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]

User Engagement and Product Development - As of January 31, 2024, the Zedge App has been installed nearly 648 million times and had 28.8 million monthly active users (MAU)[102]. - In fiscal 2023, Zedge introduced pAInt, a generative AI wallpaper maker, and upgraded Zedge+ to enhance user experience[103]. - As of January 31, 2024, Zedge had approximately 648,000 active subscribers, following the introduction of a subscription tier in the iOS version of the app[105]. - GuruShots, acquired in April 2022, engages approximately 30-40 million amateur photographers monthly and hosts over 300 competitions, resulting in 700,000 uploaded photographs and 3.5 billion perceived votes each month[108]. - Emojipedia, acquired in August 2021, received approximately 32 million monthly page views and had 8.7 million MAU as of January 31, 2024[111]. - Zedge plans to enable GuruShots players to sell their photos as Zedge Premium artists, leveraging synergies between the two platforms[110]. - The company is developing a new mobile game, AI Art Master, currently in soft-launch, aimed at enhancing user engagement and retention[110]. - MAU for Zedge App decreased by 10.6% to 28.8 million compared to 32.2 million a year ago, with emerging markets representing 78.1% of total MAU[117][118]. Financial Performance - Total revenue for the three months ended January 31, 2024, increased by 11.3% to $7,771,000 compared to $6,983,000 in the prior year[124][125]. - Advertising revenue for Zedge increased by 18.4% to $5,482,000, attributed to a recovery in advertising prices[128]. - Subscription revenue increased by 24.3% to $1,088,000, driven by new iOS and Android subscription offerings[129]. - Subscription billings (Non-GAAP) increased by 78.0% to $1,477,000 compared to $830,000 in the same period last year[126]. - Zedge Premium gross revenue increased by 22.6% to $537,000, while net revenue increased by 21.0% to $277,000[126]. - For the three months ended January 31, 2024, other revenue increased by 22.6% year-over-year, driven by a 22.6% increase in Gross Transaction Value (GTV) on the Zedge Premium platform[130]. - Digital goods and services revenue declined by 26.4% year-over-year, primarily due to a 24.3% decrease in GuruShots' Monthly Active Users (MAP)[131]. - Advertising revenue increased by 14.3% for the six months ended January 31, 2024, attributed to a recovery in the price per advertising impression[132]. - Subscription revenue rose by 16.9% for the six months ended January 31, 2024, supported by new iOS subscription offerings and lifetime subscriptions for Android users, leading to a 57.6% increase in subscription billings[133]. Operational Efficiency - Direct cost of revenues decreased by 27.5% to $458,000, contributing to improved operational efficiency[124]. - Gross margin decreased to 50% for the six months ended January 31, 2024, down from 55% in the prior year, mainly due to lower breakage revenue[134]. - Direct cost of revenues decreased by 27.5% in the three months ended January 31, 2024, as a percentage of revenue, it declined to 5.9% from 9.1% year-over-year[137]. - Selling, general and administrative (SG&A) expenses increased by 11.1% in the three months ended January 31, 2024, with SG&A as a percentage of revenue at 83.9% compared to 84.1% in the prior year[140]. - Stock-based compensation expenses decreased by 13.3% in the three months ended January 31, 2024, primarily due to lower compensation expenses related to DSU grants[142]. Impairment and Losses - The company recorded an impairment of intangible assets of approximately $11.9 million for the GuruShots reporting segment for the three and six months ended January 31, 2024[148]. - The loss from operations related to GuruShots for the three months ended January 31, 2024, was $13.6 million, significantly higher than the $0.1 million loss in the same period last year, mainly due to an $11.9 million impairment loss on intangible assets[161]. - The loss from operations related to GuruShots for the six months ended January 31, 2024, was $14.9 million, compared to $1.7 million for the same period in the prior year, primarily due to the same $11.9 million impairment loss[163]. Cash Flow and Working Capital - As of January 31, 2024, the company had cash and cash equivalents of $18.1 million and working capital of $16.3 million, compared to $18.1 million and $15.8 million, respectively, at July 31, 2023[164]. - Cash provided by operating activities increased by $1.7 million to $2.8 million for the six months ended January 31, 2024, compared to $1.1 million in the same period last year[166]. - Gross trade accounts receivable increased by $0.5 million to $3.4 million at January 31, 2024, from $2.9 million at July 31, 2023, primarily due to higher revenue[167]. - Two customers represented 29% and 11% of the company's revenue for the six months ended January 31, 2024, compared to three customers representing 24%, 19%, and 10% in the same period last year[175]. - The company does not anticipate paying dividends on common stock until achieving sustainable profitability and retaining certain minimum cash reserves[173]. Geopolitical and Pandemic Impact - Zedge's management is closely monitoring geopolitical events, including the impact of the Israel-Hamas war and the Russia-Ukraine conflict, on its business operations[98][97]. - The company continues to assess the potential impacts of the COVID-19 pandemic on its financial condition, although it did not have a material impact in fiscal 2023[99].

