ZDGE - Earnings call transcript Q2 2020

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Operator

Good afternoon, and welcome to Zedge's Second Quarter 2020 Earnings Conference Call. [Operator Instructions]. In today's presentation, Elliot Gibber, Zedge's Interim Chief Executive Officer; and Jonathan Reich, Zedge's Chief Financial Officer and Chief Operating Officer, will discuss Zedge's financial and operational results for the 3-month period that ended on January 31, 2020.

Any forward-looking statements made during this conference call, either in prepared remarks or in the question-and-answer session, whether general or specific in nature, are subject to risks and uncertainties that may cause actual results to differ materially from those which the company anticipates.

These risks and uncertainties include, but are not limited to, specific risks and uncertainties disclosed in the reports that Zedge files periodically with the U.S. Commission. Exchange and Securities from obligation made update to or may to factors no that update forward-looking have that differ results actual been may cause they either assumes forecast. any to statements the those Zedge make or

earnings that earnings on The the is note with also has been page Please our release Zedge the Form Relations X-K of available Zedge the website. release Investor filed on SEC.

turn the conference to I now Gibber. like to would Mr. over Elliot

Elliot Gibber

today. you Quarter thank months Gibber, all Conference and I'm operator, us Welcome Second Elliot XX, CEO joining Zedge's Call you, Fiscal Zedge. of XXXX. Thank ending January three Interim for Earnings recapping to the XXXX

that is who this afternoon. we Chief Jonathan today Chief our Operating me will Financial insight Officer, additional and numbers reported Joining provide earlier Reich, the into

are the today's to a take are know call like Zedge. about some minute the I on little who company. I'd a people to new to tell you there

is content, being of legacy close ringtones providers offering Ringtones have our video leading sounds. array high-quality and million million the rich XX active legacy on notification monthly wallpapers, Wallpapers XXX installs To a organic wallpapers, focused Our have & ZEDGE to of and date, mobile personalization one app, users. of surpassed consumers

content this digital recently to a and through our marketplace, We app Zedge from generate their added customers. revenue Premium, to holders which from advertising, paid sell prescriptions enables license

users of users located Android base XX% and well-developed our are Our economies. consists of mostly in approximately users

personalization. the world by December our beyond in which mobile us XXXX, entertainment-focused phone will extending new standalone app, Schwartz, we the Zedge, chat stories a completed rollout of presence of help

in was format. for exciting Today, us. Schwartz an rendered the messaging text like serialized QX provides fiction short-form quarter stories

to new our phone the workforce. our revenue with to offer to personalization. mainly exciting and smaller products, extend this be a positive and focused goal Schwartz. It's products introducing lowering and fruit, team towards see labors great expenses Our beyond accomplished bear new becoming that offerings in of We cash position of all flow driving it's on continue growing to our

for last the is we is because iOS, offering out our across on conference -- Zedge. able be this this from an we This that first that have a conventional to we users product Schwartz on benefit upside. and than counterparts. evolves to Android well, is monetize the If both will Since monumentous We belief capitalize better rolled equally their Android iOS stand call, untapped iOS. viable the momentum

Our short-form building for centered Schwartz vision ecosystem rich the a calls for on content.

a beyond. we believe we Although we think Indeed, launched far of snackable goes the Schwartz offers the chat bite-sized stories, opportunity with content. as platform that

is as Our text the and as ubiquity as well. audio with possible only avail not goal content, and users video also but to provide

mind, option want media. multitude our consumption seamless listen most the on the enabling to changes. coupled, appeals content what content to offer deeply read, We across a In consume users to have watch We media continuity of or world to for where should is envision the a if the the users ability the based them. stories,

shift to then to head the For they point example, same listening when and reading a story start a the may story user from outside.

that a is subscription. we then Our targets beta. established conversion churn for focus user per and current and are Conversions that up for meet average sign we can revenue ensuring usually Schwartz the the install app

