Zedge (ZDGE) Q4 2024 earnings summary

Executive summary

• Achieved 14% year-over-year revenue growth in Q4 to $7.6 million and 11% for the full year, reaching $30.1 million in revenue.

• Subscription revenue rose 31% in Q4 and 25% for the year; ARPMAU hit a record $0.079, up 43% year-over-year.

• Zedge Premium's GTV increased 56% in Q4 and 39% for the year, with iOS revenue nearly 10x higher.

• Cash and cash equivalents grew over 10% to $20 million, even after stock repurchases and loan repayment.

• Stock price appreciated 71% year-over-year, leading to inclusion in the Russell Microcap Index.

Financial highlights

• Q4 revenue: $7.6 million, up 14% year-over-year; full-year revenue: $30.1 million, up 11%.

• Advertising revenue up 13% in Q4 and 15% for the year; subscription revenue up 31% in Q4 and 25% for the year.

• Zedge Premium GTV: $600,000 in Q4 (up 56%), $2.1 million for the year (up 39%).

• GAAP net loss for the year: $9.2 million, or $0.65 per share, impacted by a $12 million non-cash write-down.

• Adjusted EBITDA for the year: $4.7 million, down from $5.7 million last year.

Outlook and guidance

• Fiscal 2025 focus on scaling businesses, expanding generative AI features, and converting users into content creators.

• Continued investment in generative AI and modular technology platform to drive agility and growth.

• Plans to introduce AI audio creation tools and further develop Wishcraft, AI Art Master, and Emojipedia's AI-driven features.

• GuruShots strategy prioritizes new user growth, onboarding, and PvP features.

• Commitment to smart capital allocation and share repurchases.