User Engagement and Metrics - As of April 30, 2025, the Zedge App had been installed nearly 707 million times and had 22.1 million monthly active users (MAU), a decrease of 20.2% compared to the same period last year[100][117]. - Zedge App's Monthly Active Users (MAU) decreased by 20.2% to 22.1 million in Q2 2025 from 27.7 million in Q2 2024[119]. - Approximately 896,000 active subscribers were reported as of April 30, 2025, following the introduction of a subscription tier in the iOS version of the app[103]. - Emojipedia received approximately 46.3 million monthly page views and had about 10.9 million MAU as of April 30, 2025, with 49.7% of users located in well-developed markets[111]. Revenue and Financial Performance - Average Revenue Per Monthly Active User (ARPMAU) for the three months ended April 30, 2025, increased by 32.7% year-over-year, driven by higher advertising prices and strong subscription revenue growth[118]. - Total revenues for Q2 2025 were $7,757, a slight increase of 1.3% compared to $7,658 in Q2 2024[130]. - Subscription revenue for the three months ended April 30, 2025, increased by 13.4%, while subscription billings rose by 22.9% compared to the same period last year[118]. - Subscription revenue increased by 13.4% to $1,272 in Q2 2025 from $1,122 in Q2 2024, driven by new subscription offerings[134]. - Other revenues surged by 109.2% to $431 in Q2 2025 from $206 in Q2 2024, primarily due to increased Zedge Premium net revenue[135]. - Zedge Premium net revenue increased by 112.9% to $430 in Q2 2025 from $202 in Q2 2024, attributed to AI generative features[132]. - For the nine months ended April 30, 2025, subscription billings increased by 33.4% compared to the same period in the prior year[138]. Operational Challenges and Restructuring - The acquisition of GuruShots has faced challenges, leading to a restructuring plan aimed at achieving breakeven and revamping the offering to attract new users[108]. - Monthly Active Payers (MAP) for GuruShots decreased by 33.8% to 3,578 in Q2 2025 from 5,408 in Q2 2024[126]. - Average Revenue Per Monthly Active Payer (ARPMAP) for GuruShots decreased by 17.1% to $44.1 in Q2 2025 from $53.2 in Q2 2024[126]. - For the nine months ended April 30, 2025, income from operations related to the Zedge Marketplace decreased by 50.6% to $2.2 million from $4.5 million in the prior year, primarily due to higher user acquisition costs and restructuring charges[170]. - For the nine months ended April 30, 2025, the loss from operations related to GuruShots decreased by 70.8% to $4.8 million from $16.3 million in the prior year, mainly due to the prior period's impairment loss of $11.9 million on intangible assets[171]. Expenses and Cost Management - Selling, general and administrative (SG&A) expenses decreased by 6.1% to $6,343,000 in Q3 2025 compared to Q3 2024, with SG&A as a percentage of revenues at 81.8% compared to 88.2%[145][146]. - SG&A expenses increased by 8.0% to $20,278,000 in the nine months ended April 30, 2025, with SG&A as a percentage of revenues rising to 92.5% from 83.4%[147]. - Stock-based compensation expenses decreased by 11.7% to $603,000 in Q3 2025 compared to Q3 2024, and by 21.8% to $1,308,000 in the nine months ended April 30, 2025 compared to the same period in the prior year[149][150]. - Depreciation and amortization expenses decreased by 61.4% to $583,000 in Q3 2025 compared to Q3 2024, and by 56.4% to $924,000 in the nine months ended April 30, 2025[153][154]. Cash Flow and Financial Position - As of April 30, 2025, the company had cash and cash equivalents of $20.4 million and working capital of $17.5 million, compared to $20.0 million and $17.7 million, respectively, at July 31, 2024[172]. - Net cash provided by operating activities for the nine months ended April 30, 2025, was $2.7 million, a decrease from $5.2 million in the prior year, primarily due to a net loss of $1.8 million adjusted for non-cash items[175][176]. - In the nine months ended April 30, 2025, the company repurchased 683,506 shares of Class B common stock for approximately $2.0 million, compared to 60,206 shares