Zedge Announces Fourth Quarter and Full Year Fiscal 2024 Results
Zedge reported Q4 fiscal 2024 results with 14.3% revenue growth to $7.6 million. Key highlights include 31% growth in Marketplace subscription revenue and 56% increase in Premium Gross Transaction Value. Full-year revenue grew 10.5% to $30.1 million. The company reported a GAAP operating loss of $11.8 million for FY2024, including $12.0 million in non-cash write-downs. Cash flow from operations increased 85% to $5.9 million. The company's stock gained 71% during fiscal 2024, leading to inclusion in the Russell Microcap Index. For FY2025, Zedge plans to focus on AI integration, product innovation, and user conversion from consumers to creators.
Zedge ha riportato i risultati del quarto trimestre dell'anno fiscale 2024 con un aumento del fatturato del 14,3% che ha raggiunto i 7,6 milioni di dollari. I punti salienti includono un aumento del 31% nei ricavi da abbonamento al Marketplace e un incremento del 56% nel Valore Totale delle Transazioni Premium. Il fatturato annuale è cresciuto del 10,5% raggiungendo i 30,1 milioni di dollari. L'azienda ha riportato una perdita operativa GAAP di 11,8 milioni di dollari per l'anno fiscale 2024, inclusi 12,0 milioni di dollari in accantonamenti non monetari. Il flusso di cassa dalle operazioni è aumentato dell'85%, raggiungendo i 5,9 milioni di dollari. Il valore delle azioni della società è aumentato del 71% durante l'anno fiscale 2024, portando all'inclusione nell'indice Russell Microcap. Per l'anno fiscale 2025, Zedge prevede di concentrarsi sull'integrazione dell'IA, sull'innovazione del prodotto e sulla conversione degli utenti da consumatori a creatori.
Zedge reportó los resultados del cuarto trimestre del año fiscal 2024 con un crecimiento de ingresos del 14.3% alcanzando los 7.6 millones de dólares. Los puntos destacados incluyen un crecimiento del 31% en los ingresos por suscripción del Marketplace y un aumento del 56% en el Valor Bruto de las Transacciones Premium. Los ingresos anuales crecieron un 10.5% alcanzando los 30.1 millones de dólares. La compañía reportó una pérdida operativa GAAP de 11.8 millones de dólares para el FY2024, incluyendo 12.0 millones de dólares en bajas no monetarias. El flujo de efectivo de las operaciones aumentó un 85% a 5.9 millones de dólares. Las acciones de la compañía ganaron un 71% durante el año fiscal 2024, lo que llevó a su inclusión en el índice Russell Microcap. Para el año fiscal 2025, Zedge planea enfocarse en la integración de IA, la innovación de productos y la conversión de usuarios de consumidores a creadores.
Zedge는 2024 회계연도 4분기 결과를 보고하며 14.3%의 매출 성장을 기록하여 760만 달러에 도달했다고 발표했습니다. 주요 하이라이트로는 마켓플레이스 구독 수익의 31% 성장과 프리미엄 총 거래 가치의 56% 증가가 있습니다. 전체 연도 매출은 10.5% 증가하여 3,010만 달러에 달했습니다. 회사는 FY2024에 대해 GAAP 운영 손실을 1,180만 달러로 보고했으며, 이에는 비현금 자산 손실 1,200만 달러가 포함됩니다. 운영으로 인한 현금 흐름은 85% 증가하여 590만 달러에 이르렀습니다. 2024 회계연도 동안 회사의 주가는 71% 상승하여 러셀 마이크로캡 지수에 포함되었습니다. FY2025를 위해 Zedge는 AI 통합, 제품 혁신 및 소비자에서 제작자로의 사용자 전환에 중점을 두고 계획하고 있습니다.
Zedge a publié les résultats du quatrième trimestre de l'exercice 2024, affichant une croissance de chiffre d'affaires de 14,3% pour atteindre 7,6 millions de dollars. Les points clés incluent une croissance de 31% des revenus d'abonnement au Marketplace et une augmentation de 56% de la Valeur Totale des Transactions Premium. Les revenus annuels ont augmenté de 10,5% pour atteindre 30,1 millions de dollars. L'entreprise a rapporté une perte d'exploitation GAAP de 11,8 millions de dollars pour l'exercice 2024, avec des amortissements non monétaires de 12,0 millions de dollars. Le flux de trésorerie provenant des opérations a augmenté de 85% pour atteindre 5,9 millions de dollars. L'action de l'entreprise a gagné 71% au cours de l'exercice 2024, entraînant son inclusion dans l'indice Russell Microcap. Pour l'exercice 2025, Zedge prévoit de se concentrer sur l'intégration de l'IA, l'innovation produit et la conversion des utilisateurs de consommateurs en créateurs.
Zedge hat die Ergebnisse des vierten Quartals des Geschäftsjahres 2024 mit einem Umsatzwachstum von 14,3% auf 7,6 Millionen US-Dollar veröffentlicht. Zu den wesentlichen Punkten gehören ein Wachstum von 31% bei den Abo-Umsätzen des Marktplatzes und eine Steigerung von 56% beim Bruttotransaktionswert von Premium-Angeboten. Der Gesamtjahresumsatz stieg um 10,5% auf 30,1 Millionen US-Dollar. Das Unternehmen meldete einen GAAP-Betriebsverlust von 11,8 Millionen US-Dollar für das Geschäftsjahr 2024, einschließlich 12,0 Millionen US-Dollar an nicht zahlungswirksamen Abschreibungen. Der Cashflow aus dem operativen Geschäft stieg um 85% auf 5,9 Millionen US-Dollar. Der Aktienkurs des Unternehmens stieg im Geschäftsjahr 2024 um 71%, was zur Aufnahme in den Russell Microcap Index führte. Für das Geschäftsjahr 2025 plant Zedge, sich auf die Integration von KI, Produktinnovation und die Umwandlung von Verbrauchern in Schöpfer zu konzentrieren.
