Release Date: December 16, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Subscription revenue grew 21% year over year, with an 8% increase in overall subscriber counts.
- Zedge Premium's gross transaction value surged 62% year over year, driven by new features and optimizations.
- Emojipedia achieved a 33% revenue increase, marking its highest ever quarterly results.
- The company has over $20 million in cash and cash equivalents, supporting a strong balance sheet.
- A $5 million share repurchase program has been authorized, indicating confidence in long-term shareholder value.
Negative Points
- Advertising revenue faced challenges due to a temporary bug, delays with an ad partner, and integration complexities.
- GuruShots experienced a 32% year-over-year revenue decline, impacting overall results.
- SG&A expenses increased by 24% due to higher marketing expenses, affecting profitability.
- GAAP loss from operations was $0.5 million for the quarter, compared to income from operations last year.
- Adjusted EBITDA decreased to $0.3 million from $1.5 million in the prior year, reflecting financial pressures.
Q & A Highlights
Q: Can you provide the current figures for monthly active payers and average revenue per monthly active payer for GuruShots?
A: Jonathan Reich, CEO: We haven't shared those specific numbers publicly. However, we are focusing on transforming GuruShots to improve its growth trajectory and are optimistic about its future performance.
Q: How significant was the impact of the coding issue on your quarterly results, and has it been resolved?
A: Jonathan Reich, CEO: The coding issue, along with other challenges, was significant but has been resolved. These were one-time issues, and we are not facing ongoing struggles from them.
Q: Will you manage SG&A to remain adjusted EBITDA positive?
A: Jonathan Reich, CEO: Yes, we aim to be EBITDA positive for the rest of the fiscal year. We would only consider going negative if there was a significant growth opportunity that justified increased marketing spend.
Q: What is the status of WishCraft and AI Art Master, and when might they move out of beta?
A: Jonathan Reich, CEO: Both remain in beta as we rigorously test them to ensure they can scale and generate returns. We are cautious about optimizing them before full release.
Q: Can you explain the benefits of lifetime subscriptions and how they impact financials?
A: Jonathan Reich, CEO: Lifetime subscriptions provide upfront revenue and are amortized over the expected customer lifetime. They offer value to customers and are beneficial from a cash flow perspective, despite the upfront costs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
