Zedge Inc (ZDGE) 2025 Q3 法說會逐字稿

Good day and welcome to Zedge's earnings conference call for the third-quarter fiscal 2025 results. (Operator Instructions) I will now turn the call over to Brian Siegel.

大家好，歡迎參加 Zedge 2025 財年第三季業績電話會議。（操作員指示）我現在將電話轉給 Brian Siegel。

Thank you, operator. During today's call, Jonathan Reich, Zedge's Chief Executive Officer; and Yi Tsai, Zedge's Chief Financial Officer, will discuss Zedge's financial and operational results that were reported today.

謝謝您，接線生。在今天的電話會議中，Zedge 執行長 Jonathan Reich 和 Zedge 財務長 Yi Tsai 將討論今天報告的 Zedge 財務和營運績效。

Any forward-looking statements made during this conference call during the prepared marks or in the question-and-answer session, whether general or specific in nature, are subject to risk and uncertainties that may cause actual results in the future to differ materially from those discussed on today's calls. These risks and uncertainties include but are not limited to specific risks and uncertainty disclosed in Zedge's periodic SEC filings.

本次電話會議期間或問答環節中做出的任何前瞻性陳述，無論是一般性還是具體性，都存在風險和不確定性，可能導致未來的實際結果與今天電話會議中討論的結果存在重大差異。這些風險和不確定性包括但不限於 Zedge 定期向美國證券交易委員會提交的文件中揭露的特定風險和不確定性。

Zedge assumes no obligation to update any forward-looking statements or to update the factors that may cause actual results to differ materially from those that they forecast. Please note that our earnings release is available on the Investor Relations page of the Zedge website and it has also been filed on Form 8-K of the SEC.

Zedge 不承擔更新任何前瞻性聲明或更新可能導致實際結果與預測結果大不相同的因素的義務。請注意，我們的收益報告可在 Zedge 網站的投資者關係頁面上找到，並且也已提交給美國證券交易委員會的 8-K 表格。

Finally, on this call, we will use non-GAAP measures. Examples include non-GAAP EPS, non-GAAP net income, and adjusted EBITDA. Please see our earnings release for an explanation of our use of these non-GAAP measures.

最後，在本次電話會議中，我們將使用非公認會計準則衡量標準。例如非 GAAP EPS、非 GAAP 淨收入和調整後的 EBITDA。請參閱我們的收益報告，以了解我們使用這些非 GAAP 指標的解釋。

Now I'd like to turn the call over to Jonathan.

現在我想把電話轉給喬納森。

Thank you, Brian. Good afternoon, everyone, and thank you for joining us today to discuss Zedge's third-quarter fiscal 2025 results.

謝謝你，布萊恩。大家下午好，感謝您今天加入我們討論 Zedge 2025 財年第三季的業績。

Q3 marked a return to revenue growth for Zedge, highlighting the resilience of our business despite an ad market that saw some disruption due to TikTok's absence from the US until mid-February, along with tariff-related uncertainty that caused macroeconomic volatility and expected softness at GuruShots where we scaled back user acquisition to focus on what GuruShots 2.0 will become.

第三季標誌著 Zedge 的營收恢復成長，凸顯了我們業務的韌性，儘管由於 TikTok 直到 2 月中旬才在美國上線，廣告市場出現了一些混亂，加之與關稅相關的不確定性導致了宏觀經濟波動，以及 GuruShots 的預期疲軟（我們縮減了用戶獲取規模，專注於 GuruShots 2.0 的發展）。

The $4 million in annualized gross cost savings from our global restructuring and other cost reduction items also began to materialize during the quarter. The closure of our operations in Norway, the streamlining of the GuruShots team, and the associated decrease in discretionary spend, especially in lowering GuruShots' marketing investment, helped return us to profitability on a GAAP basis and boosted our profitability on a non-GAAP basis.

我們透過全球重組和其他成本削減項目實現的 400 萬美元年度總成本節約也在本季開始實現。我們在挪威的業務的關閉、GuruShots 團隊的精簡以及隨之而來的可自由支配支出的減少，尤其是降低 GuruShots 的營銷投資，幫助我們在 GAAP 基礎上恢復盈利，並在非 GAAP 基礎上提高盈利能力。

Furthermore, adjusted EBITDA increased 46% year-over-year, and we generated $0.8 million in free cash flow. Notably, free cash flow includes approximately $1 million for certain payments made during the quarter, primarily severance related to our restructuring and a portion of the final installment of the retention bonus stemming from the 2022 GuruShots acquisition.

此外，調整後的 EBITDA 年成長 46%，我們產生了 80 萬美元的自由現金流。值得注意的是，自由現金流包括本季度支付的約 100 萬美元的某些款項，主要是與我們的重組相關的遣散費以及 2022 年 GuruShots 收購產生的留任獎金的最後一期款項的一部分。

In Q4, the benefits to free cash flow should further improve as we anticipate a total of about $600,000 in restructuring related severance and the final payout of the GuruShots retention pool. We expect to complete restructuring related cash severance payments in the first half of fiscal year 2026, totaling approximately $200,000.

在第四季度，自由現金流的收益應該會進一步改善，因為我們預計重組相關的遣散費和 GuruShots 保留池的最終支出總額約為 60 萬美元。我們預計在 2026 財年上半年完成重組相關的現金遣散費支付，總額約為 20 萬美元。

Our balance sheet remains strong. We ended the quarter with $20.4 million in cash and no debt, even after repurchasing 219,000 shares under our previously announced $5 million buyback authorization. Key business highlights for the quarter included: we grew the Zedge Plus subscriber base to an all-time high of nearly 900,000, a 37% year-over-year increase; Zedge Plus subscription revenue grew 13% year-over-year, while deferred revenue, primarily representing future recurring subscription revenue, reached $5 million, up 83% year-over-year and 13% sequentially.

