China or changes in China’s economic and regulatory landscape.

Industry Regulatory Risks

We are subject to rapidly changing and increasingly stringent laws, regulations and contractual requirements related to privacy, data security, and protection of children.We are subject to anti-corruption, import/export, government sanction, and similar laws, especially related to our international operations.Government regulation of our marketing methods could restrict or prevent our ability to adequately advertise and promote our content, products and services available in certain jurisdictions.Regulatory requirements pertaining to the marketing, advertising, and promotion of our products and services.Governmental regulation of our marketing methods.Privacy-related litigation and fines.

Risks Related to Our Intellectual Property and Potential Liability

Third parties may obtain and improperly use our intellectual property; and if so, our competitive position may be adversely affected, particularly if we do not, or are unable to, adequately protect our intellectual property rightsThird parties may sue us for intellectual property infringement, which may prevent or limit our use of the intellectual property and disrupt our business and could require us to pay significant damage awards.Our platform contains open source software.Indemnity provisions in various agreements potentially expose us to substantial liability for intellectual property infringement, damages caused by malicious software, and other losses.

Risks Relating to Our Common Stock and Capital Structure

We have secured and unsecured indebtedness, which could limit our financial flexibility.To service our debt and fund our other obligations and capital requirements, we will require a significant amount of cash, and our ability to generate cash will depend on many factors beyond our control.The market price of our common stock is likely to be highly volatile and subject to wide fluctuations, and you may be unable to resell your shares at or above the current price or the price at which you purchased your shares.Risk of not being able to raise capital to grow our business.Risk to trading volume of lack of securities or industry analysts research coverage.A material weakness in our internal control over financial reporting and disclosure controls and procedures could, if not remediated, result in material misstatements in our financial statements.Maintaining and improvising financial controls and being a public company may strain resources.Anti-takeover provisions in our charter documents could make an acquisition of our company more difficult.Our bylaws designate Delaware as the exclusive forum for certain disputes.Other risks described in the risk factors in Item 1A of our latest Annual Report on Form 10-K under the heading “Risk Factors” and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.

You should not place undue reliance on these forward-looking statements. The Company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Investor Relations Contact:
Brian Bartholomew
Digital Turbine, Inc.
brian.bartholomew@digitalturbine.com

 

Digital Turbine, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income

(Unaudited)

(in thousands, except share and per share amounts)

Three months ended March 31,

Year ended March 31,

2024

2023

2024

2023

Net revenue

$   112,223

$   140,118

$   544,482

$   665,920

Costs of revenue and operating expenses

Revenue share

53,551

71,629

262,226

309,247

Other direct costs of revenue

7,555

9,007

34,799

36,445

Product development

11,284

13,399

54,157

56,486

Sales and marketing

15,935

15,278

61,481

63,295

General and administrative

42,278

39,954

169,617

154,282

Impairment of goodwill

189,459

—

336,640

—

Total costs of revenue and operating expenses

320,062

149,267

918,920

619,755

(Loss) income from operations

(207,839)

(9,149)

(374,438)

46,165

Interest and other income (expense), net

Change in fair value of contingent consideration

—

—

372

—

Interest expense, net

(7,938)

(7,128)

(30,838)

(23,352)

Foreign exchange transaction gain (loss)

(54)

(431)

101

(1,026)

Other expense, net

(261)

(163)

(328)

229

Total interest and other expense, net

(8,253)

(7,722)

(30,693)

(24,149)

(Loss) income before income taxes

(216,092)

(16,871)

(405,131)

22,016

Income tax provision

20,414

(3,018)

15,317

5,146

Net (loss) income

(236,506)

(13,853)

(420,448)

16,870

Less: net (loss) income attributable to non-controlling interest

—

79

(220)

197

Net (loss) income to Digital Turbine, Inc.

