Lively subscribers1 elevated 37% to a document of practically 900,000; subscription income elevated 13%
Money stream from operations of $0.9 million; Free money stream2 of $0.8 million after ~$1.0 million of funds primarily associated to the worldwide restructuring and the tail finish of the GuruShots retention bonus
Income returned to progress regardless of the TikTok ban within the U.S. in the beginning of the quarter
Launched DataSeeds.AI, a brand new content material market initiative for AI coaching units, creating B2B income alternatives
NEW YORK, NY / ACCESS Newswire / June 12, 2025 / Zedge, Inc. (NYSE American:ZDGE), $ZDGE, a frontrunner in digital marketplaces and interactive video games that present content material, allow creativity, empower self-expression and facilitate neighborhood, right this moment introduced outcomes for its third quarter fiscal 2025, ended April 30, 2025.
Jonathan Reich, Zedge’s CEO, commented:
“Our core enterprise demonstrated robust momentum, driving a return to income progress in Q3 and highlighting its resilience regardless of the impression on the advert market ensuing from TikTok’s short-term U.S. ban and tariff-related uncertainty that precipitated macroeconomic volatility.
“We generated $0.8 million in free money stream, regardless of roughly $1.0 million of sure funds – primarily severance associated to our restructuring and the primary portion of the ultimate installment of the retention bonus stemming from the 2022 GuruShots acquisition. On a sequential foundation our money and money equivalents steadiness on the finish of the quarter elevated to $20.4 million, even after repurchasing roughly 220,000 shares in Q3 for roughly $536,000.
“On the underside line, we noticed significant year-over-year and quarter-over-quarter enhancements in GAAP and non-GAAP internet earnings and EPS2, and adjusted EBITDA2, as the associated fee financial savings from our world restructuring started to take maintain. This efficiency was particularly notable, as our headline outcomes have been partially masked by anticipated income declines at GuruShots. Nevertheless, the enterprise’s bottom-line losses have been meaningfully decreased as a consequence of streamlining the group as a part of the worldwide restructuring, coupled with decrease buyer acquisition spend.
“Our underlying enterprise metrics have been strong as effectively. Lively subscribers reached an all-time excessive of practically 900,000, representing a 37% enhance from final 12 months, whereas subscription income elevated by 13%. The discrepancy between these two numbers is attributed to a combination shift pushed by a rise in lifetime subscriptions, the place income is amortized over 30 months whereas the associated app retailer charges are acknowledged upfront. This ends in a horny recurring income stream with a 100% gross margin through the tail interval. The truth is, our deferred income, which is primarily tied to subscriptions, elevated by 83% year-over-year and 13% sequentially, standing at practically $5 million at quarter’s finish. I’m additionally inspired by Zedge Premium’s income progress, which greater than doubled, fueled by availing it to internet customers and continued person demand for pAInt, our Gen AI creation suite and Parallax 3D Wallpapers.”
Fourth Quarter Fiscal 2025 Outlook
Reich continued:
“We’re seeing continued momentum in our core enterprise by way of the primary month of This autumn, supported by robust person engagement. On the operational entrance, we’re beginning to reap the monetary advantages of our world restructuring efforts. Yr-over-year enhancements in price construction and free money stream ought to change into extra seen in This autumn, even bearing in mind conventional seasonality and continued anticipated softness at GuruShots, offering a stronger basis as we scale new progress initiatives.
“We additionally introduced a main strategic milestone final week – the launch of DataSeeds.AI, a content material market for AI coaching units vital to the success of foundational fashions. This initiative capitalizes on Zedge’s large creator neighborhood – at each Gurushots and Zedge Market – and our content material catalog of tens of tens of millions of photos, creating a brand new potential income stream for us. We’ve already signed our first AI dataset partnership with a main AI firm and plan to guage alternatives that will develop the DataSeeds.AI market past photos. DataSeeds.AI shouldn’t be solely enticing to the market as a consequence of its means to promptly provide bespoke content material at scale but additionally as a result of it has reset the bar for AI coaching benchmarks with the DataSeeds.AI Pattern Dataset in comparison with legacy options like AWS Rekognition.
“One other thrilling improvement is the upcoming rollout of our audio AI generator inside Zedge Premium. As one of many first shopper platforms to introduce this performance, we’re tapping into a robust new dimension of personalization. By enabling customers to create ringtones and notification sounds from easy prompts, we’re increasing our management in cell content material and unlocking a brand new class of person expression that enhances our present image-based choices and has the potential to contribute to our Dataseeds.AI providing.
“For Emojipedia, we’re gearing up for World Emoji Day in July, with plans to introduce an thrilling new characteristic to the Emoji Sandbox forward of the occasion that can deepen person interplay and additional elevate our model’s profile. We additionally stay on monitor for modernizing and upgrading the emojipedia.org web site within the months to come back.
“We’re actively ideating in regards to the route for GuruShots 2.0, together with onboarding, voting mechanic and development. Associated to that is how we create a synergistic relationship with DataSeeds.AI – incentivizing gamers to create content material that can be utilized for AI coaching. We’re being deliberate in our planning so as to ship the most effective complete consequence for all related events.
“We’re energized by the innovation occurring throughout the corporate and stay targeted on disciplined execution, platform synergy and creating long-term worth for customers, creators and shareholders alike.”
