Q1 2026 Zoomd Technologies Ltd Earnings Call

May 28, 2026

Speaker #1: Hey, and welcome to the Zoomed Technologies First Quarter Fiscal Year 2026 financial results conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0.

Operator: Welcome to the Zoomd Technologies Q1 fiscal year 2026 Financial Results Conference Call. I would like to turn the conference over to Ben Shamsian from Investor Relations. Please go ahead.

Operator: Welcome to the Zoomd Technologies Q1 Fiscal Year 2026 Financial Results Conference Call. I would like to turn the conference over to Ben Shamsian from Investor Relations. Please go ahead.

Speaker #1: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your touchtone phone.

Speaker #1: To withdraw your question, please press star, then 2. Please note this event is being recorded. I would like to turn the conference over to Ben Shamsian from Investor Relations.

Speaker #1: Please go ahead.

Speaker #2: Thank you. For joining us today for Zoom's First Quarter 2026 conference call. on with us on the call present representing company today is Amit Bohansky, Zoom's founder and chairman, and Svika Adler, Zoom's CFO, who's also available for questions.

Ben Shamsian: Thank you for joining us today for Zoomd's Q1 2026 conference call. With us on the call representing the company today is Amit Bohensky, Zoomd's founder and Chairman, and Tsvika Adler, Zoomd's CFO, who's also available for questions. At the conclusion of today's prepared remarks, we'll open the call to questions. Please note that follow the operator's instructions to ask questions at the end of the call. 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 subject to risks and uncertainties that could cause actual results to differ materially from those projected. The company undertakes no obligation to update these statements except as required by law.

Ben Shamsian: Thank you for joining us today for Zoomd's Q1 2026 Conference Call. With us on the call representing the company today is Amit Bohensky, Zoomd's founder and Chairman, and Tsvika Adler, Zoomd's CFO, who's also available for questions. At the conclusion of today's prepared remarks, we'll open the call to questions. Please note that follow the operator's instructions to ask questions at the end of the call. 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 subject to risks and uncertainties that could cause actual results to differ materially from those projected. The company undertakes no obligation to update these statements except as required by law.

Speaker #2: At the conclusion of today's prepared remarks, we'll open the call to questions. Please note that, follow the operator's instructions to ask questions at the end of the call.

Speaker #2: 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 subject to risks and uncertainties that could cause actual results to differ materially from those projected.

Speaker #2: And the company undertakes no obligation to update these statements except as required by law. Information about these risks and uncertainties is included in the company's filings, as well as periodic filings with regulators in Canada, and the United States, which you can find on Cedar and Zoom's website.

Ben Shamsian: 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 Zoomd's website. Today's discussion will include adjusted financial measures, which are non-IFRS measures. These should be considered as a supplement to and not a substitute for IFRS financial measures. Note that all figures on this call are presented in US dollars as are Zoomd's financial statements. Finally, today's event is being recorded and will be available for replay through the webcast information provided on the press release. With that said, let me now turn the call over to Amit Bohensky, Co-Founder and Chairman of Zoomd. Amit, please proceed.

Ben Shamsian: 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 Zoomd's website. Today's discussion will include adjusted financial measures, which are non-IFRS measures. These should be considered as a supplement to and not a substitute for IFRS financial measures. Note that all figures on this call are presented in US dollars as are Zoomd's financial statements. Finally, today's event is being recorded and will be available for replay through the webcast information provided on the press release. With that said, let me now turn the call over to Amit Bohensky, Founder and Chairman of Zoomd. Amit, please proceed.

Speaker #2: Today's discussion will include adjusted financial measures, which are non-IFRS measures. These should be considered as a supplement to and not a substitute for IFRS financial measures.

Speaker #2: Note that all figures on this call are presented in US dollars, as are Zoom's financial statements. Finally, today's event is being recorded and will be available for replay through the webcast information provided on the press release.

Speaker #2: With that said, let me now turn the call over to Amit Bohansky's founder and chairman of Zoom. Amit, please proceed.