(236,506)

(13,932)

(420,228)

16,673

Other comprehensive income (loss)

Foreign currency translation adjustment

(2,462)

2,258

(6,271)

(2,386)

Comprehensive (loss) income

(238,968)

(11,595)

(426,719)

14,484

Less: comprehensive income (loss) attributable to non-controlling interest

—

81

519

415

Comprehensive (loss) income attributable to Digital Turbine, Inc.

$ (238,968)

$   (11,676)

$ (427,238)

$     14,069

Net (loss) income per common share

Basic

$       (2.32)

$       (0.14)

$       (4.16)

$         0.17

Diluted

$       (2.32)

$       (0.14)

$       (4.16)

$         0.16

Weighted-average common shares outstanding

Basic

101,974

99,273

100,975

98,783

Diluted

101,974

100,712

100,975

101,816

 

Digital Turbine, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands, except par value and share amounts)

March 31, 2024

March 31, 2023

(Unaudited)

ASSETS

Current assets

Cash

$               33,605

$             75,558

Accounts receivable, net

191,015

178,189

Prepaid expenses

7,704

8,589

Other current assets

10,017

3,730

Total current assets

242,341

266,066

Property and equipment, net

45,782

39,327

Right-of-use assets

9,127

10,073

Intangible assets, net

313,505

379,632

Goodwill

220,072

561,576

Other non-current assets

34,713

9,882

TOTAL ASSETS

$             865,540

$        1,266,556

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable

$             159,200

$           119,338

Accrued revenue share

33,934

69,221

Accrued compensation

7,209

10,984

Other current liabilities

35,681

21,377

Total current liabilities

236,024

220,920

Long-term debt, net of debt issuance costs

383,490

410,522

Deferred tax liabilities, net

20,424

13,940

Other non-current liabilities

11,670

13,919

Total liabilities

651,608

659,301

Commitments and contingencies

Stockholders’ equity

Preferred stock

Series A convertible preferred stock at $0.0001 par value; 2,000,000 shares authorized, 100,000 issued and
outstanding (liquidation preference of $1)

100

100

Common stock

$0.0001 par value: 200,000,000 shares authorized; 102,877,057 issued and 102,118,932 outstanding at
March 31, 2024; 100,216,494 issued and 99,458,369 outstanding at March 31, 2023

10

10

Additional paid-in capital

858,191

822,217

Treasury stock (758,125 shares at March 31, 2024 and March 31, 2023)

(71)

(71)

Accumulated other comprehensive loss

(48,955)

(41,945)

Accumulated deficit

(595,343)

(175,115)

Total stockholders’ equity

213,932

605,196

Non-controlling interest

—

2,059

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$             865,540

$        1,266,556

 

Digital Turbine, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in thousands)

Three months ended March 31,

2024

2023

Cash flows from operating activities:

Net (loss) income

$        (236,506)

$          (13,853)

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

Depreciation and amortization

20,924

20,926

Non-cash interest expense

(531)

217

Allowance for credit losses

627

319

Stock-based compensation expense

6,743

10,758

Right-of-use asset

361

793

Deferred income taxes

15,909

(3,545)

Foreign exchange transaction (gain) loss

54

(1,607)

Impairment of goodwill

189,459

—

(Increase) decrease in assets:

Accounts receivable, gross

25,176

51,077

Prepaid expenses

2,920

1,595

Other current assets

(220)

17,809

Other non-current assets

(190)

(736)

Increase (decrease) in liabilities:

Accounts payable

108

(34,718)

Accrued revenue share

(32,119)

(5,678)

Accrued compensation

(111)

(5,097)

Other current liabilities

(2,628)

(21,828)

Other non-current liabilities

(1,732)

(570)

Net cash provided by (used in) operating activities

(11,756)

15,862

Cash flows from investing activities

Equity investments

(9,956)

(4,499)

Capital expenditures

(6,895)

(5,260)

Net cash used in investing activities

(16,851)

(9,759)

Cash flows from financing activities

Proceeds from borrowings

25,000

7,500

Payment of debt issuance costs

—

(5)

Repayment of debt obligations

(15,000)

(19,500)

Payment of withholding taxes for net share settlement of equity awards

(110)

