Conference call will be held on June
2, 2023, at 11AM ET
VANCOUVER, BC , May 30, 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 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 $8.6
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
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.