Q: ZDC reported earnings. What are your thoughts and can you explain strengths and weaknesses? How does the future look? Time to complete a position or hold back?
5i Research Answer:
ZDC reported Q4 earnings with $17.8 mln in revenue and $7.1 mln in adjusteed EBITDA which equates to year over year growth of 79% and 82% respectively. Revenue grew 12% quarter over quarter. The US made up 43% of revenues in the quarter and it is growing fast in this region.
We think the quarter looks good and they are doing the right things to build their market in the US. EPS of $0.03 beat estimates of $0.01 but revenues were a little shy at $17.88 mln vs $18.5 mln expected. Growth looks good regardless and we don't see a whole lot to pick on.