Third Quarter Highlights (fiscal 2025 versus fiscal 2024)
-
Income elevated 1.3% to $7.8 million;
-
GAAP working earnings improved to $0.2 million, in comparison with an working lack of ($0.1) million;
-
GAAP internet earnings and earnings per share (EPS) elevated 63.7% and 70.8%, respectively, to $0.2 million and $0.01 in comparison with $0.1 million and $0.01;
-
Non-GAAP internet earnings and EPS elevated 81.5% and 89.4%, respectively, to $0.9 million and $0.06 in comparison with $0.5 million and $0.03;
-
Free Money Circulation of $0.8 million;
-
Adjusted EBITDA elevated 46.0% to $1.2 million in comparison with $0.9 million;
-
Zedge Premium’s GTV,elevated 3.8% to $0.6 million;
-
Repurchased 219,087 shares of Class B Frequent Inventory, leaving $3.8 million of the $5 million authorization out there on the finish of the quarter.
Third Quarter Choose Monetary Metrics: FY25 versus FY24*
|
(in $M aside from EPS) |
Q3 ’25 |
Q3 ’24 |
Change |
FY 25 |
FY 24 |
Change |
||||||||||||||||||
|
Whole Income |
$ |
7.8 |
$ |
7.7 |
1.3 |
% |
$ |
21.9 |
$ |
22.5 |
-2.6 |
% |
||||||||||||
|
Promoting Income |
$ |
5.6 |
$ |
5.5 |
2.2 |
% |
$ |
15.1 |
$ |
15.9 |
-4.6 |
% |
||||||||||||
|
Digital Items and Providers Income |
$ |
0.5 |
$ |
0.9 |
-45.3 |
% |
$ |
1.7 |
$ |
2.7 |
-36.5 |
% |
||||||||||||
|
Subscription Income |
$ |
1.3 |
$ |
1.1 |
13.4 |
% |
$ |
3.7 |
$ |
3.2 |
15.7 |
% |
||||||||||||
|
Different Income |
$ |
0.4 |
$ |
0.2 |
109.2 |
% |
$ |
1.4 |
$ |
0.7 |
91.2 |
% |
||||||||||||
|
GAAP Working Revenue (Loss) |
$ |
0.2 |
$ |
(0.1 |
) |
nm |
$ |
(2.5 |
) |
$ |
(11.7 |
) |
78.6 |
% |
||||||||||
|
Working Margin |
2.1 |
% |
-1.7 |
% |
-11.5 |
% |
-52.2 |
% |
||||||||||||||||
|
GAAP Web Revenue (Loss) |
$ |
0.2 |
$ |
0.1 |
63.7 |
% |
$ |
(1.8 |
) |
$ |
(9.1 |
) |
79.9 |
% |
||||||||||
|
GAAP Diluted EPS (Loss per share) |
$ |
0.01 |
$ |
0.01 |
70.8 |
% |
$ |
(0.13 |
) |
$ |
(0.65 |
) |
80.0 |
% |
||||||||||
|
Non-GAAP Web Revenue |
$ |
0.9 |
$ |
0.5 |
81.5 |
% |
$ |
0.6 |
$ |
1.5 |
-57.8 |
% |
||||||||||||
|
Non- GAAP Diluted EPS |
$ |
0.06 |
$ |
0.03 |
89.4 |
% |
$ |
0.05 |
$ |
0.10 |
-56.7 |
% |
||||||||||||
|
Money Circulation from Operations |
$ |
0.9 |
$ |
2.3 |
-62.9 |
% |
$ |
2.7 |
$ |
5.2 |
-46.7 |
% |
||||||||||||
|
Free Money Circulation |
$ |
0.8 |
$ |
2.1 |
-64.2 |
% |
$ |
2.4 |
$ |
4.1 |
-42.6 |
% |
||||||||||||
|
Adjusted EBITDA |
$ |
1.2 |
$ |
0.9 |
46.0 |
% |
$ |
1.5 |
$ |
3.9 |
-63.0 |
% |
||||||||||||
|
Shares Repurchased |
0.22 |
0.06 |
266.7 |
% |
0.68 |
0.06 |
1033.3 |
% |
||||||||||||||||
|
nm = not measurable/significant |
||||||||||||||||||||||||
|
*numbers/percentages are primarily based off of actuals versus the rounded numbers within the desk |
||||||||||||||||||||||||
Choose Zedge Market Metrics: FY25 versus FY24*
|
(in MM aside from ARPMAU and the place famous) |
Q3 ’25 |
Q3 ’24 |
Change |
|||||||||
|
Whole Installs – Cumulative |
706.9 |
660.9 |
7.0 |
% |
||||||||
|
MAU |
22.1 |
27.7 |
-20.3 |
% |
||||||||
|
Nicely-Developed Markets |
5.2 |
6.0 |
-13.4 |
% |
||||||||
|
Rising Markets |
16.9 |
21.7 |
-22.2 |
% |
||||||||
|
Lively Subscriptions (in 000s) |
896 |
654 |
37.0 |
% |
||||||||
|
ARPMAU |
$ |
0.099 |
$ |
0.074 |
32.7 |
% |
||||||
|
Zedge Premium – Gross Transaction Worth (GTV) |
$ |
0.61 |
$ |
0.59 |
3.8 |
% |
||||||
|
*numbers/percentages are primarily based off of actuals versus the rounded numbers within the desk |
||||||||||||
Trended Monetary Data*
|