- Q4 revenue increased 14.3% to $7.6 million
- Marketplace subscription revenue grew 31%
- Premium Gross Transaction Value increased 55.7% to $0.6 million
- Full-year revenue grew 10.5% to $30.1 million
- Cash flow from operations increased 85% to $5.9 million
- Stock price gained 71% during fiscal 2024
- GAAP operating loss increased to $11.8 million from $6.9 million
- Digital goods and services revenue declined 25.2%
- Monthly Active Users (MAU) decreased 15.5%
- Adjusted EBITDA declined 17.4% to $4.7 million
- Well-developed markets MAU decreased 19.1%
Insights
The Q4 and FY2024 results show mixed performance. Revenue grew 14.3% to
Key positives include strong cash flow from operations, up
The strategic focus on AI integration and creator economy transformation presents growth opportunities but requires careful execution given the competitive landscape. The balance sheet remains solid with no debt and increasing cash reserves.
The company's technological pivot is noteworthy, particularly the expansion of pAInt 2.0 and planned AI audio capabilities. The platform evolution from content consumption to creator-focused features represents a strategic shift aligned with broader industry trends. The centralized development approach should accelerate innovation and product iteration.
However, the
Fourth quarter total revenue growth of
Fourth quarter Zedge Marketplace subscription revenue grew
Fourth quarter Zedge Marketplace ARPMAU1 increased
NEW YORK, NY / ACCESSWIRE / October 29, 2024 / Zedge, Inc. (NYSE AMERICAN:ZDGE), a leader in digital marketplaces and interactive games that provides content, enables creativity, empowers self-expression and facilitates community, today announced results for its fourth quarter and full year fiscal 2024, ended July 31, 2024.
Jonathan Reich, Zedge's CEO, commented, "We concluded the year with strong momentum, achieving
"In fiscal 2024, we drove double-digit revenue growth and strong cash flow from operations, even while repositioning GuruShots for success. In addition to our relentlessly optimizing our ad stack, our focus on innovation by developing, enhancing and launching new features and embracing Gen AI across our core products and operations, is yielding positive results, as demonstrated by the growth in subscription revenue and the increased use of pAInt. Taken together these actions helped us close the year with a more than
| Fourth Quarter Select Financial Metrics: FY24 versus FY23* |
| ||||||||||||||||||||||
(in $M except for EPS) |
| Q4 '24 |
|
| Q4 '23 |
|
| Change |
|
| FY24 YTD |
|
| FY23 YTD |
|
| Change |
| ||||||
Total Revenue |
| $ | 7.6 |
|
| $ | 6.6 |
|
|
| 14.3 | % |
| $ | 30.1 |
|
| $ | 27.2 |
|
|
| 10.5 | % |
Advertising Revenue |
| $ | 5.2 |
|
| $ | 4.6 |
|
|
| 12.6 | % |
| $ | 21.0 |
|
| $ | 18.3 |
|
|
| 15.1 | % |
Digital goods and services |
| $ | 0.7 |
|
| $ | 1.0 |
|
|
| -24.2 | % |
| $ | 3.5 |
|
| $ | 4.6 |
|
|
| -25.2 | % |
Subscription Revenue |
| $ | 1.2 |
|
| $ | 0.9 |
|
|
| 30.7 | % |
| $ | 4.3 |
|
| $ | 3.5 |
|
|
| 24.7 | % |
Other Revenue |
| $ | 0.5 |
|
| $ | 0.2 |
|
|
| 185.2 | % |
| $ | 1.2 |
|
| $ | 0.8 |
|
|
| 47.3 | % |
GAAP Operating Income (Loss) |
| $ | (0.1 | ) |
| $ | 0.2 |
|
|
| -126.4 | % |
| $ | (11.8 | ) |
| $ | (6.9 | ) |
| nm |
| |
Operating Margin |
|
| -0.9 | % |
|
| 3.7 | % |
|
|
|
|
|
| -39.2 | % |
|
| -25.4 | % |
|
|
|
|
GAAP Net Income (Loss) |
| $ | (0.0 | ) |
| $ | 0.2 |
|
|
| -124.8 | % |
| $ | (9.2 | ) |
| $ | (6.1 | ) |
| nm |
| |
GAAP Diluted Earnings (Loss) Per Share |
| $ | (0.00 | ) |
| $ | 0.01 |
|
|
| -100.0 | % |
| $ | (0.65 | ) |
| $ | (0.44 | ) |
| nm |
| |
Non-GAAP Net Income2 |
| $ | 0.3 |
|
| $ | 0.6 |
|
|
| -45.3 | % |
| $ | 1.8 |
|
| $ | 1.9 |
|
|
| -4.9 | % |
Non- GAAP Diluted Earnings Per Share2 |
| $ | 0.02 |
|
| $ | 0.04 |
|
|
| -47.5 | % |
| $ | 0.13 |
|
| $ | 0.13 |
|
|
| -4.7 | % |
Adjusted EBITDA2 |
| $ | 0.8 |
|
| $ | 1.6 |
|
|
| -52.0 | % |
| $ | 4.7 |
|
| $ | 5.7 |
|
|
| -17.4 | % |
Cash Flow from Operations |
| $ | 0.7 |
|
| $ | 0.4 |
|
|
| 65.9 | % |
| $ | 5.9 |
|
| $ | 3.2 |
|
|
| 85.0 | % |
nm = not measurable/meaningful |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
*numbers may not add due to rounding |
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|
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Fiscal 2025 Outlook
Reich continued, "In FY'25, we're building on the solid foundation laid in FY'24 by investing in growth and scaling across all business areas. A key focus at the Company level is the continued infusion of generative AI throughout our product portfolio enhancing the user experience with innovative technology and features. Our recent introduction of pAInt 2.0 is a great example. In September, we expanded pAInt's capabilities beyond text-to-image wallpaper creation along with filters, photo editing, avatar and/or sticker creation and rendering output in any size - not phone wallpapers alone. These capabilities make our offering relevant to a wider target audience.
