Zedge (NYSEAMERICAN:ZDGE) Announces Earnings Results

Zedge (NYSEAMERICAN:ZDGE) issued its earnings results on Thursday. The company reported $0.07 EPS for the quarter, beating analysts’ consensus estimates of $0.05 by $0.02, FiscalAI reports. Zedge had a positive return on equity of 11.10% and a negative net margin of 3.62%.The company had revenue of $7.99 million during the quarter, compared to the consensus estimate 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 Stock Up 25.7%

Shares of ZDGE stock opened at $4.16 on Friday. The business has a 50 day moving average of $3.09 and a two-hundred day moving average of $3.10. Zedge has a 52 week low of $2.21 and a 52 week high of $4.89. The company has a market cap of $52.08 million, a P/E ratio of -46.22 and a beta of 1.26.

Zedge Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Monday, April 6th were paid a $0.02 dividend. The ex-dividend date was Monday, April 6th. This is an increase from Zedge’s previous quarterly dividend of $0.02. This represents a $0.08 dividend on an annualized basis and a yield of 1.9%. Zedge’s payout ratio is presently -8.96%.

Hedge Funds Weigh In On Zedge

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Raymond James Financial Inc. acquired a new position in Zedge in the second quarter valued at approximately $40,000. Squarepoint Ops LLC acquired a new position in Zedge in the third quarter valued at approximately $37,000. Arrowstreet Capital Limited Partnership acquired a new position in Zedge in the third quarter valued at approximately $87,000. Goldman Sachs Group Inc. boosted its stake in Zedge by 35.5% in the fourth 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 period. Finally, NewEdge Advisors LLC acquired a new position in shares of Zedge during the second quarter worth approximately $191,000. 29.37% of the stock is currently owned by institutional investors and hedge funds.

About Zedge

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.