Good day and welcome to the Digital Turbine Fiscal 2025 Third Quarter Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Brian Bartholomew, Head of Investor Relations. Please go ahead sir.

Thank you, Chuck. Good afternoon and welcome to the Digital Turbine fiscal 2025 third 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 performance and some will inevitably prove to be incorrect. Except as required by law, we undertake no obligation to update any forward-looking statements. For a discussion of the risk factors that could cause our actual results to differ materially from those contemplated by our forward-looking statements, please refer to the documents we file with the Securities and Exchange Commission. Also, during this call, we will discuss certain non-GAAP measures of our performance. Non-GAAP measures are not substitutes for GAAP measures. Please refer to today's press release for important information about the limitations of using non-GAAP measures as well as reconciliations of these non-GAAP financial results to the most comparable GAAP measures. Now, I'll turn the call over to our CEO, Mr. Bill Stone.

Thanks, Brian, and good afternoon, everyone. Before diving into our quarterly results, I'd like to announce an exciting addition to our executive team. Steve Lasher will be joining us our new CFO effective tomorrow. Steve brings a wealth of technology and financial leadership experience as a former public company CFO of Vonage and before that handling many financial executive positions with IBM. We're thrilled to have Steve on board. However, it's bittersweet for me as Barrett who has been instrumental in building our business over the past eight years will be transitioning into a consultant role for the next few months to ensure we have a very smooth and solid continuity and transition. When I reflect back on where we were at when Barrett first started on day one and compare that to where we are at today, the progress has been enormous. I want to thank Barrett for everything he has done to build DT and a close relationship we've built over the years, not just as colleagues, but also as friends. Turning to the quarter. I was pleased to see us exceed expectations and also generate positive free cash flow. More specifically, we did $135 million in revenue, $22 million in adjusted EBITDA and $0.13 in non-GAAP EPS. I'll break out additional details in my remarks, but the main takeaways for the investors on the drivers for our improved performance are improved advertising demand for our overall platform. Our transformation efforts are showing early bottom results online results and overall improved execution as a company, especially for our On-Device international business and our brand strategy. We've talked about all these things on prior calls and it's great to see them now showing up in the results and enable us to raise our outlook. For the March quarter, we're…

Great. Thanks, Bill. Hi, everyone. I look forward to getting to know the Digital Turbine shareholder and analyst community moving forward. I'm thrilled to be joining Bill as part of the Digital Turbine leadership team. Digital Turbine is a highly innovative company that sits at the precipice of tremendous market opportunity and I'm eager to contribute to the efforts and unlock significant shareholder value for all our stakeholders. Without any further ado, let me turn it over to Barrett, who will take you through and give you more color around the positive performance for December quarter.

Thanks, Steve, and good afternoon, everyone. Before diving into our quarterly performance, I'd like to take a quick moment to address my transition. Reflecting on my time at Digital Turbine, I am truly humbled and grateful for the incredible journey I've had here over the past eight plus years. What we've achieved as a company, the teams we've built and the partnerships we formed have been nothing short of remarkable. And none of this would have been possible without the dedication and hard work of our talented team members who have made it all happen day in and day out. A special thank you goes to Bill. Working alongside you have been a truly rewarding experience, your leadership, vision and unwavering commitment to our team and our vision have been inspiring. And I have no doubt Digital Turbine will thrive in the years ahead. While this transition is bittersweet, I'm excited for what lies ahead for both myself personally and for Digital Turbine. I will remain involved through the transition to ensure a smooth handoff and I have full confidence that Steve will be an excellent addition to the leadership team. His experience will be invaluable as the company continues on this next wave of growth. Now turning to the performance in the quarter. We were pleased to see results exceeding expectations for top line, profitability and cash flow measures. Revenue of $134.6 million in the quarter was up 13% sequentially, delivering EBITDA of $22 million and generating positive free cash flow of $6.4 million in the quarter. In our ODS segment, revenues reached $91.7 million, a 11% increase from the September quarter and down 3% compared to the same period last year. As Bill highlighted, revenue per device or RPD reached record levels across both US and international devices.…

Thank you. We will now begin the question-and-answer session. [Operator Instructions] And the first question will come from Anthony Stoss with Craig Hallum. Please go ahead.

