Zoomd Technologies Reports Fourth Quarter and Fiscal 2023 Financial Results
Conference call will be held on
Key Financial Highlights
- Revenues in FY2023 were
$32.1M , a 39% decline versus FY2022, primarily due to lower revenues from the cryptocurrency sector andZoomd's decision to discontinue unprofitable activities. - Gross margins increased by 6% for the same period.
- Mid-year improvements were made to address market trends. These actions lead to positive operating income in Q4.23, for the first time in the last 5 quarters.
- Ended FY2023 with a cash balance of
$2.6M , net cash generated from operating activities of$0.4M , and no long-term debt.
Management Commentary
We have already begun to see the fruits of our actions in the second half of 2023 with an improvement of
The joint work of the management team and the board and the successful execution of the restructuring plan previously announced, lays the stable foundation to build upon. We are confident in our ability to continue delivering results for our current and future clients."
Fourth Quarter 2023 Highlights (All Figures in Thousands in USD)
- Revenues for the three months ended
December 31, 2023 were$7.5 million , a 30% decline relative to Q4.22. Revenues continued to be negatively affected by the global economic slowdown, in particular in the areas of cryptocurrencies. We continue to diversify our business by increasing our exposure to sectors such as E-commerce, iGaming and transportation. Furthermore, our decision to discontinue unprofitable areas, including our publishers' monetization business, led to a decline in revenue. Excluding both Cryptocurrency clients and non profitable operations clients that have been discontinued, revenue in Q4.23 has risen in comparison to the corresponding period of 2022. - Gross profit margin was 34% for the year ended
December 31, 2023 , versus 38% for the same period in 2022. - Research and Development expenses for the three months ended
December 31, 2023 were$0.6M , a 76% decrease YOY. Selling, General and Administrative expenses for the three months ended December 31, 2023 were$1.9M , a 40% decrease YOY. The decrease in expenses is primarily attributable to the implementation of mid-year improvements that were made to address market trends noted above. - Adjusted EBITDA for the three months ended
December 31, 2023 , was$0.6M as compared with Adjusted EBITDA of$0.2M for the three months endedDecember 31, 2022 . The increase in Adjusted EBITDA was primarily attributable to the implementation of mid-year improvements that were made to address market trends. - Operating income was
$0.1M for Q4.23, compared to an operating loss of$1.7M in Q4.22. the Company achieved a positive operating income, for the first time in 5 consecutive quarters. - As of
December 31, 2023 , the Company's cash and cash equivalents amounted to$2.6 million , and no long-term debt.
Fiscal Year 2023 Highlights (All Figures in Thousands in USD)
- For the twelve months ended
December 31, 2023 , revenues were$32M , a decrease of 39% year-over-year. Excluding both cryptocurrency clients and non profitable operations clients that have been discontinued, revenue in 2023 has risen in comparison to the year 2022. - Gross profit margin was 37% for the twelve months ended
December 31, 2023 , versus 31% for the same period in 2022. - Research and Development expenses for the twelve months ended
December 31, 2023 were$3.3M , a 51% decrease YOY. Selling, General and Administrative expenses for the twelve months endedDecember 31, 2023 , were$10M , a 17% decrease YOY. The decrease in expenses is primarily attributable to the implementation of mid-year improvements that were made to address market trends. - Adjusted EBITDA for the twelve months ended
December 31, 2023 , was$1.7M as compared with Adjusted EBITDA of$3.7M for the twelve months endedDecember 31, 2022 . The decrease is primarily attributable to the decrease in revenues. - Operating loss was
$4.1M for FY 2023, compared to an operating loss of$2.1M in FY 2022. The increase in operating loss is primarily attributable to the impairment of intangible assets.
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/w7KopoOpqXE
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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 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
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Company Media Contacts:
Chairman
ir@zoomd.com
Website: www.zoomd.com
Investor relations:
New York | Phoenix
ZOMD@lythampartners.com
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