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]
Zedge(ZDGE) - 2025 Q3 - Quarterly Results