(507)

Options exercised

85

925

Net cash provided by (used in) financing activities

9,975

(11,587)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

2,772

1,181

Net change in cash and cash equivalents and restricted cash

(15,860)

(4,303)

Cash and cash equivalents and restricted cash, beginning of period

49,465

79,861

Cash and cash equivalents and restricted cash, end of period

$            33,605

$            75,558

 

REVENUE BY SEGMENT

(in thousands)

(Unaudited)

Three months ended March 31,

Year ended March 31,

2024

2023

% Change

2024

2023

% Change

On Device Solutions

$           78,504

$           96,909

(19) %

$         370,112

$         420,328

(12) %

App Growth Platform

34,437

44,966

(23) %

178,760

252,995

(29) %

Elimination

(718)

(1,757)

(59) %

(4,390)

(7,403)

(41) %

Consolidated

$         112,223

$         140,118

(20) %

$         544,482

$         665,920

(18) %

 

GAAP (LOSS) INCOME FROM OPERATIONS TO NON-GAAP GROSS PROFIT

(in thousands)

(Unaudited)

Three months ended March 31,

Year ended March 31,

2024

2023

2024

2023

Net revenue

$      112,223

$      140,118

$      544,482

$      665,920

(Loss) income from operations

(207,839)

(9,149)

(374,438)

46,165

Add-back items:

Product development

11,284

13,399

54,157

56,486

Sales and marketing

15,935

15,278

61,481

63,295

General and administrative

42,278

39,954

169,617

154,282

Depreciation of software included in other direct costs of revenue

208

1,694

4,045

6,275

Impairment of goodwill

189,459

—

336,640

—

Non-GAAP gross profit

$        51,325

$        61,176

$      251,502

$      326,503

Non-GAAP gross profit percentage

46 %

44 %

46 %

49 %

GAAP NET (LOSS) INCOME TO NON-GAAP ADJUSTED NET INCOME

(in thousands)

(Unaudited)

Three months ended March 31,

Year ended March 31,

2024

2023

2024

2023

Net (loss) income

$    (236,506)

(13,853)

$    (420,448)

$        16,870

Add-back items:

Stock-based compensation expense

6,743

10,758

33,763

30,401

Amortization of intangibles

16,039

16,126

64,321

64,608

Adjustment to estimated earn-out liability

—

—

(372)

—

Tax adjustment (1)

33,817

—

33,817

—

Business transformation costs

2,127

—

9,418

—

Transaction-related expenses

177

859

338

4,739

Severance costs

710

1,066

2,795

2,176

Impairment of goodwill

189,459

—

336,640

—

Adjustment to acquisition-related liabilities

—

(1,346)

—

(1,346)

Non-GAAP adjusted net income

$        12,566

$        13,610

$        60,272

$      117,448

Non-GAAP adjusted net income per common share

$            0.12

$            0.14

$            0.58

$            1.15

Weighted-average common shares outstanding, diluted

103,451

100,712

103,928

101,816

(1) Valuation allowance

 

GAAP NET (LOSS) INCOME TO NON-GAAP ADJUSTED EBITDA

(in thousands)

(Unaudited)

Three months ended March 31,

Year ended March 31,

2024

2023

2024

2023

Net (loss) income

$        (236,506)

$          (13,853)

$       (420,448)

$           16,870

Add-back items:

Stock-based compensation expense

6,743

10,758

33,763

30,401

Depreciation and amortization

20,924

20,926

83,858

81,073

Interest expense, net

7,938

7,128

30,838

23,352

Other expense, net

261

163

328

(229)

Change in fair value of contingent consideration

—

—

(372)

—

Business transformation costs

2,127

—

9,418

—

Foreign exchange transaction (gain) loss

54

431

(101)

1,026

Income tax provision

20,414

(3,018)

15,317

5,146

Transaction-related expenses

177

859

338

4,739

Severance costs

710

1,066

2,795

2,176

Impairment of goodwill

189,459

—

336,640

—

Adjustment to acquisition-related liabilities

—

(1,346)