我們的資產負債表依然強勁。即使根據我們先前宣布的 500 萬美元回購授權回購了 219,000 股股票，本季末我們仍擁有 2,040 萬美元現金且沒有債務。本季的主要業務亮點包括：我們將 Zedge Plus 用戶群成長至近 90 萬的歷史新高，年成長 37%；Zedge Plus 訂閱營收年增 13%，而遞延營收（主要代表未來經常性訂閱收入）達到 500 萬美元，年成長 83%，季增 13%。

And Zedge premium revenue more than doubled, driven by expanding the offering to our web users, increased usage of our pAInt AI image generator, and ongoing demand for 3D Parallax Wallpapers. While monthly active users or MAU declined year-over-year, the narrative is more nuanced.

Zedge 的高級收入增長了一倍多，這得益於我們向網路用戶提供的服務的擴大、pAInt AI 圖像生成器的使用增加以及對 3D Parallax 壁紙的持續需求。雖然每月活躍用戶數或 MAU 年減，但情況更為微妙。

For a while now, we have focused on attracting and retaining higher lifetime value or LTV users, which are reported as MAU in well-developed markets in the supplemental tables of our earnings release. The overall MAU decrease was the outcome of a mix shift away from lower LTV users globally to higher LTV users in well-developed markets.

一段時間以來，我們一直專注於吸引和留住具有更高終身價值或 LTV 的用戶，這些用戶在我們收益報告的補充表中以 MAU 的形​​式報告在已開發市場中。整體 MAU 下降是由於用戶結構從全球範圍內的低 LTV 用戶轉向已開發市場中的高 LTV 用戶所致。

These efforts to focus on higher LTV users who are more likely to subscribe, make purchases, and engage more often and more deeply with our content and features are bearing fruit. And thus, we continue to focus on attracting and retaining this part of our base. Additionally, our focused investment in paid user acquisition plays an important role in this success across both Android and iOS, and the positive trends are clearly reflected in our key performance metrics.

這些努力專注於更高 LTV 用戶，這些用戶更有可能訂閱、購買並更頻繁、更深入地參與我們的內容和功能，並且正在取得成果。因此，我們將持續致力於吸引和留住這部分客戶。此外，我們對付費用戶獲取的重點投資在 Android 和 iOS 的成功中發揮了重要作用，積極的趨勢在我們的關鍵績效指標中得到了清晰的體現。

Average revenue per monthly active user increased by 33% year-over-year, indicating that we're monetizing each user more efficiently. Deferred subscription revenue continued to climb with lifetime plans capturing a larger part of the overall mix.

每月活躍用戶平均收入年增 33%，顯示我們正在更有效地將每個用戶貨幣化。遞延訂閱收入持續攀升，終身計劃佔據了整體收入的更大份額。

For lifetime plans, the user prepays the full amount at purchase, requiring us to pay the entire app store fee up front. This allows us to recognize 100% gross margins on the deferred revenue as it is recognized monthly over the subsequent 30 months. And critically, key user metrics within well-developed economies have started to stabilize, hopefully positioning us for a return to growth in the future and reinforcing that the product and monetization strategies we have implemented resonate where they matter most.

對於終身計劃，用戶在購買時預付全額，要求我們預先支付全部應用商店費用。這使我們能夠確認遞延收入的 100% 毛利率，因為它在接下來的 30 個月內每月確認。至關重要的是，已開發經濟體中的關鍵用戶指標已經開始穩定下來，希望這能幫助我們在未來恢復成長，並強化我們實施的產品和貨幣化策略在最重要的地方產生共鳴。

MAU stabilization remains a focus, but not at any cost. Our priority is to grow our customer base of high LTV users who engage with our product regularly. And we're confident that our performance marketing efforts and product roadmap are assisting us in achieving these goals.

MAU 穩定性仍然是重點，但不會不惜一切代價。我們的首要任務是擴大定期使用我們產品的高 LTV 用戶群。我們相信，我們的績效行銷努力和產品路線圖正在幫助我們實現這些目標。

Looking ahead, innovation across our platform remains key to driving growth. We recently announced the launch of DataSeeds.AI, a B2B content marketplace that focuses on supplying enterprise customers in need of both on-demand and off-the-shelf data sets, initially focused on images, enriched with detailed metadata for AI training.

展望未來，我們平台的創新仍然是推動成長的關鍵。我們最近宣布推出 DataSeeds.AI，這是一個 B2B 內容市場，專注於為需要按需和現成資料集的企業客戶提供服務，最初專注於影像，並豐富了用於 AI 訓練的詳細元資料。

DataSeeds.AI leverages our growing content library of over 30 million rights-cleared images, our prolific community of photographers and graphic designers, and our existing marketplace infrastructure and know-how. We aim to become the go-to source for pre-training and fine-tuning AI data sets, meeting the needs of foundational model developers for high-quality, authentic, and diverse rights-cleared content at scale.

DataSeeds.AI 利用我們不斷成長的超過 3000 萬張獲得版權的圖像內容庫、我們豐富的攝影師和平面設計師社群以及我們現有的市場基礎設施​​和專業知識。我們的目標是成為預訓練和微調 AI 資料集的首選來源，滿足基礎模型開發人員對大規模高品質、真實和多樣化版權內容的需求。

Last week, we signed our first agreement with a leading global AI technology company, validating both the market opportunity and the value of what we have to offer. This initiative opens up a nascent new revenue source with the potential for not only reoccurring revenue but also potential recurring revenue streams for us, while also providing our creators with more ways to monetize their work.

