Zedge Zooms on Q2 Figures

Zedge Inc (NYSE:ZDGE) shares pop Tuesday after the company reported better-than-expected results for its second quarter. The company said it sees FY21 sales growth of 75%-80%.

Zedge said its revenue increased 101.0% to a record $5.3 million versus $2.6 million last year.

The company trumpeted record operating income was $2.5 million and operating margin of 47.4%, versus $0.1 million and 3.0%, respectively, last year.

It saw record net income of $2.3 million and diluted earnings per share of and $0.17, versus $0.1 million and $0.01, respectively, last year;
Cash flow from operations increased 296.9% to a record $2.3 million versus $0.6 million last year. EBITDA1 was $2.9 million versus $0.5 million last year;

"Our team executed superbly, and their dedication and commitment fueled an amazing second quarter and first half of the year," said CEO Jonathan Reich. "Our existing initiatives, coupled with seasonal strength in year-end ad spend, drove record revenue, operating margins, EPS, EBITDA and cash flow from operations, among other metrics.

"From a product perspective, our team completed the rollout of our new content management system, setting the foundation for the next phase of our growth strategy by enabling us to introduce new features and enhancements, including overhauling user accounts, and introducing social and community features as well as search and discovery.

"We expect these will improve customer engagement and retention, especially in well-developed markets, and accelerate adoption of Zedge Premium, our marketplace for artists."

ZDGE shares jumped $2.53, or 22.5%, to $13.80.