Increased SaaS revenues and operational efficiency lead to strong EBITDA
First quarter - January -
- 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 toSEK 13.3 million - ARR amounted to
SEK 173.5 million compared toSEK 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) andSEK 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) functionalityZetaDisplay announces that Hans van 't Hoff has been appointed Chief Operations OfficerZetaDisplay has renewed the Digital Signage contract with Randstad Netherlands for an additional three years until 2024ZetaDisplay acquires NORDLAND systemsGmbH with preliminary net sales for 2020 ofSEK 78.4 million , SaaS revenues ofSEK 16.4 million and an EBITDA ofSEK 6.4 million ZetaDisplay announces that the Board of Directors ofZetaDisplay AB has decided to conduct a review of strategic alternatives forZetaDisplay 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 toApril 27, 2021 ZetaDisplay receives the global Digital Signage Award for its SNØ installation inOslo, Norway
CEO comment
Increased SaaS revenues and operational efficiency lead to strong EBITDA
Net sales for the quarter amounted to
Continued strong customer base
The customer base is intact and increasing, however, demand for new projects continues to be prudent. Regulations and lockdowns in the company's main markets shift decision-making processes among customers. We are steadily increasing our delivery capacity and expanding our offering, and this strengthens the margin as well as our partnership with customers.
The international framework agreements are developing in line with our plan and confirm our unique position to deliver, operate and develop complex global digital transformation projects.
Expansion into
The acquisition of German NORDLAND systems
Scalable and efficient organization delivers
The global function-based organisation, that was introduced a year ago, has led to increased harmonisation of working methods, broadening of product and service offerings, as well as strengthening operational capabilities and more efficient investments. The economies of scale increase our delivery capability, creating added value for customers. At the same time, efficient investments lead to increased profitability, which provides us room for continued investments in our offering.
An example of new functionality for our products and service offerings is the investment into a Digital-Out-Of-Home application that was launched during the quarter. We will conduct frequent launches of new functionality during the year to secure and strengthen our competitiveness. Our good financial position and the high share of SaaS revenues create the conditions for continued strategic investments.
Our employees still work largely from home. Through good collaboration, great commitment, efficient systems and processes, the entire business remains in full operational mode.
Outlook
As described in the year-end report for 2020, we expect a gradual normalization of demand in 2021. The first quarter has shown that decision-making processes are still longer than normal, however, we see clear indicators that demand is returning. We participate in several major international tenders and believe that the ongoing digitalization in society will accelerate once restrictions are removed. We maintain our positive view of a growing recovery in project sales during the second half of the year.
Our improved international delivery capabilities are well in line with the digital transformation in society, and through the acquisition of Nordland we have opened for expansion in German-speaking markets (DACH). We continuously follow up our long-term financial targets, where the goal is to achieve
I feel great pride in our performance during the quarter, employee engagement, the trust of our customers and our advancement in strategic priorities. We have developed as an organization during challenging times and strengthened our offering and position. We look forward to continuously driving the consolidation of the European digital signage market, both organically and through further acquisitions.
Malmö,
Per Mandorf
President and CEO
This report has not been reviewed by the company’s auditor and is a translation of the original Swedish year-end report that has been formally approved by the Board of Directors
This interim report is such information that
For further information, please contact:
Per Mandorf, President & CEO
Mobile: +46 704-25 82 34
E-Mail: per.mandorf@zetadisplay.com
Jacob Stjernfält, CFO
Mobile: +46 768-75 41 77
E-Mail: jacob.stjernfalt@zetadisplay.com
Mobile: +46 708-45 80 54
E-Mail: daniel.oelker@zetadisplay.com
About
Attachment
- 20210427 ZD Interim Report FINAL ENG Q1 2021
© OMX, source