Conference call will be held on November 30, 2023, at 11AM ET.

VANCOUVER, British Columbia, November 30, 2023 – 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 and nine month periods ended September 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.

Third Quarter Financial Highlights

• Revenues were $7.1M, a 27% decline versus 3Q22, primarily due to lower revenues from the cryptocurrency sector and Zoomd’s decision to discontinue unprofitable activities.
• Gross Margins increased roughly 900 basis points to 40%, versus 3Q22, reflecting lower revenues from the cryptocurrency sector, and discontinuation of unprofitable activities which carries lower margins.
• Total operating expenses decreased 36% versus 3Q22 as the Company implements its cost saving initiatives and costs saving measures.
• Adjusted EBITDA⁽¹⁾ increased to $575,000 or 8% of sales, versus $15,000 in 3Q22.
• Positive cash flow generated from operating activities for the first time in 5 consecutive quarters.

 (1) Adjusted EBITDA is a Non-GAAP performance measure. Refer to “CAUTION REGARDING NON-IFRS FINANCIAL MEASURES” for further details.

Management Commentary

Amit Bohensky, Chairman of Zoomd Technologies, stated, “During the third quarter we made tremendous strides in improving our margins and bottom line, growing our Adjusted EBITDA to $575,000 versus $15,000 in last year’s period and achieved positive cash flow from operating activities for the first time in 5 consecutive quarters. The acceleration in probability is the direct result of the implementation of our restructuring initiatives and cost saving measures, which we initially disclosed in June. These initiatives were designed to optimize our operations and financial performance. As part of this process, we discontinued various unprofitable areas of our business, resulting in operating expenses decreasing by 36% in the third quarter. We will channel our resources towards activities and solutions that have demonstrated profitability, enabling us to better position ourselves competitively in the current market

We expanded our gross margins by approximately 900 basis points during the third quarter, largely as the result of our business transitioning away from cryptocurrency customers which carried lower margins. In addition, we discontinued some non-profitable areas of our business. While these items contributed to our revenue decline of 27% in the quarter, gross profit dollars only declined by 8%.

We remain cautious yet optimistic regarding the advertising technology space. Historically, companies tend to cut their advertising budgets during periods of economic uncertainty as a cost-saving measure. However, when the business environment becomes more stable and secure, companies often increase their advertising investment to regain market share.”

Third Quarter 2023 Highlights

• Revenues for the three months ended September 30, 2023, were $7.1 million, a 27% decline relative to 3Q22. Revenues continued to be negatively affected by the global slowdown, in particular the areas of cryptocurrencies. We continue to diversify our business by increasing our exposure to sectors such as E-commerce, iGaming, transportation, and consumer product goods as well as offering a wider range of performance based products and services. 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 3Q23 have risen in comparison to the corresponding period last year.
• Gross profit margin was 40% for the three months ended September 30, 2023, versus 31% for the same period last year. The 900 basis point increase was due to lower revenues from the cryptocurrency customers, which carry lower margins. In addition, the company exited certain non profitable areas of its business.
• Research and Development expenses for the three months ended September 30, 2023, were $0.7M, a 49% decrease relative to Q3 2022. Selling, General and Administrative expenses for the three months ended September 30, 2023, were $2.2M, a 30% decrease relative to Q3 2022. This decline in expenses was mainly the result of our cost savings restructuring initiatives, mainly reflect the impact of 40% reduction in headcount.
• Adjusted EBITDA for the three months ended September 30, 2023, was $575,000 as compared with Adjusted EBITDA of $15,000 for the three months ended September 30, 2022, reflecting cost savings initiatives.
• Operating loss was $0.08M for Q3 2023, compared to an operating loss of $1.5M in Q3 2022, reflecting the cost savings initiatives.
• Net cash of $0.2M was generated from operating activities in 3Q23, reflecting positive cash generation from operating activities for the first time in 5 consecutive quarters. As of September 30, 2023, the Company’s cash and cash equivalents amounted to $1.5 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 November 30, 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/xyJNoQ9o8l7

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/xyJNoQ9o8l7.

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, including as a result of the impact of general economic trends, its future ability to successfully continue its growth, its ability to improve profitability, 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, 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

+972 722200555

Investor relations:

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

646-821-9701

Conference call will be held on June 2, 2023, at 11AM ET.

VANCOUVER, British Columbia, May 30, 2023 – 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 March 31, 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.

