Zedge, Inc. (NYSE AMERICAN:ZDGE) today announced results for the
second quarter of its fiscal year 2018, the three months ended
January 31, 2018.
Second Quarter FY 2018 Operational and
Financial Highlights
(Results are for the 2nd quarter FY 2018 and are compared to the
2nd quarter FY 2017 except where otherwise noted.)
- MAU (Monthly Active Users) for the last
30 days of the quarter increased 6.3% to 35.5 million from 33.4
million in the comparable period of 2017 driven primarily by strong
growth in the emerging markets;
- Total installs at January 31, 2018
increased 24.3% to 306.2 million from 246.3 million;
- Quarterly revenue increased 18.4% to
$3.04 million from $2.57 million;
- Average revenue per MAU derived from
our apps (ARPMAU) increased 15.2% for the quarter to $0.0273 from
$0.0237, the sixth consecutive quarter of improvement;
- Selling, General and Administration
(SG&A) expense increased 11.8% to $2.59 million from $2.31
million. The FY18 spend included $469 thousand of costs incurred in
connection with the launch of Zedge Premium and severance.
Excluding those costs, SG&A would have decreased, mainly
attributable to the cost reduction initiative implemented as of
November 1, 2017;
- Loss from operations during the quarter
was $122 thousand, compared to a loss of $338 thousand. Excluding
severance, income from operations would have been $52
thousand;
- Zedge Premium, our marketplace offering
that was launched on iOS in December 2017, is currently being
rolled out on Android. Initial conversion rates specific to
monetizable actions are positive;
- Net loss per share of $0.02 in the 2nd
quarter of FY 2018 compared to net loss per share of $0.03.
Management Remarks
“Q2 2018 was a solid quarter for Zedge with continued
improvements in revenue, user growth and ARPMAU. Zedge Premium,
which was introduced to iOS users in December, is off to a good
start with encouraging conversion rates, which, while it is still
very early, have steadily been improving. Furthermore, Zedge
Premium is close to being fully rolled out on Android giving us
scale. As previously indicated, building the marketplace will be an
iterative process and we are happy with the experience thus far,”
said Tom Arnoy, CEO.
“We grew MAU by more than 2 million in the past quarter with the
overwhelming majority of this growth in the emerging markets. Our
growth strategy calls for optimizing the product for both well
developed economies where advertising rates and disposable income
are higher as well as in emerging markets where we have access to
an untapped market. To this end, we rolled out an Android Go
compliant version of Zedge to capitalize on this segment. Android
Go is a version of Google’s operating system crafted for low-end
Android phones, which are becoming prevalent in certain emerging
markets. Our goal is to use the combination of Zedge Premium,
ongoing improvements in the flagship product and new content
offerings to draw more users into the app resulting in continued
user growth and improved monetization.”
Jonathan Reich, CFO and COO of Zedge, said, “Our focused
approach continues serving us well. Year over year, SG&A
increased 11.8% to $2.59 million from $2.31 million, primarily
attributable to the costs incurred in connection with Zedge Premium
and severance totaling $469 thousand. The cost cutting measures we
implemented, including headcount reduction, have trimmed SG&A
spend outside of those two items. We are excited by the
opportunities that we see ahead of us, will continue investing
propitiously in order to turn these into reality and manage our
expenses to drive shareholder value.”
