Conference call will be held on August 29, 2023, at 11AM
ET
VANCOUVER, BC, Aug. 29,
2023 /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 30, 2023. The Company's
financial statements and management discussion and analysis
("MD&A") are available on SEDAR under the Company's
profile. All currency references in this press release are in
USD.
Financial Highlights
- Revenues in 2Q23 were $8.8M, and
gross profit margin was 36%.
- The revenue reflects a decline of 46% relative to 2Q22 and an
increase of roughly 700 bps in gross profit margin. The driving
factors behind these changes are primarily the decline in the
crypto sector, which carried high revenue volume with
lower than average gross profit.
- Revenues increased 2% relative to 1Q23, and management believes
that revenues have begun to reach stabilization.
- Adjusted EBITDA[1] was $0.4M in 2Q23.
- Ended 2Q23 with a cash balance of $2M and no long-term debt.
Management Commentary
Ido Almany, Chief Executive Officer of Zoomd Technologies,
stated: "We are pleased to announce the Q2 results for Zoomd,
showcasing our commitment to adaptability and resilience amidst a
dynamic business landscape. In this quarter, we have taken
strategic actions to optimize our operations, foster efficiency,
and concentrate on our core business, setting the stage for
sustained growth in the coming quarters.
Management is diligently implementing the corporate
restructuring plan that was announced in early June. As previously
reported, the cost reductions, which extend beyond headcount
adjustments, are projected to result in annual savings of
approximately $4 million. In addition
to these cost savings, we have announced the discontinuation of
several non-profitable and low-potential business lines. This
strategic decision allows us to reallocate efforts and resources
towards Zoomd's core business. Notably, these initiatives have
already begun yielding promising outcomes, as evidenced by
stabilizing revenue trends. Q2 revenues and Adjusted EBITDA
demonstrated an increase over Q1, underscoring the
effectiveness of our strategic measures.
While these measures are already showing positive signs, it's
important to acknowledge that the full spectrum of their impact is
yet to be realized. Our dedication to long-term success remains
steadfast, and we are confident that as these efforts continue to
unfold, we will be well-equipped to steer the company through the
prevailing macroeconomic challenges and the rapid technological
transformations that define our industry."
Amit Bohensky, Chairman of Zoomd
Technologies, stated, "Navigating the complexities of today's
business environment demands not only vision but also adaptability
and foresight. As we persist in aligning our strategies with
evolving market dynamics, we assure our stakeholders that we have
strong hands at the helm. Our leadership team is unwavering in its
commitment to harness the potential of our strategic measures and
leverage our collective expertise to guide Zoomd into a future
defined by innovation and sustainable growth."
Second Quarter 2023 Highlights
- Revenues for the three months ended June
30, 2023, were $8.8 million, a
46% decline relative to 2Q22. The decrease in revenues is primarily
a result of global macroeconomic conditions that impact client
advertising budgets in general and specifically in areas of Fintech
and in particular Cryptocurrency. Due to the
fluctuating budgets of the Fintech and Cryptocurrency
sectors, we continue to diversify our business by increasing our
exposure to sectors such as E-commerce, iGaming, and CPG companies.
Revenues in 2Q23 increased by 2% relative to 1Q23.
- Gross profit margin was 36% for the three months ended
June 30, 2023, versus 29% for the
same period last year, reflecting lower revenues from the
cryptocurrency segment which carries lower
margins.
- Research and Development expenses for the three months ended
June 30, 2023, were $1M, a 38% decrease relative to 2Q22, reflecting
lower deprecation and other R&D expenses.
- Selling, General, and Administrative expenses for the three
months ended June 30, 2023, were $2.8M, a 10% decrease YOY, reflecting the
decrease in revenues.
- Adjusted EBITDA for the three months ended June 30, 2023, was $0.4M as compared with Adjusted EBITDA of
$1.6M for the three months ended
June 30, 2022, reflecting the
decrease in revenues. Adjusted EBITDA increased relative to the
three months ended March 31 by
$0.2M.
- Operating loss was $0.6M for
2Q23, compared to an operating profit of $0.1M in 2Q22, and was primarily attributed to
the decrease in revenues.
- As of June 30, 2023, the
Company's cash and cash equivalents amounted to $2 million, and no long-term debt.
Conference Call
Amit Bohensky, Founder and
Chairman, will hold a conference call to discuss the quarter's
financial results at 11AM ET on
August 29, 2023.
Interested parties can listen via a live webcast, from the link
available in the Investors section of Zoomd's website
at https://zoomd.com/investors/ or
https://app.webinar.net/rAzyarJa4Gb
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/rAzyarJa4Gb.
About Zoomd:
Zoomd (TSXV: ZOMD, OTC: ZMDTF), founded in 2012 and began
trading on the TSX Venture Exchange in September 2019, offers
a mobile app user-acquisition platform, integrated with many global
digital media outlets, 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 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 one-time
non-operating expenses, 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 future outlook,
its future ability to successfully continue its growth, its ability
to improve profitability as a result of the corporate restructuring
plan, 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 and
the current war in Ukraine), 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. 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
www.zoomd.com
Investor relations:
Lytham Partners, LLC
Ben Shamsian
New York | Phoenix
ZOMD@lythampartners.com
[1] Adjusted EBITDA is a Non-GAAP performance measure. Refer to
"CAUTION REGARDING NON-IFRS FINANCIAL MEASURES" for further
details.
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SOURCE Zoomd Technologies Ltd.