(in $M aside from EPS, ARPMAU, Paid Subscriptions) |
Q123 |
Q223 |
Q323 |
Q423 |
Q124 |
Q224 |
Q324 |
Q424 |
Q125 |
Q225 |
Q325 |
FY23 |
FY24 |
YTD FY25 |
|||||||||||||||||||||||||||||
|
Whole Income |
$ |
6.9 |
$ |
7.0 |
$ |
6.7 |
$ |
6.6 |
$ |
7.1 |
$ |
7.8 |
$ |
7.7 |
$ |
7.6 |
$ |
7.2 |
$ |
7.0 |
$ |
7.8 |
$ |
27.2 |
$ |
30.1 |
$ |
21.9 |
|||||||||||||||
|
Promoting Income |
$ |
4.5 |
$ |
4.6 |
$ |
4.6 |
$ |
4.6 |
$ |
4.9 |
$ |
5.5 |
$ |
5.5 |
$ |
5.2 |
$ |
4.9 |
$ |
4.7 |
$ |
5.6 |
$ |
18.3 |
$ |
21.0 |
$ |
15.1 |
|||||||||||||||
|
Digital Items and Providers Income |
$ |
1.3 |
$ |
1.2 |
$ |
1.1 |
$ |
1.0 |
$ |
0.9 |
$ |
0.9 |
$ |
0.9 |
$ |
0.7 |
$ |
0.6 |
$ |
0.6 |
$ |
0.5 |
$ |
4.6 |
$ |
3.5 |
$ |
1.7 |
|||||||||||||||
|
Subscription Income |
$ |
0.9 |
$ |
0.9 |
$ |
0.8 |
$ |
0.9 |
$ |
1.0 |
$ |
1.1 |
$ |
1.1 |
$ |
1.2 |
$ |
1.2 |
$ |
1.2 |
$ |
1.3 |
$ |
3.5 |
$ |
4.3 |
$ |
3.7 |
|||||||||||||||
|
Different Income |
$ |
0.2 |
$ |
0.2 |
$ |
0.2 |
$ |
0.2 |
$ |
0.2 |
$ |
0.3 |
$ |
0.2 |
$ |
0.5 |
$ |
0.5 |
$ |
0.4 |
$ |
0.4 |
$ |
0.8 |
$ |
1.2 |
$ |
1.4 |
|||||||||||||||
|
GAAP Working Revenue (Loss) |
$ |
(0.2 |
) |
$ |
1.5 |
$ |
(8.4 |
) |
$ |
0.2 |
$ |
0.3 |
$ |
(11.9 |
) |
$ |
(0.1 |
) |
$ |
(0.1 |
) |
$ |
(0.5 |
) |
$ |
(2.2 |
) |
$ |
0.2 |
$ |
(6.9 |
) |
$ |
(11.8 |
) |
$ |
(2.5 |
) |
|||||
|
GAAP Web Revenue (Loss) |
$ |
(0.2 |
) |
$ |
1.6 |
$ |
(7.7 |
) |
$ |
0.2 |
$ |
(0.0 |
) |
$ |
(9.2 |
) |
$ |
0.1 |
$ |
(0.0 |
) |
$ |
(0.3 |
) |
$ |
(1.7 |
) |
$ |
0.2 |
$ |
(6.1 |
) |
$ |
(9.2 |
) |
$ |
(1.8 |
) |
|||||
|
GAAP Diluted EPS (Loss per share) |
$ |
(0.01 |
) |
$ |
0.11 |
$ |
(0.55 |
) |
$ |
0.01 |
$ |
0.00 |
$ |
(0.66 |
) |
$ |
0.01 |
$ |
0.00 |
$ |
(0.02 |
) |
$ |
(0.12 |
) |
$ |
0.01 |
$ |
(0.44 |
) |
$ |
(0.65 |
) |
$ |
(0.13 |
) |
|||||||
|
Non GAAP Web Revenue (Loss) |
$ |
0.2 |
$ |
0.8 |
$ |
0.3 |
$ |
0.6 |
$ |
0.5 |
$ |
0.5 |
$ |
0.5 |
$ |
0.3 |
$ |
(0.0 |
) |
$ |
(0.2 |
) |
$ |
0.9 |
$ |
1.9 |
$ |
1.8 |
$ |
0.6 |
|||||||||||||
|
Non-GAAP Diluted EPS (Loss per share) |
$ |
0.01 |
$ |
0.06 |
$ |
0.02 |
$ |
0.04 |
$ |
0.04 |
$ |
0.04 |
$ |
0.03 |
$ |
0.02 |
$ |
(0.00 |
) |
$ |
(0.01 |
) |
$ |
0.06 |
$ |
0.13 |
$ |
0.13 |
$ |
0.05 |
|||||||||||||
|
Money Circulation from Operations |
$ |
1.1 |
$ |
0.0 |
$ |
1.6 |
$ |
0.4 |
$ |
1.3 |
$ |
1.6 |
$ |
2.3 |
$ |
0.7 |
$ |
1.2 |
$ |
0.7 |
$ |
0.9 |
$ |
3.2 |
$ |
5.9 |
$ |
2.7 |
|||||||||||||||
|
Free Money Circulation |
$ |
0.7 |
$ |
(0.3 |
) |
$ |
1.2 |
$ |
0.1 |
$ |
0.8 |
$ |
1.2 |
$ |
2.1 |
$ |
0.5 |
$ |
1.0 |
$ |
0.6 |
$ |
0.8 |
$ |
1.7 |
$ |
4.7 |
$ |
2.4 |
||||||||||||||
|
Adjusted EBITDA |
$ |
1.0 |
$ |
1.4 |
$ |
1.7 |
$ |
1.6 |
$ |
1.5 |
$ |
1.5 |
$ |
0.9 |
$ |
0.8 |
$ |
0.3 |
$ |
(0.1 |
) |
$ |
1.2 |
$ |
5.7 |
$ |
4.7 |
$ |
1.5 |
||||||||||||||
|
MAU |
31.9 |
32.2 |
32.0 |
30.9 |
28.5 |
28.7 |
27.7 |
26.1 |
25.0 |
24.7 |
22.1 |
nm |
nm |
nm |
|||||||||||||||||||||||||||||
|
Nicely-developed Markets |
7.1 |
7.4 |
7.2 |
6.8 |
6.2 |
6.2 |
6.0 |
5.5 |
5.5 |
5.6 |
5.2 |
nm |
nm |
nm |
|||||||||||||||||||||||||||||
|
Rising Markets |
24.8 |
24.8 |
24.8 |
24.1 |
22.3 |
22.5 |
21.7 |
20.6 |
19.5 |
19.1 |
16.9 |
nm |
nm |
nm |
|||||||||||||||||||||||||||||
|
Lively Subscriptions (in 000s) |
674 |
654 |
631 |
647 |
648 |
648 |
654 |
669 |
698 |
791 |
896 |
nm |
nm |
nm |
|||||||||||||||||||||||||||||
|
ARPMAU |
$ |
0.054 |
$ |
0.052 |
$ |
0.053 |
$ |
0.055 |
$ |
0.063 |
$ |
0.072 |
$ |
0.074 |
$ |
0.079 |
$ |
0.077 |
$ |
0.078 |
$ |
0.099 |
nm |
