Zedge Inc ( (ZDGE) ) has released its Q1 earnings. Here is a breakdown of the information Zedge Inc presented to its investors.
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Zedge Inc., a digital marketplace and interactive games company, is known for enabling creativity and self-expression through its diverse suite of products including mobile phone wallpapers and an AI image maker. In its first quarter of fiscal 2025, Zedge reported a 1.6% increase in total revenue, reaching $7.2 million, while subscription revenue grew by 21%. The company highlighted a significant 62% rise in Zedge Premium’s Gross Transaction Value, attributed to innovative features like parallax wallpapers and the AI image generator, pAInt. Despite facing advertising challenges, Zedge remains optimistic about future growth, driven by enhancements in its product offerings and strategic marketing efforts.
Key financial metrics showed mixed results, with a GAAP operating loss of $0.5 million compared to a previous operating income of $0.3 million. The company’s adjusted EBITDA decreased by 81.2% to $0.3 million. The number of active subscriptions increased by 7.7%, reflecting a solid subscription base, while the Average Revenue per Monthly Active User rose by 22%. Zedge also noted a strong performance from Emojipedia, with a 33% increase in revenue year-over-year, affirming its strategic value.
Zedge continues to focus on transforming its users into content creators, aligning with the Creator Economy. The upcoming launch of pAInt 2.0 and AI audio capabilities are part of its strategy to enhance user engagement. The company is also set to introduce new features to its GuruShots game, aiming to boost user acquisition and retention. Zedge’s commitment to innovation is further demonstrated by its beta projects, Wishcraft and AI Art Master, which are expected to drive long-term growth.
Looking ahead, Zedge anticipates improvements in the second quarter, supported by seasonal trends and the resolution of first-quarter challenges. The company is poised to leverage its foundation for growth across all business units, with a focus on integrating generative AI to enrich user experiences. The strategic alignment of innovative products and targeted marketing is expected to position Zedge for continued success in the dynamic digital marketplace.