上週，我們與一家全球領先的人工智慧技術公司簽署了第一份協議，驗證了市場機會和我們所提供產品的價值。這項措施為我們開闢了一個新興的收入來源，不僅有可能帶來經常性收入，而且還有潛在的經常性收入流，同時也為我們的創作者提供了更多將其作品貨幣化的方式。

Looking ahead, we are exploring opportunities to expand our offerings beyond images and provide additional mediums, including video and audio, as well as other commercially viable data types. We believe that this seminal business expansion supports our conviction that investing in and nurturing our vibrant artist community is a critical differentiator that will enable us to scale up quickly.

展望未來，我們正在探索機會，將我們的產品擴展到圖像之外，並提供其他媒介，包括視訊和音訊以及其他具有商業可行性的資料類型。我們相信，這次開創性的業務擴張支持了我們的信念，即投資和培育我們充滿活力的藝術家社群是一個關鍵的差異化因素，將使我們能夠迅速擴大規模。

We are also about to roll out an AI audio generator as part of pAInt, our Gen AI creation suite that allows users to harness the power of AI to generate custom ringtones and notification sounds with simple text prompts. This is a major milestone in our AI roadmap, positioning us as one of the first consumer platforms to enable user-generated audio content at scale. It also solidifies our leadership in mobile personalization.

我們也即將推出一款 AI 音訊產生器，作為 pAInt 的一部分，這是我們的 Gen AI 創作套件，它允許用戶利用 AI 的強大功能，透過簡單的文字提示產生自訂鈴聲和通知聲音。這是我們人工智慧路線圖的一個重要里程碑，使我們成為第一批能夠大規模支援用戶生成音訊內容的消費者平台之一。這也鞏固了我們在行動個人化領域的領導地位。

Emojipedia remains stable during the quarter and continues to evolve with the expected release of digital stickers, a new vertical, on World Emoji Day, which is celebrated in July. We're also inching toward the introduction of a full site redesigned to improve user experience and engagement.

Emojipedia 在本季保持穩定，並將繼續發展，預計將在 7 月的世界表情符號日發布新的垂直數位貼紙。我們也正在逐步推出經過重新設計的完整網站，以改善用戶體驗和參與度。

As discussed last quarter, we are ideating about what GuruShots 2.0 can and will be. Part of the undertaking revolves around the core game, including onboarding, progression, the voting mechanic, and reward dynamics. At the same time, we are also thinking about how to better meet the needs that we envision are critical for DataSeeds.AI to scale effectively.

正如上個季度所討論的，我們正在構思 GuruShots 2.0 可以做什麼以及將會做什麼。部分工作圍繞著核心遊戲展開，包括入職、進展、投票機制和獎勵動態。同時，我們也在思考如何更好地滿足我們認為對 DataSeeds.AI 有效擴展至關重要的需求。

As expected, GuruShots' revenue declined year-over-year, primarily due to our decision to materially decrease our paid user acquisition spend. Fortunately, the investments we have made are yielding customers with attractive ROAS profiles, but we want to keep much of our powder dry until we're ready for prime time with GuruShots 2.0.

正如預期的那樣，GuruShots 的收入同比下降，主要是因為我們決定大幅減少付費用戶獲取支出。幸運的是，我們所做的投資正在為客戶帶來頗具吸引力的 ROAS 概況，但我們希望在 GuruShots 2.0 的黃金時段做好準備之前，保持大部分的準備工作。

Across the company, we've identified five core strategic priorities for the remainder of the calendar year. AI innovation, mainly expanding the rollout of tools like our AI audio generator and embedding AI across all departments in the company including design, engineering, quality assurance, marketing, monetization, and finance.

在整個公司範圍內，我們確定了今年剩餘時間的五個核心策略重點。人工智慧創新，主要是擴大我們的人工智慧音訊產生器等工具的推廣，並將人工智慧嵌入公司所有部門，包括設計、工程、品質保證、行銷、貨幣化和財務。

Creator community empowerment by strengthening our creator community with opportunities to make money, gain recognition, and improve their skill base. User and subscription growth, with a particular focus on high value users.

透過加強我們的創作者社區，為他們提供賺錢、獲得認可和提高技能基礎的機會，從而增強創作者社群的能力。用戶和訂閱成長，特別關注高價值用戶。

GuruShots 2.0, that is, imagining what the next generation of GuruShots can be in order to drive standalone growth in concert with meeting the needs of DataSeeds.AI. And finally, B2B expansion, scaling DataSeeds.AI and exploring new enterprise content licensing opportunities.

GuruShots 2.0，即構思下一代 GuruShots，以推動獨立成長並滿足 DataSeeds.AI 的需求。最後，B2B 擴展，擴展 DataSeeds.AI 並探索新的企業內容授權機會。

We believe the structural improvements we've made will continue to become evident in Q4 fiscal year '25 and be fully visible as we move into fiscal '26. When combined with continued product innovation and strategic discipline, we are positioned well to deliver sustained growth, higher margins, and long-term value creation for shareholders.

我們相信，我們所做的結構性改進將在 2025 財年第四季繼續顯現，並在進入 2026 財年時完全顯現。結合持續的產品創新和策略紀律，我們能夠為股東實現持續成長、更高的利潤率和長期價值創造。

I would now like to call on Yi to provide insights into our financial performance. Yi?

現在我想請易先生就我們的財務表現提供一些見解。咿？

Thank you, Jonathan. Total revenue returned to growth in the third quarter, up 1.3% to $7.8 million. Revenue growth was restrained due to the partial quarter of TikTok returning to the advertising market and the continued expected declines at GuruShots.