nm |
nm |
||||||||||||||||||
|
Zedge Premium – GTV |
$ |
0.31 |
$ |
0.44 |
$ |
0.41 |
$ |
0.38 |
$ |
0.42 |
$ |
0.54 |
$ |
0.59 |
$ |
0.60 |
$ |
0.68 |
$ |
0.68 |
$ |
0.61 |
$ |
1.54 |
$ |
2.15 |
$ |
1.98 |
|||||||||||||||
|
Shares Repurchased |
0.00 |
0.00 |
0.06 |
0.15 |
0.22 |
0.24 |
0.22 |
0.75 |
0.21 |
0.68 |
|||||||||||||||||||||||||||||||||
nm = not measurable/significant
*numbers might not add as a consequence of rounding
1 We use the next supplemental enterprise metrics on this launch as a result of we consider they’re helpful in evaluating Zedge’s operational efficiency.
-
Month-to-month energetic customers, or MAU, captures the variety of distinctive customers that used our Zedge App through the earlier 30 days of the related interval, is beneficial for evaluating shopper engagement with our App, which correlates to promoting income as extra customers drive extra advert impressions on the market. It additionally permits readers and potential advertisers to guage the dimensions of our person base.
-
Zedge Premium Gross Transaction Worth, or GTV, is the entire greenback quantity of transactions performed by way of Zedge Premium. As Zedge Premium is an inner focus for progress, we consider this metric will assist buyers consider our progress in rising this a part of our enterprise.
-
Common Income Per Month-to-month Lively Consumer for our Zedge App, or ARPMAU, is beneficial in evaluating how effectively we monetize our person base.
-
An Lively Subscription is a subscription that has commenced and never been canceled, together with paused subscriptions and subscriptions in free trials, grace intervals, or account maintain. That is necessary as a result of it’s a supply of recurring income.
-
Whole Installs – Cumulative measures the variety of occasions the Zedge App has been downloaded since inception.
2 All through this launch, Non-GAAP Web Revenue, Non-GAAP EPS, Free Money Circulation (FCF), FCF Yield and Adjusted EBITDA/Margin are non-GAAP monetary measures meant to offer helpful info that complement Zedge’s ends in accordance with GAAP. Please seek advice from the Reconciliation of Non-GAAP Monetary measures on the finish of this launch for an evidence of Zedge’s formulations of Non-GAAP Web Revenue, Non-GAAP EPS, Free Money Circulation and Adjusted EBITDA and reconciliations to essentially the most instantly comparable GAAP measures.
Earnings Announcement and Supplemental Data
Administration will host an earnings convention name right this moment at 4:30 PM Jap to debate its earnings outcomes, outlook, and technique, adopted by a Q&A session with buyers.
Dwell Name-in Data:
Toll Free: 888-506-0062
Worldwide: 973-528-0011
Participant Entry Code: 253956
Webcast URL: https://www.webcaster4.com/Webcast/Page/2205/52502
Replay:
Toll Free: 877-481-4010
Worldwide: 919-882-2331
Replay Passcode: 52502
About Zedge
Zedge empowers tens of tens of millions of shoppers and creators every month with its suite of interconnected platforms that allow creativity, self-expression and e-commerce and foster neighborhood by way of enjoyable competitions. Zedge’s ecosystem of product choices contains the Zedge Market, a freemium market providing cell phone wallpapers, video wallpapers, ringtones, notification sounds, and pAInt, a generative AI picture maker; GuruShots, “The World’s Best Images Recreation,” a skill-based picture problem sport; and Emojipedia, the #1 trusted supply for ‘all issues emoji.’
