Zedge, Inc. · AMEX:ZDGE
Zedge — Merger or Acquisition (April 2022)
14 slides from Zedge's merger presentation, Apr 13, 2022
Slide 1: Acquires GuruShots Investor Presentation
Acquires GuruShots Investor Presentation April 13, 2022 NYSE American: ZDGE
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains statements that are, or may be considered to be, forward - looking statements. All statements that are not historical facts are forward - looking statements and such forward - looking statements are statements made pursuant to the Safe Harbor Provisio
Slide 3: Transformational Transaction: Delivering Incremental Shareholder Value
TRANSFORMATIONAL TRANSACTION: DELIVERING INCREMENTAL SHAREHOLDER VALUE GuruShots aligns well with Zedge’s strategic goals and promises great potential for accelerating revenue growth 3 ✓ Assists Zedge in growing its ‘ Creator Economy’ and NFT offerings in Zedge Premium; ✓ Avails new content vertical
Slide 4: About Zedge
ABOUT ZEDGE is a global app publisher with a portfolio of leading digital consumer brands serving 44 million monthly active users Our portfolio consists of: ✓ Zedge Ringtones and Wallpapers , the leading mobile app dedicated to mobile phone personalization, social content and fandom art; ✓ Zedge Pre
Slide 5: GuruShots Fuses Photography and Mobile Gaming
GURUSHOTS FUSES PHOTOGRAPHY AND MOBILE GAMING 5 ✓ Gamification of amateur photography ✓ Anyone with a phone competes individually or with a team ✓ Progressive competitions with the ultimate goal of becoming a “Guru” ✓ Community features including leaderboards and chat ✓ Available on iOS, Android, an
Slide 6: GuruShots' Noteworthy Metrics
GURUSHOTS’ NOTEWORTHY METRICS >300 Monthly Competitions 6 >1M Photo Uploads Per Month >5B Monthly Votes 140M Photos in the Catalogue FREEMIUM MODEL $3.50 ARPMAU >$50 Avg. Paying Player Spend/Month 18%+ 6 Year CAGR Avg. Paying Player Spend/Month ENGAGEMENT KPI S
Slide 7: Strategic Benefits on a Standalone Basis
STRATEGIC BENEFITS ON A STANDALONE BASIS ✓ Expands our TAM, materially, by 30M - 40M amateur photographers per month ✓ Market penetration is low relative to TAM ✓ Diversifies portfolio with ‘Category Killer’ in photo contests ✓ Gamification expertise ✓ In - app purchases drive revenue expansion 7
Slide 8: Potential Synergies
8 POTENTIAL SYNERGIES MARKETING ✓ User acquisition ✓ Search engine optimization ✓ App Store optimization ✓ Localization ✓ Conversion and retention ZEDGE STRENGTH ‘CREATOR ECONOMY’ ✓ Expansion of Zedge Premium and ‘NFTs Made Easy’ ✓ Scales artist community with high quality photographers EXPERTISE ✓
Slide 9: Investment Summary
INVESTMENT SUMMARY* At Year Year Year ($Million) Closing 1 2 3 Total Purchase Price Cash $18.0 - - - $18.0 Max. Poten3al Earnouts** - $8.4 $8.4 - $16.8 Total Maximum Purchase Price $18.0 $8.4 $8.4 - $34.8 RetenCon Bonus Maximum Cash - $1.3 $1.3 $1.3 $4.0 Maximum Stock - $1.3 $1.3 $1.3 $4.0 Total Max
Slide 10: Mobile Gaming Market
MOBILE GAMING MARKET GAMING MARKET PLAYTIKA ACQUIRES REWORKS ZEDGE ACQUIRES GURUSHOTS ZEDGE PRE - ACQUISITION $272B TAM 2030 13.3X TTM Revenue At Closing 2.3X TTM Revenue At Closing 3.4X Revenue Mul3ple 2 Last 4 Quarters 7.1X EBITDA Mul3ple 2 Last 4 Quarters 11% 20X 4.4X +25 - 30% CAGR TTM Revenue T
Slide 11: GuruShots 2021 Selected Financial Data on a Standalone Basis
GURUSHOTS 2021 SELECTED FINANCIAL DATA ON A 11 STANDALONE BASIS* ✓ Revenue ~$8M ✓ Net Loss ~($1)M ✓ Targeting EBITDA positive in around two years * Unaudited
Slide 12: MoPub Ad Mediation Migration Update
MOPUB AD MEDIATION MIGRATION UPDATE 12 ✓ Mopub officially shut down on March 31st ✓ Zedge stress - tested alternatives ✓ Migrated to Applovin’s MAX Platform in late March ✓ Applovin paid Zedge a one - time $2M integration fee on April 1st ✓ Zedge resources back developing social and community featur
Slide 13: Summary: Game Changing Acquisition
SUMMARY: GAME CHANGING ACQUISITION GURUSHOTS ON A STANDALONE BASIS 13 ✓ Expected to accelerate Zedge’s overall revenue growth rate POTENTIAL SYNERGIES ✓ Materially increases number of artists for Zedge Premium ✓ Expands and materially increases content available for “NFTs Made Easy” ✓ Gamification o
Slide 14: Thank You!
THANK YOU! Jonathan Reich CEO jonathan.reich@zedge.net IR Contact: Brian Siegel, IRC, MBA Senior Managing Director, Hayden IR 346 - 396 - 8696 ir@zedge.net See us at the Sidoti Virtual MicroCap Conference May 11 - 12