Digital Turbine, Inc. — Call Transcript 2026

... Try to dig into. ... Of year-over-year, it was 20% before that. The overall market's growing high single digits. We're outgrowing the market, meaning we're stealing share from others out in the marketplace in that business. That's been both in terms of rates that advertisers are paying, meaning the platform's working for them, and I'm sure we'll get into some data on it a little bit. The second part is the volume, meaning the actual number of supply that we're able to have. The increase in both rate and volume is really driving that growth for us. There's a lot of things contributing to the overall story at the top line. Very cool. I love it. I know you talked about your two businesses. There are synergies across those segments. Over the next 12, 24 months, are there new incremental growth drivers that investors should think about? It's perfectly fine to say more of the same, and we have a lot of runway to do that, and we are just getting started. That's also a valid answer. Is there something new, incremental, in your opinion, that could start to become noticeable in the next 18 months or so? Yeah. When we think about what are our priorities for growth in the business, we don't have 100 things. We don't have one thing. We have five things that internally we talk about consistently, and so we're doing more of that with investors and being very transparent with, these are the five things that we're investing in that are going to be growth drivers to continue the momentum above and beyond the momentum we've already been able to generate. Number one for us is data. We've got an enormous amount of first-party data with our device business that helps feed our ad tech business. That's an enormous opportunity that's showing up in our results. I'm sure as we get into AI and other things later in this conversation, I'll talk more about that. Really leveraging our unique data is a very strategic asset to drive growth. The second one for us is our brand business is growing really nice right now. Our brand business is up 50% year-over-year. We're starting to see our in-app being a channel for brand advertisers versus just CTV like Netflix or Max or retail media like Amazon or Walmart or what have you. We're seeing this in-app brand channel really growing. That's the second thing for us. The third is our flywheel. In other words, how do we get all the monetization of the advertising inside apps to feed back, acquiring more users, and then that intends to drive more monetization, and it feeds itself as a flywheel. Really being able to continue to grow that business for us. The fourth thing for us is our Ignite business and growing that with more device supply and more services. We announced, for example, Orange as a new EU account a few weeks ago. Continuing to add more supply, also we've got other services that we're launching on that above and beyond app delivery. The final thing for us that's really more of a long-term driver, but something where the upside is enormous, is in alternative applications. Yeah. This is really the ability to deliver applications that are not necessarily Apple or Google versions of apps. That's $100 billion of free cash today that goes to Apple and Google for the 30% tax that they take off these applications. Whether Digital Turbine exists or not, that's going to get disrupted, and we think we're uniquely positioned to capture that. Awesome. Many layers to unpack there, but I do want to address two or three topics that I've asked each of the execs in this Ad-Tech summit, just to get a thematic point of view from you, Bill. I guess, maybe you already answered this, but more kind of directly asking about how does AI manifest in your P&L today? If investors wanted to point to one or two things, I know obviously your fundamentals are improving, but from a kind of product standpoint or a customer offering standpoint last 12 months, where is it that you think you have invested that is resulting in a positive ROI with AI in mind? Yeah. AI is a tailwind for our business, I think I've seen it shift over the last three to six months with investors now seeing that. When we had the SaaS apocalypse that was going on months ago, it was, oh my God, AI is going to destroy business. It's going to destroy your business. Nobody's going to need apps anymore. That's completely not true. It's the opposite that we're seeing, it benefits us in three ways. The first way it benefits us is it just runs our business more efficiently. For example, we were able to generate a $70+ million increase in revenue year-over-year, and we did that with 4% less headcount. We did that with less cash operating expense. The only way that you're able to grow your revenues and still be able to do that with less people and less cash against it, is because you're driving efficiencies with AI. We use AI in our business on a lot of our back office and things that aren't necessarily exciting, but become more efficient for us. We use AI with our quality assurance. We use AI in our software coding. I mean, we can go down a whole litany of examples of how we use AI to drive efficiency. That's way one. Not the most sexy part, but important in terms of... Yes. ... EBITDA and free cash. Second thing we do is to drive more revenue and growth in the business because we have all this great data, which is the raw materials, and you can have great AI, but AI is only great if you have great data feeding into it. It becomes garbage in, garbage out. But we have got great ingredients with our data to feed into our AI and machine learning platform. We brand that as DT IQ. That is able to then use machine learning to then use the data on device to generate better outcomes for advertisers and end users, which therefore generates more revenue. Part of the revenue growth we just talked about in terms of the rates going up 50% year-over-year in our ad tech business would not be able to be done if we didn't have better data and better AI delivering those outcomes. The third way, which is much more strategic, is we're seeing this trend in the macro environment where the open web is getting crushed right now by AI. The days of me having a cough, I'm coughing and I type into Google, and I say, okay, what's going on? Then you see these links for something like WebMD, and you'll see an ad for Vicks on that website. That's gone. Those brand dollars have gone. People now are spending more time in apps. You've seen the amount of time in apps go up by more than an hour per day over the past decade. That's accelerating. You've seen the number of app submissions in the App Store go up 40%. It'd been pretty consistent for a long time, and you see this big spike now of apps going up 40% year-over-year. The reason for that is it's easy to submit apps now. People can vibe code, and people can get submissions. The question is, you have this huge submission in applications, how the heck are you going to get users? How are you going to monetize these things? I'm spending more time in apps. The idea for companies like Digital Turbine that are in the user acquisition business, that can go help these companies acquire users, versus the only discovery being on your screen of your Google Play or your Apple App Store. You've got another way to acquire users, and there's more competition for those users, which means more dollars being spent for those users. That really opens up a nice tailwind for our business, too. Those are some specific ways that AI's helping us. Okay. I guess just to this idea of token maxing and people are spending too much money on tokens, you have any opinion on that? How are your engineers handling that kind of crunch versus being very efficient? Yeah, I absolutely believe that there's a supply chain crunch that's coming with AI. We've already seen it in the marketplace today, every single technology business, I talk with our CTO about this frequently, which is we want everybody to run Embrace AI. We want to do things, we want to trial, we want to experiment. Because of the GPU shortages that are going on, it's creating price increases for people then to inefficiently use the tokens, which is creating a cost issue for companies. You want to make sure that you really understand what the ROI is going in before you do that, because there's the risk in the short term that many companies will have a double bubble of expenses where you're investing all this AI and token expense on the right hand, but you still haven't seen the efficiencies, and you have all the other people and other investments you're making on the left hand. I think that'll be something to keep an eye out. We're very disciplined in how we think about that and how we use our tokens and what tools we use, and not spread ourselves too thin so we can keep really a lot of focus. You've seen some announcements over the last few weeks from us in terms of different relationships and partnerships to this degree, that we're using companies to do that. Yeah, token maxing is absolutely an issue because GPU shortages are a reality. Okay. I like it. Moving on to your data advantage. I know you talked about your on-device data advantage. Maybe simplify, how does that create synergies across your two segments, and how should investors who are new to the story dig into that? People have followed how SSPs and your acquisition played into that, but just maybe call that out as to what is creating that kind of data advantage that is very hard to replicate, given your on-device signals, your SSP, and just overall. Yeah. One of the things that we know in ad tech, and we can get into a lot of the acronyms and alphabet soup of everything for the investors that want to go second level on some of the specifics. At the end of the day, you want to be able to drive performance and return on ad spend for advertisers in the most efficient way. The way to do that, who has the best data? Obviously companies like Google are known to have great data. Companies like Meta are known to have great data, and we have great data on device as well that other people don't have. Those are incremental signals that the marketplace may not have. Those signals that we get from our on-device business, and those signals could be what apps are on your device, how long have you spent in certain apps, what apps are you using that may be relevant for others, what apps have you deleted? Obviously, where are you? All these different signals that come in that maybe the general market that's bidding on an ad impression, they don't have that information. The people with the best signals are going to generate the best return on ad spend, and therefore can command the better rates to drive better return on ad spend for those customers. I think that's a really big driver for us. As you saw, our rates were up over 40%+ year-over-year. You're not able to deliver better rates for your users if you're not delivering better data with better data signals. Yep. Okay. Are there new categories of data sets or new types of data that become even more valuable for some AI models that you need to train on going forward? Yeah, I think for us, it's not necessarily incremental data, like there's a new signal. It's more of how do we take all of the signals. Here we are, we have all of our ad tech on 3 billion-ish devices around the world today, and those generate signals. We have signals from our different on-device business, how do we integrate that? Again, some of the announcements you saw from us the last few weeks are steps in how we're doing that, how we integrate that data, then get the interplay of all of these different signals that we are able to get to deliver better outcomes depending upon what situation we're in. That's really the name of the game here on it. We've got the raw materials, which is more than half of the battle. I see. Okay. Is there anything particular around your carrier relationships or OEM relationships that make it even harder to replicate? Yeah. I think one thing about our OEM and carrier relationships, I always say the bad news about those relationships is they take a long time. Yeah. The process to bring new carriers and OEMs on tends to take years in many cases. For example, we announced our Orange deal a few weeks ago, but we had been talking to them for many years. Yeah. It didn't just happen. The barriers to entry are really high, which is a negative, but conversely, the barriers to exit are also high because in order to make the investment to put technology on device, and it's important to know, once your technology's on device for a service, unlike in general ad tech, we in effect their decision makers. There's not the same level of competition, and that's one of the unique advantages of having your tech on device. For us, it's about playing the long game and getting those investments to get new devices and new supply into the marketplace. Knowing that then those relationships are very sticky over time. Okay. Very cool. I have to ask you about agentic AI, headless software, all those kind of cool things that are happening in the last four months. You talked about SaaS or CapEx, whatever it is. Anyhow, you get the point. What is your feeling about this ability for software without user interface to do everything that an advertiser needs to do? Where does Digital Turbine fit into that in such a future? Yeah. I think context matters here. We can go back in time and people actually used to exchange paper tickets and buy and advertising back and forth, right? Yeah. Digital came in and specs like OpenRTB came ways for different demand and supply to communicate and talk to each other with some common standards to help automate the process. You still needed buyers and sellers and budgets and everything on both sides. We're in the early days, top of the first inning on different elements of agentic now where you can have an agentic buyer and an agentic seller going back and forth, and you'll hear technology of things like AdCP that steps up on top of MCP protocols that are basically the AI's version of OpenRTB. OpenRTB is the digital version of the old ticket exchange, right? These are just different ways to automate and facilitate buying and selling. Within that, you need to have buyers and sellers that are seeing and talking to each other. That market is really, really small today. There used to be an expression of dollars for pennies in terms of when digital first started. Now they're not even pennies in AI. You've seen a lot of companies get investors excited with PR of, hey, we're doing this trial with this AI company. When you actually unpack and talk about the budgets, they're not 7-figure, and in many cases they're barely 6-figure budgets. You have to put a lot of energy into something that isn't necessarily moving the needle in the very short term. I think the timing on a lot of this is important because most of the people spending the money on the advertising side have a lot of issues to figure out in terms of the ROAS, the customer control, the attribution. Anyway, there's all these different issues that will get sorted out as time goes on, this will be another way that inventory gets bought and sold. Again, for a company like us at Digital Turbine, we have inherent advantages. Number one, we're a distribution company. We can help these people find. Two is we have the data to help facilitate making these agents buy and sell things easier. We also don't want to get over our skis where we've got a lot of momentum in where the money is today, and we don't want to chase something that may be still a little bit out there and a little bit still in its infancy with a lot of technical, operational, and business issues still to sort out. I guess that's a fair answer. Is there an argument to be made that wherever there's a human in the loop, perhaps in the agency side or wherever, some of that value could actually accrete to agentic platform, and if you build it right, then you could actually do most of the value that the agencies have been allowed to create? I think that there's absolutely going to be disruption, just