Zedge Announces New $5 Million Share Repurchase Program
Zedge (NYSE AMERICAN:ZDGE) has announced a new $5 million share repurchase program for its Class B common stock, following the completion of its previous $3 million program on August 28, 2024. The company's CEO, Jonathan Reich, emphasized that this decision reflects their belief in Zedge's undervaluation by the market. Both Zedge Marketplace and Emojipedia are experiencing double-digit revenue growth, with a strong cash position. The company is investing in growth initiatives, including AI features like pAInt and fresh emoji content, while focusing on maximizing ad revenue. Zedge is also implementing changes to drive growth in GuruShots, including an on-boarding overhaul and a new coin-based economy. The repurchase program will be executed through various methods, including open market purchases and privately negotiated transactions, with timing and amount determined by market conditions and other factors.
Zedge (NYSE AMERICAN:ZDGE) ha annunciato un nuovo programma di riacquisto di azioni da 5 milioni di dollari per le sue azioni ordinarie di Classe B, dopo il completamento del precedente programma da 3 milioni di dollari il 28 agosto 2024. Il CEO dell'azienda, Jonathan Reich, ha sottolineato che questa decisione riflette la loro convinzione che Zedge sia sottovalutata dal mercato. Sia Zedge Marketplace che Emojipedia stanno sperimentando una crescita dei ricavi a doppia cifra, con una solida posizione di cassa. L'azienda sta investendo in iniziative di crescita, comprese le funzionalità AI come pAInt e nuovi contenuti emoji, mentre si concentra sull'ottimizzazione delle entrate pubblicitarie. Zedge sta anche attuando cambiamenti per stimolare la crescita in GuruShots, inclusi una revisione dell'onboarding e una nuova economia basata su monete. Il programma di riacquisto sarà attuato attraverso vari metodi, comprese le acquisizioni nel mercato aperto e transazioni negoziate privatamente, con tempistiche e importi determinati dalle condizioni di mercato e da altri fattori.
Zedge (NYSE AMERICAN:ZDGE) ha anunciado un nuevo programa de recompra de acciones de 5 millones de dólares para sus acciones ordinarias Clase B, tras la finalización de su programa anterior de 3 millones de dólares el 28 de agosto de 2024. El CEO de la compañía, Jonathan Reich, enfatizó que esta decisión refleja su creencia en que Zedge está subvaluada por el mercado. Tanto Zedge Marketplace como Emojipedia están experimentando un crecimiento de ingresos de dos dígitos, con una sólida posición de efectivo. La empresa está invirtiendo en iniciativas de crecimiento, incluyendo funciones de IA como pAInt y nuevo contenido de emoji, mientras se enfoca en maximizar los ingresos por publicidad. Zedge también está implementando cambios para impulsar el crecimiento en GuruShots, que incluyen una revisión del proceso de integración y una nueva economía basada en monedas. El programa de recompra se llevará a cabo a través de diversos métodos, incluidas compras en el mercado abierto y transacciones negociadas de manera privada, con el momento y la cantidad determinados por las condiciones del mercado y otros factores.
Zedge (NYSE AMERICAN:ZDGE)는 이전의 300만 달러 프로그램을 2024년 8월 28일 완료한 후, 클래스 B 보통주에 대해 500만 달러 규모의 자기주식 매입 프로그램을 발표했습니다. 회사의 CEO인 Jonathan Reich는 이 결정이 시장에 의해 Zedge가 저평가되고 있다는 믿음을 반영한다고 강조했습니다. Zedge Marketplace와 Emojipedia는 두 자릿수의 수익 성장을 경험하고 있어서, 강력한 현금 포지션을 유지하고 있습니다. 회사는 pAInt와 같은 AI 기능 및 새로운 이모지 콘텐츠를 포함한 성장 이니셔티브에 투자하고 있으며, 광고 수익 극대화에 집중하고 있습니다. Zedge는 또한 GuruShots에서의 성장을 촉진하기 위해 온보딩 전면 개편 및 새로운 코인 기반 경제를 포함한 변화를 시행하고 있습니다. 매입 프로그램은 공개 시장 구매 및 개인적으로 협상된 거래를 포함한 다양한 방법으로 실행되며, 시기와 규모는 시장 조건 및 기타 요인에 따라 결정됩니다.
Zedge (NYSE AMERICAN:ZDGE) a annoncé un nouveau programme de rachat d'actions de 5 millions de dollars pour ses actions ordinaires de classe B, suite à l'achèvement de son précédent programme de 3 millions de dollars le 28 août 2024. Le PDG de l'entreprise, Jonathan Reich, a souligné que cette décision reflète leur conviction que Zedge est sous-évaluée par le marché. Tant Zedge Marketplace qu'Emojipedia connaissent une croissance à deux chiffres de leurs revenus, avec une solide position de trésorerie. L'entreprise investit dans des initiatives de croissance, y compris des fonctionnalités d'IA comme pAInt et un nouveau contenu emoji, tout en se concentrant sur la maximisation des revenus publicitaires. Zedge met également en œuvre des changements pour stimuler la croissance de GuruShots, notamment une refonte de l'intégration et une nouvelle économie basée sur des pièces. Le programme de rachat sera exécuté par divers moyens, y compris des achats sur le marché ouvert et des transactions négociées de manière privée, avec des délais et des montants déterminés par les conditions du marché et d'autres facteurs.
