ZETADISPLAY AB (publ) INTERIM REPORT 1 JANUARY – 30 SEPTEMBER 2024 (Q3)

Q3 Interim report August – October 2024 for ZetaDisplay AB (publ) is now available at https://ir.zetadisplay.com/financial-reports

Report summary:

JULY – SEPTEMBER 2024

• Recurring revenue, adjusted for discontinued operations*, increased by 20.6% to SEK 62.8
  (52.1) million
• Recurring revenue, excluding adjustments for discontinued operations, increased by 13.6 %
  to 62.8 (55.3) million
  
• Net sales, adjusted for discontinued operations*, increased by 30.7% to SEK 148.8 (113.8)
  million
• Net sales, excluding adjustments for discontinued operations, increased by 28.9 % to SEK
  148.8 (115.4) million
• Gross margin* decreased to 57.9% (62.5%)
  
• Adjusted EBITDA* was SEK 22.9 (12.0) million

CEO comment

GROWTH IN RECURRING REVENUE AND STRATEGIC EXPANSION

Net sales for the quarter increased to SEK
148.8 (113.8) million, with recurring revenue
rising by 20.6% to SEK 62.8 (52.1) million,
representing 42.2% of net sales. The growth in
recurring revenue reflects our strategic focus
on building a solid foundation of recurring
revenue streams.

Simultaneously our overall adjusted EBITDA
grew to SEK 22.9 (12.0) million underscoring
our ability to manage costs effectively and
enhance profitability. This achievement is
particularly noteworthy given the somewhat
reduced gross margin. The lower gross margin
is mainly attributable to the increased share of
third- party solutions in our recurring revenue
mix following recent acquisitions and is
anticipated to improve as integration and
software migration activities progress.
During the quarter, we signed a notable new
deployment project in Germany with an
existing key client, which has now entered the
full execution phase. Additionally, we recently
won a significant tender for a new enterprise
customer contract in Sweden with
Praktikertjänst, a leading national healthcare
provider. The contract involves the rollout of a
completely new digital signage network across
1,000 locations, comprising approximately
2,500–3,000 screens.

We effectively continue to grow service
projects outside Europe, both in the US and
MEA regions. Our pipeline of mid- and long-
term prospects, both locally and
internationally, has grown considerably, driven
by a strong commercial trend with new
business wins. The group-wide sales
transformation project is nearing completion,
resulting in a rapidly growing sales funnel
across all countries. Notably, orders signed
from new customers have more than doubled
year-to-date. While we experienced continued
delays in certain hardware projects during Q3,
our overall momentum remains positive,
fuelled by growth in both new and existing
business.

Our acquisition of Beyond Digital Solutions Ltd
in the UK earlier this year continues to
generate significant value for the group, both
in terms of financial performance and
enhanced market penetration for our software
products. Our software suite recently achieved
a record number of recognitions at key
international awards, further enhancing its
reputation as a high-quality offering and
strengthening our ability to position our
solutions across a wide range of markets and
segments.

OUTLOOK
Our long-term plan and investment initiatives
for growth are now visibly supported by the
execution of our 2024 strategic growth
transformation plan.
In addition, our acquisitions provide additional
growth in the medium term, alongside
increased organic growth, showcased by new
key customer projects, strong growth in new
prospects pipeline as well as a growing share
of incoming requests.
Hanover transformation projects are nearing
completion, and we anticipate significantly
lower exceptional costs related to these
initiatives next year. As always, we maintain
our commitment to prioritizing and investing in
activities that foster long-term growth and
enhance our focus on customer satisfaction in
addition to enhancing our software product
quality. I would like to thank all our co-
workers for their tireless commitment to
customer success and thank our customers
for their continued trust.

Anders Olin

President and CEO

Malmö, 28 November 2024

This information is information that ZetaDisplay AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of Anders Olin, at 08:00 CET on 28 November 2024

- Full report attached and available at https://ir.zetadisplay.com

Upcoming reporting sessions

ZetaDisplay AB (publ) year-end report will be
published on ir.zetadisplay.com in February,
week 9, 2025.

For further questions, please contact:

Anders Olin, President & CEO
Mobile: +46 076-101 14 88
E-Mail: anders.olin@zetadisplay.com

Claes Pedersen, CFO
Mobile: +45 23-68 86 58
E-Mail: claes.pedersen@zetadisplay.com

ABOUT ZETADISPLAY
20 years of leadership and innovation in digital signage.
ZetaDisplay was founded 2003 in Sweden as one of the early pioneers of digital signage. We are one of the leading European corporations in the digital signage market and a leading force in the European digital signage industry. Our proprietary software platform, digital business development and consulting services, innovative digital signage solutions, and creative concepts regularly inspire- influence and guide millions of people every day in retail environments, in restaurants, on advertising screens, in factories, on trains, on cruise ships, in stadiums, in workplaces and in all types of public spaces indoor and outdoor. ZetaDisplay is one of the largest leading European digital signage companies with direct operations in eight European countries and the US with 120,000 active installations in over 50 countries, across all major continents where we are the business partner of choice for many of the worlds most respected blue-chip brands and companies.

ZetaDisplay is based in Malmö-Sweden, has a turnover of SEK +500 million and employs approx. 240 co-workers. ZetaDisplay is owned by the investment company Hanover Investors. More information at www.ir.zetadisplay.com and www.hanoverinvestors.com.

Attachment

• Interim Report January - September 2024