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| Statement |
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| And then separate and apart from that, as I mentioned, the work that we had done last year in terms of overhauling the Zedge+ subscription on Android and rolling out Zedge+ subscription on iOS for the first time has also yielded very positive results for us |
| One of the big stories this past quarter was continued momentum at the Zedge marketplace |
| Our success in growing advertising revenue in recent quarters stems from our continuous optimization efforts, combined with highly effective paid UA programs driving positive ROAS in 90 days or less |
| And what can be done in order to optimize those economies ultimately leading to better revenue generation as well as contributing to improving user engagement and user retention |
| Additionally, over the past 2 quarters, we began improving our iOS monetization stack by optimizing ads and rolling out Zedge+ for iOS which along with pAInt, contributed to strong iOS revenue growth |
| Emojipedia had another good quarter |
| Zedge Plus, our marketplace subscription offering, delivered exciting results with revenue increasing 24% from last year, with small net subscriber gains sequentially and less than 1% net subscriber loss year-over-year and Zedge Premium revenue driven by several improvements to content monetization and other back-end front-to-end items was up 21% |
| ARPMAU was a record $0.072, up 37% year-over-year, reflecting stability in ad pricing and the positive impact of our new iOS and Android subscription |
| Additionally, this metric was up sequentially for the third straight quarter as our net active subscriber trend improved and higher value IOS subscription and our new value-added Zedge+ offering for Android replaced lower-cost legacy subscription which only remove ads |
| To date, it has yielded a 15% increase in average daily revenue, giving me confidence that we are on the right track |
| And going back to the overhaul that we have introduced in 2023, that was an improvement in terms of those value adds, making that subscription offering more attractive and ultimately bringing in new subscribers |
| These factors fueled a 37% increase in the average revenue per monthly active user or ARPMAU, to a record $0.072 and this strength was not just on Android as iOS revenue for the Zedge marketplace was up an impressive 46% sequentially |
| And then, of course, separate and apart from that user acquisition investments and all of those taken together, we are hoping that we can reverse that trend and see to it that we unlock what we believe to be a promising growth opportunity |
| It was up slightly sequentially which is encouraging |
| Zedge Premium Gross Transaction value or GTV grew 23% from last year to a record $540,000, reflecting higher price per advertising impression and incremental revenue generally from pAInt which offset modest decline in other content sales |
| Taken together, we continue to believe that we have never been in a better position to create sustainable, long-term profitable growth given the combination of market opportunity, our current product portfolio and road map, our marketing prowess, data capabilities, tech stack and most importantly, our team |
| The funnel will allow players to progress with more features and increased complexity based on individual performance enabling skill-based user segmentation which will be a win for the user base |
| I want to add that we believe these efforts taken in concert with one another will help us deliver growth which was one of the key thesis of the acquisition |
| And in terms of the overall Zedge app or global Zedge marketplace, it's a function of continually adding and optimizing features that we have as well as improving the user experience |
| Photography continues growing exponentially due to the ubiquity of mobile phones and with the advent of AI enhancements, high-quality pictures are within everyone's reach |
| Ad revenue was up 18% from last year |
| In totality, our hope and expectation is that taken together, that will unlock the growth that we believe is inherent in this asset |
| In the past, successful new features would yield a 10% to 30% jump in revenues with little or no downside when they did it to take hold |
| Subscription revenue for the second quarter was up 24% versus last year |
| In terms of the new features, the new features most immediately are around offering what I will call mini game battles for users that are already in the middle of the game and then -- and now beginning to expand that to just being a stand-alone short-term limited number of competitors' type of battle, again, allowing for this to be a quick win for users to get that dopamine flow and feel like, well, they're competing in real time without having to wait for an extended period of time in order to ultimately win a battle |
| As a result of the strength related to valuation over the past year, we have added non-GAAP net income and non-GAAP diluted EPS as new metrics that we plan to report going forward |
| As a result of the strength related to valuation over the past year, we have added non-GAAP net income and non-GAAP diluted EPS as new metrics that we plan to report going forward |
| As a result of the strength related to valuation over the past year, we have added non-GAAP net income and non-GAAP diluted EPS as new metrics that we plan to report going forward |
| In January, we introduced Turbo, a feature that expands the gameplay and improves game resource consumption |
| We're well on our way here and our efforts are starting to bear fruit, especially for the Zedge marketplace |
| Statement |
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| Similar to Q1, GuruShots' revenue was again negatively impacted by Apple's ATT framework, macroeconomic issues and the geopolitical situations |
| Monthly active user or MAU, for the Zedge marketplace decreased 10.7% from a year ago to $28.8 million |
| MAU in well developed markets and emerging markets were down 15.6% and 9.2%, respectively |
| Digital goods and services which encompasses revenue from GuruShots, came in at $0.9 million, down 26% from last year |
| Additionally, this write-down does not reflect the valuable gamification experience with secure, benefiting the rest of our business |
| Additionally, this write-down does not reflect the valuable gamification experience with secure, benefiting the rest of our business |
| Additionally, this write-down does not reflect the valuable gamification experience with secure, benefiting the rest of our business |
| So it's a little bit hard to sort of parse that out because by contrast, typically, our Q3 is our weakest quarter from an ad revenue perspective in light of post-season drop-off and ad budgets and so on and so forth |
| These risks and uncertainties include but are not limited to, specific risks and uncertainties disclosed in the reports Zedge periodically files with the SEC |
| GAAP net loss and loss per share for Q2 was $9.2 million and $0.66 versus income and EPS of $1.6 million and $0.11, respectively, in the prior year |
| Any forward-looking statements made during this conference call during the prepared remarks or in the question-and-answer session, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results in the future to differ materially from those discussed on today's call |
| With respect to changing the economy |
| Cost of revenue declined by 27% and was 5.9% of revenue |
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