Cover Page
Cover Page - shares | 9 Months Ended | |
Dec. 31, 2020 | Jan. 28, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2020 | |
Entity File Number | 001-35958 | |
Entity Registrant Name | DIGITAL TURBINE, INC. | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-2267658 | |
Entity Address, Address Line One | 110 San Antonio Street, | |
Entity Address, Address Line Two | Suite 160, | |
Entity Address, City or Town | Austin, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78701 | |
City Area Code | 512 | |
Local Phone Number | 387-7717 | |
Title of 12(b) Security | Common Stock, Par Value $0.0001 Per Share | |
Trading Symbol | APPS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 89,413,606 | |
Entity Central Index Key | 0000317788 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Current assets | ||
Cash | $ 43,659 | $ 21,534 |
Restricted cash | 0 | 125 |
Accounts receivable, net of allowances of $4,913 and $4,059, respectively | 59,027 | 33,135 |
Prepaid expenses and other current assets | 1,955 | 3,653 |
Total current assets | 104,641 | 58,447 |
Property and equipment, net | 11,670 | 8,183 |
Right-of-use assets | 3,807 | 4,237 |
Intangible assets, net | 41,871 | 43,882 |
Goodwill | 70,452 | 69,262 |
TOTAL ASSETS | 232,441 | 184,011 |
Current liabilities | ||
Short-term debt, net of issuance costs of $62 and $62, respectively | 1,938 | 1,188 |
Accounts payable | 34,142 | 31,579 |
Accrued license fees and revenue share | 36,188 | 19,423 |
Accrued compensation | 8,340 | 4,311 |
Accrued earn-out | 10,000 | 23,735 |
Other current liabilities | 7,849 | 2,573 |
Total current liabilities | 98,457 | 82,809 |
Long-term debt, net of issuance costs of $198 and $245, respectively | 17,052 | 18,505 |
Other non-current liabilities | 4,758 | 5,243 |
Total liabilities | 120,267 | 106,557 |
Commitments and contingencies (Note 15) | ||
Stockholders' equity | ||
Preferred stock | 100 | 100 |
Common stock | 10 | 10 |
Additional paid-in capital | 370,435 | 360,224 |
Treasury stock (754,599 shares at December 31, 2020 and March 31, 2020) | (71) | (71) |
Accumulated other comprehensive loss | (910) | (591) |
Accumulated deficit | (257,390) | (282,218) |
Total stockholders' equity | 112,174 | 77,454 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 232,441 | $ 184,011 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2020 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 4,913,000 | $ 4,059,000 |
Short-term debt issuance costs | 62,000 | 62,000 |
Long-term debt, issuance costs and discounts | $ 198,000 | $ 245,000 |
Series A convertible preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Series A convertible preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Series A convertible preferred stock, shares issued | 100,000 | 100,000 |
Series A convertible preferred stock, shares outstanding | 100,000 | 100,000 |
Series A convertible preferred stock, liquidation preference | $ 1,000,000 | $ 1,000,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 90,143,539 | 88,041,240 |
Common stock, shares outstanding | 89,409,083 | 87,306,784 |
Treasury stock (in shares) | 754,599 | 754,599 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income / (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||||
Net revenues | $ 88,592 | $ 36,016 | $ 218,497 | $ 99,364 |
Cost of revenues | ||||
License fees and revenue share | 50,144 | 21,576 | 122,976 | 59,997 |
Other direct costs of revenues | 749 | 400 | 1,971 | 1,022 |
Total cost of revenues | 50,893 | 21,976 | 124,947 | 61,019 |
Gross profit | 37,699 | 14,040 | 93,550 | 38,345 |
Operating expenses | ||||
Product development | 5,202 | 2,783 | 13,827 | 8,312 |
Sales and marketing | 5,219 | 2,815 | 14,372 | 7,534 |
General and administrative | 6,761 | 4,310 | 22,096 | 12,212 |
Total operating expenses | 17,182 | 9,908 | 50,295 | 28,058 |
Income from operations | 20,517 | 4,132 | 43,255 | 10,287 |
Interest and other income / (expense), net | ||||
Interest income / (expense), net | (266) | 59 | (859) | 118 |
Change in fair value of warrant liability | 0 | (870) | 0 | (10,601) |
Change in estimated contingent consideration | (4,662) | 0 | (15,419) | 0 |
Other income / (expense) | (13) | (19) | (51) | 455 |
Total interest and other income / (expense), net | (4,941) | (830) | (16,329) | (10,028) |
Income from continuing operations before income taxes | 15,576 | 3,302 | 26,926 | 259 |
Income tax provision | 1,061 | 41 | 2,098 | 6 |
Income from continuing operations, net of taxes | 14,515 | 3,261 | 24,828 | 253 |
Income / (loss) from discontinued operations | 0 | 65 | 0 | (171) |
Net income / (loss) from discontinued operations, net of taxes | 0 | 65 | 0 | (171) |
Net income | 14,515 | 3,326 | 24,828 | 82 |
Other comprehensive loss | ||||
Foreign currency translation adjustment | (132) | (44) | (319) | (364) |
Comprehensive income | $ 14,383 | $ 3,282 | $ 24,509 | $ (282) |
Basic net income per common share | ||||
Continuing operations (in dollars per share) | $ 0.16 | $ 0.04 | $ 0.28 | $ 0 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Net income (in dollars per share) | $ 0.16 | $ 0.04 | $ 0.28 | $ 0 |
Weighted-average common shares outstanding, basic | 89,003 | 85,876 | 88,140 | 83,869 |
Diluted net income per common share | ||||
Continuing operations (in dollars per share) | $ 0.15 | $ 0.04 | $ 0.26 | $ 0 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0 |
Net income (in dollars per share) | $ 0.15 | $ 0.04 | $ 0.26 | $ 0 |
Weighted-average common shares outstanding, diluted | 96,976 | 92,472 | 95,563 | 89,759 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | ||
Net income from continuing operations, net of taxes | $ 24,828 | $ 253 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 5,062 | 1,484 |
Loss on disposal of fixed assets | 0 | 4 |
Provision for doubtful accounts | 854 | 206 |
Non-cash interest expense | 55 | 0 |
Stock-based compensation | 3,545 | 2,044 |
Stock-based compensation for services rendered | 741 | 470 |
Change in fair value of warrant liability | 0 | 10,601 |
Change in estimated contingent consideration | 15,419 | 0 |
Payment of contingent consideration in excess of amount capitalized at acquisition | (5,419) | 0 |
(Increase) / decrease in assets: | ||
Accounts receivable | (26,746) | (4,193) |
Deferred tax assets | 0 | 40 |
Prepaid expenses and other current assets | 1,698 | (829) |
Right-of-use assets | 430 | (2,029) |
Increase / (decrease) in liabilities: | ||
Accounts payable | 2,563 | 5,908 |
Accrued license fees and revenue share | 16,765 | 59 |
Accrued compensation | 4,029 | 855 |
Other current liabilities | 5,273 | 3,459 |
Other non-current liabilities | (485) | 1,823 |
Net cash provided by operating activities - continuing operations | 48,612 | 20,155 |
Net cash used in operating activities - discontinued operations | 0 | (145) |
Net cash provided by operating activities | 48,612 | 20,010 |
Cash flows from investing activities | ||
Acquisition of Mobile Posse | (7,968) | 0 |
Capital expenditures | (6,545) | (3,179) |
Net cash used in investing activities | (14,513) | (3,179) |
Cash flows from financing activities | ||
Payment of contingent consideration | (16,957) | 0 |
Options and warrants exercised | 5,927 | 6,353 |
Repayment of debt obligations | (750) | 0 |
Net cash (used in) / provided by financing activities | (11,780) | 6,353 |
Effect of exchange rate changes on cash | (319) | (364) |
Net change in cash | 22,000 | 22,820 |
Cash and restricted cash, beginning of period | 21,659 | 11,059 |
Cash and restricted cash, end of period | 43,659 | 33,879 |
Supplemental disclosure of cash flow information | ||
Interest paid | 832 | 0 |
Cashless exercise of warrants to purchase common stock of the Company | $ 0 | $ 791 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Preferred Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income / (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Mar. 31, 2019 | 81,620,485 | 100,000 | 754,599 | ||||
Beginning balance at Mar. 31, 2019 | $ 36,358 | $ 10 | $ 100 | $ (71) | $ 332,793 | $ (356) | $ (296,118) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (1,819) | (1,819) | |||||
Foreign currency translation | 98 | 98 | |||||
Settlement of warrant derivative liability | 715 | 715 | |||||
Stock-based compensation (in shares) | 38,759 | ||||||
Stock-based compensation | 560 | 560 | |||||
Stock-based compensation for services rendered | 122 | 122 | |||||
Options exercised (in shares) | 616,208 | ||||||
Options exercised | 910 | 910 | |||||
Warrant exercised (in shares) | 212,250 | ||||||
Warrants exercised | 289 | 289 | |||||
Ending balance (in shares) at Jun. 30, 2019 | 82,487,702 | 100,000 | 754,599 | ||||
Ending balance at Jun. 30, 2019 | 37,233 | $ 10 | $ 100 | $ (71) | 335,389 | (258) | (297,937) |
Beginning balance (in shares) at Mar. 31, 2019 | 81,620,485 | 100,000 | 754,599 | ||||
Beginning balance at Mar. 31, 2019 | 36,358 | $ 10 | $ 100 | $ (71) | 332,793 | (356) | (296,118) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 82 | ||||||
Foreign currency translation | (364) | ||||||
Ending balance (in shares) at Dec. 31, 2019 | 86,322,965 | 100,000 | 754,599 | ||||
Ending balance at Dec. 31, 2019 | 57,251 | $ 10 | $ 100 | $ (71) | 353,968 | (720) | (296,036) |
Beginning balance (in shares) at Jun. 30, 2019 | 82,487,702 | 100,000 | 754,599 | ||||
Beginning balance at Jun. 30, 2019 | 37,233 | $ 10 | $ 100 | $ (71) | 335,389 | (258) | (297,937) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (1,425) | (1,425) | |||||
Foreign currency translation | (418) | (418) | |||||
Settlement of warrant derivative liability | 8,648 | 8,648 | |||||
Stock-based compensation (in shares) | 9,690 | ||||||
Stock-based compensation | 740 | 740 | |||||
Stock-based compensation for services rendered (in shares) | 75,494 | ||||||
Stock-based compensation for services rendered | 175 | 175 | |||||
Options exercised (in shares) | 1,006,792 | ||||||
Options exercised | 1,891 | 1,891 | |||||
Warrant exercised (in shares) | 1,667,293 | ||||||
Warrants exercised | 1,723 | 1,723 | |||||
Ending balance (in shares) at Sep. 30, 2019 | 85,246,971 | 100,000 | 754,599 | ||||
Ending balance at Sep. 30, 2019 | 48,567 | $ 10 | $ 100 | $ (71) | 348,566 | (676) | (299,362) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 3,326 | 3,326 | |||||
Foreign currency translation | (44) | (44) | |||||
Settlement of warrant derivative liability | 2,945 | 2,945 | |||||
Stock-based compensation | 744 | 744 | |||||
Stock-based compensation for services rendered | 173 | 173 | |||||
Options exercised (in shares) | 546,876 | ||||||
Options exercised | 927 | 927 | |||||
Warrant exercised (in shares) | 529,118 | ||||||
Warrants exercised | 613 | 613 | |||||
Ending balance (in shares) at Dec. 31, 2019 | 86,322,965 | 100,000 | 754,599 | ||||
Ending balance at Dec. 31, 2019 | 57,251 | $ 10 | $ 100 | $ (71) | 353,968 | (720) | (296,036) |
Beginning balance (in shares) at Mar. 31, 2020 | 87,306,784 | 100,000 | 754,599 | ||||
Beginning balance at Mar. 31, 2020 | 77,454 | $ 10 | $ 100 | $ (71) | 360,224 | (591) | (282,218) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 9,940 | 9,940 | |||||
Foreign currency translation | (142) | (142) | |||||
Stock-based compensation | 1,438 | 1,438 | |||||
Stock-based compensation for services rendered | 173 | 173 | |||||
Options exercised (in shares) | 224,012 | ||||||
Options exercised | 437 | 437 | |||||
Ending balance (in shares) at Jun. 30, 2020 | 87,530,796 | 100,000 | 754,599 | ||||
Ending balance at Jun. 30, 2020 | 89,300 | $ 10 | $ 100 | $ (71) | 362,272 | (733) | (272,278) |
Beginning balance (in shares) at Mar. 31, 2020 | 87,306,784 | 100,000 | 754,599 | ||||
Beginning balance at Mar. 31, 2020 | 77,454 | $ 10 | $ 100 | $ (71) | 360,224 | (591) | (282,218) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 24,828 | ||||||
Foreign currency translation | (319) | ||||||
Ending balance (in shares) at Dec. 31, 2020 | 89,409,083 | 100,000 | 754,599 | ||||
Ending balance at Dec. 31, 2020 | 112,174 | $ 10 | $ 100 | $ (71) | 370,435 | (910) | (257,390) |
Beginning balance (in shares) at Jun. 30, 2020 | 87,530,796 | 100,000 | 754,599 | ||||
Beginning balance at Jun. 30, 2020 | 89,300 | $ 10 | $ 100 | $ (71) | 362,272 | (733) | (272,278) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 373 | 373 | |||||
Foreign currency translation | (45) | (45) | |||||
Stock-based compensation (in shares) | 61,553 | ||||||
Stock-based compensation | 2,230 | 2,230 | |||||
Stock-based compensation for services rendered (in shares) | 45,110 | ||||||
Stock-based compensation for services rendered | 285 | 285 | |||||
Options exercised (in shares) | 1,059,644 | ||||||
Options exercised | 3,089 | 3,089 | |||||
Ending balance (in shares) at Sep. 30, 2020 | 88,697,103 | 100,000 | 754,599 | ||||
Ending balance at Sep. 30, 2020 | 95,232 | $ 10 | $ 100 | $ (71) | 367,876 | (778) | (271,905) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 14,515 | 14,515 | |||||
Foreign currency translation | (132) | (132) | |||||
Stock-based compensation (in shares) | 15,768 | ||||||
Stock-based compensation | (123) | (123) | |||||
Stock-based compensation for services rendered | 283 | 283 | |||||
Options exercised (in shares) | 696,212 | ||||||
Options exercised | 2,399 | 2,399 | |||||
Ending balance (in shares) at Dec. 31, 2020 | 89,409,083 | 100,000 | 754,599 | ||||
Ending balance at Dec. 31, 2020 | $ 112,174 | $ 10 | $ 100 | $ (71) | $ 370,435 | $ (910) | $ (257,390) |
Description of Business