謝謝你，喬納森。第三季總營收恢復成長，成長 1.3% 至 780 萬美元。由於 TikTok 部分季度重返廣告市場以及 GuruShots 的持續下滑，收入成長受到抑制。

Third quarter subscription revenue was up 13.4% from last year, and our net active subscriber growth trend continued to improve, up 37% year-over-year, and sequentially, for the eighth straight quarter. As Jonathan mentioned, we also saw a shift towards lifetime subscription, which provides recurring revenue source for 2.5 years following sign up.

第三季訂閱營收較去年同期成長13.4%，我們的淨活躍訂閱用戶成長趨勢持續改善，較去年同期成長37%，連續第八個季度較上季成長。正如喬納森所提到的，我們也看到了終身訂閱的轉變，這種訂閱方式在註冊後的 2.5 年內可提供經常性收入來源。

Our deferred revenue, of which the vast majority is related to our subscription revenue, was $4.9 million. Deferred revenue has grown by 111% over the past seven quarters and has a 100% gross margin. Zedge premium's gross transaction value grew 4% versus last year. However, Zedge premium's net revenue more than doubled this quarter.

我們的遞延收入為 490 萬美元，其中絕大部分與訂閱收入有關。過去七個季度，遞延收入成長了 111%，毛利率為 100%。Zedge premium 的總交易額比去年增加了 4%。不過，Zedge premium 本季的淨收入增加了一倍以上。

As Jonathan mentioned, the shift towards higher lifetime value or LTV users is important as subscriptions and higher Zedge premium sales, combined with our expertise at optimizing costs per impression, led to a record average revenue per monthly active user of $0.10, up 33% from last year.

正如喬納森所提到的，轉向更高的終身價值或 LTV 用戶非常重要，因為訂閱和更高的 Zedge 高級銷售額，加上我們在優化每次展示成本方面的專業知識，導致每月活躍用戶平均收入達到創紀錄的 0.10 美元，比去年增長了 33%。

GuruShots, which is reported under digital goods and services revenue remained a challenge, down 45% from last year. Remember that as part of our cost savings initiatives, we cut user acquisition spending at GuruShots while GuruShots 2.0 is in the planning stage. So this decline wasn't unexpected.

數位商品和服務收入中報告的 GuruShots 仍然面臨挑戰，比去年下降了 45%。請記住，作為我們成本節約計劃的一部分，在 GuruShots 2.0 處於規劃階段時，我們削減了 GuruShots 的用戶獲取支出。因此，這種下降並不令人意外。

Cost of revenue was 5.8% for the quarter, roughly flat year-over-year on an absolute basis despite the pick up in revenue. SG&A decreased by 6% to $6.3 million during the quarter. This decrease was mainly driven by our restructuring initiatives and lower marketing spend at GuruShots. We had restructuring charges of $0.6 million related to our announced restructuring activities in late January and early February versus no restructuring charges or asset impairments in the year ago quarter.

本季營收成本為 5.8%，儘管收入有所回升，但絕對成本與去年同期基本持平。本季銷售、一般及行政費用下降 6% 至 630 萬美元。這一下降主要是由於我們的重組舉措和 GuruShots 的營銷支出減少所致。我們在 1 月底和 2 月初宣布的重組活動產生了 60 萬美元的重組費用，而去年同期沒有重組費用或資產減損。

GAAP income from operations was $0.2 million for the quarter compared to negative $0.1 million last year. GAAP net income and EPS for the quarter was $0.2 million and $0.01, compared to $0.1 million and $0.01, respectively last year.

本季 GAAP 營業收入為 20 萬美元，去年同期為負 10 萬美元。本季 GAAP 淨收入和每股收益為 0.2 百萬美元和 0.01 美元，而去年同期分別為 0.1 百萬美元和 0.01 美元。

Non-GAAP net income and EPS were $0.9 million and $0.06 compared to $0.5 million and $0.03 in the prior year. Cash flow from operations was $0.9 million and free cash flow was $0.8 million for the quarter. As Jonathan mentioned, cash payments related to the restructuring and the retention bonuses tied to our 2022 acquisition of GuruShots negatively impacted free cash flow by about $1 million in aggregate.

非公認會計準則淨收入和每股收益分別為 0.9 百萬美元和 0.06 美元，而去年同期為 0.5 百萬美元和 0.03 美元。本季經營現金流為 90 萬美元，自由現金流為 80 萬美元。正如喬納森所提到的，與重組相關的現金支付以及與我們 2022 年收購 GuruShots 相關的留任獎金總計對自由現金流產生了約 100 萬美元的負面影響。

We expect these payments to materially decline in Q4 to about $600,000 and then be immaterial in FY26, which is when the full impact of all $4 million in annualized cost reduction initiatives should start to show through. Adjusted EBITDA for the quarter increased 46% to $1.2 million. Note that depreciation and amortization decreased 61% or about $350,000 compared to last year due to the impairment of capitalized software and technology development costs.

我們預計這些支出將在第四季度大幅下降至約 60 萬美元，然後在 26 財年變得不重要，屆時所有 400 萬美元年度成本削減計劃的全部影響將開始顯現。本季調整後的 EBITDA 成長 46%，達到 120 萬美元。請注意，由於資本化軟體和技術開發成本的減值，折舊和攤提與去年相比減少了 61% 或約 35 萬美元。

From a liquidity standpoint, we finished the quarter with $20.4 million in cash and cash equivalents, which was up 2% sequentially, despite buying back 219,000 shares for about $530,000. Fiscal year-to-date, we have repurchased nearly 700,000 shares.