Key Financial Highlights

• Achieved strong gross margins of 40% in 1Q23 versus 30% in 1Q22.
• Achieved positive Adjusted EBITDA of $0.2M in 1Q23.
• Ended 1Q23 with a cash balance of $2.7M and no long-term debt.

Management Commentary

Amit Bohensky, Chairman of Zoomd Technologies, stated, “During the first quarter of 2023, our business faced ongoing macroeconomic challenges, particularly in the fintech, cryptocurrencies, and e-commerce sectors.

Under the guidance of our new CEO, Ido Almany, we are currently undertaking a thorough analysis and evaluation of each business line and supporting operations with the objective of consolidating and significantly streamlining our cost structure. We have identified several areas of inefficiency that are currently under active discussion by management and awaiting subsequent approval from the board. As of the date hereof, a final decision has not been made, and discussions are still currently underway. We anticipate that final decisions on each business line and supporting operations will be made imminently. Once these decisions are finalized and the corresponding measures are implemented, we believe they will lead to improved bottom line and increased cash flow for the Company.”

First Quarter 2023 Highlights

• Revenues for the three months ended March 31, 2023, were $6 million, a 47% decline relative to Q1 2022. The decrease in revenues is primarily as a result of global macroeconomic conditions that impact client advertising budgets in general and especially in areas of Fintech and in particular Cryptocurrency.

• Gross profit margin was 40% for the three months ended March 31, 2023, versus 30% 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 March 31, 2023, were $1.2M, a 20% decrease relative to Q1 2022, reflecting lower deprecation and other R&D expenses.
• Selling, General and Administrative expenses for the three months ended March 31, 2023, were $3.1M, a 16% increase YOY, primarily reflecting increases in expenses incurred as a result of new employees joining the Company, primarily after the acquisition of Albert.
• Other expenses – Impairment for the three months ended March 31, 2023, are software costs write off in the amount of $2.8M.
• Adjusted EBITDA for the three months ended March 31, 2023, was $0.2M as compared with Adjusted EBITDA of $1.9M for the three months ended December 31, 2022. The decrease in Adjusted EBITDA was primarily attributed to the decrease in revenue.
• Operating loss was $3.5M for Q1 2023, compared to an operating profit of $0.9M in Q1 2022, and was primarily attributable to the impairment of intangible assets, which are the software costs write off.
• As of March 31, 2023, the Company’s cash and cash equivalents amounted to $2.7 million, and no long-term debt.

• On March 28, 2022, the Company announced that it has acquired substantially all of the assets of Albert Technologies Ltd. and Albert Technologies’ Inc in a cash and share deal. As partial consideration for certain of Albert’s employees hired by the Company, the Company has entered into certain shares for services arrangements with such employees totaling up to $0.2M worth of company shares, to be issued upon the completion of the services to the Company and using the price per share at the time of issuance. In September 2022, the Company issued 333,863 shares to Albert’s employees with a deem price per share of CAD$0.39. In May 2023, the Company issued 804,923 shares to Albert’s employees with a deem price per share of CAD$0.16.
• Zoomd’s Board of Directors is reviewing and considering potential changes to optimize business lines and product offerings for improved growth and profitability.

Conference Call

Amit Bohensky, Founder and Chairman, will hold a conference call to discuss the quarter’s financial results at 11AM ET on June 2, 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/v87wJ1YJxdQ

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/v87wJ1YJxdQ.

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 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 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 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 ongoing management review, 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. 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

+972 722200555

Investor relations:

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

646-821-9701

ZOOMD DELIVERED A FOURTH CONSECUTIVE QUARTER OF GROWTH IN BOTH REVENUE AND ADJUSTED EBITDA, ACHIEVING AN ADJUSTED EBITDA INCREASE OF MORE THAN US$5M FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021 COMPARED TO THE SAME PERIOD IN 2020^[1]

Achieving a record revenue per quarter of US16M and a record revenue growth rate of 141% YOY

VANCOUVER, BRITISH COLUMBIA, November 22, 2021 – Zoomd Technologies Ltd. (TSXV: ZOMD) (OTC: ZMDTF) (“Zoomd” or the “Company”), a leading provider of an online advertising robust marketing platform that focuses on improving customers user acquisition campaigns, reported its financial results for the three and nine-month period ended September 30, 2021 today. The financial statements and MD&A are available on SEDAR under the Company’s profile.

