Zoomd Technologies Ltd.

Chairman. At the conclusion of today's prepared remarks, Amit will answer some questions that were sent to us by investors and other questions we think are relevant to investors as well. Before we begin with prepared remarks, just a couple of comments. Today's call will contain forward-looking statements that are based on current assumptions and subject to risks and uncertainties that could cause actual results to differ materially from those projected and the company undertakes no obligation to update these statements except as required by law. Information about these risks and uncertainties are included in the company's filings, as well as periodic filings with regulators in Canada and the United States, which you can find on CDAR and Zoom's website. Today's discussion will include adjusted financial measures, which are non-IFRS measures. These should be considered as a supplement to and not a substitute for IFRS financial measures. Note that all figures on this call are in U.S. dollars as are Zoom's financial statements. Finally, today's event is being recorded and will be available for replay through the webcast information provided on the press release. With that said, now let me turn the call over to Amit Bohansky, founder and chairman of Zoom. Amit, please proceed.

Thank you, Ben, and good morning to all of you. We are excited to speak with you today regarding our second quarter 2025 results. Today, I am going to provide an overview of our achievements for the second quarter, where I would like to share with you the strong performance we demonstrated. I am proud to say that we have successfully executed on our strategic plans, resulting in continued and significant improvements in our financial performance. The company's strategic focus on high growth sectors and global clients operating in multiple geographies has continued to drive strong momentum with revenue in Q2 2025 increasing by 40% year over year. This growth reflects the company's ability to consistently scale its operations and capitalize on emerging opportunities in our core markets. Moreover, despite this substantial revenue growth, Zoom successfully maintained a controlled expense structure with operating expenses as a percentage of revenue accounting for 16% in Q2 25, down for 21% in Q2 of 24. The increase in revenues combined with the modulated operating expenses led to a continued improvement in the company's financial results, achieving an operating income of $5.3 million for Q2 2025. at $2.9 million improvement compared to Q2 2024. The company achieved nine consecutive quarters of operating income growth, culminating in adjusted EBITDA of $5.6 million. Furthermore, The company recorded a net profit of $6.1 million in Q2 of 2025. These profitability improvements also strengthens liquidity with $5.2 million cash generated from operating activities in Q2 of 2025. Q2 2025. ended it ended with 16.5 million dollars in cash and no long-term debt we leveraged our cash balance to reply a short-term accounts receivable backed credit line initially provided in 2021 and subsequently extended each year used for working capital and to secure improved terms with the bank with plenty reflecting our current and anticipated financial profile these financial strengths allow us to further grow the business originally and execute on long-term plans while we remain open to exploring accelerated acquisition opportunities if they rise we have ample room to drive growth organically i am excited that the momentum we have shown in recent quarters continues This morning, I would like to discuss three important areas for Zoom. These areas are our customers, the development of our product and service offering, and adjustments to address market trends. I want to begin with our customer base. We continue on diversifying our customer base and focusing on growth sectors such as e-commerce, iGaming, entertainment and transportation, and customer goods. Those sectors known for their stable growth patterns and elevated profit margins. We have deepened our activity with current customer as well as expanding to new customers. Consequently, our revenues have experienced substantial growth. The diversification in sectors and geographies is important as we aim to manage strong revenue growth by becoming a company with solid, predictable recurring revenues. As we reported, 83% of our revenues come from our top five customers. Revenues from these top five customers grew both compared to the same quarter last year and to the previous quarter. In addition, the combined revenues from all customers outside of the top five also increased over both periods, reflecting strong and broad-based growth. An important point to understand is that each customer operates in multiple countries with different KPIs, targets, budgets and approaches. For example, For one of our top clients, we operate in more than 30 countries and 10 countries for another top client. That same client increased the number of countries we operate in by 50% during the last quarter, decreasing the effective concentration risk. Now, I would like to turn to our product and service offering. Our competitive edge stems from our comprehensive 360-degree approach to digital performance with a mobile-first focus, all designed to help our clients to achieve their goals. We offer a wide range of solutions tailored to digital and mobile performance enabling us to deliver a holistic suite of products and services that drive measurable results against our clients' digital performance KPIs. Finally, Zoom utilizes a combination of research and development, acquisitions and methodologies to improve its offering. One of our core strengths is our transparent, direct and intensive client communication. Unlike many of our industry peers, we don't operate through agencies. We work directly with our clients, engaging with the chief revenue officer side of the organization. This relationship positions us not just as a vendor, but as a trusted advisor. The depth of this engagement fosters long-term partnerships, significantly reduces churn, and creates strong opportunity for revenue growth within our existing client base. This approach enables real-time campaign management without delays, even while simultaneously handling multiple campaigns across various geographies. That unique approach positions us as a semi-human, semi-automated command and control platform, effectively combining advanced technology and strategic insights. We closely monitor and respond not only to shifts in client strategy, but also to broader macroeconomic changes beyond the client's direct control. And as a result, we empower our clients to swiftly adapt to market fluctuations, maximizing their impact and driving significant outcomes globally. Our main platform is integrated to