for approximately $152,000 in the prior period[179]. - The company does not anticipate paying dividends on common stock until achieving sustainable profitability and retaining minimum cash reserves[181]. - One major customer represented 35% of revenue for the nine months ended April 30, 2025, compared to two customers representing 31% and 10% in the prior year[183]. - Cash used in investing activities for the nine months ended April 30, 2025, was primarily for capitalized software and technology development costs[177]. External Factors and Risks - The majority of users and employees are located outside the U.S., exposing the company to foreign exchange fluctuations and macroeconomic uncertainties[96]. - The ongoing geopolitical conflicts, particularly in Israel, have raised concerns about potential business disruptions and implications for the company's operations[97]. - Interest and other income, net decreased by 18.1% to $154,000 in Q3 2025 compared to Q3 2024, while it increased by 16.8% to $507,000 in the nine months ended April 30, 2025[158][159]. - The net loss resulting from foreign exchange transactions was $41,000 in Q3 2025, a decrease from a loss of $80,000 in Q3 2024, and for the nine months ended April 30, 2025, the loss was $223,000 compared to $141,000 in the prior year[161][162]. - Income tax expense was $88,000 in Q3 2025 compared to an income tax benefit of $137,000 in Q3 2024, resulting from a pre-tax income of $273,000 in the current year period[166].

Financial Data and Key Metrics Changes - Total revenue returned to growth, up 1.3% to $7,800,000, despite challenges in the advertising market [15][19] - Adjusted EBITDA increased 46% year over year to $1,200,000 [19] - Free cash flow generated was $800,000, impacted by restructuring payments and retention bonuses [6][19] - GAAP net income was $200,000, compared to $100,000 in the prior year, with non-GAAP net income at $900,000, up from $500,000 [18][19] Business Line Data and Key Metrics Changes - Zedge Plus subscriber base grew to nearly 900,000, a 37% year over year increase [7] - Zedge Premium revenue more than doubled, driven by expanded offerings and increased usage [7][16] - Deferred revenue reached $4,900,000, growing by 111% over the past seven quarters [15][19] - Gurushots revenue declined 45% year over year due to reduced user acquisition spending [16][19] Market Data and Key Metrics Changes - Monthly active users (MAU) declined year over year, but the focus shifted to attracting higher lifetime value users [8][31] - Average revenue per monthly active user increased by 33% year over year, indicating improved monetization [8][16] Company Strategy and Development Direction - The company is focusing on AI innovation, creator community empowerment, and B2B expansion through dataseeds.ai [13][14] - Plans to roll out an AI audio generator and enhance user-generated content capabilities [11][41] - The introduction of dataseeds.ai aims to supply enterprise customers with high-quality datasets for AI training [10][38] Management's Comments on Operating Environment and Future Outlook - Management highlighted resilience despite macroeconomic volatility and disruptions in the ad market [5][15] - The company expects to see the benefits of restructuring initiatives materialize in Q4 and into fiscal year 2026 [19][44] - Management remains optimistic about future growth driven by product innovation and strategic discipline [15][47] Other Important Information - The company ended the quarter with $20,400,000 in cash and no debt, after share repurchases [6][19] - Restructuring charges of $600,000 were recorded, with expectations for further reductions in Q4 [17][50] Q&A Session Summary Question: Can you rank the different pieces of advertising revenue? - Management stated that advertising efforts are comprehensive and difficult to rank precisely, but highlighted the optimization of CPMs [22][30] Question: How long was TikTok back in the market during the quarter? - Management clarified that TikTok returned mid-February, impacting advertising revenue positively after their reentry [24][29] Question: