Zedge Announces GuruShots Restructuring to Improve Profitability and Position Itself for Long-term Growth
Zedge (NYSE:ZDGE) announced a corporate restructuring focused on improving profitability, primarily affecting its GuruShots division. The restructuring includes a 14% reduction in global workforce, expected to generate approximately $1.7 million in pre-tax annual cost savings.
The company is implementing 'GuruShots 2.0', a comprehensive overhaul of the photography game platform, aimed at enhancing player experience and monetization. Key initiatives include improving the user interface, reassessing gaming technology infrastructure, and reducing player acquisition spending for the remainder of fiscal 2025.
Most restructuring charges will be reported in the second (ending January 31, 2025) and third (ending April 30, 2025) fiscal quarters. The company aims to bring GuruShots closer to breakeven while developing its new strategy, only maintaining marketing spend for campaigns with attractive Return on Ad Spend metrics.
Zedge (NYSE:ZDGE) ha annunciato una ristrutturazione aziendale orientata al miglioramento della redditività, che colpirà principalmente la sua divisione GuruShots. La ristrutturazione prevede una riduzione del 14% della forza lavoro globale, che dovrebbe generare circa 1,7 milioni di dollari in risparmi annuali prima delle tasse.
L'azienda sta attuando 'GuruShots 2.0', un ampio rinnovamento della piattaforma di giochi fotografici, volto a migliorare l'esperienza dei giocatori e la monetizzazione. Le principali iniziative includono il miglioramento dell'interfaccia utente, la rivalutazione dell'infrastruttura tecnologica di gioco e la riduzione della spesa per l'acquisizione di giocatori per il resto dell'anno fiscale 2025.
La maggior parte dei costi di ristrutturazione sarà riportata nel secondo (che si chiude il 31 gennaio 2025) e nel terzo (che si chiude il 30 aprile 2025) trimestre fiscale. L'azienda mira a portare GuruShots più vicino al pareggio mentre sviluppa la sua nuova strategia, mantenendo solo la spesa per il marketing per le campagne con metriche attraenti di ritorno sulla spesa pubblicitaria.
Zedge (NYSE:ZDGE) anunció una reestructuración corporativa centrada en mejorar la rentabilidad, que afectará principalmente a su división GuruShots. La reestructuración incluye una reducción del 14% en la plantilla global, que se espera genere aproximadamente 1.7 millones de dólares en ahorros anuales antes de impuestos.
La compañía está implementando 'GuruShots 2.0', una revisión integral de la plataforma de juegos de fotografía, destinada a mejorar la experiencia del jugador y la monetización. Las iniciativas clave incluyen la mejora de la interfaz de usuario, la revaluación de la infraestructura tecnológica de juegos y la reducción del gasto en adquisición de jugadores para el resto del año fiscal 2025.
La mayoría de los cargos por reestructuración se reportarán en el segundo (que finaliza el 31 de enero de 2025) y el tercer (que finaliza el 30 de abril de 2025) trimestres fiscales. La empresa busca acercar a GuruShots al punto de equilibrio mientras desarrolla su nueva estrategia, manteniendo solo el gasto en marketing para campañas con métricas atractivas de retorno sobre la inversión publicitaria.
Zedge (NYSE:ZDGE)는 수익성 개선을 목표로 하는 기업 재구성을 발표했으며, 주로 GuruShots 부문에 영향을 미칩니다. 재구성에는 글로벌 인력 14% 축소가 포함되며, 이는 세전 연간 비용 절감액 약 170만 달러를 창출할 것으로 예상됩니다.
회사는 'GuruShots 2.0'을 구현하고 있으며, 이는 게임 플랫폼에 대한 포괄적인 개편으로, 플레이어 경험과 수익화 향상을 목표로 하고 있습니다. 주요 이니셔티브에는 사용자 인터페이스 개선, 게임 기술 인프라 재평가, 2025 회계연도 나머지 기간 동안 플레이어 확보 비용 절감이 포함됩니다.
