Zedge, Inc. (NYSE:ZDGE) Q3 2023 Earnings Conference Call June 12, 2023 4:30 PM ET Company Participants Brian Siegel - IR, Hayden IR Jonathan Reich - CEO Yi Tsai - CFO Conference Call Participants Allen Klee - Maxim Group Operator Good afternoon and welcome to Zedge's Earnings Conference Call for the Third Fiscal 2023 Quarterly Results. During management's prepared remarks, all participants will be in a listen-only mode. [Operator Instructions] After today's presentation by Zedge's management, there will be ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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 | | incorporation or organization) | Identification Number) | | 1178 Broadway, 3 Floor #1450, New York, NY | 10001 | | (Address of principal executive off ...

Zedge, Inc. (NYSE:ZDGE) Q2 2023 Earnings Conference Call March 15, 2023 4:30 PM ET Company Participants Brian Siegel - Hayden, IR Jonathan Reich - CEO Yi Tsai - CFO Conference Call Participants Allen Klee - Maxim Group Operator Good afternoon and welcome to Zedge's Earnings Conference Call for the Second Fiscal 2023 Quarterly Results. During management's prepared remarks, all participants will be in a listen-only mode. [Operator Instructions] After today's presentation by Zedge's management, there will be a ...

Zedge, Inc. (NYSE:ZDGE) Q1 2023 Earnings Conference Call December 13, 2022 4:30 PM ET Company Participants Brian Siegel - Hayden, Investor Relations Jonathan Reich - Chief Executive Officer Yi Tsai - Chief Financial Officer Conference Call Participants Allen Klee - Maxim Group LLC Operator Good afternoon, and welcome to Zedge's Earnings Conference Call for the First Fiscal 2023 Quarterly Results. During management's prepared remarks, all participants will be in a listen-only mode. [Operator Instructions] Af ...

Zedge, Inc. (NYSE:ZDGE) Q4 2022 Results Conference Call November 15, 2022 4:30 PM ET Company Participants Brian Siegel - Hayden IR Jonathan Reich - Chief Executive Officer Yi Tsai - Chief Financial Officer Conference Call Participants Allen Klee - Maxim Group Operator Good day. And welcome to Zedge's Earnings Conference Call for the Fourth Quarter and Full Year Fiscal 2022 Results. During management's prepared remarks, all participants will be in listen-only mode [Operator Instructions]. I will now turn th ...

