NEWS RELEASE

Zoomd Technologies Reports Fourth Quarter and Fiscal 2023 Financial Results

 

Conference call will be held on April 24, 2024, at 11 AM ET

 

VANCOUVER, British Columbia, April 24, 2024 – 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 and full year ended December 31, 2023. The Company’s financial statements and management discussion and analysis (“MD&A”) are available on SEDAR+ under the Company’s profile.

 

 

 

Key Financial Highlights

 

• Revenues in FY2023 were $32.1M, a 39% decline versus FY2022, primarily due to lower revenues from the cryptocurrency sector and Zoomd’s decision to discontinue unprofitable activities.
• Gross margins increased by 6% for the same period.
• Mid-year improvements were made to address market trends. These actions lead to positive operating income in Q4.23, for the first time in the last 5 quarters.
• Ended FY2023 with a cash balance of $2.6M, net cash generated from operating activities of $0.4M, and no long-term debt.

 

Management Commentary

Ido Almany, CEO of the Company stated, “In response to market trends challenges, the Company’s management team undertook at the end of the first half of 2023 a series of strategic actions aimed at mitigating the impact on the Company’s financial health and positioning the Company for sustainable growth, including a decision to cease operations in certain business lines and refocus Company’s efforts and own technology on core user acquisition activities. Additionally, the management team successfully implemented substantial cost-reduction measures across various areas of the Company, aiming to streamline operations and improve efficiency.

 

We have already begun to see the fruits of our actions in the second half of 2023 with an improvement of $1.1M in terms of adjusted EBITDA comparing the first with the second half of the 2023 fiscal year. Moreover, these actions led to positive operating income, for the first time in 5 quarters. Additionally, the Company achieved a crucial financial milestone by transitioning from cash-burning to cash generating from operational activities in the second half of the year.

 

The joint work of the management team and the board and the successful execution of the restructuring plan previously announced, lays the stable foundation to build upon. We are confident in our ability to continue delivering results for our current and future clients.”

 

 

 

 

Amit Bohensky, Chairman of Zoomd Technologies added “The hard work and collaboration between the management team and the board are showing through the numbers of the 2023 financial statement.I stay confidant and optimistic in our team work. We are thankful to our supportive investors and delighted to share  this journey with them.”

 

Fourth Quarter 2023 Highlights (All Figures in Thousands in USD)

 

• Revenues for the three months ended December 31, 2023 were $5 million, a 30% decline relative to Q4.22. Revenues continued to be negatively affected by the global economic slowdown, in particular in the areas of cryptocurrencies. We continue to diversify our business by increasing our exposure to sectors such as E-commerce, iGaming and transportation. Furthermore, our decision to discontinue unprofitable areas, including our publishers’ monetization business, led to a decline in revenue. Excluding both Cryptocurrency clients and non profitable operations clients that have been discontinued, revenue in Q4.23 has risen in comparison to the corresponding period of 2022.

 

• Gross profit margin was 34% for the year ended December 31, 2023, versus 38% for the same period in 2022.

 

• Research and Development expenses for the three months ended December 31, 2023 were $0.6M, a 76% decrease YOY. Selling, General and Administrative expenses for the three months ended December 31, 2023 were $1.9M, a 40% decrease YOY. The decrease in expenses is primarily attributable to the implementation of mid-year improvements that were made to address market trends noted above.

 

• Adjusted EBITDA for the three months ended December 31, 2023, was $0.6M as compared with Adjusted EBITDA of $0.2M for the three months ended December 31, 2022. The increase in Adjusted EBITDA was primarily attributable to the implementation of mid-year improvements that were made to address market trends.

 

• Operating income was $0.1M for Q4.23, compared to an operating loss of $1.7M in Q4.22. the Company achieved a positive operating income, for the first time in 5 consecutive quarters.

 

• As of December 31, 2023, the Company’s cash and cash equivalents amounted to $2.6 million, and no long-term debt.

 

 

 

 

 

 

 

Fiscal Year 2023 Highlights (All Figures in Thousands in USD)

 

• For the twelve months ended December 31, 2023, revenues were $32M, a decrease of 39% year-over-year. Excluding both cryptocurrency clients and non profitable operations clients that have been discontinued, revenue in 2023 has risen in comparison to the year 2022.

 

• Gross profit margin was 37% for the twelve months ended December 31, 2023, versus 31% for the same period in 2022.

