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zSpace Reports Fourth Quarter and Full Year 2024 Financial Results

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zSpace (NASDAQ: ZSPC) reported its Q4 and full-year 2024 financial results, marking its first quarter as a public company. The company completed its IPO in December 2024, raising funds through 1,875,000 shares at $5.00 per share.

Key financial highlights include:

  • Q4 2024 revenue of $8.5M (vs $12.1M in Q4 2023)
  • Full-year 2024 revenue of $38.1M (vs $43.9M in 2023)
  • Q4 gross margin improved to 40.7% (from 34.7%)
  • Full-year net loss widened to $20.8M (from $13.0M)

The company secured a significant $5M deal with St. Louis Public Schools and launched its Career Readiness Solution featuring an AI Career Coach. zSpace ended 2024 with $9.2M in backlog and $4.9M in cash. The Annualized Contract Value (ACV) of renewable software reached $11.3M, a 6% increase year-over-year, while Net Dollar Revenue Retention was 92%.

zSpace (NASDAQ: ZSPC) ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024, segnando il suo primo trimestre come azienda pubblica. L'azienda ha completato la sua IPO a dicembre 2024, raccogliendo fondi attraverso 1.875.000 azioni a $5,00 per azione.

I principali punti salienti finanziari includono:

  • Entrate del Q4 2024 di $8,5M (rispetto a $12,1M nel Q4 2023)
  • Entrate dell'intero anno 2024 di $38,1M (rispetto a $43,9M nel 2023)
  • Margine lordo del Q4 migliorato al 40,7% (dal 34,7%)
  • Perdita netta dell'intero anno ampliata a $20,8M (da $13,0M)

L'azienda ha ottenuto un importante contratto da $5M con le Scuole Pubbliche di St. Louis e ha lanciato la sua Soluzione di Prontezza Professionale con un AI Career Coach. zSpace ha chiuso il 2024 con $9,2M di arretrati e $4,9M in contanti. Il Valore del Contratto Annualizzato (ACV) del software rinnovabile ha raggiunto $11,3M, con un aumento del 6% rispetto all'anno precedente, mentre la Retenzione del Ricavo Netto in Dollari è stata del 92%.

zSpace (NASDAQ: ZSPC) reportó sus resultados financieros del cuarto trimestre y del año completo 2024, marcando su primer trimestre como empresa pública. La compañía completó su OPI en diciembre de 2024, recaudando fondos a través de 1,875,000 acciones a $5.00 por acción.

Los principales aspectos financieros incluyen:

  • Ingresos del Q4 2024 de $8.5M (frente a $12.1M en el Q4 2023)
  • Ingresos del año completo 2024 de $38.1M (frente a $43.9M en 2023)
  • El margen bruto del Q4 mejoró al 40.7% (desde el 34.7%)
  • La pérdida neta del año completo se amplió a $20.8M (desde $13.0M)

La compañía aseguró un importante contrato de $5M con las Escuelas Públicas de St. Louis y lanzó su Solución de Preparación Profesional con un AI Career Coach. zSpace terminó 2024 con $9.2M en cartera y $4.9M en efectivo. El Valor de Contrato Anualizado (ACV) del software renovable alcanzó $11.3M, un aumento del 6% interanual, mientras que la Retención de Ingresos Netos en Dólares fue del 92%.

zSpace (NASDAQ: ZSPC)는 2024년 4분기 및 연간 재무 결과를 보고하며, 공기업으로서의 첫 분기를 기념했습니다. 이 회사는 2024년 12월에 IPO를 완료하고 주당 $5.00로 1,875,000주를 통해 자금을 모았습니다.