從流動性角度來看，儘管我們以約 53 萬美元的價格回購了 21.9 萬股股票，但本季我們仍持有 2,040 萬美元的現金和現金等價物，較上季成長 2%。本財年迄今，我們已回購近 70 萬股。

Thank you for listening to our third quarter earning call. And I look forward to speaking with you again on our year-end call in October. Operator, back to you for Q&A.

感謝您收聽我們的第三季財報電話會議。我期待在十月的年終電話會議上再次與您交談。接線生，回到您的問答環節。

Allen Klee, Maxim Group.

艾倫·克萊（Allen Klee），馬克西姆集團（Maxim Group）。

Yes, hi. Good job on this quarter, definitely. So congrats on that.

是的，你好。本季的表現確實不錯。對此我表示祝賀。

Some questions. When I look at your advertising revenue that did well and there's different pieces of that, is there a way to say like, if you had to rank the different pieces that go into that or how you would rank the ones that had the biggest impact?

一些問題。當我看到您的廣告收入表現良好，並且其中有不同部分時，您是否可以對其中的各個部分進行排名，或者如何對其中影響最大的部分進行排名？

Hi, Allen, it's Jonathan. Thanks so much for the congratulations. We pursue advertising as a comprehensive effort on our part. So it's kind of hard to answer that question with precision. And a recurring theme is that we consistently broadcast is that we've got an outstanding team focused on optimizing CPMs, that is cost per thousand, the metric that is used to value our inventory.

你好，艾倫，我是喬納森。非常感謝您的祝賀。我們將廣告視為我們所做的一項綜合性努力。因此，要準確回答這個問題有點困難。我們不斷強調的一個主題是，我們擁有一支優秀的團隊，致力於優化 CPM，即每千次展示成本，這是用於評估我們庫存的指標。

Okay. But you said during -- you said that TikTok came back at some point during the quarter. Does it feel --how much of the quarter -- because you had your best to advertise -- your best -- I'm always say this wrong, ARP MAU you've ever put up and it was up like 33% year-over-year.

好的。但您說 TikTok 在本季的某個時候回歸了。感覺怎麼樣？本季有多少時間？因為你盡了最大努力做廣告，你做得最好了。我總是說錯了，你公佈的 ARP MAU 年比增加了 33%。

But their support of the overall market wasn't there for the whole quarter. Could you give us a sense of how long it was there for and are you hearing that anything about like -- because we are hearing from some other -- that advertising might be a little challenge, but just whatever you could tell us would be helpful. Thanks.

但他們對整個市場的支持並沒有持續整個季度。您能否告訴我們它存在了多長時間，您是否聽說過類似的事情——因為我們從其他人那裡聽說——廣告可能有點挑戰，但無論您能告訴我們什麼都會有所幫助。謝謝。

Well, as you recall, there was a ban of TikTok in the US that was not lifted until mid-February. When it was lifted, it took a little bit more time for the numbers to come back, for TikTok to get back into the market and so on and so forth.

嗯，你還記得，美國曾禁止過 TikTok，直到 2 月中旬才解除禁令。當禁令解除後，數據需要一段時間才能恢復，TikTok 也需要一段時間才能重返市場等等。

And they are and continue to be in the market, very present. I cannot venture to speak to whatever policy decisions are made out of Washington. Having said that, they continue to buy in the market and remain ever present across advertising and marketing and all of the other Initiatives that they are involved in.

它們現在和將來都會存在於市場上，非常活躍。我不敢妄談華盛頓所做的任何政策決定。話雖如此，他們仍繼續在市場上購買，並始終存在於廣告和行銷以及他們參與的所有其他計劃中。

Okay. But I'm still not understanding why. They came back but they didn't come back for the full quarter maybe (multiple speakers) --

好的。但我還是不明白為什麼。他們回來了，但可能沒有回來整個季度（多位發言者）——

Remember our quarter started February 1. They were not in the market for the entire quarter because the ban was not lifted until mid-February.

請記住我們的季度從 2 月 1 日開始。由於禁令直到二月中旬才解除，因此他們整個季度都沒有進入市場。

Okay. Then --

好的。然後--

So what had happened was both Google and Apple were not availing users of our new new installs of the TikTok app. And TikTok was, therefore, not investing marketing dollars in trying to get users to download their app. When the government reversed the ban, TikTok began to invest in user acquisition once again.

所以發生的情況是，Google和蘋果都沒有為用戶提供我們新安裝的 TikTok 應用程式。因此，TikTok 並沒有投入行銷資金來吸引用戶下載他們的應用程式。當政府撤銷禁令後，TikTok 開始再次投資用戶獲取。

And that has such a big factor on the market? But what -- is there a (multiple speakers) --

這對市場有這麼大的影響嗎？但是——有一個（多位發言者）——

I can't quantify specifically how much of this is TikTok, but TikTok is obviously one of the leading mobile apps in the market. They spend a lot of money on marketing. And Zedge has, time and time again, proven to be a very good user acquisition platform for them. With their re-entry into the market being that we monetize a good portion of our revenue through programmatic advertising, which is a marketplace, buyers and sellers, supply and demand, then pricing increased.

我無法具體量化其中有多少是 TikTok 的貢獻，但 TikTok 顯然是市場上領先的行動應用程式之一。他們在行銷上投入了大量資金。而 Zedge 一次又一次證明，它是一個非常好的用戶獲取平台。隨著他們重新進入市場，我們透過程式化廣告將很大一部分收入貨幣化，這是一個市場，有買家和賣家，有供應和需求，然後價格就會上漲。

Having said that, I also want to underscore what we talked about with our focus, particularly from a marketing user acquisition perspective, being on catering to the users in well-developed economies. Those well-developed economies carry more weight in terms of the CPMs that they can bring to the table. So that was also a significant piece of the overall improvement.