Zedge (NYSE AMERICAN:ZDGE) hat ein neues Aktienrückkaufprogramm in Höhe von 5 Millionen US-Dollar für seine Stammaktien der Klasse B angekündigt, nachdem am 28. August 2024 das vorherige Programm über 3 Millionen US-Dollar abgeschlossen wurde. Der CEO des Unternehmens, Jonathan Reich, betonte, dass diese Entscheidung ihre Überzeugung widerspiegelt, dass Zedge vom Markt unterbewertet wird. Sowohl Zedge Marketplace als auch Emojipedia verzeichnen ein zweistelliges Umsatzwachstum und haben eine starke Liquiditätsposition. Das Unternehmen investiert in Wachstumsinitiativen, einschließlich KI-Features wie pAInt und frischen Emoji-Inhalten, während es sich auf die Maximierung der Werbeeinnahmen konzentriert. Zedge führt auch Änderungen ein, um das Wachstum bei GuruShots zu fördern, darunter eine Überarbeitung der Einarbeitung und eine neue auf Coins basierende Wirtschaft. Das Rückkaufprogramm wird durch verschiedene Methoden umgesetzt, einschließlich Käufen auf dem offenen Markt und privat ausgehandelten Transaktionen, wobei Zeitrahmen und Betrag von den Marktbedingungen und anderen Faktoren abhängt.
- New $5 million share repurchase program approved
- Double-digit revenue growth in Zedge Marketplace and Emojipedia
- Strong cash position while investing in growth initiatives
- Introduction of AI features like pAInt to enhance offerings
- Implementation of changes in GuruShots to drive growth
- Planned execution of a Rule 10b5-1 plan for continuous stock repurchases
- Potential opportunity cost of using $5 million for share repurchases instead of other investments
Insights
Zedge's new
However, investors should note that while buybacks can boost earnings per share, they don't directly improve business fundamentals. The focus on AI features and ad revenue optimization indicates potential for future growth, but the impact remains to be seen. The planned use of a Rule 10b5-1 plan for continuous repurchases demonstrates a structured approach to capital allocation, which could provide stability to the stock price.
Zedge's strategic moves in AI and content creation are noteworthy. The introduction of pAInt, a generative AI image creation platform, positions the company at the forefront of the AI-driven content revolution. This aligns with industry trends towards personalized, AI-generated content.
The company's diverse portfolio, including Zedge Marketplace, Emojipedia and GuruShots, creates multiple revenue streams in the digital content space. The focus on emoji content and mobile customization caters to the growing demand for personal expression in digital communication. However, the success of these initiatives will depend on user adoption and monetization strategies in a highly competitive market.
Zedge's market position is intriguing, with a reported 10's of millions of active users across its platforms. The company's focus on digital marketplaces and friendly competitive games taps into the growing trend of social commerce and gamified content creation.
The overhaul of GuruShots' onboarding process and introduction of a coin-based economy could enhance user engagement and monetization. However, the success of these changes and the investment in user acquisition will be critical to watch. The company's ability to balance growth investments with profitability, especially in light of the share repurchase program, will be a key factor for investors to monitor in the coming quarters.
NEW YORK, NY / ACCESSWIRE / September 16, 2024 / Zedge, Inc. (NYSE AMERICAN:ZDGE), a leader in building digital marketplaces and friendly competitive games around content that people use to express themselves, today announced its Board of Directors approved a new share repurchase program for up to
Jonathan Reich, Zedge's CEO commented, "Our new stock repurchase program highlights our strong belief that the market is significantly undervaluing Zedge. Both the Zedge Marketplace and Emojipedia are experiencing impressive double-digit revenue growth, with an increasing, robust cash position while Zedge continues to invest in growth and buy back our stock. The addition of innovative AI features like pAInt and fresh emoji content, combined with our relentless focus on maximizing ad revenue, translates into exciting upside potential. Additionally, we're making the changes needed at GuruShots to drive growth, most recently with the on-boarding overhaul and introduction of a coin-based economy, coupled with investment in profitable user acquisition campaigns."
Purchases under the program will be made from time to time, as permitted by securities laws and through, at the Company's discretion, open market purchases, privately negotiated transactions, or other paths. The Company will determine the timing, manner, price and amount of any repurchases subject to economic and market conditions, stock price, applicable legal requirements and other factors. In furtherance of the buyback, the Company plans to enter into a "Rule 10b5-1 plan" to allow for continuous repurchases of its Class B common stock regardless of the Company's trading window restrictions.
About Zedge
Zedge builds digital marketplaces and friendly competitive games around content people use to express themselves. Our leading products include Zedge Ringtones and Wallpapers, a freemium digital content marketplace offering mobile phone wallpapers, video wallpapers, ringtones, notification sounds, and pAInt, a generative AI image creation platform; GuruShots, a skill-based photo challenge game; and Emojipedia, the #1 trusted source for ‘all things emoji'. Our vision is to enable and connect creators who enjoy friendly competitions with a community of prospective consumers in order to drive commerce. We serve 10's of millions of active users across our offerings every month. For more information, visit: investor.zedge.net
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
SOURCE: Zedge, Inc.
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