like OpenRTB disrupted things where there'll absolutely be disruption in companies. If you're not adding value then you're going to get disrupted if you want to take a longer term view. Again, I'll keep coming back to what makes agentic AI go is data. Data that's feeding the models. Who has the data? I think that is really, really important. Who needs the distribution to go acquire more and more of these users and who has access to the distribution is another issue. Who has the operational pieces to this because one of the things you alluded to it, but I think it's super important for investors to understand, there's all these different layers in this that have to be solved for in terms of budgeting, analysis, market planning, campaigns, creative, blah, blah. The list goes on. You have all these different layers that have to be solved, and some of them will have agentic layers, but agentic throughout the entire stack is a very different proposition. I think you're going to see a lot of issues that still have to get solved where you may see pieces of the agentic connecting to each other, but I think the full stack still a lot of things that have to get ironed out there. I got you. I guess switching over to your mobile app business, can you talk about how does that compare to just in social media you have app business there, have kind of ebbed and flowed around what Apple did, and how does your approach compare to what people might be familiar with what Facebook does versus what Google and Apple also do? Yeah, I think what's important is at the end of the day, there might be different ways to reach the customer, whether that's through social media, whether that's through the search on your Apple App Store, or whether it's through the home screen of your device where we have access to that. There's different ways to reach the customer in terms of how they're interacting with the device. We're the way that connects the operator and the OEM to that application. That doesn't happen through social media. Because the average person looks at this thing 200 times a day, we get first look even before you go to social media. You have to open and go and initiate something, for example, if you're going to go into Instagram or TikTok or whatever you do. Because we get that first look, because we're the ones that have access to the home screen, and that home screen's the beachfront property, that's something that's very attractive to advertisers. Okay. I guess with regards to your own DSP, and your own SSP that you have, do typically most of the app developers use your own DSP to access the inventory? How does that compare to just directly accessing inventory, and how does the actual logistics work? Yeah. Our big word is independent. Our whole thing is to just democratize access, not have walled gardens. We don't care. Yes, we have our own DSP and we have our own data, and we believe our DSP can win because it has its own data, and we can use that DSP to buy into our supply and create a flywheel effect. We also work with other third-party DSPs, Google, DV360, The Trade Desk, Liftoff, Moloco. You can go down to the list of names... Yep ... That investors here on this call are familiar with. They're also customers of ours, and they pay us to access our many billions of devices that have our technology on it. From our perspective is we're going to go compete in that marketplace. We believe we've got unique advantages through our DSP, because it allow us to win. We're also not of the belief that the only way to win is through our own DSP. Okay. You previously mentioned that you have customers like Uber and whatnot. For people who are new to the story, how much is gaming and how much is not in your app growth business? With our app growth business today, it'll fluctuate from quarter to quarter, but it's roughly half, say 50% of our business is non-gaming. When they think non-gaming, think Starbucks, think Uber, think Netflix, think TikTok, all examples of non-gaming. Gaming being the other half, in that, think of King, think of Zynga, think of Playtika, those kinds of names. Okay. Very cool. We have about 10 minutes here. I do want to address the notion of alternative app ecosystems that you mentioned. How meaningful is that opportunity around alternative app stores, alternative distribution, and a dummy question, how would that work for brands? Yeah. So, what we're seeing today is it's not speculative, it's real. You're seeing companies like a Playtika, which is a public company. Yep. Maybe most investors might know. A third of their revenues today are coming from alternative apps. This is not something that is going to take years and years to happen. It's something that is already happening from early adopters of this. We've announced relationships with Playtika as well as Zynga and King and many others that are using our platform today for alternative apps. We anticipate that's going to be something we're going to see more and more of because the driver for this is if you're an app publisher, any of those names I just mentioned, the single biggest line item that you have on your profit and loss statement is the 30% that you're paying to Apple or Google. You're highly motivated to try to figure out how to lower that expense. If I pay 1% on my Visa or 3% on my American Express, but I'm paying 30% to Apple or Google, clearly that's egregious. I'm sitting here talking to you on my Mac, where I've been side loading any alternative version of any app I want for the last 30 years. People say, oh, it's not private, it's not secure on this. On the Mac that I'm talking to you on right now, it's been safe and secure for 30 years. I think that you're seeing a lot of now software providers that want to get their software distributed waking up and saying, whoa, we need to have a little bit more control of our destiny. I think that similar in e-commerce where you saw people want to sell their things on Amazon, but they also realize they need a customer relationship, so that's why companies like Shopify exist, right? Is to be able to provide the tools so they can have that direct relationship to the customer to complement the Amazon relationship. I think you're going to see something similar in alternative apps. Okay. Nice. Are there new capabilities outside of just cost savings? That's very important, but are there new capabilities that you could unlock or something that couldn't have been through the traditional app download, app growth business? Yeah. I think a couple of things I'd say. Obviously one is a financial benefit, which you stated, which is going to drive a lot of behavior. I think the second big one is control. I gave you the example of the open web, and a lot of companies that had basically banked their entire acquisition strategy on Google Links. Now you saw an existential threat with AI come in, and now you've had all these eggs in a basket of building their entire business model around Google Links. Now if you're an app provider and you're seeing what's going on in the open web today, that's a lot of risk. You better have diversification being able to control your own destiny if there's some existential risk in apps with Google Play Store, the Apple App Store, I can control my destiny. I think you're going to see a lot of people trying to find all their distribution, both direct to the customer as well as potentially other third parties, they're not necessarily have all their eggs in one basket like we're seeing today of what AI is doing to the open web. Okay, cool. I do want to spend a couple minutes on competitive landscape and as in people who I've interacted with, there are elements of AppLovin, elements of Unity, and obviously there is a couple other, like Liftoff went public recently. There is Moloco that might go public. Who do you actually see in the marketplace when it comes to your competitors? Is this a too far fragmented of a space and investors are very siloed and looking at three or four companies? Yeah, no, I think as we think about the space overall, it's a little bit strange with ad tech because all of those names you just mentioned are customers of ours and competitors of ours. Both, right? Yeah. It depends on the circumstance of where we're competing versus where they're actually paying us as a customer. That's just one of the unique things about ad tech is everyone's trying to find the right users, and mix and match the right demand to the right supply. I think ultimately I'll go back to the themes I said is, what are your inherent advantages that give you a moat over those other companies? It starts with data. The second part is having distribution, and the third part is scale. The companies that have those types of things, I think are the best positioned to go win right now. With that being said different companies have different bits and pieces that all contribute to Digital Turbine. Okay. I got you. I did want to talk about supply and device wins. I know you just mentioned Orange. They're a very large company. How much of new supply refresh do you need to keep on doing, or is this something that you already have a lock on, there is not much work left to be done? Yeah. Some of the great things about our business, I mentioned we're doing scale where we're putting our technology on as many devices to get iPhone sold globally, which is great. One of the questions I've been getting from investors a lot is with all this AI and a lot of the chip makers now moving over to HBM chips away from DRAM and DRAM pricing's going up, which creates investor fear that device shipments are going to go down. That's an absolutely true statement. I think you're going to see some OEMs out there feeling some pain as the year goes on. But for us at Digital Turbine, the majority of our revenues come from over the life of the device, not tied to the new device sale. I think that's something that may be a little bit misunderstood with our story right now. For the people that have been around our company for a number of years, in the old days, pre-pandemic, much of our revenue was tied to new device sales. That's not the case today. Our revenue is now over the entire life of the device, and so that's something that insulates us from that. Also furthermore, the new supply that we're bringing in from folks like Orange and others that you'll see from us in our existing relationships that are ramping and growing in other ways, I think that mitigates or offsets the more existential risk that's coming in from DRAM pricing. That's not something that we're forecasting any big increase in devices in any of our guidance, but we think we've got a lot of mitigation strategies against any of the existential risk that investors may be concerned about. Okay. I like it. Kind of couple just checking things off. You are in the process of getting a new CFO, maybe just any updates or anything that you would want investors to remember and timetable. Yeah. First is I just want to make sure Steve did a great job and it was great to get to know him and continue to keep in touch with Steve as his new CFO opportunity's already been announced for another public company. Obviously wish him the best and we'll continue to keep in touch with him. He did a fantastic job for us. We're in the process of doing a search and we're considering both internal and external candidates for that. We're going through a process for us right now. The good news is for us, the profile of the company, the quality of the earnings, the beats, the balance sheet improving, and so on, I think gives us a lot of optimism that we're going to be in pretty good shape for the future. Okay. I know we are at 35 minutes. People who are still online, remember to take the quick poll. I'll close it and just share it with everyone. I guess from a macro standpoint, and just kind of less so from a macro, but just from a cyclical standpoint, some investors are focused on the cyclical tailwinds that are there, be it political advertising or be it live sports and all those things. Is that something that matters to Digital Turbine? Yeah, I think there's absolutely going to be a rising tide that lifts all boats with things like World Cup that are going on right now, political spends are going. Just to be clear, that's not historically our business. Because especially in the app space, we don't do a lot of political specific advertising. Our advertising's much more focused on digital goods and services, versus things that may be cyclical or things that may be subject to tariffs or energy pricing and things like that. That's not where we play. To the extent, rising tide lifts up all boats because some of those factors that would obviously benefit companies like us. I think the thing in terms of, for me, is less about that and more about what we can control, and that's where I was really proud of the team for. Yeah. We're talking 50%+ growth in an industry that's growing single digits. We're going to continue to focus on running our race and given how enormous the many hundreds of billions of dollars that addressable market is for digital advertising, we're obviously a very small player in that. It doesn't take a lot for us to move the needle as we continue to have success. Okay, fantastic. I'm going to close the poll right now, I guess this is just a question I got in an email. You provided annual guidance, rare for an advertising company. What gives you confidence in the full year outlook? Yeah, I think we've got pretty good visibility for a year. We're at a pretty good run rate right now, we're feeling like we've got good visibility for the year and the things that we're doing, we've got an enormous amount of things and shots on goal that we're optimistic about, that gave us confidence to put an annual guide out. Again, given the last five quarters of beating raises in our business, we're at a pretty good rhythm right now. Okay. I love it. Very well said. We covered a lot of ground here, Bill. Just sharing my screen quickly for people who are still online. Last couple minutes here. These are the five questions and these are the answers. The first question was, how worried are you about a recession or a macro softness in online advertising? Mostly positive. Neutral to positive bias here. The second question was, what are you excited about as far as incremental growth in online advertising? People like connected TV a lot. I think, Bill, you've got to do your connected TV. Yeah, we didn't get a chance. We ran out of time. I can give you my two cents on connected TV maybe next time we talk. Okay. Thank you, Bill. Which AI applications for advertising and marketing are you most excited about? People like improving ad targeting and ad attribution and measurement. The fourth question was about M&A in ad tech. Which area of ad tech do you see meaningful M&A to happen? Identity. There is a tie between CTV and retail media. Finally, when we ask which type of company do you think is best positioned for an AI-driven future, again, it's mobile ad growth and connected TV. Those are two things that people think has the most potential. Again, I think, Bill, you're in one of those swim lanes, so that's great. Thank you so much for spending the last 40 minutes with us. Hopefully, people learned a lot about Digital Turbine and why the stock is one of the best-performing names so far year to date. They see the momentum going. With that, any last words, Bill? No, no, thanks, Rohit, for taking some time and for folks listening in. That was quite a rapid-fire session we had. We covered a lot of ground in terms of business and both strategic as well as tactical. Thanks. Great questions, Rohit. Appreciate the time and look forward to the next one. Okay, awesome. Thank you, Bill. Everyone, have a good Friday. If people are still worried about what happens to SpaceX, I think the stock is up 30% and Musk is already the first trillionaire in the world. Everything is all good. I guess, but more importantly, thank you, Bill. Thanks, Brian and Hector, who have been listening patiently, and everybody else as well. Thank you. Thanks, Rohit. Bye bye.

