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Zedge Uses Cash Flow From Operations For Early Pay Off of Outstanding Debt
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Zedge, Inc. (NYSE American:ZDGE) announces the early payoff of a $2 million principal balance on its bank term loan on November 15, 2023. The company's net cash and cash equivalents increased to approximately $16.7 million, up from $16.1 million as of July 31, 2023, or $1.18 per share. Zedge CEO Jonathan Reich cited recent positive events, strong cash flow generation, and termination of potential earnout payment obligation as reasons for the early debt payoff.
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Closes out term loan with $2 million early principal payment
Net cash and cash equivalents after debt payoff were approximately $16.7 million, up from $16.1 million as of July 31, 2023
NEW YORK, NY / ACCESSWIRE / December 4, 2023 / Zedge, Inc. (NYSE American:ZDGE), a leader in building marketplaces and games around digital content that enables self-expression, today announced the early payoff of the $2 million principal balance on its bank term loan on November 15, 2023. The Company also noted that despite the paydown, the Company's net cash and cash equivalents were approximately $16.7 million after the payoff, or $1.18 per share, an increase from $16.1 million reported as of July 31, 2023.
Zedge CEO Jonathan Reich commented, "Given recent positive events, including our solid fourth quarter earnings report, continued cash flow generation and the termination of any potential earnout payment obligation to the prior owners of Gurushots, we felt that we were in a strong enough position to pay down our debt early and avoid the costs associated with that borowing. As we discussed on our fourth quarter earnings call, we are encouraged by the traction we are seeing in several of our initiatives, including our Zedge+ subscription offering and Emojipedia business. We will provide investors with a full update when we report our first quarter earnings on December 13."
About Zedge:Zedge builds marketplaces and games around digital content people use to express themselves. We monetize our user base through advertising, subscriptions, and a virtual token-based economy. Our leading products are the GuruShots photography game and Zedge's freemium digital content marketplace, which today offers mobile phone wallpapers, video wallpapers, ringtones, and notification sounds. The synergy between the game and the marketplace unlocks additional engagement and enables our community to earn money from their artwork. We also own Emojipedia, a website that is the leading source of information about emojis. In July 2023, we served more than 40 million users.
For more information, visit: investor.zedge.net
Contact: Brian Siegel, IRC, MBA Senior Managing Director Hayden IR (346) 396-8696 ir@zedge.net
Zedge, Inc. (NYSE American:ZDGE) announced the early payoff of the $2 million principal balance on its bank term loan on November 15, 2023.
What is the current net cash and cash equivalents of Zedge after the debt payoff?
Zedge's net cash and cash equivalents were approximately $16.7 million after the payoff, or $1.18 per share, an increase from $16.1 million reported as of July 31, 2023.
Why did Zedge decide to pay down its debt early?
Zedge CEO Jonathan Reich cited recent positive events, including solid fourth quarter earnings, continued cash flow generation, and the termination of potential earnout payment obligation as reasons for the early debt payoff.
When will Zedge provide investors with a full update?
Zedge will provide investors with a full update when they report their first quarter earnings on December 13.
zedge is a content platform, and global leader in smartphone personalization, with more than 250 million app installs and 33 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