Zaptec (ZAP) Q2 2024 earnings summary

Executive summary

• Achieved several milestones for European growth, including strategic collaborations with Polestar and PostNord, and a €23 million contract with Spirii for 45,000 chargers.

• Announced Zaptec Go 2, a next-gen charger with MID certification and bi-directional capabilities, launching in Q4 2024 and unlocking new EU markets.

• Demonstrated strong financial performance and EBITDA growth despite a weak European EV market.

• Expanded presence to 18 of Europe’s 20 largest EV markets, with new distributors and increased B2B engagement.

• Maintained sufficient liquidity, projected to improve as inventory normalizes.

Financial highlights

• Q2 2024 revenue was 341 MNOK, up 14% sequentially but down 2% year-over-year.

• Order intake reached 342 MNOK, with an order backlog of 456 MNOK at quarter-end.

• Gross margin improved to 38% from 35% in Q2 2023.

• EBITDA rose to 34 MNOK (10% margin), up 143% year-over-year.

• Opex reduced to 98 MNOK from 115 MNOK in Q1 2024 and 106 MNOK in Q2 2023.

Outlook and guidance

• Expects continued sequential revenue growth, strong gross margin, and less volatility in quarterly EBITDA.

• Inventory normalization underway, supporting improved liquidity.

• Aims to sustain leadership in core markets and accelerate growth in new and existing EU markets.

• Revenue growth anticipated for 2024, with stronger growth expected in 2025 as new EU regulations drive EV adoption.

• Ongoing cost focus and technical development to enable entry into new markets.