Zoomd Technologies Achieves Record Growth in Q3 2024 Financial Results

Zoomd Technologies Reports Impressive Financial Growth in Q3 2024

Zoomd Technologies Ltd. (TSXV: ZOMD, OTC: ZMDTF), known for its innovative user acquisition platform for mobile apps, has reported exceptional financial results for the third quarter of 2024. The Company reached new heights, reflecting a remarkable 135% year-over-year revenue growth, totaling $16.7 million for the quarter and $39.4 million for the nine-month period ending September 30, 2024.

Financial Highlights

During the latest financial period, Zoomd's adjusted EBITDA stood at $3.9 million, demonstrating a significant jump from $0.6 million recorded in Q3 2023. This surge brings the total adjusted EBITDA to $8.1 million for the first three quarters of 2024. Additionally, the company marked its sixth consecutive quarter of net income growth, achieving a net profit of $3.2 million. Also noteworthy was the cash flow generated from operating activities, amounting to $2.7 million in Q3 2024.

Ido Almany, CEO, expressed pride in these results, highlighting the successful execution of Zoomd's core strategy focused on harnessing unique opportunities, including special client events such as the recent EURO football campaign. Almany stated that these achievements underscore the company’s ability to manage costs effectively while capitalizing on revenue opportunities. With a cash balance of $6.8 million and no long-term debt, Zoomd is well-positioned for future growth.

Strategic Changes and Revenue Growth

Despite discontinuing several operations that did not align with its strategic vision, Zoomd successfully increased revenues by 20% in Q3 2024 compared to Q2 2024. The company's costs of sales also reflected considerable growth, with an increase of 133% year-over-year, now standing at $10.1 million. However, the gross margin remained stable, indicating that increased sales costs were effectively managed alongside revenue spikes.

Moreover, the management has focused on maintaining operating expenses as a percentage of revenues, which experienced a consistent decrease to 20% over the last seven quarters.

Continued Commitment to Profitability

In remarks about Zoomd's performance, Amit Bohensky, Chairman of the Company, commended the team’s hard work while reasserting the company’s commitment to profitability over mere revenue growth. The chairman emphasized that, despite the strong stock performance, the company's financial multiples still suggest substantial growth potential ahead. By keeping their price-to-earnings (P/E) and enterprise value/EBITDA (EV/EBITDA) ratios below industry counterparts, Zoomd retains a favorable outlook for creating long-term value for shareholders.

Upcoming Conference Call

To discuss these impressive results, Zoomd’s Founder and Chairman Amit Bohensky will hold a conference call at 11 AM ET on November 29, 2024. Interested investors can join via the live webcast available on Zoomd's investor relations page or follow the direct link here. The company will also provide a replay of the call for those unable to attend the live session.

Conclusion

Zoomd Technologies' third-quarter results exhibit the company's robust growth trajectory and resilience in the marketing technology landscape. With strategic shifts proving effective and a focus on sustainable profitability, Zoomd is poised for further achievements in the competitive market of user acquisition platforms. As they continue to innovate and adapt to market demands, all eyes will be on Zoomd to see how they maintain this impressive momentum in the future.