So far, track. we on are

this audio In addition, we expect fiscal to year. start testing

MicroCast as accessible, we podcasting well Schwartz as podcasts, make publish view app call with and both what as platforms. is the Our stories to major them the

our podcasting. with background you some about provide Let interest me in

in audio weekly There ubiquity devices, every of you basis impressive podcasting Spotify consuming The podcasts week has hours in U.S. content three consume been acquisitions purchasing growth. As a $XXX has and infancy, to a Yet content. on or million. on news, its year the over also podcasting. Snap, Listeners the similar significant space podcasting [indiscernible] as was still storytelling total for superlarge is industry XXXX. companies XX% to weather. are Americans experienced the in end, wireless tied a sports its vertical Short-form know with Quibi, for in think XXXX through emerged X-plus past is resulted content and success likely podcasting and the alone in the listen in year. hasn't prism, which is and in ultimate estimated year, accessibility. video, speakers To explosion viewing more TikTok headsets when some contact smart today's focused short-form an This podcasting of of a unlike has yet podcasting world explosive that Approximately

may want is this limit space, Schwartz this if opening not thesis the we that a powerful that teeth and format. in Schwartz leadership us a to our to an medium, become we position the opportunity us strictly users to to start Our of in that short-form evolving gives whole readers. We discover claim cutting set will a believe podcasting doors

I ecosystem, forward the a you. look said, in to an believe be Schwartz we and developing is our As sharing area we beneficial accretive this can with credit success

call going Jonathan will Reich I'm provide the over Now who financial the Thank of an to you. turn results. quarter's overview to

Jonathan Reich

on quarter focus Thank XXXX. second remarks Elliot. for our you, key My year results of today operational our the financial fiscal will and

read our our comprehensive and and today please week. results, which issued XX-Q, earnings to our Form earlier release a the discussion with file For next SEC we detailed of expect

to my XXXX through comments, the questions our October quarter to or period second that call which August first comparisons January have. will you XXXX XXXX, to XXXX. corresponding Throughout quarter, refers any November my XXXX through may through we was open remarks, in the are Following the and

app X.X% is number January opened the year users the ago. period million the of unique the that corresponding from quarter Monthly MAU, during Users a XX XXXX Active of our to last during days million or that XX.X in XX.X decreased

with and third-party advertising days for of suspension a issue, the one the ascending Google of was Store code September quickly lifted. the you we recall, As result integration in the X our When XXXX, as late buggy made from our aware of code technology standard removed partners. and app Play suspended were we Google a

the suspension, during recommending version Despite the same the in phone, all users the by emerging of XX.X% in action in they notification X.X% markets their This from the a to drop the that of problematic well-developed uninstall However, of comparative accelerated by XXXX. MAU sent that app it. MAU markets increased had Google, periods. on fiscal in QX Google

in basis, initiatives app impacted XX.X% MAU on by are Furthermore, the seasonal XX% following reinstall was suspension. likely growth well-developed sequential XX.X% emerging increase following users readmitted quarter markets that Google in being Play by globally, including sequential in grew markets. MAU positively The marketing and into growth, the and a

the growth promotion increased Total revenue holiday year-ago optimizations across second $X.X of in quarter further Zedge in stack, quarter, growth increase our quarter regions, season. the strong and paid and sequential Premium, The million MAU of previous all the subscriptions, was a and ad several during in sequential compared XX.X% to benefit spend respectively. to result factors, X.X% the the continued including ad of

adverse light in the for Play I us these which I in Google would if team be especially job at results, commend doing delivering the hit suspension, the of the impact an excellent beginning of quarter. remiss of didn't the

kudos to going you. Your efforts unnoticed, aren't

and GTV, volume year $XXX,XXX compared QX transaction is to gross last in ago, quarter. sales or total Premium's $XXX,XXX through transacted $XXX,XXX volume the the a was that Zedge platform

was basis, a quarter-over-quarter. by Although GTV on grew year-over-year flat XX% it basically