Speaker 2: ... Try to dig into. ... Try to dig into. ... try to dig into

Speaker 1: ... Of year-over-year, it was 20% before that. The overall market's growing high single digits. We're outgrowing the market, meaning we're stealing share from others out in the marketplace in that business. That's been both in terms of rates that advertisers are paying, meaning the platform's working for them, and I'm sure we'll get into some data on it a little bit. The second part is the volume, meaning the actual number of supply that we're able to have. The increase in both rate and volume is really driving that growth for us. There's a lot of things contributing to the overall story at the top line. ... Of year-over-year, it was 20% before that. ... of year-over-year it was 20% before that The overall market's growing high single digits. the overall market's growing high single digits We're outgrowing the market, meaning we're stealing share from others out in the marketplace in that business. we're outgrowing the market meaning we're stealing share from others out in the marketplace in that business That's been both in terms of rates that advertisers are paying, meaning the platform's working for them, and I'm sure we'll get into some data on it a little bit. that's been both in terms of rates that advertisers are paying meaning the platform's working for them and i'm sure we'll get into some data on it a little bit The second part is the volume, meaning the actual number of supply that we're able to have. the second part is the volume meaning the actual number of supply that we're able to have The increase in both rate and volume is really driving that growth for us. the increase in both rate and volume is really driving that growth for us There's a lot of things contributing to the overall story at the top line. there's a lot of things contributing to the overall story at the top line

Speaker 2: Very cool. I love it. I know you talked about your two businesses. There are synergies across those segments. Over the next 12, 24 months, are there new incremental growth drivers that investors should think about? It's perfectly fine to say more of the same, and we have a lot of runway to do that, and we are just getting started. That's also a valid answer. Is there something new, incremental, in your opinion, that could start to become noticeable in the next 18 months or so? Very cool. very cool I love it. i love it I know you talked about your two businesses. i know you talked about your two businesses There are synergies across those segments. there are synergies across those segments Over the next 12, 24 months, are there new incremental growth drivers that investors should think about? over the next 12 24 months are there new incremental growth drivers that investors should think about It's perfectly fine to say more of the same, and we have a lot of runway to do that, and we are just getting started. it's perfectly fine to say more of the same and we have a lot of runway to do that and we are just getting started That's also a valid answer. that's also a valid answer Is there something new, incremental, in your opinion, that could start to become noticeable in the next 18 months or so? is there something new incremental in your opinion that could start to become noticeable in the next 18 months or so

Speaker 1: Yeah. When we think about what are our priorities for growth in the business, we don't have 100 things. We don't have one thing. We have five things that internally we talk about consistently, and so we're doing more of that with investors and being very transparent with, these are the five things that we're investing in that are going to be growth drivers to continue the momentum above and beyond the momentum we've already been able to generate. Number one for us is data. Yeah. yeah When we think about what are our priorities for growth in the business, we don't have 100 things. when we think about what are our priorities for growth in the business we don't have 100 things We don't have one thing. we don't have one thing We have five things that internally we talk about consistently, and so we're doing more of that with investors and being very transparent with, these are the five things that we're investing in that are going to be growth drivers to continue the momentum above and beyond the momentum we've already been able to generate. we have five things that internally we talk about consistently and so we're doing more of that with investors and being very transparent with these are the five things that we're investing in that are going to be growth drivers to continue the momentum above and beyond the momentum we've already been able to generate Number one for us is data. number one for us is data We've got an enormous amount of first-party data with our device business that helps feed our ad tech business. That's an enormous opportunity that's showing up in our results. I'm sure as we get into AI and other things later in this conversation, I'll talk more about that. Really leveraging our unique data is a very strategic asset to drive growth. The second one for us is our brand business is growing really nice right now. Our brand business is up 50% year-over-year. We're starting to see our in-app being a channel for brand advertisers versus just CTV like Netflix or Max or retail media like Amazon or Walmart or what have you. We've got an enormous amount of first-party data with our device business that helps feed our ad tech business. we've got an enormous amount of first-party data with our device business that helps feed our ad tech business That's an enormous opportunity that's showing up in our results. that's an enormous opportunity that's showing up in our results I'm sure as we get into AI and other things later in this conversation, I'll talk more about that. i'm sure as we get into ai and other things later in this conversation i'll talk more about that Really leveraging our unique data is a very strategic asset to drive growth. really leveraging our unique data is a very strategic asset to drive growth The second one for us is our brand business is growing really nice right now. the second one for us is our brand business is growing really nice right now Our brand business is up 50% year-over-year. our brand business is up 50% year-over-year We're starting to see our in-app being a channel for brand advertisers versus just CTV like Netflix or Max or retail media like Amazon or Walmart or what have you. we're starting to see our in-app being a channel for brand advertisers versus just ctv like netflix or max or retail media like amazon or walmart or what have you We're seeing this in-app brand channel really growing. That's the second thing for us. The third is our flywheel. In other words, how do we get all the monetization of the advertising inside apps to feed back, acquiring more users, and then that intends to drive more monetization, and it feeds itself as a flywheel. Really being able to continue to grow that business for us. The fourth thing for us is our Ignite business and growing that with more device supply and more services. We announced, for example, Orange as a new EU account a few weeks ago. Continuing to add more supply, also we've got other services that we're launching on that above and beyond app delivery. The final thing for us that's really more of a long-term driver, but something where the upside is enormous, is in alternative applications. We're seeing this in-app brand channel really growing. we're seeing this in-app brand channel really growing That's the second thing for us. that's the second thing for us The third is our flywheel. the third is our flywheel In other words, how do we get all the monetization of the advertising inside apps to feed back, acquiring more users, and then that intends to drive more monetization, and it feeds itself as a flywheel. in other words how do we get all the monetization of the advertising inside apps to feed back acquiring more users and then that intends to drive more monetization and it feeds itself as a flywheel Really being able to continue to grow that business for us. really being able to continue to grow that business for us The fourth thing for us is our Ignite business and growing that with more device supply and more services. the fourth thing for us is our ignite business and growing that with more device supply and more services We announced, for example, Orange as a new EU account a few weeks ago. we announced for example orange as a new eu account a few weeks ago Continuing to add more supply, also we've got other services that we're launching on that above and beyond app delivery. continuing to add more supply also we've got other services that we're launching on that above and beyond app delivery The final thing for us that's really more of a long-term driver, but something where the upside is enormous, is in alternative applications. the final thing for us that's really more of a long-term driver but something where the upside is enormous is in alternative applications

Speaker 2: Yeah. Yeah. yeah

Speaker 1: This is really the ability to deliver applications that are not necessarily Apple or Google versions of apps. That's $100 billion of free cash today that goes to Apple and Google for the 30% tax that they take off these applications. Whether Digital Turbine exists or not, that's going to get disrupted, and we think we're uniquely positioned to capture that. This is really the ability to deliver applications that are not necessarily Apple or Google versions of apps. this is really the ability to deliver applications that are not necessarily apple or google versions of apps That's $100 billion of free cash today that goes to Apple and Google for the 30% tax that they take off these applications. that's $100 billion of free cash today that goes to apple and google for the 30% tax that they take off these applications Whether Digital Turbine exists or not, that's going to get disrupted, and we think we're uniquely positioned to capture that. whether digital turbine exists or not that's going to get disrupted and we think we're uniquely positioned to capture that

Speaker 2: Awesome. Many layers to unpack there, but I do want to address two or three topics that I've asked each of the execs in this Ad-Tech summit, just to get a thematic point of view from you, Bill. I guess, maybe you already answered this, but more kind of directly asking about how does AI manifest in your P&L today? If investors wanted to point to one or two things, I know obviously your fundamentals are improving, but from a kind of product standpoint or a customer offering standpoint last 12 months, where is it that you think you have invested that is resulting in a positive ROI with AI in mind? Awesome. awesome Many layers to unpack there, but I do want to address two or three topics that I've asked each of the execs in this Ad-Tech summit, just to get a thematic point of view from you, Bill. many layers to unpack there but i do want to address two or three topics that i've asked each of the execs in this ad-tech summit just to get a thematic point of view from you bill I guess, maybe you already answered this, but more kind of directly asking about how does AI manifest in your P&L today? i guess maybe you already answered this but more kind of directly asking about how does ai manifest in your p&l today If investors wanted to point to one or two things, I know obviously your fundamentals are improving, but from a kind of product standpoint or a customer offering standpoint last 12 months, where is it that you think you have invested that is resulting in a positive ROI with AI in mind? if investors wanted to point to one or two things i know obviously your fundamentals are improving but from a kind of product standpoint or a customer offering standpoint last 12 months where is it that you think you have invested that is resulting in a positive roi with ai in mind

Speaker 1: Yeah. AI is a tailwind for our business, I think I've seen it shift over the last three to six months with investors now seeing that. When we had the SaaS apocalypse that was going on months ago, it was, oh my God, AI is going to destroy business. It's going to destroy your business. Nobody's going to need apps anymore. That's completely not true. It's the opposite that we're seeing, it benefits us in three ways. The first way it benefits us is it just runs our business more efficiently. Yeah. yeah AI is a tailwind for our business, I think I've seen it shift over the last three to six months with investors now seeing that. ai is a tailwind for our business i think i've seen it shift over the last three to six months with investors now seeing that When we had the SaaS apocalypse that was going on months ago, it was, oh my God, AI is going to destroy business. when we had the saas apocalypse that was going on months ago it was oh my god ai is going to destroy business It's going to destroy your business. it's going to destroy your business Nobody's going to need apps anymore. nobody's going to need apps anymore That's completely not true. that's completely not true It's the opposite that we're seeing, it benefits us in three ways. it's the opposite that we're seeing it benefits us in three ways The first way it benefits us is it just runs our business more efficiently. the first way it benefits us is it just runs our business more efficiently For example, we were able to generate a $70+ million increase in revenue year-over-year, and we did that with 4% less headcount. We did that with less cash operating expense. The only way that you're able to grow your revenues and still be able to do that with less people and less cash against it, is because you're driving efficiencies with AI. We use AI in our business on a lot of our back office and things that aren't necessarily exciting, but become more efficient for us. We use AI with our quality assurance. We use AI in our software coding. I mean, we can go down a whole litany of examples of how we use AI to drive efficiency. That's way one. Not the most sexy part, but important in terms of... For example, we were able to generate a $70+ million increase in revenue year-over-year, and we did that with 4% less headcount. for example we were able to generate a $70+ million increase in revenue year-over-year and we did that with 4% less headcount We did that with less cash operating expense. we did that with less cash operating expense The only way that you're able to grow your revenues and still be able to do that with less people and less cash against it, is because you're driving efficiencies with AI. the only way that you're able to grow your revenues and still be able to do that with less people and less cash against it is because you're driving efficiencies with ai We use AI in our business on a lot of our back office and things that aren't necessarily exciting, but become more efficient for us. we use ai in our business on a lot of our back office and things that aren't necessarily exciting but become more efficient for us We use AI with our quality assurance. we use ai with our quality assurance We use AI in our software coding. we use ai in our software coding I mean, we can go down a whole litany of examples of how we use AI to drive efficiency. i mean we can go down a whole litany of examples of how we use ai to drive efficiency That's way one. that's way one Not the most sexy part, but important in terms of... not the most sexy part but important in terms of

