Zedge, Inc.

Good day and welcome to ZEDGE's earnings conference call for the fourth quarter and full year fiscal 2022 results. During management's prepared remarks, all participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation by ZEDGE's management, there will be an opportunity to ask questions. To ask a question, please press star, then 1 on your touchtone phone. To withdraw your question, please press star, then 2. I will now turn the call over to Brian Siegel.

Thank you, operator. In today's presentation, Jonathan Reich, ZEDGE's Chief Executive Officer, and Isai, ZEDGE's Chief Financial Officer, will discuss ZEDGE's financial and operational results for the fourth quarter and full year ended on July 31st, 2022. Any forward-looking statements made during this conference call during the prepared remarks or in the question and answer session, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results in the future to differ materially from those discussed on today's call. These risks and uncertainties include, but are not limited to, specific risks and uncertainties disclosed in the reports that ZEDGE files periodically with the SEC. ZEDGE assumes no obligation to update any forward-looking statements or to update the factors that may cause the actual results to differ materially from those that they forecast. Please note that our earnings release is available on the investor relations page of the ZEDGE website. The earnings release has also been filed on form 8K with the SEC. I would now like to turn the conference over to Jonathan. Jonathan?

Good morning. Thank you, Brian, and thank you all for joining us today. I'm going to start by briefly reviewing our fourth quarter and fiscal 2022 results. Revenue increased 41% and 36%, respectively. Both Guru Shots and Emojipedia were primary drivers of both the year-over-year and sequential quarterly growth. Ex-Guru Shots and Emojipedia Revenue was up by 22%, driven primarily by advertising. As I mentioned in earlier calls, we are investing in scaling Guru Shots and don't expect it to be profitable for another 18 to 24 months. Even so, on a fully consolidated basis, Zedge remained profitable during the fourth quarter, although less so than last year, once you exclude the one-time accounting gain. On a positive note, for the Zedge app, total installs increased 11% in 2022 from the end of 2021. ARPMAU, that is average revenue per monthly active user, increased 17%, and Zedge Premium Gross Transaction Value, or GTV, grew by 23% in the fourth quarter and 60% for the year. Mail for the Zedge app declined across well-developed and emerging markets, finishing the year at $32 million. E will provide more financial details in his section. Now I will share an update on our strategic priorities moving forward. Our leading products are the Guru Shots photography game and Zedge's freemium digital content marketplace, which today offers mobile phone wallpapers, video wallpapers, ringtones, and notification sounds. In total, our products served over 40 million users in July. Our company is positioned at the intersection of two major growth trends in consumer tech, casual gaming, and the creator economy. Today, most smartphone users have become amateur content creators, sharing their photos, illustrations, memes, and videos to express themselves and gain social validation. In addition, they value friendly competition and garner popularity and recognition from their online community. Many of these creators are talented enough to attract a meaningful following and monetize their content. This is what's known as the creator economy, a market that has grown massively over the last five years. Prior to the Guru Shots acquisition this past April, our core product was the Zedge app, which served 32 million Mao in July 2022. We monetize these customers with a combination of advertising, subscriptions, and in-app purchases of Zedge tokens, our virtual currency. Zedge Premium offers artists the ability to sell their creations directly to our customers. In December of 2021, we expanded the opportunity for Zedge premium artists by introducing NFTs Made Easy, which provides non-crypto experts with an easy-to-use, eco-friendly platform to tokenize and sell their art to our customers for Zedge tokens. We've been somewhat insulated from the effects of the crypto winter that is currently challenging the NFT market. as our offering focuses on making NFTs affordable and easy to obtain for mainstream consumers. GuruShots is a category killer that fuses photography with gaming, enabling amateur photographers, essentially anyone with a smartphone, to compete in a wide variety of contests across iOS, Android, and the web that showcase their photos. The game mechanics include progressively more difficult competitions with successful players mastering their skills and then continuing to the next level until ultimately earning the coveted Guru title. Players can compete individually or join together as a team. The game includes community features, leaderboards, and chat functionality, which create a sense of belonging, inspiration, and competition. The penetration rates leave a lot of room for growth as we estimate that 30 to 40 million photo enthusiasts regularly use their smartphones to take and publicly share high-quality photos and who would be interested in participating in photo contests every month. We also acquired Emojipedia, a profitable website that is the go-to source for all things emoji, in August of 2021. Over the past year, we have redesigned the Emojipedia website, localized it into 18 languages beyond English, and have started to recognize the benefits associated with overhauling the ad stack. Zedge is building a strategic flywheel that leverages the synergies of a gaming and marketplace dynamic across our portfolio, engaging communities of consumers with content that provides value across a multitude of online and mobile platforms including social networks, messaging, and gaming. This approach connects creators with friendly competition, community, and commerce. One of the critical foundations needed to accomplish this formidable goal is easy access to accurate data that can be used to make informed decisions about all aspects of our business, including marketing, product design and usage, content