Financial Results by Quarter (in
thousands of USD, other than Loss per Share and
ARPMAU)
Q2 Q2 % Change Q2 Q1 %
Change FY '18 FY '17
DELTA FY '18 FY
'18 DELTA Revenue $ 3,045 $ 2,572 $ 473
18.4 % $ 3,045 $ 2,659 $ 386 14.5 % Direct Cost of Revenue $ 356 $
412 ($56 ) -13.6 % $ 356 $ 372 ($16 ) -4.3 % Total SG&A $ 2,586
$ 2,314 $ 272 11.8 % $ 2,586 $ 2,972 ($386 ) -13.0 % Depreciation
& Amortization $ 225 $ 184 $ 41 22.3 % $ 225 $ 157 $ 68 43.3 %
Loss from Operations ($122 ) ($338 ) $ 216 -63.9 % ($122 ) ($842 )
$ 720 -85.5 % Net (Loss)/Gain from FX & Other ($39 ) ($10 )
($29 ) 290.0 % ($39 ) $ 8 ($47 ) -587.5 % Provision for (benefit
from) income taxes $ 12 ($22 ) $ 34 -154.5 % $ 12 ($14 ) $ 26
-185.7 % Net Loss ($173 ) ($326 ) $ 153 -46.9 % ($173 ) ($820 ) $
647 -78.9 % Loss Per Share (0.02 ) ($0.03 ) $ 0.01 -33.3 % ($0.02 )
($0.08 ) $ 0.06 -75.0 % Total Current Assets Less Total Current
Liabilities $ 4,353 $ 5,807 $ (1,454 ) -25.0 % $ 4,353 $ 4,242 $
111 2.6 % MAU (Million) 35.5 33.4 2.1 6.3 % 35.5 33.4 2.1 6.3 %
Total Installs (Million) 306.2 246.3 59.9 24.3 % 306.2 288.8 17.4
6.0 % ARPMAU $ 0.0273 $ 0.0237 $
0.0036 15.2 % $ 0.0273 $
0.0256 $ 0.0017 6.6 %
Earnings Announcement and Supplemental
Information
Zedge will host a conference call at 8:00 AM ET today, March 13,
beginning with management’s discussion of results, outlook and
strategy followed by Q&A with investors.
To participate in the call, please dial toll-free 1-888-317-6003
(US toll free) or 1-412-317-6061 (outside the U.S.) at least five
minutes before the 8:00 AM Eastern start, ask for the Zedge
earnings conference call, and enter the conference ID:
4461588
The call will be webcast through this URL:
https://services.choruscall.com/links/zdge180313AmrTm8pl.html
Following the call and continuing through Tuesday, March 20th, a
call replay will be available through the Zedge investor relations
website and by dialing 1-877-344-7529 (US toll free), or
1-412-317-0088 (outside the U.S) and entering the replay access
code: 10117223
Forward Looking
Statements
All statements above that are not purely about historical facts,
including, but not limited to, those in which we use the words
“believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,”
“target” and similar expressions, are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. While these forward-looking statements represent our
current judgment of what may happen in the future, actual results
may differ materially from the results expressed or implied by
these statements due to numerous important factors. Our filings
with the SEC provide detailed information on such statements and
risks, and should be consulted along with this release. To the
extent permitted under applicable law, we assume no obligation to
update any forward-looking statements.
About Zedge
Zedge is a content platform, and global leader in smartphone
personalization, with more than 300 million app installs and over
35 million monthly active users. People use Zedge to make their
smartphones more personal; to express their emotions, tastes and
interests using wallpapers, icons, widgets, ringtones and more. The
Zedge platform enables brands, artists and creators to share their
smartphone personalization content with their fans in order to
extend their reach, reinforce their message and gain valuable
insight into how customers interact with their content.