Speaker 2: Yes. Yes. yes

Speaker 1: ... EBITDA and free cash. Second thing we do is to drive more revenue and growth in the business because we have all this great data, which is the raw materials, and you can have great AI, but AI is only great if you have great data feeding into it. It becomes garbage in, garbage out. But we have got great ingredients with our data to feed into our AI and machine learning platform. We brand that as DT IQ. ... EBITDA and free cash. ... ebitda and free cash Second thing we do is to drive more revenue and growth in the business because we have all this great data, which is the raw materials, and you can have great AI, but AI is only great if you have great data feeding into it. second thing we do is to drive more revenue and growth in the business because we have all this great data which is the raw materials and you can have great ai but ai is only great if you have great data feeding into it It becomes garbage in, garbage out. it becomes garbage in garbage out But we have got great ingredients with our data to feed into our AI and machine learning platform. but we have got great ingredients with our data to feed into our ai and machine learning platform We brand that as DT IQ. we brand that as dt iq That is able to then use machine learning to then use the data on device to generate better outcomes for advertisers and end users, which therefore generates more revenue. Part of the revenue growth we just talked about in terms of the rates going up 50% year-over-year in our ad tech business would not be able to be done if we didn't have better data and better AI delivering those outcomes. The third way, which is much more strategic, is we're seeing this trend in the macro environment where the open web is getting crushed right now by AI. The days of me having a cough, I'm coughing and I type into Google, and I say, okay, what's going on? Then you see these links for something like WebMD, and you'll see an ad for Vicks on that website. That's gone. That is able to then use machine learning to then use the data on device to generate better outcomes for advertisers and end users, which therefore generates more revenue. that is able to then use machine learning to then use the data on device to generate better outcomes for advertisers and end users which therefore generates more revenue Part of the revenue growth we just talked about in terms of the rates going up 50% year-over-year in our ad tech business would not be able to be done if we didn't have better data and better AI delivering those outcomes. part of the revenue growth we just talked about in terms of the rates going up 50% year-over-year in our ad tech business would not be able to be done if we didn't have better data and better ai delivering those outcomes The third way, which is much more strategic, is we're seeing this trend in the macro environment where the open web is getting crushed right now by AI. the third way which is much more strategic is we're seeing this trend in the macro environment where the open web is getting crushed right now by ai The days of me having a cough, I'm coughing and I type into Google, and I say, okay, what's going on? the days of me having a cough i'm coughing and i type into google and i say okay what's going on Then you see these links for something like WebMD, and you'll see an ad for Vicks on that website. then you see these links for something like webmd and you'll see an ad for vicks on that website That's gone. that's gone Those brand dollars have gone. People now are spending more time in apps. You've seen the amount of time in apps go up by more than an hour per day over the past decade. That's accelerating. You've seen the number of app submissions in the App Store go up 40%. It'd been pretty consistent for a long time, and you see this big spike now of apps going up 40% year-over-year. The reason for that is it's easy to submit apps now. People can vibe code, and people can get submissions. The question is, you have this huge submission in applications, how the heck are you going to get users? How are you going to monetize these things? I'm spending more time in apps. Those brand dollars have gone. those brand dollars have gone People now are spending more time in apps. people now are spending more time in apps You've seen the amount of time in apps go up by more than an hour per day over the past decade. you've seen the amount of time in apps go up by more than an hour per day over the past decade That's accelerating. that's accelerating You've seen the number of app submissions in the App Store go up 40%. you've seen the number of app submissions in the app store go up 40% It'd been pretty consistent for a long time, and you see this big spike now of apps going up 40% year-over-year. it'd been pretty consistent for a long time and you see this big spike now of apps going up 40% year-over-year The reason for that is it's easy to submit apps now. the reason for that is it's easy to submit apps now People can vibe code, and people can get submissions. people can vibe code and people can get submissions The question is, you have this huge submission in applications, how the heck are you going to get users? the question is you have this huge submission in applications how the heck are you going to get users How are you going to monetize these things? how are you going to monetize these things I'm spending more time in apps. i'm spending more time in apps The idea for companies like Digital Turbine that are in the user acquisition business, that can go help these companies acquire users, versus the only discovery being on your screen of your Google Play or your Apple App Store. You've got another way to acquire users, and there's more competition for those users, which means more dollars being spent for those users. That really opens up a nice tailwind for our business, too. Those are some specific ways that AI's helping us. The idea for companies like Digital Turbine that are in the user acquisition business, that can go help these companies acquire users, versus the only discovery being on your screen of your Google Play or your Apple App Store. the idea for companies like digital turbine that are in the user acquisition business that can go help these companies acquire users versus the only discovery being on your screen of your google play or your apple app store You've got another way to acquire users, and there's more competition for those users, which means more dollars being spent for those users. you've got another way to acquire users and there's more competition for those users which means more dollars being spent for those users That really opens up a nice tailwind for our business, too. that really opens up a nice tailwind for our business too Those are some specific ways that AI's helping us. those are some specific ways that ai's helping us

Speaker 2: Okay. I guess just to this idea of token maxing and people are spending too much money on tokens, you have any opinion on that? How are your engineers handling that kind of crunch versus being very efficient? Okay. okay I guess just to this idea of token maxing and people are spending too much money on tokens, you have any opinion on that? i guess just to this idea of token maxing and people are spending too much money on tokens you have any opinion on that How are your engineers handling that kind of crunch versus being very efficient? how are your engineers handling that kind of crunch versus being very efficient

Speaker 1: Yeah, I absolutely believe that there's a supply chain crunch that's coming with AI. We've already seen it in the marketplace today, every single technology business, I talk with our CTO about this frequently, which is we want everybody to run Embrace AI. We want to do things, we want to trial, we want to experiment. Because of the GPU shortages that are going on, it's creating price increases for people then to inefficiently use the tokens, which is creating a cost issue for companies. Yeah, I absolutely believe that there's a supply chain crunch that's coming with AI. yeah i absolutely believe that there's a supply chain crunch that's coming with ai We've already seen it in the marketplace today, every single technology business, I talk with our CTO about this frequently, which is we want everybody to run Embrace AI. we've already seen it in the marketplace today every single technology business i talk with our cto about this frequently which is we want everybody to run embrace ai We want to do things, we want to trial, we want to experiment. we want to do things we want to trial we want to experiment Because of the GPU shortages that are going on, it's creating price increases for people then to inefficiently use the tokens, which is creating a cost issue for companies. because of the gpu shortages that are going on it's creating price increases for people then to inefficiently use the tokens which is creating a cost issue for companies You want to make sure that you really understand what the ROI is going in before you do that, because there's the risk in the short term that many companies will have a double bubble of expenses where you're investing all this AI and token expense on the right hand, but you still haven't seen the efficiencies, and you have all the other people and other investments you're making on the left hand. I think that'll be something to keep an eye out. We're very disciplined in how we think about that and how we use our tokens and what tools we use, and not spread ourselves too thin so we can keep really a lot of focus. You've seen some announcements over the last few weeks from us in terms of different relationships and partnerships to this degree, that we're using companies to do that. You want to make sure that you really understand what the ROI is going in before you do that, because there's the risk in the short term that many companies will have a double bubble of expenses where you're investing all this AI and token expense on the right hand, but you still haven't seen the efficiencies, and you have all the other people and other investments you're making on the left hand. you want to make sure that you really understand what the roi is going in before you do that because there's the risk in the short term that many companies will have a double bubble of expenses where you're investing all this ai and token expense on the right hand but you still haven't seen the efficiencies and you have all the other people and other investments you're making on the left hand I think that'll be something to keep an eye out. i think that'll be something to keep an eye out We're very disciplined in how we think about that and how we use our tokens and what tools we use, and not spread ourselves too thin so we can keep really a lot of focus. we're very disciplined in how we think about that and how we use our tokens and what tools we use and not spread ourselves too thin so we can keep really a lot of focus You've seen some announcements over the last few weeks from us in terms of different relationships and partnerships to this degree, that we're using companies to do that. you've seen some announcements over the last few weeks from us in terms of different relationships and partnerships to this degree that we're using companies to do that Yeah, token maxing is absolutely an issue because GPU shortages are a reality. Yeah, token maxing is absolutely an issue because GPU shortages are a reality. yeah token maxing is absolutely an issue because gpu shortages are a reality

Speaker 2: Okay. I like it. Moving on to your data advantage. I know you talked about your on-device data advantage. Maybe simplify, how does that create synergies across your two segments, and how should investors who are new to the story dig into that? People have followed how SSPs and your acquisition played into that, but just maybe call that out as to what is creating that kind of data advantage that is very hard to replicate, given your on-device signals, your SSP, and just overall. Yeah. Okay. okay I like it. i like it Moving on to your data advantage. moving on to your data advantage I know you talked about your on-device data advantage. i know you talked about your on-device data advantage Maybe simplify, how does that create synergies across your two segments, and how should investors who are new to the story dig into that? maybe simplify how does that create synergies across your two segments and how should investors who are new to the story dig into that People have followed how SSPs and your acquisition played into that, but just maybe call that out as to what is creating that kind of data advantage that is very hard to replicate, given your on-device signals, your SSP, and just overall. people have followed how ssps and your acquisition played into that but just maybe call that out as to what is creating that kind of data advantage that is very hard to replicate given your on-device signals your ssp and just overall Yeah. yeah

Speaker 1: One of the things that we know in ad tech, and we can get into a lot of the acronyms and alphabet soup of everything for the investors that want to go second level on some of the specifics. At the end of the day, you want to be able to drive performance and return on ad spend for advertisers in the most efficient way. The way to do that, who has the best data? Obviously companies like Google are known to have great data. Companies like Meta are known to have great data, and we have great data on device as well that other people don't have. Those are incremental signals that the marketplace may not have. One of the things that we know in ad tech, and we can get into a lot of the acronyms and alphabet soup of everything for the investors that want to go second level on some of the specifics. one of the things that we know in ad tech and we can get into a lot of the acronyms and alphabet soup of everything for the investors that want to go second level on some of the specifics At the end of the day, you want to be able to drive performance and return on ad spend for advertisers in the most efficient way. at the end of the day you want to be able to drive performance and return on ad spend for advertisers in the most efficient way The way to do that, who has the best data? the way to do that who has the best data Obviously companies like Google are known to have great data. obviously companies like google are known to have great data Companies like Meta are known to have great data, and we have great data on device as well that other people don't have. companies like meta are known to have great data and we have great data on device as well that other people don't have Those are incremental signals that the marketplace may not have. those are incremental signals that the marketplace may not have Those signals that we get from our on-device business, and those signals could be what apps are on your device, how long have you spent in certain apps, what apps are you using that may be relevant for others, what apps have you deleted? Obviously, where are you? All these different signals that come in that maybe the general market that's bidding on an ad impression, they don't have that information. The people with the best signals are going to generate the best return on ad spend, and therefore can command the better rates to drive better return on ad spend for those customers. I think that's a really big driver for us. As you saw, our rates were up over 40%+ year-over-year. You're not able to deliver better rates for your users if you're not delivering better data with better data signals. Those signals that we get from our on-device business, and those signals could be what apps are on your device, how long have you spent in certain apps, what apps are you using that may be relevant for others, what apps have you deleted? those signals that we get from our on-device business and those signals could be what apps are on your device how long have you spent in certain apps what apps are you using that may be relevant for others what apps have you deleted Obviously, where are you? obviously where are you All these different signals that come in that maybe the general market that's bidding on an ad impression, they don't have that information. all these different signals that come in that maybe the general market that's bidding on an ad impression they don't have that information The people with the best signals are going to generate the best return on ad spend, and therefore can command the better rates to drive better return on ad spend for those customers. the people with the best signals are going to generate the best return on ad spend and therefore can command the better rates to drive better return on ad spend for those customers I think that's a really big driver for us. i think that's a really big driver for us As you saw, our rates were up over 40%+ year-over-year. as you saw our rates were up over 40%+ year-over-year You're not able to deliver better rates for your users if you're not delivering better data with better data signals. you're not able to deliver better rates for your users if you're not delivering better data with better data signals