serving, etc. To this end, we created a dedicated data leadership role and recently hired a head of data to oversee and direct all data initiatives, including data collection, cleansing, analytics, model building, and deployment. Organizing all of these efforts in one group enables us to progress with a unified approach that is expected to drive improved monetization, marketing, product development, data science, and business intelligence. We have also committed meaningful dollars to marketing, specifically paid user acquisition and re-engagement campaigns. We are scaling up while also benefiting from the data that guides our decisions. The changes to user privacy rules that have unfolded in the industry over the past 18 months or so require us to analyze all aspects of the marketing funnel with granularity in order to optimize the return on investment. We are developing our capabilities in this domain company-wide in order to deliver profitable customers to Zedge's marketplace and guru shots. Good marketing is a function of many ingredients and depends on good data. As such, Our success is tied to coupling these initiatives. Another marketing focus is enabling GuruShots artists to sell their awesome images in our premium marketplace. We expect to introduce phase one of this crossover later this month and evolve from there, eventually offering sales not only from within the Zedge app, but also on the web. Every month, GuruShots players upload around a million photos to the platform. We are excited about the monetization opportunity that this creates for GuruShots players who will be able to make money from their content that they create for gameplay. In just about six months, we are delivering on a synergy that we identified when making this transformative acquisition. Talking about synergies, we started a cross-pollination process, loaning various members of our Zedge app team to GuruShots to both accelerate GuruShots initiatives and acquire gamification expertise as we expect to apply these learnings to the Zedge app. This also allows us to control SG&A better as we want to continue running the company profitably. From a product perspective, We have several promising developments that are either in the midst of being introduced or are to be rolled out in the next several weeks. Starting with Guru Shots, we have three major initiatives underway. The first relates to customer onboarding. Over the past several months, we revamped the onboarding process and recently had a breakthrough with respect to converting users into paying players. Our new onboarding ramp has yielded a more than 35% rise in converting installs to first-time paying players, which is a key gauge of measuring the success of driving users to paying players that generate revenue, and a positive return on ad spend, otherwise known as ROAS. It goes without saying that time will tell if these increases are sustainable, but if they are, They speak to some of the early benefits associated with overhauling our data organization. Next, we are about to introduce a feature that our players have been asking for, mainly a learn feature, which is a TikTok style feed of short form and engaging educational videos that focus on providing tips and techniques for improving one's photographs created by expert photographers. Depending on how this unfolds, we may be able to use it as a mechanism to introduce a subscription-based offering and or advertising support, providing additional incremental revenue and diversifying monetization. Finally, we've been testing Battles, which offers a quick way for newbies to start competing in simplified photo competitions that are short, limited in size, and built on a coin-based economy. We expect that battles will allow us to drive more users into gameplay, increase engagement, advance our game economy, and ultimately drive more revenue. Moving to the Zedge app, we initiated a comprehensive 360-degree user experience review to identify shortcomings that chip away at engagement, retention, and lifetime value. If we successfully close these gaps, we expect to benefit from improvements, not only in the aforementioned KPIs, but also in improving our already strong user ratings and reviews, which would unleash improved placement in Google Play's algorithm and ultimately drive more user installs. As mentioned earlier, we continue enhancing Zedge Premium and specifically the NFT's Made Easy platform. As we evolve the offering, we will add features including drop dates, trading, the ability to use crypto as a payment type, and opening the platform up to more types of content and artists. Additionally, we expect more well-recognized artists to distribute their content in our marketplace, as Banksy and Misha Klein have already done. Turning to Emojipedia, we now support 19 different languages. Going forward, we will focus on two areas, optimizing the ad stack and expanding the product offering potentially with a native mobile app version. Finally, we are down the road in evaluating the viability of new content and products in addition to the ones we've discussed today. Stay tuned for more information on this in the upcoming quarters. The Guru Shots acquisition will alter our financial projections given the growth investments we expect to make. Furthermore, like many digital businesses, our business is experiencing pressure due to global economic uncertainty, geopolitical risk, especially resulting from Russia's invasion of Ukraine, energy shortages, inflation, and rising interest rates. As such, we are remaining cautious with our outlook. That said, we still expect revenue growth in fiscal 2023 on a consolidated basis while remaining profitable. Next week, we are going to celebrate Thanksgiving. Living in a free and democratic country gives us much to be thankful for. I would like to use this opportunity to thank our investors for your continued support. I also want to thank our employees for their commitment and hard work, especially in light of the Guru Shots acquisition. Finally, I'd like to underscore how highly we think of our colleagues at Guru Shots. We've had a great start to our relationship, and we are excited to work together to increase shareholder value over time. Now I would like to turn the call over to E, who will review our financial results. E?