Description of Business | 9 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Digital Turbine, Inc., through its subsidiaries, simplifies content discovery and delivers it directly to the device. Its on-device media platform powers frictionless application and content discovery, user acquisition and engagement, operational efficiency, and monetization opportunities. Through December 31, 2020, Digital Turbine's technology platform has been adopted by more than 40 mobile operators and device original equipment manufacturers ("OEMs"), and has delivered more than 4.8 billion application preloads for tens of thousands of advertising campaigns. The Company operates this business as one operating and reportable segment - Media Distribution, which was previously referred to as the operating segment O&O (operators and OEMs) and the reportable segment Advertising. As the Company's suite of product offerings expands, both organically and through acquisitions, we believe that this renaming of our reporting and operating segment better reflects the way management views the business. There are no changes or historical differences to product offerings and financial information that were referred to as the Advertising segment in prior periods. While advertising, in general, remains a focus of our Media Distribution segment, we feel that this change in name more accurately conveys to the reader what we do for our customers and partners. The Company's Media Distribution business consists of products and services that simplify the discovery and delivery of mobile application and content media for consumers. • Application Media represents the portion of the business where our platform delivers apps to end users through partnerships with carrier networks and OEMs. Application Media optimizes revenues by using the developed 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 business where our platform 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 carrier networks 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 (CPM - Cost Per Thousand), ◦ Sponsored Content – sponsored content media from 3 rd party content providers – presented similar to an ad – that is monetized when a recommended story is viewed (CPC – Cost Per Click) ◦ Editorial Content – owned or licensed media – presented similar to an ad – that is monetized when the media is clicked on (CPC - Cost Per Click). On February 28, 2020, the Company completed the acquisition of Mobile Posse, Inc. (the "Acquisition") from ACME Mobile, LLC (“ACME”). The Company acquired all of the outstanding capital stock of Mobile Posse in exchange for an estimated total consideration of: (1) $41,500 in cash paid at closing (subject to customary closing purchase price adjustments) and (2) an estimated earn-out of $23,735, to be paid in cash, based on Mobile Posse achieving certain future target net revenues, less associated revenue shares, over a twelve-month period (the “Earn-Out Period”) following the closing of the Acquisition, noting that the earn-out amount is subject to change based on final results and calculation. Under the terms of the earn-out, over the Earn-Out Period, the Company will pay ACME a certain percentage of actual net revenues (less associated revenue shares) of Mobile Posse depending on the extent to which Mobile Posse achieves certain target net revenues (less associated revenue shares) for the relevant period. The earn-out payments will be paid quarterly with a true-up calculation and payment after the first nine months of the Earn-Out Period. The acquisition of cash is not reflected in the total consideration detailed above. Final working capital adjustments were determined during the quarter ended June 30, 2020 and resulted in additional purchase price consideration of $453, which was reflected on the balance sheet as an increase in goodwill. This changed the initial cash consideration, not inclusive of the earn-out, to $41,953. During the three and nine months ended December 31, 2020, $4,662 and $15,419 was added to the previous estimated earn-out of $23,735, bringing the estimated total earn-out related to the acquisition of Mobile Posse to $39,154. Of the amounts recorded and accrued for the earn-out related to the Acquisition, $29,154 has been paid to ACME, and $10,000 remains accrued as of December 31, 2020. See Note "Commitments and Contingencies" for more information regarding the estimated earn-out. As of December 31, 2020, estimated total consideration, inclusive of estimated remaining earn-out, for the Acquisition is $81,107, of which $71,107 has been paid and $10,000 remains accrued. The actual remaining earn-out payment is subject to continued performance of the Acquisition and is subject to re-valuation prior to the final settlement based on final actual results and calculations in March 2021. During the nine month period ended December 31, 2020 an adjustment to increase goodwill in the amount of $736 was made to reclassify the impact of a change in assumptions related to deferred tax assets previously booked as a component of purchase accounting for the Acquisition. The Acquisition is consistent with the Company's strategy to provide a comprehensive media and advertising solution for operator and OEM partners while enriching the mobile experience for end users by delivering relevant media rich content to their fingertips. The addition of Mobile Posse's offerings will provide synergies and options for our partners and advertisers. The Company's suite of offerings continue to focus on promoting higher user engagement and boosting advertising revenue for mobile operators and OEMs. With global headquarters in Austin, Texas and offices in Durham, North Carolina; San Francisco, California; Arlington, Virginia; São Paulo, Brazil; Mexico City, Mexico; Mumbai, India; Singapore; and Tel Aviv, Israel, Digital Turbine’s solutions are available worldwide. For additional information, please visit www.digitalturbine.com. Unless the context otherwise indicates, the use of the terms “we,” “our,” “us,” “Digital Turbine,” “DT,” or the “Company” refer to the collective businesses and operations of Digital Turbine, Inc. through its operating and wholly-owned subsidiaries: Digital Turbine USA, Inc. (“DT USA”), Digital Turbine EMEA Ltd. (“DT EMEA”), Digital Turbine Australia Pty Ltd (“DT APAC”), Digital Turbine Singapore Pte. Ltd. (“DT Singapore”), Digital Turbine Luxembourg S.a.r.l. (“DT Luxembourg”), Digital Turbine Germany, GmbH (“DT Germany”), Digital Turbine Media, Inc. (“DT Media”), Mobile Posse Inc., and Digital Turbine LATAM Intermediacao De Servicos De Midia LTDA ("DT LATAM"). We refer to all of the Company's subsidiaries collectively as "wholly-owned subsidiaries." |
Liquidity
Liquidity | 9 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity | Liquidity The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("US GAAP"), which contemplate continuation of the Company as a going concern. Our primary sources of liquidity have historically been cash from operations, issuance of common stock, preferred stock, and debt. As of December 31, 2020, we had cash totaling approximately $43,659. On May 23, 2017, the Company entered into a Business Finance Agreement (the "Credit Agreement") with Western Alliance Bank (the "Bank"). The Credit Agreement provided for a $5,000 total facility. On May 22, 2019, the Company amended its existing Credit Agreement with the Bank. The Credit Agreement, as amended, provided for up to a $20,000 total revolving credit facility, subject to draw limitations derived from current levels of eligible domestic receivables. On February 28, 2020, the Company entered into a new credit agreement (the "New Credit Agreement") with the Bank, which provides for (1) a term loan of $20,000, the proceeds of which the Company used to pay a portion of the closing cash purchase price for the Acquisition, and (2) a revolving line of credit of $5,000 to be used for working capital purposes. DT USA and DT Media are additional co-borrowers under the New Credit Agreement. The term loan must be repaid on a quarterly basis which began on July 2020 until the term loan maturity date of February 28, 2025, at which time the remaining unpaid principal balance must be repaid. The quarterly principal payment amounts increase from $250 to $1,250 over the term of the term loan. In addition, the Company must, following each fiscal year-end, make principal repayments equal to a percentage of its excess cash flow (as defined under the New Credit Agreement) for the fiscal year, which percentage is determined based on the Company’s total funded debt to consolidated adjusted EBITDA ratio. The revolving line of credit matures on February 28, 2025. In connection with the Company entering into the New Credit Agreement with the Bank on February 28, 2020, the Company and the Bank terminated the Credit Agreement, which was the previous revolving credit facility of the Company. As of December 31, 2020, the Company's principal amount outstanding under the New Credit Agreement was $19,250 and no amount was drawn on the $5,000 revolving line of credit. Please refer to the "Debt" footnote for more detail. The Company anticipates that its primary sources of liquidity will continue to be cash-on-hand, cash provided by operations, and the credit available under the New Credit Agreement. In addition, the Company may raise additional capital through future equity or, subject to restrictions contained in the New Credit Agreement, debt financing to provide for greater flexibility to make acquisitions, new investments in under-capitalized opportunities, or to invest in organic opportunities. Additional financing may not be available on acceptable terms or at all. If the Company issues additional equity securities to raise funds, the ownership percentage of its existing stockholders would be reduced. New investors may demand rights, preferences, or privileges senior to those of existing holders of common stock. During the evaluation by management of the Company’s financial position, factors such as working capital, current market capitalization, enterprise value, and the fiscal year 2021 operating plan of the Company were considered when determining the ability of the Company to continue as a going concern. Recoverability of a major portion of the recorded asset amounts shown in the accompanying consolidated balance sheet is dependent upon continued operations of the Company, which, in turn, is dependent upon the Company’s ability to generate positive cash flows from operations. Based on the year-over-year revenue and gross margin increases, coupled with the Company’s management of operating expenses and access to debt, management has determined that when considering all relevant quantitative and qualitative factors, the Company appears to have sufficient cash and capital resources to continue to operate its business for at least twelve months from the filing date of this quarterly report on Form 10-Q. In view of the matters described in the preceding paragraphs, the consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts, or amounts and classifications of liabilities, that might be necessary should the Company be unable to continue its existence. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The financial statements have been prepared in accordance with US GAAP and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for annual financial statements. The financial statements, in the opinion of management, include all adjustments necessary for a fair statement of the results of operations, financial position and cash flows for each period presented. Interim Consolidated Financial Information The accompanying consolidated financial statements of Digital Turbine, Inc. and its subsidiaries should be read in conjunction with the consolidated financial statements and accompanying notes filed with the SEC in Digital Turbine, Inc.'s Annual Report on Form 10-K for the fiscal year ended March 31, 2020 (the "Annual Report"). The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments of a normal recurring nature considered necessary to fairly state the financial position of Digital Turbine, Inc. and its consolidated subsidiaries at December 31, 2020, the results of their operations and corresponding comprehensive income / (loss) for the three and nine months ended December 31, 2020 and 2019, and their cash flows for the nine months ended December 31, 2020 and 2019. The consolidated financial statements include the accounts of the Company and our wholly-owned subsidiaries. All material inter-company balances and transactions have been eliminated in consolidation. The results of operations for the interim period are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2021. Recently Issued Accounting Pronouncements Significant accounting policies and recent accounting pronouncements are described in the Notes of the consolidated financial statements, under the heading "Summary of Significant Accounting Policies," included in the Annual Report on Form 10-K for the fiscal year ended March 31, 2020. There have been no significant changes in or updates to the accounting policies since March 31, 2020. Only significant new accounting pronouncements, pertinent to the Company, issued and adopted subsequent to the issuance of our Annual Report are described below. Accounting pronouncements issued and adopted not described in either the Annual Report or in this quarterly report have been determined to either not apply or to have an immaterial impact on our business and related disclosures. Accounting Pronouncements Adopted During the Period In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2018-15, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2019. As such, the Company adopted this standard during the quarter ended June 30, 2020 on a prospective basis, and such adoption has not had a material impact on the Company's consolidated results of operations, financial condition, and cash flows in the current presented periods. In August 2018, the FASB issued ASU 2018-13: Fair Value Measurement (Topic 820). The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, as a result of the FASB’s final deliberations of the financial reporting concepts pursuant to the March 4, 2014 issued FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, as they relate to fair value measurement disclosures. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2019. As such, the Company has adopted this standard during our quarter ended June 30, 2020, and it has not materially impacted our consolidated results of operations, financial condition and cash flows. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments". Financial Instruments—Credit Losses (Topic 326) amends guideline on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2019. As such, the Company has adopted this standard during our quarter ended June 30, 2020, and it has not materially impacted our consolidated results of operations, financial condition and cash flows. Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and accounts receivable. A significant portion of the Company’s cash is held at one major financial institution that the Company's management has assessed to be of high credit quality. The Company has not experienced any losses in such accounts. The Company mitigates its credit risk with respect to accounts receivable by performing credit evaluations and monitoring advertisers' and carriers' accounts receivable balances. The Company counts all advertisers and carriers within a single corporate structure as one customer, even in cases where multiple brands, branches, or divisions of an organization enter into separate contracts with the Company. As of December 31, 2020, one major customer represented approximately 12.7% of the Company’s net accounts receivable balance. As of March 31, 2020, two major customers represented 11.6% and 11.5% of the Company's net accounts receivable balance. With respect to customer revenue concentration, the Company defines a customer as an advertiser or a carrier that is a distinct source of revenue and is legally bound to pay for the services that the Company delivers on the advertiser’s or carrier's behalf. During the three and nine months ended December 31, 2020, no single customer represented 10.0% or greater of the Company's net revenues. During the three and nine months ended December 31, 2019, Verizon Communications Inc., primarily through its subsidiary Oath Inc., represented 14.4% and 17.7%, respectively, of net revenues. With respect to revenue partner concentration, the Company partners with mobile carriers and OEMs to deliver applications on our platform through the carrier network. During the three and nine months ended December 31, 2020, Verizon Wireless, a carrier partner, generated 16.5% and 18.6%, respectively; AT&T Inc., a carrier partner, including its Cricket subsidiary, generated 20.3% and 22.0%, respectively; T-Mobile US Inc., including Sprint and other subsidiaries, generated 30.6% and 27.0%, respectively; and America Movil Inc., a carrier partner, primarily through its subsidiary TracFone Wireless Inc., generated 10.4% and 10.4%, respectively, of our net revenues. During the three and nine months ended December 31, 2019, Verizon Wireless, a carrier partner, generated 37.5% and 40.3%, respectively; and AT&T Inc., a carrier partner, including its Cricket subsidiary, generated 29.8% and 30.9%, respectively, of our net revenues. There is no assurance that the Company will continue to receive significant revenues from any of these or other large customers. A reduction or delay in operating activity from any of the Company’s significant customers or partners, or a delay or default in payment by any significant customer, or a termination of agreements with significant customers, could materially harm the Company’s business and prospects. Because of the Company’s significant customer concentrations, its net sales and operating income could fluctuate significantly due to changes in political or economic conditions, or the loss of, reduction of business from, or less favorable terms with any of the Company's significant customers. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates that impact the reported amounts in the consolidated financial statements and accompanying notes. These estimates are recurring in nature and relate to transactions occurring in the normal course of business. In the opinion of management, these are appropriate estimates for arrangements to be settled at a later date based on the facts and circumstances available at the time of filing. Actual results could differ materially from those estimates. The COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further business slowdowns or shutdowns, depress demand for our advertising business, and adversely impact our results of operations. We expect uncertainties around our key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. Our estimates may change as new events occur and additional information emerges, and such changes may be recognized and disclosed in our consolidated financial statements. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On April 29, 2018, the Company entered into two distinct disposition agreements with respect to selected assets owned by our subsidiaries. DT APAC and DT Singapore (together, “Pay Seller”), each wholly-owned subsidiaries of the Company, entered into an Asset Purchase Pay Agreement (the “Pay Agreement”), dated as of April 23, 2018, with Chargewave Ptd Ltd (“Pay Purchaser”) to sell certain assets (the “Pay Assets”) owned by the Pay Seller related to the Company’s Direct Carrier Billing business. The Pay Purchaser is principally-owned and controlled by Jon Mooney, an officer of the Pay Seller. At the closing of the asset sale, Mr. Mooney was no longer employed by the Company or Pay Seller. As consideration for this asset sale, Digital Turbine is entitled to receive certain license fees, profit-sharing, and equity participation rights as disclosed in the Company’s Form 8-K filed on May 1, 2018 with the SEC. The transaction was completed on July 1, 2018. With the sale of these assets, the Company exited the segment of the business previously referred to as the Content business. In accordance with the Pay Agreement, the Company assigned and transferred a material contract to the Pay Purchaser. Subsequent to the transaction closing associated with the Pay Agreement, the Company received notification from the Pay Purchaser that the partner to the material contract had terminated the contract with the Pay Purchaser. Due to the material contract being terminated, the Company determined that the estimated earn-out from the Pay Purchaser was $0. As all the assets being transferred had been fully impaired prior to the closing of the transaction, the gain/loss on sale related to the Pay Agreement transaction was $0. Furthermore, the Company retained certain receivables and payables for content delivered for the benefit of the partner to the material contract, where these certain receivables and payables were all recognized prior to the closing of the Pay Agreement. As of December 31, 2020, the Company has determined there to be uncertainty surrounding the collectability of the receivables due to ongoing discussions with the business partner. We have determined that the amounts recorded are more likely than not to be uncollectible due to disputes surrounding the content delivered. Furthermore, the related payables would also be contractually withheld unless payment is received at a later date. At this time, the Company has reserved for all balances remaining, both receivables and payables, related to the discontinued operations of the Pay business. The total impact to the Company if all of the remaining receivables and payables are subsequently collected and paid is immaterial. These fully reserved assets and liabilities remain on our books as of December 31, 2020. DT Media, a wholly-owned subsidiary of the Company, entered into an Asset Purchase Agreement (the “A&P Agreement”), dated as of April 28, 2018, with Creative Clicks B.V. (the “A&P Purchaser”) to sell business relationships with various advertisers and publishers (the “A&P Assets”) related to the Company’s Advertising and Publishing business. As consideration for this asset sale, we are entitled to receive a percentage of the gross profit derived from these customer agreements, for a period of three years, as outlined in the Company’s Form 8-K filed on May 1, 2018 with the SEC. The transaction was completed on June 28, 2018 with an effective date of June 1, 2018. With the sale of these assets, the Company exited the operating segment of the business previously referred to as the A&P business, which was previously part of Advertising, the Company's sole reporting segment (which is now Media Distribution). No gain or loss on sale was recognized related to this divestiture. All transferred assets and liabilities, with the exception of goodwill, were fully amortized prior to entering into the sales agreement. As the consideration given by the purchaser was already materially determined at March 31, 2018, goodwill was impaired to the estimated future cash flows of the divested business, which was effectively the purchase price. With the consummation of the sale, the remaining goodwill asset was netted against the purchase price receivable for a net impact of $0 on the Consolidated Statement of Operations and Comprehensive Loss for the year ended March 31, 2019. These dispositions have allowed the Company to benefit from a streamlined business model, simplified operating structure, and enhanced management focus. No assets or liabilities were held for disposal as of December 31, 2020 or March 31, 2020. The following table summarizes the financial results of our discontinued operations for all periods presented in the accompanying Consolidated Statements of Operations and Comprehensive Income / (Loss): Condensed Statements of Operations and Comprehensive Income / (Loss) For Discontinued Operations (in thousands, except per share amounts) (Unaudited) Three months ended December 31, Nine months ended December 31, 2020 2019 2020 2019 Net revenues $ — $ — $ — $ — Total cost of revenues — (102) — (102) Gross profit — 102 — 102 Product development — — — 62 General and administrative — 37 — 122 Loss from operations — 65 — (82) Interest and other income / (expense), net — — — (89) Loss from discontinued operations before income taxes — 65 — (171) Loss from discontinued operations, net of taxes — 65 — (171) Comprehensive loss $ — $ 65 $ — $ (171) Basic and diluted net loss per common share $ — $ — $ — $ — Weighted-average common shares outstanding, basic — 85,876 — 83,869 Weighted-average common shares outstanding, diluted — 92,472 — 89,759 The following table provides reconciling cash flow information for our discontinued operations: Nine months ended December 31, 2020 2019 (Unaudited) (Unaudited) Cash flows from operating activities Net loss from discontinued operations, net of taxes $ — $ (171) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization — 19 Change in allowance for doubtful accounts — (47) Loss on disposal of fixed assets — 104 (Increase) / decrease in assets: Accounts receivable — 405 Increase / (decrease) in liabilities: Accounts payable — (232) Accrued license fees and revenue share — (202) Accrued compensation — (56) Other current liabilities — 35 Cash used in operating activities — (145) Cash used in discontinued operations $ — $ (145) |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable December 31, 2020 March 31, 2020 (Unaudited) Billed $ 28,672 $ 18,927 Unbilled 35,268 18,267 Allowance for doubtful accounts (4,913) (4,059) Accounts receivable, net $ 59,027 $ 33,135 Billed accounts receivable represents amounts billed to customers that have yet to be collected. Unbilled accounts receivable represents revenue recognized but billed after period end. All unbilled receivables as of December 31, 2020 and March 31, 2020 are expected to be billed and collected (subject to the reserve for allowance for doubtful accounts) within twelve months. The Company recorded $187 and $415 of bad debt expense during the three and nine months ended December 31, 2020 , and $56 and $184 of bad debt expense during the three and nine months ended December 31, 2019. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment December 31, 2020 March 31, 2020 (Unaudited) Computer-related equipment $ 2,141 $ 1,953 Developed software 15,989 9,696 Furniture and fixtures 689 681 Leasehold improvements 2,147 2,099 Property and equipment, gross 20,966 14,429 Accumulated depreciation (9,296) (6,246) Property and equipment, net $ 11,670 $ 8,183 Depreciation expense was $1,151 and $3,052 for the three and nine months ended December 31, 2020, respectively, and $540 and $1,484 for the three and nine months ended December 31, 2019, respectively. Depreciation expense for the three and nine months ended December 31, 2020 includes $403 and $1,081, respectively, related to internal-use assets included in general and administrative expense and $748 and $1,971, respectively, related to internally-developed software to be sold, leased, or otherwise marketed included in other direct costs of revenue. Depreciation expense for the three and nine months ended December 31, 2019 includes $140 and $462, respectively, related to internal-use assets included in general and administrative expense and $400 and $1,022, respectively, related to internally-developed software to be sold, leased, or otherwise marketed included in other direct costs of revenue. |
Leases
Leases | 9 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company has entered into various non-cancelable operating lease agreements for certain offices. These leases currently have lease periods expiring between fiscal years 2024 and 2026. The lease agreements may include one or more options to renew. Renewals were not assumed in the Company's determination of the lease term unless the renewals were deemed to be reasonably assured at lease commencement. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease costs, weighted-average lease term, and discount rate are detailed below. Schedule, by fiscal year, of maturities of lease liabilities as of: December 31, 2020 (Unaudited) Remainder of fiscal year 2021 $ 366 Fiscal year 2022 1,493 Fiscal year 2023 1,549 Fiscal year 2024 1,374 Fiscal year 2025 1,081 Thereafter 882 Total undiscounted cash flows 6,745 (Less imputed interest) (853) Present value of lease liabilities $ 5,892 The current portion of our lease liabilities, payable within the next 12 months, is included in other current liabilities other non-current liabilities Associated with this financial liability, the Company has a right-of-use asset of $3,807 as of December 31, 2020, which is calculated using the present value of lease liabilities less any lease incentives received from our landlords and any deferred rent liability balance as of the date of implementation. The discount rate used to calculate the imputed interest above ranges from 5.50% to 6.75% and the weighted-average remaining lease term is 4.59 years. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The components of intangible assets at December 31, 2020 and March 31, 2020 were as follows: As of December 31, 2020 (Unaudited) Cost Accumulated Amortization Net Developed technology $ 7,926 $ (6,101) $ 1,825 Customer relationships 46,971 (6,925) 40,046 Total $ 54,897 $ (13,026) $ 41,871 As of March 31, 2020 Cost Accumulated Amortization Net Developed technology $ 7,926 $ (5,861) $ 2,065 Customer relationships 46,971 (5,154) 41,817 Total $ 54,897 $ (11,015) $ 43,882 The Company recorded amortization expense of $670 and $2,011, respectively, during the three and nine months ended December 31, 2020 and $0 during the three and nine months ended December 31, 2019. Amortization expense for the three and nine months ended December 31, 2020 is a component of general and administrative operating expenses in the Consolidated Statements of Operations and Comprehensive Income / (Loss). The determination of the expense category for amortization of intangible assets is determined by capitalization under ASC 350, Intangibles - Goodwill and Other, or ASC 985-20, Costs of Software to be Sold, Leased, or Otherwise Marketed. ASC 350 leads to accounting for amortization of intangible assets under operating expenses, while ASC 985-20 leads to accounting for amortization of intangible assets under other direct costs of revenues. Based on the amortizable intangible assets as of December 31, 2020, the Company expects future amortization expense to be approximately $2,681 per year over the next five fiscal years and $28,465 in residual expense thereafter. |
Debt