Ofer Eitan, Zoomd’s CEO, commented, “we achieved a new record in Q3 2021 as our focus on diversifying our client base, both with respect to sectors and geographies, is beginning to bear fruit. We are seeing a surge in budgets from our legacy clients that are looking to expand their acquisition sources, as the post-pandemic recovery continues and privacy limitations start affecting advertisers ROI’s. The strong revenue growth is producing positive adjusted EBITDA and cash flows, demonstrating the strength of our business and strategic positioning”.

Ofer further added, “we are continuing to experience strong demand for our user-acquisition products and services from both new and existing clients, driven by our innovative technology, and the great results our existing clients are achieving with our technology. We are seeing an increase within the allocation of advertising budgets to our platform and services, which we consider to be a direct result on the Company’s ability to mitigate against the impacts of the major iOS 14, 15 updates and other new market privacy limitations rolled out, as well as announced by Apple and Google.

Ofer ended by noting that, “our growth initiatives to expand into new geographies, such as Latin America and Asia, as well as expanding in hyper growing industry categories including fintech, e-commerce, gaming, and on demand services, have proven successful. As we look forward to 2022 and beyond, we expect to ramp up our self-serve products to expand our client base and further the growth of the Company.”

THIRD QUARTER 2021 KEY HIGHLIGHTS (ALL FIGURES ARE IN USD)

• Q3-2021 Revenues increased 141% compared to Q3-2020 and 43% compared to Q2-2021 to a quarterly record of $16M, making the fourth consecutive quarter of revenue growth.
• Q3-2021 growth was driven primarily by the growing momentum in current customers as well as the onboarding of new clients.
• The Company increased the number of “big customers”^[2] by 33% YOY. Moreover, the average revenue per customer increased by 170%% YOY.
• The Company generated a positive Adjusted EBITDA of $1.6M during the quarter, its highest level as a public company, compared to (-$0.9M) in Q3-2020 and an increase of 25% relative to Q2-2021
• The Company achieved a positive cash flow from operations of $1.7M in the quarter, compared to (-$1M) in Q3-2020.

THIRD QUARTER 2021 HIGHLIGHTS (ALL FIGURES ARE IN THOUSANDS USD)

• For the three months ended September 30, 2021, revenues were $15,961, as compared to $6,625 for the three months ended September 30, 2020, an increase of approximately 141% year-over-year. The increase in revenues is primarily a result of customer acquisitions in growth sectors such as fintech, e-commerce, and gaming, as well as expansion in new geographies such as Latin America. In addition, our existing customers have allocated an 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 September 30, 2021, versus 31% for the same period last year, reflecting the typical lower margin achieved in the starting phases of new client relationships.

• Research and Development (R&D) expenses for the three months ended September 30, 2021, were $ 1,194, a 27% decrease YOY, primarily reflecting the capitalization of software development costs.
• Selling, General and Administrative (SG&A) expenses for the three months ended September 30, 2021, were $2,459, a 31% increase YOY, primarily reflecting the expenses incurred as a result of the Performance Revenues acquisition and increases in sales department bonuses as part of the significant growth in revenues.
• Adjusted EBITDA for the three months ended September 30, 2021, was $1,647 as compared with an Adjusted EBITDA loss of (-$850) for the three months ended September 30, 2020, an increase of $2,497. The improvement in the Adjusted EBITDA is primarily attributed to the significant increase in revenue.
• Net cash generated from operating activities for the three months ended September 30, 2021 was $1,653 as compared to net cash used from operating activities of $(-$991) in Q3-20, a positive change of $2,64 The increase in cash used in operating activities is primarily attributed to the increase in revenues over the comparative periods.
• As of September 30, 2021, the Company’s cash and cash equivalents amounted to approximately $3,217, and no deb, compared to $2,972 on Septemeber 30, 2020. In addition, as of September 30, 2021 the Company had $10,689 of trade receivables, compared to $4,619 for the same period last year.

platform and self serve products update:

• During Q3 2021, Zoomd’s platforms received market justification of its approach to the iOS 15 privacy changes led by Apple. Zoomd’s underlying product logic is built in a way that resulted in the privacy changes having a minimal impact on the products and their users.
• The Company signed a Marketing Partner Agreement with Snapchat and got certified as a formal API platform integrated marketing partner. The platform integration will grant Zoomd’s customers the ability to enjoy the growing success and uniqueness of Snapchat under within the Zoomd ecosystem which compliments the other channels that Zoomd is already integrated with.
• The Company released an updated publisher dashboard for publishers which works with Zoomd’s “on site” search solution. The upgraded version provides publishers more insights and clarity regarding site traffic, search behavior and content engagement.