 

• Research and Development expenses for the twelve months ended December 31, 2023 were $3.3M, a 51% decrease YOY. Selling, General and Administrative expenses for the twelve months ended December 31, 2023, were $10M, a 17% decrease YOY. The decrease in expenses is primarily attributable to the implementation of mid-year improvements that were made to address market trends.

 

• Adjusted EBITDA for the twelve months ended December 31, 2023, was $1.7M as compared with Adjusted EBITDA of $3.7M for the twelve months ended December 31, 2022. The decrease is primarily attributable to the decrease in revenues.

 

• Operating loss was $4.1M for FY 2023, compared to an operating loss of $2.1M in FY 2022. The increase in operating loss is primarily attributable to the impairment of intangible assets.

 

 

Conference Call

 

Amit Bohensky, Founder and Chairman, will hold a conference call to discuss the quarter’s financial results at 11AM ET on April 24, 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 at https://app.webinar.net/w7KopoOpqXE

 

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/w7KopoOpqXE

 

About Zoomd:

 

Zoomd (TSXV: ZOMD, OTC: ZMDTF), established in 2012 and listed on the TSX Venture Exchange since September 2019, provides an innovative mobile app user-acquisition platform that integrates with numerous global digital media outlets. This platform presents a unified view of multiple media sources, thereby serving as a comprehensive user acquisition control center for advertisers. It streamlines campaign management through a single point of contact, simplifying customer acquisition efforts. The consolidation of media sources onto one platform enables Zoomd

 

to offer advertisers substantial savings by reducing the need for disparate data source integration, enhancing data collection and insights, and minimizing resource expenditure.

 

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.sedarplus.ca 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 continue to deliver products and services largely unimpacted by the privacy updates undertaken (or will be undertaken in the future) by Google and Apple 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 military conflicts), 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

+972 722200555

 

Investor relations:

Lytham Partners, LLC
Ben Shamsian
New York | Phoenix
ZOMD@lythampartners.com

646-821-9701

 

1386-9324-3915

In this success story, we share how we have been successfully delivering desired KPI’s for 3 years straight. With the client’s trust and a set of clear and hard KPI’s, we managed pure performance-oriented campaigns on various media channels for a leading European group. This app owner is a European-based group providing multiple services such as gas, electricity and financial services to thousands of households across Europe.

Together with the brand, we establish sevral objectives along the way, with the main one to continuously increase the app user-based, drive for first-time registrations while maintaining a steady stream of purchases via the app, both from new and long-time app users.

The Zoomd team has been the trusted partner behind a leading European finance utility app for the past 3 years, consistently exceeding their desired key performance indicators on an ongoing basis. This blog post dives into the strategies and results that fueled this successful partnership.

Challenge: Drive continuous app user growth, increasing first-time registrations, and creating sustainable in-app purchases among both new and existing users.

Solution:

• Performance-oriented campaigns: Leveraging Zoomd’s DSP platform, we optimized bids, placements, and targeting for real-time performance, maximizing ROI.

• Localized campaigns: A dedicated campaign for a specific EU country secured a steady stream of new users through local media outlets and micro-publishers.

• Engaging creatives: Compelling ad formats captured user attention and drove action.

• Advanced data analytics: Continuous analysis provided valuable insights for data-driven decisions and campaign optimization.

• User acquisition & retention strategies: A focus on both attracting new users and engaging existing ones fueled app growth.

• Comprehensive reporting & analytics: Equipped the client with clear data to track progress and make informed business decisions.

Results:

• Micro campaign (2023):

  • 7.60% CTR

  • 350% higher registration volume than other partners

  • 245K new users for iOS and Android apps

• Q4 2023 Campaign:

  • 35,253% ROAS

  • 25% year-over-year user retention

  • 40% increase in user value (14% above benchmark)

• Continuous user growth: The app user base consistently grew throughout the campaign.

Key Takeaways:

• Performance-oriented campaigns with real-time optimization are crucial for maximizing ROI. Continuous campaign data analysis provided valuable insights that contributed to the success of the campaign. By analyzing the data, we were able to make data-driven decisions and optimize the campaign for better performance and results. This continuous analysis helped them understand user behavior, identify trends, and make necessary adjustments to improve the effectiveness of their strategies.

• Localized campaigns can effectively reach specific target audiences.

• Engaging creatives and data-driven decisions are essential for campaign success.

• A focus on both user acquisition and retention is key for sustainable app growth.

• Comprehensive reporting and analytics empower clients to make informed decisions.