Debt | 9 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Secured Credit Facility On May 23, 2017, the Company entered into a Business Finance Agreement (the “Credit Agreement”) with Western Alliance Bank (the “Bank”). The Credit Agreement provided for a $5,000 total revolving credit facility. On May 22, 2019, the Company amended its existing Credit Agreement with the Bank, to extend the term of the agreement to May 22, 2021, to increase the maximum available revolving credit and to modify the covenants as detailed below. The Credit Agreement, as amended, provided for up to a $20,000 total facility, subject to draw limitations derived from current levels of eligible domestic receivables. The amounts advanced under the Credit Agreement, as amended, accrued interest at prime, as published in the Wall Street Journal, plus 0.50%, subject to a 6.00% floor. The Credit Agreement contained customary covenants, representations, indemnities, and events of default.The obligations under the Credit Agreement were secured by a perfected first-position security interest in all assets of the Company and its subsidiaries. Two of the Company’s subsidiaries, Digital Turbine USA and Digital Turbine Media, were additional co-borrowers. On February 28, 2020, the Company entered into a new credit agreement (the "New Credit Agreement") with the Bank, which provides for (1) a term loan of $20,000, the proceeds of which the Company used to pay a portion of the closing cash purchase price for the Acquisition, and (2) a revolving line of credit of $5,000 to be used for working capital purposes. DT Media and DT USA are also additional co-borrowers under the New Credit Agreement. The term loan must be repaid on a quarterly basis, beginning in July 2020, until the term loan maturity date of February 28, 2025, at which time the remaining unpaid principal balance must be repaid. The quarterly principal payment amounts increase from $250 to $1,250 over the term of the term loan. In addition, the Company must, following each fiscal year-end, make principal repayments equal to a percentage of its excess cash flow (as defined under the New Credit Agreement) for the fiscal year, which percentage is determined based on the Company’s total funded debt to consolidated adjusted EBITDA ratio. The revolving line of credit matures on February 28, 2025. Amounts outstanding under the New Credit Agreement accrue interest at an annual rate equal to LIBOR (or, if necessary, a broadly-adopted replacement index), subject to a 1.75% floor, plus 3.75%. The obligations under the New Credit Agreement are secured by a perfected first-priority security interest in all the assets of the Company and its subsidiaries. The New Credit Agreement contains customary covenants, representations and events of default, and also requires the Company to comply with a fixed charge coverage ratio and total funded debt to consolidated adjusted EBITDA ratio. The New Credit Agreement contains representations and warranties by each of the parties to the New Credit Agreement, which were made only for purposes of the New Credit Agreement and as of specified dates. The representations, warranties and covenants in the New Credit Agreement were made solely for the benefit of the parties to the New Credit Agreement, are subject to limitations agreed upon by such parties, including being qualified by schedules, may have been made for the purposes of allocating contractual risk between the parties instead of establishing these matters as facts, and are subject to standards of materiality applicable to the parties that may differ from those applicable to others. Others should not rely on the representations, warranties and covenants or any descriptions thereof as characterizations of the actual state of facts or condition of the Company or any of its subsidiaries or affiliates. Moreover, information concerning the subject matter of the representations, warranties and covenants may change after the date of the New Credit Agreement, which subsequent information may or may not be fully reflected in the Company’s public disclosures. In connection with the Company entering into the New Credit Agreement with the Bank, on February 28, 2020, the Company and the Bank terminated the existing Credit Agreement, which was the previous revolving credit facility of the Company. At December 31, 2020, there was $19,250 outstanding principal on the New Credit Agreement and the Company had $5,000 available to draw under the revolving line of credit. The Company was in compliance with all covenants of the New Credit Agreement as of December 31, 2020. On February 3, 2021, the Company entered into a new $100,000 revolving credit facility with Bank of America and, in connection therewith, terminated the New Credit Agreement and repaid all amounts outstanding thereunder. For further discussion, see Note "Subsequent Events." Interest Income / (Expense) The Company recorded $(266) and $(859), respectively, of interest income / (expense), net, during the three and nine months ended December 31, 2020. This is comprised of amortization of annual facility fees and interest accrued on drawn amounts under the New Credit Agreement, partially offset by interest income earned on cash balances. In the prior fiscal year, the Company recorded $59 and $118, respectively, of interest income / (expense) during the three and nine months ended December 31, 2019. This is comprised of interest income earned on cash balances. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The inputs to the valuation techniques used to measure fair value are classified into the following categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Under ASC 820, a fair value measurement of a nonfinancial asset considers a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. Therefore, fair value is a market-based measurement and not an entity-specific measurement. It is determined based on assumptions that market participants would use in pricing the asset or liability. The exit price objective of a fair value measurement applies regardless of the reporting entity’s intent and/or ability to sell the asset or transfer the liability at the measurement date. The fair value was measured by applying the present value of the expected contingent payments to be made to a Monte Carlo probability-weighted discounted cash flow model for probabilities of possible future payments. As of December 31, 2020, the carrying value of cash and cash equivalents, trade accounts receivables, and accounts payable approximates fair value due to the short-term nature of such instruments. The following table summarizes the fair value of our financial assets and liabilities that are measured at fair value: Level 1 Level 2 Level 3 As of December 31, 2020 Financial Liabilities Estimated earn-out related to the purchase of Mobile Posse $ — — 10,000 $ 10,000 Total — — 10,000 10,000 The following table provides a reconciliation of the beginning and ending balances for the estimated contingent earn-out liability measured at fair value using significant unobservable inputs (Level 3): Level 3 Balance at March 31, 2020 $ 23,735 Change in estimated earn-out consideration 15,419 Payment of earn-out consideration (29,154) Balance at December 31, 2020 $ 10,000 |
Description of Stock Plans
Description of Stock Plans | 9 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Description of Stock Plans | Description of Stock Plans Employee Stock Plan On September 15, 2020, the Company’s stockholders approved the 2020 Equity Incentive Plan of Digital Turbine, Inc. (the “2020 Plan”), pursuant to which the Company may grant equity incentive awards to directors, employees and other eligible participants. A total of 12,000,000 shares of common stock are reserved for grant under the 2020 Plan. The types of awards that may be granted under the 2020 Plan include incentive and non-qualified stock options, stock appreciation rights, restricted stock, and restricted stock units. The 2020 Plan became effective on September 15, 2020 and has a term of ten years. Stock options may be either “incentive stock options” (“ISOs”), as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or non-qualified stock options (“NQSOs”). Previous to the approval of the Plan, stock awards were issued under the Amended and Restated Digital Turbine, Inc. 2011 Equity Incentive Plan (the “2011 Plan”), which was approved and adopted by our stockholders by written consent on May 23, 2012. The 2011 Plan provided for grants of stock-based incentive awards to our and our subsidiaries’ officers, employees, non-employee directors, and consultants. Awards issued under the 2011 Plan can include stock options, stock appreciation rights, restricted stock, and restricted stock units. Stock options may be either ISOs, as defined in Section 422 of the Internal Revenue Code of 1986, as amended, or NQSOs. The 2011 Plan and 2020 Plan are collectively referred to as "Digital Turbine's Incentive Plans." The 2011 Plan reserved 20,000,000 shares for issuance, of which zero and 6,366,088 remained available as of December 31, 2020 and March 31, 2020, respectively. No future grants will be issued pursuant to the 2011 Plan. At the point when the 2011 Plan was retired, 4,452,064 remained unissued. All future awards will be issued under the 2020 Plan. The 2020 Plan reserves 12,000,000 shares for issuance, of which 11,965,342 remained available for issuance as of December 31, 2020. The change over the period represents stock option grants, stock option forfeitures/cancellations, and restricted shares/units of common stock of 34,658 shares, zero shares, and zero shares, respectively. Restricted Stock Units Awards of restricted stock units ("RSUs") may be either grants of time-based restricted units or performance-based restricted units that are issued at no cost to the recipient. The cost of these awards is determined using the fair market value of the Company’s common stock on the date of the grant. No capital transaction occurs until the units vest, at which time they are converted to unrestricted stock. Compensation expense for RSUs with a time condition is recognized on a straight-line basis over the requisite service period. Compensation expense for RSUs with a performance condition are recognized on a straight-line basis based on the most likely attainment scenario, which is re-evaluated each reporting period. In June 2018, the Company issued 232,558 RSUs to its Chief Executive Officer and Chief Financial Officer. The shares vest over three years. The fair value of the shares on the date of issuance was $400. In May 2019, the Company issued 109,416 RSUs to its Chief Executive Officer and Chief Financial Officer. The shares vest over three years. The fair value of the shares on the date of issuance was $413. In May 2020, the Company issued 109,034 RSUs to its Chief Executive Officer and Chief Financial Officer. The shares vest over three years. The fair value of the shares on the date of issuance was $700. With respect to RSUs, the Company expensed $126 and $339 during the three and nine months ended December 31, 2020, respectively, and $68 and $152 during the three and nine months ended December 31, 2019, respectively. Remaining unamortized expense, with respect to RSUs, of $815 is expected to be recognized over a weighted-average period of approximately 2.42 years. Number of Shares Weighted-Average Grant Date Fair Value Unvested restricted units outstanding as of March 31, 2020 293,525 $ 2.48 Granted 109,034 6.42 Vested (77,321) 2.49 Cancelled — — Unvested restricted units outstanding as of December 31, 2020 325,238 $ 3.91 Stock Option Agreements Stock options granted under Digital Turbine's Incentive Plans typically vest over a three Stock Option Activity The following table summarizes stock option activity for Digital Turbine's Incentive Plans for the periods or as of the dates indicated: Number of Weighted Average Weighted Average Aggregate Intrinsic Options Outstanding, March 31, 2020 8,984,430 $ 2.75 7.17 $ 16,517 Granted 1,937,462 6.47 Forfeited / Cancelled (282,840) 5.58 Exercised (1,979,387) 2.99 Options Outstanding, December 31, 2020 8,659,665 3.44 7.11 460,038 Vested and expected to vest (net of estimated forfeitures) at December 31, 2020 (a) 7,784,550 3.14 6.90 415,871 Exercisable, December 31, 2020 4,870,289 $ 2.43 6.10 $ 263,634 (a) For options vested and expected to vest, options exercisable, and options outstanding, the aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between Digital Turbine's closing stock price on December 31, 2020 and the exercise price multiplied by the number of in-the-money options) that would have been received by the option holders, had the holders exercised their options on December 31, 2020. The intrinsic value changes based on changes in the price of the Company's common stock. Information about options outstanding and exercisable at December 31, 2020 is as follows: Options Outstanding Options Exercisable Exercise Price Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Life (Years) Number of Shares Weighted-Average Exercise Price $0.00 - 5.00 6,008,608 $ 2.09 6.22 4,417,792 $ 2.08 $5.01 - 10.00 2,458,446 $ 5.67 9.10 446,846 $ 5.65 $10.01 - 15.00 126,272 $ 13.43 9.52 — $ — $15.01 - 20.00 31,681 $ 15.54 9.53 3,734 $ 15.54 $30.01 - and over 34,658 $ 30.03 9.83 1,917 $ 30.03 8,659,665 3.44 7.11 4,870,289 2.43 Other information pertaining to stock options for Digital Turbine's Incentive Plans for the nine months ended December 31, 2020 and 2019, as stated in the table below, is as follows: December 31, 2020 2019 Total fair value of options vested $ 3,340 $ 2,028 Total intrinsic value of options exercised (a) $ 52,657 $ 10,364 (a) The total intrinsic value of options exercised represents the total pre-tax intrinsic value (the difference between the stock price at exercise and the exercise price multiplied by the number of options exercised) that was received by the option holders who exercised their options during the nine months ended December 31, 2020 and 2019. During the nine months ended December 31, 2020 and 2019, the Company granted options to purchase 1,937,462 and 1,738,750 shares of its common stock, respectively, to employees with weighted-average grant-date fair values of $6.47 and $4.34, respectively. At December 31, 2020 and 2019, there was $6,495 and $3,518 of total unrecognized stock-based compensation expense, respectively, net of estimated forfeitures, related to unvested stock options expected to be recognized over a weighted-average period of 2.12 and 2.16 years, respectively. Valuation of Awards For stock options granted under Digital Turbine's Incentive Plans, the Company typically uses the Black-Scholes option pricing model to estimate the fair value of stock options at grant date. The Black-Scholes option pricing model incorporates various assumptions, including volatility, expected term, risk-free interest rates, and dividend yields. The assumptions utilized in this model for options granted during the nine months ended December 31, 2020 are presented below. December 31, 2020 Risk-free interest rate 0.21% to 0.36% Expected life of the options 5.02 to 5.23 years Expected volatility 64% to 69% Expected dividend yield —% Expected forfeitures 28% to 29% Expected volatility is based on a blend of implied and historical volatility of the Company's common stock over the most recent period commensurate with the estimated expected term of the Company’s stock options. The Company uses this blend of implied and historical volatility, as well as other economic data, because management believes such volatility is more representative of prospective trends. The expected term of an award is based on historical experience and on the terms and conditions of the stock awards granted to employees. Total stock compensation expense for Digital Turbine's Incentive Plans for the three and nine months ended December 31, 2020, which includes both stock options and restricted stock, was $160 and $4,126, respectively, inclusive of an adjustment during the three months ended December 31, 2020 of $(1,397) as a true-up related to the Company's adoption of ASU 2018-07. Although this is an out-of-period adjustment, the Company determined that the adjustment was not material to the consolidated financial statements for any previously reported annual or interim period, nor to the three and nine months ended December 31, 2020. Therefore, we recorded the adjustment in the third quarter of fiscal year 2021 rather than revising prior periods presented. Total stock compensation expense for Digital Turbine's Incentive Plans for the three and nine months ended December 31, 2019, which includes both stock options and restricted stock, was $915 and $1,597, respectively. Please refer to Note "Capital Stock Transactions" regarding restricted stock. |
