Zaptec (ZAP) Q3 2024 earnings summary

Executive summary

• Revenue declined 26% year-over-year to 299 MNOK, but market share increased despite a weak EV market.

• Gross margin remained strong at 39%, and positive EBITDA was achieved despite challenging conditions.

• Inventory reduced by 70 MNOK in the quarter, with normalization expected by 2025.

• Liquidity remains sufficient, with cost control and delivery capacity maintained.

• Well positioned for 2025 with new product launches and anticipated market recovery.

Financial highlights

• Q3 2024 revenue was 299 MNOK, down 26% year-over-year.

• Order intake reached 244 MNOK, with a backlog of 365 MNOK entering Q4.

• Gross margin stable at 39% for the quarter.

• OPEX reduced to 112 MNOK from 120 MNOK year-over-year.

• EBITDA at 4 MNOK, down from 38 MNOK in Q3 2023.

Outlook and guidance

• Market recovery expected in 2025, driven by stricter EU CO2 requirements, affordable EVs, and lower battery prices.

• Launch of Zaptec Go 2 and Zaptec Pro Eichrecht planned for Q1 2025, targeting major EU markets.

• Focus on cost efficiency, scalable business model, and building B2B partnerships.

• Sufficient liquidity to navigate the current market and well positioned for 2025.