"Our primary goal for the Zedge Marketplace this year is to convert our users from consumers of content into creators. This transformation is critical in helping us increase our penetration as a critical platform in the Creator Economy. Looking forward to what's next, we're already exploiting the recent introduction of pAInt 2.0 and are hard at work on introducing AI audio capabilities in the next several months. Audio is an exciting advancement that we believe can drive more users to our platform and create greater engagement from existing users.
"However, product enhancements and new feature releases are only part of the story. Over the past year, we built a world-class marketing team that has successfully acquired users with attractive ROAS profiles, particularly in well-developed economies, while also contributing to our hockey stick-like growth on the iOS platform in FY'24. This team is a key asset in helping us drive growth in conjunction with product innovations.
"We're also excited about the upcoming expansion of Emojipedia's ‘Emoji Playground,' which debuted last year with emoji mashups and quizzes. This year, we expect to add new features, including AI-driven emoji and digital sticker creation. These new features and enhancements, combined with plans to revamp the Emojipedia website, are expected to drive higher engagement, elevate the user experience and further reinforce Emojipedia's position as the ‘go-to' platform for emoji enthusiasts.
"Reversing losses and resuming growth at GuruShots are our top priorities for GuruShots. To accomplish this, our strategy has shifted, prioritizing new user growth away from legacy players. The path forward is clear from the changes we made to the game and the roadmap that we have planned for in this fiscal year. To date we have introduced a robust onboarding experience to ease more users into the game, adopted a coin-based in-game economy and more recently launched Missions, a recognized gamification technique for driving engagement and improving retention by rewarding players for accomplishing specific goals. These actions are already yielding early returns, and we believe we are on the right track for accomplishing our goals. Looking beyond Missions, we're targeting the release of a new competitive capability, player-vs-player (PvP), in time for the year-end holiday season.
"Finally, introducing new products remains a high priority for our long-term strategy. With promising projects like Wishcraft and AI Art Master in beta and more in the pipeline, we're centralizing our development platform in order to foster rapid iteration and efficient product rollouts, enabling us to make key decisions quickly - doubling down on initiatives that show promise while pulling back from ones that aren't performing well. This approach positions us to deliver new hits-whether incremental successes or major breakthroughs-that will drive sustained growth for Zedge.
"We're proud of our progress in FY'24 and believe there is lots more to come. As we continue to evolve our business for sustainable long-term growth, we're committed to smart capital allocation strategies, including share repurchases, that will drive long-term shareholder value."
Fourth Quarter Highlights (fiscal 2024 versus fiscal 2023)
Revenue increased
14.3% to$7.6 million ;GAAP operating loss of (
$0.1) million , compared to operating income of$0.2 million ;GAAP net income and earnings per share (EPS) were nil compared to
$0.2 million and$0.01 , respectively;Non-GAAP net income and EPS were
$0.3 million $0.02 compared to$0.6 million and$0.04 , respectively;Adjusted EBITDA of
$0.8 million ;Zedge Premium Gross Transaction Value, or GTV,increased
55.7% to$0.6 million .
Full Year Highlights (fiscal 2024 versus fiscal 2023)
Revenue increased
10.5% to$30.1 million ;GAAP operating loss of (
$11.8) million , compared to ($6.9) million ;GAAP operating loss for 2024 included non-cash write-downs related to an acquisition of
$12.0 million compared to$6.8 million in 2023;
GAAP net loss and loss per share (EPS) were (
$9.2) million and ($0.65) compared to ($6.1) million and ($0.44) , respectively, including the impact of the write-downs;Non-GAAP net income and EPS were
$1.8 million and$0.13 compared to$1.9 million and$0.13 , respectively;Adjusted EBITDA of
$4.7 million ;Repurchased 0.2 million shares of Class B Common Stock.