of basis. Zedge subscriptions at in grew end likely of enabling Premium. prioritizes are impact mid-term a surpassing also of We of complete to introduction in associated Zedge homepage revenue by Paid XXX,XXX Schwartz the redesign homepage, Zedge of see in we ahead of the our expect advertising made million cumulative the Premium. revenue optimization going and this gross of the Premium and better XX% The XXXX. an on for Paid revenue. subscriptions our redesign to since January short promotion recent inventory year, After subscribers generated associated sequential which we $X.XX GTV GTV decline later a to have to app's due mostly their up quarter, redesign our materially, increase invest the quarter growing

premium recall, takes XX% when into user subscriber, converts you paid which cut, a in a SG&A. As shows up a Google

month, from our XX%. or monthly the year-over-year to from optimize our subscriber $X.XXXX apps a their XXth further taken The sequentially. fee its renews in back, generated lowers if XX.X% ads average paid user by XX% active increased and is to per improvement However, subscription monetize in ARPMAU revenue to actions we've attributable emerging subscriptions. users the Google the better to Overall, growth and and markets after

XX.X% was previous $XXX,XXX, represented which Direct of $XXX,XXX quarter decrease sequential X.X% revenue revenue year-ago in the revenue, QX of from in in cost a revenue or representing of of XX.X% the quarter. and XX.X%

cost during direct absolute the of remainder this decline revenue We to expect year. of

to compared was The year-ago severance a quarter and to compensation on quarter sequential the to second offset quarter. discretionary subscriptions, payments increases in prior $X.X X.X% a the SG&A acquisition expense. in and primarily the Schwartz fee compared costs and lower decrease paid decrease Google XX.X% content relates by the million, spend, decrease

was period second previous $XXX,XXX $XXX,XXX the losses to in in quarter. of Net and compared quarter the income sequential in year-ago the $XXX,XXX

October Net at of XXXX, a XX revenue attributable to This fiscal $X.X we $X.X quarterly losses. the the XX% was net XX, $XXX,XXX $X.XX At in and from compared in the reported increase $X.XX losses quarter increase. XXXX, quarters, income and net technology decrease and respectively. software income of per cash million in to a improved $X.X $XXX,XXX net investments in sequential SG&A, January year-ago positive of of reversing year prior $XXX,XXX. equivalents cash in share costs of and increase, the development first $X.XX Of is primarily consecutive and million to earlier since quarter and QX with XX, million

in from has $X.X Zedge direct debt. our in early registered added million We offering another February. no outstanding proceeds

to $X.X revolving Western needed. if facility of have million a Alliance access from credit up to Bank, We

quarter for was good Zedge. In conclusion, QX a

SG&A. Major in making continue positive MAU, progress fiscal and We key including the Schwartz indicators cash across and becoming performance of of improved, in the iOS. revenue flow beta XXXX. We launch our Android completed goal

described formidable for our that our the introductions driving reducing new stack, our subscriptions Schwartz investment the remainder relevance further the We costs in year, product world including in mobile of Elliot, have extend set our app, and continuing exploring goals ad a the better flagship out improved of of building optimizing infrastructure ecosystem personalization. with beyond by our

for to On you back Q&A. that operator, note,

Operator

Instructions]. [Operator

with Group. [indiscernible] to Edison first go will We

Unidentified Analyst

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Jonathan Reich

much. Jonathan. so Yes. Thanks It's

have the we purchases. of a to either And set rate. have much XX% as offering of premium continue product actually potentially bundling as But you is business, convert grow that improve that conversion or and is triggers The we rule the user to all clearly prospective have things them gaming available overall rate will different and we users improved ads coins if paying thumb we be we to we testing a smaller into take the take find help are So sort. gaming. that dynamic those rates, of we initiatives subscribers. But general content, the users are continue with subscribing and than comparable, improve make productize And to value making free in-app that percent, to of around going XX%, a of are in users your offer that terms there that users. when

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various testing price have undertaken. sensitivity we that We have

subscription Google point an that portion for my when their in to revenue renew the it as XX%. only XX% user because comments, that whether annual be earlier user, retain As monthly of a XXth takes opposed said or in we users month, I've the a greater at

beyond. of will that So we today actually with that XX% us and have months to we're XX whole than will enable us renew a for that see activities more the set and remain experiencing it hopefully to

Unidentified Analyst

see. I

I Can question? another ask Okay.

