Zedge, Inc. (NYSE American: ZDGE), a $39.32 million market cap company specializing in prepackaged software services with industry-leading gross profit margins of 94%, announced the results of its Annual Meeting of Stockholders that took place on January 15, 2025. According to InvestingPro analysis, the company maintains strong financial health with a GOOD overall rating. During the meeting, shareholders voted on several key proposals, including the election of board members and amendments to the company's stock plan.
The election of board members resulted in all nominees being elected to serve a one-year term. Mark Ghermezian received 77.91% of the votes, Elliot Gibber 78.44%, Howard Jonas 84.10%, Michael Jonas 81.51%, Paul Packer 78.44%, and Gregory Suess 84.28%. Each nominee garnered a clear majority of the votes cast, with the lowest percentage of votes for a nominee being 77.91%.
In addition to the board elections, shareholders approved the appointment of UHY LLP as the company’s independent registered public accounting firm for the fiscal year ending July 31, 2025, with an overwhelming 99.61% of votes in favor.
A proposal to amend Zedge's 2016 Stock Option and Incentive Plan also passed. The amendment, which includes an increase of 100,000 shares available for awards, received 76.72% approval from the votes cast. InvestingPro data shows the company maintains a healthy balance sheet with a current ratio of 3.62, indicating strong liquidity to meet its obligations.
Furthermore, an advisory vote on the compensation of Named Executive Officers was held, with 83.79% of the votes cast in favor.
The outcomes indicate strong shareholder support for the company's governance and executive compensation practices. No broker non-votes were recorded for the appointment of the independent auditor and the advisory vote on executive compensation, while the other proposals had broker non-votes amounting to 365,511 each.
This report is based on a press release statement and provides a concise summary of the key decisions made by shareholders at the Zedge Annual Meeting. The company, incorporated in Delaware and headquartered in New York, continues to follow its established agenda with the backing of its investors.
Looking ahead, analysts maintain a $4.00 price target for the stock, suggesting potential upside. Discover more detailed insights and 8 additional key tips about Zedge through InvestingPro's comprehensive research report, part of its coverage of over 1,400 US stocks.
In other recent news, Zedge Inc. reported a significant miss on its Q4 2024 earnings, with both earnings per share (EPS) and revenue failing to meet forecasts. The company posted an EPS of $0, falling short of the $0.04 forecast, while revenue reached $7.2 million, below the expected $8.1 million. Despite this, the company's subscription revenue saw a year-over-year increase of 21%.
However, Zedge reported a GAAP net loss of $300,000. Despite the earnings miss, Zedge remains focused on innovation and growth, with the company aiming to maintain EBITDA positivity and expecting Q2 to be seasonally stronger. The company's strategic initiatives include expanding AI-powered creative tools and optimizing user acquisition.
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