Zedge (ZDGE) 16 Dec 242025 Q1 Earnings call transcript

Good day, and welcome to Zedge's Earnings Conference Call for the First Quarter Fiscal 2025 Results. [Operator Instructions] I will now turn the call over to Brian Siegel. Sir, the floor is yours.

Thank you, operator.

During today's call, Jonathan Reich, Zedge's Chief Executive Officer; and Yi Tsai, Zedge's Chief Financial Officer, will discuss Zedge's financial and operational results that were reported today. Any forward-looking statements made during this conference call during the prepared remarks, or in the question-and-answer session, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results in the future to differ materially from those discussed on today's call. These risks and uncertainties include, but are not limited to, specific risks and uncertainties disclosed in Zedge's periodic SEC filings. forecast. Please to that forward-looking to the may from Form that the obligation update or differ with Investor no earnings X-K also those factors our been the the cause they and Relations assumes page update available Zedge statements any to materially release of Zedge is that website on has note SEC. actual on results filed

and these EPS, adjusted we call, use measures. non-GAAP will earnings net non-GAAP for our income Please Finally, explanation on this release EBITDA. Examples non-GAAP our non-GAAP see of include an use measures. of

I'd over to Now Jonathan. the to like turn call

Good morning. and for sustainable XXXX you fiscal with all Thank an long-term eye growth. positioning joining Zedge innovation, thank efficiencies for us toward today. operational entered Brian, you, We driving and improving

demonstrate capabilities, growing experiences. powerful XD quarter rewarded creation and and also introduced including a which interactive continues launch due quarter Marketplace contributed Parallax of to highlight performance charge presented bolstered overall in made advancements video which subscriptions, enhancements. These Zedge gross the photo key X.X new to deliver Premium personalized, over AI-powered the demand grew the in AI Lifetime the year-over-year to portfolio was or by CPM positive X% strong accelerated year. The and during in with increase wallpapers, ability pAInt products surging challenges, we've year-over-year, Zedge revenue of value, our Subscription image our of some our the of editing of real-time to subscriber for momentum results an areas innovative course in digital XX% Although across image XX% the fiscal optimizations and reaffirm ecosystem. growth GTV, our transaction confidence our the the to the combination a counts. lead

user profiles. monthly in notable XX% this in with attracting users higher-value achievement reflecting active average revenue was success quarter ARPMAU, or increase Another per the our

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users success is testament with strategy. continued Our to this iOS a

For growth effectively meanwhile, for the features the pivotal enable enthusiasts Emojipedia, users, growth. monetizing the we and its growth. all sustainable redesign believe stage. the emoji as of destination continued we expansion By at those website groundwork Emoji will reputation focusing for revenue worldwide and new user that laying a anticipated further GuruShots, is are Playground drive the on and sustain premier

made $XX developing These growth. long-term exemplify WishCraft us iterate like to position AI presented and ability and the shareholder turn call committed opportunities health authorization in ahead, that smart deliver top development can strong positioned the line, progress in remain across all of of products innovate we Yi adapt wishing new our new we've over capital promising value. In remain the key to and quarter allocation. With holiday to drive underscores first incremental ideas. program, repurchase continue while well prioritize and business challenges, detail. season our confident we wins to I'll on fuel million financial we successes. share in and Yi? From with areas to to and to our some and now that, We the innovate, a a summary, cash uncover strategy financials on very execute. about standpoint, long-term our particularly others over projects to the discuss a peace. With our opportunities and in happy a and to more equivalents, Finally, cash ability rapidly $X million are Initiatives breakthrough the Master sheet Art balance excited

year. for GTV up revenue record versus GuruShots. Subscription are XX% another net $XXX,XXX, was continued which X.X% is last growth advertising to revenue GuruShots, grew they growth up only higher-value $X.X cost challenges subscriber the and which year, XX% mainly revenue trend XX% still Plus nearly legacy mostly million, continue Unfortunately, in sequentially but subscription, mentioned quarter to up and faced decline of seeing Android quarter ARPMAU and under and achieved not lower for quarter up the only revenue challenges revenue quarter was Jonathan. that the you, subscription roughly $X.XXX. for at straight our quarterly sixth goods and iOS for we Premium value-added year-over-year year-on-year replace our from was reported and services advertising offset the Despite improve ad. Zedge by the quarter. due in X% Zedge the last the year-over-year first the Thank transition to offering active organic also removed XX% Total continued Jonathan in was the to at

