VANCOUVER - Zoomd Technologies Ltd. (TSXV: ZOMD) (OTC: ZMDTF) and its wholly-owned subsidiary Zoomd Ltd. (collectively, 'Zoomd' or the 'Company'), the marketing technology (MarTech) user-acquisition and engagement platform, today reported its financial results for the three months ended September 2022.
The Company's financial statements and management discussion and analysis ('MD&A') are available on SEDAR under the Company's profile.
Key Highlights
Over the nine-month period in 2022 revenues have increased by 25% compared to the same period last year.
Revenues in 3Q22 reached $9.8M, a decrease of 39% YOY primarily as the result of global macroeconomic conditions that impact client advertising budgets, especially in the areas of Fintech and Cryptocurrency.
Achieved positive Adjusted EBITDA[1] of $15K in 3Q22. Over a nine-month period, the Company has generated Adjusted EBITDA of $3.6M.
Operating loss was $1.4M for 3Q22 compared to an operating profit of $961K in 3Q21, primarily as the result of payments made in connection with the acquisition of Albert and decrease in revenues.
Ended 3Q22 with a cash balance of $3.4M and no long-term debt.
The company will generate an annual recurring revenue (ARR)[2] of $3M from self-serve products.
Management Commentary
Ofer Eitan, CEO stated 'After six consecutive quarters of year over year growth, the third quarter proved challenging due to the recent global slowdown, especially in areas of Fintech and Crypto. Advertising is one of the first areas that companies cut back on when uncertainties arise, and we are not immune to that phenomenon. Despite a difficult third quarter, we continue to be cash flow positive on an annual basis, and on pace to grow our revenue roughly 5% YOY in 2022.
I am happy to say that we are seeing customers slowing the rate of advertising budgets cuts, and in many cases beginning to increase budgets. While revenues in 4Q22 will still be below last year's levels, we remain optimistic about Zoomd's long-term growth prospects, and our focus remains to increase our market share while strengthening our balance sheet.
Despite the macroeconomic challenges, our current clients are continuing to be pleased with the results that Zoomd brings to their user acquisition efforts. In the fourth quarter, we have been successful in acquiring new customers, and our prospective customer pipeline remains solid.
The integration of Albert, an artificial intelligence marketing platform for advertisers, is now complete. Albert drives fully autonomous digital campaigns for some of the world's leading brands, including fortune 500 companies. We have now begun cross-selling our services, which has been received well.
The launch of our self-serve products has been successful and customer adoption has exceeded our expectations. Our self-serve products unlock our capacity to attract more small and mid-range customers and to generate ongoing recuring revenues and provide the customers software-only nature and little reliance on human capital.
We remain excited about our future growth prospects, including the expansion of our self-serve products.'
Fiscal 2022 Outlook Update
Zoomd expects revenues in fiscal 2022 revenues to grow roughly 5% year-over-year. The revised outlook reflects the global financial slowdown which is affecting advertising budgets. The outlook is based on assumptions, each of which management considers to be reasonable, which are set out in the MD&A.
About Zoomd
Zoomd (TSXV: ZOMD, OTC: ZMDTF), founded in 2012 and began trading on the TSX Venture Exchange in September 2019, offers a site search engine to publishers, and a mobile app user-acquisition platform, integrated with a majority of global digital media, to advertisers. The platform unifies more than 600 media sources into one unified dashboard. Offering advertisers, a user acquisition control center for managing all new customer acquisition campaigns using a single platform. By unifying all these media sources onto a single platform, Zoomd saves advertisers significant resources that would otherwise be spent consolidating data sources, thereby maximizing data collection and data insights while minimizing the resources spent on the exercise. Further, Zoomd is a performance-based platform that allows advertisers to advertise to the relevant target audiences using a key performance indicator-algorithm that is focused on achieving the advertisers' goals and targets.
CAUTION REGARDING NON-IFRS FINANCIAL MEASURES
This press release refers to 'Adjusted EBITDA' and 'ARR' which are non-IFRS financial measures that do not have a standardized meaning prescribed by IFRS. The Company's presentation of these financial measures may not be comparable to similarly titled measures used by other companies. These measures are intended to provide additional information to investors concerning the Company's results. Adjusted EBITDA is defined as earnings before interest, tax, depreciation and amortization, as adjusted for share-based payments, 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. ARR provides an indication of the subscription revenue from customers that is expected from continued usage per the term of contract signed, and as such management believes ARR to be a meaningful measure for assessment of Company performance. Key assumptions related to ARR figures are from continued usage of the services over the life of the agreement, with the calculation based on the annual average of subscription revenues over the life of the agreement.
Management uses these non-IFRS measures as key metrics 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, and ARR is useful to assess the success of its self-serve tools, subject to the assumptions noted above. 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.
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 Zoomd's 2022 revenue outlook, its future ability to successfully continue its growth (including with respect to its self-serve business), its ability to continue to deliver products and services largely unimpacted by the privacy updates undertaken (or will be undertaken in the future) by Google and Apple as well as its ability to continue expanding into new geographies and industries. Forward-looking statements are based on our current assumptions, estimates, expectations and projections that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, technological, legal, privacy matters, political and social uncertainties (including the impacts of the COVID-19 pandemic and the current war in Ukraine), the extent and duration of which are uncertain at this time on Zoomd's business and general economic and business conditions and markets. There can be no assurance that any of the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise, except as required by law.
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.
Contact:
Amit Bohensky
Tel: +972 722200555
Email: ir@zoomd.com
Web: www.zoomd.com
ZOOMD TECHNOLOGIES LTD. 
