8-K
Zedge, Inc. (ZDGE)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of theSecurities Exchange Act of 1934
Date of Report (Date of earliest event reported):December 13, 2023
Zedge, Inc.
(Exact name of registrant as specified in itscharter)
| Delaware | 1-37782 | 26-3199071 |
|---|---|---|
| (State or other jurisdictionofincorporation) | (Commission File Number) | (IRS EmployerIdentification No.) |
| 1178 Broadway**, Ste. 1450 (3^rd^ Floor)**<br><br> <br>New York, NY | 10001 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including
area code: (330) 577-3424
Not Applicable
(Former name or former address, if changedsince last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications pursuant<br>to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to<br>Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications<br>pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications<br>pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered |
|---|---|---|
| Class B common stock, par value $0.01 per share | ZDGE | NYSE American |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and FinancialCondition
On December 13, 2023, Zedge, Inc. (the “Registrant”) issued a press release announcing its results of operations for its fiscal quarter ended October, 31, 2023. A copy of the press release issued by the Registrant concerning the foregoing results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The Registrant is furnishing the information contained in this Report, including Exhibit 99.1, pursuant to Item 2.02 of Form 8-K promulgated by the Securities and Exchange Commission (the “SEC”). This information shall not be deemed to be “filed” with the SEC or incorporated by reference into any other filing with the SEC unless otherwise expressly stated in such filing. In addition, this Report and the press release contain statements intended as “forward-looking statements” that are subject to the cautionary statements about forward-looking statements set forth in the press release.
Item 9.01 Financial Statements and Exhibits.
| (d) | Exhibits. |
|---|---|
| Exhibit No. | Document |
| --- | --- |
| 99.1 | Earnings Release, dated December 13, 2023, reporting the results of operations for Zedge, Inc.’s fiscal quarter ended October 31, 2023. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ZEDGE, INC. | |
|---|---|
| By: | /s/ Jonathan Reich |
| Name: | Jonathan Reich |
| Title: | Chief Executive Officer |
Dated: December 13, 2023
2
EXHIBIT INDEX
| Exhibit No. | Document |
|---|---|
| 99.1 | Earnings Release, dated December 13, 2023, reporting the results of operations for Zedge, Inc.’s fiscal quarter ended October 31, 2023. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
3
Exhibit 99.1
Zedge Announces First Quarter Fiscal 2024 Results
New York, NY – December 13, 2023: Zedge, Inc. (NYSE AMERICAN: ZDGE), a leader in building digital marketplaces and friendly competitive games around content that people use to express themselves, today announced results for its first quarter fiscal 2024, ended October 31, 2023.
“Our first quarter financial results reflect the positive trends we discussed during the fourth quarter,” said Jonathan Reich, Zedge’s chief executive officer. “Zedge+, the Zedge Marketplace’s subscription offering, which returned to sequential active subscriber growth last quarter after six quarters of sequential declines, continued delivering net active subscriber gains in the first quarter. Furthermore, Zedge+ revenue was up by nearly 10% from last year, driven by the introduction of iOS subscriptions and continued interest in the overhauled Android offering. Emojipedia’s revenue was up 62% from last year and, combined with the Zedge Marketplace, drove double-digit ad revenue growth. These factors led to record ARPMAU*^1^* with 17% year-over-year growth.
“We are also making steady progress from a product and feature development perspective. We have completed the global rollout of pAInt, our generative AI wallpaper maker, and launched pAInt’s print-on-demand feature immediately before Thanksgiving. Additionally, we benefited from redesigning Emojipedia’s website, as its enhanced site performance yielded much faster load times and continued optimization of the advertising experience. We also rolled out the Battles feature to a limited number of GuruShots users to gain insights into how we can optimally integrate this feature into the Gurushots game. While these initiatives are all starting to show positive momentum, we plan to continue enhancing these features and products in 2024 to drive sustainable, longer-term growth.”