Speaker #3: Thank you, Ben, and good morning to all of you. We are pleased to speak with you today regarding our first quarter 2026 results. As you know, we recently announced the launch of NCIB, under which we may purchase to a-up to approximately 10% of our public floats.

Amit Bohensky: Thank you, Ben Shamsian, and good morning to all of you. We are pleased to speak with you today regarding our Q1 2026 results. As you know, we recently announced the launch of NCIB, under which we may purchase up to approximately 10% of our public float. We believe the current market valuation of Zoom does not appropriately reflect the strength of our balance sheet, our long-term business prospects, and the strategic initiatives currently underway and the strategic position we continue to build in the market. With approximately $22.5 million in cash, no bank debt, and continued positive operating cash flow, we believe we are in a strong position to continue investing in growth initiatives while also executing on the capital allocation strategy. Importantly, the NCIB provides us with flexibility.

Amit Bohensky: Thank you, Ben, and good morning to all of you. We are pleased to speak with you today regarding our Q1 2026 results. As you know, we recently announced the launch of NCIB, under which we may purchase up to approximately 10% of our public float. We believe the current market valuation of Zoom does not appropriately reflect the strength of our balance sheet, our long-term business prospects, and the strategic initiatives currently underway and the strategic position we continue to build in the market. With approximately $22.5 million in cash, no bank debt, and continued positive operating cash flow, we believe we are in a strong position to continue investing in growth initiatives while also executing on the capital allocation strategy. Importantly, the NCIB provides us with flexibility.

Speaker #3: We believe the current market valuation of Zoom does not appreciately reflect the strength of our balance sheet, our long-term business prospects, and the strategic initiatives currently underway and the strategic position we continue to build in the market.

Speaker #3: With approximately 20, 22.5 million dollars in cash, no bank debt, and continued positive operating cash flow, we believe we are in a strong position to continue investing in growth initiatives while also executing on the capital allocation strategy.

Speaker #3: Importantly, the NCIB provides us with flexibility. We will remain disciplined and opportunistic in how we approach share repurchase while continuing to prioritize long-term value creation for our shareholders.

Amit Bohensky: We will remain disciplined and opportunistic in how we approach share repurchase while continuing to prioritize long-term value creation for our shareholders. As discussed previously, two major customers implemented changes to their operating models, reflecting ongoing adjustments in customer acquisition strategies and KPI measurement as part of a broader shift in digital marketing landscape. We continue to actively work with both clients following these changes, maintaining our position as a trusted partner, supporting their long-term growth objectives. With one of these clients, visibility regarding the timing and extent of the potential recovery remains limited. With the second customer, we are seeing growth and remain optimistic that anticipates the trend and will continue. We believe the current period reflects an ongoing transition in customer activity mix rather than a fundamental change in our long-term growth strategy. We also continue to expand and diversify our customer base.

Speaker #3: As discussed previously, two major customers implemented changes to their operating models, reflecting ongoing adjustments in customer acquisition strategies and KPI measurement as part of a broader shift in digital marketing landscape.

Speaker #3: We continue to actively work with both clients following these changes, maintaining our position as a trusted partner supporting their long-term growth objectives. With one of these clients' visibility regarding the timing and extent of the potential recovery remains limited.

Speaker #3: With the second customer, we are seeing growth and remain optimistic that anticipate the trend and will continue. We believe the current period reflects an ongoing transition in customer activity mix present than a fundamental change in our long-term growth strategy.

Speaker #3: We also continue to expand and diversify our customer base. During 2025, we extended our purchase across our presence across North America and Europe, adding more than 20 new clients ac-across the iGaming fintech and e-commerce verticals, including Silver Social and Fortibet.