ZEDGE, INC. CONSOLIDATED BALANCE SHEETS
(Unaudited) January 31, July
31, 2018 2017 (in thousands, except par
value) Assets Current assets: Cash and cash equivalents
$ 4,160 $ 4,580 Trade accounts receivable, net of allowance for
doubtful accounts of $0 at January 31, 2018 and July 31, 2017 1,819
1,712 Prepaid expenses 284 315 Other current assets 320
427 Total current assets 6,583 7,034 Property
and equipment, net 3,098 2,678 Goodwill 2,586 2,518 Other assets
299 301 Total assets $ 12,566 $
12,531
Liabilities and stockholders’ equity Current
liabilities: Trade accounts payable $ 277 $ 33 Accrued expenses
1,944 1,840 Due to IDT Corporation 9 36
Total current liabilities 2,230 1,909
Total liabilities 2,230 1,909
Commitments and contingencies Stockholders’ equity: Preferred
stock, $.01 par value; authorized shares—2,400; no shares issued -
- Class A common stock, $.01 par value; authorized shares—2,600;
525 shares issued and outstanding at January 31, 2018 and July 31,
2017 5 5 Class B common stock, $.01 par value; authorized
shares—40,000; 9,532 and 9,123 shares issued and outstanding at
January 31, 2018 and July 31, 2017, respectively 95 91 Additional
paid-in capital 22,048 21,446 Accumulated other comprehensive loss
(482 ) (584 ) Accumulated deficit (11,330 ) (10,336 )
Total stockholders’ equity 10,336 10,622
Total liabilities and stockholders’ equity $ 12,566 $
12,531
ZEDGE, INC. CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)
Three Months Ended Six Months
Ended January 31, January 31, 2018
2017 2018 2017 (in
thousands, except per share data) (in thousands, except per
share data) Revenues $ 3,045 $ 2,572 $ 5,704 $ 4,955
Costs and expenses: Direct cost of revenues (exclusive of
amortization of capitalized software and technology development
costs included below) 356 412 728 780 Selling, general and
administrative 2,586 2,314 5,558 4,070 Depreciation and
amortization 225 184 382 322 Write-off of capitalized software and
technology development costs - - -
9 Loss from operations (122 ) (338 ) (964 )
(226 ) Interest and other income 4 7 14 8 Net (loss) gain resulting
from foreign exchange transactions (43 ) (17 ) (45 )
33 Loss before income taxes (161 ) (348 ) (995 ) (185
) Provision for (benefit from) income taxes 12
(22 ) (2 ) (21 ) Net loss (173 ) (326 ) (993 ) (164 ) Other
comprehensive income (loss): Changes in foreign currency
translation adjustment 239 (14 ) 102
59 Total other comprehensive income (loss) 239
(14 ) 102 59 Total comprehensive
income (loss) $ 66 $ (340 ) $ (891 ) $ (105 ) Loss per share
attributable to Zedge, Inc. common stockholders: Basic and diluted
$ (0.02 ) $ (0.03 ) $ (0.10 ) $ (0.02 ) Weighted-average number of
shares used in calculation of loss per share: Basic and diluted
9,749 9,413 9,703
9,337
ZEDGE, INC. CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended January 31, 2018
2017 (in thousands) Operating
activities Net loss $ (993 ) $ (164 ) Adjustments to reconcile
net loss to net cash provided by operating activities: Depreciation
and amortization 382 322 Deferred income taxes 6 5 Stock-based
compensation 272 143 Write-off of capitalized software and
technology development costs - 9 Stock issued to FreeForm
noteholders 242 - Change in assets and liabilities: Trade accounts
receivable (107 ) 51 Prepaid expenses and other current assets 138
(258 ) Other assets (4 ) (2 ) Trade accounts payable and accrued
expenses 344 335 Due to IDT Corporation (27 ) (222 ) Deferred
revenue - (14 ) Net cash provided by operating
activities 253 205
Investing activities Capitalized software
and technology development costs and purchase of equipment
(798 ) (757 ) Net cash used in investing activities (798 )
(757 )
Financing activities Proceeds from exercise of stock
options 91 166 Net cash provided by
financing activities 91 166 Effect of exchange rate changes on cash
and cash equivalents 34 12 Net decrease
in cash and cash equivalents (420 ) (374 ) Cash and cash
equivalents at beginning of period 4,580 5,978
Cash and cash equivalents at end of period $ 4,160 $
5,604
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180313005228/en/
Zedge, Inc.Jonathan Reichir@zedge.net
Grafico Azioni Zedge (AMEX:ZDGE)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Zedge (AMEX:ZDGE)
Storico
Da Dic 2023 a Dic 2024