What is being done to stabilize and grow monthly active users? - The focus is on well-developed markets, with efforts to optimize user acquisition for high-value users [31][32] Question: Can you comment on the new features for Emojipedia? - Management mentioned testing new features like creating emojis with AI and the upcoming release of digital stickers [33] Question: How did Zedge Premium perform this quarter? - Zedge Premium continues to be a core part of the marketplace, with new content available on the web [36] Question: What is the rollout plan for dataseeds.ai? - Management is actively building relationships with prospective customers and has published a research paper to demonstrate advantages [37][38] Question: What will the AI audio generator look like? - The feature will allow users to create custom ringtones and sounds based on text prompts, with a limited rollout planned [41][42]

Financial Data and Key Metrics Changes - Total revenue returned to growth in Q3, up 1.3% to $7,800,000, despite challenges in the advertising market [14][15] - Adjusted EBITDA increased 46% year over year to $1,200,000, with GAAP net income of $200,000 compared to a loss of $100,000 last year [17][18] - Free cash flow was $800,000 for the quarter, impacted by restructuring and retention bonus payments totaling approximately $1,000,000 [6][17] Business Line Data and Key Metrics Changes - Zedge Plus subscriber base grew to nearly 900,000, a 37% year over year increase, with subscription revenue up 13% [7][14] - Deferred revenue reached $4,900,000, growing by 111% over the past seven quarters, indicating a strong recurring revenue stream [14][15] - Zedge Premium revenue more than doubled, driven by expanded offerings and increased usage of the paint.ai image generator [7][15] Market Data and Key Metrics Changes - Monthly active users (MAU) declined year over year, but the focus has shifted to attracting higher lifetime value (LTV) users in developed markets [8][30] - Average revenue per monthly active user increased by 33% year over year, reflecting improved monetization strategies [8][15] Company Strategy and Development Direction - The company is focusing on AI innovation, creator community empowerment, and B2B expansion through initiatives like dataseeds.ai, a B2B content marketplace [10][13] - Plans to roll out an AI audio generator as part of the Paint GenAI creation suite, enhancing user-generated content capabilities [11][40] - The company aims to stabilize and grow its user base by prioritizing high-value users in well-developed markets [30][31] Management's Comments on Operating Environment and Future Outlook - Management noted the resilience of the business despite macroeconomic volatility and challenges in the advertising market [5][6] - The restructuring efforts are expected to yield significant cash flow improvements in the upcoming quarters, with a focus on sustaining growth and higher margins [18][46] - Management expressed confidence in the performance marketing efforts and product roadmap to achieve growth targets [9][13] Other Important Information - The company ended the quarter with $20,400,000 in cash and no debt, even after share repurchases [6][18] - The introduction of new features like digital stickers and the Mojipedia sandbox is aimed at enhancing user engagement [11][32] Q&A Session Summary Question: How would you rank the different pieces of advertising revenue? - Management indicated that advertising is a comprehensive effort, making it difficult to rank specific components [20][21] Question: How long was TikTok back in the market during the quarter? - Management clarified that TikTok returned mid-February, impacting advertising revenue for part of the quarter [22][23] Question: Should we expect monthly active users to continue declining? - Management is focused on stabilizing MAU by prioritizing high-value users in developed markets [30][31] Question: Can you comment on the new features in Mojipedia? - Management mentioned testing new features like creating emojis with AI and the upcoming release of digital stickers [32][33] Question: How is Zedge Premium performing? - Management noted that Zedge Premium continues to be a core part of the marketplace, with new artist onboarding and web availability driving growth [34][35] Question: What is the rollout plan for dataseeds.ai? - Management is actively building relationships with prospective customers and has published a research paper to demonstrate the advantages of their dataset [36][37] Question: What will the AI audio generator look like? - Management plans to roll out the AI audio generator on a limited basis before June, allowing users to create custom ringtones [40][41]

