Conference call will be held on April
28, 2023 at 11AM ET
VANCOUVER, British Columbia,
April 28,
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
and full year ended December 31,
2022. The Company's financial statements and management
discussion and analysis ("MD&A") are available on SEDAR
under the Company's profile.
Key Financial Highlights
- Despite global macroeconomic headwinds, revenues in FY2022
remained stable.
- FY2022 adjusted EBITDA was $3.7M,
as gross margins were constant.
- Ended FY2022 with a cash balance of $3.8M and no long-term debt.
Management Commentary
Amit Bohensky, Chairman, stated
"We were able to slightly grow our revenues and maintain our gross
margins in 2022, despite the ongoing global turmoil.
Despite the macroeconomic challenges, our current clients
continue to be pleased with the results that Zoomd brings to their
customer acquisition efforts. In 2022 we were successful in
acquiring new clients, and our pipeline of new customers remained
solid. Our products and services enable our customers to grow their
user acquisition programs with limited additional resources, giving
the ability to scale immediately by demand.
We have successfully integrated Albert's operations, an
artificial intelligence marketing platform for advertisers,
acquired during Q1, and started cross selling, which has been
received well.
Our products are the Company's future, allowing us to offer more
digital advertising services; self-managed and AI based. These
products provide clients with a diverse digital advertising
solution not only for performance but also full funnel marketing
objective solutions. Our products unlock our capacity to attract
more small and mid-range customers and to generate ongoing recuring
revenues. In 2022 we have successfully onboarded a wide variety of
customers, including WPT, Rappi, Samsung, Elektra (MX), Free now,
and Binance. We remain optimistic about Zoomd's long-term growth
prospects."
Fourth Quarter 2022 Highlights (All Figures in
Thousands in USD)
· Revenues for the three months ended December 31, 2022 were $10.8
million, a 42% decline relative to Q4 2021. Comparisons from 4Q21,
in which we grew an amazing 183%, are impacted by the overall
changes in the macroeconomic environment, in particular the areas
of fintech, crypto and e commerce. Excluding the
effect of revenues from crypto and fintech customers,
revenues in the fourth quarter would have declined approximately
6%.
· Gross profit margin was 38% for the three months ended
December 31, 2022, versus 30% for the
same period last year, reflecting lower revenues from the
Cryptocurrency segment which carries lower margins, as
well increased revenues from Albert, which carries higher gross
margins.
· Research and Development expenses for the three months
ended December 31, 2022 were
$2.5M, a 157% increase YOY, primarily
reflecting salaries to new employees who joined the Company, as
well as salaries and retention payments to Albert employees and
former share holders
· Selling, General and Administrative expenses for the
three months ended December 31, 2022 were $3.2M, a 24% increase YOY, primarily reflecting
increases in expenses incurred as a result of new employees joining
the Company, primarily after the acquisition of Albert.
· Adjusted EBITDA for the three months ended December 31, 2022, was $0.1M as compared with Adjusted EBITDA of
$2.9M for the three months ended
December 31, 2021. The decrease in
Adjusted EBITDA was primarily attributed to the decrease in
revenue.
· Operating loss was $1.7M
for Q4 2022, compared to an operating profit of $2.1M in Q4 2021, and was primarily attributed to
the decrease in revenues, salaries and retention payments made to
Albert's former employees which have joined Zoomd.
· As of December 31, 2022,
the Company's cash and cash equivalents amounted to $3.8 million, and no long-term debt.
Fiscal Year 2022 Highlights (All Figures in Thousands
in USD)
· For the twelve months ended December 31, 2022, revenues were $53M, an increase of 1% year-over-year. The flat
YOY revenues are primarily a result of global macroeconomic
conditions that impact client advertising budgets especially in
areas of Fintech and Cryptocurrency.
· Gross profit margin was 31% for the twelve months ended
December 31, 2022, roughly flat
versus 2021.
· Research and Development expenses for the twelve months
ended December 31, 2022 were
$6.7M, a 59% increase YOY, primarily
reflecting salaries to new employees who joined the Company, as
well as salaries and retention payments to Albert employees and
former share holders.
· Selling, General and Administrative expenses for the
twelve months ended December 31, 2022
were $12M, a 32% increase YOY,
primarily reflecting increases in expenses incurred as a result of
new employees joining the Company, primarily after the acquisition
of Albert.
· Adjusted EBITDA for the twelve months ended December 31, 2022, was $3.7M as compared with Adjusted EBITDA of
$5.8M for the twelve months ended
December 31, 2022. The decrease in
Adjusted EBITDA was primarily attributed to the increase in
operating expenses at the result of to new employees who joined the
Company, as well as payments to Albert employees who joined the
company after the acquisition.
· Operating loss was $2.1M
for FY 2022, compared to an operating profit of $3M in FY 2021, and was primarily attributed to
salaries and retention payments made to Albert's former employees
which have joined Zoomd, as well as payments made in connection
with the acquisition of Albert.
Conference Call
Amit Bohensky, Founder and
Chairman, will hold a conference call to discuss the quarter's
financial results at 11AM ET on April
28, 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/GQkqjwgjYry
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/GQkqjwgjYry .
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 mobMile 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 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 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
Website: www.zoomd.com
Investor relations:
Lytham Partners, LLC
Ben Shamsian
New York | Phoenix
ZOMD@lythampartners.com
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SOURCE Zoomd Technologies Ltd.