Interim Report January - March 2021

April 27, 2021 2:00 AM EDT

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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.

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 Europe's largest Digital Signage market

The acquisition of German NORDLAND systems GmbH in early March follows the Group's strategy to drive consolidation and growth in the European market. Nordland is a leading player in Europe's single largest Digital Signage market. The company shows good profitability, stable and increasing SaaS revenues and an attractive customer base. Integration has begun and we focus on new sales acquisition, an expanded offering, and knowledge transfer of the product and service portfolio.

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.


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 SEK 200 million in SaaS revenues and SEK 100 million in EBIT by the end of 2022. These objectives remain within reach.

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, 27 April 2021

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 ZetaDisplay AB (publ) is required to disclose under the EU market abuse regulation. The information was submitted, on the authority of Per Mandorf, for publication on 27 April 2021 at 08:00

For further information, please contact:

Per Mandorf, President & CEO
Mobile: +46 704-25 82 34

Jacob Stjernfält, CFO
Mobile: +46 768-75 41 77

Daniel Oelker, CCO
Mobile: +46 708-45 80 54

About ZetaDisplay

ZetaDisplay acts at the heart of digital transformations in physical environments. We contribute to nudging peoples’ behaviour at the point-of-decision in retail environments, public spaces, and workplace environments. Our solutions are known as Digital Signage that we develop and offer as SaaS-solutions. We are a European leader and intend to drive the further consolidation of the market organically and through acquisitions.

ZetaDisplay has its head office in Malmö. The company generates revenues of approx. SEK 450 million and employs 200 staff at ten offices in six European countries and the USA. In total, the company handles more than 70,000 installations on over 50 markets. The share is listed on Nasdaq Stockholm [ZETA]. More information at



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