話雖如此，我也想強調我們討論的重點，特別是從行銷用戶獲取的角度來看，我們的重點是迎合發達經濟體的用戶。那些已開發經濟體在所能帶來的 CPM 方面具有更大的影響力。所以這也是整體改進的一個重要部分。

Yi, do you have anything you want to add?

易，您還有什麼要補充的嗎？

Yeah, I mean, when they come to my (inaudible). We added in addition to [AdLava] and we added [AdMob] as our second mediation platform. And we constantly testing different platform and try to get higher CPM for our inventory. I hope that answered your question, I mean, in addition to the reason why Jonathan mentioned.

是的，我的意思是，當他們來到我的（聽不清楚）。除了 [AdLava] 之外，我們還添加了 [AdMob] 作為我們的第二個中介平台。我們不斷測試不同的平台並嘗試為我們的庫存獲得更高的 CPM。我希望這能回答你的問題，我的意思是，除了喬納森提到的原因之外。

Got it. Okay. Thank you. That's good color.

知道了。好的。謝謝。這顏色真好。

And in terms of your monthly average -- monthly active users, what -- I mean, should we expect that to just to continue to grind down or anything? What can you do to stabilize that and then grow it?

就您的每月平均月活躍用戶數而言，我的意思是，我們是否應該預期它會繼續下降或出現其他情況？您可以做些什麼來穩定並發展它？

Great question. So we are working on stabilizing it and the focus is really on the well-developed markets. We have seen some Improvement, I think, May-to-May, year-over-year, we were flat and we continue to refine and optimize our user acquisition spend to bring on high-value users in those markets.

好問題。因此，我們正在努力穩定市場，重點是成熟市場。我認為，我們已經看到了一些改善，與去年同期相比，5 月份我們的業績持平，我們將繼續改進和優化我們的用戶獲取支出，以在這些市場吸引高價值用戶。

We love users from all markets, but clearly we're prioritizing our focus on users that can provide a disproportionate impact to our overall revenue stream from the well-developed markets. And to that end, we have expanded our investment and user acquisition for the Zedge marketplace over the course of the last quarters with attractive return on ad spend users. And that ultimately drives more revenue for the company, even though we have lost users in less well-developed or developing economies, emerging markets and the like.

我們熱愛來自所有市場的用戶，但顯然我們優先關注那些能夠為我們來自已開發市場的整體收入流帶來不成比例影響的用戶。為此，我們在過去幾季擴大了對 Zedge 市場的投資和用戶獲取，並為廣告支出用戶帶來了可觀的回報。儘管我們在欠發達或發展中經濟體、新興市場等地區失去了用戶，但最終還是為公司帶來了更多收入。

Okay. Got it. In terms of -- I see you had written with Emojipedia is one of the things was -- the new feature of the Emojipedia sandbox, could you comment on that? What that is, yeah, what you're doing there?

好的。知道了。就——我看到您寫過 Emojipedia 是其中之一——Emojipedia 沙盒的新功能，您能對此發表評論嗎？那是什麼，是的，你在那裡做什麼？

Yeah, the Emojipedia has been testing new features such as create your own emoji with AI or some mini emoji games. We are really focused on the upcoming release of digital stickers, which will be an adjacent vertical, and we plan that for World Emoji Day, which takes place in July.

是的，Emojipedia 一直在測試新功能，例如使用 AI 創建自己的表情符號或一些迷你表情符號遊戲。我們真正關注的是即將發布的數位貼紙，這將是一個相鄰的垂直領域，我們計劃在 7 月的世界表情符號日推出該功能。

It will be our first foray into a brand new content type, which is not emoji-driven. And our hope is that based upon the similarity in terms of use of emojis and stickers that that will drive additional interest, traffic, and engagement to the platform.

這是我們首次嘗試一種全新的、非表情符號驅動的內容類型。我們希望，基於表情符號和貼紙使用的相似性，能為平台帶來更多興趣、流量和參與度。

Okay. Great. In terms of Zedge Premium, the marketplace, would that -- last quarter you talked about -- you rewarded video usage and you had good conversion rates. What's any commentary on the factors affecting the marketplace and GTV this quarter you're thinking year-over-year?

好的。偉大的。就 Zedge Premium 市場而言，上個季度您談到過，您獎勵視訊使用，並且獲得了良好的轉換率。您對於本季影響市場和 GTV 的因素與去年同期相比有何評論？

I'm sorry, it was hard to hear. Can you repeat the question?

抱歉，我聽不清楚。你能重複一下這個問題嗎？

Just commenting on your Zedge Premium, how you thought about it, how it performed and the main things you're working on there related to it.

只是評論一下您的 Zedge Premium，您對它的看法，它的表現如何以及您正在進行的與它相關的主要工作。

Zedge Premium continues to be a core part of the overall marketplace. And our thought process is to continue to bring on new artists and provide them with tooling that will enable revenue creation for them.

Zedge Premium 繼續成為整個市場的核心部分。我們的思路是繼續引進新的藝術家並為他們提供能夠創造收入的工具。

The major thing that has happened over the course of the last couple of months has been that we've also made Zedge Premium content available on web. And that opens up a new channel for customers to ultimately purchase that content. So with that in mind, that will continue -- that investment, in terms of our community, will continue to be a piece with us.

過去幾個月發生的一件大事是，我們也將 Zedge Premium 內容發佈到了網路上。這為客戶最終購買內容開闢了一條新管道。因此，考慮到這一點，我們將繼續進行這項投資——就我們的社區而言，這項投資將繼續成為我們的一部分。

And then separately, although we've not -- you haven't asked about it, we look at our creator community on a comprehensive basis both in the Zedge marketplace and then GuruShots as being a very strategic asset that we can turn to for content on demand needs that come to light because of DataSeeds.AI; the new business-to-business marketplace that we had announced last week focusing on curating and creating content to meet the needs of foundational AI companies in terms of refining and tuning their respective models accordingly.