Jonathan Reich

Sure.

Unidentified Analyst

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Jonathan Reich

Thanks so much.

major some made homepage. seen our When in quarter-over-quarter the redo to inventory and a migration entire completed and we substantial basis, simultaneously, later basis. process once technology stated earlier, underway that call a have but to design we completed we Zedge on We some a there there are that growth expect been promote homepage So as of project have on our upon on so contingencies to and a so back-end based more Premium. initiative year-over-year is this then to see and Schwartz dedicate forth, and continued growth year, has of

short-term a avail to it's to untapped great on we longer-term investments with are deliberately that -- there's we So hit in in opportunity order Zedge benefit that capitalize continued and aligned. for a opportunity so expect company, be We the what think we Premium. can

Unidentified Analyst

I see.

online thing? the mostly the be So the on the Schwartz going is future near than rather platform, in publishing focus store to

Jonathan Reich

Schwartz point. redesign our parallel inventory the homepage. We are have marketing that, for with our a we this at comprehensive in use prioritizing And of of

some content content in accordingly. Just the done houses homepage do more either them you redesign, app, Currently, Premium users content, enter a other from of homepage the of comes as that the we Premium our rest going We users to to from for we're our that. to content directly app when see the and content more to or the as that interesting to independent pretty content portion allows us of around the it content peel presenting the whether also of that, and the a detail with to things when are it and relevant separates go give to some the which is up having content they're to is content. particular all into to the of that's off availed non-premium content app, content and it serving opposed logical or Premium think way availing that this

Unidentified Analyst

there I kind of with mic a phones be last market any everything? see hope thought? using And wanted going for in Is taking what's and corona people ask, what's just have if you more? specific not I is guys Zedge might play going I in on question I'm Got it. know. my much, wanted to regards maybe to too the on, little I don't bit a to the given their

Jonathan Reich

Sure, lot We've of thought. absolutely. it given a

that our our to So workforce me is saying, by let start is priority protected. to sure make it

make to work-from-home a to Friday. remain can a perspective, policy to place employees too to We best takes the starting said will what impact we to our ability. the are instituting of this be. the commercial healthy ability want that afford outcome early We Having sure and tell that Zedge our from that, it's

our upside, critical or have for a as a which would there typically confined homes in of as into traffic active translates we business. didn't natural the taking and to monthly hurricanes much. out their were proxy, just higher of uptick is times people disasters, as an by other users, the going that number On opportunity And when were see

as On businesses are business. in to what advertising advertising. travel that the the to Clearly, the are flip happens not any side, portion it's of linked unclear

advertisers advertisers and or like us going believe a spend it actually hands. performance reasonable very money is for However, to companies, so as game actually covered people performance good to that this to base. our speak, free at have, these more our gaming overall, be that may outcome they more because very, time point advertisers on And their inventory mobile customer are

we about weeks, details, QX results think have talk the accordingly. we'll this couple able and our course I more next over the that of be of announce when to we'll

Operator

investor Darrell Instructions]. [ph]. [Operator to We'll Evans next move

Unidentified Analyst

question. I Schwartz. regarding on Congratulations to of a couple Actually, a questions profitability. have return

conversion the be that me beta, percent, I'd like to would give from rate can a you if about great. First, know

could me rate, just that If a be that how on you are good would little give feel satisfied you with too?

