Zedge, Inc. (NYSE:ZDGE) Q2 2022 Earnings Convention Name March 15, 2022 4:30 PM ET
Firm Members
Jonathan Reich – CEO
Yi Tsai – CFO
Convention Name Members
Allen Klee – Maxim Group
William Vaughan – RegentAtlantic Capital
Operator
Good afternoon, and welcome to the Zedge’s Second Fiscal Quarter 2022 Earnings Convention Name. Throughout administration’s ready remarks, all individuals will probably be in listen-only mode. [Operator Instructions] After right now’s presentation by Zedge’s administration, there will probably be a chance to ask questions. [Operator Instructions]
In right now’s presentation Jonathan Reich, Zedge’s Chief Govt Officer; and Yi Tsai, Zedge’s Chief Monetary Officer, will focus on Zedge’s monetary and operational outcomes for the second fiscal quarter that ended on January 31, 2022. Any forward-looking statements made throughout this convention name, both within the ready remarks or within the question-and-answer session, whether or not common or particular in nature, are topic to dangers and uncertainties that will trigger the precise outcomes to vary materially from these which the Firm anticipates.
These dangers and uncertainties embrace, however usually are not restricted to, particular dangers and uncertainties disclosed within the reviews that Zedge recordsdata periodically with the U.S. Securities and Change Fee. Zedge assumes no obligation both to replace any forward-looking statements that they’ve made or could make or to replace the elements that will trigger precise outcomes to vary materially from people who they forecast.
Please be aware that the Zedge earnings launch is out there on the Investor Relations web page of the Zedge web site. The earnings launch has additionally been filed on a Type 8-Okay with the SEC.
I’d now like to show the convention over to Mr. Jonathan Reich.
Jonathan Reich
Thanks, operator, and thanks all for becoming a member of us right now. Good afternoon. Welcome to Zedge’s earnings convention name for the second quarter of fiscal 12 months 2022 ended January 31, 2022. I’m Jonathan Reich, CEO of Zedge and with me is our Chief Monetary Officer, Yi Tsai, who will present extra perception into our monetary efficiency. We’ll then be comfortable to take your questions.
For these of you who’re new to the Zedge story or have not adopted us shortly, we personal a portfolio of main digital client manufacturers that served 44 million customers globally in January of 2022. Our portfolio consists of Zedge Ringtones and Wallpapers, in any other case known as the Zedge App, which is the main cellular app used for cell phone personalization, social content material and fandom artwork and consists of Zedge Premium, a market for artists, celebrities and rising creators to market their digital content material and NFTs to Zedge’s customers; Emojipedia, the main web site devoted to all issues emoji; and a set of experimental apps and providers that our Innovation crew are engaged on all at varied phases of improvement. It is vital to underscore that these are experimental and should not evolve into full-blown business choices.
We possess deep experience in monetizing our digital real-estate, whether or not by way of promoting, subscriptions or content material gross sales. Our merchandise enchantment to a variety of person segments globally. We have now a powerful buyer base in North America, Europe and rising markets, notably India. Importantly, on the present time, we do not need materials publicity in Russia or Belarus. Right now, Android customers account for roughly 96% of the Zedge App’s month-to-month lively person base and 91% of its income.
Our second quarter was one other file quarter for income, rising 30% over final 12 months. Working margins remained robust at 45%, internet earnings got here in at $2.3 million and EBITDA was a file $3.4 million. At quarter finish, we held greater than $30 million in money with virtually no debt. As well as, we continued optimizing our Zedge App’s promoting stack driving distinctive CPMs, that’s, the worth that we obtain for each 1,000 promoting impressions offered in our app.
MAU for our Zedge app elevated 3% to 36 million, with rising markets up 7%, pushed primarily by continued demand in India. Nevertheless, developed markets remained a problem with MAU declining within the low double digits. We’re engaged on enhancing our choices and providers to reverse the development of declining MAU on this phase particularly and accelerating progress extra typically, together with introducing social and group options. Regardless of the latter, ARPMAU, or common income per MAU, elevated a wholesome 22% versus final 12 months. Subscription income and lively subscriptions elevated 18% and seven% respectively, versus final 12 months.
Earlier than I replace you on the strategic priorities I’ve outlined on our final two earnings calls, I wish to take the time to handle a number of objects that I consider are related to traders. First, regarding promoting, as a lot of you already know, cellular apps that generate programmatic promoting income want expertise, in any other case referred to as advert mediation, to handle the sale of their advert stock.
