Zoomability (ZOOM) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 were SEK 624k, down from SEK 1,122k in Q3 2023, reflecting production and invoicing challenges.

• EBIT for Q3 2024 was SEK -2,503k, compared to SEK -2,307k in Q3 2023; net loss per share improved to SEK -0.16 from SEK -0.27.

• A joint venture in China was established, expected to significantly reduce production costs and enable international expansion.

• Financial difficulties persisted as a planned SEK 8m capital injection failed, leading to a more costly SEK 6m rights issue.

• 2024 is expected to be another weak year, but groundwork is laid for a stronger 2025 with new markets and products.

Financial highlights

• Net sales for the nine months ended September 30, 2024, were SEK 2,823k, down from SEK 4,703k year-over-year.

• EBIT for the nine-month period was SEK -6,438k, compared to SEK -5,255k year-over-year.

• Net loss after financial items for the nine months was SEK -6,675k, versus SEK -5,465k in the prior year.

• Equity as of September 30, 2024, was SEK 4,539k, down from SEK 7,934k a year earlier.

• Cash and cash equivalents at period end were SEK 2,148k.

Outlook and guidance

• 2024 is projected to remain below initial expectations due to financial constraints and production issues.

• 2025 is expected to see increased production, sales in China and South Korea, and a stronger push into the US market.

• New product launches and expanded international distribution are planned for 2025.