Q: Bill, could you elaborate on the phone activation side of the business and why it seems to be getting worse? Also, are you losing a substantial share on the performance advertising side? A: We are seeing growth with new partners, but it's not enough to offset legacy supply issues in the US. The decline in device supply and reduced software updates are impacting us. On the performance DSP side, we need to improve our AGP business by leveraging first-party data and enhancing AI and machine learning capabilities. This is a major focus area for us.
Q: Can you provide details on the Revenue Per Device (RPD) for the quarter? Was it up, down, or flat? Also, when might the Board consider exploring strategic alternatives? A: We saw improvement in RPDs outside the US, which is encouraging. However, RPDs in the US declined slightly due to software issues. Regarding strategic alternatives, our current focus is on executing our business strategy and improving our operations.
Q: What are the key growth drivers for Digital Turbine moving forward? A: Our growth drivers include expanding our device footprint, enhancing our product portfolio, and leveraging first-party data. We are also focusing on alternative app distribution and improving our AGP business by increasing brand revenues and diversifying away from gaming applications.
Q: How is the transformation program progressing, and what are its main objectives? A: The transformation program aims to achieve over $25 million in cost reductions by streamlining processes and aligning costs with growth opportunities. We have already realized $15 million in annualized savings and plan to reinvest in strategic growth areas like alternative apps.
Q: What is the outlook for the fiscal year 2025, and what are the expectations for the second half of the year? A: We anticipate fiscal year 2025 revenue to be between $475 million and $485 million, with non-GAAP adjusted EBITDA of $65 million to $70 million. We expect sequential revenue growth in Q3 and a return to year-on-year top-line growth in Q4.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.