In late 2021 Twitter offered its advert mediation enterprise, Mopub, to AppLovin. Quickly after the sale, AppLovin introduced that it will deprecate MoPub’s platform on March 31. As such, we began assessing varied options, together with Applovin’s MAX platform, and re-allocated sources to begin testing and migration by the tip of March. Sadly, this wanted useful resource funding quickly delayed the rollout of a few of our social and group options. Regardless of the challenges, we count on to finish our migration by the cutoff date. Though the migration was a obligatory distraction, its was crucial, and we’re doing our greatest to make sure that the long-term end result will profit our clients and our enterprise.
Subsequent, I wish to speak to our Innovation crew. This group is tasked with figuring out potential new merchandise and is concentrating on to launch as much as three proofs of idea per quarter. Though many of those won’t progress to full-blown merchandise, we are going to profit from the training related to them. We have now fine-tuned this improvement course of over the previous few years to the purpose the place we are able to effectively and cost-effectively introduce new concepts, ideas and apps with out materials antagonistic affect to our backside line. The thought right here is to determine new alternatives that may hopefully scale right into a sustainable long-term enterprise. As these unfold we sit up for sharing extra particulars.
The Shortz beta was the primary foray of the Innovation crew, and we’re at the moment considering the longer term course for this undertaking. Over the subsequent couple of weeks, we count on to render a call about future funding and can replace you about our plans subsequent quarter. Even when we determine to scale back funding, I guarantee you our efforts weren’t for naught. We gained significant insights into scaling the innovation course of, fast tech improvement, advertising and product/buyer match, which we are going to profit from sooner or later.
Subsequent, I wish to tackle a false impression that some traders are utilizing to justify the decline in our inventory value. We have now over 540 million cumulative installs, representing 12% progress from the tip of final 12 months’s second quarter. We even have near 10 million person rankings in Google Play, with a mean score of 4.6. It seems that, as a result of lack of public KPIs, sure traders or followers are attributing our robust income progress to oversaturating the app with ads, on the expense of person expertise. We don’t consider this argument is justified.
We often analyze buyer expertise, their satisfaction and utilization, and, if the data reveals a elementary subject, we take corrective measures accordingly. Moreover, if customers favor an ad-free expertise, they’ve the choice of signing up for a really reasonably priced subscription. Though some customers depart us one and two-star rankings, we strive our greatest to optimize the holistic expertise, as evidenced by the enhancements and options we have now launched and can proceed to launch sooner or later.
This gives a very good transition to discussing our key strategic priorities. On the prime of the listing is rising MAU and enhancing engagement, notably in well-developed markets. Through the fiscal first quarter, we started rolling out social and group options, beginning with giving our customers the flexibility to observe artists they discover attention-grabbing. Now that the advert mediation platform migration is nearly behind us, we are going to introduce extra of those options and count on the notification pane to be accessible within the subsequent a number of months. This may inform customers when new content material that aligns with their tastes is uploaded to the platform. Along with core product improvement, we’re additionally scaling up paid person acquisition and just lately expanded our crew to assist scale profitably.
Subsequent up, we proceed to put money into the elements of the enterprise that provide optionality. Zedge Premium is a giant a part of this chance. We rolled out our doubtlessly disruptive NFTs Made Straightforward platform in December and, even with restricted performance, have skilled early success. Thus far, we have now offered near 600 video wallpaper NFTs. Our ease of use strategy to NFTs permits non-crypto consultants to promote NFTs just by toggling the “Publish as an NFT” choice and permits customers to buy these NFTs by shopping for Zedge Tokens, our current digital forex, which can be found within the Zedge app by way of in-app purchases and spending them accordingly.
To date we have now solely opened the platform to pick out artists and restricted the providing to video wallpapers. Quickly, we are going to start to make the platform accessible to extra artists, diversify the content material that may be minted, provide numbered editions, drop dates, auctions and buying and selling. Keep tuned for additional bulletins in 2022.
Whereas there aren’t any materials operational updates about Zedge+ subscriptions, we stay dedicated to enhancing this providing and can preserve you apprised when there may be information to share about their progress.
Transferring to Emojipedia, we’re about to roll out multi-language assist. Subsequent up is a web site redesign centered round enhancing performance and rising engagement and monetization. Lastly, we need to the second half of the calendar 12 months, to experiment with what a local Emojipedia app expertise could be like. And at last, there’s M&A, the place we stay lively in evaluating potential alternatives to broaden our choices and improve our portfolio.