For extra info, go to: investor.zedge.internet
Observe us on X: @Zedge
Observe us on LinkedIn
Ahead-Wanting Statements
All statements above that aren’t purely about historic details, together with, however not restricted to, these through which we use the phrases “consider,” “anticipate,” “anticipate,” “plan,” “intend,” “estimate,” “goal” and comparable expressions, are forward-looking statements throughout the that means of the Non-public Securities Litigation Reform Act of 1995. Whereas these forward-looking statements signify our present judgment of what might occur sooner or later, precise outcomes might differ materially from the outcomes expressed or implied by these statements as a consequence of quite a few necessary components. Our filings with the SEC present detailed info on such statements and dangers and needs to be consulted together with this launch. To the extent permitted beneath relevant legislation, we assume no obligation to replace any forward-looking statements.
Contact:
Brian Siegel, IRC, MBA
Senior Managing Director
Hayden IR
(346) 396-8696
[email protected]
CONDENSED CONSOLIDATED BALANCE SHEETS
(in 1000’s, besides par worth information)
|
April 30, |
July 31, |
|||||||
|
2025 |
2024 |
|||||||
|
(Unaudited) |
||||||||
|
Property |
||||||||
|
Present belongings: |
||||||||
|
Money and money equivalents |
$ |
20,433 |
$ |
19,998 |
||||
|
Commerce accounts receivable |
3,319 |
3,406 |
||||||
|
Pay as you go bills and different present belongings |
946 |
593 |
||||||
|
Whole Present belongings |
24,698 |
23,997 |
||||||
|
Property and tools, internet |
1,277 |
2,306 |
||||||
|
Intangible belongings, internet |
5,034 |
5,369 |
||||||
|
Goodwill |
1,917 |
1,824 |
||||||
|
Deferred tax belongings, internet |
4,528 |
4,344 |
||||||
|
Different belongings |
377 |
355 |
||||||
|
Whole belongings |
$ |
37,831 |
$ |
38,195 |
||||
|
Liabilities and stockholders’ fairness |
||||||||
|
Present liabilities: |
||||||||
|
Commerce accounts payable |
$ |
1,388 |
$ |
1,113 |
||||
|
Accrued bills and different present liabilities |
2,832 |
2,969 |
||||||
|
Deferred revenues |
3,070 |
2,168 |
||||||
|
Whole Present liabilities |
7,290 |
6,250 |
||||||
|
Deferred revenues–non-current |
1,826 |
931 |
||||||
|
Different liabilities |
87 |
118 |
||||||
|
Whole liabilities |
9,203 |
7,299 |
||||||
|
Commitments and contingencies (Be aware 9) |
||||||||
|
Stockholders’ fairness: |
||||||||
|
Most popular inventory, $.01 par worth; licensed shares-2,400; no shares issued and excellent |
– |
– |
||||||
|
Class A typical inventory, $.01 par worth; licensed shares-2,600; 525 shares issued and excellent at April 30, 2025 and July 31, 2024 |
5 |
5 |
||||||
|
Class B frequent inventory, $.01 par worth; licensed shares-40,000; 14,969 shares issued and 13,228 shares excellent at April 30, 2025, and 14,866 shares issued and 13,815 excellent at July 31, 2024 |
150 |
149 |
||||||
|
Extra paid-in capital |
49,570 |
48,263 |
||||||
|
Gathered different complete loss |
(1,545 |
) |
(1,832 |
) |
||||
|
Gathered deficit |
(14,946 |
) |
(13,113 |
) |
||||
|
Treasury inventory, 1,741 shares at April 30, 2025 and 1,051 shares at July 31, 2024, at price |
(4,606 |
) |
(2,576 |
) |
||||
|
Whole stockholders’ fairness |
28,628 |
30,896 |
||||||
|
Whole liabilities and stockholders’ fairness |
$ |
37,831 |
$ |
38,195 |
||||
ZEDGE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in 1000’s, besides per share information)
(Unaudited)
|
Three Months Ended |
9 Months Ended |
|||||||||||||||
|
April 30, |
April 30, |
|||||||||||||||
|
2025 |
2024 |
2025 |
2024 |
|||||||||||||
|
Revenues |
$ |
7,757 |
$ |
7,658 |
$ |
21,930 |
$ |
22,510 |
||||||||
|
Prices and bills: |
||||||||||||||||
|
Direct price of revenues (excluding amortization of capitalized software program and expertise improvement prices which is included beneath) |
452 |
455 |
1,360 |
1,399 |
||||||||||||
|
Promoting, basic and administrative |
6,343 |
6,752 |
20,278 |
18,773 |
||||||||||||
|
Depreciation and amortization |
225 |
583 |
924 |
2,120 |
||||||||||||
|
Impairment of intangible belongings |
– |
– |
– |
11,958 |
||||||||||||
|
Restructuring fees |
577 |
– |
1,058 |
– |
||||||||||||
|
Impairment of capitalized software program and expertise improvement prices |
– |
– |
827 |
– |
||||||||||||
|
Revenue (loss) from operations |
160 |
(132 |
) |
(2,517 |
) |
(11,740 |
) |
|||||||||
|
Curiosity and different earnings, internet |
154 |
188 |
507 |
434 |
||||||||||||
|
Web loss ensuing from overseas alternate transactions |
(41 |
) |
(80 |
) |
(141 |
) |
(223 |
) |
