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]
Zedge(ZDGE) - 2024 Q3 - Earnings Call Transcript