Strengthening Growth and Strategic Wins with ZetaDisplay AB

Positive Growth and Strategic Developments at ZetaDisplay

As ZetaDisplay AB (publ) showcases its progression through the latest financial quarter, the numbers tell a remarkable story. Between the months of October and December 2024, the company reported significant growth figures, making substantial advancements in its operations.

Impressive Financial Performance

The adjusted recurring revenue surged by an impressive 16.8%, reaching SEK 65.8 million compared to last year's SEK 56.3 million. This upward trend in recurring revenue signifies ZetaDisplay's robust business model, which capitalizes on long-term partnerships and client loyalty.

The overall recurring revenue rose as well, climbing by 9.7% to SEK 65.8 million, illustrating a solid continuation of the company's core strengths. Moreover, adjusted net sales increased by 15.2%, totaling SEK 172.8 million, compared to SEK 150.0 million from the previous year. It is notable that net sales also saw an uplift of 5.1%, reaching SEK 169.6 million, further affirming the company's market presence.

Another noteworthy point is the adjusted gross margin, which improved significantly to 55.4% from 43.5%, indicating enhanced operational efficiency. The overall gross margin increased to 53.4% from 50.8%. This is a clear testament to ZetaDisplay's commitment to maintaining cost efficiencies while driving revenue growth.

CEO's Insight on Achievements

Anders Olin, the President and CEO of ZetaDisplay, expressed pride in the company’s achievements over the fourth quarter in his recent comments. He highlighted that the net sales were boosted to SEK 172.8 million, supported by a significant increase in recurring revenue. This growth reflects ZetaDisplay's focus on sustainable profit generation while also being vigilant about costs.

In 2025, ZetaDisplay marked a pivotal moment by entering an exclusive framework agreement with Ruter, which oversees the public transport systems in Oslo. This agreement aims at revolutionizing the digital signage across the transportation network. Such strategic projects position the company favorably for future growth.

Further bolstering its portfolio, ZetaDisplay renewed a multi-year agreement with its leading retail client, optimally enhancing its service offerings globally while instilling confidence in existing clients. Additionally, the partnership with Hyundai extends its reach into the DACH automotive sector, signifying the company's adaptability across various industries.

Ongoing Integration and Future Plans

Another exciting development for ZetaDisplay is the integration of Beyond Digital Solutions Ltd, a recent acquisition. The firm is transitioning its operations to utilize the proprietary Engage software suite, strengthening its service capabilities in the UK market and paving the way for growth in the forthcoming years.

Moreover, the Liveqube audio solutions service continues to excel, achieving record license numbers. This speaks volumes about the increasing demand for integrated customer engagement solutions, a trend ZetaDisplay is keen to harness.

A Focused Outlook

With a unified operational strategy across various regions, ZetaDisplay aims to maintain its stature as a frontrunner in the digital signage sphere. The company's strategic alignment reflects a commitment to innovation and customer engagement, essential for accelerating its growth trajectory.

As ZetaDisplay proceeds into the new year, it prioritizes long-term value creation through operational excellence and deeper customer relationships. These strategies are designed to ensure that the company not only meets but exceeds the expectations of its clients and stakeholders.

Anders Olin concluded his remarks with appreciation for the dedicated workforce and ongoing client relationships, which are pivotal to ZetaDisplay's success and growth in the digital signage landscape.

Frequently Asked Questions

What were the key financial highlights for ZetaDisplay in Q4 2024?

ZetaDisplay reported a 16.8% increase in adjusted recurring revenue and a 15.2% growth in adjusted net sales, reflecting strong performance.

How does ZetaDisplay plan to enhance its offerings in the future?

The company is focusing on integrating its proprietary software and expanding service capabilities, which includes a significant upgrade in digital signage solutions.

What strategic partnerships has ZetaDisplay entered into recently?

Notable partnerships include an agreement with Ruter for digital signage in Oslo and a renewed global framework deal with a major retail client.

What is the estimated impact of the Beyond Digital acquisition?

The acquisition supports ZetaDisplay's goal of enhancing its service offerings and market presence in the UK through proprietary technology.

How does ZetaDisplay ensure operational excellence?

The company emphasizes local responsibilities, unified customer care, and ongoing investments in high-quality proprietary software to drive efficiency.

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