||||||||
|
Revenue (loss) earlier than earnings taxes |
273 |
(24 |
) |
(2,151 |
) |
(11,529 |
) |
|||||||||
|
Revenue taxes expense (profit) |
88 |
(137 |
) |
(318 |
) |
(2,397 |
) |
|||||||||
|
Web earnings (loss) |
$ |
185 |
$ |
113 |
$ |
(1,833 |
) |
$ |
(9,132 |
) |
||||||
|
Different complete earnings (loss): |
||||||||||||||||
|
Adjustments in overseas foreign money translation adjustment |
448 |
(224 |
) |
287 |
(341 |
) |
||||||||||
|
Whole different complete earnings (loss) |
448 |
(224 |
) |
287 |
(341 |
) |
||||||||||
|
Whole complete earnings (loss) |
$ |
633 |
$ |
(111 |
) |
$ |
(1,546 |
) |
$ |
(9,473 |
) |
|||||
|
Revenue (loss) per share attributable to Zedge, Inc. frequent stockholders: |
||||||||||||||||
|
Fundamental |
$ |
0.01 |
$ |
0.01 |
$ |
(0.13 |
) |
$ |
(0.65 |
) |
||||||
|
Diluted |
$ |
0.01 |
$ |
0.01 |
$ |
(0.13 |
) |
$ |
(0.65 |
) |
||||||
|
Weighted-average variety of shares utilized in calculation of earnings (loss) per share: |
||||||||||||||||
|
Fundamental |
13,720 |
14,191 |
13,835 |
14,077 |
||||||||||||
|
Diluted |
13,940 |
14,542 |
13,835 |
14,077 |
||||||||||||
ZEDGE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in 1000’s)
(Unaudited)
|
9 Months Ended |
||||||||
|
April 30, |
||||||||
|
2025 |
2024 |
|||||||
|
Working actions |
||||||||
|
Web loss |
$ |
(1,833 |
) |
$ |
(9,132 |
) |
||
|
Changes to reconcile internet loss to internet money supplied by working actions: |
||||||||
|
Depreciation |
48 |
42 |
||||||
|
Amortization of intangible belongings |
335 |
1,270 |
||||||
|
Amortization of capitalized software program and expertise improvement prices |
541 |
808 |
||||||
|
Amortization of deferred financing prices |
– |
15 |
||||||
|
Inventory-based compensation |
1,308 |
1,673 |
||||||
|
Impairment cost of capitalized software program and expertise improvement prices |
827 |
– |
||||||
|
Impairment cost of intangible belongings |
– |
11,958 |
||||||
|
Impairment of funding in privately-held firm |
– |
50 |
||||||
|
Deferred earnings taxes |
(184 |
) |
(2,650 |
) |
||||
|
Change in belongings and liabilities: |
||||||||
|
Commerce accounts receivable |
87 |
(442 |
) |
|||||
|
Pay as you go bills and different present belongings |
(353 |
) |
195 |
|||||
|
Different belongings |
(54 |
) |
34 |
|||||
|
Commerce accounts payable and accrued bills |
229 |
1,073 |
||||||
|
Deferred revenues |
1,797 |
261 |
||||||
|
Web money supplied by working actions |
2,748 |
5,155 |
||||||
|
Investing actions |
||||||||
|
Capitalized software program and expertise improvement prices |
(329 |
) |
(993 |
) |
||||
|
Buy of property and tools |
(49 |
) |
(35 |
) |
||||
|
Web money utilized in investing actions |
(378 |
) |
(1,028 |
) |
||||
|
Financing actions |
||||||||
|
Prepayment of time period mortgage |
– |
(2,000 |
) |
|||||
|
Proceeds from train of inventory choices |
– |
3 |
||||||
|
Buy of treasury inventory in reference to share buyback program and inventory awards vesting |
(2,030 |
) |
(165 |
) |
||||
|
Web money utilized in financing actions |
(2,030 |
) |
(2,162 |
) |
||||
|
Impact of alternate price adjustments on money and money equivalents |
95 |
(165 |
) |
|||||
|
Web enhance in money and money equivalents |
435 |
1,800 |
||||||
|
Money and money equivalents at starting of interval |
19,998 |
18,125 |
||||||
|
Money and money equivalents at finish of interval |
$ |
20,433 |
$ |
19,925 |
||||
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
||||||||
|
Money funds made for earnings taxes |
$ |
194 |
$ |
80 |
||||
|
Money funds made for curiosity bills |
$ |
– |
$ |
66 |
||||
Use of Non-GAAP Measures
Adjusted EBITDA, outlined as earnings (loss) earlier than curiosity, taxes, depreciation and amortization, inventory compensation expense, transaction-related bills and different non-recurring bills, Free Money Circulation, and non-GAAP internet earnings and EPS (which alter out inventory compensation expense, transaction-related bills and different non-recurring bills from GAAP internet earnings and EPS), signify measures that we consider are usually utilized by buyers and analysts to guage the monetary efficiency of corporations along with the GAAP measures we current. Our administration additionally believes these measures are helpful in evaluating our core working outcomes. Nevertheless, these will not be measures of economic efficiency beneath GAAP and shouldn’t be thought of a substitute for internet earnings or working earnings/margin as an indicator of our working efficiency or to internet money supplied by working actions as a measure of our liquidity.
