Mr. Amit Bohensky reports

ZOOMD TECHNOLOGIES REPORTS FOURTH QUARTER AND FISCAL 2024 FINANCIAL RESULTS

Zoomd Technologies Ltd. has released its financial results for the three-month and full-year periods ended Dec. 31, 2024. The company's financial statements, and the management discussion and analysis (MD&A), are available in the investors section of Zoomd's website and on SEDAR+ under the company's profile.

Unless otherwise stated herein, all amounts are presented in U.S. dollars.

Key financial highlights:

• Revenues in FY (fiscal year) 2024 were $54.5-million, reflecting 70-per-cent growth compared with FY 2023;
• FY 2024 gross margin of 39 per cent, representing a 2-per-cent year-over-year increase;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $11.3-million in FY 2024, versus $1.7-million in FY 2023;
• Net income of $8.9-million in FY 2024, an increase of $13.6-million compared with FY 2023;
• Generated operating cash flow of $7.7-million, resulting in an EOY (end-of-year) cash balance of $9.2-million.

Management commentary

Ido Almany, chief executive officer of Zoomd Technologies, stated:

"Two thousand twenty-four was a transformative year, demonstrating the strength of Zoomd's strategic execution. We achieved a 100-per-cent year-over-year revenue increase in Q4, contributing to a 70-per-cent growth for the full year. Annual adjusted EBITDA reached $11.3-million and we delivered net income of $8.9-million, marking a notable turnaround from a $4.7-million loss in 2023.

"This performance highlights the scalability and resilience of our business model, technology and approach, validated by seven consecutive quarters of operating income growth.

"These results reflect the dedication, hard work and disciplined execution by the entire Zoomd team. We remain committed to sustained profitable growth, prioritizing margin expansion, strong cash generation and a compelling return on investment to drive continued shareholder value."

Amit Bohensky, founder and chairman of Zoomd Technologies, stated:

"Zoomd's performance in 2024 reflects the foundation we've built through focus, discipline and belief in our strategy. Looking ahead, we remain committed to investing in the vision that drives us -- scaling innovation, deepening customer value and building a business that delivers over the long term."

Fourth quarter (Q4) 2024 financial highlights:

• Revenues in Q4 2024 increased by 100 per cent to $15-million, compared with $7.5-million in Q4 2023. During 2024, the company achieved consistent quarterly revenue growth each quarter compared with the corresponding quarter in the previous year.
• Cost of sales for Q4 2024 amounted to $8.9-million, reflecting an 80-per-cent increase compared with Q4 2023. However, with revenues increasing 100 per cent over the same period, the rise in costs remained notably lower, resulting in a significant improvement in gross margin compared with the same period in 2023.
• Operating expenses as a percentage of revenues for Q4 2024 were 19 per cent, reflecting a consistent decrease in operating expenses as a percentage of revenue over the past seven quarters.
• Adjusted EBITDA grew significantly from $600,000 in Q4 2023 to $3.2-million in Q4 2024. The increase in adjusted EBITDA is primarily attributable to the increase in revenues and an improved gross profit margin.
• Net income for Q4 2024 was $3-million, compared with a net loss of $30,000 in Q4 2023, marking the fourth consecutive quarter of net income.
• Cash flow generated from operating activities for Q4 2024 was $2.6-million. As of Dec. 31, 2024, the company's cash balance amounted to $9.2-million and the company had no long term debt.
• Earnings per share for the year ended Dec. 31, 2024, were 12 Canadian cents.

FY 2024 financial highlights:

• Revenues for 2024 increased by 70 per cent year over year, despite having discontinued several operations that no longer aligned with the company's vision.
• Cost of sales in 2024 amounted to $33-million, reflecting a 64-per-cent increase year over year.
• Operating expenses as a percentage of revenue were 22 per cent for FY 2024, down from 50 per cent in FY 2023.
• Research and development expenses in 2024 were $2.7-million, a 17-per-cent decrease year over year. Selling, general and administrative expenses in 2024 were $9.5-million, a 5-per-cent decrease year over year.
• Adjusted EBITDA for 2024 reached $11.3-million, as compared with adjusted EBITDA of $1.7-million in 2023. This significant increase is primarily attributable to the increase in revenues and disciplined cost management.
• Net income for FY 2024 was $8.9-million, a significant turnaround from a net loss of $4.7-million in 2023. This improvement was primarily driven by revenue growth, operational restructuring and the recognition of intangible asset impairments recorded in 2023.

Conference call

Mr. Bohensky will hold a conference call to discuss the financial results for the quarter at 11 a.m. ET on March 26, 2025.

Interested parties can listen via a live webcast from the link available in the investors section of Zoomd's website.

A replay will be available after the call using the same link.

About Zoomd Technologies Ltd.

Zoomd, established in 2012 and listed on the TSX Venture Exchange since September, 2019, provides an innovative mobile app user acquisition platform that integrates with numerous global digital media outlets. This platform presents a unified view of multiple media sources, thereby serving as a comprehensive user acquisition control centre for advertisers. It streamlines campaign management through a single point of contact, simplifying customer acquisition efforts. The consolidation of media sources onto one platform enables Zoomd to offer advertisers substantial savings by reducing the need for disparate data source integration, enhancing data collection and insights, and minimizing resource expenditure.

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