Conference call will be held on August 30, 2022 at 11AM
ET
VANCOUVER, BC, Aug. 29,
2022 /CNW/ -- Zoomd Technologies
Ltd. (TSXV: ZOMD) (OTC: ZMDTF) and its wholly-owned subsidiary
Zoomd Ltd. (collectively, "Zoomd" or the "Company"),
the marketing technology (MarTech) user-acquisition and engagement
platform, today reported its financial results for the three months
ended June 2022. The Company's
financial statements and management discussion and analysis
("MD&A") are available on SEDAR under the Company's
profile.
Key Highlights
- 2Q22 revenues increased 45% YOY to $16.2M. Strong revenue results were driven
primarily by the onboarding of new clients in recent months, growth
in spending of existing legacy clients and expansion into growth
geographies such as Latin America
and Asia.
- Achieved positive Adjusted EBITDA of $1.5M or 9% of sales during 2Q22.
- Operating profit was $20K for
2Q22 compared to an operating loss of $621K in 2Q21, primarily as the result of higher
salaries and bonus payments.
- Achieved positive cash flow from operations of $2.7M in 2Q22.
- Ended 2Q22 with a cash balance of $5.1M and no long-term debt.
- For the first time, the Company is expected to generate an
annual recurring revenue (ARR) of $3M
for 2022.
Management Commentary
Our current clients are continuing to be satisfied with results
that Zoomd brings to their user acquisition efforts, and we have a
strong pipeline of new customers. Our platform has been integral in
enabling our clients to manage their multiple campaigns on a single
system, allowing for greater time saving and efficiency with
real-time control. Our platform enables our customers to grow
their user acquisition programs with limited additional resources,
giving the ability to scale immediately by demand.
"We are excited to report another strong quarter, continuing our
momentum which began in early 2021. Revenues in 2Q22 increased 45%
year over year, on top of the 97% increase we achieved in 2Q21.
Said Ofer Eitan, Zoomd CEO "While
our growth continues to outpace the overall AdTech industry, we are
not fully immune to the recent global slowdown, especially in areas
of Fintech and Cryptocurrency. The Fintech and Cryptocurrency
sectors are an important portion of our revenue base; however, in
recent months we have further diversified our business by
increasing our exposure to sectors such as education, E-commerce
and gaming.
The integration of Albert, an artificial intelligence marketing
platform for advertisers, is progressing well. We are in the
technology integration stage, while continuing to serve Albert's customers, including leading
fortune 500 corporations. Albert drives fully autonomous digital
campaigns for some of the world's leading brands. We expect to
begin efforts of cross selling our services in the upcoming
months.
Amit Bohensky, Chairman, stated
the following: "We are continuing to progress in our goal to launch
our self-serve products in 2022. Our self-serve products are
expected to unlock our capacity to attract additional small and
mid-ranged customers and to generate ongoing recurring revenues.
We remain optimistic about Zoomd's long-term growth prospects.
However, given the recent slowdown in global markets, we believe it
is prudent to take a conservative stance on our near-term
expectations. As such, we are revising our 2022 revenue guidance to
be in the range of $65M to
$70M. Our focus remains to increase
our market share while strengthening our balance sheet.
In summary, we remain pleased with the pace of our business, as
we see continued strong demand for our services from both new and
existing clients. Companies are seeing the results and value of our
unique platform and are further allocating larger positions of
their budgets to Zoomd. We remain excited about our growth
prospects including the launch of our self-serve products."
Second Quarter 2022 Highlights (All Figures in Thousands in
USD)
- For the three months ended June 30,
2022, revenues were $16,205,
as compared to $11,157 for the three
months ended June 30, 2021, an
increase of 45% year-over-year. The increase in revenues is
primarily the result of customer acquisitions in the growth sectors
such as Fintech, E-commerce and gaming, as well as expansion in new
geographies such as Latin America,
Asia and North America. In addition, our existing
customers have allocated in increasing portion of their user
acquisition budgets to Zoomd, as they have witnessed strong ROI on
their spending.
- Gross profit margin was 29% for the three months ended
June 30, 2022, versus 33% for the
same period last year, reflecting more social media advertising
portion that is known to have lower profit margins.
- Research and Development (R&D) expenses for the three
months ended June 30, 2022 were
$1,521, a 52% increase YOY, primarily
reflecting salaries to new employees who joined the Company, as
well as salaries and retention payments to Albert employees.
- Selling, General and Administrative (SG&A) expenses for the
three months ended June 30, 2022 were
$3,092, a 52% increase YOY, primarily
reflecting increases in sales department bonuses as the result of
increased revenues, and the expenses incurred as a result of new
employees joining the Company, primarily after the acquisition of
Albert.
- Adjusted EBITDA for the three months ended June 30, 2022 was $1,520 as compared with Adjusted EBITDA of
$1,318 for the three months ended
June 30, 2021. The improvement in the
Adjusted EBITDA was primarily attributed to the significant
increase in revenue.