In closing, we had an impressive second fiscal quarter of 2022 and consider we’re nonetheless within the early innings of reaching our progress potential. Given the upcoming transition to the brand new advert mediation platform and the non permanent delay in releasing social and group options, we have now chosen to stay conservative with our steering by leaving it unchanged right now. We nonetheless count on top-line progress of 25% to 30% with continued internet earnings progress, 40% plus working margins, robust money movement, and EBITDA progress exceeding income progress.
Earlier than I wrap up the decision, I wish to particularly name out our crew in Lithuania, which has remained targeted and productive whereas providing assist and help the place attainable to their neighbors in Ukraine who’re battling unjustified aggression. The truth is, in solidarity, we have now modified our brand to the colours of the Ukrainian flag to assist the Ukrainian individuals. Whereas we all know this can be controversial to some, we consider it’s the proper factor to do, and we have now contingencies in place ought to the aggressor’s ambitions transfer past Ukraine.
Earlier than handing the decision over to Yi to undergo our monetary outcomes, I wish to thank our traders in your assist. I do know the market has not been sort to Zedge’s inventory over the previous a number of months. Nonetheless, our fundamentals, progress prospects and earnings stay robust, our valuation is cheap, our alternative is giant, and we have now constructed a observe file of execution. Yi?
Yi Tsai
Thanks, Jonathan! I wish to remind these on the decision that our fiscal 12 months ends July 31 and thus our second quarter ended on January thirty first.
Transferring to our second-quarter outcomes; MAU, outlined because the variety of distinctive customers that opened our Zedge app over the past 30 days of the interval, elevated 2.5% to $36.3 million throughout January versus $35.4 million final January. Rising markets MAU expanded by 7.3% whereas well-developed markets MAU contracted by 10.5%.
Complete income within the second quarter elevated 30% to $6.9 million from final 12 months. This 12 months we benefitted from our ongoing work to enhance our advert operation. As well as, subscription revenues had been up 18% from final 12 months.
Zedge Premium’s Gross Transaction Quantity or GTV, that’s the whole gross sales quantity transacted by way of our market, greater than doubled to $434,000. As Jonathan indicated, this can be a essential focus for us as we consider {the marketplace}’s potential remains to be considerably untapped and can profit considerably from our new NFT platform.
Energetic subscriptions had been up 7% versus final 12 months and had been roughly flat sequentially. The slowdown in internet subscription progress was principally as a result of variety of new subscriptions added being offset by our churn charge, which has remained a continuing share whilst we grew to the next base variety of subscriptions. It is a widespread downside for client subscriptions because the subscriber base will get bigger, and as Jonathan talked about, we’re taking steps to re-accelerate sequential progress in these numbers.
Total, ARPMAU, was $0.06– a rise of twenty-two% year-over-year, pushed by the mix of higher promoting efficiency and higher-paid subscription numbers versus final 12 months. Working margin decreased to 45% versus 47% final 12 months. Whereas nonetheless a really robust quantity, a number of objects, which when taken as an entire, brought on this quantity to say no, together with authorized bills associated to the evolving privateness panorama and related compliance, greater compensation expense resulting from new hires and inventory awards in addition to a rise in paid UA.
A few non-operating objects negatively impacted internet earnings and EPS within the second quarter. First, as we talked about on earlier calls, we’re in a transition 12 months for turning into a taxpayer within the US as we used up our US NOLs in fiscal 2021, which led to an earnings tax charge this quarter of 23.4% versus 12.3% final 12 months, which added $372,000 to earnings tax expense. This tax charge improve restrained our internet earnings progress charge to 2% at $2.3 million. The diluted EPS was down a $1 as a result of tax improve mixed with an 11.5% improve in share depend.
Once you strip away these non-operating objects, EBITDA was a file $3.4 million, versus $2.9 million final 12 months. From a liquidity standpoint, we stay in a powerful internet money place with virtually no debt and over $30 million in money and money equivalents, a $5 million improve for the six month ended January 31, 2022 and up over $2.7 million sequentially.
Transferring to steering, regardless of year-to-date income progress of 43%, we stay very conservative as Jonathan mentioned. Because of the impending transition to the AppLovin MAX platform and are subsequently not altering our 25% to 30% income progress goal for the entire 12 months.
