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]

Group 1 - Zedge will present at the 17th annual LD Micro Main Event on October 29th at 3 PM PT, with CEO Jonathan Reich representing the company [2] - The LD Micro Main Event XVII will take place from October 28th to 30th at the Luxe Sunset Boulevard Hotel in Los Angeles, featuring around 150 companies [3][4] - Presentations during the event will run from 8 AM PT to 5 PM PT on October 29th and 30th, with private meetings scheduled for investors [4] Group 2 - Zedge specializes in building digital marketplaces and competitive games, with products including Zedge Ringtones, Wallpapers, and a generative AI image creation platform [5] - The company serves tens of millions of active users monthly, aiming to connect creators with consumers to drive commerce [5] - LD Micro, founded in 2006, focuses on being an independent resource in the micro-cap space, providing valuable insights through its index and annual investor conferences [7]

User Engagement and Growth - As of April 30, 2024, the Zedge App had been installed nearly 661 million times and had 27.7 million monthly active users (MAU)[106] - Emojipedia received approximately 36 million monthly page views and had about 10.4 million MAU as of April 30, 2024, with 55.5% of users in developed markets[113] - MAU for the Zedge App decreased by 13.4% to 27.7 million for the three months ended April 30, 2024, compared to 32.0 million in the same period last year[121] - Emerging markets represented 78.3% of total MAU for the Zedge App, up from 77.5% a year ago[121] Product Development and Features - In fiscal 2023, Zedge introduced pAInt, a generative AI wallpaper maker, and upgraded Zedge+ to enhance user experience[107] - The company is exploring new features for Emojipedia, including a revamped onboarding process to enhance user acquisition[114] - Zedge plans to enable GuruShots players to sell their photos as Zedge Premium content, leveraging synergies between the two platforms[112] Revenue and Monetization - Zedge's marketplace monetization includes advertising revenue, in-app sales of Zedge Credits, and a subscription model for an ad-free experience[109] - The average revenue per monthly active user (ARPMAU) is a key performance indicator that helps assess monetization effectiveness[118] - ARPMAU for the Zedge App increased by 39.7% to $0.0742, driven by higher advertising prices and strong subscription revenue growth[121] - Total revenues increased by 13.9% to $7,658,000 for the three months ended April 30, 2024, compared to $6,726,000 in the same period last year[127] - Subscription revenue rose by 34.9% to $1,122,000, attributed to new iOS and Android subscription offerings[133] - Advertising revenue increased by 19.4% to $5,461,000, driven by higher prices per advertising impression[132] - Zedge Premium gross revenue increased by 44.4% to $592,000, while net revenue decreased by 12.6% to $202,000 due to write-downs of advanced royalties[130] - Subscription billings (Non-GAAP) increased by 80.3% to $1,495,000 for the three months ended April 30, 2024[130] Operational Challenges and Costs - Monthly Active Payers (MAPs) for GuruShots decreased by 20.7% to 5,408, primarily due to challenges from Apple's App Tracking Transparency framework[126] - Average Revenue Per Monthly Active Payer (ARPMAP) decreased slightly by 0.4% to $53.0[126] - For the three months ended April 30, 2024, digital goods and services revenue declined 20.3% compared to the same period in the prior year, primarily due to a 20.7% decrease in GuruShots' MAP[135] - SG&A expense increased 34.6% in the three months ended April 30, 2024, with SG&A as a percentage of revenue rising to 88.2% from 74.6% in the prior year[144] - Stock-based compensation expenses decreased 16.6% in the three months ended April 30, 2024, compared to the same period in the prior year[146] - Depreciation and amortization expenses decreased 35.0% in the three months ended April 30, 2024, primarily due to an $11.9 million impairment charge recorded in January 2024[149] Financial Performance and Position - Gross margin for the nine months ended April 30, 2024, was 44%, down from 56% in the prior year, attributed to advanced royalty write-downs[138] - Direct cost of revenues decreased 20.6% for the nine months ended April 30, 2024, as a percentage of revenue, it declined to 6.2% from 8.5% in the prior year[142] - Interest and other income, net increased by 123.8% in the three months ended April 30, 2024, primarily due to higher interest income from cash and cash equivalents[155] - Cash and cash equivalents as of April 30, 2024, were $19.9 million, with working capital of $17.1 million, compared to $18.1 million and $15.8 million, respectively, at July 31, 2023[167] - Cash provided by operating activities increased by $2.4 million to $5.1 million for the nine months ended April 30, 2024, compared to $2.7 million in the prior year[169] Tax and Impairment - Income tax benefit for the three months ended April 30, 2024, decreased by $0.6 million, primarily due to an $0.8 million increase in deferred tax assets related to an $8.7 million impairment of goodwill in the prior period[161] - For the nine months ended April 30, 2024, income tax benefit increased by $1.7 million, mainly from a $2.5 million increase in deferred tax assets related to an $11.9 million impairment loss on intangible assets[162] Segment Performance - Zedge Marketplace segment income decreased to $1.2 million for the three months ended April 30, 2024, down 35.3% from $1.9 million in the prior year, attributed to higher SG&A expenses[163] - GuruShots segment loss from operations was $1.3 million for the three months ended April 30, 2024, compared to a loss of $10.3 million in the prior year, which included an $8.7 million impairment loss of goodwill[164] - Total loss from operations for the three months ended April 30, 2024, was $132,000, a decrease of 98.4% from a loss of $8.4 million in the prior year[163] Share Repurchase and Dividends - In the nine months ended April 30, 2024, the company repurchased 60,206 shares of Class B common stock for $152,000, compared to 680,594 shares for $1.4 million in the prior year[175] - The company does not anticipate paying dividends until achieving sustainable profitability and retaining certain minimum cash reserves[176] External Factors - The ongoing geopolitical tensions, including the Israel-Hamas conflict, are being monitored for potential impacts on business operations[102]

