Q3 2025 Zoomd Technologies Ltd Earnings Call
Joining us Tonight for Zunes third quarter, 2025 update conference call with us on the call representing the company today is Amit Polanski zooms founder and chairman at the conclusion of today's prepared remarks, we will answer some questions that were sent to us by investors. Another question as we think are relevant to investors.
Before we begin with prepared remarks, just a couple of comments today's call will contain forward looking statements that are based on current assumptions and are subject to risks uncertainties that could cause actual results to differ materially from those projected the company undertakes no obligation.
These statements except as required by law information about these risks and uncertainties are included in the company's filings as well as periodic filings with regulators in Canada, and the United States, which you can find on SEDAR and zooms website. Today's discussion will include adjusted.
The financial measures, which are non <unk> measures. These should be considered as a supplement to and not a substitute for <unk> financial measures noted that all figures on this call are noted in U S dollars and our zoom spun as our newsrooms financial statements finally today.
This event is being recorded and will be available for replay.
Through the webcast information provided in the press release.
With that said, let me now turn the call over to Amit for Henske founder and chairman of soon.
Please proceed.
Thank you Ben and good.
Good morning to all of you.
We're pleased to speak with you today regarding our third quarter of 2025 results.
In Q3 exchange rate 25, the company reported a 3% decrease in revenues compared to Q3 2024.
But fundamentally due to the fact that most of the revenue from the Euro Cup tournament with recognized in Q3 of 2024.
Despite the revenue decline.
<unk> delivered strong financial results.
Higher profitability through disciplined cost management and enhanced operational efficiency.
What was achieved across all key operating metrics, including cash generation gross profit net income and adjusted EBITDA, notably operating income increased by 15% to $3 7 million for the <unk>.
Water.
Year to date, our install demonstrate meaningful progress on both the top and bottom line.
For the first nine months of 2025 revenue grew 37% and net income increased by 150%.
These gains reflect fundamental changes we've made in how we run the business and we are confident in our ability to build on the success.
Going forward on it.
Trailing 12 months basis, we generated $68 9 million.
Revenue $32 $5 million in gross profit and $17 7 million in net income.
We ended the third quarter of 2025 with $18 3 million.
In cash and no long term debt.
While our current cash position.
<unk> I'm told one way to support organic growth as well as pursuing more partnerships like the one we announced with <unk>. It also offers us flexibility to pursue strategic acquisitions that will further accelerate our expansion and we continue to evaluate opportunities.
Thus complement our core competency and it would be.
Strategically acoustics.
Our performance continues to deliver operational OE customers supporting strong client retention and driving new customer wins.
Revenues from clients outside of the company's top 10.
Customers doubled in Q3 dollars 25, compared with Q3 'twenty for.
As shown kissed a showcase of the significant airports undertaken to Avi obviate our customer concentration.
Although the past year, we added more than 10, new clients and based on the typical revenue ramp up time.
We expect to see the impact of these wins in 2026.
With 2026 also being a world Cup year.
We started to start the joys with some of our customers to secure budgets for the World Cup, which is the most viewed.
Boating events in the world.
Our differentiated focus on markets outside of the walled gardens is gaining traction and industrial recognition is growing.
On our second quarter call I noted our efforts to establish strategic partnerships to accelerate sales growth recent.
Recently, we announced the first of these a global agreement with <unk> to Quad.
What caused the route communications, a leading provider of digital marketing and technology solutions for the sports and bedding industry.
Elaboration.
It allows them to access E twos, coolant and future clients worldwide.
<unk> I think our client acquisition and revenue growth efforts.
We are working on securing additional agreements that will accelerate our revenue base.
Now I would like to focus.
On the three key areas of.
Our customers our product and service development and how we are adapting to the market trends I want to begin with our customer base.
We continue diversifying our customer base and focusing on growth sectors, such as E Commerce, I gaming Entertainment and transportation.
And consumer goods.
Total stable growth pattern and elevated profit margin.
We have deepened our activity with current customers as well as expanding to new customers.
Consequently, our revenues have experienced substantial growth there.
Vacation in sectors and geographies is important as we aim to manage strong revenue growth.
As we reported.
Almost 70% of our revenues come from top five customers as.
It's worth noting that each of our top clients operate across multiple countries with different kpis budgets and strategies. For example, we operate in more than 30 countries or one client.
And then for another.
Which expanded by 50% during 2025.
This helps reduce concentration risk and strengthens our overall foundation.