For working bills, we forecasted greater working bills primarily resulting from hiring, paid person acquisition and different objects and mentioned we anticipated working margin to be at the least 40%. We’ll depart this unchanged as we’re at 44% 12 months so far. For modeling functions, we mentioned our anticipated tax charge could be round 21% and we’re at 22% 12 months so far. I additionally steered utilizing 15 million shares to fifteen.4 million shares for calculating diluted EPS, and we’re proper at 15 million shares 12 months so far.
We additionally mentioned that we anticipated our internet earnings and EPS progress charges to lag resulting from these things. Given the will increase within the final two objects, most importantly the tax charge, we mentioned that we count on a drag on EPS progress in fiscal 2022. Nonetheless, we anticipated continued internet earnings progress with sturdy money movement and EBITDA progress. For EBITDA we mentioned we had been concentrating on a progress charge that’s barely greater than our 25% to 30% income steering, and year-to-date EBITDA progress is 47%, with an EBITDA margin of 49%.
Thanks for listening to our second-quarter earnings name, and I sit up for talking with you once more on the subsequent name. Operator again to you for Q&A.
Query-and-Reply Session
Operator
[Operator instructions] And our first query right now is coming from Allen Klee at Maxim Group. Your line is reside. Chances are you’ll start.
Allen Klee
Sure hello. I believe you guys are being humble given your income progress charge, 95% gross margins over 40% working margin. Very spectacular numbers. So, I wished to begin off with the migration to a brand new advert platform. How has it gone and is there any indication that it’s going to have an effect in your CPMs or is it simply you are being conservative or what might you inform us about that?
Jonathan Reich
Hello, Alan, thanks for the compliments and actually the thanks goes to the whole crew. Insofar because the migration we have now been evaluating a few completely different distributors and till we’re totally up and operational I believe it will be prudent to not depart, the reply to conjecture.
Having mentioned that the evaluation of potential vendor options centered round a few completely different variables. Definitely a kind of being advert charges, but additionally scalability ease of use reporting knowledge, all of these objects and our goal if you’ll, to see to it that there’s not degradation insofar as how we have been monetizing, however till we’re totally at scale, we’re not going to have the ability to reply that query with absolute readability. Though once more, to reiterate goes with out saying that the objective of see to it that we’re monetizing at par if not higher than that on the earth after we have now accomplished this migration.
Allen Klee
Okay. That is useful. One other greater image subject. Google got here out a short while in the past speaking about type of perhaps like a two 12 months transition on how they’ll deal with privateness. How do you consider that and the way that might, if in any respect, have an effect on you guys?
Jonathan Reich
It is nice query and suffice it to say that Google’s major income supply or a largest income supply is advert {dollars}. Our elementary perception is that as Google works on their resolution, that they will be aware of each buyer privateness, in addition to could if not enhancing their income stream. Google has been speaking about this migration for some time. They’d a prototype accessible, give or take final summer season that they finally had scratched.
And we are going to proceed to observe how this evolves over time with the elemental understanding that we’re very delicate to sustaining buyer privateness. And with the understanding that we do not consider that Google will wish to put able the place it metaphorically bites its nostril, regardless of its face contemplating how delicate their companies to promoting income.
Allen Klee
That is smart. After which one different massive image query. I learn just lately that it is attainable that Apple might need some provide constraints associated to among the lockdowns in China, however I am unsure if that additionally applies to Android cellphone manufacturing. Have you ever heard something that will make us suppose that new customers may get impacted by provide chain points?
Jonathan Reich
Nice query. I, in offhand who not been following that’s intently as I ought to have and can observe up after the decision.
Allen Klee
Oh, okay, nice. Then I am going to, transfer to an organization particular. So NFT seemed like that began off. Perhaps I can simply not even get that. Simply, the query of you have got a bunch of alternatives you are engaged on. Should you needed to say your new alternatives, which one you’d’ve to guess, would two years from now be the largest contributor? What would you speculate right now?
Jonathan Reich
Certain. So let’s bifurcate between the present ring tone wallpaper enterprise versus the reference that I had made to the innovation crew, the innovation crew is actually targeted on new merchandise that don’t exist in our portfolio right now. And as I referenced, our objective is give or take to attempt to get round three proof of ideas out into the market per quarter. And plenty of of these will fail rapidly.
