Release Date: June 10, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Q3 revenue increased by 14% year-over-year, driven by strong performance in the Zedge Marketplace.
- Ad revenue grew by 20% from last year, and Zedge+ subscription revenue increased by 35%.
- Zedge Premium's gross transaction value (GTV) rose by 44%, indicating successful content and monetization improvements.
- The company achieved a record average revenue per monthly active user (ARPMAU) of $0.074, up 39% year-over-year.
- Significant progress in building a full-stack marketing team, which is expected to drive future growth.
Negative Points
- Monthly active users (MAU) decreased to 27.7 million in April, indicating a decline in user engagement.
- GuruShots' revenue fell by 20% year-over-year, impacted by Apple's ATT framework, macroeconomic issues, and geopolitical unrest.
- SG&A expenses increased by 35% to $6.8 million, driven by higher marketing costs.
- Adjusted EBITDA decreased to $0.9 million from $1.7 million in the prior year.
- Emojipedia underperformed due to issues with a website redesign, which did not yield the expected outcomes.
Q & A Highlights
Q: For GuruShots, could you clarify the revenue for the quarter?
A: It's $0.9 million. This is included in the digital goods and services category. β Yi Tsai, CFO
Q: What is the plan for adding new features to GuruShots that could cause a 10% to 30% jump in revenue?
A: We are focusing on three major areas: onboarding, game economy, and progression dynamics. The new onboarding experience is in beta for 25% of our Android audience, and we plan to roll out a new coin-based economy later this month. Progression mechanics will be addressed after these rollouts. β Jonathan Reich, CEO
Q: Are there any new features that you'll be adding in the next three months?
A: The onboarding process is a feature-driven experience aimed at simplifying the initial user interface and gradually introducing complexity. This is considered a significant feature enhancement. β Jonathan Reich, CEO
Q: Could you talk about the focus of your paid marketing efforts?
A: Paid marketing is primarily focused on user acquisition for both Zedge and GuruShots, tied to return on ad spend and aligned with feature releases and improvements in the app. β Jonathan Reich, CEO
Q: Any thoughts on stabilizing and growing monthly active users (MAU)?
A: We are heavily focused on growing and retaining the user base for Zedge ringtones and wallpapers through feature additions and product marketing. This remains a high priority for the company. β Jonathan Reich, CEO
Q: Could you comment on the strong performance in advertising and subscriptions?
A: We are optimizing subscription plans and localizing the experience to drive growth. This includes testing various subscription durations and pricing on a localized basis. β Jonathan Reich, CEO
Q: How do you view the growth potential for pAInt and the creator economy?
A: We see the Zedge Premium marketplace as a growth opportunity and are investing in initiatives to unlock incremental growth. β Jonathan Reich, CEO
Q: Regarding Emojipedia, do you view the recent step back as temporary?
A: Yes, we view it as temporary. We have identified the issue and are rolling out new product features and capabilities that will come off the assembly line between now and the end of the calendar year. β Jonathan Reich, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