By combining these strategies, our media team delivered exceptional results for this finance utility app, demonstrating the effectiveness of our broad advertising solutions. We are proud of this successful partnership and look forward to continuing to drive growth for our clients in the future.

We at Zoomd are big believers in the power of creators and influencers. Our CGC (Creators – generating – content) department has been working with global content creators for the past several years, helping our international clients grow and spread their word in all regions and markets.

Currently, in the mobile gaming sector, the use of creators is one of the hottest trends in the sector, but gaming studios haven’t adopted this tactic to its full extent yet. Studios are slowly recognizing creators’ potential, but they’re still hesitant to invest in them fully. It may be due to the lack of tools or resources, or simply that large studios are not accustomed to working with creators so quickly and efficiently, to create fun, engaging videos without getting too complicated.

Who are they?
Creator-Generated Content (CGC) has emerged as a groundbreaking advertising strategy that harnesses the power of video ads showcasing genuine individuals using and expressing enthusiasm for various digital products. Unlike traditional advertisements, CGC centers around relatively unknown micro-influencers who are active on popular social media platforms such as YouTube, TikTok, and Instagram. These creators possess a unique ability to communicate authentically with digital natives and are regarded as more credible compared to A-list celebrities who are commonly associated with major brand advertisers. The success of these video ads lies in their remarkable ability to overcome ad blindness, particularly among millennials and other members of the digital native generation. The key factor contributing to their effectiveness is the genuine and relatable nature of the content, resonating with viewers who see individuals that resemble them and speak their language. By embracing CGC, advertisers can tap into the power of authenticity and connect with their target audience on a deeper level.

Many in the industry haven’t yet tapped into its full potential – either because they’re unaware of its advantages or because they’re unsure how to implement it effectively.

As many gaming studios seek to grow big and international fast, they can use creators to work on a global campaign, using creators from all around the world in multiple languages and from different regions. Creating a diverse, global audience also enhances app owners’ understanding of global markets. Additionally, this collaboration can help create content that is more relatable to people from different backgrounds. This will further strengthen the relationship between the app and user wherever they might be.

For a casual game app, we worked with global creators to spread the word in multiple regions and languages at once.
Here are some examples:

English Version:

Portuguese Version:

Korean Version:

Japanese Version:

Italian Version:

French Version:

Spanish Version:

German Version:

Arabic Version:

Want to see more of what we recently did, for a variety of apps? see our showreel page

Why Is Creators-Generated-Content Effective for Advertising Mobile Apps?

Creators generated content is an effective way to advertise mobile apps because it allows existing users to share their experiences with their peers. This type of content is more influential than traditional forms of advertising, as it allows users to form positive opinions about the products or services they are reviewing.
Additionally, Creators generated content can be cheaper than other forms of advertising, as filming and talent costs are fairly low compared to full animation or production costs.

Looking to break traditional advertising barriers? Look no further with Zoomd’s cgc authentic community.

Contact us for a unique offer

Growing your app is a journey. It’s a process that’s not overnight and goes through various stages which should be repeated over and over again to maintain healthy behavioral and substantial growth over the years. A typical growth lifecycle of an app looks like depicting critical barriers that once crossed put the app into the next orbit for even higher growth:

The build stage involves a lot of strategy thinking, planning, envisioning, designing before executing the actual building plan.

1. What’s the problem? Before you start building your app, you need to identify the problem your app will solve. This will help you create a clear vision for your app and ensure that it meets the needs of your target audience. Even though the app may not be the first of its kind or a unique product, it needs to address some real pain points you’ve identified that are not addressed by the competition.
2. Define your target audience: Once you have identified the problem you are trying to solve, you need to define your target audience. This will help you to create an app that is tailored to the needs of your users, in terms of UI\UX and business model.
3. Design a user-friendly interface: A user-friendly interface is essential for any mobile app. Your interface should be easy to navigate and use, and provide a seamless experience for your users.
4. Choose the right technology stack: The technology stack is a set of programming languages, frameworks, libraries, and instruments used to develop a mobile app. The choice of the technology stack can make or break your product’s potential. Here are some popular technology stacks for mobile app development:

• React Native: A popular open-source framework that allows developers to build cross-platform mobile apps using JavaScript and React.
• Flutter: A Google-developed open-source framework that allows developers to build high-performance, high-fidelity, apps for Android, iOS, and the web using a single codebase.
• Ionic: Another popular open-source framework that allows developers to build hybrid mobile apps using web technologies such as HTML, CSS, and JavaScript.
• Xamarin: A Microsoft-owned open-source framework that allows developers to build cross-platform mobile apps using C# and .NET.