hundreds of media sources, allowing us to promote customers' digital assets in multiple channels under one system. We use a DSP for programmatic media buying. The DSP is integrated to the biggest mobile media exchanges, providing our customers full range and reach for their mobile, web, and app performance needs. We optimize the advertised resources and maximizing the advertising budget and efficiency. There is no dependency on any specific media supplier or traffic channel. This not only saves valuable time and resources for advertisers, but also provides enhanced clarity and consolidated insights. Additionally, our platform and products are designed for user-friendly operation, eliminating the need for a software development kit SDK implementation. In our perspective, positioned as a crucial layer within the ecosystem, the company stands strongly in the industry. Beyond the walled gardens such as Google, Meta, and et cetera, the marketing landscape is fragmented. Zoom enables advertisers to leverage a wide range and various type of media channels from social programmatic as OEMs, SDK networks, and more. Their KPIs are achieved on all channels together or as a mix. Finally, I want to discuss the results. Zoom's quarter to 25 financial results, which are consistent with our overall performance, demonstrate significant improvements across multiple key financial indicators. The successful execution of our strategy has strengthened the company's financial position and also enhanced internal alignment between teams and objectives, laying a robust foundation for sustainable growth. We remain committed to consistently adapting our strategy to evolving market conditions and emerging opportunities, maintaining our steadfast focus on delivering lasting value to all stakeholders. Our strategic focus is advancing on two fronts. First, we are widening the geographies and market segments we serve both independently and through selective strategic partnerships that open the door opportunities at scale. At the same time, we are developing automation and AI-powered data capabilities to boost operational efficiency and accelerate the insights and value we deliver to our customer. This dual track approach position us to capture growth, enhance our competitive edge and deliver lasting value to our shareholders. Financial results. Now I will review the second quarter of 2025 financial results in detail. Revenue. Revenues for quarter was $19.6 million, reflecting a 40% increase compared to the same period in 2024. Strong growth was driven by the commerce and entertainment sectors. Growth in all geographies was strong. Operating expenses. Total operating expenses for the second quarter of 2025 were $3.1 million, reflecting a modest 4% year-over-year increase, primarily driven by growth-related expenses, including performance bonuses and employee recruitment. Operating expenses as a percentage of revenue continued the downward trend since recent quarters, reaching to 16%. Our cost structure is predominantly fixed and we anticipate significant operating leverage as the revenue growth continues. Adjusted EBITDA. Adjusted EBITDA is used as a primary performance measure by the company's management to ensure it has the right structure to support future growth. We define adjusted EBITDA as earnings before interest, tax, depreciation, one-time payments, and monetization as an adjusted for share-based payments and non-recruiting operating expenses. Adjusted EBITDA grew significantly from $3 million in Q2 24 to $5.6 million in Q2 of 25. A full reconciliation of adjusted EBITDA is available in our MD&A file. Cash. We have $16.5 million in cash as June 30, 25, and no long-term debt in Q2 2025 was the eighth consecutive quarter of generating cash from operating activities. We believe that Zoom's recurring revenues, in addition to its existing cash equivalents and cash flow from operating activity, will be sufficient to meet the company's working capital requirement in the future. And now for some overview. Now, for those who may be unfamiliar with the Zoom story, I would like to provide an overview for our business. Zoom has developed and acquired a proprietary technology and targets the needs of various segments for the digital marketing industry. Zoom offers its services globally through its agents and other business partners all over the globe. As such, the company operates in a collaboration with hundreds of publishers and global advertisers. The company aims to consistently provide significant added value to its customers. The company's services and technology stack development roadmap focus on creating technological solutions that seamlessly integrate with a range of digital media sources. Through this integration, the company aims to consolidate these sources, allowing its customer to achieve optimal value for their investment. The primary focus of this effort is directed towards enhancing user acquisition and retention strategies, tailoring them to the unique requirements of each media source on any screen or platform. Furthermore, the company maintains an ongoing commitment to staying attuned to the market dynamics and the changing demands of its customers. Zoom actively evaluates the inclusion of novel distribution media channels into its platform. This adaptive approach ensures that the company remains responsive to the evolving needs of its customers, contributing to its reputation as a forward thinking and customer centric company. The company is focusing its efforts, which are based on long-term trends within the online advertising industry, in line its basic strategies of providing customers with digital mobile-focused advertising technologies, products and services for improving their media buying effectiveness, cost and measurements, and maximizing their user acquisition and retention costs. enabling customers to manage their acquisition campaigns, budgets on multiple digital channels, screens and platform, including social networks, ad networks, exchanges, content discovery platforms, influencers, connected TV, which is CTV, all using data-driven KPI-based technology. Providing extra tools and features as part of its offering simplify campaign management tasks such as extra tools and features include creative studio editing capabilities for quick adjustments, extra layers of data from app stores and unique optimization abilities for saving time and resources on campaign management tasks. Before I move on to the questions, I want to thank to all our employees for their hard work and dedication, as well as our investors who support us. I am always available to speak with investors and look forward to hearing your feedback and answering questions. With that said, I will answer some of our investor questions and some questions that may be of interest to our investors. Ben?