Revenue Growth - Active subscribers increased by 37% to nearly 900,000, while subscription revenue rose by 13% to $1.3 million[5] - Total revenue for Q3 fiscal 2025 was $7.8 million, a 1.3% increase compared to $7.7 million in Q3 fiscal 2024[17] - Total revenue for FY23 was $27.2 million, with a projected increase to $30.1 million in FY24, representing a growth of approximately 10.7%[20] - Advertising revenue reached $18.3 million in FY23, expected to grow to $21.0 million in FY24, indicating a year-over-year increase of about 14.8%[20] - Total revenues for the three months ended April 30, 2025, were $7,757,000, a slight increase from $7,658,000 in the same period of 2024[29] Profitability Metrics - GAAP net income improved by 63.7% to $0.2 million, with GAAP diluted EPS increasing by 70.8% to $0.01[17] - Non-GAAP net income increased by 81.5% to $0.9 million, with non-GAAP diluted EPS rising by 89.4% to $0.06[17] - Non-GAAP Net Income for FY23 was $1.9 million, projected to decrease to $1.8 million in FY24, indicating a decline of about 5.3%[21] - Net Income for Q223 was $1.6 million, while Q323 reported a loss of $7.7 million[34] Cash Flow and Free Cash Flow - Free cash flow for the quarter was $0.8 million, despite restructuring payments of approximately $1.0 million[3] - Free Cash Flow (FCF) for FY23 was $1.7 million, with an anticipated increase to $4.7 million in FY24, representing a growth of approximately 176.5%[20] - Cash Flow from Operations in Q423 reached $2.3 million, contributing to a total of $3.2 million for FY23[34] - The company expects Free Cash Flow to reach $4.7 million in FY24 and $2.4 million in FY25[34] User Engagement - Monthly Active Users (MAU) peaked at 32.2 million in Q223, with a slight decline to 30.9 million in Q423, reflecting a decrease of approximately 4.0%[20] - Active subscriptions increased from 631,000 in Q323 to 647,000 in Q423, marking a growth of about 2.5%[20] - Average Revenue Per Monthly Active User (ARPMAU) improved from $0.052 in Q223 to $0.063 in Q124, an increase of approximately 21.2%[20] Shareholder Actions - The company repurchased approximately 220,000 shares for roughly $536,000, leaving $3.8 million of the $5 million authorization available[3] - The company repurchased shares totaling $0.75 million in FY23, with a plan to continue share repurchases in FY24[20] Asset and Liability Management - Cash and cash equivalents increased to $20,433,000 as of April 30, 2025, compared to $19,998,000 at the end of July 31, 2024[28] - Total current liabilities rose to $7,290,000 as of April 30, 2025, up from $6,250,000 at July 31, 2024, primarily due to an increase in deferred revenues[28] - Total assets decreased to $37,831,000 as of April 30, 2025, from $38,195,000 at July 31, 2024[28] New Initiatives - The company launched DataSeeds.AI, a new content marketplace for AI training sets, creating new B2B revenue opportunities[7] Impairments and Expenses - The company recorded an impairment charge of $827,000 related to capitalized software and technology development costs during the nine months ended April 30, 2025[31] - Stock-based compensation expenses for the nine months ended April 30, 2025, were $1,308,000, down from $1,673,000 in the same period of 2024[31] - The company reported stock-based compensation of $0.8 million in Q223, totaling $2.5 million for FY23[34] Adjusted Metrics - Adjusted EBITDA increased by 46.0% to $1.2 million compared to $0.9 million in the previous year[17] - Adjusted EBITDA for Q423 was $1.6 million, with a year-to-date total of $5.7 million for FY23[34]