Speaker 2: Yep. Okay. Are there new categories of data sets or new types of data that become even more valuable for some AI models that you need to train on going forward? Yep. yep Okay. okay Are there new categories of data sets or new types of data that become even more valuable for some AI models that you need to train on going forward? are there new categories of data sets or new types of data that become even more valuable for some ai models that you need to train on going forward

Speaker 1: Yeah, I think for us, it's not necessarily incremental data, like there's a new signal. It's more of how do we take all of the signals. Here we are, we have all of our ad tech on 3 billion-ish devices around the world today, and those generate signals. We have signals from our different on-device business, how do we integrate that? Again, some of the announcements you saw from us the last few weeks are steps in how we're doing that, how we integrate that data, then get the interplay of all of these different signals that we are able to get to deliver better outcomes depending upon what situation we're in. That's really the name of the game here on it. We've got the raw materials, which is more than half of the battle. Yeah, I think for us, it's not necessarily incremental data, like there's a new signal. yeah i think for us it's not necessarily incremental data like there's a new signal It's more of how do we take all of the signals. it's more of how do we take all of the signals Here we are, we have all of our ad tech on 3 billion-ish devices around the world today, and those generate signals. here we are we have all of our ad tech on 3 billion-ish devices around the world today and those generate signals We have signals from our different on-device business, how do we integrate that? we have signals from our different on-device business how do we integrate that Again, some of the announcements you saw from us the last few weeks are steps in how we're doing that, how we integrate that data, then get the interplay of all of these different signals that we are able to get to deliver better outcomes depending upon what situation we're in. again some of the announcements you saw from us the last few weeks are steps in how we're doing that how we integrate that data then get the interplay of all of these different signals that we are able to get to deliver better outcomes depending upon what situation we're in That's really the name of the game here on it. that's really the name of the game here on it We've got the raw materials, which is more than half of the battle. we've got the raw materials which is more than half of the battle

Speaker 2: I see. Okay. Is there anything particular around your carrier relationships or OEM relationships that make it even harder to replicate? I see. i see Okay. okay Is there anything particular around your carrier relationships or OEM relationships that make it even harder to replicate? is there anything particular around your carrier relationships or oem relationships that make it even harder to replicate

Speaker 1: Yeah. I think one thing about our OEM and carrier relationships, I always say the bad news about those relationships is they take a long time. Yeah. yeah I think one thing about our OEM and carrier relationships, I always say the bad news about those relationships is they take a long time. i think one thing about our oem and carrier relationships i always say the bad news about those relationships is they take a long time

Speaker 2: Yeah. Yeah. yeah

Speaker 1: The process to bring new carriers and OEMs on tends to take years in many cases. For example, we announced our Orange deal a few weeks ago, but we had been talking to them for many years. The process to bring new carriers and OEMs on tends to take years in many cases. the process to bring new carriers and oems on tends to take years in many cases For example, we announced our Orange deal a few weeks ago, but we had been talking to them for many years. for example we announced our orange deal a few weeks ago but we had been talking to them for many years

Speaker 2: Yeah. Yeah. yeah

Speaker 1: It didn't just happen. The barriers to entry are really high, which is a negative, but conversely, the barriers to exit are also high because in order to make the investment to put technology on device, and it's important to know, once your technology's on device for a service, unlike in general ad tech, we in effect their decision makers. There's not the same level of competition, and that's one of the unique advantages of having your tech on device. For us, it's about playing the long game and getting those investments to get new devices and new supply into the marketplace. Knowing that then those relationships are very sticky over time. It didn't just happen. it didn't just happen The barriers to entry are really high, which is a negative, but conversely, the barriers to exit are also high because in order to make the investment to put technology on device, and it's important to know, once your technology's on device for a service, unlike in general ad tech, we in effect their decision makers. the barriers to entry are really high which is a negative but conversely the barriers to exit are also high because in order to make the investment to put technology on device and it's important to know once your technology's on device for a service unlike in general ad tech we in effect their decision makers There's not the same level of competition, and that's one of the unique advantages of having your tech on device. there's not the same level of competition and that's one of the unique advantages of having your tech on device For us, it's about playing the long game and getting those investments to get new devices and new supply into the marketplace. for us it's about playing the long game and getting those investments to get new devices and new supply into the marketplace Knowing that then those relationships are very sticky over time. knowing that then those relationships are very sticky over time

Speaker 2: Okay. Very cool. I have to ask you about agentic AI, headless software, all those kind of cool things that are happening in the last four months. You talked about SaaS or CapEx, whatever it is. Anyhow, you get the point. What is your feeling about this ability for software without user interface to do everything that an advertiser needs to do? Where does Digital Turbine fit into that in such a future? Okay. okay Very cool. very cool I have to ask you about agentic AI, headless software, all those kind of cool things that are happening in the last four months. i have to ask you about agentic ai headless software all those kind of cool things that are happening in the last four months You talked about SaaS or CapEx, whatever it is. you talked about saas or capex whatever it is Anyhow, you get the point. anyhow you get the point What is your feeling about this ability for software without user interface to do everything that an advertiser needs to do? what is your feeling about this ability for software without user interface to do everything that an advertiser needs to do Where does Digital Turbine fit into that in such a future? where does digital turbine fit into that in such a future

Speaker 1: Yeah. I think context matters here. We can go back in time and people actually used to exchange paper tickets and buy and advertising back and forth, right? Yeah. yeah I think context matters here. i think context matters here We can go back in time and people actually used to exchange paper tickets and buy and advertising back and forth, right? we can go back in time and people actually used to exchange paper tickets and buy and advertising back and forth right

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Digital came in and specs like OpenRTB came ways for different demand and supply to communicate and talk to each other with some common standards to help automate the process. You still needed buyers and sellers and budgets and everything on both sides. We're in the early days, top of the first inning on different elements of agentic now where you can have an agentic buyer and an agentic seller going back and forth, and you'll hear technology of things like AdCP that steps up on top of MCP protocols that are basically the AI's version of OpenRTB. OpenRTB is the digital version of the old ticket exchange, right? These are just different ways to automate and facilitate buying and selling. Within that, you need to have buyers and sellers that are seeing and talking to each other. Digital came in and specs like OpenRTB c ame ways for different demand and supply to communicate and talk to each other with some common standards to help automate the process. digital came in and specs like openrtb c ame ways for different demand and supply to communicate and talk to each other with some common standards to help automate the process You still needed buyers and sellers and budgets and everything on both sides. you still needed buyers and sellers and budgets and everything on both sides We're in the early days, top of the first inning on different elements of agentic now where you can have an agentic buyer and an agentic seller going back and forth, and you'll hear technology of things like AdCP that steps up on top of MCP protocols that are basically the AI's version of OpenRTB. we're in the early days top of the first inning on different elements of agentic now where you can have an agentic buyer and an agentic seller going back and forth and you'll hear technology of things like adcp that steps up on top of mcp protocols that are basically the ai's version of openrtb OpenRTB is the digital version of the old ticket exchange, right? openrtb is the digital version of the old ticket exchange right These are just different ways to automate and facilitate buying and selling. these are just different ways to automate and facilitate buying and selling Within that, you need to have buyers and sellers that are seeing and talking to each other. within that you need to have buyers and sellers that are seeing and talking to each other That market is really, really small today. There used to be an expression of dollars for pennies in terms of when digital first started. Now they're not even pennies in AI. You've seen a lot of companies get investors excited with PR of, hey, we're doing this trial with this AI company. When you actually unpack and talk about the budgets, they're not 7-figure, and in many cases they're barely 6-figure budgets. You have to put a lot of energy into something that isn't necessarily moving the needle in the very short term. I think the timing on a lot of this is important because most of the people spending the money on the advertising side have a lot of issues to figure out in terms of the ROAS, the customer control, the attribution. That market is really, really small today. that market is really really small today There used to be an expression of dollars for pennies in terms of when digital first started. there used to be an expression of dollars for pennies in terms of when digital first started Now they're not even pennies in AI. now they're not even pennies in ai You've seen a lot of companies get investors excited with PR of, hey, we're doing this trial with this AI company. you've seen a lot of companies get investors excited with pr of hey we're doing this trial with this ai company When you actually unpack and talk about the budgets, they're not 7-figure, and in many cases they're barely 6-figure budgets. when you actually unpack and talk about the budgets they're not 7-figure and in many cases they're barely 6-figure budgets You have to put a lot of energy into something that isn't necessarily moving the needle in the very short term. you have to put a lot of energy into something that isn't necessarily moving the needle in the very short term I think the timing on a lot of this is important because most of the people spending the money on the advertising side have a lot of issues to figure out in terms of the ROAS, the customer control, the attribution. i think the timing on a lot of this is important because most of the people spending the money on the advertising side have a lot of issues to figure out in terms of the roas the customer control the attribution Anyway, there's all these different issues that will get sorted out as time goes on, this will be another way that inventory gets bought and sold. Again, for a company like us at Digital Turbine, we have inherent advantages. Number one, we're a distribution company. We can help these people find. Two is we have the data to help facilitate making these agents buy and sell things easier. We also don't want to get over our skis where we've got a lot of momentum in where the money is today, and we don't want to chase something that may be still a little bit out there and a little bit still in its infancy with a lot of technical, operational, and business issues still to sort out. Anyway, there's all these different issues that will get sorted out as time goes on, this will be another way that inventory gets bought and sold. anyway there's all these different issues that will get sorted out as time goes on this will be another way that inventory gets bought and sold Again, for a company like us at Digital Turbine, we have inherent advantages. again for a company like us at digital turbine we have inherent advantages Number one, we're a distribution company. number one we're a distribution company We can help these people find. we can help these people find Two is we have the data to help facilitate making these agents buy and sell things easier. two is we have the data to help facilitate making these agents buy and sell things easier We also don't want to get over our skis where we've got a lot of momentum in where the money is today, and we don't want to chase something that may be still a little bit out there and a little bit still in its infancy with a lot of technical, operational, and business issues still to sort out. we also don't want to get over our skis where we've got a lot of momentum in where the money is today and we don't want to chase something that may be still a little bit out there and a little bit still in its infancy with a lot of technical operational and business issues still to sort out

Speaker 2: I guess that's a fair answer. Is there an argument to be made that wherever there's a human in the loop, perhaps in the agency side or wherever, some of that value could actually accrete to agentic platform, and if you build it right, then you could actually do most of the value that the agencies have been allowed to create? I guess that's a fair answer. i guess that's a fair answer Is there an argument to be made that wherever there's a human in the loop, perhaps in the agency side or wherever, some of that value could actually accrete to agentic platform, and if you build it right, then you could actually do most of the value that the agencies have been allowed to create? is there an argument to be made that wherever there's a human in the loop perhaps in the agency side or wherever some of that value could actually accrete to agentic platform and if you build it right then you could actually do most of the value that the agencies have been allowed to create