—

(1,346)

Non-GAAP adjusted EBITDA

$            12,301

$            23,114

$           92,374

$         163,208

 

GAAP CASH FLOW FROM OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW

(in thousands)

(Unaudited)

Three months ended March 31,

2024

2023

Net cash provided by (used in) operating activities

$          (11,756)

$            15,862

Capital expenditures

(6,895)

(5,260)

Transaction-related expenses

177

859

Severance costs

710

1,066

Business transformation costs

2,127

—

Non-GAAP free cash flow provided (used) by operations

$          (15,637)

$            12,527

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/digital-turbine-reports-fiscal-2024-fourth-quarter-and-fiscal-year-2024-financial-results-302157072.html

SOURCE Digital Turbine, Inc.

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Monster Energy and Call of Duty® Take Over Cosm Los Angeles for Immersive Modern Warfare® 4 Launch Celebration

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10 minutes ago

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October 25, 2026

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Celebrities, athletes and creators came together for an action-packed night of gaming, immersive entertainment and exclusive experiences on Cosm’s massive Shared Reality Display. 

INGLEWOOD, Calif., Oct. 25, 2026 /PRNewswire/ — Monster Energy transformed Cosm Los Angeles into the ultimate gamer’s destination on Friday night as fans came together to celebrate the highly anticipated launch of Call of Duty®: Modern Warfare® 4 at an immersive event fueled by Monster Energy.

Set against Cosm’s spectacular 87-foot-diameter, 12K+ LED dome, the Monster Energy x Call of Duty celebration brought the action of one of gaming’s most anticipated franchises into the real world. Guests experienced live gameplay, special celebrity appearances, interactive activations, and real-life displays inspired by the game, including the Monster Energy Operator Skin, alongside a lineup of Polaris vehicles including the DAGOR, which is playable in Modern Warfare 4 – all in an electrifying atmosphere that blurred the lines between gaming and reality.

The event drew a guest list spanning entertainment, sports and gaming, including actors O’Shea Jackson Jr., Trevor Jackson and Khleo Thomas, who arrived by Slingshot, rapper Symba, social media star Lin Lamar (Pinkchyu), and Monster Energy UFC fighters Johnny Walker and Jalin Turner.

Guests lined up around the block for a jam-packed program, featuring a live edition of The Flank, hosted by ZooMaa and Ben Nissim, including an interview with Infinity Ward developer Jacky Reynolds and the reveal of the CDL Launch Invitational groups. Fans also got a closer look at Modern Warfare 4’s DMZ mode during a gameplay showcase led by Infinity Ward game designer Roman Spazafumo.

The gaming action continued with artists, athletes and gaming creators, including Jericho, Jaybroski, Tyler Rizzi, Johnny Walker and LAFC’s Denis Bouanga, facing off in two-versus-two matchups, while fans tested their own skills in king-of-the-hill rounds. Monster Energy’s skate team also took to the virtual battlefield, swapping their boards for controllers, with Ishod Wair, Filipe Mota and Elliot Sloan going head-to-head in a Modern Warfare 4 showdown.

“With Call of Duty, we’re always looking for ways to push the experience beyond the screen,” said Jordi Gayola, CMO of the Americas at Monster Energy. “Bringing this launch to Cosm gave us an incredible opportunity to put fans, athletes and creators right in the middle of the action. It’s about bringing our worlds together and creating the kind of unforgettable experience that only Monster Energy can deliver.”

Beyond the main gameplay, fans enjoyed exclusive merchandise giveaways and immersive experiences, while the Modern Warfare 4-themed experience extended to the menu, which featured Korean-inspired dishes including kimchi mandu, Korean corn cheese nachos, and gochujang-glazed wings, alongside complimentary Monster Energy throughout the venue.

