Conference call will be held on
Key Financial Highlights
- Achieved strong gross margins of 40% in 1Q23 versus 30% in 1Q22.
- Achieved positive Adjusted EBITDA of
$0.2M in 1Q23. - Ended 1Q23 with a cash balance of
$2.7M and no long-term debt.
Management Commentary
Under the guidance of our new CEO,
First Quarter 2023 Highlights
- Revenues for the three months ended
March 31, 2023 , were$8.6 million , a 47% decline relative to Q1 2022. The decrease in revenues is primarily as a result of global macroeconomic conditions that impact client advertising budgets in general and especially in areas of Fintech and in particular Cryptocurrency. - Gross profit margin was 40% for the three months ended
March 31, 2023 , versus 30% for the same period last year, reflecting lower revenues from the cryptocurrency segment which carries lower margins. - Research and Development expenses for the three months ended
March 31, 2023 , were$1.2M , a 20% decrease relative to Q1 2022, reflecting lower deprecation and other R&D expenses. - Selling, General and Administrative expenses for the three months ended
March 31, 2023 , were$3.1M , a 16% increase YOY, primarily reflecting increases in expenses incurred as a result of new employees joining the Company, primarily after the acquisition of Albert. - Other expenses – Impairment for the three months ended
March 31, 2023 , are software costs write off in the amount of$2.8M . - Adjusted EBITDA for the three months ended
March 31, 2023 , was$0.2M as compared with Adjusted EBITDA of$1.9M for the three months endedDecember 31, 2022 . The decrease in Adjusted EBITDA was primarily attributed to the decrease in revenue. - Operating loss was
$3.5M for Q1 2023, compared to an operating profit of$0.9M in Q1 2022, and was primarily attributable to the impairment of intangible assets, which are the software costs write off. - As of
March 31, 2023 , the Company's cash and cash equivalents amounted to$2.7 million , and no long-term debt. - On
March 28, 2022 , the Company announced that it has acquired substantially all of the assets ofAlbert Technologies Ltd. andAlbert Technologies' Inc in a cash and share deal. As partial consideration for certain of Albert's employees hired by the Company, the Company has entered into certain shares for services arrangements with such employees totaling up to$0.2M worth of company shares, to be issued upon the completion of the services to the Company and using the price per share at the time of issuance. InSeptember 2022 , the Company issued 333,863 shares to Albert's employees with a deem price per share ofCAD$0.39 . InMay 2023 , the Company issued 804,923 shares to Albert's employees with a deem price per share ofCAD$0.16 . - Zoomd's Board of Directors is reviewing and considering potential changes to optimize business lines and product offerings for improved growth and profitability.
Conference Call
Interested parties can listen via a live webcast, from the link available in the Investors section of
A replay will be available after the call, in the Investors section of the Company's website at https://zoomd.com/investors/ or via https://app.webinar.net/v87wJ1YJxdQ.
ABOUT
Neither
CAUTION REGARDING NON-IFRS FINANCIAL MEASURES
This press release refers to "Adjusted EBITDA" which is a non-IFRS financial measure that does not have a standardized meaning prescribed by IFRS. The Company's presentation of this preliminary financial measure may not be comparable to similarly titled measures used by other companies. This preliminary financial measure is intended to provide additional information to investors concerning the Company's estimated results. Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, as adjusted for share-based payments and one-time non-operating expenses and is a measure of a company's operating performance. Essentially, it's a way to evaluate a company's performance without having to factor in financing decisions, accounting decisions or tax environments.
Management uses this non-IFRS measure as a key metric in the evaluation of the Company's performance and the consolidated financial results. The Company believes Adjusted EBITDA is useful to investors in their assessment of the operating performance and the valuation of the Company. However, non-IFRS financial measures are not prepared in accordance with IFRS, and the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with IFRS. A reconciliation of Adjusted EBITDA and operating profit is available in
DISCLAIMER IN REGARD TO FORWARD-LOOKING STATEMENTS
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to
The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking information contained in this press release is expressly qualified in its entirety by this cautionary statement.
FOR FURTHER INFORMATION PLEASE CONTACT:
Company Media Contacts:
Chairman
ir@zoomd.com
Website: www.zoomd.com
Investor relations:
New York | Phoenix
ZOMD@lythampartners.com
Logo - https://mma.prnewswire.com/media/1039696/Zoomd_Logo.jpg
View original content:https://www.prnewswire.com/news-releases/zoomd-technologies-reports-first-quarter-2023-financial-results-and-management-update-301837767.html
SOURCE
© Canada Newswire, source