Capital Stock Transactions
Capital Stock Transactions | 9 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Capital Stock Transactions | Capital Stock Transactions Preferred Stock There are 2,000,000 shares of Series A Convertible Preferred Stock authorized, $0.0001 par value per share (“Series A”), and 100,000 shares of Series A issued and outstanding, which are currently convertible into 20,000 shares of common stock. The Series A holders are entitled to: (1) vote on an equal per-share basis as common stock, (2) dividends paid to the common stock holders on an if-converted basis, and (3) a liquidation preference equal to the greater of $10 per share of Series A (subject to adjustment) or such amount that would have been paid to the common stock holders on an if-converted basis. Common Stock and Warrants For the nine months ended December 31, 2020, the Company issued 1,979,387 shares of common stock from the exercise of options under Digital Turbine's Incentive Plans. The following table provides activity for warrants issued and outstanding during the nine months ended December 31, 2020: Number of Warrants Outstanding Weighted-Average Exercise Price Outstanding as of March 31, 2020 25,000 $ 2.04 Issued — — Exercised — — Cancelled — — Expired — — Outstanding as of December 31, 2020 25,000 $ 2.04 Restricted Stock Awards From time to time, the Company enters into restricted stock award (“RSAs”) agreements with certain employees, directors, and consultants. The RSAs have performance conditions, market conditions, time conditions, or a combination thereof. In some cases, once the stock vests, the individual is restricted from selling the shares of stock for a certain defined period, from three months to two years, depending on the terms of the RSA, except for Company Board members and the Chief Executive Officer, who are subject to the Company's Board Member Equity Ownership Policy, which supersedes any post-vesting lock-up in RSAs that are applicable to such persons. Service and Time Condition RSAs Awards of restricted stock are grants of restricted stock that are issued at no cost to the recipient. The cost of these awards is determined using the fair market value of the Company’s common stock on the date of the grant. Compensation expense for restricted stock awards with a service and time condition is recognized on a straight-line basis over the requisite service period. In July 2019, the Company issued 75,494 restricted shares to its Board of Directors for their next annual service period. The shares vest quarterly over one year. The fair value of the shares on the date of issuance was $421. In August 2020, the Company issued 45,110 restricted shares to its Board of Directors for their next annual service period. The shares vest quarterly over one year. The fair value of the shares on the date of issuance was $626. With respect to time condition RSAs, the Company expensed $157 and $419 during the three and nine months ended December 31, 2020, respectively; and $105 and $318 during the three and nine months ended December 31, 2019, respectively. The following is a summary of restricted stock awards and activities for all vesting conditions for the nine months ended December 31, 2020: Number of Shares Weighted-Average Grant Date Fair Value Unvested restricted stock outstanding as of March 31, 2020 37,746 $ 5.58 Granted 45,110 13.88 Vested (49,023) 7.49 Unvested restricted stock outstanding as of December 31, 2020 33,833 $ 13.88 All restricted shares, vested and unvested, cancellable and not cancelled, have been included in the outstanding shares as of December 31, 2020. At December 31, 2020, there was $365 of unrecognized stock-based compensation expense, net of estimated forfeitures, related to non-vested restricted stock awards expected to be recognized over a weighted-average period of approximately 0.58 years. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic net income per share is calculated by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is calculated by dividing net income by the weighted-average number of shares of common stock outstanding during the period and including the dilutive effects of employee stock-based awards outstanding during the period. The following table sets forth the computation of net income from continuing operations, net of taxes, per share of common stock (in thousands, except per share amounts): Three months ended December 31, Nine months ended December 31, 2020 2019 2020 2019 Income from continuing operations, net of taxes $ 14,515 $ 3,261 $ 24,828 $ 253 Weighted-average common shares outstanding, basic 89,003 85,876 88,140 83,869 Basic net income per common share $ 0.16 $ 0.04 $ 0.28 $ — Weighted-average common shares outstanding, diluted 96,976 92,472 95,563 89,759 Diluted net income per common share 0.15 0.04 0.26 — |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our provision for income taxes as a percentage of pre-tax earnings (“effective tax rate”) is based on a current estimate of the annual effective income tax rate, adjusted to reflect the impact of discrete items. In accordance with ASC 740, jurisdictions forecasting losses that are not benefited due to valuation allowances are not included in our forecasted effective tax rate. During the three and nine months ended December 31, 2020, a tax provision of $1,061 and $2,098 resulted in an effective tax rate of 6.8% and 7.8%, respectively. Differences in the tax provision and the statutory rate are primarily due to changes in the valuation allowance. During the three and nine months ended December 31, 2019, a tax provision of $41 and $6 resulted in an effective tax rate of 1.2%. and 2.3%, respectively. Differences in the tax provision and statutory rate are primarily due to changes in the valuation allowance. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingent Earn-Out Considerations The Acquisition includes contingent earn-out consideration as part of the purchase price under which the Company will make future payments to the seller upon the achievement of certain benchmarks. The fair value of the contingent earn-out consideration is estimated as of the balance sheet date at the present value of the expected contingent payments to be made using a Monte Carlo probability-weighted discounted cash flow model for probabilities of possible future payments. Future payments are driven by the continued performance of the the Acquisition through the end of the earn-out period ending February 28, 2021. The fair value estimates use unobservable inputs that reflect our own assumptions as to the ability of the acquired business to meet the targeted benchmarks and discount rates used in the calculations. The unobservable inputs are defined in FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” as Level 3 inputs discussed in detail in Note "Fair Value Measurements." At December 31, 2020, the estimated contingent earn-out was $10,000, as compared to $23,735 at March 31, 2020. The Company recorded cash payments against the estimated contingent earn-out liability of $13,073 and $29,154 for the three and nine months ended December 31, 2020, respectively. Furthermore, the Company recorded adjustments to increase the remaining estimated earn-out by $4,662 and $15,419 during the three and nine months ended December 31, 2020, respectively, resulting in a net earn-out balance of $10,000 as of the balance sheet date. The increase in the remaining estimated earn-out is reflected as other income / (expense) on the Consolidated Statements of Operations and Comprehensive Income / (Loss). The Company reviews the probabilities of possible future payments to the estimated fair value of any contingent earn-out consideration on a quarterly basis over the earn-out period. Actual results are compared to the estimates and probabilities of achievement used in forecasts. Should actual results of the acquired business increase or decrease as compared to the estimates and assumptions used, the estimated fair value of the contingent earn-out consideration liability will increase or decrease. Changes in the estimated fair value of the contingent earn-out consideration, as a factor of a change in inputs, would be reflected in the Company's results of operations in the period in which they are identified. The Company believes that the value of the earn-out, based on the evaluation of the performance, is materially accurate as of December 31, 2020. |
Geographic Information
Geographic Information | 9 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The following table sets forth geographic information on our net revenues for the three and nine months ended December 31, 2020 and 2019. Net revenues by geography are based on the billing addresses of our customers. Three months ended December 31, 2020 2019 (Unaudited) Net revenues United States and Canada $ 59,192 $ 22,486 Europe, Middle East, and Africa 21,168 9,205 Asia Pacific and China 7,047 3,731 Mexico, Central America, and South America 1,185 594 Consolidated net revenues $ 88,592 $ 36,016 Nine months ended December 31, 2020 2019 (Unaudited) Net revenues United States and Canada $ 144,550 $ 66,057 Europe, Middle East, and Africa 54,051 24,129 Asia Pacific and China 18,159 8,137 Mexico, Central America, and South America 1,737 1,041 Consolidated net revenues $ 218,497 $ 99,364 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event New Credit Facility On February 3, 2021, the Company entered into a Credit Agreement with Bank of America, N.A. (the “Bank”), which provides for a revolving line of credit of $100,000, with an accordion feature enabling the Company to increase the amount to up to $200,000, to be used for acquisitions, working capital, and general corporate purposes. Digital Turbine Media, Inc. (“DT Media”) and Digital Turbine USA, Inc. (“DT USA”) are additional co-borrowers under the Credit Agreement. The revolving line of credit matures on February 3, 2024. Amounts outstanding under the Credit Agreement accrue interest at an annual rate equal to LIBOR (or, if necessary, a broadly-adopted replacement index) plus an applicable margin which ranges from 1.50% to 2.25%, depending on the Company’s consolidated leverage ratio. The obligations under the Credit Agreement are secured by a grant of a security interest in substantially all of the assets of the Company and its subsidiaries. The Credit Agreement contains customary covenants, representations, and events of default, and also requires the Company to comply with a maximum consolidated leverage ratio and minimum fixed charge coverage ratio. The description of the Credit Agreement provided herein is qualified by reference to the Credit Agreement, which is attached to this Form 10-Q as Exhibit 10.1 and is incorporated by reference herein. The Credit Agreement contains representations and warranties by each of the parties to the Credit Agreement, which were made only for the purposes of the Credit Agreement and, in some cases, as of specified dates. The representations, warranties, and covenants in the Credit Agreement were made solely for the benefit of the parties to the Credit Agreement, are subject to limitations agreed upon by such parties (including being qualified by schedules), may have been made for the purposes of allocating contractual risk between the parties instead of establishing these matters as facts, and are subject to standards of materiality applicable to the parties that may differ from those applicable to others. Others should not rely on the representations, warranties, and covenants or any descriptions thereof as characterizations of the actual state of facts or condition of the Company or any of its subsidiaries or affiliates. Moreover, information concerning the subject matter of the representations, warranties, and covenants may change after the date of the Credit Agreement and such subsequent information may or may not be fully reflected in the Company’s public disclosures. Termination of Existing Credit Facility In connection with the Company entering into the Credit Agreement with the Bank as described above, on February 3, 2021, the Company and Western Alliance Bank terminated the Credit Agreement, dated February 28, 2020, by and among the Company, DT Media, DT USA, and Western Alliance Bank (and the amendments thereto), which was the previous term loan and revolving credit facility of the Company. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements have been prepared in accordance with US GAAP and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for annual financial statements. The financial statements, in the opinion of management, include all adjustments necessary for a fair statement of the results of operations, financial position and cash flows for each period presented. |