Financial Data and Key Metrics Changes - Total revenue for Q3 2024 was $7.7 million, representing a 14% increase from the previous year [18] - Average revenue per monthly active user (ARPMAU) reached a record $0.074, up 39% year-over-year [6][20] - GAAP net income was $0.1 million, compared to a loss of $7.7 million in the prior year [22] - Non-GAAP net income increased 60% to $0.5 million, with non-GAAP diluted EPS rising 54% to $0.03 [22] Business Line Data and Key Metrics Changes - Ad revenue increased by 20% year-over-year, driven by the Zedge Marketplace [6] - Subscription revenue grew by 35% compared to last year, marking the fourth consecutive quarter of sequential growth [20] - Digital goods and services revenue, including GuruShots, decreased by 20% to $0.9 million [19] Market Data and Key Metrics Changes - Monthly Active Users (MAU) for April was reported at 27.7 million, indicating a decrease [18] - Zedge Premium's gross transaction value (GTV) reached a record $590,000, growing 45% from the previous year [20] Company Strategy and Development Direction - The company aims to build a full-stack marketing team to drive growth, focusing on influencer marketing and product marketing in fiscal 2025 [7][8] - Investments in product development are expected to lead to innovation and cost efficiencies, propelling revenue and profit growth [8] - The introduction of Generative AI tools, such as pAInt and WishCraft, is part of the strategy to enhance user engagement and content creation [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing geopolitical, macroeconomic, and industry-specific challenges but expressed optimism about sustainable long-term growth [6] - The company is focused on optimizing user acquisition and retention strategies to stabilize and grow the user base [37] - Management believes they are on the right path to accelerate revenue growth and profits, with a focus on shareholder value [18] Other Important Information - The company added nearly $2 million in cash, ending the quarter with $19.9 million in cash and cash equivalents [23] - SG&A expenses increased by 35% to $6.8 million, primarily due to higher marketing expenses [21] Q&A Session Summary Question: What was the revenue for GuruShots in the quarter? - GuruShots revenue was $0.9 million [24][25] Question: What is the plan for adding new features to GuruShots? - The focus is on improving onboarding, game economy, and progression mechanics to enhance user engagement and revenue [26][31] Question: What areas is paid marketing focused on? - Paid marketing is primarily aimed at user acquisition for both Zedge and GuruShots, with a focus on return on ad spend [36] Question: How does the company view the recent performance of Emojipedia? - Management views the performance as temporary and is implementing new initiatives to improve the platform [41]

