Zaptec (ZAP) Q2 2024 earnings summary

Executive summary

• Achieved several milestones supporting European growth, including strategic collaborations with Polestar and Spirii, and the announcement of Zaptec Go 2 for major EU markets, launching in Q4 2024.

• Secured a €23 million contract with Spirii to deliver 45,000 chargers across Europe, not yet included in the order backlog.

• Demonstrated strong financial performance with EBITDA more than doubling year-over-year, despite a weak EV market.

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

• Maintained focus on cost efficiency and liquidity improvement.

Financial highlights

• Q2 2024 revenue was 341 MNOK, up from 300 MNOK in Q1 2024 but down 2% year-over-year.

• Order intake was 342 MNOK, supporting a backlog of 456 MNOK, both down year-over-year.

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

• OPEX reduced to 98 MNOK from 115 MNOK in Q1 2024 and lower than Q2 2023.

• EBITDA rose to 34 MNOK (10% margin), up 143% from Q2 2023.

Outlook and guidance

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

• Inventory normalization underway, with inventory declining since July and expected to continue.

• Liquidity projected to strengthen in the second half of the year due to reduced production and increased sales.

• Revenue growth anticipated for 2024, with stronger growth expected in 2025.

• Long-term EBITDA margin target remains at 20%.