Q2 2025 Digital Turbine Inc Earnings Call Transcript
Key Points
- Digital Turbine Inc (APPS) reported sequential revenue growth, with $119 million in revenue for the quarter, indicating some positive momentum.
- The company has signed a multiyear agreement with a new Tier 1 US operator, which is expected to be a growth catalyst in 2025.
- International ODS revenues improved nearly 25% year over year, driven by better revenue per device (RPD) and new supply.
- The AGP business showed strong performance with brand revenues up 26% year-over-year and 13% sequentially.
- The company is undertaking a transformation project to cut more than $25 million in annual costs, aiming to become leaner and improve cash flow.
- The company's progress is below expectations, with new growth not strong enough to offset declines in exited and legacy businesses.
- US device volumes experienced the largest year-on-year percentage decline in the past four quarters, impacting performance.
- The exchange business underperformed expectations in Q2, affecting overall AGP revenue.
- Gross margin declined to 45% from 46% in the previous quarter, influenced by product mix changes in AGP.
- Cash flow from operations was negative $8.7 million, driven by an improvement in working capital and reduced payable balances.
Good day, and welcome to the Digital Turbine Reports fiscal 2025 second-quarter earnings conference call. (Operator Instructions) Please note that this event is being recorded. I would now like to turn the conference over to Brian Bartholomew, Head of Investor Relations. Please go ahead.
Thanks, Nick. Good afternoon, and welcome to the Digital Turbine fiscal 2025 second-quarter earnings conference call. Joining me on the call today to discuss our results are CEO, Bill Stone; and CFO, Barrett Garrison.
Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward-looking statements. These forward-looking statements are based on our current assumptions, expectations and beliefs, including projected operating metrics, future products and services, anticipated market demand and other forward-looking topics.
Although we believe that our assumptions are reasonable, they are not guarantees of future
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