Jonathan Reich

Okay, sure.

engaging revenue accordingly. rates, if the are numbers a we with terms I at be to you in So it on of across measuring direction. say impact its yet are the highlight of around incremental you'll the we conversion a those we're we're app critical those the each But targets had and of things item, not around we're meet to rates. a also that directionally, on And in conversion overall, suffice course have sharing lot are beat several making average an we headed basis. And numbers where and Schwartz are or like. to going either see regularly, to changes viable And point Android right user that both is, those want iOS. per equally which changes is those

time excited is equally business me. first according this ecosystems. with the is go are to And earlier, accessibility viable an like both where can which stated across As app, both where this upon had based we've really by ecosystems we

Unidentified Analyst

a there Google Is associated Okay. this product too? fee with

Jonathan Reich

Yes.

not will operational user the So that Store. and Google Google that XX% a cut. model take the unique And both Google the any also App subscribes, Apple to that's is Play Store for

typically, digital pay. of whatever that users amount XX% the is take cut So purchases, gross for they a

Unidentified Analyst

I that give aspects you my to under SG&A than getting eye appear good have, could control. much that efficiency kind control me you the be want the more if in more seems let's of wanted done of say, some to other under job Google, squeezed [indiscernible] And on the to that here I pretty know thing might to Okay. be color you could the have just because on address issue? I issue because out? a have how

Jonathan Reich

Sure.

savings you gone through One we about and into restructuring a benefiting ones numbers So are couple as we've categorize is today. generally those which are a SG&A of SG&A, speaking know buckets. I would from headcount,

there, for -- technology, third-party our have built and benefit. we'll some services. actually the will we infrastructure need some Second and make and continue changes to We've negating relates inure to which technology, to

the as the structure. of efficient to to cost in quarters, you know, ways several more lower last -- which a course platform over our have and continue can cloud there and infrastructure we have be migrated find We

renewal with falls give very XX%. A that really third bracket, than, is meaning what the is, or far, set an to or Store those XX% Apple in to negotiate other that paying incremental everything out or users, we're take, shouldn't App are at our that service, XXXX. but valuable XX%-plus of don't of to of XXth down our that we We're effort at we phases order relates than, rate January have negotiation say we see iTunes a and an month can is that that to early rates, with to respect I that XXth that We engagements us. thus with in users ability And squeezing from in subscriber, order bucket Google are subscription-based our And store. in XX% we're and which sort us, rate seeing XX%. with the now clearly their which they if But of very Play set it month is of again, a the users launched When that to enter to Google standard. renew is time Apple, that do or accordingly. are investing in to other

Unidentified Analyst

some be in I on question. positive Final be should cash I you're just focusing some expecting there I seasonality lumpiness for Should to the looking here? year. be numbers? and know by Is Okay. flow

Jonathan Reich

Sure. seasonality. There is

groups undertaken the developments that comparable our to-date, more the in said holiday we from customer have more year quarter to seasonal see impact year, customers first means year, to weighted the since initiatives we minimize there several emerging is try as QX to that ongoing seasonality And of in our lesser typically, it Having end quarter us impact, to investment advertising that that, unlocking that us. as our the revenue, without to the where of seasonal ways spend, And there is advertising. advertising more also less, spend. of one is of with And what muted. QX and or markets. is monetize the the to better So the subscription-based business in overlaps strongest being enable the and in such that calendar order revenue such towards with generate all base still certain or is,

up. we continue ad invested we finally, that that we've and last higher made in And optimizing also ultimately of our this as the six investment through the considerable revenue time the in numbers. have continues the And unfolds, amount believe stack that, margin a that be and months of to that the clear will from year to over course generating hold

because a recurring positive. territory we year. we Of path doing of of in course clear, positive forth, that necessarily of that you course, is tell achieve it to our I we're into the can't goal everything of goal positive so as coronavirus. just on be cash me to fiscal an well being years, positive fiscal annual that let order complete we the XXXX. of in we the basis, and tell being you we that be still and are positive are cash what can't on year in the to happens flow continue clarity be I flow over goal so But in flow where enter see months year, as the that flow we is being capacity will flow quarters, with on cash And cash we that cash but