주요 재무 하이라이트는 다음과 같습니다:

  • 2024년 4분기 수익 $8.5M (2023년 4분기 $12.1M 대비)
  • 2024년 연간 수익 $38.1M (2023년 $43.9M 대비)
  • 4분기 총 마진이 40.7%로 개선됨 (34.7%에서)
  • 연간 순손실이 $20.8M로 확대됨 (이전 $13.0M에서)

회사는 세인트루이스 공립학교와 500만 달러의 중요한 계약을 체결하고 AI 경력 코치를 특징으로 하는 경력 준비 솔루션을 출시했습니다. zSpace는 2024년을 $9.2M의 미수금과 $4.9M의 현금으로 마감했습니다. 갱신 가능한 소프트웨어의 연간 계약 가치(ACV)는 $11.3M에 도달했으며, 이는 전년 대비 6% 증가한 수치이며, 순 달러 수익 유지율은 92%였습니다.

zSpace (NASDAQ: ZSPC) a publié ses résultats financiers pour le quatrième trimestre et l'année 2024, marquant son premier trimestre en tant qu'entreprise publique. La société a complété son introduction en bourse en décembre 2024, levant des fonds grâce à 1 875 000 actions à 5,00 $ par action.

Les principaux points financiers comprennent :

  • Chiffre d'affaires du T4 2024 de 8,5 M$ (contre 12,1 M$ au T4 2023)
  • Chiffre d'affaires total de 2024 de 38,1 M$ (contre 43,9 M$ en 2023)
  • Marge brute du T4 améliorée à 40,7 % (contre 34,7 %)
  • Perte nette annuelle élargie à 20,8 M$ (contre 13,0 M$)

La société a sécurisé un contrat significatif de 5 M$ avec les écoles publiques de St. Louis et a lancé sa solution de préparation à la carrière avec un coach de carrière IA. zSpace a terminé 2024 avec un carnet de commandes de 9,2 M$ et 4,9 M$ en liquidités. La valeur de contrat annualisée (ACV) des logiciels renouvelables a atteint 11,3 M$, soit une augmentation de 6 % d'une année sur l'autre, tandis que la rétention des revenus nets en dollars était de 92 %.

zSpace (NASDAQ: ZSPC) hat seine finanziellen Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht und damit sein erstes Quartal als börsennotiertes Unternehmen markiert. Das Unternehmen hat im Dezember 2024 seinen Börsengang abgeschlossen und 1.875.000 Aktien zu je 5,00 $ ausgegeben.

Die wichtigsten finanziellen Highlights umfassen:

  • Umsatz im Q4 2024 von 8,5 Mio. $ (im Vergleich zu 12,1 Mio. $ im Q4 2023)
  • Umsatz für das gesamte Jahr 2024 von 38,1 Mio. $ (im Vergleich zu 43,9 Mio. $ im Jahr 2023)
  • Bruttomarge im Q4 auf 40,7% verbessert (von 34,7%)
  • Jährlicher Nettoverlust auf 20,8 Mio. $ ausgeweitet (von 13,0 Mio. $)

Das Unternehmen sicherte sich einen bedeutenden Vertrag über 5 Mio. $ mit den St. Louis Public Schools und startete seine Lösung zur Berufsorientierung mit einem KI-Karriere-Coach. zSpace schloss das Jahr 2024 mit einem Auftragsbestand von 9,2 Mio. $ und 4,9 Mio. $ in bar ab. Der annualisierte Vertragswert (ACV) für erneuerbare Software erreichte 11,3 Mio. $, was einem Anstieg von 6% im Jahresvergleich entspricht, während die Netto-Umsatzbindung 92% betrug.

Positive
  • Gross margin improved significantly to 40.7% in Q4 2024 from 34.7% year-over-year
  • Secured largest-ever $5M customer deal with St. Louis Public Schools
  • Software ACV increased 6% to $11.3M
  • Bookings excluding China grew 7% year-over-year to $39.9M
Negative
  • Q4 revenue declined 29.8% to $8.5M from $12.1M year-over-year
  • Full-year revenue decreased 13.2% to $38.1M from $43.9M
  • Net loss widened to $20.8M from $13.0M in 2023
  • Net Dollar Revenue Retention declined to 92%
  • Cash position remains relatively low at $4.9M despite recent IPO

Insights

zSpace's Q4 and FY2024 results present a mixed picture for investors. The company reported revenue declines of 29.8% for Q4 ($8.5 million vs. $12.1 million) and 13.2% for the full year ($38.1 million vs. $43.9 million), attributed to pre-IPO capital constraints limiting order fulfillment.

