Zedge Announces Revenue and Operating Income for the Fourth Quarter and Fiscal Year 2021; Delays Release of Fourth Quarter and Full-year Complete Earnings Results and Call

Rhea-AI Summary

Zedge, Inc. (NYSE American: ZDGE) reported significant growth for the fiscal year and fourth quarter ending July 31, 2021. Revenue surged by 106.6% to $19.6 million while operating income reached $7.8 million, up from a loss of ($0.4) million in the previous year. For the fourth quarter, revenue was $5.2 million, a 93.0% increase year-over-year. Active subscriptions grew by 49.2% and subscription revenue by 100.8%. The company plans to finalize a partial release of a valuation allowance on its deferred tax asset.

Positive

• Revenue increased 106.6% to $19.6 million for fiscal 2021.
• Operating income for fiscal 2021 was $7.8 million, reversing a loss from the prior year.
• Fourth quarter revenue rose 93.0% to $5.2 million.
• Active subscriptions grew 49.2% and subscription revenue increased 100.8% for the full year.

Negative

• None.

NEW YORK, NY / ACCESSWIRE / October 27, 2021 / Zedge, Inc. (NYSE American:ZDGE), a global app publisher with a portfolio of leading digital consumer brands serving 43 million monthly active users in October 2021, today announced revenue and operating income for both its fourth quarter and fiscal year 2021 ended July 31, 2021.

The Company is working to finalize the partial release (in an expected amount of approximately $0.5 million or $0.03 per share) of the valuation allowance on the Company's deferred tax asset. The Company expects to resolve the issue and proceed with its earnings release and host a conference call to discuss its full fiscal fourth quarter and full-year 2021 results within a week. In the interim, the Company is releasing the following:

Fiscal FourthQuarter Highlights (Fiscal 2021 versus Fiscal 2020)

• Revenue increased 93.0% to$5.2 million versus $2.7 million;
• Active subscriptions¹ and subscription revenue increased 49.2% and 55.0%, respectively;
• Operating income and operating marginof $2.2 millionand 42.2% versus$0.4 million and 14.4%, respectively;
• MAU increased by 7.8%;
• Zedge Premium Gross Transaction Value¹ (GTV) of $0.3 million an increase of 45.0%.

Full-Year Fiscal 2021 Highlights (versus Fiscal 2020)

• Revenue increased 106.6% to$19.6 million versus $9.5 million;
• Active subscriptions and subscription revenue increased 49.2% and 100.8%, respectively;
• Operating income and operating marginof $7.8 millionand 39.9% versus an operating loss of($0.4) million and (4.2)%, respectively;
• Zedge Premium GTV of $0.95 million an increase of 29.8% versus last year.

¹We use the following business metrics in this release because we believe they are useful in evaluating Zedge as an investment.

• Monthly activeusers, or MAU, captures the numberof unique users that used our Zedge app duringthe 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 the Zedge Premium Marketplace. As Zedge Premium is an internal focus for growth, we believe that this metric will help investors evaluate the progress we are making in growing this part of our business;
• The term Active Subscriptions is replacing "paid subscriptions" due to changes made by Google Play with respect to how they calculate subscriptions. An active subscription is a subscription that has commenced and not been canceled, including paused subscriptions, and subscriptions in free trials,grace periods, or accounthold.

About Zedge

Zedge owns a portfolio of leading digital consumer brands that serve 43 million monthly active users in October 2021 across the globe. Our portfolio consists of Zedge Ringtones and Wallpapers, the leading mobile app used for mobile phone personalization, social content, and fandom art; Zedge Premium, a marketplace for artists, celebrities, and emerging creators to market their digital content, to Zedge's users; Emojipedia, the leading source of all things emoji; and Shortz, a mobile entertainment app in beta, focused on short-form storytelling. Zedge monetizes its content through ad-supported offerings, tokens, and subscriptions. For more information, visit https://www.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 currentjudgment 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 Managing Director
Hayden IR
(346) 396-8696
ir@zedge.net

SOURCE: Zedge, Inc.

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FAQ

What were Zedge's revenue figures for fiscal year 2021?

Zedge reported revenue of $19.6 million for fiscal year 2021, a 106.6% increase from the previous year.

How did Zedge's operating income perform in fiscal 2021?

Zedge's operating income for fiscal 2021 was $7.8 million, a significant improvement from an operating loss of $0.4 million in fiscal 2020.

What was Zedge's revenue for the fourth quarter of fiscal 2021?

The fourth quarter revenue for Zedge was $5.2 million, marking a 93.0% increase year-over-year.

What growth did Zedge report in active subscriptions for 2021?

Zedge reported a 49.2% increase in active subscriptions for fiscal year 2021.

When will Zedge release its complete earnings report?

Zedge plans to finalize its earnings release and host a conference call to discuss full fiscal results within a week of the announcement.