VANCOUVER, BC, Nov. 22, 2021 /CNW/ -- Zoomd Technologies
Ltd. (TSXV: ZOMD) (OTC: ZMDTF) ("Zoomd" or the
"Company"), a leading provider of an online
advertising robust marketing platform that focuses on
improving customers user acquisition campaigns, reported its
financial results for the three and nine-month period ended
September 30, 2021 today. The
financial statements and MD&A are available on SEDAR under the
Company's profile.
Ofer Eitan, Zoomd's CEO,
commented, "we achieved a new record in Q3 2021 as our focus on
diversifying our client base, both with respect to sectors and
geographies, is beginning to bear fruit. We are seeing a surge in
budgets from our legacy clients that are looking to expand their
acquisition sources, as the post-pandemic recovery continues and
privacy limitations start affecting advertisers ROI's. The strong
revenue growth is producing positive adjusted EBITDA and cash
flows, demonstrating the strength of our business and strategic
positioning."
Ofer further added, "we are continuing to experience strong
demand for our user-acquisition products and services from both new
and existing clients, driven by our innovative technology, and the
great results our existing clients are achieving with our
technology. We are seeing an increase within the allocation of
advertising budgets to our platform and services, which we consider
to be a direct result on the Company's ability to mitigate against
the impacts of the major iOS 14, 15 updates and other new market
privacy limitations rolled out, as well as announced by Apple and
Google.
Ofer ended by noting that, "our growth initiatives to expand
into new geographies, such as Latin
America and Asia, as well
as expanding in hyper growing industry categories including
fintech, e-commerce, gaming, and on demand services, have proven
successful. As we look forward to 2022 and beyond, we expect to
ramp up our self-serve products to expand our client base and
further the growth of the Company."
THIRD QUARTER 2021 KEY HIGHLIGHTS (ALL FIGURES ARE IN
USD)
- Q3-2021 Revenues increased 141% compared to
Q3-2020 and 43% compared to Q2-2021 to a quarterly record of
$16M, making the fourth consecutive
quarter of revenue growth.
- Q3-2021 growth was driven primarily by the growing momentum in
current customers as well as the onboarding of new clients.
- The Company increased the number of "big customers"
[2] by 33% YOY. Moreover, the average revenue per
customer increased by 170%% YOY.
- The Company generated a positive Adjusted EBITDA of
$1.6M during the quarter, its highest
level as a public company, compared to ($0.9M) in Q3-2020 and an increase of 25% relative
to Q2-2021.
- The Company achieved a positive cash flow from operations of
$1.7M in the quarter, compared
to ($1M) in
Q3-2020.
THIRD QUARTER 2021 HIGHLIGHTS (ALL FIGURES ARE IN
THOUSANDS USD)
- For the three months ended September 30,
2021, revenues were $15,961,
as compared to $6,625 for the three
months ended September 30, 2020, an
increase of approximately 141% year-over-year. The increase in
revenues is primarily a result of customer acquisitions in growth
sectors such as fintech, e-commerce, and gaming, as well as
expansion in new geographies such as Latin America. In addition, our existing
customers have allocated an increasing portion of their user
acquisition budgets to Zoomd, as they have witnessed strong ROI on
their spending.
- Gross profit margin was 29% for the three months ended
September 30, 2021, versus 31% for
the same period last year, reflecting the typical lower margin
achieved in the starting phases of new client relationships.
- Research and Development (R&D) expenses for the three
months ended September 30, 2021, were $
1,194, a 27% decrease YOY, primarily reflecting the
capitalization of software development costs.
- Selling, General and Administrative (SG&A) expenses for the
three months ended September 30, 2021, were $2,459, a 31% increase YOY, primarily reflecting
the expenses incurred as a result of the Performance Revenues
acquisition and increases in sales department bonuses as part of
the significant growth in revenues.
- Adjusted EBITDA for the three months ended September 30, 2021, was $1,647 as compared with an Adjusted EBITDA loss
of ($850) for the three months ended
September 30, 2020, an increase of
$2,497. The improvement
in the Adjusted EBITDA is primarily attributed to the significant
increase in revenue.
- Net cash generated from operating activities for the three
months ended September 30, 2021 was
$1,653 as compared to net cash used
from operating activities of $(991)
in Q3-20, a positive change of $2,644.
The increase in cash used in operating activities is primarily
attributed to the increase in revenues over the comparative
periods.
- As of September 30, 2021, the Company's cash and cash
equivalents amounted to approximately $3,217, and no debt, compared to $2,972 on September 30,
2020. In addition, as of September 30, 2021 the Company
had $10,689 of trade receivables,
compared to $4,619 for the same
period last year.
PLATFORM AND SELF SERVE PRODUCTS UPDATE:
- During Q3 2021, Zoomd's platforms received market justification
of its approach to the iOS 15 privacy changes led by Apple. Zoomd's
underlying product logic is built in a way that resulted in the
privacy changes having a minimal impact on the products and their
users.
- The Company signed a Marketing Partner Agreement with Snapchat
and got certified as a formal API platform integrated marketing
partner. The platform integration will grant Zoomd's customers the
ability to enjoy the growing success and uniqueness of Snapchat
under within the Zoomd ecosystem which compliments the other
channels that Zoomd is already integrated with.
- The Company released an updated publisher dashboard for
publishers which works with Zoomd's "on site" search solution. The
upgraded version provides publishers more insights and clarity
regarding site traffic, search behavior and content
engagement.
CONFERENCE CALL
Zoomd management will host a conference call on November 23,
2021 at 11:00 a.m. ET to discuss the third
quarter's results.
Please join the call using the following link:
https://zoomd.com/investors/ or at
https://www.webcaster4.com/Webcast/Page/2473/43788
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.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the Exchange)
accepts responsibility for the adequacy or accuracy of this
release.
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.
The references in this press release to Adjusted EBITDA are
forward-looking information about prospective financial performance
and readers are cautioned that this information may not be
appropriate for other purposes.
Please refer to the Company's MD&A for the three and
nine-month period ended September 30,
2021 for a reconciliation of EBITDA and Adjusted EBITDA
to Operating Gain (Loss) for the three and nine months ended
September 30, 2021, and 2020.
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, statements with respect
Zoomd's future ability to successfully continue its growth, 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 which 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), 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.
[1] "Adjusted EBITDA" is a NON-IFRS financial measure. See
"Caution Regarding Non-IFRS Financial Measures".
[2] "big customers" are considered customers that produce an
average monthly revenue of more than US$100,000.
Logo -
https://mma.prnewswire.com/media/1039696/Zoomd_Logo.jpg
FOR FURTHER INFORMATION PLEASE CONTACT:
Company Media Contacts:
Amit
Bohensky
Chairman
Zoomd
ir@zoomd.com
Website: www.zoomd.com
Investor relations:
Lytham Partners, LLC
Ben Shamsian
New York | Phoenix
ZOMD@lythampartner.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/zoomd-delivered-a-fourth-consecutive-quarter-of-growth-in-both-revenue-and-adjusted-ebitda-achieving-an-adjusted-ebitda-increase-of-more-than-us5m-for-the-nine-months-ended-september-30-2021-compared-to-the-same-period-in-2020-301429909.html
SOURCE Zoomd Technologies Ltd.