Conference Call

Zoomd management will host a conference call on November 23, 2021 at 11:00 a.m. ET to discuss the third quarter’s results.

Please join the call using the following link: https://zoomd.com/investors/ or at https://www.webcaster4.com/Webcast/Page/2473/43788

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. The references in this press release to Adjusted EBITDA are forward-looking information about prospective financial performance and readers are cautioned that this information may not be appropriate for other purposes.

Please refer to the Company’s MD&A for the three and nine-month period ended September 30, 2021 for a reconciliation of EBITDA and Adjusted EBITDA to Operating Gain (Loss) for the three and nine months ended September 30, 2021, and 2020.

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, statements with respect Zoomd’s 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 which 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 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.

[1] “Adjusted EBITDA” is a NON-IFRS financial measure. See “Caution Regarding Non-IFRS Financial Measures”.

[2] “big customers” are considered customers that produce an average monthly revenue of more than US$100,000.

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@lythampartner.com

ZOOMD REPORTS Q1 2021 FINANCIAL RESULTS HIGHLIGHTED BY STRONG GROSS MARGINS. MAINTAINS 2021 REVENUE GROWTH GUIDANCE OF 30% TO 40%

Financial Results Key Highlights & Outlook

• Maintains 2021 revenue growth guidance of 30% to 40%, reflecting the strong post-pandemic market recovery, the onboarding of new clients, the launch of new product lines, and strategic M&A activity.

• Gross profit margin increased roughly 17% from 30% to 35%, primarily due to focusing on more profitable customers.

• Over the past 9 months, the Company has diversified its customer base with the onboarding of customers operating in industries to areas such as fintech, entertainment, and ecommerce. In addition, sectors that were shut down during the pandemic and are reopening, such as sports, are benefiting existing customers.

• Beginning to see the positive impact of “Performance Revenues” acquisition.

VANCOUVER, British Columbia, June 1, 2021 – Zoomd Technologies Ltd. (TSXV: ZOMD) (OTC: ZMDTF) (https://wordpressmu-935437-3249329.cloudwaysapps.com) and its wholly-owned subsidiary Zoomd Ltd. (collectively, “Zoomd” or the “Company”), the marketing tech (MarTech) user-acquisition and engagement platform, today reported its financial results for the three months ended March 31, 2021.
The financial statements and MD&A are available on SEDAR under the Company’s profile.

“We are excited to return to sustainable revenue growth as our clients expand their advertising budgets to pre-COVID levels” said Ofer Eitan, Zoomd’s CEO, adding “Over the last nine months we have been successful in acquiring new customers in growing industries such as fintech and e-commerce. We expect our newly acquired customers to increase their activity with us during 2021. Our organic growth in the upcoming months, combined with our integration of the Performance Revenues acquisition and ongoing M&A discussions, lead us to maintain our 2021 revenue growth guidance. Furthermore, we are proud of the strong gross margins achieved during the first quarter, which are the result of our focus on profitable activities and our efforts to diversify our customer base.”

Platform Update

During Q1-2021, Zoomd released self-serve products such as Performance, Premium channels, and DSP. The self-serve products save Zoomd’s advertising customers money, time and resources in the ad buying, optimization process and general campaign management, by uniting all of the client’s advertising campaigns under a single central dashboard, allocating budget and providing data on the user acquisition capabilities across various digital channels.

Acquisition of Performance Revenues

On February 9, 2021, Zoomd acquired Performance Revenues, a leading international mobile marketing and influencer company, providing a variety of performance-based marketing solutions led by a team of professional marketers, media buyers and account managers. Zoomd believes that it is able to leverage the people, talent, and clients acquired through this acquisition to drive growth in the future by realizing certain synergies between the platforms.

