Zedge Stock Price, News & Analysis

Zedge (ZDGE) reported Q2 fiscal 2025 results with mixed performance. Revenue declined 10.2% to $7.0 million, primarily due to TikTok's reduced U.S. ad spend and its temporary removal from app stores. Despite challenges, the company saw positive trends in key metrics: Zedge Marketplace active subscribers and subscription revenue grew 22% and 13% respectively, while Premium GTV increased 27%.

The company announced a strategic restructuring, including a 22% global workforce reduction, expected to save approximately $4 million annually. The quarter showed a GAAP operating loss of ($2.2) million, including non-cash restructuring charges of ($1.3) million. Free cash flow remained positive at $0.6 million, and the company repurchased 244,826 shares.

Management expressed cautious optimism for Q3, citing TikTok's market reentry driving higher CPMs and the introduction of new ad units. The company continues to focus on AI creation features and user engagement across its platforms, including the Zedge Marketplace and Emojipedia.

Zedge (NYSE American:ZDGE) has announced it will release its second fiscal quarter 2025 financial results on March 12, 2025 at approximately 4:10 PM Eastern. The results, covering the period ending January 31, 2025, will be filed on Form 8-K and posted on the company's investor relations website.

Management will host an earnings conference call at 4:30 PM Eastern, followed by an investor Q&A session. The call will be accessible via toll-free numbers in the US (888-506-0062) and internationally (973-528-0011) using participant code 257316.

Zedge operates multiple platforms including the Zedge Marketplace, a freemium marketplace for mobile customization content, GuruShots, a photography game platform, and Emojipedia, an emoji reference website. The company serves millions of consumers and creators monthly through its ecosystem of creative and e-commerce platforms.

Zedge (ZDGE) announced extensive restructuring initiatives aimed at reducing annual costs by $3.9-$4.1 million. The plan includes closing Norwegian operations and previous workforce reductions at GuruShots, resulting in a 22% total workforce reduction. The company expects annualized compensation-related savings of $2.6 million, plus $0.1-$0.3 million in non-employee cost reductions.

Additional savings of $1.2 million will come from completing scheduled GuruShots acquisition-related retention bonus payments. The company reported generating $30 million in revenue and $4.7 million in free cash flow in FY24. The restructuring charges will be reflected in Q2 and Q3 fiscal results ending January and April 2025. Operations will be consolidated in Lithuania and Israel, with implementation of cost-saving measures beginning in Q3 and Q4.

Zedge (NYSE:ZDGE) announced a corporate restructuring focused on improving profitability, primarily affecting its GuruShots division. The restructuring includes a 14% reduction in global workforce, expected to generate approximately $1.7 million in pre-tax annual cost savings.

The company is implementing 'GuruShots 2.0', a comprehensive overhaul of the photography game platform, aimed at enhancing player experience and monetization. Key initiatives include improving the user interface, reassessing gaming technology infrastructure, and reducing player acquisition spending for the remainder of fiscal 2025.

Most restructuring charges will be reported in the second (ending January 31, 2025) and third (ending April 30, 2025) fiscal quarters. The company aims to bring GuruShots closer to breakeven while developing its new strategy, only maintaining marketing spend for campaigns with attractive Return on Ad Spend metrics.

Zedge (ZDGE) reported mixed Q1 fiscal 2025 results with revenue increasing 1.6% to $7.2 million. Key highlights include: Zedge Marketplace subscription revenue growing 21% year-over-year with an 8% increase in subscribers, Zedge Premium's GTV surging 62%, and Emojipedia delivering record revenue up 33% year-over-year.

The company faced advertising challenges due to a temporary coding error and changes in ad partnerships. GAAP operating loss was ($0.5) million compared to $0.3 million income last year. The company anticipates significant improvements in Q2 2025 driven by holiday seasonal strength and resolution of Q1 challenges. Management highlighted ongoing integration of generative AI features, including the beta launch of AI Emoji Generator and planned addition of AI audio capabilities.

Zedge has announced it will release its first fiscal quarter 2025 financial and operational results on December 16, 2024. The earnings release will be available on Form 8-K and the company's investor relations website at 6:30 AM Eastern. Management will host an earnings conference call at 10 AM Eastern, followed by a Q&A session with investors.

Zedge operates multiple platforms including the Zedge Marketplace, a freemium marketplace for mobile customization content, GuruShots, a photography game platform, and Emojipedia, an emoji reference website. The company serves tens of millions of consumers and creators monthly through its ecosystem of creative and e-commerce platforms.

Zedge (NYSE:ZDGE) announced the launch of Emojipedia's new AI Emoji Generator within its Emoji Playground platform. This free tool allows users to create custom emojis by providing text descriptions, with the AI generating corresponding emoji designs. Users can choose between Microsoft's 3D Fluent Emoji or Google's Noto Color Emoji styles, and easily share their creations across platforms like iMessage, WhatsApp, Slack, and Discord. The feature expands Emojipedia's existing offerings, which include the Emoji Mashup Bot and emoji-based quizzes, with more features planned for 2025.

Zedge announced significant updates to its Marketplace website, enabling users to purchase premium wallpapers directly using Zedge Credits. The new system allows customers to avoid third-party app store fees, providing better value for their purchases. The website upgrade features a modernized interface that aligns with the mobile app experience. Key features include direct premium wallpaper purchases, enhanced credit value compared to in-app purchases, and a refreshed design. The company plans to expand direct purchase functionality to include ringtones and live wallpapers in upcoming months.

Zedge reported Q4 fiscal 2024 results with 14.3% revenue growth to $7.6 million. Key highlights include 31% growth in Marketplace subscription revenue and 56% increase in Premium Gross Transaction Value. Full-year revenue grew 10.5% to $30.1 million. The company reported a GAAP operating loss of $11.8 million for FY2024, including $12.0 million in non-cash write-downs. Cash flow from operations increased 85% to $5.9 million. The company's stock gained 71% during fiscal 2024, leading to inclusion in the Russell Microcap Index. For FY2025, Zedge plans to focus on AI integration, product innovation, and user conversion from consumers to creators.