Digital Turbine (APPS) Roth Capital Partners Annual AdTech Summit summary

Growth drivers and business priorities

• Outpaced market growth with both higher advertiser rates and increased supply volume, driving top-line momentum.

• Five key growth priorities: leveraging first-party data, expanding brand business, enhancing the monetization flywheel, growing Ignite with new device supply and services, and pursuing alternative app opportunities.

• Brand business grew 50% year-over-year, with in-app channels attracting more brand advertisers.

• Alternative app distribution is already meaningful, with major publishers shifting revenue away from traditional app stores.

• OEM and carrier relationships are long-term and create high barriers to entry and exit, resulting in sticky, defensible business.

AI integration and data advantage

• AI drives operational efficiency, enabling revenue growth with reduced headcount and expenses.

• Proprietary data and machine learning (DT IQ) improve advertiser outcomes and support higher ad rates.

• AI is reshaping the macro environment, shifting user time and ad dollars from the open web to apps, benefiting user acquisition businesses.

• Disciplined approach to AI investments due to GPU shortages and token costs, with focus on ROI and strategic partnerships.

• On-device data provides unique, hard-to-replicate signals that enhance ad performance and command premium rates.

Industry trends and competitive landscape

• Alternative app ecosystems are growing rapidly, offering financial and strategic benefits by reducing reliance on Apple and Google.

• Control and diversification in distribution are increasingly important as AI disrupts traditional web-based acquisition.

• The ad tech space is both competitive and collaborative, with major players acting as both customers and competitors.

• Scale, data, and distribution are seen as the primary moats in the sector.

• Revenue is now generated over the device lifecycle, insulating the business from new device shipment fluctuations.