Now.
I would like to turn to our product and service offering.
Our competitive edge stem from our comprehensive 360 degree approach to the digital performance with a mobile first focus all designed to help our clients to achieve their goals.
We also had a wide range solutions tailored to digital and mobile performance, enabling us to deliver a holistic suite of products and services that drive measurable results against our client digital performance API.
Finally, zoomed utilizes a combination of research development acquisition and methodologies to improve its offerings.
One of our core strengths is our transparent direct and intensive client communication.
Unlike many of our industry peers, we do.
Don't operate so agencies, we work directly with our clients engaging with the chief revenue officer.
Of the organization.
If relationships position us not just as a vendor, but as a trusted advisor.
The depth of this engagement fosters long term partnership significantly reduces churn and creates strong opportunities for revenue growth.
In our existing client base.
This approach.
Real time campaign management is all delays, even while seeding stanislav handling multiple campaigns across various geographies.
This unique approach position us as a semi human semi automated command and control platforms effectively combining advanced technology and strategic insights.
We closely monitor and respond not only to the sheets in client strategy, but also broader macro economics changes beyond the clients direct control.
As a result, we empower our clients to swiftly adapt to market fluctuations.
I think the impact and driving significant outcomes globally.
Our main platform is integrated to hundreds of media resources, allowing us for more.
Customers did you sell assets in multiple channels under one system, we use the DSP for programmatic media bank the Dsp's integrated to the biggest mobile media exchanges.
Reviving our customers full range and reach for the mobile web and App performance needs.
We optimized the advertisers resources and maximize their advertising budget and efficiency.
There is no dependency on any specific media supplier or traffic channel.
This not only sales valuable time and resources for advertisers, but also provides enhanced clarity and consolidated in place.
Additionally, our platform and products are designed for user friendly operation eliminating the need for a software development kit SDK implementation.
In our perspective position and crucial layout within the ecosystem. The company stands strong, beating the industry beyond the walled gardens, Google meta and et cetera.
The marketing landscape is very fragmented.
Soon to enable advertisers.
We leverage a wide range in various types of media channels from social to programmatic Oems SDK network and more than Kpis are achieved on all channels together.
The mix.
Before I go through the financial results I want to update that in line with the recent changes in the marketing space two of our largest customers are making adaptation to the acquisition model and goals.
We are working closely with them on adopting the kpis and measurement models to align with the new objectives.
Such transitions.
And part of our business.
And based on our experience.
Activity typically scales back up.
Within a few months.
While these changes may temporarily impact near term activity. They also establish a foundation for stronger.
For stronger long term collaboration.
Transitions like it is similar to other pre the older shifts in our operating environment do not reflect on our quality of service we provide.
Our diverse customer base expense multiple second dose and reagents, so laser new cycles may occasionally be influenced by external factors.
As seasonality.
Co economic strengths.
<unk> budgets as infusion.
August and ultimate rationale in internal changes on the client side.
And in the case now.
We have successfully done so.
In the past, we continue to focus on maintaining a resilient flexible operational foundation that enable us to navigate these fluctuations effectively.
While preserving the long term profitability and strong client relationships.
Financial results.
Now I will review the third quarter of 24 2025 financial results in details.
Revenue.
Revenue in Q3 25.
Well.
$16 5 million.
3%, a decrease of $16 7 million in Q3 of 'twenty, Paul, but preliminarily, reflecting a one time revenue benefit in the prior year period from the Euro Cup tournament.
Gross margin.
Gross margin in Q3, 25 was 42, 6% a 332 basis points increase compared to Q3 of 24. This improvement was driven by the continued operational efficiencies.
Operating expenses.
Total operating expenses for Q3 of 25 or $3 2 million.
A 5% decline compared to Q3 'twenty four despite the 3% year over year decline in sales operating margin expanded to 366 bytes by basis points reflective, reflecting strong gross margin and disciplined cost control.
Yeah.
Adjusted EBITDA.
Adjusted EBITDA is used as the primary performance measure by the company's management to ensure it has the right structure to support future growth.
We define adjusted EBITDA as earnings before interest.
Tax depreciation one time payments and amortization.
Adjusted for share based payments and nonrecurring operating expenses adjusted EBITDA was $4 million in Q3 of 25.
Three 3% increase compared to Q3 of 2004.
A full reconciliation of adjusted EBITDA is available is available in our MD&A filed.
Net income.
Net income was $3.8 million.