Financial Data and Key Metrics Changes - Q2 revenue increased by 11% year-over-year, totaling $7.8 million [5][24] - GAAP loss from operations was $11.9 million, compared to income from operations of $1.5 million in the previous year [27] - Non-GAAP net income for the quarter was $0.5 million, down from $0.8 million year-over-year [27] - Monthly active users (MAU) for the Zedge marketplace decreased by 10.7% year-over-year to 28.8 million [24] Business Line Data and Key Metrics Changes - Ad revenue increased by 18% year-over-year [6] - Zedge+ subscription revenue grew by 24% year-over-year, with a sequential increase for the third consecutive quarter [25] - Zedge Premium Gross Transaction Value (GTV) grew by 23% year-over-year to a record $540,000 [26] - Digital goods and services revenue, including GuruShots, decreased by 26% year-over-year to $0.9 million [24] Market Data and Key Metrics Changes - iOS revenue for the Zedge marketplace increased by 46% sequentially, indicating strong growth potential in the iOS ecosystem [7][17] - MAU in developed markets decreased by 15.6%, while emerging markets saw a decline of 9.2% [24] Company Strategy and Development Direction - The company is focusing on building a full-stack marketing team to enhance growth, similar to previous initiatives in data and analytics [8] - Product development is being prioritized to drive innovation and resource consolidation for long-term success [8] - The company is investing in a coin-based economy for GuruShots to enhance user engagement and retention [13][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in unlocking growth from GuruShots despite a noncash write-down of $11.9 million on intangible assets [20][21] - The company believes it is well-positioned for sustainable long-term growth due to market opportunities and its product portfolio [19] - Management highlighted the importance of AI integration across the business to drive future growth [19] Other Important Information - The company has over $18.1 million in cash and cash equivalents, indicating a strong liquidity position [27] - The company plans to report non-GAAP net income and diluted EPS as new metrics going forward [21] Q&A Session Summary Question: What effect is seasonal versus other factors on advertising rates? - Management noted that numbers are holding up due to a combination of factors, making it difficult to parse out seasonal effects [30] Question: What are the key drivers of growth in the marketplace? - Management indicated that continuous optimization and feature improvements are driving growth in both Zedge Premium and the overall marketplace [31][32] Question: Can you clarify the Zedge+ subscription offerings? - Zedge+ is a bundled subscription offering that includes ad-free options and additional value adds [34] Question: How did Emojipedia perform this quarter? - Emojipedia grew 27% over six months, although growth was slower than expected in the last quarter [39] Question: What are the plans to increase monthly active users? - Management is focusing on feature enhancements, user acquisition investments, and reimagining the Zedge app to drive growth [40] Question: What changes are being made to the GuruShots onboarding process? - The onboarding process is being simplified to make it more accessible for new users, allowing for quicker engagement [42][43] Question: What is the status of AI Art Master and the hybrid casual game? - AI Art Master remains in soft launch while the company focuses on optimizing GuruShots [48][49] Question: What contributed to the increase in SG&A expenses? - The increase in SG&A is attributed to marketing spend and platform fees associated with new subscription models [50][52]

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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Fiscal Year Ended July 31, 2023 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒ Indicate by check mark if the registrant is not required to file reports pursu ...

Zedge, Inc. (NYSE:ZDGE) Q4 2023 Earnings Conference Call October 26, 2023 4:30 PM ET Company Participants Brian Siegel - Investor Relations, Hayden Jonathan Reich - Chief Executive Officer Yi Tsai - Chief Financial Officer Conference Call Participants Allen Klee - Maxim Group Operator Good afternoon and welcome to Zedge's Earnings Conference Call for Fiscal Fourth Quarter and End of Year 2023 Results. [Operator Instructions] I will now turn the call over to Brian Siegel. Sir, you may begin. Brian Siegel Tha ...