User Engagement and Growth - As of January 31, 2025, the Zedge App had been installed nearly 696 million times and had 24.7 million monthly active users (MAU), a decrease of 14.2% compared to the same period last year[100][118] - Users in emerging markets represented about 77.3% of MAU as of January 31, 2025, slightly down from 78.1% in the same period last year[118] - MAU for the Zedge App decreased by 14.2% to 24.7 million in Q1 2025 from 28.8 million in Q1 2024[120] Revenue Performance - Average Revenue Per Monthly Active User (ARPMAU) for the three months ended January 31, 2025, increased by 8.7% year-over-year, driven by higher advertising prices and strong subscription revenue growth[119] - Subscription revenue for the three months ended January 31, 2025, increased by 13.3% year-over-year, while subscription billings rose by 26.7% in the same period[119] - Total revenues decreased by 10.2% to $6,979,000 in Q1 2025 from $7,771,000 in Q1 2024[127] - Advertising revenue decreased by 14.3% to $4,698,000 in Q1 2025 from $5,482,000 in Q1 2024[128] - Subscription revenue increased by 13.3% to $1,233,000 in Q1 2025 from $1,088,000 in Q1 2024[130] - Other revenues increased by 53.2% to $432,000 in Q1 2025 from $282,000 in Q1 2024[130] - Zedge Premium net revenue increased by 55.6% to $431,000 in Q1 2025 from $277,000 in Q1 2024[131] User Acquisition and Engagement Strategies - The acquisition of GuruShots in April 2022 has faced challenges, with revenue declining, prompting the company to cut costs and restructure its user acquisition strategy[104][108] - GuruShots has introduced a revamped onboarding experience, resulting in improved engagement, retention, and revenue from new users[107] - The company is exploring new features for Emojipedia, including artificial intelligence enhancements, expected to be released by the end of the calendar year[112] Financial Metrics and Losses - Monthly Active Payers (MAPs) decreased by 22.2% to 4,672 in Q1 2025 from 6,009 in Q1 2024[124] - Average Revenue Per Monthly Active Payer (ARPMAP) decreased by 21.0% to $39.8 in Q1 2025 from $50.4 in Q1 2024[124] - Net loss decreased by 81.8% to $1,679,000 in Q1 2025 from $9,230,000 in Q1 2024[127] - For the six months ended January 31, 2025, income from operations related to the Zedge Marketplace decreased to $976,000 from $3.3 million, a decline of 70.7%[165] - For the three months ended January 31, 2025, loss from operations related to GuruShots decreased to $2.3 million from $13.6 million, primarily due to a prior period impairment loss of $11.9 million[163] - Total segment income (loss) from operations for the three months ended January 31, 2025, was a loss of $2.2 million, representing an 81.4% decrease compared to the prior year[162] Cost Management and Restructuring - The company recorded approximately $0.5 million in restructuring charges for the three and six months ended January 31, 2025, related to global restructuring implemented in January 2025[152] - Global headcount as of January 31, 2025, totaled 106, reflecting a 22% reduction due to corporate restructuring[145] - SG&A expenses increased 9.2% to $7,126,000 in Q1 2025 and 15.9% to $13,935,000 for the six months ended January 31, 2025, primarily due to higher PUA and compensation expenses[143][144] - Stock-based compensation expenses decreased 11.7% to $603,000 in Q1 2025 and 17.5% to $982,000 for the six months ended January 31, 2025[146][147] - Depreciation and amortization expenses decreased 58.4% to $317,000 in Q1 2025 and 54.6% to $698,000 for the six months ended January 31, 2025, primarily due to an $11.9 million impairment charge recorded in Q2 of fiscal 2024[149][150] Cash Flow and Capital Management - Cash and cash equivalents as of January 31, 2025, were $20.0 million, unchanged from July 31, 2024, while working capital decreased to $16.8 million from $17.7 million[168] - Cash provided by operating activities decreased by $934,000 to $1.9 million for the six months ended January 31, 2025, compared to $2.8 million in the prior year[170] - In the six