Zedge Inc (NYSEAMERICAN:ZDGE), an app publisher that owns a portfolio of leading digital consumer brands serving 43 million monthly active users across the globe, stock rallies 10.88% (As on Dec 14, 11:02:05 AM UTC-4, Source: Google Finance) after the company in the first quarter of FY 22 has reported 60.2% increase in the revenue to $6.0 million versus $3.8 million. Advertising revenue remained 38 robust as the company continues to optimize the ad stack to drive 39 higher prices received for every 1,000 advertising 40 impressions, known as CPMs. Subscription revenue and active subscriptions increased 48% and 25%, respectively, versus last year.  After a pause last quarter, the company saw subscriptions return to modest growth. During the first quarter, the company delivered operating income and operating margin of $2.6 million and 42.9% versus $1.1 million and 29.1%, respectively. The company has reported Net income and diluted EPS of $2.1 million and $0.14 versus $1.0 million and $0.08, respectively. Cash flow from operations has increased 81.2% to a record $2.7 million versus $1.5 million, EBITDA has increased 110.9% to $3.0 million versus $1.4 million and MAU increased by 5.6% with emerging markets up 11%, driven mainly by continued demand in India. Developed markets remained a challenge with MAU declining in the high single digits. Despite this, ARPMAU increased 47% versus last year. Zedge Premium GTV increased 58.2% to $0.33 million during the first quarter.

Moreover, ZDGE continue to invest in the parts of the business that offer optionality. Zedge Premium is a big part of this opportunity. The company expects to start rolling out the NFT offering, called NFTs Made Easy, in the Zedge Premium marketplace for both Android and iOS. The company’s approach to NFTs allows Zedge Premium artists to create and sell NFTs to the users without being crypto currency experts. At launch, the company will be starting with video wallpapers from a select group of artists and over time the company expects to expand across different content categories and make this functionality available to all Zedge Premium artists. The company also expects to enable additional capabilities such as limited editions, drop dates, auctions and trading. The company is also in the process of further unlocking Emojipedia’s value by translating the site into languages other than English while also exploring the possibility of a native mobile app.