Zoomd Technologies Ltd. (TSXV: ZOMD) (OTC: ZMDTF) and its wholly owned subsidiary Zoomd Ltd. (collectively, "Zoomd" or the "Company"), the marketing technology (MarTech) user-acquisition and engagement platform, announces today 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.
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.
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."
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
DISCLAIMER IN REGARD TO FORWARD-LOOKING STATEMENTS
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to Zoomd's future outlook, its future ability to successfully continue its growth, its ability to improve its profitability, including as a result of the measures implemented, the expected cost savings of the measures, as well as its ability to continue expanding into new geographies and industries. Forward-looking statements are based on our current assumptions, estimates, expectations and projections that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include but are not limited to general business, economic, competitive, technological, legal, privacy matters, political and social uncertainties (including the impacts of the current war in Ukraine), and general economic and business conditions and markets. There can be no assurance that any of the forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether because of new information, future events or otherwise, except as required by law.
The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking information contained in this press release is expressly qualified in its entirety by this cautionary statement.
Source: Zoomd Technologies Ltd.