Year end report 2023
February 29 2024 - 2:00AM
UK Regulatory
Year end report 2023
CONTINUED SaaS GROWTH IN THE FOURTH QUARTER
October – December 2023
• SaaS revenues increased by 12.7% to SEK 55.1 (48.9) million
• Net sales slightly increased to SEK 161.4 (160.6) million
• Gross margin increased to 50.8% (44.5%)
• Adjusted EBITDA was SEK 31.8 (9.8) million
• Operating loss was SEK -83.9 (-6.6) million
January – December 2023
• SaaS revenues increased by 11.9% to SEK 214.1 (191.4) million
• Net sales decreased year on year, SEK 521.3 (527.7) million
• Gross margin improved to 58.0% (53.9%)
• Adjusted EBITDA was higher than the prior year at SEK 74.6 (60.2)
million
• Operating loss was SEK -106.4 (-4.6) million
Significant events during the quarter
• On 23 October 2023, the Group announced that Anders Olin was
appointed as CEO & President of ZetaDisplay. A handover was
completed with the former CEO, Per Mandorf, who left the business
on 31 December 2023.
• On 13 November 2023, ZetaDisplay announced that it had entered
into a multi-year framework agreement with Axfood, initially for
the development and establishment of a new digital signage
solutions concept for leading Swedish grocery retail chain Hemköp
covering 220 stores.
Significant events after the quarter
• On 22 February 2024, the Group announced that Claes Pedersen was
appointed as CFO of ZetaDisplay. The interim CFO, Jog Dhody, will
remain with ZetaDisplay throughout Q1 2024 to handover.
CEO COMMENT
Continued SaaS growth in the fourth quarter
Net sales for the quarter amounted to SEK 161.4 (160.6) million.
SaaS revenues were SEK 55.1 (48.9) million and represented 34.1%
(30.5%) of net sales. Reported EBITDA was SEK 2.2 (2.9) million.
Adjusted for Hanover costs and non-recurring items, EBITDA amounted
to SEK 31.8 (9.8) million.
Comment
Our fourth quarter was characterized by a stable, continued growth
in SaaS revenues and increased gross margins. Simultaneously we
have experienced challenges to our NRR (non-recurring revenue)
business due to reduced overall customer hardware investments and
some delayed projects. At the same time, we see continued healthy
and growing activity from our international customer base, with
several new project initiatives connected to our increasing
investments in our in-house software platform aimed at further
scaling our international services and product range.
During the quarter we have also initiated several key integration
activities of the recently acquired PeakMedia Digital Signage GmbH
in Austria. The integration is progressing well with multiple
cross- country growth activities started in addition to wider group
alignment. Simultaneously we’ve continued to develop our country
markets and group structure for growth transformation across
ZetaDisplay, as well as executed key changes in the leadership team
and group organization blueprint. Changes include new CEO, new and
recent country heads for key markets Germany, and The Netherlands
including the US market, and the formation of a new Global Accounts
team to support and accelerate growth in our international
enterprise customer portfolio.
Outlook
Our long-term plan and investment initiatives for growth continue
by advancing our in-house software platform and migrating acquired
customers’ 3rd party software, resulting in a positive outlook
especially in our SaaS business area. In addition, we expect recent
acquisitions and existing M&A activities to yield additional
growth in the medium term. We see some uncertainty in the
short-term market conditions as well as intermittent delays in some
customer projects, especially related to the NRR area. As before,
we continue to actively monitor market development and to manage
costs whilst prioritizing key investments for long-term growth and
customer focus.
I would like to thank all our co-workers for their tireless
commitment to our customers and thank our customers for their
continued trust.
Malmö, February 29, 2024
Anders Olin
President and CEO
Full Year End report attached and available on
https://ir.zetadisplay.com/
This report has not been subject to review by the
company's auditor.
This information is information that ZetaDisplay
AB (publ) is obliged to make public pursuant to the EU Market Abuse
Regulation. The information was submitted for publication, through
the agency of Anders Olin, at 08.00 CET on 29 February
2024.
Upcoming reporting sessions
ZetaDisplay AB (publ) annual financial statements will be published
on ir.zetadisplay.com during the last week of April. The interim
report January – March will be published on ir.zetadisplay.com in
May 2024.
For further information please contact:
Anders Olin, President & CEO
Mobile: +46 761-01 14 88
E-Mail: anders.olin@zetadisplay.com
Jog Dhody, Interim CFO
Mobile: +44 778 652 0802
E-Mail: jog.dhody@zetadisplay.com
ABOUT ZETADISPLAY
Founded in 2003, ZetaDisplay is a leader in the Nordic region
and second in Europe and we drive the digital transformation in
physical environments on a daily basis. Our solutions, concepts and
software digitize, influence and inform people's behavior and
decision-making in stores, in public environments, in restaurants,
in hospitality, during travel and in workplaces. Our solutions are
known as Digital Signage which we develop and offer as SaaS
solutions. We are a global leader that actively influences the
development of the international Digital Signage market
organically, through innovation and through acquisitions.
ZetaDisplay is based in Malmö, has a turnover of SEK +500
million and employs +200 co-workers in offices in seven European
countries. In total, the company manages more than 100.000
installations globally in more than 50 markets. ZetaDisplay is
owned by the investment company Hanover Investors. More information
at www.ir.zetadisplay.com and www.hanoverinvestors.com.
- ZetaDisplay AB (publ) Year End Report 2023
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