Zedge to Join the Russell Microcap Index

Rhea-AI Summary

Zedge (NYSE AMERICAN: ZDGE), a company specializing in digital marketplaces and competitive games, announced its selection to the Russell Microcap Index, effective July 1, 2024. This announcement follows the 2024 Russell U.S. Indexes annual reconstitution. According to CEO Jonathan Reich, Zedge has recently returned to revenue growth, maintains positive cash flow, has $18.1 million in cash with no debt, and is actively repurchasing shares. The addition to the index is expected to increase investor awareness of Zedge's growth potential in generative AI and gaming. The Russell U.S. Indexes represent $10.5 trillion in assets, with the annual reconstitution ensuring accurate market representation.

Positive

• Zedge selected to join the Russell Microcap Index, effective July 1, 2024.
• Company recently returned to revenue growth.
• Maintains positive cash flow from operations.
• Holds $18.1 million in cash with no debt.
• Has an active share repurchase program.
• Potential for increased investor awareness and interest due to index inclusion.

Negative

• No new products or major business developments announced.
• Lack of specific financial performance metrics for recent quarters.
• No information provided on potential risks or challenges.

NEW YORK, NY / ACCESSWIRE / May 30, 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 that, according to a preliminary list of additions posted on Friday, May 24, 2024, it was selected to join the Russell Microcap Index at the conclusion of the 2024 Russell U.S. Indexes annual reconstitution, effective at the open of U.S. equity markets on Monday, July 1, 2024.

Jonathan Reich, CEO of Zedge commented, "With our recent return to revenue growth, continued positive cash flow from operations, the $18.1 million in cash we held at the end of our second quarter with no debt, and an active share repurchase program, I believe Zedge is a growth stock trading at value stock multiples. With the addition to the Russell Microcap Index, I now expect we can get in front of more investors to tell our exciting growth story as an under-the-radar generative AI and gaming play."

The Russell US Indexes are designed to reflect the ever-changing US equity market, and the annual reconstitution process is critical to maintaining accurate representation. During this highly anticipated market event, the breakpoints between large, mid, and small cap are redefined to ensure market changes that have occurred in the preceding year are captured. Companies are also re-evaluated to determine where they rank along the investment styles spectrum.

Reconstitution changes and the newly recalibrated indexes will take effect after the close of US equity markets on Friday, June 28, 2024; the new Russell US Indexes membership, weights and performance will be reflected from the open of US equity markets on Monday, July 1, 2024. As of December 2023, approximately $10.5 trillion in assets were benchmarked to a Russell index, and more than $134 billion traded across US exchanges at the close of 2023 reconstitution.

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 wallpaper maker; 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.

View the original press release on accesswire.com

FAQ

What is the effective date for Zedge joining the Russell Microcap Index?

Zedge will join the Russell Microcap Index on July 1, 2024.

What recent financial achievements did Zedge report?

Zedge reported a return to revenue growth, positive cash flow from operations, and holding $18.1 million in cash with no debt.

How much cash does Zedge have, and do they have any debt?

As of the end of their second quarter, Zedge holds $18.1 million in cash with no debt.

What is the significance of the Russell Microcap Index for Zedge?

Joining the Russell Microcap Index can increase Zedge's visibility among investors and potentially attract more interest in its stock.

When will the new Russell US Indexes membership take effect?

The new Russell US Indexes membership and weights will take effect from the open of US equity markets on July 1, 2024.