|
| Select Zedge Marketplace Metrics: FY24 versus FY23* |
| |||||||||
(in MM except for ARPMAU and where noted) |
| Q4 '24 |
|
| Q4 '23 |
|
| Change |
| |||
Total Installs1 - Cumulative |
|
| 674.3 |
|
|
| 621.0 |
|
|
| 8.6 | % |
MAU1 |
|
| 26.1 |
|
|
| 30.9 |
|
|
| -15.5 | % |
Well-developed Markets |
|
| 5.5 |
|
|
| 6.8 |
|
|
| -19.1 | % |
Emerging Markets |
|
| 20.6 |
|
|
| 24.1 |
|
|
| -14.5 | % |
Active Subscriptions1 (in 000s) |
|
| 669 |
|
|
| 647 |
|
|
| 3.4 | % |
ARPMAU |
| $ | 0.079 |
|
| $ | 0.055 |
|
|
| 43.3 | % |
Zedge Premium - Gross Transaction Value (GTV) |
| $ | 0.6 |
|
| $ | 0.4 |
|
|
| 55.7 | % |
*numbers may not add due to rounding |
|
|
|
|
|
|
|
|
|
|
|
|
Trended Financial Information*
(in $M except for EPS, ARPMAU, Paid Subscriptions) |
|
| Q123 |
|
|
| Q223 |
|
|
| Q323 |
|
|
| Q423 |
|
|
| Q124 |
|
|
| Q224 |
|
|
| Q324 |
|
|
| Q424 |
|
| FY22 |
|
| FY23 |
|
| FY24 |
| |||
Total Revenue |
| $ | 6.9 |
|
| $ | 7.0 |
|
| $ | 6.7 |
|
| $ | 6.6 |
|
| $ | 7.1 |
|
| $ | 7.8 |
|
| $ | 7.7 |
|
| $ | 7.6 |
|
| $ | 26.5 |
|
| $ | 27.2 |
|
| $ | 30.1 |
|
Advertising Revenue |
| $ | 4.5 |
|
| $ | 4.6 |
|
| $ | 4.6 |
|
| $ | 4.6 |
|
| $ | 4.9 |
|
| $ | 5.5 |
|
| $ | 5.5 |
|
| $ | 5.2 |
|
| $ | 20.3 |
|
| $ | 18.3 |
|
| $ | 21.0 |
|
Digital goods and services |
| $ | 1.3 |
|
| $ | 1.2 |
|
| $ | 1.1 |
|
| $ | 1.0 |
|
| $ | 0.9 |
|
| $ | 0.9 |
|
| $ | 0.9 |
|
| $ | 0.7 |
|
| $ | 1.7 |
|
| $ | 4.6 |
|
| $ | 3.5 |
|
Subscription Revenue |
| $ | 0.9 |
|
| $ | 0.9 |
|
| $ | 0.8 |
|
| $ | 0.9 |
|
| $ | 1.0 |
|
| $ | 1.1 |
|
| $ | 1.1 |
|
| $ | 1.2 |
|
| $ | 3.7 |
|
| $ | 3.5 |
|
| $ | 4.3 |
|
Other Revenue |
| $ | 0.2 |
|
| $ | 0.2 |
|
| $ | 0.2 |
|
| $ | 0.2 |
|
| $ | 0.2 |
|
| $ | 0.3 |
|
| $ | 0.2 |
|
| $ | 0.5 |
|
| $ | 0.8 |
|
| $ | 0.8 |
|
| $ | 1.2 |
|
GAAP Operating Income (Loss) |
| $ | (0.2 | ) |
| $ | 1.5 |
|
| $ | (8.4 | ) |
| $ | 0.2 |
|
| $ | 0.3 |
|
|
| (11.9 | ) |
| $ | (0.1 | ) |
| $ | (0.1 | ) |
| $ | 11.8 |
|
| $ | (6.9 | ) |
| $ | (11.8 | ) |
GAAP Net Income (Loss) |
| $ | (0.2 | ) |
| $ | 1.6 |
|
| $ | (7.7 | ) |
| $ | 0.2 |
|
| $ | (0.0 | ) |
| $ | (9.2 | ) |
| $ | 0.1 |
|
| $ | (0.0 | ) |
| $ | 9.7 |
|
| $ | (6.1 | ) |
| $ | (9.2 | ) |
GAAP Diluted Earnings (Loss) Per Share |
| $ | (0.01 | ) |
| $ | 0.11 |
|
| $ | (0.55 | ) |
| $ | 0.01 |
|
| $ | 0.00 |
|
| $ | 0.66 | ) |
| $ | 0.01 |
|
| $ | 0.00 |
|
| $ | 0.65 |
|
| $ | (0.44 | ) |
| $ | (0.65 | ) |
Non GAAP Net Income |
| $ | 0.2 |
|
| $ | 0.8 |
|
| $ | 0.3 |
|
| $ | 0.6 |
|
| $ | 0.5 |
|
| $ | 0.5 |
|
| $ | 0.5 |
|
| $ | 0.3 |
|
| $ | 8.8 |
|
| $ | 1.9 |
|
| $ | 1.8 |
|
Non-GAAP Diluted EPS |
| $ | 0.01 |
|
| $ | 0.06 |
|
| $ | 0.02 |
|
| $ | 0.04 |
|
| $ | 0.04 |
|
| $ | 0.04 |
|
| $ | 0.03 |
|
| $ | 0.02 |
|
| $ | 0.59 |
|
| $ | 0.13 |
|
| $ | 0.13 |
|
Adjusted EBITDA |
| $ | 1.0 |
|
| $ | 1.4 |
|
| $ | 1.7 |
|
| $ | 1.6 |
|
| $ | 1.5 |
|
| $ | 1.5 |
|
| $ | 0.9 |
|
| $ | 0.8 |
|
| $ | 12.4 |
|
| $ | 5.7 |
|
| $ | 4.7 |
|
Adjusted EBITDA Margin |
|
| 13.8 | % |
|
| 20.5 | % |
|
| 25.4 | % |
|
| 24.2 | % |
|
| 21.7 | % |
|
| 19.9 | % |
|
| 11.1 | % |
|
| 10.2 | % |
|
| 46.6 | % |
|
| 20.9 | % |
|
| 15.6 | % |
Cash Flow from Operations |
| $ | 1.1 |
|
| $ | 0.0 |
|
| $ | 1.6 |
|
| $ | 0.4 |
|
| $ | 1.3 |
|
| $ | 1.6 |
|
| $ | 2.3 |
|
| $ | 0.7 |
|
| $ | 11.5 |
|
| $ | 3.2 |
|
| $ | 5.9 |
|
MAU |
|
| 31.9 |
|
|
| 32.2 |
|
|
| 32.0 |
|
|
| 30.9 |
|
|
| 28.5 |
|
|
| 28.7 |
|
|
| 27.7 |
|
|
| 26.1 |
|
| nm |
|
| nm |
|
| nm |
| |||
Well-developed Markets |
|
| 7.1 |
|
|
| 7.4 |
|
|
| 7.2 |
|
|
| 6.8 |
|
|
| 6.2 |
|
|
| 6.2 |
|
|
| 6.0 |
|
|
| 5.5 |
|
| nm |
|
| nm |
|
| nm |
| |||
Emerging Markets |
|
| 24.8 |
|
|
| 24.8 |
|
|
| 24.8 |
|
|
| 24.1 |
|
|
| 22.3 |
|
|
