By Kelly Cloonan
Zedge returned to revenue growth in the fiscal third quarter as active subscribers rose to an all-time high.
The digital marketplaces and interactive games company on Thursday posted a profit of $200,000, or 1 cent a share, compared with $100,000, or 1 cent a share, a year earlier.
Adjusted earnings per share were 6 cents.
Revenue rose 1.3% to $7.8 million.
Sales in the company's advertising and subscription segments rose 2.2% and 13%, respectively, helping offset a 45% drop in sales in its digital goods and services unit.
Active subscribers rose 37% to a record 896,000.
The results mark a return to revenue growth after the company's sales took a hit in the prior quarter as TikTok pulled back on its advertising spending in the U.S. amid a pending ban of the app. Such dynamics led to less competition and lower ad rates across the industry, the company said at the time.
The company's profit in the quarter benefited from restructuring-related cost savings, which should become more visible in the current period, Chief Executive Jonathan Reich said. Zedge has seen further momentum in its core business through the first month of the current quarter, despite continued softness in its GuruShots game, he said.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
June 12, 2025 16:48 ET (20:48 GMT)
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