Digital Turbine Files 2024 10-K

TL;DR

DT's 2024 10-K is in. Full year financials and outlook released.

AI Summary

Digital Turbine, Inc. filed its 10-K for the fiscal year ending March 31, 2024, reporting on its operations and financial performance. The company, formerly known as Mandalay Digital Group, Inc., is based in Austin, Texas. The filing covers the period from April 1, 2023, to March 31, 2024, and includes comparative data from previous fiscal years.

Why It Matters

This filing provides investors and analysts with a comprehensive overview of Digital Turbine's financial health, strategic direction, and potential risks for the fiscal year 2024.

Risk Assessment

Risk Level: medium — The filing details the company's financial performance and operational risks, which are inherent in the technology and advertising sectors.

Key Numbers

• 2024-03-31 — Fiscal Year End (Reporting period for the 10-K)
• 2024-05-28 — Filing Date (Date the 10-K was submitted to the SEC)

Key Players & Entities

• Digital Turbine, Inc. (company) — Filer of the 10-K
• Mandalay Digital Group, Inc. (company) — Former name of Digital Turbine, Inc.
• NeuMedia, Inc. (company) — Former name of Digital Turbine, Inc.
• Mandalay Media, Inc. (company) — Former name of Digital Turbine, Inc.
• Austin, TX (location) — Company headquarters

FAQ

Key Financial Figures

• $0.0001 — ) of the Act: Common Stock, Par Value $0.0001 Per Share APPS The Nasdaq Stock Marke
• $54,157 — ed March 31, 2024, 2023, and 2022, were $54,157, $56,486, and $52,723, respectively. I
• $56,486 — 31, 2024, 2023, and 2022, were $54,157, $56,486, and $52,723, respectively. Intellectu
• $52,723 — 3, and 2022, were $54,157, $56,486, and $52,723, respectively. Intellectual Property

Filing Documents

• apps-20240331.htm (10-K) — 1951KB
• employmentagreement-michae.htm (EX-10.2(6)) — 90KB
• secondamendment-verizonsaa.htm (EX-10.5(2)) — 26KB
• secondamendment-attsoftwar.htm (EX-10.7(2)) — 9KB
• thirdamendment-attsoftware.htm (EX-10.7(3)) — 133KB
• secondamendmentto2020equit.htm (EX-10.24) — 7KB
• formofcontingentstockoptio.htm (EX-10.25) — 44KB
• insidertradingpolicy-ex191.htm (EX-19.1) — 83KB
• form10-kxexhibit211fy2024.htm (EX-21.1) — 21KB
• form10-kxexhibit231fy2024.htm (EX-23.1) — 2KB
• form10-kxexhibit311q4fy2024.htm (EX-31.1) — 8KB
• form10-kxexhibit312q4fy2024.htm (EX-31.2) — 8KB
• form10-kxexhibit321q4fy2024.htm (EX-32.1) — 4KB
• form10-kxexhibit322q4fy2024.htm (EX-32.2) — 4KB
• compensationrecoupmentpoli.htm (EX-97.1) — 20KB
• apps-20240331_g1.jpg (GRAPHIC) — 60KB
• apps-20240331_g2.jpg (GRAPHIC) — 81KB
• 0001628280-24-025455.txt ( ) — 10048KB
• apps-20240331.xsd (EX-101.SCH) — 52KB
• apps-20240331_cal.xml (EX-101.CAL) — 103KB
• apps-20240331_def.xml (EX-101.DEF) — 268KB
• apps-20240331_lab.xml (EX-101.LAB) — 747KB
• apps-20240331_pre.xml (EX-101.PRE) — 532KB
• apps-20240331_htm.xml (XML) — 1348KB

BUSINESS

BUSINESS 6 ITEM 1A.

RISK FACTORS

RISK FACTORS 10 ITEM 1B. UNRESOLVED STAFF COMMENTS 30 I TEM 1C. C YBERSECURITY 30 ITEM 2.

PROPERTIES

PROPERTIES 31 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 31 ITEM 4. MINE SAFETY DISCLOSURES 31 PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 32 ITEM 6. RESERVED 33 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 33 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 47 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 49 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 83 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 83 ITEM 9B. OTHER INFORMATION 84 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 85 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 86 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 86 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 86 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS , AND DIRECTOR INDEPENDENCE 87 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 87 PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 88 ITEM 16. FORM 10-K SUMMARY 91

SIGNATURES

SIGNATURES 91 Table of Contents PART I CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K ("Annual Report") contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Private Securities Litigation Reform Act of 1995, that involve substantial risks and uncertainties. Forward-looking statements, which involve assumptions and describe our future plans, strategies, and expectations, are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend," "future," "plan," or "project" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are based on assumptions that may be incorrect, and there can be no assurance that any projections or other expectations included in any forward-looking statements will come to pass. Our operations and financial results are subject to various risks and uncertainties, including but not limited to: those described below and in Item 1A of this Annual Report under the heading "Risk Factors", which could harm our business, reputation, financial condition, and results of operations, and adversely affect the trading price of our common stock. Risks Specific to our Business We have a history of net losses. We have a limited operating history for our current portfolio of assets. Growth may place significant demands on our management and our infrastructure. Our operations are global in scope, and we face added business, political, regulatory, legal, operational, financial and economic risks as a result of our international operations. Our financial results could vary significantly from quarter-to-quarter and are difficult to predict. A significant portion of our revenue is derived from a limited number of wireless ca

BUSINESS

ITEM 1. BUSINESS Overview Digital Turbine, Inc., through its subsidiaries (collectively "Digital Turbine" or the "Company"), is a leading independent mobile growth platform that levels up the landscape for advertisers, publishers, carriers, and device original equipment manufacturers ("OEMs"). The Company offers end-to-end products and solutions leveraging proprietary technology to all participants in the mobile application ecosystem, enabling brand discovery and advertising, user acquisition and engagement, and operational efficiency for advertisers. In addition, our products and solutions provide monetization opportunities for OEMs, carriers, and application ("app" or "apps") publishers and developers. Our Products and Services The Company reports its results of operations through the following two segments, each of which represents an operating and a reportable segment, as follows: On Device Solutions The Company's ODS business consists of products and services that simplify the discovery and delivery of mobile apps and content media for device end-users. ODS is comprised of the following product and service groups: Application Media represents the portion of the ODS business platform that delivers apps to end users through partnerships with wireless carriers and OEMs . Application Media optimizes revenue by using proprietary technology to streamline, track, and manage app install demand from hundreds of application developers across various publishers, carriers, OEMs , and devices. Content Media represents the portion of the ODS business platform that presents news, weather, sports, and other content directly within the native device experience (e.g., as the start page in the mobile browser, a widget, on unlock, etc . ) through partnerships with wireless carriers and OEMs. Content Media optimizes revenue by a combination of: Programmatic Ad Partner Revenue - advertising within the content media that's sold on an ad exchange at a market rate (cost-per-th

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View this 10-K filing on SEC EDGAR