| 22.5 |
|
|
| 21.7 |
|
|
| 20.6 |
|
| nm |
|
| nm |
|
| nm |
| |||
Active Subscriptions (in 000s) |
|
| 674 |
|
|
| 654 |
|
|
| 631 |
|
|
| 647 |
|
|
| 648 |
|
|
| 648 |
|
|
| 654 |
|
|
| 669 |
|
| nm |
|
| nm |
|
| nm |
| |||
ARPMAU |
| $ | 0.054 |
|
| $ | 0.052 |
|
| $ | 0.053 |
|
| $ | 0.055 |
|
| $ | 0.063 |
|
| $ | 0.072 |
|
| $ | 0.074 |
|
| $ | 0.079 |
|
| nm |
|
| nm |
|
| nm |
| |||
Zedge Premium - GTV |
| $ | 0.3 |
|
| $ | 0.4 |
|
| $ | 0.4 |
|
| $ | 0.4 |
|
| $ | 0.4 |
|
| $ | 0.5 |
|
| $ | 0.6 |
|
| $ | 0.6 |
|
| $ | 1.5 |
|
| $ | 1.5 |
|
| $ | 2.1 |
|
nm = not measurable/meaningful
*numbers may not add due to rounding
1 We use the following business metrics in this release because we believe they are useful in evaluating Zedge's operational performance.
Monthly active users, or MAU, captures the number of unique users that used our Zedge App during the previous 30 days of the relevant period, is useful for evaluating consumer engagement with our App, which correlates to advertising revenue as more users drive more ad impressions for sale. It also allows readers and potential advertisers to evaluate the size of our user base.
Zedge Premium Gross Transaction Value, or GTV, is the total dollar amount of transactions conducted through Zedge Premium. As Zedge Premium is an internal focus for growth, we believe this metric will help investors evaluate our progress in growing this part of our business.
Average Revenue Per Monthly Active User for our Zedge App, or ARPMAU, is useful in evaluating how well we monetize our user base.
An Active Subscription is a subscription that has commenced and not been canceled, including paused subscriptions and subscriptions in free trials, grace periods, or account hold. This is important because it is a source of recurring revenue.
Total Installs - Cumulative measures the number of times the Zedge App has been downloaded since inception.
2 Throughout this release, Non-GAAP Net Income, Non-GAAP EPS and Adjusted EBITDA are non-GAAP financial measures intended to provide useful information that supplement Zedge's results in accordance with GAAP. Please refer to the Reconciliation of Non-GAAP Financial measures at the end of this release for an explanation of Zedge's formulations of Non-GAAP Net Income, Non-GAAP EPS and Adjusted EBITDA and reconciliations to the most directly comparable GAAP measures.
Earnings Announcement and Supplemental Information
Management will host an earnings conference call beginning at 11:00 a.m. Eastern to discuss its results, outlook, and strategy, followed by a Q&A with investors.
Live Call-in Info:
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 311549
Webcast URL: https://www.webcaster4.com/Webcast/Page/2205/51461
Replay:
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 51461
About Zedge
Zedge empowers tens of millions of consumers and creators each month with its suite of interconnected platforms that enable creativity, self-expression and e-commerce and foster community through fun competitions. Zedge's ecosystem of product offerings includes the Zedge Marketplace, a freemium marketplace offering mobile phone wallpapers, video wallpapers, ringtones, notification sounds, and pAInt, a generative AI image maker; GuruShots, "The World's Greatest Photography Game," a skill-based photo challenge game; and Emojipedia, the #1 trusted source for ‘all things emoji.' For more information please visit: investor.zedge.net
Follow us on X: @Zedge
Follow us on LinkedIn
Forward-Looking Statements
All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate," "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, we assume no obligation to update any forward-looking statements.