Speaker 1: I think that there's absolutely going to be disruption, just like OpenRTB disrupted things where there'll absolutely be disruption in companies. If you're not adding value then you're going to get disrupted if you want to take a longer term view. Again, I'll keep coming back to what makes agentic AI go is data. I think that there's absolutely going to be disruption, just like OpenRTB disrupted things where there'll absolutely be disruption in companies. i think that there's absolutely going to be disruption just like openrtb disrupted things where there'll absolutely be disruption in companies If you're not adding value then you're going to get disrupted if you want to take a longer term view. if you're not adding value then you're going to get disrupted if you want to take a longer term view Again, I'll keep coming back to what makes agentic AI go is data. again i'll keep coming back to what makes agentic ai go is data Data that's feeding the models. Who has the data? I think that is really, really important. Who needs the distribution to go acquire more and more of these users and who has access to the distribution is another issue. Who has the operational pieces to this because one of the things you alluded to it, but I think it's super important for investors to understand, there's all these different layers in this that have to be solved for in terms of budgeting, analysis, market planning, campaigns, creative, blah, blah. The list goes on. You have all these different layers that have to be solved, and some of them will have agentic layers, but agentic throughout the entire stack is a very different proposition. Data that's feeding the models. data that's feeding the models Who has the data? who has the data I think that is really, really important. i think that is really really important Who needs the distribution to go acquire more and more of these users and who has access to the distribution is another issue. who needs the distribution to go acquire more and more of these users and who has access to the distribution is another issue Who has the operational pieces to this because one of the things you alluded to it, but I think it's super important for investors to understand, there's all these different layers in this that have to be solved for in terms of budgeting, analysis, market planning, campaigns, creative, blah, blah. who has the operational pieces to this because one of the things you alluded to it but i think it's super important for investors to understand there's all these different layers in this that have to be solved for in terms of budgeting analysis market planning campaigns creative blah blah The list goes on. the list goes on You have all these different layers that have to be solved, and some of them will have agentic layers, but agentic throughout the entire stack is a very different proposition. you have all these different layers that have to be solved and some of them will have agentic layers but agentic throughout the entire stack is a very different proposition I think you're going to see a lot of issues that still have to get solved where you may see pieces of the agentic connecting to each other, but I think the full stack still a lot of things that have to get ironed out there. I think you're going to see a lot of issues that still have to get solved where you may see pieces of the agentic connecting to each other, but I think the full stack still a lot of things that have to get ironed out there. i think you're going to see a lot of issues that still have to get solved where you may see pieces of the agentic connecting to each other but i think the full stack still a lot of things that have to get ironed out there

Speaker 2: I got you. I guess switching over to your mobile app business, can you talk about how does that compare to just in social media you have app business there, have kind of ebbed and flowed around what Apple did, and how does your approach compare to what people might be familiar with what Facebook does versus what Google and Apple also do? I got you. i got you I guess switching over to your mobile app business, can you talk about how does that compare to just in social media you have app business there, have kind of ebbed and flowed around what Apple did, and how does your approach compare to what people might be familiar with what Facebook does versus what Google and Apple also do? i guess switching over to your mobile app business can you talk about how does that compare to just in social media you have app business there have kind of ebbed and flowed around what apple did and how does your approach compare to what people might be familiar with what facebook does versus what google and apple also do

Speaker 1: Yeah, I think what's important is at the end of the day, there might be different ways to reach the customer, whether that's through social media, whether that's through the search on your Apple App Store, or whether it's through the home screen of your device where we have access to that. There's different ways to reach the customer in terms of how they're interacting with the device. We're the way that connects the operator and the OEM to that application. That doesn't happen through social media. Because the average person looks at this thing 200 times a day, we get first look even before you go to social media. You have to open and go and initiate something, for example, if you're going to go into Instagram or TikTok or whatever you do. Yeah, I think what's important is at the end of the day, there might be different ways to reach the customer, whether that's through social media, whether that's through the search on your Apple App Store, or whether it's through the home screen of your device where we have access to that. yeah i think what's important is at the end of the day there might be different ways to reach the customer whether that's through social media whether that's through the search on your apple app store or whether it's through the home screen of your device where we have access to that There's different ways to reach the customer in terms of how they're interacting with the device. there's different ways to reach the customer in terms of how they're interacting with the device We're the way that connects the operator and the OEM to that application. we're the way that connects the operator and the oem to that application That doesn't happen through social media. that doesn't happen through social media Because the average person looks at this thing 200 times a day, we get first look even before you go to social media. because the average person looks at this thing 200 times a day we get first look even before you go to social media You have to open and go and initiate something, for example, if you're going to go into Instagram or TikTok or whatever you do. you have to open and go and initiate something for example if you're going to go into instagram or tiktok or whatever you do Because we get that first look, because we're the ones that have access to the home screen, and that home screen's the beachfront property, that's something that's very attractive to advertisers. Because we get that first look, because we're the ones that have access to the home screen, and that home screen's the beachfront property, that's something that's very attractive to advertisers. because we get that first look because we're the ones that have access to the home screen and that home screen's the beachfront property that's something that's very attractive to advertisers

Speaker 2: Okay. I guess with regards to your own DSP, and your own SSP that you have, do typically most of the app developers use your own DSP to access the inventory? How does that compare to just directly accessing inventory, and how does the actual logistics work? Okay. okay I guess with regards to your own DSP, and your own SSP that you have, do typically most of the app developers use your own DSP to access the inventory? i guess with regards to your own dsp and your own ssp that you have do typically most of the app developers use your own dsp to access the inventory How does that compare to just directly accessing inventory, and how does the actual logistics work? how does that compare to just directly accessing inventory and how does the actual logistics work

Speaker 1: Yeah. Our big word is independent. Our whole thing is to just democratize access, not have walled gardens. We don't care. Yes, we have our own DSP and we have our own data, and we believe our DSP can win because it has its own data, and we can use that DSP to buy into our supply and create a flywheel effect. We also work with other third-party DSPs, Google, DV360, The Trade Desk, Liftoff, Moloco. You can go down to the list of names... Yeah. yeah Our big word is independent. our big word is independent Our whole thing is to just democratize access, not have walled gardens. our whole thing is to just democratize access not have walled gardens We don't care. we don't care Yes, we have our own DSP and we have our own data, and we believe our DSP can win because it has its own data, and we can use that DSP to buy into our supply and create a flywheel effect. yes we have our own dsp and we have our own data and we believe our dsp can win because it has its own data and we can use that dsp to buy into our supply and create a flywheel effect We also work with other third-party DSPs, Google, DV360, The Trade Desk, Liftoff, Moloco. we also work with other third-party dsps google dv360, the trade desk liftoff moloco You can go down to the list of names... you can go down to the list of names

Speaker 2: Yep Yep yep

Speaker 1: ... That investors here on this call are familiar with. They're also customers of ours, and they pay us to access our many billions of devices that have our technology on it. From our perspective is we're going to go compete in that marketplace. We believe we've got unique advantages through our DSP, because it allow us to win. We're also not of the belief that the only way to win is through our own DSP. ... That investors here on this call are familiar with. ... that investors here on this call are familiar with They're also customers of ours, and they pay us to access our many billions of devices that have our technology on it. they're also customers of ours and they pay us to access our many billions of devices that have our technology on it From our perspective is we're going to go compete in that marketplace. from our perspective is we're going to go compete in that marketplace We believe we've got unique advantages through our DSP, because it allow us to win. we believe we've got unique advantages through our dsp because it allow us to win We're also not of the belief that the only way to win is through our own DSP. we're also not of the belief that the only way to win is through our own dsp

Speaker 2: Okay. You previously mentioned that you have customers like Uber and whatnot. For people who are new to the story, how much is gaming and how much is not in your app growth business? Okay. okay You previously mentioned that you have customers like Uber and whatnot. you previously mentioned that you have customers like uber and whatnot For people who are new to the story, how much is gaming and how much is not in your app growth business? for people who are new to the story how much is gaming and how much is not in your app growth business

Speaker 1: With our app growth business today, it'll fluctuate from quarter to quarter, but it's roughly half, say 50% of our business is non-gaming. When they think non-gaming, think Starbucks, think Uber, think Netflix, think TikTok, all examples of non-gaming. Gaming being the other half, in that, think of King, think of Zynga, think of Playtika, those kinds of names. With our app growth business today, it'll fluctuate from quarter to quarter, but it's roughly half, say 50% of our business is non-gaming. with our app growth business today it'll fluctuate from quarter to quarter but it's roughly half say 50% of our business is non-gaming When they think non-gaming, think Starbucks, think Uber, think Netflix, think TikTok, all examples of non-gaming. when they think non-gaming think starbucks think uber think netflix think tiktok all examples of non-gaming Gaming being the other half, in that, think of King, think of Zynga, think of Playtika, those kinds of names. gaming being the other half in that think of king think of zynga think of playtika those kinds of names

Speaker 2: Okay. Very cool. We have about 10 minutes here. I do want to address the notion of alternative app ecosystems that you mentioned. How meaningful is that opportunity around alternative app stores, alternative distribution, and a dummy question, how would that work for brands? Okay. okay Very cool. very cool We have about 10 minutes here. we have about 10 minutes here I do want to address the notion of alternative app ecosystems that you mentioned. i do want to address the notion of alternative app ecosystems that you mentioned How meaningful is that opportunity around alternative app stores, alternative distribution, and a dummy question, how would that work for brands? how meaningful is that opportunity around alternative app stores alternative distribution and a dummy question how would that work for brands

Speaker 1: Yeah. So, what we're seeing today is it's not speculative, it's real. You're seeing companies like a Playtika, which is a public company. Yeah. So, what we're seeing today is it's not speculative, it's real. yeah. so, what we're seeing today is it's not speculative it's real You're seeing companies like a Playtika, which is a public company. you're seeing companies like a playtika which is a public company

Speaker 2: Yep. Yep. yep

Speaker 1: Maybe most investors might know. A third of their revenues today are coming from alternative apps. This is not something that is going to take years and years to happen. It's something that is already happening from early adopters of this. We've announced relationships with Playtika as well as Zynga and King and many others that are using our platform today for alternative apps. We anticipate that's going to be something we're going to see more and more of because the driver for this is if you're an app publisher, any of those names I just mentioned, the single biggest line item that you have on your profit and loss statement is the 30% that you're paying to Apple or Google. Maybe most investors might know. maybe most investors might know A third of their revenues today are coming from alternative apps. a third of their revenues today are coming from alternative apps This is not something that is going to take years and years to happen. this is not something that is going to take years and years to happen It's something that is already happening from early adopters of this. it's something that is already happening from early adopters of this We've announced relationships with Playtika as well as Zynga and King and many others that are using our platform today for alternative apps. we've announced relationships with playtika as well as zynga and king and many others that are using our platform today for alternative apps We anticipate that's going to be something we're going to see more and more of because the driver for this is if you're an app publisher, any of those names I just mentioned, the single biggest line item that you have on your profit and loss statement is the 30% that you're paying to Apple or Google. we anticipate that's going to be something we're going to see more and more of because the driver for this is if you're an app publisher any of those names i just mentioned the single biggest line item that you have on your profit and loss statement is the 30% that you're paying to apple or google You're highly motivated to try to figure out how to lower that expense. If I pay 1% on my Visa or 3% on my American Express, but I'm paying 30% to Apple or Google, clearly that's egregious. I'm sitting here talking to you on my Mac, where I've been side loading any alternative version of any app I want for the last 30 years. People say, oh, it's not private, it's not secure on this. On the Mac that I'm talking to you on right now, it's been safe and secure for 30 years. I think that you're seeing a lot of now software providers that want to get their software distributed waking up and saying, whoa, we need to have a little bit more control of our destiny. You're highly motivated to try to f igure out how to lower that expense. you're highly motivated to try to f igure out how to lower that expense If I pay 1% on my Visa or 3% on my American Express, but I'm paying 30% to Apple or Google, clearly that's egregious. if i pay 1% on my visa or 3% on my american express but i'm paying 30% to apple or google clearly that's egregious I'm sitting here talking to you on my Mac, where I've been side loading any alternative version of any app I want for the last 30 years. i'm sitting here talking to you on my mac where i've been side loading any alternative version of any app i want for the last 30 years People say, oh, it's not private, it's not secure on this. people say oh it's not private it's not secure on this On the Mac that I'm talking to you on right now, it's been safe and secure for 30 years. on the mac that i'm talking to you on right now it's been safe and secure for 30 years I think that you're seeing a lot of now software providers that want to get their software distributed waking up and saying, whoa, we need to have a little bit more control of our destiny. i think that you're seeing a lot of now software providers that want to get their software distributed waking up and saying whoa we need to have a little bit more control of our destiny I think that similar in e-commerce where you saw people want to sell their things on Amazon, but they also realize they need a customer relationship, so that's why companies like Shopify exist, right? Is to be able to provide the tools so they can have that direct relationship to the customer to complement the Amazon relationship. I think you're going to see something similar in alternative apps. I think that similar in e-commerce where you saw people want to sell their things on Amazon, but they also realize they need a customer relationship, so that's why companies like Shopify exist, right? i think that similar in e-commerce where you saw people want to sell their things on amazon but they also realize they need a customer relationship so that's why companies like shopify exist right Is to be able to provide the tools so they can have that direct relationship to the customer to complement the Amazon relationship. is to be able to provide the tools so they can have that direct relationship to the customer to complement the amazon relationship I think you're going to see something similar in alternative apps. i think you're going to see something similar in alternative apps