Operator

next West. move Old Boskovich to We'll at Joe

Joseph Boskovich

Yes.

that subscribers, that that first Zedge only last not to the Premium and see XXX,XXX that? grew to I subscribers Schwartz So XXX,XXX quarter. XXX,XXX subscribers in included from is is Is

Jonathan Reich

include It's in subscription it. subscribers, Schwartz that correct. That's and not does

Ringtones, subscribers. & paying Wallpaper Zedge the are these So

Joseph Boskovich

right. Right,

out forward, that you sounds at going break that ready Zedge to monthly but will subscribers and subscribers. number Is you're Premium not So reveal the and between point, subscribers, it and yet, like correct? disclose Schwartz some you'll

Jonathan Reich

just set -- this me little that's leaning And that the we're think a towards. I bit. what frame let

Elliot Schwartz is ways so the that a is described, most that lot sure Board's app. to we in product make I either really haven't the so or different we're tend invest But -- which that is to build were. Schwartz specifically. information this make to estimates that that absolutely sure ourselves say beta. and just the and said, what's will to can of numbers, order going date, happening to to being to like a We're as have resources it that we support think parallel investing I begin secure this ecosystem optimized data where or that, and in useful time, this initial business And of had business. a be we different to business out, are -- and not because investing track than saying, in there, we comfort with that personalization when lot on while commercialized." detail beta, believe set the provide out a it's is looking in continue "hey, in what at and in shareholders a is can those I flagship the So reached forth not it's in to likely and surpassing on grow focus justify around we our to much the we provide we're to And level order

Joseph Boskovich

Okay. And of kind then, is question I twofold. guess, this

On on app already. unanimous read to user the the when be of weekly comment you testing when quite the And love pricing And just it finish pricing. a you monthly seems subscription I and I pricing, only pricing, Schwartz iTunes users specific could see mean the that pushback or And the you'd more there's Store story. few Can I the feedback, is that? had that annual downloads stores. the Play Google go pricing, at first, one you that a you you think been kind content, believe to mentioned you and

Jonathan Reich

Sure.

and SKUs would So we in when pass the beta, terms we pricing of offer. sort a launched we of took what first

a or maybe offered and in we could it's out it a in-app purchases, of And alluded a the SKU. are subscription, series, time do right -- but starting lot subscribing not spending monthly So to only meaning basis, of question annual as do be really Meaning, on universe gate, that could around model be And offering or we can model of utilize as with of is the buying it very have some testing pricing we all do a trying business annual you we we weekly, on basis and where the what a understand monthly of the respect SKUs weekly, Could to a is. convert regular offer the a finally, opposed to, expand upon sort that some what SKUs testing and goal right rate on model X of users app we with of what users. those well is to a users lot myriad and based ultimately having going to freemium optimizing that the prioritize? we be we of then do terms into begin underway. conversion interface that elasticity paying offer don't of

lot of marketing their trying early clarity bit teams spending and little model suffice time are a best us have our that still to what's in order right ROI. get to it's to a for So absolute the about the hands But business this. say around product it generate to

Joseph Boskovich

Okay.

a Just more couple questions.

I you blueprint you, for in go what the years? space? have envision you kind I the what can this you're that potentially of the and of and where others niche some In of have or guess, guess, months as seems I had you're some I upside that's there I'm massive Can could talk what And And chat terms doing this and And that stories, success. kind that accomplish. using of sure are over others know couple success next and doing, Schwartz of a short-form it guess, content. had that, maybe about specifically, that more

Jonathan Reich

Sure.