Numbers within the following reconciliation tables might not add as a consequence of rounding.
|
Reconciliation of Adjusted EBITDA to Web Revenue (Loss) |
Q123 |
Q223 |
Q323 |
Q423 |
Q124 |
Q224 |
Q324 |
Q424 |
Q125 |
Q225 |
Q325 |
FY23 |
FY24 |
YTD |
|||||||||||||||||||||||||||||
|
Web Revenue (Loss) |
$ |
(0.2 |
) |
$ |
1.6 |
$ |
(7.7 |
) |
$ |
0.2 |
$ |
(0.0 |
) |
$ |
(9.2 |
) |
$ |
0.1 |
$ |
(0.0 |
) |
$ |
(0.3 |
) |
$ |
(1.7 |
) |
$ |
0.2 |
$ |
(6.1 |
) |
$ |
(9.2 |
) |
$ |
(1.8 |
) |
|||||
|
Excluding: |
|||||||||||||||||||||||||||||||||||||||||||
|
Curiosity and different earnings (expense), internet |
$ |
(0.0 |
) |
$ |
(0.1 |
) |
$ |
(0.1 |
) |
$ |
(0.1 |
) |
$ |
(0.1 |
) |
$ |
(0.2 |
) |
$ |
(0.2 |
) |
$ |
(0.2 |
) |
$ |
(0.2 |
) |
$ |
(0.2 |
) |
$ |
(0.2 |
) |
$ |
(0.3 |
) |
$ |
(0.6 |
) |
$ |
(0.5 |
) |
|
|
Revenue taxes expense (profit) |
$ |
(0.1 |
) |
$ |
0.1 |
$ |
(0.7 |
) |
$ |
0.2 |
$ |
0.2 |
$ |
(2.5 |
) |
$ |
(0.1 |
) |
$ |
0.2 |
$ |
0.0 |
$ |
(0.5 |
) |
$ |
0.1 |
$ |
(0.5 |
) |
$ |
(2.2 |
) |
$ |
(0.3 |
) |
|||||||
|
Depreciation and amortization |
$ |
0.8 |
$ |
0.8 |
$ |
0.9 |
$ |
0.8 |
$ |
0.8 |
$ |
0.8 |
$ |
0.6 |
$ |
0.3 |
$ |
0.4 |
$ |
0.3 |
$ |
0.2 |
$ |
3.3 |
$ |
2.5 |
$ |
0.9 |
|||||||||||||||
|
EBITDA |
$ |
0.5 |
$ |
2.4 |
$ |
(7.6 |
) |
$ |
1.0 |
$ |
0.9 |
$ |
(11.1 |
) |
$ |
0.4 |
$ |
0.3 |
$ |
(0.1 |
) |
$ |
(2.0 |
) |
$ |
0.3 |
$ |
(3.6 |
) |
$ |
(9.5 |
) |
$ |
(1.7 |
) |
||||||||
|
Changes: |
|||||||||||||||||||||||||||||||||||||||||||
|
Asset impairments and restructuring fees |
$ |
(0.2 |
) |
$ |
(1.8 |
) |
$ |
8.7 |
$ |
0.0 |
$ |
0.0 |
$ |
12.0 |
$ |
0.0 |
$ |
0.0 |
$ |
0.0 |
$ |
1.3 |
$ |
0.6 |
$ |
6.8 |
$ |
12.0 |
$ |
1.9 |
|||||||||||||
|
Inventory-based compensation |
$ |
0.6 |
$ |
0.8 |
$ |
0.6 |
$ |
0.6 |
$ |
0.5 |
$ |
0.7 |
$ |
0.5 |
$ |
0.5 |
$ |
0.4 |
$ |
0.6 |
$ |
0.3 |
$ |
2.5 |
$ |
2.1 |
$ |
1.3 |
|||||||||||||||
|
Transaction prices associated to enterprise mixture |
$ |
0.0 |
$ |
0.0 |
$ |
0.0 |
$ |
0.0 |
$ |
0.2 |
$ |
0.0 |
$ |
0.0 |
$ |
0.0 |
$ |
0.0 |
$ |
0.0 |
$ |
0.0 |
$ |
0.0 |
$ |
0.2 |
$ |
0.0 |
|||||||||||||||
|
Adjusted EBITDA |
$ |
1.0 |
$ |
1.4 |
$ |
1.7 |
$ |
1.6 |
$ |
1.5 |
$ |
1.5 |
$ |
0.9 |
$ |
0.8 |
$ |
0.3 |
$ |
(0.1 |
) |
$ |
1.2 |
$ |
5.7 |
$ |
4.7 |
$ |
1.5 |
||||||||||||||
*numbers might not add as a consequence of rounding
|
Reconciliation of GAAP Web Revenue (Loss) to Non-GAAP Web Revenue |
Q123 |
Q223 |
Q323 |
Q423 |
Q124 |
Q224 |
Q324 |
Q424 |
Q125 |
Q225 |
Q325 |
FY23 |
FY24 |
YTD |
|||||||||||||||||||||||||||||
|
GAAP Web Revenue (Loss) |
$ |
(0.2 |
) |
$ |
1.6 |
$ |
(7.7 |
) |
$ |
0.2 |
$ |
(0.0 |
) |
$ |
(9.2 |
) |
$ |
0.1 |
$ |
(0.0 |
) |
$ |
(0.3 |
) |
$ |
(1.7 |
) |
$ |
0.2 |
$ |
(6.1 |
) |
$ |
(9.2 |
) |
$ |
(1.8 |
) |
|||||
|
Changes: |