Amit Bohensky: During 2025, we expanded our presence across North America and Europe, adding more than 20 new clients across the iGaming, fintech, and e-commerce verticals, including Silver Social and SportyBet. Based on the typical revenue ramp-up cycle, management expects these customers' wins to contribute more meaningfully during 2026. These customers on board continued approximately 30% of our company's revenues during the quarter, supporting the company's transition towards a broader and more diversified revenue profile. We believe these developments support the operation of a healthier, more diversified, and resilient long-term revenue base. As part of our growth strategy, we continue to advance strategic partnerships that should accelerate revenue growth alongside the collaboration with E2. We initiated an additional partnership during the year, currently in the POC stages, focused on expanding capabilities across a broader range of digital and multimedia distribution channels.

Speaker #3: Based on the typical revenue ramp-up cycle, management expects these customers' wins to contribute more meaningfully during 2026. These customers onboard continued approximately 30% of our company's revenues during the quarter, supporting the company's transition forward, a broader and more diversified revenue profile.

Speaker #3: We believe these developments support the operation of a healthier, more diversified, and resilient long-term revenue base. As part of our growth strategy, we continue to advance strategic partnerships that should accelerate revenue growth alongside the collaboration with E2.

Speaker #3: We initiated an additional partnership during the year currently in a POC stages focused on expanding capabilities across broader range of digital and multimedia distribution channels.

Speaker #3: We are expanding the resources dedicated to these initiatives, and we believe they will contribute over the coming quarter. During the quarter, we implemented a series of cost alignment me-measure designs to better align our cost structure with current activity levels.

Amit Bohensky: We are expanding the resources dedicated to this initiative, and we believe they will contribute over the coming quarters. During the quarter, we implemented a series of cost alignment measures designed to better align our cost structure with current activity levels. These measures included, among other actions, a reduction of approximately 20% of company's workforce across multiple departments, as well as additional expense reduction in operating expenses. These measures were primarily focused on operational efficiencies and are not expected to impact the company's continued investment in growth initiatives, business development, and technology capabilities. Now, I would like to turn to our product and service offering as it is important to investors to understand our competitive advantage and why clients are coming to us. Our competitive edge stems from our comprehensive 360-degree approach to digital performance with a mobile-first focus, all designed to help our clients achieve their goals.

Speaker #3: These measures included among other actions a reduction of approximately 20% of company's workforce across multiple departments as well as additional expense reduction in operating expenses.

Speaker #3: These measures were primarily focused on operational efficiencies, and are not expected to impact the company's continued investment in growth initiatives these developments and technology capabilities.

Speaker #3: Now, I would like to turn to our product and service offering as it is important to investors to understand our competitive advantage and why clients are coming to us.

Speaker #3: Our competitive edge stems from our comprehensive 360-degree approach to digital performance, with a mobile-first focus all designed to help our clients achieve their goals.

Speaker #3: We offer a wide range of 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's digital performance KPIs.

Amit Bohensky: We offer a wide range of solutions tailored to digital and mobile performance, enabling us to deliver a holistic suite of products and services that drive measurable results against our clients' digital performance KPIs. Zoomd utilizes a combination of research and development, acquisitions, and methodologies to improve its offering. One of the core strengths in our transparent, direct, and intensive client communication, unlike many of our industry peers, we don't operate through agencies. We work directly with our clients, engaging with the chief revenue officer side of the organization. The relationship positions us not only just as a vendor but also as a trusted advisor. The depth of this engagement fosters a long-term partnership, significantly reduces churn, and creates strong opportunities for revenue growth within our existing client base. This approach enables a real-time campaign management without delays and even while simultaneously handling multiple campaigns across various geographies.

Speaker #3: Zoom utilizes a combination of research and development acquisitions and methodologies to improve its offering. One of the core strengths in our transparent, direct, and intensive client communication unlike many of our industry peers we don't operate through agencies.

Speaker #3: We work directly with our clients and gauging with the chief revenue officer side of the organization. The relationship positions us not only just as a vendor but also as a trusted advisor.

Speaker #3: The depth of this engagement fosters a long-term partnership significantly reduced churn and creates strong opportunities for revenue growth within our existing client base. This approach enables a real-time campaign management without delays and even while simultaneously handling multiple campaigns across various geographies.

