The earnings call highlights positive strides in subscription and premium growth, as well as significant cost-cutting measures. However, these are overshadowed by a notable decline in overall revenue and ongoing challenges in specific segments like advertising and GuruShots. The sentiment reflects a company in transition, facing both promising opportunities and significant challenges.
Company Guidance
During Zedge's second quarter fiscal 2025 earnings call, the company provided several key metrics and guidance. Total revenue declined by 10% year-over-year to $7 million, primarily due to a challenging macro environment and advertising headwinds. However, subscription revenue grew by 13%, with active subscribers increasing by 22%. Zedge Premium's gross transaction value rose by 27%, and the company achieved a 9% year-over-year increase in average revenue per monthly active user. The company initiated a restructuring plan, resulting in an expected annualized expense reduction of approximately $4 million. This includes a 22% workforce reduction, targeting $3 million in compensation-related cost savings and $1.2 million from expired retention bonuses. The restructuring is anticipated to reflect in financials by Q3 and culminate in Q4. Despite a GAAP net loss of $1.7 million for the quarter, Zedge remains optimistic about future growth opportunities, particularly in AI-driven offerings and user engagement strategies.
Subscription Revenue Growth
Quarterly subscription revenue growth remained strong, increasing 13% year-over-year, with a 22% increase in active subscribers.
Zedge Premium Growth
Zedge Premium's Gross Transaction Value (GTV) grew 27% year-over-year, driven by monetization strategies like rewarded video, which saw usage grow nearly 40%.
Cost Reduction Initiatives
Restructuring is expected to reduce the annualized expense run rate by approximately $4 million, including a 22% reduction in global workforce.
Launch of pAInt 2.0
Introduction of new creation capabilities such as image-to-image and real-time photo editing, with engagement metrics for pAInt surging over 100% year-over-year.
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Zedge (ZDGE) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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ZDGE Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Mar 12, 2025
$2.14
$2.10
-1.87%
Dec 16, 2024
$2.73
$2.30
-15.75%
Oct 29, 2024
$3.06
$2.91
-4.90%
Jun 10, 2024
$3.01
$3.39
+12.62%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Zedge Inc (ZDGE) report earnings?
Zedge Inc (ZDGE) is schdueled to report earning on Jun 16, 2025, TBA Not Confirmed.
What is Zedge Inc (ZDGE) earnings time?
Zedge Inc (ZDGE) earnings time is at Jun 16, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.