Thank you, Amit. We have some questions for you. First, can you talk about any impact you're seeing as a result of the current tariffs?

Certainly. As we've mentioned previously, most of our clients operate with across multiple geographies, often in more than one continent. These customers have internal growth targets, and we support them in achieving those goals. With the recent US tariffs, what we were mostly seeing is a reallocation of budgets rather than a reduction in overall spend. In some cases, clients have reduced the US-focused budget as expected, but have maintained or even increased their investment with us in other regions. While these geographies shifts are not always immediate and can involve some timing gaps, clients typically make the adjustments since they have overall growth targets to meet. Our role is to help them achieve those targets by acquiring users in a wider range of markets. So far, given the geography's diversity of our operations, we have not been materially negatively affected by the US tariffs. In fact, in certain cases, we've been able to capture a larger share of our clients' advertising budgets.

Okay, thank you. Can you elaborate on the drivers behind the financing income this quarter and how these factors tie into your overall liquidity position?

Financing income. for the quarter totaled close to $1 million, primarily reflecting interest earned on our deposits, as well as positive exchange rate movements due to the strengthening of the Israeli shekel against the US dollar. This currency effects are not part of our core business strategy, but can have a temporary impact on the results. Our strong cash balances built over recent quarters through consistent profitability have enabled us to place deposits and benefit from interest generated. We ended the quarter with $16.5 million in cash and no long term debt. During the quarter, we generated approximately $5.2 million from operating activities, which allowed us to fully repay a short-term accounts receivable backed credit line originally taken in 2021 and renewed annually since. Following the repayment, we increased the limit of this facility to $3 million, which remains available should we choose to draw on it. This healthy liquidity position gives us the flexibility to continue executing on our plans.

Okay. Thank you. You indicate that you have many long-term clients who consistently increase their budgets with you. Can you walk us through the process and the timeline of taking on a new customer and growing them into a significant revenue contributor?

Sure. Our role is to help our clients to grow by acquiring new users, primarily from their mobile apps and driving revenues for them. When a new client comes on board, they typically start with a test budget to see if we can hit their acquisition targets, achieving the right cost per acquisition, delivering the user quality they need to maximize lifetime value and the exact volume of users they are aiming for. These test phases typically run in one or two countries and last anywhere from three to 12 weeks, depending on the client's objectives. If we meet the agreed KPIs, clients often scale first in the initial test markets and then into additional countries where they want to expand. For clients with multiple apps, we may also take additional titles beyond the one used of the test phase. This step-by-step approach has been key to building long-term relationships and increasing our share and the overall marketing spend. One last point. Many of you are already in direct touch with me. For everyone else, please feel free to reach out to me directly over email or WhatsApp anytime for all things related to Zoom. I am available and would be happy to answer. Once again, I want to thank everyone for your interest in Zoom and we look forward to sharing the third quarter results of 2025.