We can collect info, acquire knowledge, analyze and form of say, hey, the, it is smart to take the subsequent gate or let’s reduce it off right here. When having a look on the flagship app as I’ve indicated prior to now, we consider that the convergence of typically talking the creator economic system on a extra international foundation the evolution of the tokenized world with NFTs internet three and the like coupled with our core worth proposition of NFPs made simple opening up the door to a tokenized world for artists that do not need deep crypto expertise or technical expertise is one thing that we predict bodes nicely for veg as a enterprise, as we proceed to evolve.
And as you already know our premium market right now when having a look on the general income mixture of the corporate give or take it is round, 5% to 10% of the general income combine, we consider that we are able to see to it that with the correct function set improvement and advertising that we are able to develop that piece of the pie over time.
Allen Klee
That is smart. And I do not know if individuals notice, however inform me if that is proper. If an artist sells an NFT on common, they’re promoting that considerably greater value than simply their typical artwork, which is healthier for the artist than higher for you. Is that right?
Jonathan Reich
That’s right. There’s additionally one other spinoff of that, and that’s if a client buys that NFT after which it cut-off date chooses to promote it, there may be incremental income that the artist will generate and that Zedge will generate from that sale.
Allen Klee
Obtained it. Proper. That is very attention-grabbing. Okay after which for subscription, you type of hinted to some issues that may come that some extra options that might perhaps improve that providing. Did I catch that?
Jonathan Reich
So on the subscription aspect, I’d qualify by saying that there are two areas that we’re specializing in, one is round advertising after which the opposite is function set improvement and people two play hand handy. I believe that we have been extra closely targeted for the final couple of months on the advertising piece. And as calendar 2022 continues to unfold, we are going to start to have a look at a function improvement of worth advertisements if you’ll, that may make the subscription providing or that will make the subscription providing extra enticing accordingly.
Allen Klee
Thanks. How do you consider the potential of Emojipedia type of the place it’s now and perhaps the place it may very well be in two years?
Jonathan Reich
We think about that there is going to be progress there. Recall that Emojipedia is right now solely an internet based mostly providing accessible in English. And we’re, as I mentioned within the technique of localizing Emojipedia, in order that there will probably be multilanguage assist opening up the chance for incremental progress for non-English audio system. And in parallel, we’re within the midst of an general web site redesign that ought to present extra performance in use instances make content material extra discoverable and accessible.
And as a part of that web site redesign as nicely that features monetization and particularly what advert items are positioned, the place, and the way can we be profit from that. After we’re accomplished finishing that and form of within the second half of the calendar 12 months, we’ll be taking a look at potential methods to take the Emojipedia from the world of internet into the world of native cellular app and that may presumably be one other progress driver for us.
Allen Klee
Thanks. When it comes to, on the final quarters name, you talked about the way you had been going to be experimenting with paid acquisition to paying, to attempt to get clients in and see how that may go. Do you have got something to report again on studying something there?
Jonathan Reich
Certain. So we have now began to scale up paid person acquisition. We’re pursuing this with a really clear mindset of creating positive that every part that we are able to do to deliver on worthwhile clients is taken into consideration and that we do not get too far forward of ourselves by way of saying, nicely, we spend some huge cash after which the more cash that you just spend, presumably your return on advert spend begins to say no since you discover much less related clients and so forth and so forth. So that is actually, actually being accomplished with that mindset of bringing on clients that may finally generate a return for us.
We have added to that crew and we have had learnings round with out moving into the specifics of the platform. Sure platforms have confirmed to be useful to us that we thought could be out of our value vary, different platforms or different types of buying clients haven’t at all times labored out as we might anticipate. However once more when making, or when beginning with a brand new platform or a brand new method of attracting a paid person, we begin with a really modest price range after which begin to scale from there. And once we see that we have reached the ceiling, then we select to not overspend with a purpose to shield profitability.
Allen Klee
Okay. Thanks. You highlighted that you just had been spending some cash on the transition to the brand new advert platform. Is it attainable to name out type of how a lot, how a lot that was, perhaps we might consider that as type of one time?
Jonathan Reich
Yeah, I believe that that’s right by way of being a onetime merchandise. We have now not damaged that out in our earnings launch and as mentioned earlier. So there are form of like onetime value, if you’ll. And there was a diversion of sources. So engineers that may in any other case work on function improvement bought pulled off to undertake the evaluation testing and so forth and so forth. We count on that that course of be just about wrapped up subsequent month, barring any unexpected surprises.
Allen Klee
Okay, nice. Something you wish to add on Shortz.