Speaker #3: This unique approach position us as a semi-human semi-automated command-and-control platform effectively combining advanced technology and strategic insights. We closely monitor and respond not only to shifts in clients' strategy but also to broader macroeconomic changes beyond the client's direct control.

Amit Bohensky: This unique approach positions us as a semi-human, semi-automated command and control platform, effectively combining advanced technology and strategic insight. We closely monitor and respond not only to shifts in clients' strategy but also to broader macroeconomic changes beyond the client's direct control. As a result, we empower our clients to swiftly adapt to market fluctuations, maximizing their impact and driving significant customers globally. Our main platform is integrated into hundreds of media sources, allowing us to promote customers' digital assets on multiple channels under our one system. We use a DSP for programmatic media buying. The DSP is integrated into biggest mobile media exchanges, providing our customers with full range and research for their mobile web and app performance needs. We optimize the advertisers' resources and maximize their advertising budget and efficiency. There is no dependency on any specific media supplier or traffic channel.

Speaker #3: As a result, we empower our clients to swiftly adapt market fluctuations maximizing their impact and driving significant customers globally. Our main platform is integrated into hundreds of media sources allowing us to promote customers' digital assets on multiple channels under our one system.

Speaker #3: We use a DSP for a programmatic media bind. The DSP is integrated into the biggest mobile media exchanges providing our customers with full range and research for their mobile web and app performance needs.

Speaker #3: We optimized the advertiser's resources and maximized their advertising budget and efficiency. There is no dependency on any specific media supplier or traffic channel. This is not only saves the valuable time and resource for the advertised but also provides an enhanced clarity and controlled insight.

Amit Bohensky: This not only saves us valuable time and resource for the advertiser, but also provides an enhanced clarity and controlled insight. Beyond the walled gardens, such as Google and Meta, the open marketing landscape is fragmented. Zoomd enables advertisers to leverage a wide range of various types of media channels, from social programmatic, OEMs, SDK networks, and more. Their KPIs are achieved on all channels together as a mix. I will now review the Q1 2026 financial results in detail. Revenue. Revenues in Q1 2026 were $6.9 million, a 62% decrease from Q1 2025, reflecting the continued impact of operating model changes implemented by two major customers. Gross margin. Gross margin in Q1 2026 was 34% compared to 44% in Q1 2025, driven by changes in customer mix. Variations in gross margins across periods remain within our representative profitability range. Operating expenses.

Speaker #3: Beyond the walled gardens, such as Google and Meta, the open marketing landscape is fragmented. Zoom enables advertisers to leverage a wide range of various types of media channels from social programmatic OEMs, SDK networks, and more.

Speaker #3: Their KPIs are achieved on all channels together as a mix. I will now review the first quarter of 2026 financial results in detail. Revenue.

Speaker #3: Revenues in quarter one '26 were $6.9 million. A 62% decrease from Q1 '25 reflecting the continued impact of operating model changes implemented by two major customers.

Speaker #3: Gross margin. Gross margin in Q1 '26 was 34% compared to 44% in Q1 '25 driven by changes in customer mix. Variations in gross margins across periods remain within our representative profitability range.

Speaker #3: Operating expenses. Total operating expenses for quarter one '26 were $3 million. A 6% decline compared to Q1 '25. During the quarter, we implemented cost optimization measures designed to better align our cost structure with current activity levels.

Amit Bohensky: Total operating expenses for Q1 2026 were $3 million, a 6% decline compared to Q1 2025. During the quarter, we implemented cost optimization measures designed to better align our cost structure with current activity levels. These actions included reduction of approximately 20% of the company workspace, alongside additional expense reduction initiatives. As many of these actions were implemented during the quarter, most of the expected savings are anticipated to be reflected in the beginning of Q2 2026. These actions were primarily focused on efficiency improvements and are not expected to impact to any of the company continued investments in growth initiatives, business development, and technology capabilities. Adjusted EBITDA. Adjusted EBITDA is used as a primary performance measure for the company's management to ensure it has the right structure to support future growth. We define adjusted EBITDA as an earning before interest, tax, depreciation, and one-time payments, and amortization.

