The following is a summary of the Zedge, Inc. (ZDGE) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Zedge reported Q1 total revenue of $7.1 million, up 3% year on year, despite geopolitical, macroeconomic, and industry-specific challenges.

• Ad revenue saw a recovery and growth of up to 62%, bolstered by Zedge marketplace and Emojipedia performance.

• Zedge Plus, the subscription service, saw a 10% YoY growth in revenue and sequential active subscriber growth.

• Record Average Revenue Per Monthly Active Users (ARPMAU) was achieved, and Zedge Premium witnessed a YoY growth of 35%.

• Digital goods and service revenue was down 29% YoY due to external conditions such as Apple's ATT framework and broader economic issues.

• Advertisement per monthly active user reached $0.63, marking a 17% YoY increase.

• GAP net income and EPS saw a significant improvement from the previous year's loss.

Business Progress:

• Zedge successfully expanded its business portfolio with a focus on Paint, a globally available generative AI wallpaper maker.

• The company executed key updates for Zedge Plus, particularly on Android, contributing to sequential revenue growth, and anticipates future growth on IOS.

• Emojipedia logged robust performance, being a significant contributor to ad revenue growth, alongside planned feature launches like emoji text translations and mashup designs.

• Strategies to stabilize and grow GuruShots, including product innovation and user acquisition, have been rolled out, with the new feature 'Battles' intended to boost user engagement.

• AI Art Master, a hybrid casual game, is currently in the soft launch phase.

• The company continues to leverage AI and believes in driving sustainable, profitable growth through its product portfolio, marketing prowess, data capabilities, and tech stack.

• A $2 million bank loan was repaid, with a remaining cash balance of $16.7 million. Future earnout payments related to the purchase of GuruShots were eliminated through an agreement.

More detailed: Zedge IR

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