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Zedge Inc. Class B (ZDGE-2.75%) has filed its 10-Q filing for the quarterly period ending October 31, 2024.
The filing reports total revenues of $7.194 million, a slight increase from $7.081 million in the same quarter of the previous year. This growth was driven by a 21.1% increase in subscription revenue and a 122.5% increase in other revenues.
Advertising revenue decreased by 1.3% to $4.874 million, attributed to a 12.3% decline in monthly active users, partially offset by higher advertising rates.
The company reported a net loss of $339,000, compared to a net loss of $15,000 in the previous year. This was due to increased selling, general, and administrative expenses, which rose by 23.8% to $6.809 million.
Zedge's operating segments include the Zedge Marketplace and GuruShots. The Zedge Marketplace reported an income from operations of $934,000, while GuruShots reported a loss from operations of $1.391 million.
The company ended the quarter with $20.2 million in cash and cash equivalents, and a working capital of $17.5 million.
Zedge's report highlights the impact of macroeconomic conditions, including geopolitical tensions and conflicts, on its business operations.
The company continues to invest in user acquisition for its Zedge App, while scaling back on GuruShots due to challenges in achieving profitable returns on advertising spend.
Zedge's management is closely monitoring the situation in Israel due to ongoing conflicts, which could affect its operations given its workforce in the region.
The filing also details the company's financial agreements, including a renewed $4 million revolving credit facility with Western Alliance Bank.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Zedge Inc. Class B quarterly 10-Q report dated December 16, 2024. To report an error, please email earnings@qz.com.