Digital Turbine (APPS) Sees FY16 Revenue of $90M-$100M

Digital Turbine, Inc. (Nasdaq: APPS) announced that it is updating its outlook for fiscal 2016 revenue to a range of $90 million to $100 million. The primary reason for the update is a revision in the expected timing of device launches with multiple recently added major distribution partners to now launch in the first quarter fiscal 2017 rather than in the fourth quarter of fiscal 2016, as well as the onboarding of other new distribution partners later in Q4 than originally anticipated, reducing their contribution to fiscal 2016 revenue. The Company expects to achieve adjusted EBITDA profitability for the fiscal 2016 fourth quarter ended March.

(Street sees FY16 revenue of $102.82 million.)

The Advertising business, which is the key driver of fiscal third quarter 2016 growth, is demonstrating continued expansion in both DT Media and Appia Core. Within DT Media, the combination of the expansion of DT Ignite™ slots across US carriers that is resulting in increasing yield per device and a seasonal increase in device sell-through is expected to drive second half fiscal 2016 revenue growth of up to approximately 200% on a sequential basis versus $7.3 million in first half fiscal 2016. Yield per device is trending over the Company's target of $2 to date in the quarter.

"While we need to continue to install DT Ignite™ on additional devices to accelerate our growth rate to align with expectations, the strong underlying fundamentals, including yield per device trending above $2, demonstrate the demand from advertisers and long-term potential of our business," stated Bill Stone, Digital Turbine's CEO. "Our updated revenue range for fiscal 2016 reflects recent revisions in timing of DT Ignite™ rollouts with newly added distribution partners. Looking beyond this fiscal year to fiscal 2017, we remain confident in our prospects for growth, which we expect will be driven by new and increasing contributions from DT Media distribution partners, positive sequential results from large DT Media distribution partners in the US with whom we will enter the year at high device penetration, as well as growth in Appia Core and DT Content."

Conference CallManagement will host a conference call today, December 14, 2015 at 4:30 pm ET/1:30pm PT to discuss the fiscal 2016 business outlook. To participate, interested parties should dial 866-652-5200 in the United States or 412-317-6060 from international locations. The conference ID is 10077209. The call will also be webcast at ir.digitalturbine.com/events where it will be archived for a period of one year.

For those who are not able to join the live call, a playback will be available through December 26, 2015. The replay can be accessed by dialing 877-344-7529 in the United States or 412-317-0088 from international locations, passcode 10077209.

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