Speaker 2: Okay. Nice. Are there new capabilities outside of just cost savings? That's very important, but are there new capabilities that you could unlock or something that couldn't have been through the traditional app download, app growth business? Okay. okay Nice. nice Are there new capabilities outside of just cost savings? are there new capabilities outside of just cost savings That's very important, but are there new capabilities that you could unlock or something that couldn't have been through the traditional app download, app growth business? that's very important but are there new capabilities that you could unlock or something that couldn't have been through the traditional app download app growth business

Speaker 1: Yeah. I think a couple of things I'd say. Obviously one is a financial benefit, which you stated, which is going to drive a lot of behavior. I think the second big one is control. I gave you the example of the open web, and a lot of companies that had basically banked their entire acquisition strategy on Google Links. Now you saw an existential threat with AI come in, and now you've had all these eggs in a basket of building their entire business model around Google Links. Now if you're an app provider and you're seeing what's going on in the open web today, that's a lot of risk. Yeah. yeah I think a couple of things I'd say. i think a couple of things i'd say Obviously one is a financial benefit, which you stated, which is going to drive a lot of behavior. obviously one is a financial benefit which you stated which is going to drive a lot of behavior I think the second big one is control. i think the second big one is control I gave you the example of the open web, and a lot of companies that had basically banked their entire acquisition strategy on Google Links. i gave you the example of the open web and a lot of companies that had basically banked their entire acquisition strategy on google links Now you saw an existential threat with AI come in, and now you've had all these eggs in a basket of building their entire business model around Google Links. now you saw an existential threat with ai come in and now you've had all these eggs in a basket of building their entire business model around google links Now if you're an app provider and you're seeing what's going on in the open web today, that's a lot of risk. now if you're an app provider and you're seeing what's going on in the open web today that's a lot of risk You better have diversification being able to control your own destiny if there's some existential risk in apps with Google Play Store, the Apple App Store, I can control my destiny. I think you're going to see a lot of people trying to find all their distribution, both direct to the customer as well as potentially other third parties, they're not necessarily have all their eggs in one basket like we're seeing today of what AI is doing to the open web. You better have diversification being able to control your own destiny if there's some existential risk in apps with Google Play Store, the Apple App Store, I can control my destiny. you better have diversification being able to control your own destiny if there's some existential risk in apps with google play store the apple app store i can control my destiny I think you're going to see a lot of people trying to find all their distribution, both direct to the customer as well as potentially other third parties, they're not necessarily have all their eggs in one basket like we're seeing today of what AI is doing to the open web. i think you're going to see a lot of people trying to find all their distribution both direct to the customer as well as potentially other third parties they're not necessarily have all their eggs in one basket like we're seeing today of what ai is doing to the open web

Speaker 2: Okay, cool. I do want to spend a couple minutes on competitive landscape and as in people who I've interacted with, there are elements of AppLovin, elements of Unity, and obviously there is a couple other, like Liftoff went public recently. There is Moloco that might go public. Who do you actually see in the marketplace when it comes to your competitors? Is this a too far fragmented of a space and investors are very siloed and looking at three or four companies? Okay, cool. okay cool I do want to spend a couple minutes on competitive landscape and as in people who I've interacted with, there are elements of AppLovin, elements of Unity, and obviously there is a couple other, like Liftoff went public recently. i do want to spend a couple minutes on competitive landscape and as in people who i've interacted with there are elements of applovin elements of unity and obviously there is a couple other like liftoff went public recently There is Moloco that might go public. there is moloco that might go public Who do you actually see in the marketplace when it comes to your competitors? who do you actually see in the marketplace when it comes to your competitors Is this a too far fragmented of a space and investors are very siloed and looking at three or four companies? is this a too far fragmented of a space and investors are very siloed and looking at three or four companies

Speaker 1: Yeah, no, I think as we think about the space overall, it's a little bit strange with ad tech because all of those names you just mentioned are customers of ours and competitors of ours. Both, right? Yeah, no, I think as we think about the space overall, it's a little bit strange with ad tech because all of those names you just mentioned are customers of ours and competitors of ours. yeah no i think as we think about the space overall it's a little bit strange with ad tech because all of those names you just mentioned are customers of ours and competitors of ours Both, right? both right

Speaker 2: Yeah. Yeah. yeah

Speaker 1: It depends on the circumstance of where we're competing versus where they're actually paying us as a customer. That's just one of the unique things about ad tech is everyone's trying to find the right users, and mix and match the right demand to the right supply. I think ultimately I'll go back to the themes I said is, what are your inherent advantages that give you a moat over those other companies? It starts with data. The second part is having distribution, and the third part is scale. The companies that have those types of things, I think are the best positioned to go win right now. With that being said different companies have different bits and pieces that all contribute to Digital Turbine. It depends on the circumstance of where we're competing versus where they're actually paying us as a customer. it depends on the circumstance of where we're competing versus where they're actually paying us as a customer That's just one of the unique things about ad tech is everyone's trying to find the right users, and mix and match the right demand to the right supply. that's just one of the unique things about ad tech is everyone's trying to find the right users and mix and match the right demand to the right supply I think ultimately I'll go back to the themes I said is, what are your inherent advantages that give you a moat over those other companies? i think ultimately i'll go back to the themes i said is what are your inherent advantages that give you a moat over those other companies It starts with data. it starts with data The second part is having distribution, and the third part is scale. the second part is having distribution and the third part is scale The companies that have those types of things, I think are the best positioned to go win right now. the companies that have those types of things i think are the best positioned to go win right now With that being said different companies have different bits and pieces that all contribute to Digital Turbine. with that being said different companies have different bits and pieces that all contribute to digital turbine

Speaker 2: Okay. I got you. I did want to talk about supply and device wins. I know you just mentioned Orange. They're a very large company. How much of new supply refresh do you need to keep on doing, or is this something that you already have a lock on, there is not much work left to be done? Okay. okay I got you. i got you I did want to talk about supply and device wins. i did want to talk about supply and device wins I know you just mentioned Orange. i know you just mentioned orange They're a very large company. they're a very large company How much of new supply refresh do you need to keep on doing, or is this something that you already have a lock on, there is not much work left to be done? how much of new supply refresh do you need to keep on doing or is this something that you already have a lock on there is not much work left to be done

Speaker 1: Yeah. Some of the great things about our business, I mentioned we're doing scale where we're putting our technology on as many devices to get iPhone sold globally, which is great. One of the questions I've been getting from investors a lot is with all this AI and a lot of the chip makers now moving over to HBM chips away from DRAM and DRAM pricing's going up, which creates investor fear that device shipments are going to go down. That's an absolutely true statement. I think you're going to see some OEMs out there feeling some pain as the year goes on. Yeah. yeah Some of the great things about our business, I mentioned we're doing scale where we're putting our technology on as many devices to get iPhone sold globally, which is great. some of the great things about our business i mentioned we're doing scale where we're putting our technology on as many devices to get iphone sold globally which is great One of the questions I've been getting from investors a lot is with all this AI and a lot of the chip makers now moving over to HBM chips away from DRAM and DRAM pricing's going up, which creates investor fear that device shipments are going to go down. one of the questions i've been getting from investors a lot is with all this ai and a lot of the chip makers now moving over to hbm chips away from dram and dram pricing's going up which creates investor fear that device shipments are going to go down That's an absolutely true statement. that's an absolutely true statement I think you're going to see some OEMs out there feeling some pain as the year goes on. i think you're going to see some oems out there feeling some pain as the year goes on But for us at Digital Turbine, the majority of our revenues come from over the life of the device, not tied to the new device sale. I think that's something that may be a little bit misunderstood with our story right now. For the people that have been around our company for a number of years, in the old days, pre-pandemic, much of our revenue was tied to new device sales. That's not the case today. Our revenue is now over the entire life of the device, and so that's something that insulates us from that. Also furthermore, the new supply that we're bringing in from folks like Orange and others that you'll see from us in our existing relationships that are ramping and growing in other ways, I think that mitigates or offsets the more existential risk that's coming in from DRAM pricing. But for us at Digital Turbine, the majority of our revenues come from over the life of the device, not tied to the new device sale. but for us at digital turbine the majority of our revenues come from over the life of the device not tied to the new device sale I think that's something that may be a little bit misunderstood with our story right now. i think that's something that may be a little bit misunderstood with our story right now For the people that have been around our company for a number of years, in the old days, pre-pandemic, much of our revenue was tied to new device sales. for the people that have been around our company for a number of years in the old days pre-pandemic much of our revenue was tied to new device sales That's not the case today. that's not the case today Our revenue is now over the entire life of the device, and so that's something that insulates us from that. our revenue is now over the entire life of the device and so that's something that insulates us from that Also furthermore, the new supply that we're bringing in from folks like Orange and others that you'll see from us in our existing relationships that are ramping and growing in other ways, I think that mitigates or offsets the more existential risk that's coming in from DRAM pricing. also furthermore the new supply that we're bringing in from folks like orange and others that you'll see from us in our existing relationships that are ramping and growing in other ways i think that mitigates or offsets the more existential risk that's coming in from dram pricing That's not something that we're forecasting any big increase in devices in any of our guidance, but we think we've got a lot of mitigation strategies against any of the existential risk that investors may be concerned about. That's not something that we're forecasting any big increase in devices in any of our guidance, but we think we've got a lot of mitigation strategies against any of the existential risk that investors may be concerned about. that's not something that we're forecasting any big increase in devices in any of our guidance but we think we've got a lot of mitigation strategies against any of the existential risk that investors may be concerned about

Speaker 2: Okay. I like it. Kind of couple just checking things off. You are in the process of getting a new CFO, maybe just any updates or anything that you would want investors to remember and timetable. Okay. okay I like it. i like it Kind of couple just checking things off. kind of couple just checking things off You are in the process of getting a new CFO, maybe just any updates or anything that you would want investors to remember and timetable. you are in the process of getting a new cfo maybe just any updates or anything that you would want investors to remember and timetable