A 20% increase compared to Q3 of 'twenty four.
Cash.
Cash flow from operation reached a record.
$5.4 million in Q3 25 as.
As of September 32025.
A company as a cash balance of $18 3 million.
And no long term debt.
Before I move onto the questions I want to thank to all our employees for their hard work and dedication as well as our.
Investors, who support us I am always available to speak with investors and look forward to hearing your feedback and answering questions.
With that said I will and so some of our investors questions investors question and some questions that may be of interest to our investors.
Okay. Thank you Amit we have some questions for you.
Her name is marked by a highly volatile and complex global macroeconomic environment.
This.
Does not prevent appear likely to normalize in the near term.
Zoom navigating this situation.
Yeah. Good question, we are operating in a volatile environment.
We've been very focused on effective agile management.
It allows us to adapt quickly.
At the same time at the same time, we've maintained a lean cost structure and a strong operational backbone, while continuing to invest in market analysis customer management and R&D.
All of which support our competitive edge.
We always constantly work to improve our customer diversification.
Revenues from clients outside of our top 10 doubled doubled in Q3 compared to last year.
In addition.
We expanded our presence in North America, and Europe, and strengthen our position in sectors with stable demand and attractive margin such as E Commerce I gaming entertainment.
Rotation and consumer goods.
All of this.
<unk> to the higher profitability across key metrics catcher generation gross profit net income and adjusted EBITDA.
And this ties directly into our strategy going forward.
We operate in a dynamic evolving environment and management remains focused on the three core strategic initiatives.
One organic growth continuing to expand in a stable high margin verticals, while improving internal efficiency.
Through strategic partnerships.
These partnerships in high potential sectors aligning.
Allowing us to unlock new opportunities quickly and efficiently.
Andrey actively exploring M&A opportunities to accelerate growth deepen technological capabilities and broaden our customer base.
The combination of disciplined execution and clear strategic framework position us well.
Well to position us well to navigate market fluctuations will stay ready to capture opportunities as they arise.
Okay. Thank you we have another question.
More on the deal with E. Two.
When do you expect to see some meaningful revenues from this agreement and lice zoom, so attractive to companies such as Egypt.
As noted.
Oh, Thanks, just like this one of the three pillars of our strategic initiatives, we view partnerships as a means to accelerate penetration in geography.
Oh settles, we view as high quality revenue.
It took us time to identify the right partner and validate the feet.
Practical feasibility phase, where the combination of E twos industry expertise and the relationships, we assumed performance marketing capabilities.
Clear synergy.
Following the successful initial campaign the two companies expanded the collaboration into a formal strategic partnership.
No.
Now offering rooms, yoga acquisition services, which provide us exposure to Ballard of sports book operators and broader sports embedding clients worldwide.
Initial integration.
Underweight and border campaigns.
Rollout in the coming months.
We expect meaningful contribution already in 2026, which is also a world Cup year.
Total debt should boost demand in these segments.
So your question about zoom zoom this attractive to retool it comes down to the phone complementary between the companies.
Combining into deep domain expertise and assumes better.
User acquisition capabilities enables more efficient campaigns.
Oh can you potential and support growth with existing clients fully aligned with our focus on our high growth.
Okay. Thank you.
We have another question large players in digital advertising space have recently faced continued headwinds and volatility.
Against that backdrop can you say that momentum continues presume.
I get this question so many times.
It is very relevant questions when I talked about the momentum I'm not referring to a straight lined up well knowing what is happening around us in the broader market.
You are absolutely right.
That even very large players are dealing with pressure from <unk>.
Shifting ad budgets and platform changes to the macro uncertainties.
So as the momentum continues is about the fundamentals of how we are building the company. It is about focus.
Disciplined and adopted adopting adapt stability.
We do not control the market cycles, but we control how we respond to them our strategy.
He is specifically designed to remain flexible manage risk and adjust quickly as conditions evolve.
What gives me confidence is that we are not chasing a short term trends.
We are strengthening our core investing selectivity selectively and making the operational choices.
Fourth long term value creation.
There will be always volatility along the way.
That is the nature of this industry.
As long as we continue to execute with clarity and discipline I am.
I am very comfortable saying that the momentum continues in defense actually metals for long term shareholders.
Yeah.
One last point many of you already in direct touch with me although like.
Everyone else, please feel free to each child directly over email or what's up anytime.
Things related to do once again I want to thank everyone for your interest income.