Interim Consolidated Financial Information | Interim Consolidated Financial Information The accompanying consolidated financial statements of Digital Turbine, Inc. and its subsidiaries should be read in conjunction with the consolidated financial statements and accompanying notes filed with the SEC in Digital Turbine, Inc.'s Annual Report on Form 10-K for the fiscal year ended March 31, 2020 (the "Annual Report"). The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying consolidated financial statements reflect all adjustments of a normal recurring nature considered necessary to fairly state the financial position of Digital Turbine, Inc. and its consolidated subsidiaries at December 31, 2020, the results of their operations and corresponding comprehensive income / (loss) for the three and nine months ended December 31, 2020 and 2019, and their cash flows for the nine months ended December 31, 2020 and 2019. The consolidated financial statements include the accounts of the Company and our wholly-owned subsidiaries. All material inter-company balances and transactions have been eliminated in consolidation. The results of operations for the interim period are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2021. |
Recently Issued Accounting Pronouncements and Accounting Pronouncements Adopted During the Period | Recently Issued Accounting Pronouncements Significant accounting policies and recent accounting pronouncements are described in the Notes of the consolidated financial statements, under the heading "Summary of Significant Accounting Policies," included in the Annual Report on Form 10-K for the fiscal year ended March 31, 2020. There have been no significant changes in or updates to the accounting policies since March 31, 2020. Only significant new accounting pronouncements, pertinent to the Company, issued and adopted subsequent to the issuance of our Annual Report are described below. Accounting pronouncements issued and adopted not described in either the Annual Report or in this quarterly report have been determined to either not apply or to have an immaterial impact on our business and related disclosures. Accounting Pronouncements Adopted During the Period In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2018-15, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2019. As such, the Company adopted this standard during the quarter ended June 30, 2020 on a prospective basis, and such adoption has not had a material impact on the Company's consolidated results of operations, financial condition, and cash flows in the current presented periods. In August 2018, the FASB issued ASU 2018-13: Fair Value Measurement (Topic 820). The amendments in this update modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, as a result of the FASB’s final deliberations of the financial reporting concepts pursuant to the March 4, 2014 issued FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, as they relate to fair value measurement disclosures. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2019. As such, the Company has adopted this standard during our quarter ended June 30, 2020, and it has not materially impacted our consolidated results of operations, financial condition and cash flows. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments". Financial Instruments—Credit Losses (Topic 326) amends guideline on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This guidance is effective for annual reporting periods, and interim periods within those annual periods, beginning after December 15, 2019. As such, the Company has adopted this standard during our quarter ended June 30, 2020, and it has not materially impacted our consolidated results of operations, financial condition and cash flows. |
Concentrations of Credit Risk and Significant Customers | Concentrations of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and accounts receivable. A significant portion of the Company’s cash is held at one major financial institution that the Company's management has assessed to be of high credit quality. The Company has not experienced any losses in such accounts. The Company mitigates its credit risk with respect to accounts receivable by performing credit evaluations and monitoring advertisers' and carriers' accounts receivable balances. The Company counts all advertisers and carriers within a single corporate structure as one customer, even in cases where multiple brands, branches, or divisions of an organization enter into separate contracts with the Company. As of December 31, 2020, one major customer represented approximately 12.7% of the Company’s net accounts receivable balance. As of March 31, 2020, two major customers represented 11.6% and 11.5% of the Company's net accounts receivable balance. With respect to customer revenue concentration, the Company defines a customer as an advertiser or a carrier that is a distinct source of revenue and is legally bound to pay for the services that the Company delivers on the advertiser’s or carrier's behalf. During the three and nine months ended December 31, 2020, no single customer represented 10.0% or greater of the Company's net revenues. During the three and nine months ended December 31, 2019, Verizon Communications Inc., primarily through its subsidiary Oath Inc., represented 14.4% and 17.7%, respectively, of net revenues. With respect to revenue partner concentration, the Company partners with mobile carriers and OEMs to deliver applications on our platform through the carrier network. During the three and nine months ended December 31, 2020, Verizon Wireless, a carrier partner, generated 16.5% and 18.6%, respectively; AT&T Inc., a carrier partner, including its Cricket subsidiary, generated 20.3% and 22.0%, respectively; T-Mobile US Inc., including Sprint and other subsidiaries, generated 30.6% and 27.0%, respectively; and America Movil Inc., a carrier partner, primarily through its subsidiary TracFone Wireless Inc., generated 10.4% and 10.4%, respectively, of our net revenues. During the three and nine months ended December 31, 2019, Verizon Wireless, a carrier partner, generated 37.5% and 40.3%, respectively; and AT&T Inc., a carrier partner, including its Cricket subsidiary, generated 29.8% and 30.9%, respectively, of our net revenues. There is no assurance that the Company will continue to receive significant revenues from any of these or other large customers. A reduction or delay in operating activity from any of the Company’s significant customers or partners, or a delay or default in payment by any significant customer, or a termination of agreements with significant customers, could materially harm the Company’s business and prospects. Because of the Company’s significant customer concentrations, its net sales and operating income could fluctuate significantly due to changes in political or economic conditions, or the loss of, reduction of business from, or less favorable terms with any of the Company's significant customers. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make certain estimates that impact the reported amounts in the consolidated financial statements and accompanying notes. These estimates are recurring in nature and relate to transactions occurring in the normal course of business. In the opinion of management, these are appropriate estimates for arrangements to be settled at a later date based on the facts and circumstances available at the time of filing. Actual results could differ materially from those estimates. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Financial Results of Discontinued Operations | The following table summarizes the financial results of our discontinued operations for all periods presented in the accompanying Consolidated Statements of Operations and Comprehensive Income / (Loss): Condensed Statements of Operations and Comprehensive Income / (Loss) For Discontinued Operations (in thousands, except per share amounts) (Unaudited) Three months ended December 31, Nine months ended December 31, 2020 2019 2020 2019 Net revenues $ — $ — $ — $ — Total cost of revenues — (102) — (102) Gross profit — 102 — 102 Product development — — — 62 General and administrative — 37 — 122 Loss from operations — 65 — (82) Interest and other income / (expense), net — — — (89) Loss from discontinued operations before income taxes — 65 — (171) Loss from discontinued operations, net of taxes — 65 — (171) Comprehensive loss $ — $ 65 $ — $ (171) Basic and diluted net loss per common share $ — $ — $ — $ — Weighted-average common shares outstanding, basic — 85,876 — 83,869 Weighted-average common shares outstanding, diluted — 92,472 — 89,759 The following table provides reconciling cash flow information for our discontinued operations: Nine months ended December 31, 2020 2019 (Unaudited) (Unaudited) Cash flows from operating activities Net loss from discontinued operations, net of taxes $ — $ (171) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization — 19 Change in allowance for doubtful accounts — (47) Loss on disposal of fixed assets — 104 (Increase) / decrease in assets: Accounts receivable — 405 Increase / (decrease) in liabilities: Accounts payable — (232) Accrued license fees and revenue share — (202) Accrued compensation — (56) Other current liabilities — 35 Cash used in operating activities — (145) Cash used in discontinued operations $ — $ (145) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | December 31, 2020 March 31, 2020 (Unaudited) Billed $ 28,672 $ 18,927 Unbilled 35,268 18,267 Allowance for doubtful accounts (4,913) (4,059) Accounts receivable, net $ 59,027 $ 33,135 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | December 31, 2020 March 31, 2020 (Unaudited) Computer-related equipment $ 2,141 $ 1,953 Developed software 15,989 9,696 Furniture and fixtures 689 681 Leasehold improvements 2,147 2,099 Property and equipment, gross 20,966 14,429 Accumulated depreciation (9,296) (6,246) Property and equipment, net $ 11,670 $ 8,183 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Maturities of Lease Liabilities | Schedule, by fiscal year, of maturities of lease liabilities as of: December 31, 2020 (Unaudited) Remainder of fiscal year 2021 $ 366 Fiscal year 2022 1,493 Fiscal year 2023 1,549 Fiscal year 2024 1,374 Fiscal year 2025 1,081 Thereafter 882 Total undiscounted cash flows 6,745 (Less imputed interest) (853) Present value of lease liabilities $ 5,892 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | The components of intangible assets at December 31, 2020 and March 31, 2020 were as follows: As of December 31, 2020 (Unaudited) Cost Accumulated Amortization Net Developed technology $ 7,926 $ (6,101) $ 1,825 Customer relationships 46,971 (6,925) 40,046 Total $ 54,897 $ (13,026) $ 41,871 As of March 31, 2020 Cost Accumulated Amortization Net Developed technology $ 7,926 $ (5,861) $ 2,065 Customer relationships 46,971 (5,154) 41,817 Total $ 54,897 $ (11,015) $ 43,882 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value | The following table summarizes the fair value of our financial assets and liabilities that are measured at fair value: Level 1 Level 2 Level 3 As of December 31, 2020 Financial Liabilities Estimated earn-out related to the purchase of Mobile Posse $ — — 10,000 $ 10,000 Total — — 10,000 10,000 |
Reconciliation of Convertible Note Embedded Derivative Liability Measured at Fair Value | The following table provides a reconciliation of the beginning and ending balances for the estimated contingent earn-out liability measured at fair value using significant unobservable inputs (Level 3): Level 3 Balance at March 31, 2020 $ 23,735 Change in estimated earn-out consideration 15,419 Payment of earn-out consideration (29,154) Balance at December 31, 2020 $ 10,000 |
Description of Stock Plans (Tab
Description of Stock Plans (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of RSU Activity | Number of Shares Weighted-Average Grant Date Fair Value Unvested restricted units outstanding as of March 31, 2020 293,525 $ 2.48 Granted 109,034 6.42 Vested (77,321) 2.49 Cancelled — — Unvested restricted units outstanding as of December 31, 2020 325,238 $ 3.91 |
Summary of Stock Option Activity | The following table summarizes stock option activity for Digital Turbine's Incentive Plans for the periods or as of the dates indicated: Number of Weighted Average Weighted Average Aggregate Intrinsic Options Outstanding, March 31, 2020 8,984,430 $ 2.75 7.17 $ 16,517 Granted 1,937,462 6.47 Forfeited / Cancelled (282,840) 5.58 Exercised (1,979,387) 2.99 Options Outstanding, December 31, 2020 8,659,665 3.44 7.11 460,038 Vested and expected to vest (net of estimated forfeitures) at December 31, 2020 (a) 7,784,550 3.14 6.90 415,871 Exercisable, December 31, 2020 4,870,289 $ 2.43 6.10 $ 263,634 (a) For options vested and expected to vest, options exercisable, and options outstanding, the aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between Digital Turbine's closing stock price on December 31, 2020 and the exercise price multiplied by the number of in-the-money options) that would have been received by the option holders, had the holders exercised their options on December 31, 2020. The intrinsic value changes based on changes in the price of the Company's common stock. |
Summary of Exercise Price | Information about options outstanding and exercisable at December 31, 2020 is as follows: Options Outstanding Options Exercisable Exercise Price Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Life (Years) Number of Shares Weighted-Average Exercise Price $0.00 - 5.00 6,008,608 $ 2.09 6.22 4,417,792 $ 2.08 $5.01 - 10.00 2,458,446 $ 5.67 9.10 446,846 $ 5.65 $10.01 - 15.00 126,272 $ 13.43 9.52 — $ — $15.01 - 20.00 31,681 $ 15.54 9.53 3,734 $ 15.54 $30.01 - and over 34,658 $ 30.03 9.83 1,917 $ 30.03 8,659,665 3.44 7.11 4,870,289 2.43 |
Schedule of Options Vested and Intrinsic Value of Options Exercised | Other information pertaining to stock options for Digital Turbine's Incentive Plans for the nine months ended December 31, 2020 and 2019, as stated in the table below, is as follows: December 31, 2020 2019 Total fair value of options vested $ 3,340 $ 2,028 Total intrinsic value of options exercised (a) $ 52,657 $ 10,364 (a) The total intrinsic value of options exercised represents the total pre-tax intrinsic value (the difference between the stock price at exercise and the exercise price multiplied by the number of options exercised) that was received by the option holders who exercised their options during the nine months ended December 31, 2020 and 2019. |
Schedule of Market-based Assumptions | The assumptions utilized in this model for options granted during the nine months ended December 31, 2020 are presented below. December 31, 2020 Risk-free interest rate 0.21% to 0.36% Expected life of the options 5.02 to 5.23 years Expected volatility 64% to 69% Expected dividend yield —% Expected forfeitures 28% to 29% |