Good afternoon, guys. Welcome aboard Steve and Barrett best of luck. It was nice working with you through the years. Bill, I wanted to focus on your comments about the brand, big brand names coming back to you on the advertising side. Was that because it was a seasonally strong December quarter? What's changed that they're getting more comfort in coming back to Digital Turbine? And I had a follow-up.

Yes. Thanks, Tony. On the brand business, I'd just like to say it's a good old fashioned hard work. It's perseverance. It takes time to build those relationships on some of the names I mentioned in my prepared remarks. There's advertising agencies, obviously, the brands themselves and a lot of people involved in earning their trust. And so it's something we've been talking about for a long time. And it's been really nice to start seeing it showing up in the results for the business and getting approved to be the in-app choice versus a CTV or retail media and things like that. There are a lot of brand dollars are going to today for a lot of these players is something we think we can really build around right now that we're excited about.

Got it. And now that you're powering the Epic alternative app store and I think they're gearing up to bring on third-party advertisers and there hasn't been much of a response from Google as far as I've seen. Is that giving confidence to other large publishers to get ready to launch their own app stores? And if so, can you maybe not share the names, but just give us a sense of quantity and when you think some of these guys can launch also using Digital Turbine in calendar 2025?

Yes. So Epic has done a great job out there building awareness and really educating the market around this. So they've done an amazing job. I think also in my prepared remarks, I had mentioned Microsoft and their Xbox Group as well that we're doing some things with. And so I think that's another good proof point and validation here. So the awareness is growing and growing. It's much stronger than what we've seen here a year ago and now we're starting to see that growth turn into actual distribution on devices. I think the key watermark I'd highlight for investors is what does the European Commission do with the Digital Markets Act and Apple's compliance of that here as we get into 2025. I think that's going to be an important moment I keep an eye on and perhaps a watershed moment to see a lot of people get a lot more aggressive. And as I mentioned in my remarks, we're really uniquely positioned to take advantage of that.

Thanks, Bill, and congrats on the return to good execution. Thank you.

Thanks, Tony.

[Operator Instructions] Our next question will come from Omar Dessouky with BofA Securities. Please go ahead.

Hey, guys. It's Arthur on for Omar. Thanks for taking my question. So Bill I know it's still early and you guys are not providing outlook for next year yet. But I'm just curious like what are some of the key sort of moving pieces or dynamics you contemplate when thinking about how 2025 would look like probably relative to this year?

Yes. As I think about going into next year and then we'll provide an annual guide. Our anticipation would be as we get into, on our next earnings call, as you're well aware, we start on a March fiscal year, not a calendar year. And as we kind of think about what's important going into this current year, for us, it's really just building on the things we've done over the past year. And now we're in a point to really grow and scale it. So Tony had asked a question on brand. That's absolutely one of those things. I spent a lot of time in my remarks talking about the importance of our data and first-party data and how we better leverage that. We made some real progress on the plumbing for that. Now it's time to take advantage of all the plumbing we've done and actually turn it into revenue and EBITDA for us in the coming year. I talked a lot about devices and that was really something I'd keep an eye on is just our growth in devices from those operators that haven't been our legacy ones over a number of years. I think there's a lot of exciting things happening there and that's when that growth showed up in the December quarter. And so those would be kind of the keys that I think about in terms of our growth into next year, but it's absolutely our intention to continue the momentum that we've been building here.

Thanks, Bill. Appreciate it.

And this concludes our question-and-answer session. I would like to turn the conference back over to Bill Stone for any closing remarks. Please go ahead sir.

Yes. Thanks, everyone. I appreciate you joining the call today. We'll talk to you again on our fiscal '25 fourth quarter call in a few months. Thanks and have a great night.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.