Zedge (ZDGE) Q4 2024 earnings summary

Executive summary

• Achieved 14% year-over-year revenue growth in Q4 to $7.6 million and 11% for fiscal 2024, 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 up nearly 10x.

• 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; net active subscribers up for the fifth straight quarter.

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

• Non-GAAP net income for the year: $1.8 million; non-GAAP EPS flat at $0.13.

• Adjusted EBITDA: $0.8 million in Q4 (down from $1.6 million), $4.7 million for the year (down from $5.7 million).

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

Outlook and guidance

• Focus for fiscal 2025 on scaling businesses, optimizing offerings, and expanding reach.

• Continued investment in generative AI, product innovation, and user acquisition.

• Plans to launch new AI-powered features, including audio creation and further enhancements to pAInt and Wishcraft.

• Emojipedia to see new custom emoji creation, digital stickers, and a comprehensive redesign.

• GuruShots strategy prioritizes new user growth, onboarding, and feature enhancements.