Speaker #3: This actions included reduction of approximately 20% of the company workspace alongside additional expense reduction initiatives as many of these actions were implemented during the quarter most of the expected savings are anticipated to be reflected in the beginning of Q2 '26 and these actions were primarily focused on efficiency improvements and are not expected to impact any of the company's continued investments in growth initiatives, business development, and technology capabilities.

Speaker #3: Adjusted EBITDA. Adjusted EBITDA is used as a primary performance measure for the company's management to ensure it has the right structure to support future growth.

Speaker #3: We define adjusted EBITDA as an earning before interest tax depreciation and one-time payments and amortization. As adjusted, for share-based payments and non-recurring operating expenses.

Amit Bohensky: As adjusted for share-based payments and non-recurring operating expenses. Adjusted EBITDA in Q1 2026 was -$300,000 compared to $5.2 million in Q1 2025, primarily reflecting lower revenues. A full reconciliation of the adjusted EBITDA is available in our MD&A filing. Net income. Net loss for Q1 2026 was $0.5 million, compared to the net income of $4.8 million in Q1 2025, in line with the factors explained above. Cash position and cash flow. Cash flow from operations was $0.6 million in Q1 2026. As of 31 March 2026, the company had a cash balance of $22.5 million and no bank debt. Before we move to the Q&A, I would like to thank all our employees for their hard work and dedication as well as our investors for their continued support. I want also to thank you for joining us today for your continued interest in Zoomd.

Speaker #3: Adjusted EBITDA in Q1 '26 was -300,000 compared to 5.2 million in Q1 '25 primarily reflecting lower revenues a full reconciliation of the adjusted EBITDA is available in our MD&A filing.

Speaker #3: Net income. Net loss for Q1 '26 was 0.5 million compared to the net income of 4.8 million in Q1 '25 in line with the factors explained above.

Speaker #3: Cash position and cash flow. Cash flow from operations was 0.6 million in Q1 '26 as of March 31, '26. The company had a cash balance of 22.5 million and no bank debt.

Speaker #3: Before we move to the Q&A, I would like to thank all our employees for the hard work and the dedication. As well, as our investors for their continued support, I want also to thank you for joining us today for your continued interest in Zoom.

Speaker #3: Before we conclude, I'd like to say that we are that you are already in some of you are already in direct contact with me, but I am always available.

Amit Bohensky: Before we conclude, I like to say that some of you are already in direct contact with me, but I am always available. Please feel free to reach out directly over email or WhatsApp at any time. Thank you again for your time, your support, and your continued trust with us.

Speaker #3: Please feel free to reach out directly over email or WhatsApp at any time. Thank you again for your time, your support, and your continued trust with us.

Speaker #2: Thank you. We will now begin the question-and-answer session. To ask a to ask a question, you may press star, then one on your touchstone phone.

Operator: Thank you. We will now begin the question and answer session. The first question comes from Martin Toner from ATB. Please go ahead.

Speaker #2: If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then two.

Speaker #2: The first question comes from Martin Toner from ATB. Please go ahead.

Speaker #3: Can you raise your voice?

Speaker #4: Yeah. Hold on one sec. apologies. thank you very much for taking my question. Amit, can you comment on the status of the customer's, whose relationship, has been disrupted?

Amit Bohensky: Can you raise your voice?

Martin Toner: Yeah, hold on one sec. Apologies. Thank you very much for taking my question. Amit, can you comment on the status of the customers whose relationship has been disrupted? What progress have you made to restart them, and do you have any timelines for when that'll happen and when they can return to their previous revenue levels?

Speaker #4: what progress have you made to restart them? And do you have any timelines for when that'll happen and when they can return to their previous revenue levels?

Speaker #3: So we have actually two main clients that made those shifts actually in their measurements. Those clients are active with us and are still, we are serving for them as trusted advisors.

