Published on: April 20, 2021
FY21E trading update – Accelerated growth
ZOO Digital has issued a trading update for the year to 31 March 2021, now expecting revenues of $39.5m, compared to previous guidance for revenues to exceed $38m, with adjusted EBITDA expected to more than double from FY20 to around $4.5m for FY21E. Net cash at 31 March 2021 was $2.9m, prior to the proceeds of the £7.4m fundraising, which reflects strong cash generation and tight cost management. We adjust our FY21E forecasts in line with ZOO’s new guidance (we previously forecast $38.5m revenue and $4.7m adjusted EBITDA) and make minor changes to our FY22E estimates. We note that ZOO’s cash position is much stronger than our $0.6m net cash forecast, excluding fundraising proceeds. ZOO also reports that trading in the first weeks of FY22E has been strong, with a significant pipeline of customer projects committed for Q1, and the Board remains confident in ZOO’s ability to deliver profitable progress in the current financial year.