대부분의 재구성 비용은 두 번째(2025년 1월 31일 마감) 및 세 번째(2025년 4월 30일 마감) 회계 분기에서 보고될 예정입니다. 회사는 새로운 전략을 개발하는 동안 GuruShots를 손익 분기점에 더 가깝게 다가가게 하고, 매력적인 광고 비용 대비 수익 캠페인만 마케팅 비용을 유지하는 것을 목표로 하고 있습니다.
Zedge (NYSE:ZDGE) a annoncé une réorganisation d'entreprise axée sur l'amélioration de la rentabilité, affectant principalement sa division GuruShots. La réorganisation comprend une réduction de 14% de la main-d'œuvre mondiale, qui devrait générer environ 1,7 million de dollars d'économies annuelles avant impôts.
L'entreprise met en œuvre 'GuruShots 2.0', une refonte complète de la plateforme de jeu photographique, visant à améliorer l'expérience des joueurs et la monétisation. Les initiatives clés incluent l'amélioration de l'interface utilisateur, la réévaluation de l'infrastructure technologique des jeux, et la réduction des dépenses d'acquisition de joueurs pour le reste de l'exercice fiscal 2025.
La plupart des charges de restructuration seront rapportées au deuxième trimestre (se terminant le 31 janvier 2025) et au troisième trimestre (se terminant le 30 avril 2025) de l'exercice fiscal. L'entreprise vise à rapprocher GuruShots du seuil de rentabilité tout en développant sa nouvelle stratégie, en maintenant uniquement les dépenses de marketing pour les campagnes avec des métriques attrayantes de retour sur investissement publicitaire.
Zedge (NYSE:ZDGE) hat eine Unternehmensumstrukturierung angekündigt, die sich auf die Verbesserung der Rentabilität konzentriert und hauptsächlich die GuruShots-Sparte betrifft. Die Umstrukturierung umfasst eine Reduzierung der globalen Belegschaft um 14%, die voraussichtlich ein Einsparungspotenzial von etwa 1,7 Millionen US-Dollar an jährlichen Vorsteuerkosten generiert.
Das Unternehmen implementiert 'GuruShots 2.0', eine umfassende Überarbeitung der Fotospielplattform, die darauf abzielt, das Spielerlebnis und die Monetarisierung zu verbessern. Zu den wichtigsten Initiativen gehören die Verbesserung der Benutzeroberfläche, die Neubewertung der Spieltechnologie-Infrastruktur sowie die Reduzierung der Ausgaben für die Spielerakquise für den Rest des Geschäftsjahres 2025.
Die meisten Umstrukturierungskosten werden im zweiten (endet am 31. Januar 2025) und dritten (endet am 30. April 2025) Quartal des Geschäftsjahres berichtet. Das Unternehmen strebt an, GuruShots näher an die Gewinnschwelle zu bringen, während es seine neue Strategie entwickelt, und hält nur Marketingausgaben für Kampagnen mit attraktiven Kennzahlen zur Rentabilität der Werbeausgaben aufrecht.
- Expected $1.7 million annual pre-tax cost savings from restructuring
- Strategic focus on improving GuruShots profitability through operational efficiency
- Development of GuruShots 2.0 with enhanced user experience and monetization potential
- 14% reduction in global workforce
- Ongoing profitability drag from GuruShots division
- Reduction in marketing spend for player acquisition
- Restructuring charges to impact Q2 and Q3 fiscal quarters
Insights
This restructuring announcement reveals critical financial implications for Zedge. The 14% workforce reduction and projected
The decision to reduce marketing spend and focus only on campaigns with positive ROAS metrics demonstrates a shift toward capital efficiency. This strategic pivot, combined with the development of GuruShots 2.0, suggests a balanced approach between cost control and future growth potential. The restructuring charges hitting Q2 and Q3 FY25 will temporarily impact financial statements but should position the company for improved profitability in subsequent quarters.
