Zedge, Inc.

Good day and welcome to Zedge's earning conference call for the first quarter fiscal 2025 results. During management's prepared remarks, all participants will be in a 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 one on your touchtone phone. To withdraw your question, please press star, followed by two. I will now turn the call over to Brian Siegel. Sir, the floor is yours.

Thank you, Operator. During today's call, Jonathan Wright, ZEDGE's Chief Executive Officer in Eastside, Zedge's Chief Financial Officer will discuss Zedge's financial and operational results that were reported today. Any forward-looking statements made during this conference call during the prepared marks 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 calls. These risks and uncertainties include, but are not limited to, specific risks and uncertainties disclosed in Zedge's periodic SEC filings. ZEDGE assumes no obligation to update any forward-looking statements or to update the factors that may cause 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, and it has also been filed on Form 8K with the SEC. Finally, on this call, we will use non-GAAP measures. Examples include non-GAAP EPS, non-GAAP net income, and adjusted EBITDA. Please see our earnings release for an explanation of our use of these non-GAAP measures. Now I would like to turn the call over to Jonathan.

Good morning. Thank you, Brian, and thank you for all joining us today. We entered fiscal 2025 with an eye toward driving innovation, improving operational efficiencies, and positioning Zedge for sustainable long-term growth. Although the quarter presented some challenges, The positive momentum across key areas of our portfolio and the advancements we've made reaffirm our confidence in our ability to deliver strong results over the course of the fiscal year. The Zedge marketplace continues to lead the charge in our ecosystem. Subscription revenue grew 21% year over year, bolstered by accelerated growth in lifetime subscriptions, which contributed to an 8% increase in overall subscriber counts. Zedge Premium was also a highlight during the quarter, with gross transaction value, or GTV, surging 62% year-over-year due to a combination of performance of our Parallax 3D wallpapers, rewarded video CPM optimizations, and the launch of Paint 2.0, which introduced powerful new creation capabilities, including image-to-image, and real-time photo editing and AI enhancements. These innovative products demonstrate the growing demand for personalized, interactive, AI-powered digital experiences. Another notable achievement this quarter was the 22% increase in average revenue per monthly active user, or ARPMAL, reflecting our success in attracting users with higher value profiles. For example, On iOS, revenue grew more than 60% year over year, underscoring the untapped potential of this higher ARPMO platform. With continued enhancements and targeted marketing, we see significant room for further growth on iOS. While advertising revenue was negatively impacted from challenges, including a temporary bug that was resolved before the end of the quarter, delays with an ad partner's testing regime and integration complexities associated with adding a new ad mediation platform to our stack, we remained positive about the environment. In addition, we took a more conservative approach to paid user acquisition, prioritizing higher returns on ad spend or ROAS over rapidly scaling revenue. Emojipedia delivered exceptional performance in Q1. with revenue up 33% year over year, achieving its highest ever quarterly results. Today, Emojipedia generates 100% of its revenue from advertising. And our world-class ad operations team's continuous optimization of the ad stack continues paying off. This success also reaffirms Emojipedia's role as a revenue-generating powerhouse within our portfolio and validates our original acquisition thesis. On Cyber Monday, Emojipedia expanded its emoji playground with the beta launch of its AI emoji generator, marking another milestone in our strategy to transform Emojipedia into an interactive and creative platform. Users can now design their own custom emojis, making this a very personal experience and allowing them to make their creative dreams a reality. This is in keeping with our goal of turning consumers into creators. Although it's too early to report on the engagement metrics, we believe this feature along with the upcoming redesign of the website are critical to expanding Emojipedia's user base and deepening engagement with existing users. GuruShots remains a work in progress, and we are taking decisive steps to improve its growth trajectory. Our strategy focuses on attracting new users and converting them into recurring paying players. To date, we introduced a fun and comprehensive onboarding experience to draw new users into the gameplay with ease and migrated to a coin-based in-game economy to enable more possibilities to reward and monetize players. We also launched missions, a set of tasks that players need to complete to earn rewards. Taken together, these initiatives have yielded encouraging results, improving new player engagement and retention. Over the course of the past week, we started to debut Duels, a fast-paced real-time player versus player game mechanic that adds an exciting competitive layer to Guru Shots. We believe this enhancement will also drive further engagement from all players, including new, legacy, and even those who may not even been drawn solely to the game's traditional format. Although the transition has come with a drag on near-term revenue, we are optimistic about the long-term potential of these efforts. By aligning our product roadmap with robust marketing initiatives and leveraging live ops strategies, we aim to widen the top of the funnel, bring in new users, and unlock revenue growth. As we look to the rest of fiscal 2025, our focus is on leveraging generative AI to transform users into creators and drive growth across all business units. The next phase of our AI roadmap includes the introduction of an AI audio generator for the Zedge marketplace, which we believe represents an exciting opportunity to attract new users and deepen engagement with existing ones. Audio personalization is an emerging trend in AI, and we aim to further enable our users to become creators with this feature. In fiscal year 25, we are also focusing on transforming our technology development infrastructure to support faster and more efficient development of new apps and products. By building a modular and scalable platform, we aim to streamline the creation process. allowing components to be repurposed or adapted across multiple projects with ease. This approach not only enhances efficiency and reduces costs, but also enables us to operate with greater agility. With this foundation, we can quickly prototype, test, and refine new ideas, ensuring we prioritize initiatives that demonstrate strong potential for returns. This dynamic framework empowers us to pivot or scale efforts as needed, driving sustainable and profitable growth over the long term. Beyond product innovation, our marketing team remains a critical driver of revenue growth. The team is accelerating ROAS-positive user acquisition, particularly in well-developed economies where we see strong monetization potential. Our continued success with iOS users is a testament to this strategy. For Emojipedia, we believe the continued expansion of the emoji playground and the anticipated website redesign will sustain its reputation as the premier destination for all emoji enthusiasts worldwide and enable further revenue growth. Guru Shots, meanwhile, is at a pivotal stage. By focusing on features that drive new user growth and effectively monetizing those users, we are laying the groundwork for sustainable growth. Finally, we remain committed to developing new products to fuel long-term growth. Initiatives like Wishcraft and AI Art Master exemplify our ability to innovate rapidly and iterate on promising ideas. These projects and others in development position us to uncover new opportunities that can drive incremental wins and breakthrough successes. From a financial standpoint, we continue to prioritize smart capital allocation. With over $20 million in cash and cash equivalents, a strong balance sheet, and the authorization of a $5 million share repurchase program, we are well positioned to deliver long-term shareholder value. In summary, while the first quarter presented some challenges, particularly on the top line, the progress we've made across key areas of our business underscores our ability to innovate, adapt, and execute. We remain confident in our strategy and excited about the opportunities ahead. Wishing all a very happy holiday season with health and peace. With that, I'll now turn over the call to E to discuss our financials in more detail. E?