Conference call will be held on
Financial Highlights
- Revenues in 2Q23 were
$8.8M , and gross profit margin was 36%. - The revenue reflects a decline of 46% relative to 2Q22 and an increase of roughly 700 bps in gross profit margin. The driving factors behind these changes are primarily the decline in the crypto sector, which carried high revenue volume with lower than average gross profit.
- Revenues increased 2% relative to 1Q23, and management believes that revenues have begun to reach stabilization.
- Adjusted EBITDA[1] was
$0.4M in 2Q23. - Ended 2Q23 with a cash balance of
$2M and no long-term debt.
Management Commentary
Management is diligently implementing the corporate restructuring plan that was announced in early June. As previously reported, the cost reductions, which extend beyond headcount adjustments, are projected to result in annual savings of approximately
While these measures are already showing positive signs, it's important to acknowledge that the full spectrum of their impact is yet to be realized. Our dedication to long-term success remains steadfast, and we are confident that as these efforts continue to unfold, we will be well-equipped to steer the company through the prevailing macroeconomic challenges and the rapid technological transformations that define our industry."
Second Quarter 2023 Highlights
- Revenues for the three months ended
June 30, 2023 , were$8.8 million , a 46% decline relative to 2Q22. The decrease in revenues is primarily a result of global macroeconomic conditions that impact client advertising budgets in general and specifically in areas of Fintech and in particular Cryptocurrency. Due to the fluctuating budgets of the Fintech and Cryptocurrency sectors, we continue to diversify our business by increasing our exposure to sectors such as E-commerce, iGaming, and CPG companies. Revenues in 2Q23 increased by 2% relative to 1Q23. - Gross profit margin was 36% for the three months ended
June 30, 2023 , versus 29% 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
June 30, 2023 , were$1M , a 38% decrease relative to 2Q22, reflecting lower deprecation and other R&D expenses. - Selling, General, and Administrative expenses for the three months ended June 30, 2023, were
$2.8M , a 10% decrease YOY, reflecting the decrease in revenues. - Adjusted EBITDA for the three months ended
June 30, 2023 , was$0.4M as compared with Adjusted EBITDA of$1.6M for the three months endedJune 30, 2022 , reflecting the decrease in revenues. Adjusted EBITDA increased relative to the three months endedMarch 31 by$0.2M . - Operating loss was
$0.6M for 2Q23, compared to an operating profit of$0.1M in 2Q22, and was primarily attributed to the decrease in revenues. - As of
June 30, 2023 , the Company's cash and cash equivalents amounted to$2 million , and no long-term debt.
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/rAzyarJa4Gb.
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
www.zoomd.com
Investor relations:
ZOMD@lythampartners.com
[1] Adjusted EBITDA is a Non-GAAP performance measure. Refer to "CAUTION REGARDING NON-IFRS FINANCIAL MEASURES" for further details.
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