Company’s Overview:
Zoomd Technologies Ltd. (TSXV: ZOMD) is a Canadian-based marketing technology company specializing in user acquisition and engagement for mobile applications. Its business model focuses on providing a comprehensive platform that integrates with numerous digital media outlets, allowing advertisers to manage and optimize user acquisition campaigns through a single interface.
The platform consolidates over 600 media sources, offering advertisers a unified dashboard to oversee campaigns across various channels. A key differentiator for Zoomd is its proprietary internal search engine, installed on numerous publisher websites. This technology analyzes visitor intent and behavior (while adhering to privacy regulations), enabling more effective targeting and higher conversion rates for advertising campaigns.
Competitive Advantage:
The company’s competitive advantage lies in its advertising solution, built as an integrated layer within the ecosystem. This solution connects with numerous media channels, consolidating data and streaming it into a centralized platform. This enables the company to analyze and optimize campaigns for its customers across these channels effectively.
Zoomd Technologies empowers brands to achieve global expansion with minimal resources while maximizing impact. It provides access to an extensive network of both global and local media channels through a single, unified service provider.
Total Addressable Market:
According to insights from Data AI Intelligence, global mobile ad spend was expected to increase by 11%, rising from $362 billion in 2023 to $402 billion in 2024.
Financials:
Balance Sheet:
First and foremost, all figures are stated in USD. Let’s begin with the company’s balance sheet. While I usually focus on future prospects, it is essential to review the current and historical financial performance of the company.
In June 2023, under the leadership of new CEO, Ido Almany, ZOOMD conducted a thorough analysis and evaluation of each business line and supporting operations. The goal was to consolidate and significantly streamline our cost structure. These cost reductions, which extended beyond headcount adjustments, resulted in annual savings of approximately $4 million. Additionally, ZOOMD discontinued several non-profitable and low-potential business lines, a strategic decision that enabled the reallocation of resources and efforts toward the company’s core business operations.
In Q3 FY23, ZOOMD reported a cash balance of $1.5M USD, which has grown significantly to $6.7M USD in Q3 FY24, representing an increase of 368%. The company’s current assets increased by 136%, rising from $6.6M USD in Q3 FY23 to $15.6M USD in Q3 FY24. Meanwhile, the company has effectively managed its total debt, which rose modestly by 9%, from $9M in Q3 FY23 to $9.8M in Q3 FY24. These improvements collectively boosted the company’s equity from $8.8M USD to $14.6M USD, an impressive 66% increase within a year.
Notably, the company’s current ratio and working capital are robust, ensuring sufficient liquidity to sustain operations effectively.
The chart below illustrates the balance sheet performance over the past five quarters:
The chart below summarizes the trends in assets, debt, and equity since the restructuring began in Q3 FY23.
And finally, here’s my favorite chart—the star of the show! It highlights the significant jump in BV/Share(USD), thanks to the stellar performance in Q2 FY24 and Q3 FY24. 
Income Statement:
The income statement above illustrates the financial trends from Q1 FY23 to Q3 FY24 (the last seven quarters). Here’s the journey:
Q1FY23:
The first quarter of 2023 was a tough one, as our business grappled with ongoing macroeconomic challenges, particularly in the fintech, cryptocurrency, and e-commerce sectors.
Q2FY23:
Revenue took a hit, reflecting a 46% decline compared to Q2 FY22, primarily due to the downturn in the crypto sector. However, management quickly rolled up its sleeves and implemented a corporate restructuring plan. This initiative aimed to achieve annual savings of $4M USD, a goal reflected in the significant reduction in selling, admin, and G&A expenses, which dropped from $3.12M USD in Q1 FY23 to a more sustainable level.
Q3FY23:
The third quarter marked a pivotal moment in the company’s turnaround. For the first time in five quarters, we recorded positive cash flow—a big win in our commitment to sustainable financial performance. This achievement was bolstered by a strategic pivot away from cryptocurrency customers and other non-profitable segments, solidifying our focus on core growth opportunities.
The company successfully reduced its reliance on cryptocurrency-related sales from 60% to 10%, shifting focus to more stable and diversified sectors for greater resilience and growth potential. As part of a major restructuring, the workforce was reduced by 40%, achieving $4 million in annualized cost savings. By Q3, operating expenses had dropped by 36%, reflecting the positive impact of these changes and positioning the company for improved profitability and agility.
t's a tale of resilience and smart strategy—turning challenges into milestones!