然後單獨來說，雖然我們沒有——你沒有問到這個問題，但我們全面地看待我們的創作者社區，無論是在 Zedge 市場還是在 GuruShots，我們都認為這是一項非常具有戰略意義的資產，我們可以利用它滿足 DataSeeds.AI 帶來的按需內容需求；我們上周宣布的新的 B2B 市場專注於改進和創建公司的需求。

Yeah, that sounds very helpful. In terms of the -- so for DataSeed, just in -- when do you think -- I mean, you've announced the transaction, but how do you think about how this gets rolled out?

是的，這聽起來很有幫助。就 DataSeed 而言，您認為什麼時候——我的意思是，您已經宣布了這項交易，但您認為如何進行這項交易？

So we are actively in the market building relationships with prospective customers. And in addition to that, we have also published a research paper in conjunction with Pearl.AI and Emmett Research demonstrating that our data set has advantages for automated recognition system -- visual recognition systems.

因此，我們積極在市場上與潛在客戶建立關係。除此之外，我們也與 Pearl.AI 和 Emmett Research 共同發表了一篇研究論文，證明我們的資料集對於自動辨識系統——視覺辨識系統具有優勢。

And that is a marketing effort, clearly, to get our name out there. We've been very highly ranked on Hagging Face since we published that paper. And with any new B2B product for us, this is really brand new. We're now seeding the market, no pun intended, and building those relationships so that we can meet these bespoke needs.

顯然，這是一項行銷活動，目的是讓我們的名字廣為人知。自從我們發表那篇論文以來，我們在 Hagging Face 上的排名一直很高。對我們來說，對於任何新的 B2B 產品來說，這都是全新的。我們現在正在開拓市場，這不是雙關語，而是建立這些關係，以便我們能夠滿足這些客製化的需求。

One of the problems that we have come to recognize is that many of these foundational models are not able to source these unique needs that they have with materiality and in a short period of time. And the promise that we bring to the table is being able to fill that need.

我們已經認識到的一個問題是，許多基礎模型無法在短時間內滿足其獨特的物質需求。我們的承諾就是能夠滿足這項需求。

So clearly, if we just look at images on the GuruShots side of the house, if a model has a specific need of unique content that is not something that they can readily get their hands on, we can reach out, we can launch a competition, or even engage with our photo enthusiasts in our community in order to amass volume associated with that particular need.

顯然，如果我們只查看 GuruShots 方面的圖像，如果某個模特兒有他們無法輕易獲得的獨特內容的特定需求，我們可以聯繫他們，發起比賽，甚至與我們社區中的攝影愛好者互動，以積累與該特定需求相關的數量。

Of course, we can't handle every request that is on the market but, by way of example, we're not providing photographs of internal organs, which are really important for AI models and how diseases are recognized and discovered and so on and so forth. Yet there are many, many use cases.

當然，我們無法處理市場上的所有請求，但舉例來說，我們不提供內臟器官的照片，而這對於人工智慧模型以及如何識別和發現疾病等非常重要。然而，還有很多很多的用例。

And just to mention one that we've come across, there's a entity that's trying to build a model that will render shadows accurately. That's a very complex question -- issue, just take as by way of example. You're sitting in your office, the curtains are open, you've got overhead lighting, how are shadows rendered. That's the sort of stuff that we can generate lots and lots of images in a relatively short period of time in order to help refine that model.

僅舉一個我們遇到的例子，有一個實體正在嘗試建立一個可以準確渲染陰影的模型。這是一個非常複雜的問題——問題，僅舉一個例子。您坐在辦公室裡，窗簾拉開，頭頂有照明，陰影是如何呈現的。為了幫助完善該模型，我們可以在相對較短的時間內產生大量圖像。

That's very interesting. Okay. Thank you. In terms of -- you talked about rolling out an audio AI. What would that look like? Is that like a ring tone or is it -- or what -- how should that -- and when are you thinking of that coming out? I think it's somewhat near-term.

這很有趣。好的。謝謝。就此而言——您談到推出音訊 AI。那會是什麼樣子呢？那是一種鈴聲嗎？或者它是什麼？應該怎樣？您打算什麼時候推出它？我認為這是近期的事。

We're going to be rolling it out on a limited basis first before the end of June. And then we will scale and based upon iterative feedback and so on and so forth, it will be a feature within the Zedge marketplace. And just as with Gen AI imagery today, a user will essentially be able to go in and create a ring tone or -- and a ring tone doesn't necessarily mean that it's strictly music, it can be a funny sound, just by way of example. But a user will prompt and based upon their prompts, they will get the content that -- or they will create the content that they have prompted.

我們將在六月底之前首先在有限範圍內推出該服務。然後我們將擴大規模並根據迭代反饋等，它將成為 Zedge 市場中的一項功能。就像今天的 Gen AI 圖像一樣，用戶基本上可以進入並創建鈴聲或 - 鈴聲並不一定意味著它是嚴格的音樂，它可以是一種有趣的聲音，僅舉一個例子。但是用戶會提示，並根據他們的提示，他們會得到內容 - 或者他們會創建他們提示的內容。

So this would be -- it would be somewhat of a premium price versus (multiple speakers) --

所以這將是——這將是一個溢價，而不是（多位發言者）——

Well, the business model is something where I imagine that it will be somewhat available in our subscription offering. And for those users that do not subscribe, or we may put up some sort of a paywall or advertising paywall. That's all being worked on as we speak.

