Major earnings beat. CEO discussed acquisitions this year on the quarterly call. My number #1 question is how much money can a company really make selling ringtones and phone backgrounds? I don't quite understand their business model yet.
Comment:
Prospectus quotes: "Our Zedge app is powered by a scalable distributed platform that is comprised of both open source and proprietary technologies centered on content management and discovery, web and app development, data mining and analytics, deep learning, mobile content/device compatibility, advertising and reporting. We have built a robust platform that allows us to ideate, test, and launch where warranted by the outcome and we have embraced machine learning throughout our technology stack in order to improve content recommendations and relevancy. From an end user’s perspective, our Zedge app’s platform minimizes response latency while maximizing content relevancy and discoverability. We optimize our platform by utilizing systems, algorithms and heuristics that organize our Zedge app’s content based upon real user data and that renders the content in a relevant fashion. Our infrastructure provides a fully redundant production environment in a cloud-hosted, virtual-server environment."
Comment:
"In December 2006, IDT Corporation acquired 90% of Zedge. . . .In 2016, IDT Corporation spun off our stock to its stockholders, and our Class B Common Stock was listed on the NYSE American with the ticker symbol 'ZDGE'."
Comment:
"In December 2019, we completed the beta launch of ‘Shortz’, our new entertainment app offering serialized, short-form fiction delivered in a text-message format across both Android and iOS, focusing on users in the United States, the United Kingdom and Canada and it is now available globally."
A link to their App on the google store : play.google.com...re/apps/details?id=net.zed...
A link to their App on the google store : play.google.com...re/apps/details?id=net.zed...
Comment:
The Zedge app looks more interesting "The app also affords creators, artists, brands, and influencers with a self-serve marketplace where they can sell their content."
Comment:
Our vision calls for utilizing our Zedge app’s digital publishing platform to not only continue being one of the world’s leading mobile personalization content apps but to also use this platform to publish new stand-alone apps that extend our value proposition in entertainment. We have engineered the platform to support an array of digital content enabling us to launch new apps with relative ease and speed. We want to capitalize on our Zedge app’s existing large install base as well as organic search traffic across the web and in the app stores as a low-cost user acquisition channel for these new entertainment apps. Our goal is to ensure that these new apps are equally valuable and viable across both Android and iOS.
If we execute our vision, we would build a network of apps which can be used for cross-promotional purposes. We identified the entertainment market as our focal point for new apps because we believe that apps in that market:
● generally overlap well with the demographic of our Zedge app’s existing customer base;
● enjoy a higher frequency of use when compared to our Zedge app enabling the potential for both a subscription and ad-based monetization model; and
● allow for us to attract new users who may not be interested in our Zedge app’s personalization content."
If we execute our vision, we would build a network of apps which can be used for cross-promotional purposes. We identified the entertainment market as our focal point for new apps because we believe that apps in that market:
● generally overlap well with the demographic of our Zedge app’s existing customer base;
● enjoy a higher frequency of use when compared to our Zedge app enabling the potential for both a subscription and ad-based monetization model; and
● allow for us to attract new users who may not be interested in our Zedge app’s personalization content."