Speaker 1: Yeah. First is I just want to make sure Steve did a great job and it was great to get to know him and continue to keep in touch with Steve as his new CFO opportunity's already been announced for another public company. Obviously wish him the best and we'll continue to keep in touch with him. He did a fantastic job for us. We're in the process of doing a search and we're considering both internal and external candidates for that. We're going through a process for us right now. The good news is for us, the profile of the company, the quality of the earnings, the beats, the balance sheet improving, and so on, I think gives us a lot of optimism that we're going to be in pretty good shape for the future. Yeah. yeah First is I just want to make sure Steve did a great job and it was great to get to know him and continue to keep in touch with Steve as his new CFO opportunity's already been announced for another public company. first is i just want to make sure steve did a great job and it was great to get to know him and continue to keep in touch with steve as his new cfo opportunity's already been announced for another public company Obviously wish him the best and we'll continue to keep in touch with him. obviously wish him the best and we'll continue to keep in touch with him He did a fantastic job for us. he did a fantastic job for us We're in the process of doing a search and we're considering both internal and external candidates for that. we're in the process of doing a search and we're considering both internal and external candidates for that We're going through a process for us right now. we're going through a process for us right now The good news is for us, the profile of the company, the quality of the earnings, the beats, the balance sheet improving, and so on, I think gives us a lot of optimism that we're going to be in pretty good shape for the future. the good news is for us the profile of the company the quality of the earnings the beats the balance sheet improving and so on i think gives us a lot of optimism that we're going to be in pretty good shape for the future

Speaker 2: Okay. I know we are at 35 minutes. People who are still online, remember to take the quick poll. I'll close it and just share it with everyone. I guess from a macro standpoint, and just kind of less so from a macro, but just from a cyclical standpoint, some investors are focused on the cyclical tailwinds that are there, be it political advertising or be it live sports and all those things. Is that something that matters to Digital Turbine? Okay. okay I know we are at 35 minutes. i know we are at 35 minutes People who are still online, remember to take the quick poll. people who are still online remember to take the quick poll I'll close it and just share it with everyone. i'll close it and just share it with everyone I guess from a macro standpoint, and just kind of less so from a macro, but just from a cyclical standpoint, some investors are focused on the cyclical tailwinds that are there, be it political advertising or be it live sports and all those things. i guess from a macro standpoint and just kind of less so from a macro but just from a cyclical standpoint some investors are focused on the cyclical tailwinds that are there be it political advertising or be it live sports and all those things Is that something that matters to Digital Turbine? is that something that matters to digital turbine

Speaker 1: Yeah, I think there's absolutely going to be a rising tide that lifts all boats with things like World Cup that are going on right now, political spends are going. Just to be clear, that's not historically our business. Because especially in the app space, we don't do a lot of political specific advertising. Our advertising's much more focused on digital goods and services, versus things that may be cyclical or things that may be subject to tariffs or energy pricing and things like that. That's not where we play. To the extent, rising tide lifts up all boats because some of those factors that would obviously benefit companies like us. I think the thing in terms of, for me, is less about that and more about what we can control, and that's where I was really proud of the team for. Yeah, I think there's absolutely going to be a rising tide that lifts all boats with things like World Cup that are going on right now, political spends are going. yeah i think there's absolutely going to be a rising tide that lifts all boats with things like world cup that are going on right now political spends are going Just to be clear, that's not historically our business. just to be clear that's not historically our business Because especially in the app space, we don't do a lot of political specific advertising. because especially in the app space we don't do a lot of political specific advertising Our advertising's much more focused on digital goods and services, versus things that may be cyclical or things that may be subject to tariffs or energy pricing and things like that. our advertising's much more focused on digital goods and services versus things that may be cyclical or things that may be subject to tariffs or energy pricing and things like that That's not where we play. that's not where we play To the extent, rising tide lifts up all boats because some of those factors that would obviously benefit companies like us. to the extent rising tide lifts up all boats because some of those factors that would obviously benefit companies like us I think the thing in terms of, for me, is less about that and more about what we can control, and that's where I was really proud of the team for. i think the thing in terms of for me is less about that and more about what we can control and that's where i was really proud of the team for

Speaker 2: Yeah. Yeah. yeah

Speaker 1: We're talking 50%+ growth in an industry that's growing single digits. We're going to continue to focus on running our race and given how enormous the many hundreds of billions of dollars that addressable market is for digital advertising, we're obviously a very small player in that. It doesn't take a lot for us to move the needle as we continue to have success. We're talking 50%+ growth in an industry that's growing single digits. we're talking 50%+ growth in an industry that's growing single digits We're going to continue to focus on running our race and given how enormous the many hundreds of billions of dollars that addressable market is for digital advertising, we're obviously a very small player in that. we're going to continue to focus on running our race and given how enormous the many hundreds of billions of dollars that addressable market is for digital advertising we're obviously a very small player in that It doesn't take a lot for us to move the needle as we continue to have success. it doesn't take a lot for us to move the needle as we continue to have success

Speaker 2: Okay, fantastic. I'm going to close the poll right now, I guess this is just a question I got in an email. You provided annual guidance, rare for an advertising company. What gives you confidence in the full year outlook? Okay, fantastic. okay fantastic I'm going to close the poll right now, I guess this is just a question I got in an email. i'm going to close the poll right now i guess this is just a question i got in an email You provided annual guidance, rare for an advertising company. you provided annual guidance rare for an advertising company What gives you confidence in the full year outlook? what gives you confidence in the full year outlook

Speaker 1: Yeah, I think we've got pretty good visibility for a year. We're at a pretty good run rate right now, we're feeling like we've got good visibility for the year and the things that we're doing, we've got an enormous amount of things and shots on goal that we're optimistic about, that gave us confidence to put an annual guide out. Again, given the last five quarters of beating raises in our business, we're at a pretty good rhythm right now. Yeah, I think we've got pretty good visibility for a year. yeah i think we've got pretty good visibility for a year We're at a pretty good run rate right now, we're feeling like we've got good visibility for the year and the things that we're doing, we've got an enormous amount of things and shots on goal that we're optimistic about, that gave us confidence to put an annual guide out. we're at a pretty good run rate right now we're feeling like we've got good visibility for the year and the things that we're doing we've got an enormous amount of things and shots on goal that we're optimistic about that gave us confidence to put an annual guide out Again, given the last five quarters of beating raises in our business, we're at a pretty good rhythm right now. again given the last five quarters of beating raises in our business we're at a pretty good rhythm right now

Speaker 2: Okay. I love it. Very well said. We covered a lot of ground here, Bill. Just sharing my screen quickly for people who are still online. Last couple minutes here. These are the five questions and these are the answers. The first question was, how worried are you about a recession or a macro softness in online advertising? Mostly positive. Neutral to positive bias here. The second question was, what are you excited about as far as incremental growth in online advertising? People like connected TV a lot. I think, Bill, you've got to do your connected TV. Okay. okay I love it. i love it Very well said. very well said We covered a lot of ground here, Bill. we covered a lot of ground here bill Just sharing my screen quickly for people who are still online. just sharing my screen quickly for people who are still online Last couple minutes here. last couple minutes here These are the five questions and these are the answers. these are the five questions and these are the answers The first question was, how worried are you about a recession or a macro softness in online advertising? the first question was how worried are you about a recession or a macro softness in online advertising Mostly positive. mostly positive Neutral to positive bias here. neutral to positive bias here The second question was, what are you excited about as far as incremental growth in online advertising? the second question was what are you excited about as far as incremental growth in online advertising People like connected TV a lot. people like connected tv a lot I think, Bill, you've got to do your connected TV. i think bill you've got to do your connected tv

Speaker 1: Yeah, we didn't get a chance. We ran out of time. I can give you my two cents on connected TV maybe next time we talk. Yeah, we didn't get a chance. yeah we didn't get a chance We ran out of time. we ran out of time I can give you my two cents on connected TV maybe next time we talk. i can give you my two cents on connected tv maybe next time we talk

Speaker 2: Okay. Thank you, Bill. Which AI applications for advertising and marketing are you most excited about? People like improving ad targeting and ad attribution and measurement. The fourth question was about M&A in ad tech. Which area of ad tech do you see meaningful M&A to happen? Identity. There is a tie between CTV and retail media. Finally, when we ask which type of company do you think is best positioned for an AI-driven future, again, it's mobile ad growth and connected TV. Those are two things that people think has the most potential. Again, I think, Bill, you're in one of those swim lanes, so that's great. Thank you so much for spending the last 40 minutes with us. Okay. okay Thank you, Bill. thank you bill Which AI applications for advertising and marketing are you most excited about? which ai applications for advertising and marketing are you most excited about People like improving ad targeting and ad attribution and measurement. people like improving ad targeting and ad attribution and measurement The fourth question was about M&A in ad tech. the fourth question was about m&a in ad tech Which area of ad tech do you see meaningful M&A to happen? which area of ad tech do you see meaningful m&a to happen Identity. identity There is a tie between CTV and retail media. there is a tie between ctv and retail media Finally, when we ask which type of company do you think is best positioned for an AI-driven future, again, it's mobile ad growth and connected TV. finally when we ask which type of company do you think is best positioned for an ai-driven future again it's mobile ad growth and connected tv Those are two things that people think has the most potential. those are two things that people think has the most potential Again, I think, Bill, you're in one of those swim lanes, so that's great. again i think bill you're in one of those swim lanes so that's great Thank you so much for spending the last 40 minutes with us. thank you so much for spending the last 40 minutes with us Hopefully, people learned a lot about Digital Turbine and why the stock is one of the best-performing names so far year to date. They see the momentum going. With that, any last words, Bill? Hopefully, people learned a lot about Digital Turbine and why the stock is one of the best-performing names so far year to date. hopefully people learned a lot about digital turbine and why the stock is one of the best-performing names so far year to date They see the momentum going. they see the momentum going With that, any last words, Bill? with that any last words bill

Speaker 1: No, no, thanks, Rohit, for taking some time and for folks listening in. That was quite a rapid-fire session we had. We covered a lot of ground in terms of business and both strategic as well as tactical. Thanks. Great questions, Rohit. Appreciate the time and look forward to the next one. No, no, thanks, Rohit, for taking some time and for folks listening in. no no thanks rohit for taking some time and for folks listening in That was quite a rapid-fire session we had. that was quite a rapid-fire session we had We covered a lot of ground in terms of business and both strategic as well as tactical. we covered a lot of ground in terms of business and both strategic as well as tactical Thanks. thanks Great questions, Rohit. great questions rohit Appreciate the time and look forward to the next one. appreciate the time and look forward to the next one

Speaker 2: Okay, awesome. Thank you, Bill. Everyone, have a good Friday. If people are still worried about what happens to SpaceX, I think the stock is up 30% and Musk is already the first trillionaire in the world. Everything is all good. I guess, but more importantly, thank you, Bill. Thanks, Brian and Hector, who have been listening patiently, and everybody else as well. Thank you. Okay, awesome. okay awesome Thank you, Bill. thank you bill Everyone, have a good Friday. everyone have a good friday If people are still worried about what happens to SpaceX, I think the stock is up 30% and Musk is already the first trillionaire in the world. if people are still worried about what happens to spacex i think the stock is up 30% and musk is already the first trillionaire in the world Everything is all good. everything is all good I guess, but more importantly, thank you, Bill. i guess but more importantly thank you bill Thanks, Brian and Hector, who have been listening patiently, and everybody else as well. thanks brian and hector who have been listening patiently and everybody else as well Thank you. thank you

Speaker 1: Thanks, Rohit. Thanks, Rohit. thanks rohit

Speaker 2: Bye bye. Bye bye. bye bye