Contact:
Brian Siegel, IRC, MBA
Senior Managing Director
Hayden IR
(346) 396-8696
ir@zedge.net
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value data)
July 31, |
| 2024 |
|
| 2023 |
| ||
|
|
|
|
|
| |||
Assets |
|
|
|
|
|
| ||
Current assets: |
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 19,998 |
|
| $ | 18,125 |
|
Trade accounts receivable |
|
| 3,406 |
|
|
| 2,883 |
|
Prepaid expenses and other receivables |
|
| 593 |
|
|
| 569 |
|
|
|
|
|
|
|
|
| |
Total current assets |
|
| 23,997 |
|
|
| 21,577 |
|
Property and equipment, net |
|
| 2,306 |
|
|
| 2,186 |
|
Intangible assets, net |
|
| 5,369 |
|
|
| 18,709 |
|
Goodwill |
|
| 1,824 |
|
|
| 1,961 |
|
Deferred tax assets, net |
|
| 4,344 |
|
|
| 1,842 |
|
Other assets |
|
| 355 |
|
|
| 556 |
|
Total assets |
| $ | 38,195 |
|
| $ | 46,831 |
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Trade accounts payable |
| $ | 1,113 |
|
| $ | 669 |
|
Accrued expenses and other current liabilities |
|
| 2,969 |
|
|
| 2,676 |
|
Deferred revenues |
|
| 2,168 |
|
|
| 2,414 |
|
Total current liabilities |
|
| 6,250 |
|
|
| 5,759 |
|
Term loan, net of deferred financing costs |
|
| - |
|
|
| 1,985 |
|
Deferred revenues--non-current |
|
| 931 |
|
|
| - |
|
Other liabilities |
|
| 118 |
|
|
| 223 |
|
Total liabilities |
|
| 7,299 |
|
|
| 7,967 |
|
Commitments and contingencies (Note 10) |
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
Preferred stock, $.01 par value; authorized shares-2,400; no shares issued and outstanding |
|
| - |
|
|
| - |
|
Class A common stock, $.01 par value; authorized shares-2,600; 525 shares issued and outstanding at July 31, 2024 and 2023 |
|
| 5 |
|
|
| 5 |
|
Class B common stock, $.01 par value; authorized shares-40,000; 14,866 shares issued and 13,815 shares outstanding at July 31, 2024, and 14,634 shares issued and 13,801 outstanding at July 31, 2023 |
|
| 149 |
|
|
| 146 |
|
Additional paid-in capital |
|
| 48,263 |
|
|
| 46,122 |
|
Accumulated other comprehensive loss |
|
| (1,832 | ) |
|
| (1,537 | ) |
Accumulated deficit |
|
| (13,113 | ) |
|
| (3,942 | ) |
Treasury stock,1,051 shares at July 31, 2024 and 833 shares at July 31, 2023, at cost |
|
| (2,576 | ) |
|
| (1,930 | ) |
Total stockholders' equity |
|
| 30,896 |
|
|
| 38,864 |
|
Total liabilities and stockholders' equity |
| $ | 38,195 |
|
| $ | 46,831 |
|
ZEDGE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except per share data)
|
| Three Months Ended |
|
| Fiscal Year Ended |
| ||||||||||
|
| July 31, |
|
| July 31, |
| ||||||||||
|
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| ||||
Revenues |
| $ | 7,581 |
|
| $ | 6,632 |
|
| $ | 30,091 |
|
| $ | 27,241 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct cost of revenues (excluding amortization of capitalized software and technology development costs which is included below) |
|
| 460 |
|
|
| 480 |
|
|
| 1,859 |
|
|
| 2,242 |
|
Selling, general and administrative |
|
| 6,852 |
|
|
| 5,144 |
|
|
| 25,625 |
|
|
| 21,857 |
|
Depreciation and amortization |
|
| 334 |
|
|
| 763 |
|
|
| 2,454 |
|
|
| 3,269 |
|
Impairment of intangible assets |
|
| - |
|
|
| - |
|
|
| 11,958 |
|
|
| - |
|
Impairment of goodwill |
|
| - |
|
|
| - |
|
|
| - |
|
|
| 8,727 |
|
Change in fair value of contingent consideration |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (1,943 | ) |
Loss (income) from operations |
|
| (65 | ) |
|
| 245 |
|
|
| (11,805 | ) |
|
| (6,911 | ) |
Interest and other income, net |
|
| 192 |
|
|
| 115 |
|
|
| 626 |
|
|
| 311 |
|
Net income (loss) resulting from foreign exchange transactions |
|
| 33 |
|
|
| 36 |
|
|
| (190 | ) |
|
| 36 |
|
Income (loss) before income taxes |
|
| 160 |
|
|
| 396 |
|
|
| (11,369 | ) |
|
| (6,564 | ) |
Provision for (benefit from) income taxes |
|
| 199 |
|
|
| 240 |
|
|
| (2,198 | ) |
|
| (462 | ) |
Net (loss) income |
| $ | (39 | ) |
| $ | 156 |
|
| $ | (9,171 | ) |
| $ | (6,102 | ) |
Other comprehensive gain (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in foreign currency translation adjustment |
|
| 46 |
|
|
| 175 |
|
|
| (295 | ) |
|
| (146 | ) |
Total other comprehensive gain (loss) |
|
| 46 |
|
|
| 175 |
|
|
| (295 | ) |
|
| (146 | ) |
Total comprehensive gain (loss) |
| $ | 7 |
|
| $ | 331 |
|
| $ | (9,466 | ) |
