v3.25.1
Segment and Geographic Information
 9 Months Ended
Apr. 30, 2025
Segment and Geographic Information [Abstract]  
Segment and Geographic Information

Note 11—Segment and Geographic Information

 

Segment Information

 

The Company determines its operating segments based on how its chief operating decision maker (“CODM”) manages the business, allocates resources, makes operating decisions and evaluates operating performance. The Company’s CODM was its Chief Executive Officer as of April 30, 2025.

 

There are two reportable segments, which are the Zedge Marketplace and GuruShots.

 

The CODM evaluates the performance of each operating segment using segment income (loss) from operations. The Company defines segment income (loss) from operations as revenue less costs and expenses. Expenses include indirect costs that are allocated to operating segments based on a reasonable allocation methodology, which are generally related to sales and marketing activities and general and administrative overhead. Revenue and expenses exclude transactions between the Company’s operating segments.

 

The CODM uses segment income (loss) from operations to allocate resources during the annual budgeting and forecasting process. The CODM considers segment income (loss) from operations when making decisions on operating and capital resource allocation. Additionally, the CODM uses segment income (loss) from operations to evaluate operating strategy and assess segment performance by comparing the results of each segment.

The following table provides information about the Company’s two reportable segments (in thousands):

 

   Three Months Ended
April 30,		   Nine Months Ended
April 30,		 
   2025   2024   2025   2024 
                 
Zedge Marketplace:                     
Revenues   $7,283   $6,788   $20,196   $19,777 
Less:                     
Personnel related expenses    1,909    2,303    6,375    6,613 
Users acquisition costs    1,927    1,772    5,010    3,689 
Data center and SaaS costs    488    434    1,428    1,200 
Restructuring charges    270    
-
    695    
-
 
Other expenses 1     1,425    1,082    4,448    3,743 
Zedge Marketplace segment income from operations   1,264    1,197    2,240    4,532 
GuruShots:                     
Revenues   $475   $869   $1,735   $2,732 
Less:                     
Personnel related expenses    592    978    2,665    2,550 
Users acquisition costs    115    252    807    1,154 
Platform fees    85    160    293    510 
Data center and SaaS costs    223    247    707    788 
Acquisition and restructuring related charges    307    
-
    1,190    11,959 
Other expenses 2     257    561    830    2,043 
GuruShots segment loss from operations    (1,104)   (1,329)   (4,757)   (16,272)
Total segment income (loss) from operations   $160   $(132)  $(2,517)  $(11,740)
1.Other segment items for the Zedge Marketplace reportable segment include professional services costs, platform fee, depreciation and amortization, facilities costs, public company related expenses and other individually insignificant costs.

 

2.Other segment items for the GuruShots reportable segment include professional services costs, depreciation and amortization, facilities costs, and other individually insignificant costs.

 

The CODM does not evaluate operating segments using asset information and, accordingly, the Company does not report asset information by segment.

 

Geographic Information

 

Net long-lived assets and total assets held outside of the United States, which are located primarily in Israel, Lithuania and Norway, were as follows (in thousands):

 

   United States   Foreign   Total 
Long-lived assets, net:               
April 30, 2025  $6,193   $496   $6,689 
July 31, 2024  $6,570   $1,460   $8,030 
                
Total assets:               
April 30, 2025  $32,230   $5,601   $37,831 
July 31, 2024  $32,412   $5,783   $38,195