嗯，我想像這種商業模式將在我們的訂閱服務中得到一定程度的體現。對於那些沒有訂閱的用戶，我們可能會設置某種付費牆或廣告付費牆。正如我們所說，這一切都正在進行中。

Okay. But this could just help with the momentum you already have with subscriptions.

好的。但這只能幫助您保持訂閱方面的現有勢頭。

Yes, that's correct. In addition to that, from a timing perspective, audio is still rather nascent in this type of consumer offering in the marketplace. And we are hopeful that we can benefit from entering at an early point in time, which could lead to more users coming to us to engage with this new feature. That's what our -- that's what we're hoping for.

是的，沒錯。除此之外，從時間角度來看，音訊在市場上這種類型的消費產品中仍處於起步階段。我們希望儘早進入能夠帶來好處，從而吸引更多用戶來使用這項新功能。這就是我們的——這就是我們所希望的。

Okay. That's great. So just when I heard you say -- one of the things you said you think year-over-year improvement in bottom line metrics could become more visible next quarter with what you've done in the cost structure, taking into account traditional seasonality. The next quarter is it a little slower because of the summer time or -- and could you remind us what you said about the restructuring or the retention costs that that you said will happen in fiscal fourth quarter?

好的。那太棒了。所以，剛才我聽到您說——您說的一件事是，考慮到傳統的季節性，考慮到您在成本結構方面所做的工作，下個季度底線指標的同比改善可能會變得更加明顯。下個季度是否會因為夏季而稍微慢一些——您能否提醒我們一下您所說的重組或保留成本將在第四財季發生的情況？

Sure. So for the specific numbers, I'm going to have Yi answer your question. In terms of, let's call it, seasonality in the business, as I think you know, typically our Q4 is a little bit lighter because of the summer. It's the month of May, June, July, our fiscal year begins on August 1. At the same point in time, we are still very, very focused on making sure that we're growing the business.

當然。至於具體數字，我將讓易來回答你的問題。就我們所說的業務季節性而言，我想您知道，由於夏季的原因，我們的第四季度業務通常會稍微輕鬆一些。現在是五月、六月、七月，我們的財政年度從 8 月 1 日開始。同時，我們仍然非常非常注重確保業務的成長。

When you say growing the business, so are you including the top line?

當您說發展業務時，是否包括營業收入？

Yes, that's correct.

是的，沒錯。

Okay. Great. And --

好的。偉大的。和--

But I'll just -- I'll underscore the obvious as was very clear from both Yi's comments and my comments, our cash flow has and will continue to be outstanding. The restructuring certainly is helping us. I think that we said that, there could be up to another like $4 million of cash flow because the restructuring has unfolded very, very well.

但我只想強調一個顯而易見的事實，正如易建聯和我的評論所明確指出的那樣，我們的現金流一直很出色，並且將繼續保持出色。重組確實對我們有幫助。我想我們說過，由於重組進展非常順利，可能會有另外 400 萬美元的現金流。

The fact that the GuruShots retention bonus is almost completely behind us from a payout perspective and the fact that we have pailed or not pailed but cut back on user acquisitions spend for GuruShots while we get around what GuruShots 2.0 will ultimately be, all of those are contributing to our improved cash flow.

事實上，從支出角度來看，GuruShots 的留任獎金幾乎已經完全過去了，而且，在我們著手實現 GuruShots 2.0 的最終目標時，我們已經削減了 GuruShots 的用戶獲取支出（無論是否削減），所有這些都有助於改善我們的現金流。

So from a cash flow perspective, I would underscore that we're doing really nicely. Yi, you may want to get into some of the more specific numbers about the retention bonus and other (multiple speakers) Allen is interested in.

因此，從現金流的角度來看，我要強調的是，我們做得非常好。易先生，您可能想了解有關留任獎金和其他（多位發言者）艾倫感興趣的一些更具體的數字。

Yes, hi, Allen. So the tail end of the restructuring charges in Q4 would be about $325,000. This is because the accounting standard, we can only expense and pay out during the period -- during the retention period they still with the company. So after July, it will be gone in terms of charges but there's some severance payment will be paid throughout the next five months of the year.

是的，你好，艾倫。因此，第四季重組費用的尾端約為 325,000 美元。這是因為根據會計準則，我們只能在員工仍在公司保留期間內支出和支付費用。因此，七月之後，費用將消失，但在接下來的五個月中將支付一些遣散費。

And in terms of retention bonus, we have charged everything to the P&L. But the cash payment, the last payment was actually made in May with the April payroll, if you will, which is about $323,000. So Q4 accounting for cash flow will be about $600,000 related to retention bonus and related to restructuring charges. I hope that answered your question, Allen.

至於留任獎金，我們已將所有款項計入損益表。但現金支付，最後一筆付款實際上是在 5 月份與 4 月份的工資一起支付的，大約是 323,000 美元。因此，第四季度的現金流量會計將約為 60 萬美元，與留任獎金和重組費用有關。我希望這回答了你的問題，艾倫。

Yes. Thank you. Okay. I'm trying to think if I think I get most of the things I wanted to. I think those are my questions. Well, this was a very good color so thank you and congrats.

是的。謝謝。好的。我試著思考我是否已經得到我想要的大部分東西了。我想這些都是我的問題。嗯，這是一個非常好的顏色，所以謝謝你，恭喜你。

Thank you, Allen.

謝謝你，艾倫。

Thank you. This concludes our question-and-answer session and conference call. Thank you for attending today's presentation. You may now disconnect.

謝謝。我們的問答環節和電話會議到此結束。感謝您參加今天的演講。您現在可以斷開連線。