FIRST QUARTER 2021 HIGHLIGHTS (ALL FIGURES ARE IN USD)

• For the three months ended March 31, 2021, revenues amounted to $6,776, as compared to $6,513 for the three months ended March 31, 2020, an increase of approximately 4% year over year. The increase in revenues is primarily a result of the onboarding new customers in the second half of 2020 and an increase of online media and marketing budgets for some of our top 10 customers. In addition, during the period, the Company added numerous clients to its platform, with smaller initial budgets that the Company expect to increase in the coming months.
• Gross profit was 35% for the three months ended March 31, 2021, roughly 17% increase from 30% for the three months ended March 31, 2020. The improvement in the gross profit margin was primarily attributable to the Company’s decision to disengage from less profitable customers and general client base diversification, thereby not connecting the Company’s performance to any specific industry.
• Selling, General and Administrative (SG&A) expenses for the three months ended March 31, 2021 were $1.96 million, roughly flat YOY, as increased advertising expense was offset by a decrease in G&A spending. Research and Development (R&D) expenses for the three months ended March 31, 2021 decreased 31% YOY reflecting the capitalization of software development costs.
• EBITDA for the three months ended March 31, 2021 increased by $90 The YOY increase is attributed to the increase in revenue, capitalization of software and the improvement in the gross profit margin, all of which carried the Company to positive adjusted EBITDA for the first time since it became publicly traded. “EBITDA” is a non-GAAP and non-IFRS financial measure that does not have a standardized meaning prescribed by GAAP or IFRS – please see “Non-IFRS Measures” below.

The following table presents a reconciliation of EBITDA and Adjusted EBITDA to Operating Loss for the three months ended March 31, 2021 and 2020:

• As of March 31, 2021, the Company’s cash and cash equivalents amounted to $4 million, and no debt.

2021 Growth Expectations (ALL FIGURES ARE IN USD)

The Company is maintaining its revenue outlook of $25 million to $36 million for the year ending December 31, 2021, representing growth of 30% to 40% YOY. This outlook reflects the following assumptions which management believes are reasonable:

• Organic Growth – Management estimates that at least $4 million or approximately 40% of the revenue growth for the year ending December 31, 2021 to be caused primarily from the existing business model where the key drivers are:
  • New customers acquired primarily during the second half of 2020 through to the beginning of the year 2021, which are expected to increase their marketing budgets as they become more familiar with the platform, the services and the results.
  • New customers acquired by the newly launched Self-Served products: Performance, Premium channels, and DSP.
  • Post-COVID online advertising demand surge, especially from sectors that were shut down during the height of the pandemic and are beginning to reopen, such as sports.
  • Geographical expansion in India, East Europe, the Philippines, and Japan announced earlier this year.
• Mergers and Acquisitions – Management estimates that up to $6 million or 60% of the revenue growth for the year ending December 31, 2021 to be caused primarily as a result of acquisitions of carefully selected target companies that in line with the Company’s business, strategy, and vision. The Company’s acquisition of “Performance Revenues” that was announced on February 10, 2021 already factors into the above expectation as management believes it will bear a positive impact on its revenue growth in 2021. In addition, the Company has announced that it is engaged in series of discussions for potential acquisitions during 2021.

The above forward-looking financial information was approved by the Company in connection with the filing of the MD&A for the year ended December 31, 2020.

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.

NON-IFRS Measures

This press release refers to “EBITDA” and “Adjusted EBITDA”  which is a non-GAAP and non-IFRS financial measure that does not have a standardized meaning prescribed by GAAP or IFRS. The Company’s presentation of this financial measure may not be comparable to similarly titled measures used by other companies. This financial measure is intended to provide additional information to investors concerning the  Company’s estimated results.  EBITDA is defined as earnings before interest, tax, depreciation and amortization, and Adjusted EBITDA adjusts EBITDA for share-based compensation. Both measures are used to measure of a company’s operating performance. Essentially, it is a way to evaluate a company’s performance without having to factor in financing decisions,  accounting decisions or tax environments.

Disclaimer IN REGARD TO Forward-looking statements

This news release includes certain “forward-looking statements” and “forward-looking financial outlook” (collectively, “forward-looking statements”) under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to Zoomd’s future financial situation, its expected revenue growth for 2021, its ability to successfully grow revenue organically and via mergers and acquisitions, the impact and length of time of the COVID-19 pandemic on global advertising budgets and Zoomd’s revenue, its ability to meet its strategic targets on the development roadmap, the overall success of the development roadmap, its ability to realize synergies in connection with the acquisition of Performance Revenues and the overall success of the new SaaS product. Forward-looking statements are necessarily based upon several estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which 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, political and social uncertainties (including the impacts of the COVID-19 pandemic), 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

+972 722200555

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