- Operating profit was $20K for Q2
2022, compared to an operating loss of $621K in Q2 2021, and was primarily attributed to
increased salaries and bonuses for current as well as Albert
employees.
- As of June 30, 2022, the
Company's cash and cash equivalents amounted to $5 million, and no debt.
Fiscal 2022 Outlook Update
Management now expects that revenues in fiscal 2022 to be in a
range of $65M to $70M, representing a year-over-year growth of 25%
to 35%. The revised outlook reflects the global financial slowdown
which is affecting advertising budgets. The outlook is based on
assumptions, each of which management considers to be reasonable
which are set out in the MD&A.
Conference Call
Amit Bohensky, Founder and
Chairman, will hold a conference call to discuss the quarter's
financial results at 11AM ET on
August 30, 2022.
Interested parties can listen via a live webcast, from the link
available in the Investors section of the Company's website
at https://zoomd.com/investors/ or at
https://app.webinar.net/mM8ag74LB9R
A replay will be available after the call, in the Investors
section of the Company's website at https://zoomd.com/investors/ or
via https://app.webinar.net/mM8ag74LB9R.
ABOUT ZOOMD:
Zoomd (TSXV: ZOMD, OTC: ZMDTF), founded in 2012 and began
trading on the TSX Venture Exchange in September 2019, offers
a site search engine to publishers, and a mobile app
user-acquisition platform, integrated with a majority of
global digital media, to advertisers. The platform unifies more
than 600 media sources into one unified dashboard. Offering
advertisers, a user acquisition control center for managing all new
customer acquisition campaigns using a single platform. By unifying
all these media sources onto a single platform, Zoomd saves
advertisers significant resources that would otherwise be spent
consolidating data sources, thereby maximizing data collection and
data insights while minimizing the resources spent on the exercise.
Further, Zoomd is a performance-based platform that allows
advertisers to advertise to the relevant target audiences using a
key performance indicator-algorithm that is focused on achieving
the advertisers' goals and targets.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
CAUTION REGARDING NON-IFRS FINANCIAL MEASURES
This press release refers to "Adjusted EBITDA" which is a
non-IFRS financial measure that does not have a standardized
meaning prescribed by IFRS. The Company's presentation of this
preliminary financial measure may not be comparable to similarly
titled measures used by other companies. This preliminary financial
measure is intended to provide additional information to investors
concerning the Company's estimated results. Adjusted EBITDA is
defined as earnings before interest, tax, depreciation and
amortization, as adjusted for share-based payments, and is a
measure of a company's operating performance. Essentially, it's a
way to evaluate a company's performance without having to factor in
financing decisions, accounting decisions or tax environments.
Management uses this non-IFRS measure as a key metric in the
evaluation of the Company's performance and the consolidated
financial results. The Company believes Adjusted EBITDA is useful
to investors in their assessment of the operating performance and
the valuation of the Company. However, non-IFRS financial measures
are not prepared in accordance with IFRS, and the information is
not necessarily comparable to other companies and should be
considered as a supplement to, not a substitute for, or superior
to, the corresponding measures calculated in accordance with IFRS.
A reconciliation of Adjusted EBITDA and operating profit is
available in Zoomd's MD&A located on the Company's profile at
www.sedar.com which is incorporated by reference into this press
release.
DISCLAIMER IN REGARD TO FORWARD-LOOKING STATEMENTS
This news release includes certain "forward-looking statements"
under applicable Canadian securities legislation. Forward-looking
statements include, but are not limited to Zoomd's 2022 revenue
outlook, its future ability to successfully continue its growth,
the success of its self-serve software, the relative profit margins
of the self-serve software compared to the legacy platform, as well
as its ability to continue expanding into new geographies and
industries. Forward-looking statements are based on our current
assumptions, estimates, expectations and projections that, while
considered reasonable, are subject to known and unknown risks,
uncertainties, and other factors that may cause the actual results
and future events to differ materially from those expressed or
implied by such forward-looking statements. Such factors include,
but are not limited to: general business, economic, competitive,
technological, legal, privacy matters, political and social
uncertainties (including the impacts of the COVID-19 pandemic, the
current war in Ukraine and the
current market downturn), the extent and duration of which are
uncertain at this time on Zoomd's business and general economic and
business conditions and markets. There can be no assurance that any
of the forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. The Company
disclaims any intention or obligation to update or revise any
forward-looking statements, whether because of new information,
future events or otherwise, except as required by law.
The reader should not place undue importance on forward-looking
information and should not rely upon this information as of any
other date. All forward-looking information contained in this press
release is expressly qualified in its entirety by this cautionary
statement.
FOR FURTHER INFORMATION PLEASE CONTACT:
Company Media Contacts:
Amit Bohensky
Chairman
Zoomd
ir@zoomd.com
Website: www.zoomd.com
Investor relations:
Lytham Partners, LLC
Ben Shamsian
New York | Phoenix
ZOMD@lythampartners.com
Logo:
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SOURCE Zoomd Technologies Ltd.
