Zedge : Presentation - Company Overview

Company Overview

November 12, 2020

6th Annual Israel Conference

2020 .Inc ZEDGE,

Safe Harbor Statement

This presentation contains statements that are, or may be considered to be, forward-looking statements. All statements that are not historical facts are forward-looking statements and such forward-looking statements are statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include:

• statements about Zedge's future performance;
• projections of Zedge's results of operations or financial condition;
• statements regarding Zedge's plans, objectives or goals, including those relating to its strategies ,initiatives, competition, acquisitions, dispositions and/or its products; and

Words such as "believe," "anticipate," "plan," "expect," "intend," "target," "estimate," "project," "predict," "forecast," "guideline," "aim," "will," "should," "likely," "continue" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Readers are cautioned not to place undue reliance on these forward-looking statements and all such forward-looking statements are qualified in their entirety by reference to the following cautionary statements.

Forward-looking statements are based on Zedge's current expectations, estimates and assumptions and because forward-looking statements address future results, events and conditions, they, by their very nature, involve inherent risks and uncertainties, many of which are unforeseeable and beyond Zedge's control. Such known and unknown risks, uncertainties and other factors may cause Zedge's actual results, performance or other achievements to differ materially from the anticipated results, performance or achievements expressed, projected or implied by these forward-looking statements.

These factors include those discussed under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Zedge's periodic reports filed with the Securities and Exchange Commission.

Zedge cautions that such factors are not exhaustive and that other risks and uncertainties may cause actual results to differ materially from those in forward-looking statements.

Forward-looking statements speak only as of the date they are made and are statements of current expectations concerning future results, events and conditions and Zedge is under no obligation to update any of the forward-looking statements, whether as a result of new information, future events or otherwise.

2020 .Inc ZEDGE,

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About Zedge

Zedge is a leading app developer focusing on the mobile phone personalization and entertainment verticals. With more than 450 million organic installs and 32 million monthly active users, "Zedge Wallpapers and Ringtones" is all about identity. We're the hub for self-expression used by millions for mobile phone personalization, social content and fandom art. Our app enables consumers to showcase who they are, what they like, and amplify their persona. Zedge Premium, our marketplace, enables content creators, ranging the gamut from world class celebrities to emerging artists, to display their talent and sell their content to our users. "Shortz - Chat Stories by Zedge" offers serialized, short- form fiction stories delivered as text-messaging conversations and soon to be available as mini- podcasts. Our apps run on our flexible and proven state-of-the-art digital publishing platform.

2020 .Inc ZEDGE,

500MM

Installs

Launched

"Shortz"

400MM

Opened Vilnius

Innovation Center

Launched

Introduced Paid

ZDGE spun out

Zedge

Subscriptions

App

300MM

from IDT Corp

Premium

Nicki Minaj

Starts trading

Promo

on NYSE

Cumulative

Acquired Freeform

American

200MM

Best Apps

Google Play

100MM

Launched

50 Best Android Apps :

iOS App

Time Magazine

Launched

Android App

3

Oct

'09

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Investment Highlights

Leading app developer focusing on mobile phone personalization and entertainment verticals

Large Customer Base	Growth Opportunities	Optionality
~32MM Monthly Active Users	Pipeline of new apps (iOS /	iOS move into personalization;
Valuable for lowering CAC	Android); Flagship feature;	international; Shortz
	Premium Marketplace; Zedge+

2020 .Inc ZEDGE,

Disciplined Financial Management	Management Execution
Cashflow positive for past 4 quarters;	Streamlined org; delivered
$5.1MM in cash, virtually no debt, no	new products despite Covid;
warrants; $5.6MM in NOLs	experienced team

Targeting revenue growth of greater than 20%, continued positive
cash flow and profitability on a quarterly and full-year basis in FY '21	4

Highly Attractive User Base

~32,000,000		BY AGE (GLOBAL)	HOUSEHOLD INCOME
	13-17		(US)
customers use the Zedge app,		18-24		<$25K
monthly, to personalize their phone	25-34		$25K - $39K
			35-44		$40K - $59K
			45-54
Meet The Users	55+		$60K - $74K
N/A
	>$100K
			0%	25%	$75K - $99K
			BY CONTINENT	0%	25%
OUR USERS ARE…	BY GENDER			ETHNICITY (US)
	(US)	N. America	Asia	Caucasian
• Entertainment Addicts			25%
		24%
				African American
• Social Influencers			Europe	ROW	American Indian
• Sports Fans			26%	Asian
		25%
• Gamers	56%	44%			Other
				50%	100%

2020 .Inc ZEDGE,

5

Source: Google Analytics, Facebook, and comScore

Zedge Flagship

Powerful and flexible platform

ASO		Press		SEO

Zedge App

Wallpapers

Video Wallpapers

Ringtones

Notifications

Icons

Widgets

???