The launch also spotlighted Monster Energy’s ongoing Call of Duty promotional partnership, running through March 31, 2027. Fans can earn 15 minutes of Double XP per qualifying Monster Energy Original Green, Zero Sugar or Zero Ultra can, alongside exclusive in-game rewards, including a Large Decal, two weapon blueprints and two Operator Skins unlocked across the first five cans. The collaboration also extends beyond the game through four Monster Energy x Polaris vehicle sweepstakes at participating 7-Eleven, Hy-Vee, QuikTrip and RTG stores, with entry via retailer-specific QR codes in-store.

For more information on the Monster Energy x Call of Duty partnership, promotion and rewards, visit callofduty.monsterenergy.com.

Images from the Monster Energy Call of Duty®: Modern Warfare® 4 Launch Day are available HERE. 

Photo Credit: Randy Shropshire/Getty Images for Monster Energy.

About Monster Energy
Based in Corona, California, Monster Energy is a leading marketer of energy drinks and alternative beverages. Known for its connection to action sports, motorsports, music, gaming and athletes around the world, Monster Energy fuels the passions of its fans through products, partnerships and experiences that bring communities together. For more information, visit MonsterEnergy.com.

Media Contact:
press@monsterenergy.com 

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SOURCE Monster Energy

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Come Back to Firefox: Mozilla launches its most ambitious campaign yet to bring people back to the independent alternative to big tech browsers

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1 hour ago

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October 25, 2026

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As tracking and unwanted AI reshape the web, Firefox reunites the internet’s original viral icons to make the case for a browser that puts people back in control.

SAN FRANCISCO, Oct. 25, 2026 /PRNewswire/ — In its new campaign, Come Back to Firefox, the independent browser by Mozilla reunites personalities behind some of the early internet’s biggest viral videos and memes for one simple message: The internet you loved is still here, and Firefox is the easiest way back.

This multi-market campaign is aimed at people who once used Firefox and left. While it nods to the past, Firefox continues to evolve, giving people more reasons to love and rediscover it today. It arrives after a transformative year for the browser:

Business growth and partnerships: A dedicated Enterprise browser giving organizations expert support and control over their data. Technical partnerships with NVIDIA and Mistral, extending what Firefox can do from gaming to AI.

Increased protection and control: New products and features shipped including a free built-in VPN to help keep browsing private, with no extra download or cost. AI Controls, to let people decide when and whether to use AI, and an Ad Blocker for Firefox on iOS for fewer ads and trackers.

Brand and culture: A new modern design, a first sports partnership with Wrexham AFC and World Cup presence connecting Firefox to one of the year’s biggest cultural moments.

“Firefox was there then, we’re here now, and what we stand for matters more than ever,” said John Solomon, Chief Marketing Officer at Mozilla. “People who left Firefox years ago will find a browser that’s more private and gives them more control, including over AI.”

The Campaign

Come Back to Firefox brings together some of the world’s most memorable internet icons: Numa Numa Guy, Bad Luck Brian, Overly Attached Girlfriend, Kelly of “Shoes” fame, Where the Hell Is Matt?, Annoying Orange, Apparently Kid, Tay Zonday, Chuck Testa, Success Kid, and Evolution of Dance. Each takes on a modern frustration with humor:

Overly Attached Girlfriend may have wanted to know everything about you, but your browser shouldn’t.Dancing Matt boogied all over the world, without any corporations tracking him or selling his personal data.And while Annoying Orange is still incredibly annoying, he’s not as annoying as forced AI features.

The campaign launches in the United States Sunday, October 25th, with two distinct 30-second commercials airing on NBC. Next, it rolls out in Germany, France, and the United Kingdom.

“Being on set was a reminder of why those moments mattered,” said Solomon. “Ordinary people making things on the internet that made it feel so surprising and fun, and that’s the feeling we wanted to bring back.”

The campaign was created by award-winning independent agency We Believers, and brought to life by directing collective Sunny Sixteen and production company nobodys. Together, they meticulously recreated each performance, look, and even the sets from the original videos, taking each internet personality back to where their story began.