Amit Bohensky: We have actually two main clients that made those shifts actually in their measurement. Those clients are active with us and we are serving for them as trusted advisors. They already allocated the changes they needed to do, and one of those clients already started, gradually, to increase revenues with us. In fact, we are very optimistic with the work with that client. We can't share more information, but it will be reflected in the next coming quarters regarding that client. For the second client, visibility is still limited as we can't know yet the speed that they will come back, but we are working with that client, to working that processes. We believe it will take not more than couple of quarters till we grow with them to the expected level.

Speaker #3: they already allocated the changes they needed to do. And one of those clients already started, gradually to increase revenues with us, and in, in fact, we are very optimistic with the work with that client.

Speaker #3: we can share more information that it will be reflected in the next coming quarters regarding that client. For the second client, visibility is still limited as, we can't know yet, the speed that they will come back.

Speaker #3: but we are working with that client, to working that processes. we believe it will take not more than a couple of quarters. t-till we grow with them to the expected, level.

Speaker #4: A-and by grow, do you mean grow from previous levels or, return, return or get close to previous levels?

Martin Toner: By grow, do you mean grow from previous levels or return or get close to previous levels?

Speaker #3: we can't share that information as there are even more developments with them on additional business models that we are working with them as part of our services.

Amit Bohensky: We can't share that information, as there are even more developments with them on additional business models that we are working with them as part of our services. If we sell for them in one specific model, we are now asked to help them in some other application acquisitions and other type of marketing processes as well. We can't tell if it will be the same size, higher size, but there's no doubt that it looks good, and it will be reflected soon.

Speaker #3: If we observe for them in one specific model, we are now asked to help them in some other s application, acquisitions and other type of marketing processes as well.

Speaker #3: So we can't tell you if it will be the same size, higher size, but there's no doubt that it, it looks good and it will be reflected soon.

Speaker #4: Awesome. Thank you. can you, talk a little about the World Cup? does the status of these customers affect the potential for you guys to, do some revenue during, during World Cup?

Martin Toner: Awesome. Thank you. Can you talk a little about the World Cup? Does the status of these customers affect the potential for you guys to do some revenue during World Cup? Just talk a little bit about the potential for that, even for your revenue.

Speaker #4: And, and just talk a little bit about the potential for that event for your revenue.

Speaker #3: So for the sake of, World Cup, we did several relevant partnerships with different, sports betting and other type of service providers, that are, heavily different applications that we are promoting for them.

Amit Bohensky: For the sake of World Cup, we did several relevant partnerships with different sports betting and other type of sell providers that are having different applications that we are promoting for them. World Cup reflection will be somewhere between Q3 and Q4. It's always with a delay from the moment there is any type of payment, and we are expecting to enjoy from that.

Speaker #3: the World Cup, a reflection will be somewhere between Q3 and Q4. It's always with a delay from the moment there is any type of payment.

Speaker #3: and we are, expecting, to enjoy some of that.

Speaker #4: Awesome. That's great. Thanks. talk a little bit about, some of your new customers. How long do you think it will take for them to ramp to significant levels?

Martin Toner: Awesome. That's great. Thanks. Talk a little bit about some of your new customers. How long do you think it will take for them to ramp to significant levels? I'm thinking of similar to levels of some of your other most important clients, say, like a $1 million annual revenue run rate. How long does it take to get a new customer to that level of revenue?

Speaker #4: And I'm thinking of, like, similar to levels, of some of your other m-most important clients like, say, like a million dollars, annual revenue run rate.

Speaker #4: How long does it take to get a new customer to that level of, revenue?

Speaker #3: So, first of all, we continue to see healthy activity in the pipeline across, multiple verticals and geographies. similar to what we saw during to 2025.

Amit Bohensky: First of all, we continue to see healthy activity in the pipeline across multiple verticals and geographies. Similar to what we saw during 2025. We do see a lot of opportunities across segments such as e-commerce, entertainment, crypto, and fintech, alongside continued expansions into additional geographies. As always, pipeline takes a couple of months from a client till we see substantial revenues, but a client that spends about $1 million, from the moment that it starts with us, will take roughly about 10 months to a year till a client like that becomes significant.