Capital Stock Transactions (Tab
Capital Stock Transactions (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Warrants Issued and Outstanding | The following table provides activity for warrants issued and outstanding during the nine months ended December 31, 2020: Number of Warrants Outstanding Weighted-Average Exercise Price Outstanding as of March 31, 2020 25,000 $ 2.04 Issued — — Exercised — — Cancelled — — Expired — — Outstanding as of December 31, 2020 25,000 $ 2.04 |
Summary of Restricted Stock Awards and Activities | The following is a summary of restricted stock awards and activities for all vesting conditions for the nine months ended December 31, 2020: Number of Shares Weighted-Average Grant Date Fair Value Unvested restricted stock outstanding as of March 31, 2020 37,746 $ 5.58 Granted 45,110 13.88 Vested (49,023) 7.49 Unvested restricted stock outstanding as of December 31, 2020 33,833 $ 13.88 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share of Common Stock | The following table sets forth the computation of net income from continuing operations, net of taxes, per share of common stock (in thousands, except per share amounts): Three months ended December 31, Nine months ended December 31, 2020 2019 2020 2019 Income from continuing operations, net of taxes $ 14,515 $ 3,261 $ 24,828 $ 253 Weighted-average common shares outstanding, basic 89,003 85,876 88,140 83,869 Basic net income per common share $ 0.16 $ 0.04 $ 0.28 $ — Weighted-average common shares outstanding, diluted 96,976 92,472 95,563 89,759 Diluted net income per common share 0.15 0.04 0.26 — |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Net Revenue by Geography | The following table sets forth geographic information on our net revenues for the three and nine months ended December 31, 2020 and 2019. Net revenues by geography are based on the billing addresses of our customers. Three months ended December 31, 2020 2019 (Unaudited) Net revenues United States and Canada $ 59,192 $ 22,486 Europe, Middle East, and Africa 21,168 9,205 Asia Pacific and China 7,047 3,731 Mexico, Central America, and South America 1,185 594 Consolidated net revenues $ 88,592 $ 36,016 Nine months ended December 31, 2020 2019 (Unaudited) Net revenues United States and Canada $ 144,550 $ 66,057 Europe, Middle East, and Africa 54,051 24,129 Asia Pacific and China 18,159 8,137 Mexico, Central America, and South America 1,737 1,041 Consolidated net revenues $ 218,497 $ 99,364 |
Description of Business (Detail
Description of Business (Details) $ in Thousands, application_preload in Billions | Feb. 28, 2020USD ($) | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)segmentapplication_preloadpartnership | Dec. 31, 2019USD ($) | Mar. 31, 2020USD ($) |
Business Acquisition [Line Items] | ||||||
Number of Operators and OEMs | partnership | 40 | |||||
Number of application preloads | application_preload | 4.8 | |||||
Number of operating segments | segment | 1 | |||||
Number of reportable segments | segment | 1 | |||||
Change in estimated contingent consideration | $ 15,419 | $ 0 | ||||
Accrued earn-out | $ 10,000 | 10,000 | $ 23,735 | |||
Payment for contingent consideration liability | 13,073 | 29,154 | ||||
Goodwill, subsequent recognition of deferred tax asset | 736 | |||||
Mobile Posse | ||||||
Business Acquisition [Line Items] | ||||||
Aggregate purchase price, cash | $ 41,500 | $ 41,953 | ||||
Estimated contingent consideration | 23,735 | |||||
Additional purchase price consideration | $ 453 | |||||
Change in estimated contingent consideration | 4,662 | 15,419 | ||||
Accrued earn-out | $ 39,154 | 10,000 | 10,000 | |||
Payment for contingent consideration liability | 29,154 | |||||
Consideration transferred | 81,107 | |||||
Consideration transferred, paid amount | $ 71,107 | $ 71,107 |
Liquidity (Details)
Liquidity (Details) - USD ($) | Feb. 28, 2020 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | May 22, 2019 | Mar. 31, 2019 | May 23, 2017 |
Debt Instrument [Line Items] | |||||||
Cash | $ 43,659,000 | $ 21,659,000 | $ 33,879,000 | $ 11,059,000 | |||
New Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Remaining borrowing capacity | 5,000,000 | ||||||
Line of credit | New Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | $ 5,000,000 | ||||||
Outstanding principal | 0 | ||||||
Line of credit | Western Alliance Bank | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 20,000,000 | $ 5,000,000 | |||||
Term Loan | New Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Debt face amount | 20,000,000 | ||||||
Outstanding principal | $ 19,250,000 | ||||||
Term Loan | New Credit Agreement | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Principal payment | 250,000 | ||||||
Term Loan | New Credit Agreement | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Principal payment | $ 1,250,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | |
Accounts Receivable | Customer A | |||||
Concentration Risk [Line Items] | |||||
Concentrations of credit risk | 12.70% | 11.60% | |||
Accounts Receivable | Customer B | |||||
Concentration Risk [Line Items] | |||||
Concentrations of credit risk | 11.50% | ||||
Sales | Customer A | |||||
Concentration Risk [Line Items] | |||||
Concentrations of credit risk | 14.40% | 17.70% | |||
Sales | Carrier Partner A | |||||
Concentration Risk [Line Items] | |||||
Concentrations of credit risk | 16.50% | 37.50% | 18.60% | 40.30% | |
Sales | Carrier Partner B | |||||
Concentration Risk [Line Items] | |||||
Concentrations of credit risk | 20.30% | 29.80% | 22.00% | 30.90% | |
Sales | Carrier Partner C | |||||
Concentration Risk [Line Items] | |||||
Concentrations of credit risk | 30.60% | 27.00% | |||
Sales | Carrier Partner D | |||||
Concentration Risk [Line Items] | |||||
Concentrations of credit risk | 10.40% | 10.40% |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) | Jul. 01, 2018USD ($) | Jun. 01, 2018 | Apr. 29, 2018agreement | Mar. 31, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of disposition agreements | agreement | 2 | |||
Pay Seller | Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Estimated earn out | $ 0 | |||
Gain / (loss) on sale | $ 0 | |||
A&P Agreement | Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Period of continuing involvement after disposal | 3 years | |||
Goodwill net impact | $ 0 |
Discontinued Operations - State
Discontinued Operations - Statements of Operations and Comprehensive Income / (Loss) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss from discontinued operations before income taxes | $ 0 | $ 65 | $ 0 | $ (171) |
Loss from discontinued operations, net of taxes | 0 | 65 | 0 | (171) |
Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Total cost of revenues | 0 | (102) | 0 | (102) |
Gross profit | 0 | 102 | 0 | 102 |
Product development | 0 | 0 | 0 | 62 |
General and administrative | 0 | 37 | 0 | 122 |
Loss from operations | 0 | 65 | 0 | (82) |
Interest and other income / (expense), net | 0 | 0 | 0 | (89) |
Loss from discontinued operations before income taxes | 0 | 65 | 0 | (171) |
Loss from discontinued operations, net of taxes | 0 | 65 | 0 | (171) |
Comprehensive loss | $ 0 | $ 65 | $ 0 | $ (171) |
Basic and diluted net loss per common share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted-average common shares outstanding, basic | 0 | 85,876 | 0 | 83,869 |
Weighted-average common shares outstanding, diluted | 0 | 92,472 | 0 | 89,759 |
Discontinued Operations - Recon
Discontinued Operations - Reconciling Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | ||||
Net loss from discontinued operations, net of taxes | $ 0 | $ 65 | $ 0 | $ (171) |
Increase / (decrease) in liabilities: | ||||
Cash used in operating activities | 0 | (145) | ||
Discontinued Operations | ||||
Cash flows from operating activities | ||||
Net loss from discontinued operations, net of taxes | $ 0 | $ 65 | 0 | (171) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 0 | 19 | ||
Change in allowance for doubtful accounts | 0 | (47) | ||
Loss on disposal of fixed assets | 0 | 104 | ||
(Increase) / decrease in assets: | ||||
Accounts receivable | 0 | 405 | ||
Increase / (decrease) in liabilities: | ||||
Accounts payable | 0 | (232) | ||
Accrued license fees and revenue share | 0 | (202) | ||
Accrued compensation | 0 | (56) | ||
Other current liabilities | 0 | 35 | ||
Cash used in operating activities | 0 | (145) | ||
Cash used in discontinued operations | $ 0 | $ (145) |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | |
Receivables [Abstract] | |||||
Billed | $ 28,672 | $ 28,672 | $ 18,927 | ||
Unbilled | 35,268 | 35,268 | 18,267 | ||
Allowance for doubtful accounts | (4,913) | (4,913) | (4,059) | ||
Accounts receivable, net | 59,027 | 59,027 | $ 33,135 | ||
Bad debt expense | $ 187 | $ 56 | $ 415 | $ 184 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 20,966 | $ 14,429 |
Accumulated depreciation | (9,296) | (6,246) |
Property and equipment, net | 11,670 | 8,183 |
Computer-related equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 2,141 | 1,953 |
Developed software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 15,989 | 9,696 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 689 | 681 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,147 | $ 2,099 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | $ 1,151 | $ 540 | $ 3,052 | $ 1,484 |
Internal use assets | General and administrative | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | 403 | 140 | 1,081 | 462 |
Developed software | Other direct costs of revenue | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation expense | $ 748 | $ 400 | $ 1,971 | $ 1,022 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 9 Months Ended | |
Dec. 31, 2020USD ($)renewal_option | Mar. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Number of renewal options, minimum | renewal_option | 1 | |
Operating lease liability, current, statement of financial position location | us-gaap:OtherLiabilitiesCurrent | |
Operating lease liability, noncurrent, statement of financial position location | us-gaap:OtherLiabilitiesNoncurrent | |
Right-of-use assets | $ | $ 3,807 | $ 4,237 |
Weighted-average remaining lease term | 4 years 7 months 2 days | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Weighted average discount rate | 5.50% | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Weighted average discount rate | 6.75% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
Remainder of fiscal year 2021 | $ 366 |
Fiscal year 2022 | 1,493 |
Fiscal year 2023 | 1,549 |
Fiscal year 2024 | 1,374 |
Fiscal year 2025 | 1,081 |
Thereafter | 882 |
Total undiscounted cash flows | 6,745 |
(Less imputed interest) | (853) |
Present value of lease liabilities | $ 5,892 |
Intangible Assets - Components
Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Cost | $ 54,897 | $ 54,897 |
Accumulated Amortization | (13,026) | (11,015) |
Net | 41,871 | 43,882 |
Developed technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 7,926 | 7,926 |
Accumulated Amortization | (6,101) | (5,861) |
Net | 1,825 | 2,065 |
Customer relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 46,971 | 46,971 |
Accumulated Amortization | (6,925) | (5,154) |
Net | $ 40,046 | $ 41,817 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 670,000 | $ 0 | $ 2,011,000 | $ 0 |
Future amortization expense, year one | 2,681,000 | 2,681,000 | ||
Future amortization expense, year two | 2,681,000 | 2,681,000 | ||
Future amortization expense, year three | 2,681,000 | 2,681,000 | ||
Future amortization expense, year four | 2,681,000 | 2,681,000 | ||
Future amortization expense, year five | 2,681,000 | 2,681,000 | ||
Future amortization expense, thereafter | $ 28,465,000 | $ 28,465,000 |
Debt (Details)
Debt (Details) - USD ($) | Feb. 03, 2021 | Feb. 28, 2020 | May 22, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | May 23, 2017 |
Debt Instrument [Line Items] | ||||||||
Interest income / (expense), net | $ (266,000) | $ 59,000 | $ (859,000) | $ 118,000 | ||||
New Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit agreement, interest rate floor | 1.75% | |||||||
Remaining borrowing capacity | 5,000,000 | 5,000,000 | ||||||
New Credit Agreement | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit agreement, basis spread on variable rate | 3.75% | |||||||
Line of credit | Revolving credit facility | Subsequent event | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 100,000,000 | |||||||
Line of credit | Minimum | LIBOR | Revolving credit facility | Subsequent event | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit agreement, basis spread on variable rate | 1.50% | |||||||
Line of credit | Maximum | LIBOR | Revolving credit facility | Subsequent event | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit agreement, basis spread on variable rate | 2.25% | |||||||
Line of credit | New Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt face amount | $ 5,000,000 | |||||||
Outstanding principal | 0 | 0 | ||||||
Line of credit | Western Alliance Bank | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 20,000,000 | $ 5,000,000 | ||||||
Credit agreement, basis spread on variable rate | 0.50% | |||||||
Credit agreement, interest rate floor | 6.00% | |||||||
Term Loan | New Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt face amount | 20,000,000 | |||||||
Outstanding principal | $ 19,250,000 | $ 19,250,000 | ||||||
Term Loan | New Credit Agreement | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal payment | 250,000 | |||||||
Term Loan | New Credit Agreement | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal payment | $ 1,250,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Mar. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated earn-out related to the purchase of Mobile Posse | $ 10,000 | $ 23,735 |
Total | 10,000 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated earn-out related to the purchase of Mobile Posse | 0 | |
Total | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated earn-out related to the purchase of Mobile Posse | 0 | |
Total | 0 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Estimated earn-out related to the purchase of Mobile Posse | 10,000 | |
Total | $ 10,000 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Convertible Note Embedded Derivative Liability Measured at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Change in estimated earn-out consideration | $ 4,662 | $ 0 | $ 15,419 | $ 0 |
Level 3 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning Balance | 23,735 | |||
Change in estimated earn-out consideration | 15,419 | |||
Payment of earn-out consideration | (29,154) | |||
Ending Balance | $ 10,000 | $ 10,000 |
Description of Stock Plans - Na
