Zedge Inc (ZDGE) Q3 2025 Earnings Call Highlights: Revenue Growth and Strategic Initiatives ... |

Published: Friday, June 13, 2025 · 7:02 AM | Updated: Friday, June 13, 2025 · 7:02 AM

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Release Date: June 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Zedge Inc (ZDGE, Financial) returned to revenue growth in Q3 2025, with a 1.3% increase to $7.8 million.
The company achieved a 46% year-over-year increase in adjusted EBITDA, reaching $1.2 million.
Zedge Plus subscriber base grew to nearly 900,000, marking a 37% year-over-year increase.
Zedge Premium revenue more than doubled, driven by expanded offerings and increased usage of AI-generated content.
The company ended the quarter with a strong balance sheet, holding $20.4 million in cash and no debt.

Negative Points

GuruShots revenue declined by 45% year-over-year due to reduced user acquisition spending.
Monthly active users (MAU) decreased year-over-year, although the focus shifted to higher lifetime value users.
The advertising market faced disruptions due to TikTok’s absence in the US for part of the quarter.
Restructuring charges amounted to $0.6 million, impacting financial results.
The company anticipates continued cash outflows related to restructuring and retention bonuses in the near term.

Q & A Highlights

Q: Can you rank the different pieces of advertising revenue that had the biggest impact this quarter?
A: Jonathan Reich, CEO: It’s challenging to rank precisely as we pursue advertising comprehensively. However, our team focuses on optimizing CPMs, which is crucial for valuing our inventory.

Q: How did TikTok’s return impact your advertising revenue, and what are your expectations for the future?
A: Jonathan Reich, CEO: TikTok returned mid-February, impacting only part of the quarter. They are a significant player in the market, and their re-entry helped increase pricing. We focus on high-value users in well-developed markets, which also contributed to the improvement.

Q: What are your plans to stabilize and grow monthly active users (MAU)?
A: Jonathan Reich, CEO: We aim to stabilize MAU by focusing on high-value users in well-developed markets. We’ve seen some improvement and continue to optimize user acquisition to drive revenue, even if it means losing users in less developed markets.

Q: Can you explain the new features in Emojipedia and their expected impact?
A: Jonathan Reich, CEO: Emojipedia is testing features like AI-generated emojis and mini-games. We’re focusing on releasing digital stickers for World Emoji Day in July, which should drive additional interest and engagement.

Q: How is Zedge Premium performing, and what are your future plans for it?
A: Jonathan Reich, CEO: Zedge Premium remains a core part of our marketplace. We’ve expanded content availability to the web, opening new channels for customer purchases. We also view our creator community as a strategic asset for our new B2B marketplace, Dataseeds.AI.

Q: What is the rollout plan for Dataseeds.AI, and how do you see it evolving?
A: Jonathan Reich, CEO: We’re actively building relationships with prospective customers and have published research to demonstrate our dataset’s advantages. We’re addressing unique content needs for foundational AI models, which is a promising new revenue source.

Q: Can you elaborate on the upcoming AI audio generator feature?
A: Jonathan Reich, CEO: We’ll roll it out on a limited basis before the end of June. Users can create custom ringtones or sounds using text prompts. It will likely be part of our subscription offering, potentially boosting subscription momentum.

Q: How do you expect restructuring and retention costs to impact future financials?
A: Yi Tsai, CFO: Restructuring charges in Q4 will be about $325,000, with some severance payments extending over five months. The last retention bonus payment was made in May, impacting Q4 cash flow by about $600,000. These costs will be immaterial in FY26.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.