FirstQuarter Highlights (fiscal 2024 versus fiscal 2023)
| ● | Revenue increased 2.6% to $7.1 million; | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| ● | GAAP operating income of $0.3 million, compared<br>to an operating loss of ($0.2) million; | ||||||||
| ● | GAAP net loss and loss per share were nil<br>compared to ($0.2) million and ($0.01), respectively: | ||||||||
| ● | Adjusted EBITDA*^2^<br>increased by 60.8% to $1.5 million; | ||||||||
| ● | Zedge Premium Gross Transaction Value^1^*,<br>or GTV, increased 35.0% to $0.42 million. | ||||||||
| <br><br>First Quarter Select Financial Metrics: FY24 versus FY23*<br> <br> | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (in $M except for EPS) | Q124 | Q123 | Change | ||||||
| Total Revenue | $ | 7.1 | $ | 6.9 | 2.6 | % | |||
| Advertising Revenue | $ | 4.9 | $ | 4.5 | 10.0 | % | |||
| Digital goods and services | $ | 0.9 | $ | 1.3 | -29.0 | % | |||
| Subscription Revenue | $ | 1.0 | $ | 0.9 | 9.5 | % | |||
| Other Revenue | $ | 0.2 | $ | 0.2 | 17.6 | % | |||
| GAAP Operating Income (Loss) | $ | 0.3 | $ | (0.2 | ) | nm | |||
| Operating Margin | 4.5 | % | -2.9 | % | |||||
| GAAP Net Loss | $ | (0.0 | ) | $ | (0.2 | ) | 108.3 | % | |
| GAAP Diluted Loss Per Share | $ | (0.0 | ) | $ | (0.01 | ) | nm | ||
| Adjusted EBITDA | $ | 1.5 | $ | 1.0 | 60.8 | % | |||
| Cash Flow from Operations | $ | 1.3 | $ | 1.1 | 16.5 | % |
nm = not measurable/meaningful
| * | numbers may not add due to rounding |
|---|
Select Zedge Marketplace Metrics: FY24 versus FY23*^1^
| (in MM except for ARPMAU and where noted) | Q1 ’24 | Q1 ’23 | Change | ||||
|---|---|---|---|---|---|---|---|
| Total Installs - Cumulative | 625.3 | 583.0 | 7.3 | % | |||
| MAU | 28.5 | 31.9 | -10.7 | % | |||
| Well-developed Markets | 6.2 | 7.1 | -13.1 | % | |||
| Emerging Markets | 22.3 | 24.8 | -10.0 | % | |||
| Active Subscriptions (in 000s) | 648 | 674 | -3.8 | % | |||
| ARPMAU | $ | 0.063 | $ | 0.054 | 17.0 | % | |
| Zedge Premium - GTV | $ | 0.42 | $ | 0.31 | 35.0 | % | |
| * | numbers may not add due to rounding | ||||||
| --- | --- | ||||||
| ^1^ | We use the following business metrics in this releasebecause we believe they are useful in evaluating Zedge’s operational performance. | ||||||
| --- | --- | ||||||
| ● | Monthly active users, or MAU, capturesthe number of unique users that used our Zedge App during the previous 30-days of the relevant period, is useful for evaluating consumerengagement with our App, which correlates to advertising revenue as more users drive more ad impressions for sale. It also allows readersand potential advertisers to evaluate the size of our user base. | ||||||
| --- | --- | ||||||
| ● | Zedge Premium Gross Transaction Value, orGTV, is the total dollar amount of transactions conducted through the Zedge Premium Marketplace. As Zedge Premium is an internal focusfor growth, we believe this metric will help investors evaluate our progress in growing this part of our business. | ||||||
| ● | Average Revenue Per Monthly Active User forour Zedge App, or ARPMAU, is useful in evaluating how well we monetize our user base. | ||||||