Despite top-line challenges, gross margins improved significantly to 40.7% in Q4 (up 597 basis points) and 40.9% for the full year (up 240 basis points), reflecting a strategic 5% shift from hardware to higher-margin software and services. The Q4 net loss narrowed to $3.6 million from $4.1 million, though the full-year loss widened to $20.8 million from $13.0 million.

The $9.2 million backlog at year-end represents over a full quarter of potential revenue, providing visibility into early 2025 performance. Key operational metrics show modest growth, with renewable software ACV increasing 6% to $11.3 million and full-year bookings up 1% to $41.5 million.

The December IPO timing ($9.375 million gross proceeds) meant fourth-quarter impact, but should alleviate the capital constraints that hampered 2024 performance. However, the $4.9 million cash position remains relatively modest given the quarterly cash burn, warranting careful monitoring of cash runway.

The $5 million St. Louis Public Schools deal highlights market validation in the K-12 segment, while the launch of their Career Readiness Solution demonstrates continued product innovation. This transition toward software and expanded content offerings should support margin improvement but may create revenue volatility during the shift.

SAN JOSE, Calif., March 27, 2025 (GLOBE NEWSWIRE) -- zSpace (NASDAQ: ZSPC) (“zSpace” or the “Company”), a leader in augmented and virtual reality solutions for education, is announcing its financial results for the three and twelve months ended December 31, 2024.

“We are thrilled to be announcing our first quarter as a public company,” said Paul Kellenberger, CEO of zSpace. “Throughout 2024, we achieved significant milestones, including our largest customer win to date with St. Louis Public Schools and the expansion of our Career Readiness Solution, featuring our innovative AI Career Coach.

“While we received IPO proceeds in early December, the late-quarter timing limited our ability to fulfill orders before year-end. As a result, we closed 2024 with $9.2 million in backlog, reflecting strong demand heading into 2025. With growing market opportunities and increasing adoption of immersive learning solutions, we remain focused on driving growth through deeper penetration in K-12 STEM and CTE markets, international expansion, and strategic investments in R&D and software acquisitions. Looking ahead, we are confident in our ability to build on our momentum and deliver long-term value for our shareholders.”

Fourth Quarter 2024 Financial Summary vs. Same Year-Ago Period

  • Revenue of $8.5 million vs. $12.1 million.
  • Gross margin of 40.7% vs. 34.7%.
  • Net loss of ($3.6) million vs. ($4.1) million.

Full Year 2024 Financial Summary vs. Same Year-Ago Period

  • Revenue of $38.1 million vs. $43.9 million.
  • Gross margin of 40.9% vs. 38.5%.
  • Net loss of $(20.8) million vs. $(13.0) million.

2024 Business Highlights

  • Secured $5 million deal with St. Louis Public Schools to provide a K-12 STEM solution, making it the Company’s largest customer win to date and demonstrating the Company’s impact on education at scale.
  • Expanded content offerings with the launch of the Career Readiness Solution, featuring a personalized “AI Career Coach,” which has been well-received by customers and addresses the growing demand for solutions bridging education and the workforce.
  • Received the Best of Show Award at ISTELive 24, the world’s largest annual K-12 education conference, from Tech & Learning for the Career Readiness Solution, reinforcing leadership in the education technology space.
  • On December 6, 2024, zSpace announced the completion of its initial public offering (IPO) of 1,875,000 shares of its common stock at $5.00. The shares of common stock began trading on the Nasdaq Global Market on December 5, 2024, under the ticker symbol “ZSPC”.

Fourth Quarter and Full Year 2024 Financial Results

Revenue in the fourth quarter of 2024 was $8.5 million compared to $12.1 million in the fourth quarter of 2023. For the full year 2024, revenue was $38.1 million compared to $43.9 million in 2023. The decreases were driven by capital constraints prior to the Company’s IPO, which limited its ability to fulfill backlog orders.

