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Zedge Inc. Class B (ZDGE+1.32%) has submitted its 10-Q filing for the quarterly period ended January 31, 2025.
The filing includes financial statements for the quarter, showing a decrease in total revenue to $6.979 million from $7.771 million in the same quarter the previous year. The decline is attributed to a decrease in advertising revenue and digital goods and services revenue.
Advertising revenue decreased to $4.698 million from $5.482 million, while digital goods and services revenue declined to $616,000 from $919,000. Subscription revenue increased by 13.3% to $1.233 million.
Direct cost of revenues decreased slightly to $447,000, representing 6.4% of sales, compared to 5.9% in the same quarter of the previous year.
Selling, general, and administrative expenses increased to $7.126 million from $6.523 million, primarily due to higher paid user acquisition expenses and compensation costs.
The company reported a loss from operations of $2.219 million, compared to a loss of $11.930 million in the previous year, with the prior year's loss including a significant impairment charge.
Net loss for the quarter was $1.679 million, down from $9.230 million in the previous year. The decrease is primarily due to the absence of the prior year's impairment charge.
Cash provided by operating activities was $1.878 million, while cash used in investing and financing activities was $266,000 and $1.494 million, respectively.
Zedge had a working capital of $16.832 million as of January 31, 2025. The company maintains a revolving credit facility of $4 million.
The filing also details a restructuring initiative aimed at reducing headcount and operating expenses, with a restructuring charge of $481,000 recorded for the quarter.
Zedge continues to focus on its Zedge App and GuruShots platforms, with plans to enhance user engagement and monetization strategies.
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 March 14, 2025. To report an error, please email earnings@qz.com.