| ● | An Active Subscription is a subscriptionthat has commenced and not been canceled, including paused subscriptions and subscriptions in free trials, grace periods, or account hold. | ||||||
| ● | Total Installs - Cumulative measures thecumulative number of times the Zedge App has been downloaded since inception. | ||||||
| ^2^ | Throughout this release, Adjusted EBITDA is a non-GAAPfinancial measure intended to provide useful information that supplements Zedge’s results in accordance with GAAP. Please referto the Reconciliation of Non-GAAP Financial Measure at the end of this release for an explanation of Zedge’s formulation of AdjustedEBITDA and reconciliations to the most directly comparable GAAP measure. | ||||||
| --- | --- |
2
Trended Financial Information*
| (in $M except for EPS, ARPMAU, Active Subscriptions) | Q123 | Q223 | Q323 | Q423 | Q124 | FY 2022 | FY 2023 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total Revenue | $ | 6.9 | $ | 7.0 | $ | 6.7 | $ | 6.6 | $ | 7.1 | $ | 26.5 | $ | 27.2 | |||||||
| Advertising Revenue | $ | 4.5 | $ | 4.6 | $ | 4.6 | $ | 4.6 | $ | 4.9 | $ | 20.3 | $ | 18.3 | |||||||
| Digital goods and services | $ | 1.3 | $ | 1.2 | $ | 1.1 | $ | 1.0 | $ | 0.9 | $ | 1.7 | $ | 4.6 | |||||||
| Subscription Revenue | $ | 0.9 | $ | 0.9 | $ | 0.8 | $ | 0.9 | $ | 1.0 | $ | 3.7 | $ | 3.5 | |||||||
| Other Revenue | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 0.8 | $ | 0.8 | |||||||
| GAAP Operating Income (Loss) | $ | (0.2 | ) | $ | 1.5 | $ | (8.4 | ) | $ | 0.2 | $ | 0.3 | $ | 11.8 | $ | (6.9 | ) | ||||
| GAAP Net Income (Loss) | $ | (0.2 | ) | $ | 1.6 | $ | (7.7 | ) | $ | 0.2 | $ | (0.0 | ) | $ | 9.7 | $ | (6.1 | ) | |||
| GAAP Diluted Earnings (Loss) Per Share | $ | (0.01 | ) | $ | 0.11 | $ | (0.55 | ) | $ | 0.01 | $ | (0.00 | ) | $ | 0.65 | $ | (0.44 | ) | |||
| Adjusted EBITDA | $ | 1.0 | $ | 1.4 | $ | 1.7 | $ | 1.6 | $ | 1.5 | $ | 12.4 | $ | 5.7 | |||||||
| Adjusted EBITDA Margin | 13.8 | % | 20.5 | % | 25.4 | % | 24.2 | % | 21.7 | % | 46.6 | % | 20.9 | % | |||||||
| Cash Flow from Operations | $ | 1.1 | $ | 0.0 | $ | 1.6 | $ | 0.4 | $ | 1.3 | $ | 11.5 | $ | 3.2 | |||||||
| MAU | 31.9 | 32.2 | 32.0 | 30.9 | 28.5 | nm | nm | ||||||||||||||
| Well-developed Markets | 7.1 | 7.4 | 7.2 | 6.8 | 6.2 | nm | nm | ||||||||||||||
| Emerging Markets | 24.8 | 24.8 | 24.8 | 24.1 | 22.3 | nm | nm | ||||||||||||||
| Active Subscriptions (in 000s) | 674 | 654 | 631 | 647 | 648 | nm | nm | ||||||||||||||
| ARPMAU | $ | 0.054 | $ | 0.052 | $ | 0.053 | $ | 0.055 | $ | 0.063 | nm | nm | |||||||||
| Zedge Premium – GTV | $ | 0.31 | $ | 0.44 | $ | 0.41 | $ | 0.38 | $ | 0.42 | $ | 1.51 | $ | 1.54 |
nm = not measurable/meaningful
| * | numbers may not add due to rounding |
|---|
Fiscal 2024 Commentary
Reich continued, “We continue to believe that we have never been better positioned to create sustainable, long-term and profitable growth, and we are excited about moving our growth strategy forward in fiscal 2024. Adding to this, our continued positive cash flow generation and the fact that we will not have to make any earnout payments to Gurushots’ sellers gave us the confidence to pay off the remaining principal on our term loan in mid-November, making us debt-free.