Speaker #3: We, we, we do see a lot of opportunities across segments such as e-commerce and entertainment and crypto and fintech. alongside continued expansions into additional geographies.

Speaker #3: as always, pipeline, takes a couple of months from a client till we see substantial revenues, but a client that spends about a million is from the moment that it starts with us will take roughly about 10 months to a year.

Speaker #3: Till a client like that becomes significant.

Speaker #4: perfect. That helps a lot. okay. can you talk about so, like, with your workforce reductions, would you be profitable at the current revenue level?

Martin Toner: Perfect. That helps a lot. Okay. Can you talk about with your workforce reductions, would you be profitable at the current revenue level? Q1's revenue level?

Speaker #4: Like, Q1's revenue level?

Speaker #3: Speaker will take this answer. So those reductions won't impact our growth. The measures which were taken are mainly focused on improving, efficiency and adjusting the, the cost structure to current activity level.

Tsvika Adler: Tzvika will take this answer. Those reductions won't impact our growth. The measures which were taken are mainly focused on improving efficiency and adjusting the cost structure to current activity levels. The workforce reduction was done across multiple departments as part of the broader efficiency process. We didn't reduce expenses related to tech, biz dev, or growth. It will take a quarter or two till we will see the fully influences of those numbers on the bottom line together with our growth.

Amit Bohensky: Tzvika will take this answer.

Tsvika Adler: Those reductions won't impact our growth. The measures which were taken are mainly focused on improving efficiency and adjusting the cost structure to current activity levels. The workforce reduction was done across multiple departments as part of the broader efficiency process. We didn't reduce expenses related to tech, biz dev, or growth. It will take a quarter or two till we will see the fully influences of those numbers on the bottom line together with our growth.

Speaker #3: The workforce reduction was done across multiple departments as part of the broader efficiency process. We didn't reduce expenses related to tech, BizDev, or growth.

Speaker #3: So it will take a, a quarter or two till we will see the, the fully influences of those number on the on the bottom line, together with our growth.

Speaker #4: And I'm guessing after the impact of that reduction, at, say, a 10 million quarterly run rate, revenue run rate, Zoomed will be profitable?

Martin Toner: I'm guessing after the impact of that reduction at, say, a $10 million quarterly revenue run rate, Zoomd will be profitable?

Speaker #3: At least if we're talking in terms of EBITDA, we are in a negative EBITDA of 300, thousand dollars. If our, gross margin is something around 30, 35 percent, it means that in extra one million of revenues, we are break even.

Tsvika Adler: Yeah, listen, if we're talking in terms of EBITDA, we are in a negative EBITDA of $300,000. If our gross margin is something around 30%-35%, it means that in extra $1 million of revenues, we are break-even. You can make the calculation. It's not a big guess.

Speaker #3: So you can make the calculation. It's not a big guess. And. if we're looking or the new customers that just joined, which Amit were talking about them, we are, we are optimistic.

Martin Toner: Perfect.

Tsvika Adler: If we're looking at the new customers that just joined, which Amit was talking about them, we're optimistic.

Speaker #4: That's great. Last one for me. what level what amount of cash are you guys comfortable? having on the balance sheet? Just kind of wondering how much of the how much of the buyback you guys wa are comfortable with.

Martin Toner: Okay, last one for me. What amount of cash are you guys comfortable having on the balance sheet? Just kind of wondering how much of the buyback you guys are comfortable with.

Speaker #3: Our yeah. So our run rate, without any revenues, just the burn is something around almost one million dollar per Q. As we saw with minimal, revenues, with a minimal growth of the current revenues, we are break even.

Tsvika Adler: Yeah. Our run rate without any revenues, just the burn, is something around almost $1 million per Q. As we saw with minimal revenues, with the minimal growth of the current revenues, we are break even. We feel really comfortable with our cash balance at the date since we have more than $20 million that are held in a short-term deposit. We have also a credit line from the bank of $3 million that we're not using, but it's open credit line. We feel really comfortable with our current balances.