Choosing the right technology stack is crucial for the success of your app. You need to choose a stack that is reliable, scalable, and easy to maintain. if your not on the tech savvy side you will probably need a company that will help you execute your dream. Make sure to do you research on the tech stack they offer, understand why they recommend the selected technology and not other options.

The testing stage: Testing is an essential part of the app development process. You need to test your app thoroughly to ensure that it is free of bugs and other issues. Thorough app testing is crucial in the development process as it helps to identify and eliminate bugs and other issues before the app is released to users. By conducting comprehensive testing, developers can ensure that the app functions as intended, providing a seamless and error-free experience for users. This not only enhances user satisfaction but also helps to maintain the app’s reputation and credibility in the market. in simpler words, you don’t want to discover many bugs when your app is already live in the App store and get bad reviews by unsatisfied users.

Market your app effectively: Once your app is ready, you need to market it effectively to ensure that it reaches your target audience. This is where Zoomd can help. With our digital marketing experts, our technological stack and vast experience working with global brands and apps, you can rest assured we can help you tailor any plan to your growth plan. The basic marketing plan includes:

1. Define your target audience: Before you start marketing your app, you need to define your target audience. You already defined your TA in the building stage, but now you need to be more practical – for example, from which countries are they coming from? Which social platform do they use? What are their basic search questions on Google, AppStore, or Playstore?
2. Optimize your app store listing: Your app store listing is the first thing that potential users will see when they search for your app or look for an app they need that your app matches. Make sure that your listing is optimized with relevant keywords, high-quality screenshots, and a compelling description. Like SEO (search engine optimization) this is a contact task that needs to be checked and revised according to initial results. High-quality screenshots and a compelling description are essential for attracting potential users and increasing app downloads. They provide visual representation of your app’s features and functionality, giving users a glimpse of what to expect. A well-crafted description, on the other hand, effectively communicates the value and unique selling points of your app, enticing users to download and try it out. Together, these elements help create a positive first impression and increase the chances of converting potential users into loyal customers.
3. Leverage social media: social media is a powerful tool for promoting your app. Use platforms like Facebook, Twitter, and Instagram to build a following, engage with your users, and promote your app. One strategy for engaging with users on social media platforms is to create interactive content such as polls, quizzes, or challenges related to your app. This not only encourages user participation but also generates buzz and increases brand awareness. Additionally, responding promptly to user comments, messages, and reviews shows that you value their feedback and are dedicated to providing excellent customer service.
4. Paid advertising: It is true that ads on platforms such as Google Adwords and Facebook Ads are basic, but there are plenty of networks and other media channels that may prove to be more cost effective than what is offered by these platforms. You will want to explore more options once you’ve experimented with Google and Meta’s media supply and explore a DSP or other tech platform.
5. Partner with influencers: Influencer marketing has already proven to be very effective to promote any app, idea or product. Influencers themselves have been around for many years now and their audience is well familiar with their paid content initiatives, and knows how to screen sales content and regular content. With that, people know how to take the paid content into account and use it for learning about any prodcut they’re looking for. You don’t need to go for the elite influencers for your marketing plan (as your have a specific budget), micro influencers are great as they have a very specific community of followers that matches your target audience. Check our Zoomd’s influencers and creators community and talk to us if you need help with your app influencer plan.
6. Create engaging content: Creating engaging content like blog posts, videos, and infographics can help you to build a following and promote your app.
7. Analyze your data: Finally, it’s important to analyze your data to see what’s working and what’s not. Use tools like Google Analytics to track your app’s performance and make data-driven decisions about your marketing strategy.

Launch stage: After the app is published to the world, launch the marketing initiatives plans you’ve created to announce the availability of the app.

Continuously improve your app: Finally, you need to continuously improve your app to ensure that it stays relevant and meets the changing needs of your users. Meaning constantly evaluating your initial plans, such as upgrading your app UI|UX over time, ASO maintenance, and more.

Analyzing your data allows you to understand what marketing strategies are effective and which ones are not. This helps you make data-driven decisions for your app’s marketing strategy. By tracking your app’s performance through tools like MMP’s, you can identify trends, discover user behavior patterns, and optimize your marketing efforts to target the right audience and achieve better results.