“We wanted an idea that truly belongs to Firefox, a challenger browser that helped shape the internet’s golden years and stayed independent as Big Tech took over,” said Gustavo Lauria, Founder and CCO at We Believers.

The campaign is one of Firefox’s most ambitious yet but is rooted in what has always set the browser apart from Big Tech: its commitment to putting people before profits and giving them more control over their online experience. Now, Firefox says it’s never been a better time for people who once used the browser to take another look.

About Firefox

Firefox is a web browser developed by Mozilla, built to give people more choice and control over their online experience. With built-in tracking protection, customization options, and a commitment to an open internet, Firefox offers an alternative to browsers developed by the world’s largest technology companies. Learn more at firefox.com/welcomeback.

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SOURCE Mozilla

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Best AI Tools for Small Business Marketing (2026): CapCut Featured for Creating Professional Video and Visual Content by Expert Consumers

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2 hours ago

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October 25, 2026

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NEW YORK, Oct. 25, 2026 /PRNewswire/ — Expert Consumers has recognized CapCut in its 2026 coverage of the best AI tools for small business marketing, highlighting the platform’s collection of AI-powered features for creating and editing video, images, audio, and other visual content. The recognition reflects growing interest in tools that support practical marketing activities, including campaign development, promotional content production, and adapting creative assets for different digital channels.

Best AI Marketing Tools

Seedance 2.0 – an AI video generation model that creates videos from text prompts or imagesSeedream – an AI image generation model that creates high-quality visuals from text prompts

Small businesses face growing pressure to maintain an active digital presence while managing limited time and resources. From product photography and promotional videos to social media graphics and campaign materials, effective marketing depends on a steady supply of relevant, engaging content. Artificial intelligence is creating new ways to simplify these tasks and help businesses turn creative ideas into usable marketing assets.

CapCut provides a range of AI-assisted capabilities that support several stages of content production. These include prompt-based video generation, AI image creation, background removal, image expansion, music generation, and photo animation. For small businesses managing marketing internally, these functions offer options for developing creative assets without relying entirely on manual production processes.

AI Video Generation Supports Promotional Campaigns

Video is an important format for demonstrating products, explaining services, and introducing new offerings. Small businesses can use video across social media, websites, digital advertisements, and online product pages. Producing content regularly, however, can require considerable planning and editing.

CapCut’s Seedance 2.0 AI video generator offers a prompt-based approach to video creation. Users can describe a creative concept and generate video content that serves as a starting point for further editing.

For a small retailer preparing a product promotion, AI-generated video can help explore different visual approaches before a final concept is selected. A service provider could use the same process to develop ideas for an explainer or an introductory campaign.

Prompt-based generation can reduce the effort involved in developing initial concepts. Generated material still requires review to ensure the finished video accurately represents the business, communicates the intended message, and follows relevant brand guidelines.

AI Image Creation Helps Develop Marketing Materials

Visual content plays a central role in how businesses present products and services online. Promotional graphics, campaign imagery, and social media visuals need to communicate a clear message while maintaining a recognizable style.

CapCut’s Seedream AI image generator enables users to generate images from text prompts. The tool can support concept drafts, campaign planning, and experimentation with different visual directions before final assets are prepared.

For example, a small business planning a seasonal campaign could explore different visual themes and compositions during the early planning stage. These drafts can help establish a creative direction before additional time is spent refining the final materials.

CapCut’s GPT Image 2 provides another option for generating images from natural language instructions. The feature can support the development of promotional imagery, marketing graphics, and other visual assets.

AI image generation gives businesses more opportunities to test creative ideas during campaign development. However, generated images should be checked for visual errors, accurate product representation, and consistency with the intended brand identity before publication.

Image Editing Simplifies Content Preparation

Creating new marketing assets is only part of the production process. Existing photographs and graphics often need adjustments before they are suitable for different platforms.

CapCut’s AI background removal tool helps isolate subjects from their original backgrounds. This can simplify the preparation of product photographs, promotional graphics, and other images that require a different visual setting.

