Slide 1: Company Overview September 2023
Company Overview* September 2023 © 2023 Zedge, Inc. Confidential. * Unless otherwise noted, data used in this presentation relates to Q3 FY ’23
Slide 2: Forward-looking statements
© 2023 Zedge, Inc. Confidential. 2 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 Ha
Slide 3: Overview
© 2023 Zedge, Inc. Confidential. Overview Our ecosystem consists of (i) AI powered utilities that enable consumers to easily create great digital content; (ii) games that leverage this content for friendly and engaging competitions, and (iii) marketplaces to monetize this content p AI nt 3
Slide 4: Product Ecosystem
© 2023 Zedge, Inc. Confidential. Product Ecosystem GuruShots World’s leading photo game with 140M photos and 7.5M installs 4 Zedge Marketplace Marketplace for mobile phone personalization content with >30M MAU* Emojipedia #1 trusted search engine for all things emoji with 10M MAU
Slide 5: Investment Highlights
© 2023 Zedge, Inc. Confidential. utilities, games and marketplaces • Ongoing adjusted EBITDA * with $16M net cash • Proven excellence in monetizing massive global user base • Generative AI opens door to creators and potential exponential growth Investment • Creating flywheel connecting “the Creator
Slide 6: Why now is the time to Invest!
© 2023 Zedge, Inc. Confidential. 6 Why now is the time to Invest! ZDGE has never been better positioned to create sustainable , profitable, long - term growth from a market, product, tech, marketing and team perspective • We are doing AI, not talking about it • Untapped exposure to mobile gaming • T
Slide 7: Relevant comps and valuation
© 2023 Zedge, Inc. Confidential. Relevant comps and valuation 7 Shutterstock** Zedge** (NYSE: SSTK) Picsart* $27.5M $1.4B >$1B Equity Valuation $11.5M $1.4B N/A Enterprise Value ~0.4x 1.7x ~10x Revenue Multiple ~1.8x ~6.7x N/A EV/Adj. EBITDA Zedge’s Implied Valuation Range $42M - $280M * TechCrunch,
Slide 8: Our addressable market is massive and proven
© 2023 Zedge, Inc. Confidential. Our addressable market is massive and proven 8 Individuals create and share content online monthly >50 million Individuals identify as online content creators >2 million Individuals that support themselves primarily from their content >1 billion Market sizing*: • Gen
Slide 9: Major companywide initiatives
© 2023 Zedge, Inc. Confidential. Major companywide initiatives… FY ’23 Democratize Data Branding & Creatives Competitive Research Search Engine Optimization User Acquisition MarTech & Operations Analytics & Reporting Messaging & Reengagement Social Media App Store Optimization Content Marketing Full
Slide 10: The Zedge Marketplace
© 2023 Zedge, Inc. Confidential. The Zedge Marketplace is the leading source of mobile phone personalization content Business Model Advertising Subscriptions In - App Purchases General 609M Total installs >30M MAU pAInt: Generative AI Wallpaper Maker User Generated Content & Zedge Premium Product Hi
Slide 11: Zedge Marketplace: Key growth initiatives
© 2023 Zedge, Inc. Confidential. Zedge Marketplace: Key growth initiatives Other iOS: Subs, new Pricing content & ratings experimentation Dedicated AI app in H2 FY ‘24 App Global rollout of pAInt Gamification & engagement Search & discovery Web pAInt to Web Website overhaul Print on Demand 11
Slide 12: GuruShots: A leading, global, photo competition game
© 2023 Zedge, Inc. Confidential. Product Highlights Casual game genre Single player or team dynamic General 30 - 40M TAM 140M Photos in Catalogue Business Model Freemium with In - App Purchases Evolving game economy with advertising and coins GuruShots: A leading, global, photo competition game 12
Slide 13: GuruShots: Gameplay
© 2023 Zedge, Inc. Confidential. GuruShots: Gameplay Galleries Battles Hybrid casual Monetization Dynamic offers Coins Advertising Other Ratings Social mechanics UI overhaul Key growth initiatives 13
Slide 14: Emojipedia: #1 trusted source for all things emoji
© 2023 Zedge, Inc. Confidential. Trialing merch sales Business Model Programmatic advertising Launching paid subscriptions * Bangla, Chinese, Danish, Dutch, English, French, German, Hindi, Italian, Japanese, Korean, Malay, Marathi, Norwegian, Portuguese, Spanish, Swedish, Tamil, and Telugu Product H
Slide 15: Emojipedia: Key growth initiatives
© 2023 Zedge, Inc. Confidential. User accounts Other Emoji Translate Website optimizations New Content Emoticons Kaoimojis General Print on Demand Emoji Games Mash Ups Emojipedia: Key growth initiatives 15
Slide 16: AI Art Master: Hybrid Casual Gen AI game
© 2023 Zedge, Inc. Confidential. AI Art Master: Hybrid Casual Gen AI game • Gen AI creation tool • 1v1 voting dynamic with • Audio and haptics • Meta game • Coin based economy • Multiple monetization opportunities 16
Slide 17: The flywheel: The 'C's
© 2023 Zedge, Inc. Confidential. The flywheel: The 4 ‘C’s Marketing Games draw creators into a wide community with fun and friendly competitions COMPETITION AI enables all users to easily become creators CREATION Social features enable creators to share, connect, and compete in meaningful ways COMMU
Slide 18: Management team
© 2023 Zedge, Inc. Confidential. 18 Jonathan Reich CEO, Zedge, Inc. Jonathan has been our CEO since August ‘20 and as our President since July ’11. He has also served as our CFO (’16 - ’20) and COO (’11 - ’20). From ’07 to ’14, Mr. Reich served as President of Fabrix Systems, Inc. and, from 1999 to
Slide 19: Zedge Inc. is backed by the Jonas family
© 2023 Zedge, Inc. Confidential. 19 Zedge Inc. is backed by the Jonas family IDT Corp (NYSE: IDT) founded by Howard Jonas and controlled by the Jonas family, spun off its controlling interest in Zedge in June 2016. The Jonas family remains a material Zedge shareholder and has a proven track record o
Slide 20: Why invest now?
© 2023 Zedge, Inc. Confidential. 20 Why invest now? • AI, gaming, & ‘Creator Economy’ • AI exposure backed up with real business • Mobile gaming opportunity • Massive customer base • Valuation • Adjusted EBITDA positive • Buyback strategy
Slide 21: Contact
© 2023 Zedge, Inc. Confidential. 21 Zedge Inc. Company contact: Jonathan Reich, CEO jonathan.reich@zedge.net Investor relations contact: Brian Siegel (346) 396 - 8696 brian@haydenir.com (NYSE American: ZDGE)
Slide 22: Adjusted EBITDA reconciliation
© 2023 Zedge, Inc. Confidential. Adjusted EBITDA* 22 YTD FY 2023 FY 2022 FY 2021 Q3 ‘23 Q2 ‘23 Q1 ‘23 Q4 ‘22 Q3 ‘22 Q2 ‘22 Q1 ‘22 Reconciliation of Adjusted EBITDA to Net (Loss)/Income (in $Million) ($6.3) ($0.2) ($0.7) $2.5 $9.7 ($0.0) $1.9 $2.0 $8.2 ($0.0) ($0.2) $1.3 ($7.7) ($0.1) ($0.7) $0.9 $1.