months ended January 31, 2025, the company repurchased 464,419 shares of Class B common stock for approximately $1.5 million[175] Tax and Foreign Exchange - The benefit from income taxes decreased by $2.0 million in Q1 2025 compared to the same period in the prior year, resulting from changes in deferred tax assets related to impairment losses[160] - Net loss from foreign exchange transactions was $86,000 in Q1 2025, compared to a net gain of $76,000 in Q1 2024, primarily due to unfavorable FX movements[157] Customer Concentration - One major customer represented 31% of total revenue for the six months ended January 31, 2025, compared to two customers representing 29% and 11% in the prior year[177]

Revenue Performance - Zedge reported a 10.2% year-over-year revenue decline to $7.0 million, primarily due to uncertainty surrounding TikTok's U.S. ad spend[10]. - Total revenue for Q1 2025 was $6.979 million, a decrease from $7.771 million in Q1 2024, representing a decline of approximately 10.2% year-over-year[26]. - Advertising revenue for Q1 2025 was $4.9 million, down from $5.5 million in Q1 2024, indicating a decrease of about 10.9%[18]. - The company anticipates total revenue for FY24 to be approximately $30.1 million, reflecting a growth target of about 10.7% compared to FY23[18]. Subscriber and User Engagement - Active subscribers for Zedge Marketplace increased by 22% to 791,000, while subscription revenue grew by 13% to $1.2 million[13]. - Monthly Active Users (MAU) decreased by 14% to 24.7 million, reflecting challenges in user engagement[13]. - Active subscriptions increased to 791,000 in Q1 2025, up from 648,000 in Q1 2024, reflecting a growth of about 22.1% year-over-year[18]. Financial Metrics - Free cash flow for the quarter was $0.6 million, a decrease of 50% compared to the previous year[10]. - Cash flow from operations for Q1 2025 was $1.3 million, compared to $1.6 million in Q1 2024, a decrease of approximately 18.8%[18]. - The company reported a free cash flow of $0.8 million for Q1 2025, down from $1.2 million in Q1 2024, a decline of about 33.3%[18]. - Free Cash Flow for the first half of FY25 was $1.6 billion, with a trailing twelve months (TTM) Free Cash Flow yield of 41.7%[34]. - Zedge's trailing twelve-month free cash flow yield is above 41%, making it an attractive value stock for aggressive share repurchases[8]. Profitability and Loss - Adjusted EBITDA for the quarter was ($0.1) million, a significant decline from $1.5 million in the previous year[10]. - GAAP net loss for Q1 2025 was $1.679 million, compared to a net loss of $9.230 million in Q1 2024, showing an improvement of approximately 81.8%[26]. - Net loss for the six months ended January 31, 2025, was $2.018 billion, a decrease from $9.246 billion in the same period of 2024[28]. - Adjusted EBITDA for the first half of FY25 was $0.2 billion, compared to $4.7 billion for FY24[31]. Restructuring and Cost Management - Zedge's restructuring efforts are expected to save approximately $4 million annually, enhancing profitability and free cash flow[3]. - Stock-based compensation expenses amounted to $982 million for the six months ended January 31, 2025, down from $1.190 billion in the prior year[28]. - Impairment charges for capitalized software and technology development costs were $827 million, with no such charges in the previous year[28]. Assets and Liabilities - Total assets as of January 31, 2025, were $37.092 million, a slight decrease from $38.195 million as of July 31, 2024[25]. - Total liabilities increased to $8.887 million as of January 31, 2025, compared to $7.299 million as of July 31, 2024, representing an increase of approximately 21.8%[25]. - Deferred revenue increased significantly to $1.234 billion from $53 million year-over-year[28]. - The company reported a significant reduction in trade accounts receivable, which stood at $416 million compared to a negative $480 million in the previous year[28]. Future Plans - The company plans to introduce new AI creation features in the Zedge Marketplace and Emojipedia to drive user engagement and growth in fiscal 2026[7].