| $ | (6,248 | ) |
Income (loss) per share attributable to Zedge, Inc. common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | - |
|
| $ | 0.01 |
|
| $ | (0.65 | ) |
| $ | (0.43 | ) |
Diluted |
| $ | - |
|
| $ | 0.01 |
|
| $ | (0.65 | ) |
| $ | (0.43 | ) |
Weighted-average number of shares used in calculation of income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 14,141 |
|
|
| 13,928 |
|
|
| 14,092 |
|
|
| 14,096 |
|
Diluted |
|
| 14,495 |
|
|
| 13,928 |
|
|
| 14,092 |
|
|
| 14,096 |
|
ZEDGE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended July 31, |
| 2024 |
|
| 2023 |
| ||
|
|
|
|
|
| |||
Operating activities |
|
|
|
|
|
| ||
Net loss |
| $ | (9,171 | ) |
| $ | (6,102 | ) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation |
|
| 56 |
|
|
| 60 |
|
Amortization of intangible assets |
|
| 1,382 |
|
|
| 2,316 |
|
Amortization of capitalized software and technology development costs |
|
| 1,016 |
|
|
| 893 |
|
Amortization of deferred financing costs |
|
| 15 |
|
|
| 3 |
|
Stock-based compensation |
|
| 2,141 |
|
|
| 2,519 |
|
Impairment charge of intangible assets |
|
| 11,958 |
|
|
| - |
|
Impairment of investment in privately-held company |
|
| 50 |
|
|
| - |
|
Deferred income taxes |
|
| (2,502 | ) |
|
| (981 | ) |
Impairment charge of goodwill |
|
| - |
|
|
| 8,727 |
|
Change in fair value of contingent consideration |
|
| - |
|
|
| (1,943 | ) |
|
|
|
|
|
|
|
|
|
Change in assets and liabilities: |
|
|
|
|
|
|
|
|
Trade accounts receivable |
|
| (523 | ) |
|
| (472 | ) |
Prepaid expenses and other current assets |
|
| (24 | ) |
|
| (173 | ) |
Other assets |
|
| 45 |
|
|
| 14 |
|
Trade accounts payable and accrued expenses |
|
| 722 |
|
|
| (711 | ) |
Deferred revenue |
|
| 685 |
|
|
| (988 | ) |
Net cash provided by operating activities |
|
| 5,850 |
|
|
| 3,162 |
|
Investing activities |
|
|
|
|
|
|
|
|
Final payment for asset acquisitions |
|
| - |
|
|
| (962 | ) |
Capitalized software and technology development costs |
|
| (1,147 | ) |
|
| (1,406 | ) |
Purchase of property and equipment |
|
| (47 | ) |
|
| (54 | ) |
Net cash used in investing activities |
|
| (1,194 | ) |
|
| (2,422 | ) |
Financing activities |
|
|
|
|
|
|
|
|
Prepayment of term loan |
|
| (2,000 | ) |
|
| - |
|
Purchase of treasury stock in connection with share buyback program and stock awards vesting |
|
| (646 | ) |
|
| (1,596 | ) |
Proceeds from exercise of stock options |
|
| 3 |
|
|
| 1 |
|
Proceeds from term loan |
|
| - |
|
|
| 2,000 |
|
Payment of deferred financing costs |
|
| - |
|
|
| (18 | ) |
Net cash (used in) provided by financing activities |
|
| (2,643 | ) |
|
| 387 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
| (140 | ) |
|
| (87 | ) |
Net increase in cash and cash equivalents |
|
| 1,873 |
|
|
| 1,040 |
|
Cash and cash equivalents at beginning of period |
|
| 18,125 |
|
|
| 17,085 |
|
Cash and cash equivalents at end of period |
| $ | 19,998 |
|
| $ | 18,125 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
|
|
|
|
|
|
|
|
Cash payments made for income taxes |
| $ | 272 |
|
| $ | 795 |
|
Cash payments made for interest expenses |
| $ | 66 |
|
| $ | 118 |
|
Use of Non-GAAP Measures
Adjusted EBITDA, defined as earnings (loss) before interest, taxes, depreciation and amortization, stock compensation expense, transaction-related expenses and other non-recurring expenses, Adjusted EBITDA Margin, and non-GAAP net income and EPS (which adjust out stock compensation expense, transaction-related expenses and other non-recurring expenses from GAAP net income and EPS), represent measures that we believe are customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures we present. Our management also believes these measures are useful in evaluating our core operating results. However, these are not measures of financial performance under GAAP and should not be considered an alternative to net income or operating income/margin as an indicator of our operating performance or to net cash provided by operating activities as a measure of our liquidity.
Reconciliation of Adjusted EBITDA to Net (Loss) Income |
|
| Q123 |
|
|
| Q223 |
|
|
| Q323 |
|
|
| Q423 |
|
|
| Q124 |
|
|
| Q224 |
|
|
| Q324 |
|
|
| Q424 |
|
| FY22 |
|
| FY23 |
|
| FY24 |
| |||
Net (Loss) Income |
| $ | (0.2 | ) |