For a small retailer, background removal can make it easier to prepare product images for online listings or promotional materials. Separated subjects can be incorporated into new compositions without recreating the entire image.

The AI Image Extender addresses a separate challenge: adapting images to different dimensions. The tool generates additional visual content beyond an image’s original boundaries, helping users adjust compositions without relying entirely on cropping or stretching.

A campaign may require square graphics for social media, vertical visuals for mobile viewing, and horizontal banners for a website. Image expansion provides another option for adapting existing assets to those formats.

These editing capabilities can help reduce repetitive production work while supporting a more consistent presentation across marketing channels.

AI Audio and Photo Animation Expand Creative Options

Marketing content often combines visuals, movement, and sound. Music can establish a mood, support storytelling, and help create a more complete video presentation.

CapCut’s SeedMusic AI audio generator supports AI-assisted music creation based on prompts. The feature can help develop audio for promotional videos, product demonstrations, and social media content.

Generated music offers a starting point for matching audio to a campaign’s intended atmosphere. Before publication, businesses should review the output and confirm that the applicable usage terms cover the intended commercial application.

CapCut also provides a Photo-to-3D tool that transforms still images into more dynamic visual presentations. This capability can help repurpose existing photography for promotional videos, social posts, and digital campaigns.

For small businesses with an existing collection of product images, adding movement can provide another way to present familiar assets. The approach also expands the range of creative formats available without requiring every campaign to begin with new photography.

Connecting AI Tools to Everyday Marketing Workflows

The practical value of AI-powered creative tools depends on how effectively they address specific marketing needs. Small businesses do not necessarily need every available feature for every campaign. Selecting tools according to content requirements can help keep production focused.

A retailer might begin with Seedream to explore campaign concepts, then use GPT Image 2 to generate supporting visuals. Background removal can help prepare product photography, while AI Image Extender can adapt selected assets to different layouts. Seedance 2.0 can support video concept development, with SeedMusic offering an option for accompanying audio.

A service-based business might prioritize short promotional videos, explanatory graphics, and social media content instead. The same collection of tools can support different production requirements depending on the business model and campaign objectives.

Using AI does not remove the need for creative direction or quality control. Content should be checked for factual accuracy, appropriate product representation, brand consistency, and compliance with advertising requirements. Human review also helps ensure that generated assets serve a clear marketing purpose rather than adding unnecessary material to a campaign.

AI-Assisted Marketing for Small Businesses

Interest in the best AI tools for small business marketing reflects the need for practical ways to produce and adapt digital content. Businesses must balance the demand for regular campaign updates with the resources available for creative production.

Expert Consumers’ recognition of CapCut highlights the platform’s range of AI-assisted functions for video generation, image creation, editing, audio production, and photo animation. These capabilities offer small businesses several options for developing marketing materials across digital channels.

As AI becomes more integrated into content production, effective use will depend on matching the right tools to specific tasks. With clear campaign objectives, careful editing, and appropriate review, CapCut’s creative features can help businesses develop marketing assets while reducing some of the repetitive work involved in preparing content for publication.

Visit the Expert Consumers site for the full review.

About CapCut

CapCut is an AI-powered photo and video editing platform designed to make high-quality video creation accessible across devices. The platform supports creators, businesses, and everyday users with tools for video editing, AI video generation, captions, templates, audio, and visual editing. CapCut is available across mobile, web, desktop, and iPad experiences, helping users create, edit, and prepare video content for social media, marketing, education, and personal projects.

About Better Business Advice: Better Business Advice covers the news and strategies driving modern business success. The information provided by Better Business Advice does not, and is not intended to, constitute legal advice; instead, all information, content, and materials are for general informational purposes only. As an affiliate, Better Business Advice may earn commissions from services mentioned in the links provided.

View original content:https://www.prnewswire.com/news-releases/best-ai-tools-for-small-business-marketing-2026-capcut-featured-for-creating-professional-video-and-visual-content-by-expert-consumers-302918043.html

SOURCE ExpertConsumers.org

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