Annualized Contract Value (ACV) of renewable software at December 31, 2024, was $11.3 million, representing a 6% increase compared to $10.6 million a year ago. The increase was driven by the sales team’s execution to improve the software content on new deployments, and account management of renewing deals to drive retention and expansion among existing customers.

Net Dollar Revenue Retention (NDRR) at December 31, 2024, for customers with over $50,000 of ACV as of December 31, 2023, was 92%.

Bookings in the fourth quarter of 2024 were $5.3 million, down 3% compared to $5.5 million in the fourth quarter of 2023 (excluding China, the U.S. and rest-of-world, bookings were $5.3 million, up 5% year over year). For the full year 2024, bookings reached $41.5 million, an increase of 1% compared to $41.1 million a year ago (excluding China, the U.S. and rest-of-world, bookings were $39.9 million, up 7% year over year.)

Gross margin in the fourth quarter of 2024 was 40.7%, a 597-basis point improvement compared to 34.7% in the fourth quarter of 2023. For the full year 2024, gross margin was 40.9%, a 240-basis point improvement compared to 38.5% in 2023, attributable to a 5ppt mix shift from hardware to software and services during the year.

Operating expenses in the fourth quarter of 2024 were $6.2 million compared to $6.1 million in the fourth quarter of 2023. For the full year 2024, operating expenses were $33.2 million compared to $25.5 million a year ago. Excluding pre-IPO stock-based compensation expense, operating expenses were flat compared with a year ago.

Net loss in the fourth quarter of 2024 was ($3.6) million, compared to ($4.1) million in the fourth quarter of 2023. For the full year 2024, net loss was $(20.8) million, compared to ($13.0) million in 2023.

Balance Sheet

As of December 31, 2024, zSpace had approximately $4.9 million in cash and cash equivalents, compared to $3.1 million in cash and cash equivalents as of December 31, 2023.

Conference Call

zSpace will host a conference call at 8:00 a.m. ET / 5:00 a.m. PT on Friday, March 28, 2025, with the Company’s Chief Executive Officer, Paul Kellenberger, and the Company’s Chief Financial Officer, Erick DeOliveira. A live webcast of the call will be available on the Events and Presentations section of zSpace’s investor relations website.

To access the call by phone, please use this registration link and you will be provided with dial-in details.

To avoid delays, participants are encouraged to dial into the conference call 15 minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time on the Company’s website.

About zSpace

zSpace, Inc. (NASDAQ: ZSPC) delivers innovative augmented and virtual reality (AR/VR) experiences that drive achievement in STEM, CTE, and career readiness programs. Trusted by over 3,500 school districts, technical centers, community colleges, and universities, zSpace allows students and teachers to experience learning in the classroom that may otherwise be dangerous, impossible, counterproductive, or expensive using traditional techniques. Headquartered in San Jose, California, zSpace holds over 70 patents and our hands-on "learning by doing" solutions have been shown to enhance the learning process and drive higher student test scores, as evidenced by a study on the utility of 3D virtual reality technologies for student knowledge gains published in the Journal of Computer Assisted Learning in 2021.

Key Metric Definitions

We monitor the following key metrics to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. The calculation of the key metrics discussed below may differ significantly from other similarly titled metrics used by other companies, analysts, investors and other industry participants.

We reference bookings in this press release, which is an internal operational measure of the business. Bookings represent customer orders that have hardware, software and service components. Bookings indicate future revenue, which lags based on product shipping date, monthly recognition of certain subscription revenue and service delivery completion.

We reference Annualized Contract Value (ACV) in this press release, which is an internal operational measure of the business. To monitor our ability to retain and grow our customer base for our software we monitor the annualized contract value of active renewable software licenses.

We reference Net Dollar Revenue Retention (NDRR) in this press release, which is an internal operational measure of the business. We calculate our NDRR as of a given period end by starting with the ACV from all customers with contracts of at least $50,000 of ACV as of 12 months prior to such period end (“Prior Period ACV”) and calculating the ACV from these same customers as of the current period end (“Current Period ACV”). Current Period ACV includes any upsells and is net of contraction or attrition over the trailing 12 months but excludes revenue from new customers in the current period. We then divide the total Current Period ACV by the total Prior Period ACV to arrive at our NDRR.