“As indicated during our last call, one of our goals for FY ’24 is to build out a full-stack marketing team to enable growth. To this end, we have already added several key hires, and we are already benefitting from their expertise as we continue to ramp up our paid user acquisition spending for the Zedge Marketplace. Of course, we closely monitor performance to ensure acceptable returns on our investment. As we previously said, this is an ongoing process where we continually test and optimize programs to drive higher returns through increasing engagement from existing users and new user growth.
“We’ve also been executing on our generative AI initiatives, with a global rollout of pAInt within the Zedge Marketplace, including the release of this feature on the web with print-on-demand capabilities. The initial results from the soft launch of AI Art Master, our hybrid casual game, are attractive, encouraging us to continue its development with a focus on improving onboarding, game mechanics and retention. In the coming months, we expect to expand the rollout by adding more countries and iterating based on what the KPIs tell us.
“November was Emojipedia’s best revenue month ever, and we will continue to make enhancements to this product, as we believe there is additional untapped upside. Starting with our second quarter, we are targeting releasing more features and enhancements, with many more initiatives still in development.
“Finally, Battles, the new GuruShots game mechanic, has also been rolled out to around 5% of its user base, and we expect to increase this number over the next several months. We believe this new feature will help draw new players to the game and help convert them into paying customers.”
3
Earnings Announcement and Supplemental Information
Management will host an earnings conference call beginning at 4:30 p.m. Eastern today to discuss its first-quarter fiscal 2024 results, outlook and strategy, which will be followed by a Q&A with investors.
Live Call-in Info:
Toll Free: 888-506-0062
International: 973-528-0011
Participant Access Code: 575696
Webcast URL: 1Q24 Earnings Webcast
Replay:
Toll Free: 877-481-4010
International: 919-882-2331
Replay Passcode: 49574
About Zedge
Zedge builds digital marketplaces and friendly competitive games around content people use to express themselves. Our leading products include Zedge Ringtones and Wallpapers, a freemium digital content marketplace offering mobile phone wallpapers, video wallpapers, ringtones, notification sounds, and pAInt, a generative AI wallpaper maker; GuruShots, a skill-based photo challenge game; and Emojipedia, the #1 trusted source for ‘all things emoji’. Our vision is to enable and connect creators who enjoy friendly competitions with a community of prospective consumers in order to drive commerce. In July 2023, we served approximately 40 million active users across our offerings. For more information, visit: investor.zedge.net
Forward-Looking Statements
All statements above that are not purely about historicalfacts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,”“plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statementswithin the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our currentjudgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statementsdue to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consultedalong with this release. To the extent permitted under applicable law, we assume no obligation to update any forward-looking statements.
Contact:
Brian Siegel, IRC, MBA
Senior Managing Director
Hayden IR
(346) 396-8696
ir@zedge.net
4
CONDENSED CONSOLIDATED BALANCESHEETS
(inthousands, except par value data)
| July 31, | |||||
|---|---|---|---|---|---|
| 2023 | |||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | 18,745 | $ | 18,125 | ||
| Trade accounts receivable | 3,183 | 2,883 | |||
| Prepaid expenses and other receivables | 635 | 569 | |||
| Total current assets | 22,563 | 21,577 | |||
| Property and equipment, net | 2,423 | 2,186 | |||
| Intangible assets, net | 18,130 | 18,709 | |||
| Goodwill | 1,784 | 1,961 | |||
| Deferred tax assets, net | 1,842 | 1,842 | |||
| Other assets | 439 | 556 | |||
| Total assets | 47,181 | $ | 46,831 | ||
| Liabilities and stockholders’ equity | |||||
| Current liabilities: | |||||
| Trade accounts payable | 815 | $ | 669 | ||
| Accrued expenses and other current liabilities | 2,906 | 2,676 | |||
| Deferred revenues | 2,250 | 2,414 | |||
| Total current liabilities | 5,971 | 5,759 | |||
| Term loan, net of deferred financing costs | 1,986 | 1,985 | |||
| Deferred revenues–non-current | 74 | - | |||
| Other liabilities | 171 | 223 | |||
| Total liabilities | 8,202 | 7,967 | |||
| Commitments and contingencies (Note 9) | |||||
| Stockholders’ equity: | |||||
| Preferred stock, .01 par value; authorized shares—2,400; no shares issued and outstanding | - | - | |||
| Class A common stock, .01 par value; authorized shares—2,600; 525 shares issued and outstanding at October 31, 2023 and July 31, 2023 | 5 | 5 | |||
| Class B common stock, .01 par value; authorized shares—40,000; 14,669 shares issued and 13,830 shares outstanding at October 31, 2023, and 14,634 shares issued and 13,801 outstanding at July 31, 2023 | 147 | 146 | |||
| Additional paid-in capital | 46,631 | 46,122 | |||
| Accumulated other comprehensive loss | (1,904 | ) | (1,537 | ) | |
| Accumulated deficit | (3,957 | ) | (3,942 | ) | |
| Treasury stock, 839 shares at October 31, 2023 and 833 shares at July 31, 2023, at cost | (1,943 | ) | (1,930 | ) | |
| Total stockholders’ equity | 38,979 | 38,864 | |||
| Total liabilities and stockholders’ equity | 47,181 | $ | 46,831 |
All values are in US Dollars.