Speaker #3: We feel really comfortable with our cash balance at the date since we have more than 20 million dollars that are ha are held in a short-term deposits.

Speaker #3: We have also a credit line from the bank of three million that we're not using it, but it's open credit line. So we feel really comfortable with our, current balances.

Speaker #4: Super. That's it for me. Thank you for taking my questions.

Speaker #3: Thanks, Martin.

Speaker #4: Thank you very much.

Speaker #2: If you have a question, please press star one. I can turn the call back over to Ben f-for additional questions, please. Thank you.

Martin Toner: Super. That's it for me. Thank you for taking my questions.

Amit Bohensky: Thanks, Martin. Thank you very much.

Tsvika Adler: Thanks, Martin.

Amit Bohensky: Thank you very much.

Operator: If you have a question, please press star one. I can turn the call back over to Ben for additional questions, please. Thank you.

Speaker #5: Thank you. We have some additional questions that were sent to us via the webcast. Amit, at what pace do you expect the new customers to ramp going forward?

Ben Shamsian: Thank you. We have some additional questions that were sent to us via the webcast. Amit, at what pace do you expect the new customers to ramp going forward?

Speaker #3: Typically, it takes one or two quarters for a new c for new customers to move through onboarding. Optimization into more meaningful scaling, depend depends on the environment.

Amit Bohensky: Typically, it takes one or two quarters for new customers to move through onboarding, optimization into more meaningful scaling. The pace can vary depending on verticals and geos and KPIs, different industries and different countries, and also depends on customer maturity. We generally prefer to stable and control scaling rather than pushing aggressive growth too early. It takes usually about two quarters.

Speaker #3: Depending on the verticals and geos and KPIs, different countries, and also depend on customer maturity. We generally prefer to stable and controlled scaling rather than pushing aggressive growth, too early.

Speaker #3: But it takes usually about two quarters.

Speaker #5: Okay. Thank you. we have another question, regarding customers. what is the pipeline of new customers look like? And can you provide some specificity there?

Ben Shamsian: Okay. Thank you. We have another question regarding customers. What does the pipeline of new customers look like, and can you provide some specificity there?

Speaker #3: so we continue to see, expansion in the pipeline across m-multiple, verticals. in different categories as e-commerce and then in, entertainment, crypto, fintech, those categories are growing and we could feel that.

Amit Bohensky: We continue to see expansion in the pipeline across multiple verticals in different categories of e-commerce and in entertainment, crypto, fintech. Those categories are growing, and we could feel that also within those categories in different new geos that are opening. As always, pipeline and conversation timing can vary, but we continue to onboard new customers and expanding existing partnerships. It looks good.

Speaker #3: Also, within those categories in different new geos that are opening, as always, pipeline, conversation, timing can, can vary. But we continue to onboard new customers and expanding existing partnerships.

Speaker #3: it looks good.

Speaker #5: Hey. Thank you. operator, I don't think we have any more questions.

Speaker #2: Thank you. This concludes our question and answer session. I would like to turn our conference back over to Amit Polanski for a closing remarks.

Ben Shamsian: Okay. Thank you. Operator, I don't think we have any more questions.

Operator: Thank you. This concludes our question and answer session. I would like to turn the conference back over to Amit Bohensky for closing remarks.

Speaker #3: Thank you. All for joining us today for con for your continued interest in Zoomed. I'd like to say that many of you are already in direct touch with me and for everyone else, please feel free to reach out, whether by email or WhatsApp.

Amit Bohensky: Thank you all for joining us today, for your continued interest in Zoomd. I'd like to say that many of you are already in direct touch with me, and for everyone else, please feel free to reach out, whether by email or WhatsApp. Thank you again for your time, your support, and your continued trust in us.

Speaker #3: Thank you again for your time, your support, and your continued trust in us.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.