	Search &	Analytics /		Marketplace		Marketing
	Discovery	BI				Tools
	Self Publishing	CMS		Monetization/		APIs
	Tools			eCommerce

Zedge Publishing Platform

Reigniting Growth

Unlocking new opportunities

Drivers

• Social/community features
• Personalized feeds
• User accounts
• Premium Marketplace expansion with social content and fandom art
• iOS
• Zedge+

2020 .Inc ZEDGE,

Artists		Brands		Social Creators	6

A Publishing Platform Made for Artists

Reach Tens Of Millions Of Users A Week. Start Making Money Immediately. No Strings Attached.

.Inc ZEDGE,

Video	Dedicated	Ringtones &
Wallpapers	Storefront	Notification Sounds

Premium Marketplace:

•Hub for personalization, social, and fandom art

•Ideal for established and up and coming artists, alike

•Easy to use self serve platform

•Reach tens of millions of users per week

•Make money with full transparency

•Token-based economy

"In addition to working with the music streaming companies, we chose Zedge to further engage with fans not only through music, but through art as well. Zedge has proven itself as a significant distribution channel for artists."

~Mack Maine President of Lil Wayne's Young Money Records

2020

7

Shortz - Extending Into Entertainment

Serialized, Fictional, Short-Form Stories

2020 .Inc ZEDGE,

Short form, serialized	Genres that lend	Imagery and story	Highly engaging, tap	Cliffhanger chapter	Subscription paywall to
chat fiction	themselves to	summaries that	on screen to read each	endings meant to	gain access to next
	spellbound storytelling	provoke the	line of txt	prompt paid	chapter and entire
		imagination		subscriptions	library

8

Financial Overview

($ '000)
				Revenue
$3,000
$2,000
$1,000
$0
Q3	'19	Q4	'19	Q1	'20	Q2	'20	Q3	'20	Q4	'20

Income/(Loss) from Operations

$500K
$250K
$0K
($250)K
($500)K
($750)K
($1,000)K
($1,250)K
Q3	'19	Q4	'19	Q1	'20	Q2	'20	Q3	'20	Q4	'20

Gross Margin %

90%
85%
80%
Q3	'19	Q4	'19	Q1	'20	Q2	'20	Q3	'20	Q4	'20

Cash + Net Receivables - Net Payables

$6,000
$4,000
$2,000
$0
Q3	'19	Q4	'19	Q1	'20	Q2	'20	Q3	'20	Q4	'20

2020 .Inc ZEDGE,

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Zedge Flagship

Attractive growth and solid financials

Freemium Option

• Ad-techimprovements
• Inventory optimization
• Value exchange

Subscription Option

• Weighted toward annual subscriptions
• Annual renewal rate >40%
• Marketing and pricing

Demonstrable Results

• Paid subscribers growing by ~100K/quarter
• MAU grew by 11% QoQ
• ARPMAU grew by 29% QoQ

Paid Subscribers

700K

Paid Subscribers

Revenue

$700K

Cumulative-SubscribersPaid

Revenue-SubscribersPaid

2020.IncZEDGE,

600K

$600K

500K

$500K

400K

$400K

300K

$300K

200K

$200K

100K

$100K

0K

$0K

Jan

'19

Apr

'19

Jul

'19

Oct

'19

Jan

'20

Apr

'20

Jul

'20

MAU and ARPMAU

$0.03

ARPMAU

MAU

40MM

ARPMAU

35MM

$0.02

30MM

MAU

25MM

$0.01

20MM

Jan

'19

Apr

'19

Jul

'19

Oct

'19

Jan

'20

Apr

'20

Jul

'20

10

Governance And Investor Profile

Renowned board members with pedigree in mobile, entertainment, and value creation

				Board of Directors
	Other			Michael Jonas		Executive Chairman
52%
Institutional			Howard Jonas		Vice Chairman
21%					Founder & Chairman, IDT Corp.
				Mark Ghermezian		Co-CEO, American Dream
	Insiders					Co-Founder, Braze
27%			Elliot Gibber		President & CEO, Deb El Food Products
	Insider Ownership*			Paul Packer		Founder, Globis Capital Advisors LLC
	Michael Jonas	15.2%
	Howard Jonas	1.3%		Greg Suess		Founding Partner, Activist Artists Management, LLC
	Management & ESOP	8.5%
						Partner, Glaser Weil Fink Howard Avchen & Shapiro
	Board of Directors	2.1%
	Insider Ownership	27.1%

2020 .Inc ZEDGE,

* As of October 31, 2020, on a fully diluted basis	11
	11

Key Takeaways

Opportunities abound to grow our business and enrich our valuation

ZEDGE,

Large and Loyal

Customer

Base

Shareholder

Returns

MultipleDisciplined

GrowthFinancial

Drivers Management

FY '21 Goals

• Targeting revenue growth in excess of 20%
• Continued positive cashflow
• Ongoing profitability
• Product diversification
• User growth

2020 .Inc

12

Thank you!

Jonathan Reich, CEO +1.330.577.3424 [e-mail]

6th Annual Israel Conference

2020 .Inc ZEDGE,

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