Company Delivers Record Cash Flow from Operations during Fiscal 2020;

NEW YORK, NY / ACCESSWIRE / October 22, 2020 / Zedge, Inc. (NYSE American:ZDGE), a worldwide mobile publishing and content platform provider, today announced results for the fiscal fourth quarter and full fiscal-year 2020 ended July 31, 2020.

'Zedge had a strong fourth quarter and finished the year on a high note with encouraging momentum heading into our new fiscal year,' said Jonathan Reich, chief executive officer. 'The investments we've made in product development, combined with improved ad optimization, strong paid subscription growth and the cost reductions we implemented this past year helped us generate positive earnings per share in the fourth quarter. Additionally, at the outset of fiscal 2020, we announced that one of our key goals was being cash flow positive in the fiscal fourth quarter, and we surpassed this by generating positive cash flow every quarter during the year.'

'Our fourth quarter paid subscriber count continued to grow at an impressive pace and contributed to a 50% year-over-year increase in average revenue per monthly active user, or ARPMAU. We were also encouraged to see the gross transaction value, or GTV, for our Zedge Premium marketplace return to double-digit growth after a temporary pandemic-related slowdown last quarter.'

4th Fiscal Quarter Highlights

• Revenue increased 39.2% to $2.7 million versus $2.0 million last year;
• Paid subscription revenue increased 378% to $0.6 million versus $0.1 million last year;
• Paid subscribers increased 277% versus last year and 26.3% from the third quarter;
• More than 40% of annual subscribers renewed their subscriptions;
• Operating income was $0.4 million versus an operating loss of ($0.9) million last year;
• Net income was $0.5 million versus a net loss of ($1.2) million last year;
• Diluted Earnings per share was $0.04 versus a loss per share of ($0.12);
• Monthly active users (MAU) decreased by 5.6% versus last year, but increased by 10.8% from the third quarter;
• Zedge Premium Gross Transaction Value (GTV) increased 13.1% versus last year.

Select Financial Metrics: Fiscal 4th Quarter and Fulll Year 2020 Comparisons

Full-year 2020 Highlights

• Revenue increased 7.4% to $9.5 million versus $8.8 million last year;
• Revenue from paid subscriptions, which we launched in January 2019, increased 932% to $1.6 million versus $0.2 million last year;
• Operating loss was ($0.4) million versus ($2.9) million last year;
• Net loss was ($0.6) million versus ($3.3) million last year;
• Loss per share was ($0.05) versus ($0.33) last year;
• Cash flow from operations was positive in all four quarters and for the full year;
• At fiscal year-end, cash and cash equivalents were $5.1 million and long-term debt was $0.2 million;
• Zedge Premium Gross Transaction Value (GTV) increased 50% versus last year.

Fiscal 2021 Commentary

'Our momentum has continued into the first quarter, and we are excited by the opportunity of further diversifying our existing revenue streams in the future,' continued Reich, 'We expect to introduce new features, products and monetization models to drive continued growth beyond the strength we are seeing in our flagship Zedge app, as well as our Zedge Premium marketplace. As we look to the full-year, we are targeting revenue growth of greater than 20%, continued positive cash flow and profitability on a quarterly and full-year basis.'

Earnings Announcement and Supplemental Information

Zedge's earnings release will be filed on Form 8-K and posted on the Zedge investor relations website (https://investor.zedge.net) at approximately 4:10PM Eastern on October 22, 2020.

Zedge's management will host an earnings conference call beginning at 4:30PM Eastern. Management's presentation of the results, outlook and strategy will be followed by Q&A with investors.

To participate in the call, please dial Toll Free: 844-602-0380 or International: 862-298-0970 at least five minutes before the 4:30PM Eastern start and ask for the Zedge earnings conference call.

The call will also be webcast through the following link and will be live through Tuesday, December 22, 2020: https://www.webcaster4.com/Webcast/Page/2205/37697

Following the call and continuing through Thursday, November 05, 2020 a call replay will be available by dialing Toll Free: 877-481-4010 or International: 919-882-2331 and entering the replay access code: 37697

About Zedge

Zedge offers a state-of-the-art digital publishing platform that powers our consumer-facing app availing users with a host of digital content - wallpapers, video wallpapers, ringtones, and stickers. We are evolving by developing new apps run on top of our publishing platform and generally focus on the entertainment vertical. Our creators are amateur and professional artists as well as new and major brands who can easily launch a virtual storefront in Zedge where they can market and sell their content to our user base. Our app has been downloaded 450 million times, has approximately 32 million monthly active users and has consistently been ranked as one of the most popular free apps in Google Play in the US. For more information, visit https://www.zedge.net.

Forward Looking Statements

All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words 'believe,' 'anticipate,' 'expect,' 'plan,' 'intend,' 'estimate,' 'target' and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, we assume no obligation to update any forward-looking statements.

Contact:

Hayden IR
Brian Siegel
zdge@haydenir.com

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SOURCE: Zedge, Inc.