the on early see was the of increased quarter, user. leverage releases for business these This acquisition, to Cost we to new based related Given the general, growth In as absolute but declines million positive the on mainly quarter. revenue optimistic marketing SG&A increase return driven higher revenue were the scale, operating roughly during we year-over-year expect player by that are by to anticipated, XX% flat returns paid to X% basis. an was strategy expenses we to $X.X rebound. cautiously of future prioritize will the soon. from new

our subscription. carry an model fee case align. the don't near-term a costs also lifetime platform subscription is revenue subscription, higher annual and Additionally, This higher which has especially as for expenses than

was year. GAAP quarter to years, $X.X a even the of were As share compared from in loss ] the prior income for quarter basis, XXX% year. operations the year. last million EBITDA to $X.X recognized platform we operations although non-GAAP margin. the breakeven net year. Adjusted loss loss quarter X.X for net $X.X last $X.X $X.X and fee and million versus non-GAAP and expands is of break immediately million the EPS and in prior operating while $X.XX for On from income [ million revenue million a million GAAP $X.XX compared over per with to was $X.X will compared

nearly of cash million cash a finished decreased cash in equivalents. our due XX% and XXXX. last year From Now that added impairment intangibles we standpoint, over $XXX,XXX the liquidity balance versus QX or in with and fiscal quarter a sheet little to of the to D&A $XX

quarter, fully Board program million the prior completing new the repurchase authorized During the buyback. after a $X share approved

in again commence listening Operator, you quarter call, call earnings look and in December. Thank first to mid-March. you for our back new to speaking second with for to you under Q&A. I our to forward expect quarter We repurchasing a on program

[Operator from with Instructions] coming Klee is Allen Maxim Group. Our first question

months broken for payer GuruShots XX-K monthly $X.X players know for you quarter last July, active revenue -- your out X was and numbers today monthly you for like In was this active average for $XX.XX. Do for had where those per what XX are the ending July the quarter. million,

you my it's and got temporarily. Allen, dropped please? overseas line I'm question, Jonathan. I'm sorry, the Can repeat

what GuruShots, for we for were monthly know the what the Do month -- Yes. quarter quarter? the active the payers we for

I recall, that have in we shared past. number the not If

So that. off-line we will speak on and back you to get

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do shutting not, there that good point, at believe down. rationale We GuruShots is Sure. this a to

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to Is that resolved. there was quarter impact some issues had? the You a the that results what way impacted mentioned in of type quantify that press you the that there release subsequently coding in

testing in it the quantified have for we of X their terms terms that items platform spend of advertiser in our number -- impacted issues suffice our longer the shared the that mediation coding of new that mix us. So all and issue again, bug. platform unearthed in value have coding were internally. All those it We, mirror. had addition incremental say We a publicly. an mentioned the But those took to not rearview in are of

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great. That's

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bottom plan EBITDA Do Okay. to the you try line based positive your manage on... adjusted about and to to think remain SG&A

in opinion, which investment. multiples put spend will to of growth I for reasonable will The that our a opportunity, back into remainder over to -- Yes. The negative that current marketing a answer or the would, materially year. customer would territory resounding us us be of scale if that is And but that generate would positive feel saw we EBITDA to good we that the period order this be require I EBITDA in that shouldn't say yes. some some incredible territory, time only today in only -- fiscal

based upon just business. standard However,

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them items X you kind Any beta? in about Master. are and beta, Wishcraft moving of of terms how you're update of that Art AI out on them In mentioned feeling

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it. Got

bright In spot, terms a of subscriptions, which X things. was

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back buy you Did Okay. quarter? stock the during any

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For the -- able strong outlook, have or do commentary there be you what about is next mentioned revenue Is think -- like okay, you you for any thinking your quarter quarter. seasonally your you've on to do you're adjusted EBITDA? grow

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advertising can rates you of your strength things say at for those you monthly potentially hard the that factors or of I to maybe what rates you continue on them? excel the kind how would improve the in One it's key is active know but forecast, users. are

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Sure.

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started online, of users and have only we the quarters. buying the also with the that avail to content that in, not be ability invest to We something through to app, also expect in upcoming continue will

we As this Instructions] concludes question-and-answer our session presentation, further questions, today's have attending conference and [Operator no and call. now Thank for disconnect. you may you