Return to Revenue Growth
Zedge, Inc. returned to revenue growth in Q3 with total revenue up 1.3% to $7.8 million. Subscription revenue grew by 13.4% year over year, and deferred revenue reached $5 million, up 83% year over year.
Improved Profitability
The company achieved profitability on a GAAP basis, with adjusted EBITDA increasing by 46% year over year to $1.2 million. Free cash flow was $800,000, even after significant restructuring payments.
Zedge Plus Subscriber Growth
The Zedge Plus subscriber base grew to nearly 900,000, a 37% year-over-year increase. Average revenue per monthly active user increased by 33% year over year.
Strong Cash Position
The quarter ended with $20.4 million in cash and no debt, despite repurchasing 219,000 shares under a $5 million buyback authorization.
Launch of Dataseeds.ai
Zedge launched Dataseeds.ai, a B2B content marketplace, and signed an agreement with a leading global AI technology company, opening a new revenue source.
AI Audio Generator
Introduction of an AI audio generator as part of the Paint GenAI creation suite, allowing users to generate custom ringtones and notification sounds.