5
ZEDGE,INC.
CONDENSED CONSOLIDATED STATEMENTSOF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except pershare data)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| October 31, | ||||||
| 2023 | 2022 | |||||
| Revenues | $ | 7,081 | $ | 6,900 | ||
| Costs and expenses: | ||||||
| Direct cost of revenues (excluding amortization of capitalized software and technology development costs which is included below) | 486 | 632 | ||||
| Selling, general and administrative | 5,499 | 5,826 | ||||
| Depreciation and amortization | 775 | 793 | ||||
| Change in fair value of contingent consideration | - | (150 | ) | |||
| Income (loss) from operations | 321 | (201 | ) | |||
| Interest and other income, net | 81 | 35 | ||||
| Net loss resulting from foreign exchange transactions | (219 | ) | (76 | ) | ||
| Income (loss) before income taxes | 183 | (242 | ) | |||
| Provision for (benefit from) income taxes | 198 | (73 | ) | |||
| Net loss | $ | (15 | ) | $ | (169 | ) |
| Other comprehensive loss: | ||||||
| Changes in foreign currency translation adjustment | (367 | ) | (259 | ) | ||
| Total other comprehensive loss | (367 | ) | (259 | ) | ||
| Total comprehensive loss | $ | (382 | ) | $ | (428 | ) |
| Loss per share attributable to Zedge, Inc. common stockholders: | ||||||
| Basic | $ | - | $ | (0.01 | ) | |
| Diluted | $ | - | $ | (0.01 | ) | |
| Weighted-average number of shares used in calculation of income (loss) per share: | ||||||
| Basic | 13,975 | 14,330 | ||||
| Diluted | 13,975 | 14,330 |
6
ZEDGE, INC.