[PART I. Financial Information](index=4&type=section&id=PART%20I.%20Financial%20Information) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for Zedge, Inc. show revenue growth but decreased net income, influenced by acquisitions and increased operating expenses Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | April 30, 2022 | July 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | $17,095 | $24,908 | | Total current assets | $20,322 | $27,613 | | Total assets | $55,667 | $37,477 | | Total current liabilities | $13,929 | $4,177 | | Total liabilities | $16,538 | $4,322 | | Total stockholders' equity | $39,129 | $33,155 | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended April 30, 2022 | Three Months Ended April 30, 2021 | Nine Months Ended April 30, 2022 | Nine Months Ended April 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $6,230 | $5,252 | $19,173 | $14,328 | | Income from operations | $1,342 | $1,979 | $7,037 | $5,590 | | Net Income | $803 | $2,449 | $5,183 | $5,772 | | Diluted EPS | $0.05 | $0.17 | $0.35 | $0.43 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Nine Months Ended April 30, 2022 | Nine Months Ended April 30, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $11,314 | $7,737 | | Net cash used in investing activities | ($18,807) | ($593) | | Net cash (used in) provided by financing activities | ($225) | $12,518 | | Net (decrease) increase in cash | ($7,813) | $19,804 | [Notes To Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20To%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue disaggregation, acquisition specifics for GuruShots and Emojipedia, and changes in intangible assets and goodwill Disaggregation of Revenue (in thousands) | Revenue Type | Three Months Ended April 30, 2022 | Three Months Ended April 30, 2021 | Nine Months Ended April 30, 2022 | Nine Months Ended April 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Advertising revenue | $4,526 | $4,227 | $14,532 | $11,612 | | Paid subscription revenue | $910 | $899 | $2,823 | $2,358 | | Other revenues | $794 | $126 | $1,818 | $358 | | **Total revenues** | **$6,230** | **$5,252** | **$19,173** | **$14,328** | - On April 12, 2022, the Company acquired 100% of GuruShots, Ltd. for **$18 million in cash** at closing and up to **$16.8 million in contingent earnout payments** over two years, accounted for as a business combination[50](index=50&type=chunk)[51](index=51&type=chunk)[166](index=166&type=chunk) - On August 1, 2021, the Company acquired substantially all assets of Emojipedia for a total purchase price of **$6.7 million**, accounted for as an asset acquisition[68](index=68&type=chunk) - Goodwill increased from **$2.3 million** at July 31, 2021, to **$11.0 million** at April 30, 2022, primarily due to **$8.9 million of goodwill** recorded from the GuruShots acquisition[73](index=73&type=chunk) - The company recognized **$1.29 million** in stock-based compensation for the nine months ended April 30, 2022, a significant increase from **$488,000** in the prior-year period[82](index=82&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses business overview, strategic acquisitions, geopolitical impacts, and key performance indicators, highlighting revenue growth, MAU decline, and increased SG&A expenses - The company's portfolio, consisting of Zedge App, Emojipedia, and GuruShots, served **41 million monthly active users** as of April 30, 2022[109](index=109&type=chunk) - The company acquired Emojipedia on August 1, 2021, and GuruShots, a leader in the photo gaming space, on April 12, 2022[109](index=109&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk) Key Performance Indicators (Zedge App) | Metric | Q3 FY2022 | Q3 FY2021 | % Change (YoY) | | :--- | :--- | :--- | :--- | | MAU (millions) | 32.1 | 34.5 | -7.0% | | ARPMAU | $0.0523 | $0.0485 | +7.8% | - The decline in MAU is attributed to a forced app upgrade, the company's public support for Ukraine impacting users in certain regions, and seasonality[132](index=132&type=chunk) Results of Operations Comparison (in thousands) | Line Item | Three Months Ended April 30, 2022 | Three Months Ended April 30, 2021 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $6,230 | $5,252 | 18.6% | | SG&A | $4,064 | $2,694 | 50.9% | | Income from operations | $1,342 | $1,979 | -32.2% | | Net Income | $803 | $2,449 | -67.2% | - SG&A expenses increased significantly by **50.9%** for the quarter, primarily due to **$860,000** in transaction costs for the GuruShots acquisition, higher compensation from increased headcount (**93 vs. 52 YoY**), and higher stock-based compensation[147](index=147&type=chunk)[149](index=149&type=chunk) [Quantitative and Qualitative Disclosures About Market Risks](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) As a smaller reporting company, Zedge, Inc. is not required to provide the information for this item - The company is a smaller reporting company and is not required to provide the information requested by this item[179](index=179&type=chunk) [Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO evaluated disclosure controls and procedures, concluding their effectiveness with no material changes in internal control over financial reporting - Based on an evaluation as of the end of the period, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[180](index=180&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[181](index=181&type=chunk) [PART II. OTHER INFORMATION](index=40&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company is not subject to any legal proceedings expected to materially adversely affect its financial condition or results of operations - The Company does not expect any legal proceedings to have a material adverse effect on its results of operations, cash flows or financial condition[88](index=88&type=chunk)[184](index=184&type=chunk) [Risk Factors](index=40&type=section&id=Item%201A.%20Risk%20Factors) This section outlines new and updated risk factors, primarily concerning the GuruShots acquisition and geopolitical instability, including integration challenges and economic disruption - Risks related to the GuruShots acquisition include failure to attract and monetize a sufficient number of paying players, improper management of the in-game economy, and potential inability to successfully integrate GuruShots' operations into Zedge[186](index=186&type=chunk)[188](index=188&type=chunk)[192](index=192&type=chunk) - The company may be unable to meet its user acquisition spending commitments for GuruShots if Zedge's core business experiences a material downturn, exposing it to liability[191](index=191&type=chunk) - The acquisition may fail to yield expected growth opportunities and synergies, and the company may need to issue stock for earnout payments, causing further dilution to investors[193](index=193&type=chunk)[194](index=194&type=chunk) - Russia's invasion of Ukraine has created substantial political and economic disruption, which could have a material adverse effect on the company's operations and business outlook[195](index=195&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the period - None[197](index=197&type=chunk) [Defaults Upon Senior Securities](index=41&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the period - None[197](index=197&type=chunk) [Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[197](index=197&type=chunk) [Other Information](index=41&type=section&id=Item%205.%20Other%20Information) There is no other information to report for this item - None[197](index=197&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data files

Zedge, Inc. (NYSE:ZDGE) Q3 2022 Earnings Conference Call June 13, 2022 4:30 PM ET Company Participants Brian Siegel - Investor Relations 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 Third Fiscal Quarter 2022 Earnings Conference Call. [Operator Instructions] I will now turn the call over to Brian Siegel. Brian Siegel Thank you, Matthew. In today’s presentation, Jonathan Reich, Ch ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (State or other jurisdiction of incorporation or organization) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (I.R.S. Employer FOR THE QUARTERLY PERIOD ENDED JANUARY 31, 2022 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 ...

Zedge, Inc. (NYSE:ZDGE) Q2 2022 Earnings Conference Call March 15, 2022 4:30 PM ET Company Participants Jonathan Reich - CEO Yi Tsai - CFO Conference Call Participants Allen Klee - Maxim Group William Vaughan - RegentAtlantic Capital Operator Good afternoon, and welcome to the Zedge’s Second Fiscal Quarter 2022 Earnings Conference Call. During management’s prepared remarks, all participants will be in listen-only mode. [Operator Instructions] After today’s presentation by Zedge’s management, there will be a ...

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, 2021 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) (State or other jurisdiction of incorporation or organization) 1178 Broadway, 3 Floor #1450, New Yo ...