Core Insights - Zedge has announced a restructuring of its subsidiary GuruShots aimed at improving profitability and positioning for long-term growth [1] Group 1: Company Restructuring - The restructuring of GuruShots is intended to streamline operations and enhance financial performance [1] - Zedge aims to leverage this restructuring to better align with market demands and improve overall efficiency [1] Group 2: Financial Performance - The company is focusing on profitability improvements as a key objective of the restructuring [1] - Long-term growth strategies are being prioritized to ensure sustainable financial health [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-37782 ZEDGE, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 26-3199071 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $7.2 million, up 1.6% year-over-year, primarily impacted by advertising challenges and the transition at GuruShots [24] - Subscription revenue increased by 21% year-over-year, with net active subscriber counts up nearly 8% year-over-year [24] - Adjusted EBITDA for the quarter was $0.3 million compared to $1.5 million in the prior year [29] Business Line Data and Key Metrics Changes - Zedge Premium's gross transaction value (GTV) reached approximately $700,000, a 62% increase year-over-year [25] - Average Revenue Per Monthly Active User (ARPMAU) grew 22% year-over-year to $0.077 [25] - GuruShots experienced a 32% decline in revenue year-over-year, attributed to a strategic shift towards new player acquisition [26] Market Data and Key Metrics Changes - iOS revenue grew over 60% year-over-year, indicating significant potential for further growth in this segment [9] - Advertising revenue faced challenges due to a coding issue, delays with ad-partner testing, and integration complexities, but management remains optimistic about recovery [9][42] Company Strategy and Development Direction - The company is focused on leveraging generative AI to transform users into creators and drive growth across all business units [16] - Plans to enhance technology development infrastructure for faster and more efficient app development are underway [17] - The marketing team is prioritizing ROAS-positive user acquisition, particularly in developed economies [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver strong results despite challenges faced in Q1 [7] - The company is optimistic about the growth trajectory of GuruShots, with early positive returns from new feature releases [39] - Management aims to return to EBITDA positive territory for the remainder of the fiscal year [47] Other Important Information - The board authorized a new $5 million share repurchase program, with over $20 million in cash and cash equivalents on the balance sheet [22][29] - The company is committed to smart capital allocation and has completed its previous buyback program [29] Q&A Session Summary Question: Current monthly active payers for GuruShots - Management did not disclose the current number but indicated they would follow up offline [36] Question: Impact of GuruShots on overall results and cash flow positivity - Management believes there is no rationale to shut down GuruShots and is optimistic about its transformation and future revenue growth [38][40] Question: Quantifying the impact of coding issues on results - Management acknowledged the issues but stated they have been resolved and are not expected to impact future performance [42][45] Question: Managing SG&A to remain EBITDA positive - Management confirmed their commitment to managing SG&A expenses to achieve EBITDA positivity [46][48] Question: Updates on WishCraft and AI Art Master - Management decided to keep these projects in beta for further testing before full production [51][52] Question: Insights on subscription growth and lifetime subscriptions - Management explained the benefits of lifetime subscriptions and their strategy for user acquisition and revenue generation [58] Question: Trends in monthly active users and strategies for improvement - Management highlighted a focus on acquiring high-value users and enhancing product features to drive engagement [60][62] Question: Stock buyback activity during the quarter - Management confirmed no stock was bought back during the quarter due to being in a closed period [64] Question: Outlook for revenue growth in the next quarter - Management expressed confidence in revenue growth for Q2, driven by advertising and subscription revenue [67] Question: Factors influencing advertising rates for monthly active users - Management discussed the importance of a strong economy and ongoing optimization of ad inventory to maintain advertising rates [70] Question: Attributing the 62% increase in Zedge Premium GTV - Management attributed the growth to an attractive platform for artists and ongoing optimization efforts [72]

Exhibit 99.1 Zedge Announces First Quarter Fiscal 2025 Results Zedge Marketplace subscription revenue increased 21% Zedge Marketplace ARPMAU increased 22% Zedge Premium GTVincreased 62% New York, NY – December 16, 2024: Zedge, Inc. (NYSE AMERICAN: ZDGE), $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 first quarter fiscal 2025, ended October 31, 2024. Jonathan Reich, Z ...