Zoomd Technologies ($ZOMD.V $ZMDTF): The Best Kept Secret in Digital Advertising?

Why This Under-the-Radar Growth Machine Deserves a $1.80/share or $175M CAD Valuation—And Why I’m Betting Big on It

My Perspective on Zoomd: A Shareholder’s Take (Not Financial Advice!)

I want to share my perspective on Zoomd Technologies. But before we dive in, let’s get the disclaimers out of the way:

I first became a shareholder when the stock was trading at around $0.06 in 2023 and have steadily increased my position as I’ve watched the company execute. Today, Zoomd is my largest holding—making up a whopping 57% of my portfolio—so yes, I might be just a tiny bit biased.

That said, this isn’t financial advice, a stock recommendation, or an attempt to convince anyone to load up on shares. It’s simply my personal take on where I believe Zoomd is heading. These are my opinions based on my research and observations, not statements from Zoomd’s management.

I’ll also tackle some concerns I’ve heard from colleagues regarding the recent share price pullback from $1 to $0.60. Let’s separate noise from opportunity.

1) What factors are driving Zoomd’s continued growth?

Based on my understanding, Zoomd looks well-positioned for the next few quarters—showing steady improvement with more growth on the horizon. If you’re wondering about future performance, I think the company already has visibility into the next three quarters (through Q3 F25) and a clear forecast in place.

What’s fascinating about Zoomd is that 80% of new clients are coming through word of mouth. That’s right—clients are reaching out to Zoomd, not the other way around. In the digital marketing space, that level of organic demand is almost unheard of.

Currently, Zoomd Technologies serves clients in 40 countries, with most ad spending concentrated in North America and LATAM, even though many of its clients are based in Asia and Europe. This global reach is something many investors might have overlooked, but recent customer wins show that momentum is only accelerating:

· Go Henry (Acorns-owned): A fintech leader specializing in financial education for kids and youth, helping the next generation build smart money habits.

· Liverpool: One of Mexico’s top three retailers, known for its cutting-edge shopping experiences and vast product offerings.

· Fanatics: A global powerhouse in sports merchandise, serving millions of passionate sports fans with official apparel and collectibles.

· NBA: A premier sports and entertainment brand, uniting basketball enthusiasts worldwide through thrilling games and digital experiences.

· Urbanic: A rising global fashion brand with Indian roots, delivering contemporary styles to trendsetters worldwide.

· Lightricks: A trailblazing developer of image and video editing apps, empowering creators with innovative content tools.

Even more intriguing? Despite macroeconomic uncertainty and concerns over tariffs, I think clients are not only maintaining their ad budgets but actually increasing them. User acquisition demand remains strong, and customer lifetime value continues to rise. While you’d expect companies to tighten marketing spend in a challenging environment, Zoomd is experiencing the opposite—businesses are doubling down on growth.

2) How resilient is the company to economic uncertainties?

Let’s clear up a common misconception—Zoomd Technologies is NOT

a traditional marketing company. It’s a user acquisition company. What’s the difference? While typical marketing firms make money from views and impressions (a fancy way of saying "eyeballs"), Zoomd gets paid for delivering real, measurable business results to its clients.

Now, let’s talk numbers. Back in 2022, crypto made up about 30% of Zoomd’s total revenue. Fast forward to today, and that number has shrunk to just 3%. Why? Because Zoomd strategically diversified its client base. The company made sure that if one industry takes a hit, other sectors pick up the slack. Smart move. While crypto is still in the mix, Zoomd no longer relies on any single sector for growth.

A full breakdown of Zoomd’s fiscal 2024 revenue by industry will be released alongside Q4 results in April. But based on what we’re seeing, key areas like e-commerce, retail, travel, and fintech—especially in North America—are driving strong growth.

3) What makes Zoomd Technologies' approach to user acquisition unique, and how does its technology differentiate it from competitors in the digital advertising space?

Zoomd’s technology stands out due to its ability to integrate more than seven different solutions into a single, holistic strategy. While many companies may specialize in one aspect of digital advertising, Zoomd’s strength lies in seamlessly combining multiple elements into a comprehensive approach.

One key differentiator is Zoomd’s extensive network, which connects to various advertising assets globally. These assets range from pre-installed placements on Samsung phones to Connected TV (CTV) and other digital real estate.

Additionally, Zoomd’s system effectively manages micro-influencers. Unlike traditional influencer marketing platforms, Zoomd does not own influencers; instead, the technology enables the activation of targeted campaigns instantly, based on demographics, geography, industry, and influencer type. By focusing on micro-influencers—rather than major influencers—Zoomd aligns their efforts with its broader advertising systems for maximum impact.

Another significant advantage is Zoomd’s proprietary AI-driven system, which differs fundamentally from traditional marketing AI solutions like Albert AI. While most advertisers rely on Facebook and Google’s algorithms to optimize campaigns, Zoomd’s in-house AI enables the execution of marketing campaigns independently. This allows Zoomd to achieve superior results in some cases, as its objectives are not limited by Facebook and Google’s interests. While those platforms optimize campaigns based on existing data, they do not focus on acquiring new users. In contrast, Zoomd prioritizes user acquisition and key performance indicators (KPIs) that drive real business outcomes.

