ZetaDisplay (ZETA) Q2 2024 earnings summary

Executive summary

• Net sales rose 28.7% year-over-year to SEK 163.3 million, driven by strategic acquisitions and strong SaaS growth.

• SaaS revenue increased 24.5% to SEK 66.9 million, now 40.9% of net sales, highlighting recurring revenue focus.

• Adjusted EBITDA improved to SEK 27.9 million (up from SEK 15.3 million), with margin rising to 17.1% from 12.0%.

• Gross margin declined to 55.5% from 61.4%, mainly due to acquired companies with lower SaaS margins.

• Loss for the quarter after tax widened to SEK -25.6 million from SEK -9.5 million.

Financial highlights

• Net sales: SEK 163.3 million (Q2 2023: SEK 126.9 million); SaaS revenue: SEK 66.9 million (Q2 2023: SEK 53.7 million).

• Adjusted EBITDA: SEK 27.9 million (Q2 2023: SEK 15.3 million); adjusted EBITDA margin: 17.1% (Q2 2023: 12.0%).

• Operating loss: SEK -11.1 million (Q2 2023: SEK -0.2 million); operating margin: -6.8% (Q2 2023: -0.2%).

• Cash flow from operating activities: SEK -19.8 million (Q2 2023: SEK 3.0 million); total cash flow: SEK -74.9 million.

• Net debt: SEK 346.2 million (Q2 2023: SEK 281.6 million); equity ratio: 23.1% (Q2 2023: 34.3%).

Outlook and guidance

• Strategic growth plan for 2024 continues, with focus on scaling organization and integrating acquisitions.

• Medium-term growth expected from recent acquisitions and organic expansion, supported by a strong project pipeline.

• Commitment to long-term growth, customer satisfaction, and product innovation remains a priority.