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.