Interim Report January - March 2021

Increased SaaS revenues and operational efficiency lead to strong EBITDA

First quarter - January - March 2021

• Net sales decreased by 14.3% to SEK 87.8 (102.4) million
• SaaS revenues amounted to SEK 40.1 (39.5) million. Organically, SaaS revenues increased by 2.2% at constant exchange rates
• EBITDA amounted to SEK 11.4 (-6.2) million. Adjusted for acquisition cost, EBITDA for the first quarter amounted to SEK 13.3 million
• ARR amounted to SEK 173.5 million compared to SEK 160.3 million in the previous quarter
• Operating profit amounted to SEK 3.1 (-15.5) million
• Earnings per share before and after dilution amounted to SEK 0,08 (-0,56) and SEK 0,08 (-0,56) SEK respectively

Significant events during the quarter

• ZetaDisplay expands its cloud based Digital Signage software platform with Digital Out of Home (DOOH) functionality
• ZetaDisplay announces that Hans van 't Hoff has been appointed Chief Operations Officer
• ZetaDisplay has renewed the Digital Signage contract with Randstad Netherlands for an additional three years until 2024
• ZetaDisplay acquires NORDLAND systems GmbH with preliminary net sales for 2020 of SEK 78.4 million, SaaS revenues of SEK 16.4 million and an EBITDA of SEK 6.4 million
• ZetaDisplay announces that the Board of Directors of ZetaDisplay AB has decided to conduct a review of strategic alternatives for ZetaDisplay with the purpose of creating best possible value for the shareholders
  
  

Significant events after the quarter

• ZetaDisplay announces that the publication of the interim report for January-March 2021 will be brought forward to April 27, 2021
• ZetaDisplay receives the global Digital Signage Award for its SNØ installation in Oslo, Norway

 

CEO comment
Increased SaaS revenues and operational efficiency lead to strong EBITDA

ZetaDisplay continues to increase its profitability and delivers a strong EBITDA in the first quarter of 2021. In a prudent market, the EBITDA margin lifts to 13.0 (-6.0)%, thanks to higher SaaS revenues, scalability in the organization and continued cost control. SaaS revenues amounted to SEK 40.1 (39.5) million and represent 45.7 (38.6) % of net sales. ARR amounts to SEK 173.5 million.

Net sales for the quarter amounted to SEK 87.8 (102.4) million, a decrease of 14.3% compared to the same quarter last year. Project sales were 24.3% lower than the corresponding period last year. Gross profit increased to SEK 57.2 (54.0) million. The gross margin rose to 65.2 (52.7) % due to higher SaaS revenues. EBITDA for the period amounted to SEK 11.4 (-6.2) million.