| $ | 1.6 |
|
| $ | (7.7 | ) |
| $ | 0.2 |
|
| $ | (0.0 | ) |
| $ | (9.2 | ) |
| $ | 0.1 |
|
| $ | (0.0 | ) |
| $ | 9.7 |
|
| $ | (6.1 | ) |
| $ | (9.2 | ) |
Excluding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income (expense), net |
| $ | (0.0 | ) |
| $ | (0.1 | ) |
| $ | (0.1 | ) |
| $ | (0.1 | ) |
| $ | (0.1 | ) |
| $ | (0.2 | ) |
| $ | (0.2 | ) |
| $ | (0.2 | ) |
| $ | (0.0 | ) |
| $ | (0.3 | ) |
| $ | (0.6 | ) |
Provision for (benefit from) income taxes |
| $ | (0.1 | ) |
| $ | 0.1 |
|
| $ | (0.7 | ) |
| $ | 0.2 |
|
| $ | 0.2 |
|
| $ | (2.5 | ) |
| $ | (0.1 | ) |
| $ | 0.2 |
|
| $ | 1.9 |
|
| $ | (0.5 | ) |
| $ | (2.2 | ) |
Depreciation and amortization |
| $ | 0.8 |
|
| $ | 0.8 |
|
| $ | 0.9 |
|
| $ | 0.8 |
|
| $ | 0.8 |
|
| $ | 0.8 |
|
| $ | 0.6 |
|
| $ | 0.3 |
|
| $ | 2.0 |
|
| $ | 3.3 |
|
| $ | 2.5 |
|
EBITDA |
| $ | 0.5 |
|
| $ | 2.4 |
|
| $ | (7.6 | ) |
| $ | 1.0 |
|
| $ | 0.9 |
|
| $ | (11.1 | ) |
| $ | 0.4 |
|
| $ | 0.3 |
|
| $ | 13.5 |
|
| $ | (3.6 | ) |
| $ | (9.5 | ) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related write-offs |
| $ | (0.2 | ) |
| $ | (1.8 | ) |
| $ | 8.7 |
|
| $ | 0.0 |
|
| $ | 0.0 |
|
| $ | 12.0 |
|
| $ | 0.0 |
|
| $ | 0.0 |
|
| $ | (4.0 | ) |
| $ | 6.8 |
|
| $ | 12.0 |
|
Stock-based compensation |
| $ | 0.6 |
|
| $ | 0.8 |
|
| $ | 0.6 |
|
| $ | 0.6 |
|
| $ | 0.5 |
|
| $ | 0.7 |
|
| $ | 0.5 |
|
| $ | 0.5 |
|
| $ | 1.9 |
|
| $ | 2.5 |
|
| $ | 2.1 |
|
Transaction costs related to business combination |
| $ | 0.0 |
|
| $ | 0.0 |
|
| $ | 0.0 |
|
| $ | 0.0 |
|
| $ | 0.2 |
|
| $ | 0.0 |
|
| $ | 0.0 |
|
| $ | 0.0 |
|
| $ | 0.9 |
|
| $ | 0.0 |
|
| $ | 0.2 |
|
Adjusted EBITDA |
| $ | 1.0 |
|
| $ | 1.4 |
|
| $ | 1.7 |
|
| $ | 1.6 |
|
| $ | 1.5 |
|
| $ | 1.5 |
|
| $ | 0.9 |
|
| $ | 0.8 |
|
| $ | 12.4 |
|
| $ | 5.7 |
|
| $ | 4.7 |
|
*numbers may not add due to rounding
Reconciliation of GAAP Net (Loss) Income to Non-GAAP Net Income |
|
| Q123 |
|
|
| Q223 |
|
|
| Q323 |
|
|
| Q423 |
|
|
| Q124 |
|
|
| Q224 |
|
|
| Q324 |
|
|
| Q424 |
|
| FY22 |
|
| FY23 |
|
| FY24 |
| |||
GAAP Net (Loss) Income |
| $ | (0.2 | ) |
| $ | 1.6 |
|
| $ | (7.7 | ) |
| $ | 0.2 |
|
| $ | (0.0 | ) |
| $ | (9.2 | ) |
| $ | 0.1 |
|
| $ | (0.0 | ) |
| $ | 9.7 |
|
| $ | (6.1 | ) |
| $ | (9.2 | ) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related write-offs |
| $ | (0.2 | ) |
| $ | (1.8 | ) |
| $ | 8.7 |
|
| $ | 0.0 |
|
| $ | 0.0 |
|
| $ | 12.0 |
|
| $ | 0.0 |
|
| $ | 0.0 |
|
| $ | (4.0 | ) |
| $ | 6.8 |
|
| $ | 12.0 |
|
Stock-based compensation |
| $ | 0.6 |
|
| $ | 0.8 |
|
| $ | 0.6 |
|
| $ | 0.6 |
|
| $ | 0.5 |
|
| $ | 0.7 |
|
| $ | 0.5 |
|
| $ | 0.5 |
|
| $ | 1.9 |
|
| $ | 2.5 |
|
| $ | 2.1 |
|
Transaction costs related to business combination |
| $ | 0.0 |
|
| $ | 0.0 |
|
| $ | 0.0 |
|
| $ | 0.0 |
|
| $ | 0.2 |
|
| $ | 0.0 |
|
| $ | 0.0 |
|
| $ | 0.0 |
|
| $ | 0.9 |
|
| $ | 0.0 |
|
| $ | 0.2 |
|
Income tax effect on non-GAAP items |
| $ | (0.1 | ) |
| $ | 0.2 |
|
| $ | (1.3 | ) |
| $ | (0.1 | ) |
| $ | (0.2 | ) |
| $ | (2.9 | ) |
| $ | (0.1 | ) |
| $ | (0.1 | ) |
| $ | 0.3 |
|
| $ | (1.3 | ) |
| $ | (3.3 | ) |
Non-GAAP Net Income |
| $ | 0.2 |
|
| $ | 0.8 |
|
| $ | 0.3 |
|
| $ | 0.6 |
|
| $ | 0.5 |
|
| $ | 0.5 |
|
| $ | 0.5 |
|
| $ | 0.3 |
|
| $ | 8.8 |
|
| $ | 1.9 |
|
| $ | 1.8 |
|
Non-GAAP basic earnings per share |
| $ | 0.01 |
|
| $ | 0.06 |
|
| $ | 0.02 |
|
| $ | 0.04 |
|
| $ | 0.04 |
|
| $ | 0.04 |
|
| $ | 0.03 |
|
| $ | 0.02 |
|
| $ | 0.62 |
|
| $ | 0.13 |
|
| $ | 0.13 |
|
Non-GAAP diluted earnings per share |
| $ | 0.01 |
|
| $ | 0.06 |
|
| $ | 0.02 |
|
| $ | 0.04 |
|
| $ | 0.04 |
|
| $ | 0.04 |
|
| $ | 0.03 |
|
| $ | 0.02 |
|
| $ | 0.59 |
|
| $ | 0.13 |
|
| $ | 0.13 |
|
Weighted average shares used to compute Non-GAAP basic earnings per share |
|
| 14.3 |
|
|
| 14.1 |
|
|
| 14.0 |
|
|
| 13.9 |
|
|
| 14.0 |
|
|
| 14.1 |
|
|
| 14.2 |
|
|
| 14.1 |
|
|
| 14.2 |
|
|
| 14.1 |
|
|
| 14.1 |
|
Weighted average shares used to compute Non-GAAP diluted earnings per share |
|
| 14.3 |
|
|
| 14.3 |
|
|
| 14.0 |
|
|
| 13.9 |
|
|
| 14.0 |
|
|
| 14.1 |
|
|
| 14.5 |
|
|
| 14.5 |
|
|
| 14.9 |
|
|
| 14.1 |
|
|
| 14.1 |
|
*numbers may not add due to rounding
SOURCE: Zedge, Inc.
View the original press release on accesswire.com
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