Zedge, Inc. shares fall 11.35% in premarket after reporting mixed Q1 results and AI product launches.

Zedge, Inc. plunged 11.35% in premarket trading, following the release of its first-quarter earnings report, which showed a 62% year-over-year increase in advertising revenue driven by Zedge marketplace and Emojipedia, a 10% year-over-year increase in Zedge Plus subscription revenue with continuous growth in active subscribers, the expansion of its business portfolio with the launch of AI-based products such as pAInt and AI Art Master, and the repayment of a $2 million loan with $16.7 million in cash on hand, eliminating future earnings payments.