Zedge, Inc. (AMEX:ZDGE) Q4 2022 Earnings Call Transcript

And it will be much more of a real time type of experience. So the notion of bringing the gameplay and making it immediately accessible to users in a fashion, which provides for, let’s call it, if not instant gratification near real time instant gratification, is something which we believe, coupled with the improved onboarding funnel, will contribute to making the game more accessible to a broader number of users that engage with the game. And finally, as we mentioned, we’re improving the game economy. Battles will be the first iteration where we introduce a token based economy, which will allow for a lot more flexibility in terms of how users ultimately buy game resources and apply those game resources in order to win a particular battle. In many ways, Battles is a game which has deep strategy associated with it and making it more accessible.

I don’t want to say that we’re turning it into a social game. But the notion of having a more social game type of like experience is core to what we believe will help drive growth and increase purchases and drive revenue and so on and so forth. Moving on to your second question. We expect to see, let’s call it, Version 1.0 of the GuruShots into Zedge Premium funnel rolled out in the next couple of weeks. And the intent there is to take these high quality photographs that the GuruShots audience and community creates and avail them for monetization opportunities within our premium marketplace. There’s a lot of iteration that will happen from version 1.0. But the notion ultimately is to see to it that it is as seamless of a process as one could possibly imagine.

If we were to have done nothing then it would have meant, well, GuruShots player somehow knows Zedge, they have to open up an account in Zedge, they then have to get approved, they have to upload their content, they have to set pricing and so on and so forth, agree to a different set of terms and conditions, privacy policy, pretty laborious. The notion of creating a seamless funnel is one where we ultimately want to be in a position where we have a GuruShots player who say, hey, by the way, would you like to monetize, would you like to sell your content to Zedge’s 32 million monthly active users? A player would say yes, and then the ultimate will be that it’s on autopilot and they can ultimately begin to benefit. And then use that money that they earn to potentially spend more on the GuruShots game accordingly.

Allen Klee: And then just an update on NFTs in terms of like — well, two things, maybe Premium, what you’ve been doing. I know you’ve added some high profile artists, and maybe any update on kind of how NFTs has been tracking. And an update on, you said that the personalization and social items have been delayed a little because of focus on the ad stack. Could you just remind me on where that is in the process of happening and when that — if it’s already available or when that should be fully available?

Jonathan Reich: So I’ll start with the second one first. So yes, we rolled out some of those social community features. What I said was that the original expected delivery date had been pushed out, because we had to allocate our resources to complete the AppLovin migration. And although, they’ve been out there for a couple of months, we are seeing that for the user base that is opting in and taking advantage of them, that those users are actually — we’re seeing an improvement in all of their key performance indicators, whether it’d be retention engagement, monetization and so on and so forth. And what we’re ginning to focus our efforts on is product marketing initiatives in order to bring more of our user base into that funnel that we call MyZedge, which has these social and community features.