Expected annualized net cost savings are approximately US$4 million

Zoomd Technologies Ltd. and its wholly owned subsidiary Zoomd Ltd. (collectively, “Zoomd” or the “Company”), the marketing technology (MarTech) user-acquisition and engagement platform, announces its plans to implement cost savings measures, consisting primarily of the discontinuance of non-profitable operations, the near-term termination of approximately 40% of its workforce and certain other reductions in ongoing expenses. Management estimates that the annualized net cost savings of the measures will be approximately US$4 million.

Management Commentary

Ido Almany, CEO of Zoomd, noted, “In light of the prevailing global macroeconomic conditions that are impacting our business, operations, and financial results, coupled with recent changes in the competitive landscape, it is imperative that we strategically align our focus. As a result, we are taking immediate actions to attempt to improve financial performance and cash flow throughout our operations.

Our management team has diligently evaluated every aspect of our business, considering our current standing, trajectory, future potential, and resource requirements. Consequently, we have made the decision to discontinue non-profitable activities lacking near-term growth potential. Instead, we will redirect our resources towards profitable activities and solutions that better position us competitively amidst the recent market dynamics. Specifically, we will wind down our publishers’, and components from our marketing platform offering, to focus on expanding our other advertisers’ solutions, as we believe they hold greater potential for our future success. We will continuously monitor non-profitable activities that still carry the potential for positive business impact and make subsequent adjustments if the situation warrants such adjustments.

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I would like to express my gratitude to the employees affected by this decision for their invaluable contributions to Zoomd’s success. Throughout this transition, we will provide unwavering support and assistance, approaching it with care and empathy. This decision is not an easy one, but it is essential for us to chart a clear strategic direction and position Zoomd for future success.

We remain steadfast in our commitment to delivering innovative solutions and maintaining our position as a leading player in the industry. We will adapt and evolve to meet the ever-changing market dynamics, leveraging our core strengths to drive sustained growth.”

Amit Bohensky, Chairman of Zoomd Technologies, stated, “These decisions have been approved by the board of directors of the Company following a thorough analysis of all aspects of our business. The board firmly believes that these measures will improve the Company’s cash flow from operations, financial performance, and growth, and will enable us to navigate the current market challenges successfully. We are confident that these strategic adjustments will position us strongly for the future once the macroeconomic situation changes.”

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