Furthermore, Zoomd’s technology includes an advanced fraud prevention system. Given the vast amount of data processed, fraudulent traffic can be identified, ensuring full transparency for clients. If fraudulent activity is detected, Zoomd issues refunds, guaranteeing that clients only pay for legitimate traffic. This level of accountability differentiates Zoomd and fosters strong trust with its partners.

Ultimately, what makes Zoomd unique is the seamless integration of all these proprietary technologies under one roof. Unlike competitors who may excel in just one area—whether it’s a DSP (Demand-Side Platform), a fraud prevention system, or an influencer marketing tool—Zoomd owns all of these capabilities in-house. This enables the creation of a fully transparent, data-driven, and highly effective strategy tailored to each client’s needs.

Zoomd Technologies is deeply focused on user acquisition— their foundation and competitive strength. This is an essential and ever-present need in the industry. Today, the spen landscape is increasingly centered around mobile, with a growing share of activities driven by AI and automation for various strategic reasons. As the demand for mobile apps continues to rise, so does the need for effective promotion and user engagement.

This is precisely where Zoomd Technologies excels. The company is fully aligned with the fundamental purpose of user and customer acquisition, which is why I remain confident in its strategy and long-term potential

4) Why doesn’t Zoomd Technologies engage in aggressive market promotion or frequent client announcements?

In my view, Zoomd Technologies’ management prioritizes long-term fundamentals over short-term market optics. The company avoids engaging in market-making strategies or media-driven promotions that may create temporary spikes in attention without adding real value. Instead, the focus remains on building strong client relationships and securing sustainable growth, which ultimately ensures a stable future for the business.

Additionally, while Zoomd continues to acquire new clients, some prefer not to be publicly disclosed in press releases. However, I believe the company intends to resume announcing new client acquisitions soon. Based on my assessment and learning more about the company daily, these new customers are already contributing meaningfully to Zoom’s 2025 pipeline.

5) How does Zoomd Technologies approach capital allocation and investment decisions?

I have a strong hunch that the company has received an acquisition offer and another offer to raise funds from institutions. However, management has politely (but firmly) declined both, believing the company is undervalued at current levels.

As shareholders, we need to keep things in perspective—it has only been two stellar quarters (Q2 F24 and Q3 F24) where the company has delivered outstanding results. I know, I know—Q3 F24 feels like ancient history at this point, but great things take time. Zoomd is in a position of strength, with everything on the table.

If Zoomd were to make an acquisition, it wouldn’t just settle for a simple 1+1=2 deal. No, Zoomd is looking for a 1+1=3 kind of synergy—an acquisition that brings not just assets, but an entirely new set of clients, expanding the company’s reach and impact.

Patience, friends—good things are brewing!

6) Does being listed on a smaller exchange impact Zoomd’s growth and recognition?

At this point, does it really matter whether the company is on the Venture Exchange, CSE, or TSX? In the grand scheme of things, companies that consistently deliver strong results will eventually get the recognition they deserve—regardless of where they’re listed. Paying hefty commissions just for the sake of a bigger exchange doesn’t always make sense.

That being said, some banks are already telling the company, “You're on the radar, just stay the course, keep delivering, and let’s build on this momentum. When the time is right, we’ll help you take that next step.”

Translation? Focus on growth first, and the uplisting will take care of itself.

7) Wouldn’t releasing preliminary results and obtaining analyst coverage provide more visibility and reassurance to investors?

In my view, these are more cosmetic concerns than fundamental ones. The real power lies in the earnings themselves. What tangible value do analyst coverage and forecasts bring when the company is laser-focused on delivering strong financial results? Having an analyst issue a forecast with comps and a price target doesn’t change the fact that Zoomd Technologies is significantly undervalued compared to its peers.

These are simply tools—nice to have, but not essential. I always come back to fundamentals. Through ongoing discussions with investors, banks, and industry experts, I haven’t yet seen a compelling reason to prioritize pre-releasing earnings or seeking analyst coverage. That said, I remain open to different perspectives.

I understand why some investors might be concerned—many competitors pre-release earnings, and the four-month gap between Q3 and Q4 results can feel like an eternity, especially in today’s volatile market. Providing preliminary data could offer some reassurance to investors during uncertain times.

However, let’s not forget that just two months ago, the company announced a list of new clients—each of them a major player. That alone signals substantial business momentum, worth far more than any short-term forecast.

8) Why do I believe ZOOMD Technologies is significantly undervalued, and what justifies my $1.80/share valuation target?

So, why did I decide to share my thoughts on ZOOMD Technologies? Frankly, I’m frustrated that the stock hasn’t received the valuation it deserves. But an undervalued stock doesn’t stay that way forever—sooner or later, a sharper investor will recognize the opportunity. The hardest part of investing? Patience.

At $0.63, ZOMD is trading at a deep discount compared to its industry peers listed in Canada. Based on FY24 results, I continue to believe ZOMD is worth $1.80 per share which would value to business at 12x EV/EBITDA based on F24 results.

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Thank you for reading. If you are not familiar with ZOMD’s story, please see my deep dive research report on ZOMD here