Zoomd Technologies Ltd.

Thank you for joining us today for Zoom's fourth quarter and full year 2025 update conference call. With us on the call representing the company today is Amit Bahansky, Zoom's founder and 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. 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 the 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 noted 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 in the press release. With that said, let me now turn the call over to Amit Bahansky, founder and chairman of Zoom. Amit, please proceed.

Thank you, Ben, and good afternoon to all of you. I will summarize our fourth quarter and full year of 2025 financial results. 2025 was a record year for Zoom. as we achieved record revenues, profitability, cash flow, and ended the year with a strong balance sheet, introducing $22 million in cash and no long-term debt. As discussed in the company's Q3 of 25 report, two major customers implemented changes to their operating models, reflecting adjustments in customer acquisitions, strategies, and KPIs. With one of these customers, visibility remains limited regarding the timing and extent of a potential recovery. With the other, we are beginning to see signs of improvement. Even if there is some continued impact in the near term, as these changes continue to play out, the recovery is expected to be gradual. This supports a path toward renewed growth over time. This highlights the importance of the effort we have put over the last two years to diversify our customer base. In 2025, revenues from customers outside of top two grew over 30% year over year. We anticipate that future growth will be driven by a broader base of customers. This approach is already contributing to a more diversified revenue base and positions the company to reduce dependency on individual large clients while enhancing the overall resilience of the businesses for the long term. As reflected in the fact that approximately one-third of the company's annual revenue growth was driven by customers onboarded in recent quarters, contributing to a broader customer base beyond the historically more concentrated group of large customers. Over the recent period, we expanded presence in North America and Europe, adding over 20 new clients across iGaming, fintech, and e-commerce, including clients such as Kraken, Silver Social, Sportybet, Bank PD, and based On a typical revenue ramp-up time, we expect to see impact of these wins in 2026. Further supported by the 2026 FIFA World Cup, the world's most viewed sporting event in the world, which is expected to drive increased activity across key verticals and create additional revenue opportunities. Our current cash position provides ample runway to support organic growth, as well as pursuing more partnerships such as the one we announced with E2. It also offers flexibility to pursue strategic acquisitions that will further accelerate our expansion, and we continue to evaluate opportunities that complement our core competencies and would be strategically accretive. Our differentiated focus. on markets outside the walled gardens is gaining traction, and industry recognition is growing. As I mentioned on former calls, one of our strategies, accelerated growth, is to establish strategic partnerships and expand our sales growth. In 2025, we announced the first of this, a global agreement with E2, Quazat Communication, a leading provider of digital marketing and technology solutions for the sports and betting industry. This collaboration will allow Zoom to access E2's current and future clients worldwide, accelerating our client acquisition and revenue growth efforts. I am pleased to share that this partnership is already providing successful with two clients already onboarded and actively working with us. Now, I would like to turn to our product and service offering as it is important for investors to understand our competitive advantage and white lines are coming to us. Our competitive edge stems from our comprehensive 360-degree approach to digital performance with a mobile-first focus, all designed to help our clients achieve their goals. We offer a wide range of solutions tailored to digital and mobile performance, enabling us to deliver holistic suite of products and services that drive measurable results against our clients' digital performance KPIs. Zoom utilizes a combination of research and development, acquisitions, and methodologies to improve its offerings. 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. These relationships position us not just as a vendor, but as a trusted advisor. The depth of this engagement fosters long-term partnership, significantly reduces charm, and creates strong opportunities 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. This 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 client direct control. 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 the mobile web and app performance needs. We optimize the advertiser resources and maximize their advertising budget and efficiency. There is no dependency on any specific media supplier or traffic channel. It not only saves valuable time and resources for advertisers, but also provide 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, position, and crucial layer within the ecosystem, the company stands strongly in the industry. Beyond the walled gardens of Google, Meta, and etc., the marketing landscape is fragmented. Zoom enables advertisers to leverage a wide range of various types of media channels. From social to programmatic, OEMs, SDKs, networks, and more. Their KPIs are achieved on all channels together, or as a mix. Now, I will review the first quarter and full year of 2025 financial results in detail. Revenue. Revenues in Q4 25 were $7.5 million, a 50% decrease from $15.1 million in Q4 24, reflecting the continued impact of operating model changes implemented by two major customers. As discussed, in the company's Q3-25 report, including ongoing adjustments to customer acquisition strategies and KPIs. Activity levels continue to be affected by these changes, with visibility remaining limited for one customer, while the other is showing initial signs of realignment following a meaningful purpose. For full year of 2025, worth $61.3 million, a 13% increase from $54.5 million in 2024. This increase was further supported by the contribution of customers onboarded in recent periods, supporting a more diversified foundation for future growth. Growth margins. Gross margin in Q4-25 was 34%, compared to 41% in Q4-24, and for the full year, 42% compared to 40% in Q4-24. Driven by changes in client mix and remain within the company representative profitability range. Operating expenses. Total operating expenses for Q4-25 were $2.5 million, a 7% decline compared to Q4-24, reflecting lower activity levels and disciplined cost management. Total operating expenses in 2025 were $12 million, roughly less compared to 2024. 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 defined adjusted EBITDA as earning before interest, tax, depreciation, one-time payments, and amortization as adjusted for share-based payments and non-recurring operating expenses. Adjusted EBITDA in Q4 of 25 was $1.5 million compared to $3.2 million in Q4 of 24, reflecting lower revenues and gross margins. Adjusted EBITDA in 2025 was $14.8 million compared to $11.3 million in 2024. The increase is primarily attributed to the annual growth of 2025. A full reconciliation of adjusted EBITDA is available in our MD&A filing. Net income. The net income for Q4 2025 was $0.2 million, compared to $3.1 million in Q4 2024, and $14.8 million for the full year of 2025, compared to $8.9 million of 2024, in line with the explanation provided above. Cash. Cash. Cash flow from operations was $3.7 million in Q4-25 compared to $2.6 million in Q4-24, largely driven by collections from improved working capital dynamics, including the collection of receivables from prior periods. Cash flow from operations was $17.9 million in 2025 compared to $7.7 million in 2024. The increase in primary driven by improved operating results. As of December 31, 2025, the company had a cash balance of $22 million and no long-term debt. Before I move to the questions, I want to thank to all our employees for their hard work and dedication. as well as you, our investors, trusted investors who support us. I am always available to speak with investors, and I 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?

All right. Thank you, Amit. Some investors ask for more time between the release of the financial statements and the calls so they would have some more time to review the materials and submit questions. So this is why we pushed the call back a bit. We received a large number of questions with several common themes. To keep it efficient, I've consolidated similar questions and we'll address them together. First, if we look at the fourth quarter, the revenue decline was quite sharp. How should we think about that level of performance going forward? And does the fourth quarter reflect the current run rate of the business?