Revenue Growth - Total revenue increased by 13.8% to $7.7 million compared to $6.7 million in Q3 FY23[4] - Subscription revenue grew by 34.9% to $1.1 million, up from $0.8 million in Q3 FY23[4] - Advertising revenue rose by 19.4% to $5.5 million, compared to $4.6 million in Q3 FY23[4] - Total revenue for FY23 was $27.2 million, a 2.6% increase from FY22's $26.5 million[14] - Advertising revenue reached $20.3 million in FY22, but decreased to $18.3 million in FY23, reflecting a decline of 9.8%[14] - Revenues for the three months ended April 30, 2024, were $7.658 billion, a 13.9% increase from $6.726 billion in the same period of 2023[23] User Engagement - Monthly Active Users (MAU) decreased by 13.4% to 27.7 million from 32.0 million in Q3 FY23[7] - Average Revenue Per Monthly Active User (ARPMAU) grew by 39.7% to $0.074 from $0.053 in Q3 FY23[7] - Monthly Active Users (MAU) decreased to 30.9 million in Q423 from 32.0 million in Q323, a decline of 3.4%[14] - Active subscriptions (in thousands) were 647 in Q423, a slight increase from 631 in Q323[14] - The company plans to introduce new features and services for Emojipedia over the next 12 months to drive user engagement and monetization growth[9] - GuruShots is undergoing a transition with a new coin-based economy aimed at improving engagement and retention[10] Financial Performance - Non-GAAP net income was $0.5 million, a 59.7% increase from $0.3 million in Q3 FY23[5] - GAAP net income for Q423 was $0.1 million, compared to a loss of $7.7 million in Q223, indicating a significant recovery[14] - Non-GAAP diluted EPS for FY23 was $0.13, up from $0.11 in FY22, representing an 18.2% increase[14] - Cash flow from operations for FY23 was $3.2 million, a decrease from $5.2 million in FY22[14] - Adjusted EBITDA for the nine months ended April 30, 2024, was $3.9 million, down from $5.7 million in the same period of 2023[27] - Non-GAAP diluted earnings per share for the latest quarter was $0.59, compared to $0.13 in the previous quarter, reflecting a significant increase[28] - The company has shown a steady performance in earnings per share, maintaining values between $0.04 and $0.06 in recent quarters[28] Cash Flow and Assets - Cash flow from operations increased by 44.5% to $2.3 million compared to $1.6 million in Q3 FY23[5] - The total assets decreased to $38.139 million as of April 30, 2024, from $46.831 million as of July 31, 2023[20] - Operating activities generated net cash of $5.155 million for the nine months ended April 30, 2024, compared to $2.743 million in the same period of 2023, indicating an increase of 88.5%[25] - Cash and cash equivalents at the end of the period were $19.925 million, up from $18.067 million at the end of the same period in 2023[25] - The company reported a net increase in cash and cash equivalents of $1.800 million for the nine months ended April 30, 2024[25] Losses and Impairments - Net loss for the nine months ended April 30, 2024, was $9.132 billion, compared to a net loss of $6.257 billion for the same period in 2023, reflecting a 45.5% increase in losses[25] - The company reported an impairment charge of intangible assets amounting to $11.958 billion for the nine months ended April 30, 2024[25] - Total comprehensive loss for the nine months ended April 30, 2024, was $9.473 billion, compared to a loss of $6.578 billion in the same period of 2023[23] Gross Transaction Value - Zedge Premium Gross Transaction Value (GTV) increased by 44.4% to $0.59 million from $0.41 million in Q3 FY23[5] - The company reported a total of 1.51 million in Gross Transaction Value (GTV) for Zedge Premium in FY23, slightly up from 1.54 million in FY22[14]

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JANUARY 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. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Exact Name of Registrant as Specified in its Charter) | Delaware | 26-3199071 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | in ...

Zedge, Inc. (NYSE:ZDGE) Q2 2024 Earnings Conference Call March 15, 2024 10:00 AM ET Company Participants Brian Siegel - Senior Managing Director, Hayden IR Jonathan Reich - Chief Executive Officer Yi Tsai - Chief Financial Officer & Treasurer Conference Call Participants Allen Klee - Maxim Group Operator Good day and welcome to Zedge's Earnings Conference Call for the Second Fiscal Quarter 2024 Results. [Operator Instructions] I will now turn the call over to your host, Brian Siegel. The floor is yours. Bri ...

Exhibit 99.1 Zedge Announces Second Quarter Fiscal 2024 Results New York, NY – March 15, 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 results for its second quarter of fiscal 2024, ended January 31, 2024. "I'm encouraged by the overall positive momentum we experienced during the second quarter as most of our businesses reported strong results," said Jonathan Reich, Zedge ...

FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, 2023 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 | (I.R.S. Employer | | in ...

Zedge, Inc. (NYSE:ZDGE) Q1 2024 Earnings Conference Call December 13, 2023 4:30 PM ET Company Participants Brian Siegel - Senior Managing Director, Hayden IR Jonathan Reich - Chief Executive Officer Yi Tsai - Chief Financial Officer and Treasurer Conference Call Participants Allen Klee - Maxim Group Operator Good afternoon and welcome to Zedge’s Earnings Conference Call for the First Fiscal Quarter 2024 Results. During management's prepared remarks, all participants will be in listen-only mode. [Operator In ...