User Engagement and Growth - As of July 31, 2024, the Zedge App had been installed nearly 674 million times and had 26.1 million monthly active users (MAU) [358] - As of July 31, 2024, Zedge had approximately 669,000 active subscribers, following the introduction of a subscription tier in the iOS version of the app in April 2023 [361] - Emojipedia, acquired in August 2021, received approximately 37.6 million monthly page views and had about 9.6 million MAU as of July 31, 2024 [369] - As of July 31, 2024, Monthly Active Users (MAU) for the Zedge App declined by 15.5% year-over-year to 26.1 million, primarily due to attrition in both developed and emerging markets [417] - MAU in emerging markets represented 78.9% of total MAU, up from 78.0% a year prior, negatively impacting revenue due to lower advertising rates in these markets [417] Revenue Generation - Zedge generates revenue primarily from advertising, paid subscriptions, and sales of premium content, with a significant portion from advertising inventory sales [375] - GuruShots generates revenue mainly through in-app purchases of virtual goods, enhancing the gaming experience for users [383] - Advertising revenue for the Zedge Marketplace grew by 15.2% to $21.0 million, while paid subscription revenue increased by 24.7% to $4.3 million [427] - Subscription billings for the fiscal year ended July 31, 2024, rose by 62.8% to $5.7 million, reflecting strong growth in subscription offerings [430] - Zedge Premium net revenue increased by 44.8% to $1.2 million, with a gross margin of 56% for the fiscal year ended July 31, 2024 [433] Financial Performance - Total revenues for the fiscal year ended July 31, 2024, increased by 10.5% to $30.1 million compared to $27.2 million in the prior year [425] - The company reported a net loss of $9.2 million for the fiscal year ended July 31, 2024, compared to a net loss of $6.1 million in the previous year, reflecting a 50.3% increase in losses [425] - The average monthly revenue per active subscription increased by 25.0% to $0.55 for the fiscal year ended July 31, 2024 [428] - Digital Goods and Services revenue decreased by 25.2% to $3.5 million, primarily due to a 26.3% decline in Monthly Active Payers (MAPs) for GuruShots [436] Expenses and Costs - Selling, general and administrative (SG&A) expenses increased by $3.8 million, or 17.2%, to $25,625,000, with SG&A as a percentage of revenues rising to 85.2% from 80.2% [438] - Direct cost of revenues in fiscal 2024 decreased by $0.4 million, or 17.1%, to $1,859,000, resulting in a percentage of revenue decline to 6.2% from 8.2% in fiscal 2023 [437] - Stock-based compensation expense decreased by $0.4 million, or 15.0%, to $2,141,000, primarily due to lower compensation related to deferred stock unit grants [442] - Depreciation and amortization expense decreased by $0.8 million, or 24.9%, to $2,454,000, as a percentage of revenues declined to 8.2% from 12.0% [444] Impairment and Charges - The company recorded a non-cash goodwill impairment charge of $8.7 million during the third quarter of fiscal 2023 due to the carrying value exceeding fair value [399] - The company recognized $11.9 million in impairment charges in Q2 of the fiscal year ended July 31, 2024, related to intangible assets [394] - The company recorded a full impairment charge of $11.9 million for intangible assets related to the GuruShots segment in Q2 of fiscal 2024 [445] Cash Flow and Liquidity - Cash and cash equivalents as of July 31, 2024, were approximately $20.0 million, with working capital of $17.7 million [459] - Cash flow from operating activities increased by $2.7 million to $5,850,000 in fiscal 2024 from $3,162,000 in fiscal 2023 [461] - The Company entered into an Amended Loan Agreement with Western Alliance Bank, providing a new term loan facility of $7,000,000 and a revolving credit facility of $4,000,000 [465] Strategic Initiatives - Zedge plans to leverage synergies between Zedge and GuruShots, enabling GuruShots players to sell their photos on the Zedge platform [368] - The Company committed to a retention pool of $4 million in cash related to the acquisition of GuruShots, payable over three years [475] Market and Economic Factors - Advertising spend accounts for approximately 70% of the company's revenue in fiscal 2024, influenced by global macroeconomic factors and the ongoing Israel-Hamas war [413] - The company is exposed to foreign exchange fluctuations and macroeconomic uncertainties that could impact operations and financial performance [413] Internal Controls and Governance - The Company assessed its internal control over financial reporting as effective as of July 31, 2024 [485] - The Company has no plans to pay dividends until achieving sustainable profitability and maintaining minimum cash reserves [472]

Zedge, Inc. (NYSE:ZDGE) Q4 2024 Earnings Conference Call October 29, 2024 11:00 AM ET Company Participants Brian Siegel - Investor Relations Jonathan Reich - Chief Executive Officer Yi Tsai - Chief Financial Officer and Treasurer Conference Call Participants Derek Greenberg - Maxim Group Allen Klee - Maxim Group Operator Good day and welcome to the Zedge Earnings Conference Call for the Fourth Quarter and End of Year Fiscal 2024 Results. During management's prepared remarks, all participants will be in a li ...

Exhibit 99.1 Zedge Announces Fourth Quarter and Full Year Fiscal 2024 Results Fourth quarter total revenue growth of 14% Fourth quarter Zedge Marketplace subscription revenue grew 31% Fourth quarter Zedge Marketplace ARPMAU increased 43% New York, NY – October 29, 2024: Zedge, Inc. (NYSE AMERICAN: 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 fourth quarter and full ...

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 ...