The GuruShots overhaul signals a critical strategic shift in Zedge's gaming division. The planned GuruShots 2.0 initiative, focusing on enhanced user interface and improved player experience, aligns with current gaming industry trends where user engagement and retention are paramount. The temporary reduction in player acquisition spending is a calculated risk - while it may slow immediate growth, it allows for platform optimization before scaling.
The emphasis on monetization strategy refinement suggests potential implementation of new revenue streams or optimization of existing ones. For a game centered on photography, this could include premium features, expanded competitive elements, or new social commerce opportunities. The approach of meeting specific milestones before reinvesting shows disciplined product development methodology.
For a company with a market cap of
The strategy to reach near-breakeven while developing GuruShots 2.0 balances short-term financial stability with long-term growth potential. This approach could help Zedge maintain its market position while rebuilding for expansion. The restructuring timing aligns with broader market trends where investors are prioritizing profitability over growth-at-all-costs strategies.
Initiatives, including an approximate
Cost reductions expected to enhance profitability and cash flow
Comprehensive overhaul of the GuruShots game underway, targeting much-improved player experience to drive future growth
NEW YORK, NY / ACCESS Newswire / January 21, 2025 / Zedge, Inc. (NYSE AMERICAN:ZDGE), $ZDGE, a leader in digital marketplaces and interactive games that provide content, enable creativity, empower self-expression and facilitate community, today announced a corporate restructuring designed to streamline operations and enhance profitability. The Company expects the restructuring, which includes employees and contractors, will reduce Zedge's global workforce by approximately
Jonathan Reich, CEO of Zedge, commented:
"Given its ongoing drag on our results, we are rightsizing GuruShots to reduce costs while at the same time reimagining the game and growth plan with our GuruShots 2.0 initiative. We continue to believe that GuruShots can be accretive to Zedge's growth and profitability, and we remain encouraged by the positive response from industry insiders, photo enthusiasts and consumers who find the value proposition, mainly gamifying photography, exciting, captivating and attractive. This feedback gives us the impetus to forge forward and evolve the game by developing a meaningfully better player experience, including a significantly improved user interface. Ultimately, we expect to make GuruShots even more engaging and enjoyable for both new and existing players, as our legacy users remain a loyal and coveted part of our community that deserve ongoing investment and attention.
Reimagining GuruShots Gameplay and Monetization
Zedge is undertaking a comprehensive evaluation of the GuruShots game. As part of the review, the rightsized GuruShots team will prioritize initiatives that improve gameplay for both existing and new players, including conducting a comprehensive assessment of the gaming technology infrastructure best suited for delivering a superior overall player experience. Additionally, the GuruShots team is actively exploring new ways to monetize the game to drive revenue growth. Once the GuruShots 2.0 strategy and product roadmap are solidified, Zedge anticipates re-allocating investment into the game based on meeting select milestones.
Key Cost Savings Initiatives
Rightsizing GuruShots Workforce
As part of the restructuring, the GuruShots organization will undergo significant changes, including rightsizing the workforce, which is expected to enable GuruShots to approach breakeven while developing the GuruShots 2.0 product strategy.
GuruShots Player Acquisition Spend to Decrease for the Remainder of FY25
In addition to headcount reductions, GuruShots will cut back on previously budgeted paid player acquisition for at least the remainder of the fiscal year, only allocating marketing dollars to player acquisition campaigns that deliver attractive Return on Ad Spend (ROAS) metrics.
Financial Impact
The Company expects that most of the restructuring charges associated with today's announced cost-reduction initiatives will be reported in its second (ending January 31, 2025) and third (ending April 30, 2025) fiscal quarters' results.
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, visit: investor.zedge.net
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Contact:
Brian Siegel, IRC, MBA
Senior Managing Director
Hayden IR
(346) 396-8696
ir@zedge.net
SOURCE: Zedge, Inc.
View the original press release on ACCESS Newswire
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