that of the of providers less other So about Unfortunately, are that know is we the privately success experiencing any held. competition in space. this

are bite-sized, tell the that is can about his numbers, And visual ecosystem ecosystem have I but in that an we're around both text-based But is look more it snackable, delivered comments. images short-form So stories I to Elliot as at is trying their readable in type of this we're this Phase and content. ubiquitous format. to can't really message about think talked said, chat building to way speak had details and you generically that I you X, the what that build

include also Quibi, platforms, on we down have may acquisition TikTok that Schwartz Today, provides this Snapchat market short-form and audio. syndicated well. to to in do and that certainly but right ubiquity. an avail be that up push accordingly. they would chat way third-party like will in the a if terms that we're begin go again, don't also for that the short growth whether with that door whether know, out It beginning be will video, available those you to to even out, download And expect time will screen revenue content and right to story. or when the or And the been like that the is as well the listen we it that it going world begin when we're they chat as Certainly, or as the advertising streams, what's app. story, a new sort users that just aside a where is going that around content end could both peers that they engage to exponential video such short And we And availing that will as you envision short-form user them. as audio, for inclined of pick be a view be in-app we it stories content, sponsorship. fast-paced us that in our it the be and strategy, XXXX, has from stories, we radar begin to that I to that hands road can that, across avail only test that of to of know not open as And then XXXX, that to bite-sized contents, new syndication getting the of content potentially we be mix to of as really the for this up

Joseph Boskovich

dollars? effective guess, that of the its Premium. me makes noticed few are I back then on And the a just question, allocation great. popular wonder, seeing to studios which last Okay, shows, that network has app Zedge as I marketing Zedge Premium going an promoted

Jonathan Reich

Yes.

an the the content in screen certainly streaming, really it's fan content. seen you've to base entities their that used order case and Zedge in it's where have the and around that platform a think or way Hollywood, past whether big build been I immersive particular So promote as

there. look continue for to We opportunities

say the we of on found, that but is have generally, some deals, speaking, not individual that would deals. back because to what I generally type are they in Hollywood pipeline we extent Although, scaled of these are more rather that world

whether don't Netflix, pipeline not, not basis, in opportunistic content or actually I an they case progress. work big at beginning them. distribution in can streaming, whether we to with as we on and the the to associated we're out side waters, follow of same we case a the their model In the a integrated more a screen pursue platform, on that test have So to Hollywood of have falls as And would clarity this as where build releases. that's or point. of where the or do

Operator

Shanske Niel Investor to We'll go [ph]. next

Unidentified Analyst

have look a Well, gentlemen, once see we you wonderful on subscriptions, to it. to much thank really color growth starting in get Do putting what you together was to so any subscription quarter, churn? The like net more and looks growth encouraging. like forward for we

Jonathan Reich

Niel? to get what, we once sorry, I'm

Unidentified Analyst

starting To talked about once churn what XX% scale? XX% both do know, a So And you churn in think rate. starts you happening subscription, churn? rate, and January, obviously started to growth in that to with out subscriptions about you you net as renewal

Jonathan Reich

Sure.

subscription very and between subscribers growth impulsed product. of that it, there And of that healthy long-term for call that the to will, the you more points, So classes of two more terms benefits take new seeing hyper can subscribers very, users, is by this they And in let's very model. the if We still bifurcate let's One renewals. effective are think subscribers. that now new plunge. feel time we are then, the the gain price is to

the think yet At as point there's credit to with everything such of coronavirus, growth again, the a seeing we to can't that renewing, we the virus that initiatives. terms upon a of credit do sort. users as can marketing we're to of prior people for. then And not different projection what at the that But and from nice, point, benefits do in things respect said, to and the are And now message, treat we pretty we update to of that based that we increase still in table. we're those to bringing in see the is with order renewals, up now providing the of this totally we're things the card you're pleased set seeing but declines whole a that breakout around than rates. there are I've we're were cards, are I their looking really different purchasers. to how more until where minimum, that I've and and renewal at what we we do so to XX%-plus the marketing focused renewals, to where respect we number trying seen And market we're that of it's get healthy in speak place, sort are trying users that the a that And to first-time midst

Operator

with session will holding, you call. for today's questions conclude other presentation. no the conference We question-and-answer today's And thank and attending this

may disconnect. now You

Zedge (ZDGE) 11 Mar 202020 Q2 Earnings call transcript