|||||||||||||||||||||||||||||||||||||||||||
|
Asset impairments and restructuring fees |
$ |
(0.2 |
) |
$ |
(1.8 |
) |
$ |
8.7 |
$ |
0.0 |
$ |
0.0 |
$ |
12.0 |
$ |
0.0 |
$ |
0.0 |
$ |
0.0 |
$ |
1.3 |
$ |
0.6 |
$ |
6.8 |
$ |
12.0 |
$ |
1.9 |
|||||||||||||
|
Inventory-based compensation |
$ |
0.6 |
$ |
0.8 |
$ |
0.6 |
$ |
0.6 |
$ |
0.5 |
$ |
0.7 |
$ |
0.5 |
$ |
0.5 |
$ |
0.4 |
$ |
0.6 |
$ |
0.3 |
$ |
2.5 |
$ |
2.1 |
$ |
1.3 |
|||||||||||||||
|
Transaction prices associated to enterprise mixture |
$ |
0.0 |
$ |
0.0 |
$ |
0.0 |
$ |
0.0 |
$ |
0.2 |
$ |
0.0 |
$ |
0.0 |
$ |
0.0 |
$ |
0.0 |
$ |
0.0 |
$ |
0.0 |
$ |
0.0 |
$ |
0.2 |
$ |
0.0 |
|||||||||||||||
|
Revenue tax impact on non-GAAP objects |
$ |
(0.1 |
) |
$ |
0.2 |
$ |
(1.3 |
) |
$ |
(0.1 |
) |
$ |
(0.2 |
) |
$ |
(2.9 |
) |
$ |
(0.1 |
) |
$ |
(0.1 |
) |
$ |
(0.1 |
) |
$ |
(0.4 |
) |
$ |
(0.2 |
) |
$ |
(1.3 |
) |
$ |
(3.3 |
) |
$ |
(0.7 |
) |
||
|
Non-GAAP Web Revenue (Loss) |
$ |
0.2 |
$ |
0.8 |
$ |
0.3 |
$ |
0.6 |
$ |
0.5 |
$ |
0.5 |
$ |
0.5 |
$ |
0.3 |
$ |
(0.0 |
) |
$ |
(0.2 |
) |
$ |
0.9 |
$ |
1.9 |
$ |
1.8 |
$ |
0.6 |
|||||||||||||
|
Non-GAAP primary EPS (loss per share) |
$ |
0.01 |
$ |
0.06 |
$ |
0.02 |
$ |
0.04 |
$ |
0.04 |
$ |
0.04 |
$ |
0.03 |
$ |
0.02 |
$ |
(0.00 |
) |
$ |
(0.01 |
) |
$ |
0.06 |
$ |
0.13 |
$ |
0.13 |
$ |
0.05 |
|||||||||||||
|
Non-GAAP diluted EPS (loss per share) |
$ |
0.01 |
$ |
0.06 |
$ |
0.02 |
$ |
0.04 |
$ |
0.04 |
$ |
0.04 |
$ |
0.03 |
$ |
0.02 |
$ |
(0.00 |
) |
$ |
(0.01 |
) |
$ |
0.06 |
$ |
0.13 |
$ |
0.13 |
$ |
0.05 |
|||||||||||||
|
Weighted common shares used to compute Non-GAAP primary earnings per share |
14.3 |
14.1 |
14.0 |
13.9 |
14.0 |
14.1 |
14.2 |
14.1 |
14.1 |
13.9 |
13.7 |
14.1 |
14.1 |
13.8 |
|||||||||||||||||||||||||||||
|
Weighted common shares used to compute Non-GAAP diluted earnings per share |
14.3 |
14.3 |
14.0 |
13.9 |
14.0 |
14.1 |
14.5 |
14.5 |
14.1 |
13.9 |
13.9 |
14.1 |
14.1 |
13.8 |
|||||||||||||||||||||||||||||
*numbers might not add as a consequence of rounding
|
Free Money Circulation Calculation |
Q123 |
Q223 |
Q323 |
Q423 |
Q124 |
Q224 |
Q324 |
Q424 |
Q125 |
Q225 |
Q325 |
FY23 |
FY24 |
YTD FY25 |
|||||||||||||||||||||||||||||
|
Money Circulation from Operations |
$ |
1.1 |
$ |
0.0 |
$ |
1.6 |
$ |
0.4 |
$ |
1.3 |
$ |
1.6 |
$ |
2.3 |
$ |
0.7 |
$ |
1.2 |
$ |
0.7 |
$ |
0.9 |
$ |
3.2 |
$ |
5.9 |
$ |
2.7 |
|||||||||||||||
|
Capital Expenditures |
$ |
0.3 |
$ |
0.4 |
$ |
0.4 |
$ |
0.3 |
$ |
0.4 |
$ |
0.4 |
$ |
0.2 |
$ |
0.2 |
$ |
0.2 |
$ |
0.1 |
$ |
0.1 |
$ |
1.5 |
$ |
1.2 |
$ |
0.4 |
|||||||||||||||
|
Free Money Circulation |
$ |
0.7 |
$ |
(0.3 |
) |
$ |
1.2 |
$ |
0.1 |
$ |
0.8 |
$ |
1.2 |
$ |
2.1 |
$ |
0.5 |
$ |
1.0 |
$ |
0.6 |
$ |
0.8 |
$ |
1.7 |
$ |
4.7 |
$ |
2.4 |
||||||||||||||
SOURCE: Zedge, Inc.
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