CONDENSED CONSOLIDATED STATEMENTSOF CASH FLOWS
(in thousands)
| Three Months Ended | ||||||
|---|---|---|---|---|---|---|
| October 31, | ||||||
| 2023 | 2022 | |||||
| Operating activities | ||||||
| Net loss | $ | (15 | ) | $ | (169 | ) |
| Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||
| Depreciation | 14 | 14 | ||||
| Amortization of intangible assets | 579 | 579 | ||||
| Amortization of capitalized software and technology development costs | 182 | 200 | ||||
| Amortization of deferred financing costs | 1 | - | ||||
| Impairment of investment in privately-held company | 50 | - | ||||
| Change in fair value of contingent consideration | - | (150 | ) | |||
| Stock-based compensation | 507 | 589 | ||||
| Change in assets and liabilities: | ||||||
| Trade accounts receivable | (300 | ) | (70 | ) | ||
| Prepaid expenses and other current assets | (66 | ) | (205 | ) | ||
| Other assets | 14 | 14 | ||||
| Trade accounts payable and accrued expenses | 384 | 598 | ||||
| Deferred revenue | (90 | ) | (318 | ) | ||
| Net cash provided by operating activities | 1,260 | 1,082 | ||||
| Investing activities | ||||||
| Final payments for asset acquisitions | - | (962 | ) | |||
| Capitalized software and technology development costs | (423 | ) | (310 | ) | ||
| Purchase of property and equipment | (22 | ) | (39 | ) | ||
| Net cash used in investing activities | (445 | ) | (1,311 | ) | ||
| Financing activities | ||||||
| Proceeds from term loan payable | - | 2,000 | ||||
| Payment of deferred financing costs | - | (18 | ) | |||
| Proceeds from exercise of stock options | 3 | - | ||||
| Purchase of treasury stock in connection with share buyback program and stock awards vesting | (13 | ) | (310 | ) | ||
| Net cash (used in) provided by financing activities | (10 | ) | 1,672 | |||
| Effect of exchange rate changes on cash and cash equivalents | (185 | ) | (109 | ) | ||
| Net increase in cash and cash equivalents | 620 | 1,334 | ||||
| Cash and cash equivalents at beginning of period | 18,125 | 17,085 | ||||
| Cash and cash equivalents at end of period | $ | 18,745 | $ | 18,419 | ||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||||||
| Cash payments made for income taxes | $ | 36 | $ | - | ||
| Cash payments made for interest expenses | $ | 46 | $ | - |
7
Use of Adjusted EBITDA as a Non-GAAP Measure
Adjusted EBITDA, defined as earnings (loss) before interest, taxes, depreciation and amortization, stock compensation expense, transaction-related expenses and other non-recurring expenses, and Adjusted EBITDA Margin, represents measures that we believe are customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures we present. Our management also believes these measures are useful in evaluating our core operating results. However, Adjusted EBITDA/Margin are not measures of financial performance under GAAP and should not be considered an alternative to net income or operating income/margin as an indicator of our operating performance or to net cash provided by operating activities as a measure of our liquidity.
| Reconciliation of Adjusted EBITDA to Net Income (Loss) | Q123 | Q223 | Q323 | Q423 | Q124 | FY 2022 | FY 2023 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| GAAP Net (Loss) Income | $ | (0.2 | ) | $ | 1.6 | $ | (7.7 | ) | $ | 0.2 | $ | (0.0 | ) | $ | 9.7 | $ | (6.1 | ) | |||
| Excluding: | |||||||||||||||||||||
| Interest and other income (expense), net | $ | (0.0 | ) | $ | (0.1 | ) | $ | (0.1 | ) | $ | (0.1 | ) | $ | (0.1 | ) | $ | (0.0 | ) | $ | (0.3 | ) |
| Provision for (benefit from) income taxes | $ | (0.1 | ) | $ | 0.1 | $ | (0.7 | ) | $ | 0.2 | $ | 0.2 | $ | 1.9 | $ | (0.5 | ) | ||||
| Depreciation and amortization | $ | 0.8 | $ | 0.8 | $ | 0.9 | $ | 0.8 | $ | 0.8 | $ | 2.0 | $ | 3.3 | |||||||
| EBITDA | $ | 0.5 | $ | 2.4 | $ | (7.6 | ) | $ | 1.0 | $ | 0.9 | $ | 13.5 | $ | (3.6 | ) | |||||
| Change in FV of contingent consideration/Goodwill impairment | $ | (0.2 | ) | $ | (1.8 | ) | $ | 8.7 | $ | 0.0 | $ | 0.0 | $ | (4.0 | ) | $ | 6.8 | ||||
| Stock-based compensation | $ | 0.6 | $ | 0.8 | $ | 0.6 | $ | 0.6 | $ | 0.5 | $ | 1.9 | $ | 2.5 | |||||||
| Transaction costs related to business combination | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.2 | $ | 0.9 | $ | 0.0 | |||||||
| Adjusted EBITDA | $ | 1.0 | $ | 1.4 | $ | 1.7 | $ | 1.6 | $ | 1.5 | $ | 12.4 | $ | 5.7 | |||||||
| * | numbers may not add due to rounding | ||||||||||||||||||||
| --- | --- |
8