Q4FY24:
This was the quarter when ZOMD first proved its strategies were working. For the first time since FY23, the company achieved a break-even quarter on net income—a pivotal moment. With a renewed focus on growth sectors like transportation, i-gaming, and e-commerce, the priority was clear: improving financial performance.
Q1FY24-Q3FY24:
Throughout FY24, ZOMD doubled down on stable sectors such as e-commerce, I-gaming, travel, and transportation, delivering measurable results. The company onboarded new clients and strengthened account management capabilities. Customers were impressed—so much so that ZOMD earned invitations to strategic client meetings and gained direct access to their budgets. This proactive approach fostered stronger client relationships and solidified ZOMD’s reputation as a trusted partner.
ZOMD’s primary focus in 2024 was diversification and risk mitigation, particularly reducing customer concentration. And the results speak for themselves:
Q1 FY24: Adjusted EBITDA soared by 667%, climbing from $0.2M to $1.2M.
Q2 FY24: The company delivered record revenue of $14M, a 58% increase year-over-year, with adjusted EBITDA skyrocketing by 696% to $3M.
Q3 FY24: ZOMD exceeded all expectations, achieving record revenue of $16.7M (a 135% increase YoY) and record adjusted EBITDA of $3.9M (a 572% jump).
ZOMD’s focus on strategic growth, diversification, and client engagement has made FY24 a standout year, laying the foundation for sustained success. 
Outlook:
Looking ahead, I’m optimistic about strong revenue growth in Q4, driven by key factors such as the organizational changes in FY23 (hello, new CEO!), a strategic focus on customer diversification, and the ability to seize unique opportunities—like the one-time revenue boost from the EURO football campaign and new customer acquisitions.
With Q4 typically being a strong period due to heightened e-commerce demand, I’m forecasting an 80% revenue increase. I expect the company to hit $13.5M in revenue for Q4 FY24, generating $3M in adjusted EBITDA, bringing the total for the year to $11M.
For FY25, I’m anticipating a more conservative 20% growth rate, which would push revenue to $64M, with adjusted EBITDA reaching $14.1M.
The chart below summarizes EPS/Share and Adjusted EBITDA/Share.
Valuation:
Basic Shares outstanding (Q3 F24): 98,633,287
Share price: $0.57 USD or $0.80 CAD
Market Cap: $56M USD
Enterprise Value: $55M USD
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TTM revenue (Q4 F23 – Q3 F24): $46M USD
F24 expected revenue: $53M USD;
F25 forecasted revenue: $64M USD
TTM Adj EBITDA (Q4 F23 – Q3 F24): $8.7M USD
F24 expected EBITDA: $11M USD
F25 forecast Adjusted EBITDA: $14.1M USD
TTM Net Income (Q4 F23 – Q3 F24): $5.8M USD
F24 Net Income $8 M USD
F25 forecasted Net Income: $11.2M USD
Looking at the FY25 forecast for revenue and adjusted EBITDA, the company, currently trading at CAD $0.58 per share, is valued at approximately 3.8x EV/Adjusted EBITDA and 4.9x EV/NI.
For FY24, based on projected revenue and adjusted EBITDA, the company is valued at about 4.9x EV/Adjusted EBITDA and 6.8x EV/NI, while still trading at CAD $0.58 per share.
I wholeheartedly agree with the company’s insights from the FY24 Q3 press release:
"The market has recognized our successful execution of the strategic plan, which focuses on profitability and operational efficiency rather than sheer revenue growth. Despite our strong stock performance, we believe our financial multiples suggest significant room for further growth. Our P/E, P/S, and EV/EBITDA ratios remain well below industry benchmarks, highlighting the tremendous value and untapped potential Zoomd offers."
The future is bright, and the value is undeniable!
Insider holding:
Insiders own approximately 31% of the and the public holds the remaining 69%.
Options/Warrants:
9,796,440 stock options were outstanding with exercise prices ranging from CA$0
to CA$0.43 per share.
Disclosure:
1. No compensation was received for the preparation of this report.
2. The information presented in this report is based on publicly available data and sources believed to be reliable. However, I make no guarantees regarding its accuracy or completeness.
3. This report is for informational purposes only and should not be considered as investment advice. Investors should conduct their own research or consult a financial advisor before making investment decisions. All investments involve risk
4. I and my immediate families do not have any conflicts of interest with this company.
5. This report is for informational purposes only and does not constitute investment advice.