Jonathan Reich
So, as I mentioned, we’re within the technique of analyzing the place we go together with Shortz. We’ll have higher readability within the subsequent quarter. And we’re taking a look at a set of various KPIs after which coming again and form of saying, nicely, construct a enterprise case by way of how can it scale. Separate other than that, the Shortz basis is one, the Shortz platform, if you’ll, is one which lends to doubtlessly different modern merchandise or proof of ideas and we’re contemplating these as nicely. We’ll be capable to get into much more element once we announce Q3 and provides or take round three months from now.
Allen Klee
Nice. Okay. My final query is simply in your efforts to begin to develop the developed person base. I do know a few of that is going to be targeted on socialization and personalization or might you perhaps simply contact that another time of as a result of that looks as if that that must be fairly vital long run.
Jonathan Reich
Completely. So, as I discussed in our fiscal Q1, we began to roll out early stage social capabilities equivalent to Observe Me due to the advert mediation migration. As I had talked about a few minutes in the past, we needed to divert sources for getting the subsequent stage out, however subsequent up within the pipeline is the notification panel the place customers will get notified based mostly upon all types of various decisions. However the idea is new content material that’s related to the person.
There will be a bit signal on the app or some messaging to the person saying, hey, come again and go to extra. And we are going to proceed to incrementally add options that we suspect will draw customers again in to the app and assist us by way of reversing that tier one month-to-month lively decline — month-to-month lively person decline that we have now mentioned over the course of the final couple of quarters.
Allen Klee
That is nice. Thanks a lot.
Jonathan Reich
Thanks.
Operator
[Operator instructions] Our subsequent query right now is coming from William Vaughan at RegentAtlantic Capital. Your line is reside. Chances are you’ll start.
William Vaughan
Hello guys. Congratulations on the actually good quarter. My query surrounds capital allocation. Once you have a look at the market cap of the corporate, the money stability retains going up. Now you are as much as $30 million in money. Backing out the money, we’re wanting on the one thing shut to 5 occasions EBITDA by way of the analysis, closing it on that, or 5 occasions money or no matter analysis metric you wish to use.
So how do you consider allocating the money by way of to new investments or presumably doing a buyback? What are the thought course of on utilizing the $30 million, any money going ahead?
Jonathan Reich
Nice query, William. So our major focus and we have talked about prior to now quarter is how can we proceed to develop the corporate and make investments that money, whether or not or not it’s by way of inside improvement or M&A and the board will proceed to judge these auctions over time with a purpose to prioritize whether or not we proceed down that path or doubtlessly think about using a few of that for a buyback.
William Vaughan
Okay, thanks. When it comes to person progress we noticed one other quarter of progress in rising markets and form of flat numbers and developed markets, I assume what — do you, might you speak a bit bit extra concerning the traits by way of what makes the product or the expertise so I assume enticing for rising markets, particularly India, and likewise thought course of round turning across the person traits and develop markets than you simply touched on that a bit bit, however any extra coloration could be useful on that?
Jonathan Reich
Yeah, actually no, not way more coloration by way of the developed markets. Clearly, as I mentioned, social group options extra options by way of our artists group NFPs, as you may think about. So artists start to embrace that providing as they wish to develop their enterprise, they’ll attain out to their followers and that interprets into bringing customers into the Zedge ecosystem in addition to person acquisition initiatives, whether or not or not it’s paid or natural.
And as far as what makes the product enticing within the rising markets keep in mind that our app consists of or has each premium content material and premium content material and in lots of of those rising markets disposable earnings is a fraction of what it will be in a well-developed market. So when providing a person an choice the place they’ll purchase content material that’s enticing to them with out having to pay for it in a tough {dollars} that turns into a really, very compelling providing, if you’ll.
William Vaughan
Yep. Is smart. When it comes to Emojipedia, I do know you talked about that it is primarily in English proper now. What is the geographic distribution of customers for Emojipedia roughly
Jonathan Reich
It’s solely in English proper now and we have now not damaged out geographic footprints, however I believe it is truthful to say that our footprint, by way of the English talking markets, together with the USA, Canada, Australia and the UK is over 50% if I recall accurately. So it is a massive quantity.
William Vaughan
These, all my questions. Thanks guys. Nice quarter.
Jonathan Reich
Thanks.
Operator
Thanks, women and gents. This concludes our question-and-answer session and convention name. Thanks for attending right now’s presentation. Chances are you’ll now disconnect.
