Zedge (NYSEAMERICAN:ZDGE) Announces Earnings Results

Zedge (NYSEAMERICAN:ZDGE) issued its quarterly earnings results on Thursday. The company reported $0.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.05 by $0.02, FiscalAI reports. Zedge had a negative net margin of 6.03% and a positive return on equity of 10.36%. The business had revenue of $7.99 million for the quarter, compared to analyst estimates of $7.00 million.

Here are the key takeaways from Zedge’s conference call:

• Zedge reported a GAAP-profitable quarter with total revenue of $8.0 million, up 3% year over year, and said the core Marketplace remains resilient despite a decline in overall MAUs.
• Subscription momentum remained strong, with Zedge Plus revenue up about 32% and active subscribers up roughly 41% to nearly 1.3 million, driving record ARPMOU and a 26% increase in deferred revenue.
• Advertising revenue was slightly lower overall because of Emojipedia-related pressure and a prior-year partner bonus, but management said Zedge Marketplace ad revenue was essentially flat year over year.
• DataSeeds.AI reached an important milestone by fulfilling its first six-figure order, while management said the pipeline is growing and the business is positioning itself for larger, more complex enterprise deals.
• The company continued to strengthen its balance sheet and capital returns, with free cash flow up 55% to $1.2 million, $19.7 million in cash, no debt, a 25% dividend increase, and additional share repurchases.

Zedge Price Performance

ZDGE stock opened at $3.31 on Friday. The firm’s fifty day simple moving average is $3.06 and its 200-day simple moving average is $3.09. The company has a market capitalization of $41.44 million, a P/E ratio of -22.07 and a beta of 1.26. Zedge has a 12 month low of $2.21 and a 12 month high of $4.89.

Zedge Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Monday, April 6th were issued a $0.02 dividend. This is an increase from Zedge’s previous quarterly dividend of $0.02. The ex-dividend date of this dividend was Monday, April 6th. This represents a $0.08 annualized dividend and a dividend yield of 2.4%. Zedge’s payout ratio is currently -8.96%.

Institutional Trading of Zedge

Several large investors have recently made changes to their positions in the business. Raymond James Financial Inc. purchased a new stake in shares of Zedge in the 2nd quarter valued at $40,000. Goldman Sachs Group Inc. boosted its holdings in shares of Zedge by 35.5% in the 4th quarter. Goldman Sachs Group Inc. now owns 42,029 shares of the company’s stock valued at $138,000 after acquiring an additional 11,022 shares during the last quarter. Squarepoint Ops LLC purchased a new stake in shares of Zedge in the 3rd quarter valued at $37,000. Arrowstreet Capital Limited Partnership purchased a new stake in shares of Zedge in the 3rd quarter valued at $87,000. Finally, Citadel Advisors LLC boosted its holdings in shares of Zedge by 304.7% in the 3rd quarter. Citadel Advisors LLC now owns 49,520 shares of the company’s stock valued at $144,000 after acquiring an additional 37,285 shares during the last quarter. 29.37% of the stock is owned by hedge funds and other institutional investors.

Zedge Company Profile

Zedge, Inc (NYSE American: ZDGE) is a digital media and technology company that operates a mobile personalization platform. Through its flagship Zedge app and website, the company provides consumers with a wide range of downloadable digital content, including wallpapers, ringtones, notification sounds, app icons and lock screens. The platform accommodates both free and premium content, enabling users to customize their smartphones and tablets according to personal taste.

The company’s platform features content created by independent designers and established media brands, and it supports multiple languages and regional preferences.