Year End Report 2020

Strong EBITDA and ARR growth finalize an eventful year

October – December 2020

• Net sales decreased by 28.1% to SEK 102.7 (142.8) million
• SaaS-revenues amounted to SEK 39.0 (40.0) million. At constant exchange rates SaaS-revenues increased by 3.3%
• EBITDA amounted to SEK 20.1 (21.2) million
• ARR amounted to SEK 160.3 million compared with SEK 156.6 million in the previous quarter. At constant exchange rates, ARR increased by 3.7%
• Operating profit amounted to SEK 11.2 (12.8) million
• Earnings per share before and after dilution amounted to SEK -0.05 (0.07) and SEK -0.05 (0.07) respectively

January – December 2020

• Net sales decreased by 15.4% to SEK 366.2 (433.0) million
• SaaS-revenues amounted to SEK 155.2 (137.1) million. At constant exchange rates, SaaS-revenues increased by 17.4%
• EBITDA amounted to SEK 38.5 (52.2) million
• Adjusted for non-recurring items EBITDA amounted to SEK 55.0 (52.2) million
• ARR amounted to SEK 160.3 (165.5) million. At constant exchange rates, ARR increased by 1.3%
• Operating profit amounted to SEK 3.7 (3.4) million
• Earnings per share before and after dilution amounted to SEK -0,63 (0,22) and SEK -0,63 (0,22) respectively

Significant events during the quarter

• ZetaDisplay in Norway restarted deliveries of music management services to 52 7-eleven convenience stores.
• ZetaDisplay entered into a ten-year supply agreement with SJ Norge, a subsidiary of SJ in Sweden.
• ZetaDisplay won the international AV Award in the category "Leisure and Hospitality" for Digital Signage installations on the Hurtigruten expedition vessel.
• ZetaDisplay launched its next-generation software platform for scheduling and distributing cloud-based content.
• The Extraordinary General Meeting on December 11 resolved to issue a maximum of 500,000 warrants to Magari Venture A/S.
• ZetaDisplay extended its delivery agreement for Digital Signage solutions with Total in the Netherlands.

Significant events after the quarter

• ZetaDisplay broadens its cloud-based Digital Signage software platform with Digital Out of Home functionality.
• Hans van't Hoff has been appointed Chief Operations Officer (COO).

CEO comment

Strong EBITDA and ARR growth finalize an eventful year

A strong increase in profitability in the fourth quarter ends 2020. The shift in the revenue mix towards SaaS revenues, a conscious focus on strategic priorities and good cost control lifted the EBITDA margin to 19.5%. SaaS-revenues amounted to SEK 39.0 (40.0) million. At constant currency it represents an increase of 3.3%. ARR amounts to SEK 160.3 million, an increase of 2.4% compared to the previous quarter.