Description of Stock Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 15, 2020 | May 31, 2020 | May 31, 2019 | Jun. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Sep. 30, 2018 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Allocated stock compensation expense | $ 160 | $ 915 | $ 4,126 | $ 1,597 | ||||||
Unrecognized stock base compensation expense | $ 6,495 | $ 3,518 | $ 6,495 | $ 3,518 | ||||||
Weighted average grant-date fair value (in dollars per share) | $ 6.47 | $ 4.34 | $ 6.47 | $ 4.34 | ||||||
Unvested stock options, weighted average period | 2 years 1 month 13 days | 2 years 1 month 28 days | ||||||||
ASU Adjustment | ASU 2018-07 | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Allocated stock compensation expense | $ (1,397) | |||||||||
Maximum | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Option plan, term | 10 years | |||||||||
Restricted Stock Units (RSUs) | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
forfeited/cancelled (in shares) | 0 | |||||||||
Awarded (in shares) | 109,034 | 109,416 | 232,558 | 109,034 | ||||||
Vesting period | 3 years | 3 years | 3 years | |||||||
Fair value of shares on date of issuance | $ 700 | $ 413 | $ 400 | |||||||
Allocated stock compensation expense | 126 | $ 68 | $ 339 | $ 152 | ||||||
Unrecognized stock base compensation expense | $ 815 | $ 815 | ||||||||
Unrecognized stock base compensation expense, period of recognition | 2 years 5 months 1 day | |||||||||
Equity Option | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Granted (in shares) | 1,937,462 | 1,738,750 | ||||||||
2020 Plan | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Reserved for future issuance (in shares) | 12,000,000 | 12,000,000 | 12,000,000 | |||||||
Plan term | 10 years | |||||||||
Available for issuance (in shares) | 11,965,342 | 11,965,342 | ||||||||
Granted (in shares) | 34,658 | |||||||||
forfeited/cancelled (in shares) | 0 | |||||||||
2020 Plan | Restricted Stock Units (RSUs) | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Awarded (in shares) | 0 | |||||||||
2011 Plan | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Reserved for future issuance (in shares) | 20,000,000 | 20,000,000 | ||||||||
Available for issuance (in shares) | 4,452,064 | 0 | 0 | 6,366,088 | ||||||
Incentive Plans | Minimum | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Option plan, term | 3 years | |||||||||
Incentive Plans | Maximum | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Option plan, term | 4 years |
Description of Stock Plans - Su
Description of Stock Plans - Summary of RSU Activity (Details) - Restricted Stock Units (RSUs) - $ / shares | 1 Months Ended | 9 Months Ended | ||
May 31, 2020 | May 31, 2019 | Jun. 30, 2018 | Dec. 31, 2020 | |
Number of Shares | ||||
Unvested, beginning balance (in shares) | 293,525 | |||
Granted (in shares) | 109,034 | 109,416 | 232,558 | 109,034 |
Vested (in shares) | (77,321) | |||
Cancelled (in shares) | 0 | |||
Unvested, ending balance (in shares) | 325,238 | |||
Weighted-Average Grant Date Fair Value | ||||
Unvested weighted average grant date fair value, beginning balance (in dollars per share) | $ 2.48 | |||
Granted (in dollars per share) | 6.42 | |||
Vested (in dollars per share) | 2.49 | |||
Cancelled (in dollars per share) | 0 | |||
Unvested weighted average grant date fair value, ending balance (in dollars per share) | $ 3.91 |
Description of Stock Plans - _2
Description of Stock Plans - Summary of Stock Option Activity (Details) - Stock Option - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | |
Number of Shares | |||
Options outstanding, beginning (in shares) | 8,984,430 | ||
Granted (in shares) | 1,937,462 | 1,738,750 | |
Forfeited / Cancelled (in shares) | (282,840) | ||
Exercised (in shares) | (1,979,387) | ||
Options outstanding, ending (in shares) | 8,659,665 | 8,984,430 | |
Vested and expected to vest (net of estimated forfeitures) (in shares) | 7,784,550 | ||
Exercisable (in shares) | 4,870,289 | ||
Weighted Average Exercise Price (per share) | |||
Options outstanding, beginning (in dollars per share) | $ 2.75 | ||
Granted (in dollars per share) | 6.47 | ||
Forfeited/Cancelled (in dollars per share) | 5.58 | ||
Exercised (in dollars per share) | 2.99 | ||
Options outstanding, ending (in dollars per share) | 3.44 | $ 2.75 | |
Vested and expected to vest (net of estimated forfeitures) (in dollars per share) | 3.14 | ||
Exercisable (in dollars per share) | $ 2.43 | ||
Weighted Average Remaining Contractual Life (in years) | |||
Outstanding | 7 years 1 month 9 days | 7 years 2 months 1 day | |
Vested and expected to vest (net of estimated forfeitures) | 6 years 10 months 24 days | ||
Exercisable | 6 years 1 month 6 days | ||
Aggregate Intrinsic Value (in thousands) | |||
Outstanding | $ 460,038 | $ 16,517 | |
Vested and expected to vest (net of estimated forfeitures) | 415,871 | ||
Exercisable | $ 263,634 |
Description of Stock Plans - _3
Description of Stock Plans - Summary of Exercise Price (Details) | 9 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Employee Stock Ownership Plan E S O P Disclosures [Line Items] | |
Options outstanding (in shares) | shares | 8,659,665 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 3.44 |
Options outstanding, weighted average remaining life | 7 years 1 month 9 days |
Options exercisable (in shares) | shares | 4,870,289 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 2.43 |
$0.00 - 5.00 | |
Employee Stock Ownership Plan E S O P Disclosures [Line Items] | |
Range of exercise price, lower limit (in dollars per share) | 0 |
Range of exercise price, upper limit (in dollars per share) | $ 5 |
Options outstanding (in shares) | shares | 6,008,608 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 2.09 |
Options outstanding, weighted average remaining life | 6 years 2 months 19 days |
Options exercisable (in shares) | shares | 4,417,792 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 2.08 |
$5.01 - 10.00 | |
Employee Stock Ownership Plan E S O P Disclosures [Line Items] | |
Range of exercise price, lower limit (in dollars per share) | 5.01 |
Range of exercise price, upper limit (in dollars per share) | $ 10 |
Options outstanding (in shares) | shares | 2,458,446 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 5.67 |
Options outstanding, weighted average remaining life | 9 years 1 month 6 days |
Options exercisable (in shares) | shares | 446,846 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 5.65 |
$10.01 - 15.00 | |
Employee Stock Ownership Plan E S O P Disclosures [Line Items] | |
Range of exercise price, lower limit (in dollars per share) | 10.01 |
Range of exercise price, upper limit (in dollars per share) | $ 15 |
Options outstanding (in shares) | shares | 126,272 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 13.43 |
Options outstanding, weighted average remaining life | 9 years 6 months 7 days |
Options exercisable (in shares) | shares | 0 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 0 |
$15.01 - 20.00 | |
Employee Stock Ownership Plan E S O P Disclosures [Line Items] | |
Range of exercise price, lower limit (in dollars per share) | 15.01 |
Range of exercise price, upper limit (in dollars per share) | $ 20 |
Options outstanding (in shares) | shares | 31,681 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 15.54 |
Options outstanding, weighted average remaining life | 9 years 6 months 10 days |
Options exercisable (in shares) | shares | 3,734 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 15.54 |
$30.01 - and over | |
Employee Stock Ownership Plan E S O P Disclosures [Line Items] | |
Range of exercise price, lower limit (in dollars per share) | $ 30.01 |
Options outstanding (in shares) | shares | 34,658 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 30.03 |
Options outstanding, weighted average remaining life | 9 years 9 months 29 days |
Options exercisable (in shares) | shares | 1,917 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 30.03 |
Description of Stock Plans - Sc
Description of Stock Plans - Schedule of Options Vested and Intrinsic Value of Options Exercised (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Total fair value of options vested | $ 3,340 | $ 2,028 |
Total intrinsic value of options exercised | $ 52,657 | $ 10,364 |
Description of Stock Plans - _4
Description of Stock Plans - Schedule of Market-based Assumptions (Details) | 9 Months Ended |
Dec. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |
Expected dividend yield | 0.00% |
Minimum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |
Risk-free interest rate | 0.21% |
Expected life of the options | 5 years 7 days |
Expected volatility | 64.00% |
Expected forfeitures | 28.00% |
Maximum | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |
Risk-free interest rate | 0.36% |
Expected life of the options | 5 years 2 months 23 days |
Expected volatility | 69.00% |
Expected forfeitures | 29.00% |
Capital Stock Transactions - Na
Capital Stock Transactions - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Aug. 31, 2020 | Jul. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | |
Class Of Stock [Line Items] | |||||||
Series A convertible preferred stock, shares authorized | 2,000,000 | 2,000,000 | 2,000,000 | ||||
Series A convertible preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Series A convertible preferred stock, shares issued | 100,000 | 100,000 | 100,000 | ||||
Unrecognized stock base compensation expense | $ 6,495 | $ 3,518 | $ 6,495 | $ 3,518 | |||
Unvested stock options, weighted average period | 2 years 1 month 13 days | 2 years 1 month 28 days | |||||
Equity Option | |||||||
Class Of Stock [Line Items] | |||||||
Options exercised (in shares) | 1,979,387 | ||||||
Restricted Stock | |||||||
Class Of Stock [Line Items] | |||||||
Vesting period | 1 year | 1 year | |||||
Awarded (in shares) | 45,110 | 75,494 | |||||
Fair value of shares issued | $ 626 | $ 421 | |||||
Restricted Stock | Minimum | |||||||
Class Of Stock [Line Items] | |||||||
Vesting period | 3 months | ||||||
Restricted Stock | Maximum | |||||||
Class Of Stock [Line Items] | |||||||
Vesting period | 2 years | ||||||
Time Condition RSAs | |||||||
Class Of Stock [Line Items] | |||||||
Compensation expense | 157 | $ 105 | $ 419 | $ 318 | |||
Non Vested Restricted Stock | |||||||
Class Of Stock [Line Items] | |||||||
Awarded (in shares) | 45,110 | ||||||
Unrecognized stock base compensation expense | $ 365 | $ 365 | |||||
Unvested stock options, weighted average period | 6 months 29 days | ||||||
Convertible Preferred Stock | |||||||
Class Of Stock [Line Items] | |||||||
Series A convertible preferred stock, shares authorized | 2,000,000 | 2,000,000 | |||||
Series A convertible preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |||||
Series A convertible preferred stock, shares issued | 100,000 | 100,000 | |||||
Aggregate shares upon conversion (in shares) | 20,000 | ||||||
Liquidation preference (in dollars per share) | $ 10 | $ 10 |
Capital Stock Transactions - Sc
Capital Stock Transactions - Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - Warrant liability | 9 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Number of Warrants Outstanding | |
Beginning (in shares) | shares | 25,000 |
Issued (in shares) | shares | 0 |
Exercised (in shares) | shares | 0 |
Cancelled (in shares) | shares | 0 |
Expired (in shares) | shares | 0 |
Ending (in shares) | shares | 25,000 |
Weighted-Average Exercise Price | |
Beginning (in dollars per share) | $ / shares | $ 2.04 |
Issued (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 0 |
Cancelled (in dollars per share) | $ / shares | 0 |
Expired (in dollars per share) | $ / shares | 0 |
Ending (in dollars per share) | $ / shares | $ 2.04 |
Capital Stock Transactions - Su
Capital Stock Transactions - Summary of Non-Vested Restricted Stock Awards and Activities (Details) - Non Vested Restricted Stock | 9 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Number of Shares | |
Unvested, beginning balance (in shares) | shares | 37,746 |
Granted (in shares) | shares | 45,110 |
Vested (in shares) | shares | (49,023) |
Unvested, ending balance (in shares) | shares | 33,833 |
Weighted-Average Grant Date Fair Value | |
Unvested weighted average grant date fair value, beginning balance (in dollars per share) | $ / shares | $ 5.58 |
Granted (in dollars per share) | $ / shares | 13.88 |
Vested (in dollars per share) | $ / shares | 7.49 |
Unvested weighted average grant date fair value, ending balance (in dollars per share) | $ / shares | $ 13.88 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||||
Income from continuing operations, net of taxes | $ 14,515 | $ 3,261 | $ 24,828 | $ 253 |
Weighted-average common shares outstanding, basic | 89,003 | 85,876 | 88,140 | 83,869 |
Basic net income per common share (in dollars per share) | $ 0.16 | $ 0.04 | $ 0.28 | $ 0 |
Weighted-average common shares outstanding, diluted | 96,976 | 92,472 | 95,563 | 89,759 |
Diluted net income per common share (in dollars per share) | $ 0.15 | $ 0.04 | $ 0.26 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 1,061 | $ 41 | $ 2,098 | $ 6 |
Effective tax rate | 6.80% | 1.20% | 7.80% | 2.30% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Feb. 28, 2020 | |
Business Acquisition [Line Items] | |||||
Accrued earn-out | $ 10,000 | $ 10,000 | $ 23,735 | ||
Payment for contingent consideration liability | 13,073 | 29,154 | |||
Change in estimated contingent consideration | 15,419 | $ 0 | |||
Mobile Posse | |||||
Business Acquisition [Line Items] | |||||
Accrued earn-out | 10,000 | 10,000 | $ 39,154 | ||
Payment for contingent consideration liability | 29,154 | ||||
Change in estimated contingent consideration | $ 4,662 | $ 15,419 |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Entity Wide Revenue Major Customer [Line Items] | ||||
Net revenues | $ 88,592 | $ 36,016 | $ 218,497 | $ 99,364 |
United States and Canada | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Net revenues | 59,192 | 22,486 | 144,550 | 66,057 |
Europe, Middle East, and Africa | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Net revenues | 21,168 | 9,205 | 54,051 | 24,129 |
Asia Pacific and China | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Net revenues | 7,047 | 3,731 | 18,159 | 8,137 |
Mexico, Central America, and South America | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Net revenues | $ 1,185 | $ 594 | $ 1,737 | $ 1,041 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent event - Line of credit - Revolving credit facility | Feb. 03, 2021USD ($) |
Loss Contingencies [Line Items] | |
Maximum borrowing capacity | $ 100,000,000 |
Maximum borrowing capacity, including accordion feature | $ 200,000,000 |
LIBOR | Minimum | |
Loss Contingencies [Line Items] | |
Credit agreement, basis spread on variable rate | 1.50% |
LIBOR | Maximum | |
Loss Contingencies [Line Items] | |
Credit agreement, basis spread on variable rate | 2.25% |