Bookings, ACV, and NDRR are non-GAAP financial measures (U.S. generally accepted accounting principles). These non-GAAP measures may not be comparable to similarly titled measures being disclosed by other companies. Management believes that presenting these non-GAAP financial measures provide investors with additional analytical tools which are useful in evaluating our operating results and the ongoing performance of our underlying businesses because they (i) provide meaningful supplemental information regarding financial performance by excluding impact of one-time items and other items affecting comparability between periods, (ii) permit investors to view performance using the same tools that management uses to budget, make operating and strategic decisions, and evaluate our core operating performance across periods, and (iii) otherwise provide supplemental information that may be useful to investors in evaluating our financial results. We do not, nor do we suggest that investors, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

Forward-Looking Statements

Certain statements contained in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements" within the meaning of the Private Securities litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and other factors discussed in the "Risk Factors" section of the Company's filings with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Any forward-looking statements contained in this press release speak only as of the date hereof, and zSpace, Inc. specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Contacts

Press Contact:
Amanda Austin
press@zspace.com
408-498-4050

Investor Relations Contact:
Gateway Group
Cody Slach, Alex Thompson
949.574.3860
ZSPC@gateway-grp.com

            
 Three Months Ended December 31,     Year Ended December 31, 
 2024
    2023 2024    2023
Revenue$8,535  $12,053  $38,098  $43,922 
Cost of goods sold 5,063   7,870   22,529   27,028 
Gross profit 3,472   4,183   15,569   16,894 
Gross profit % 40.7%   34.7%   40.9%   38.5% 
Operating expenses:               
Research and development 805   1,088   4,893   4,218 
Selling and marketing 3,783   3,054   15,915   12,898 
General and administrative 1,648   1,964   12,419   6,710 
Other operating expenses          1,683 
Total operating expenses 6,236   6,106   33,227   25,509 
Loss from operations (2,764)  (1,923)  (17,658)  (8,615)
Other (expense) income:               
Interest expense (580)  (765)  (2,815)  (2,900)
Other income (expense), net 25   100   43   23 
Loss on extinguishment of debt (307)  (1,541)  (359)  (1,541)
Loss before income taxes (3,626)  (4,129)  (20,789)  (13,033)
Income tax expense    5   34   3 
Net loss$(3,626) $(4,124) $(20,823) $(13,036)
            


 December 31,     December 31, 
 2024 2023
Selected Balance Sheet Information:       
Cash and cash equivalents$4,864  $3,128 
Accounts receivable, net$3,176  $5,040 
Inventory, net$3,238  $3,535 
Total Assets$13,532  $13,847 
Accounts payable & accrued expenses$11,021  $13,964 
Convertible, other debt, SAFE agreements and accrued interest$13,557  $20,360 
Total liabilities$28,220  $37,366 
Temporary redeemable preferred stock$  $106,952 
Stockholders' deficit$(14,688) $(130,471)
Total Liabilities, Temporary Redeemable Preferred Stock, and Stockholders' Deficit$13,532  $13,847 
      

FAQ

What caused ZSPC's revenue decline in Q4 2024?

Revenue declined due to capital constraints prior to the December IPO, which the company's ability to fulfill backlog orders, resulting in Q4 revenue of $8.5M vs $12.1M in Q4 2023.

How much did ZSPC raise in its December 2024 IPO?

ZSPC raised funds through an IPO of 1,875,000 shares priced at $5.00 per share, with trading beginning on Nasdaq Global Market on December 5, 2024.

What was ZSPC's largest customer win in 2024?

ZSPC secured a $5 million deal with St. Louis Public Schools to provide K-12 STEM solutions, marking the company's largest customer win to date.

How did ZSPC's gross margin improve in 2024?

Gross margin improved to 40.9% in 2024 from 38.5% in 2023, due to a 5 percentage point shift from hardware to higher-margin software and services.

What is ZSPC's current backlog and software retention rate?

ZSPC ended 2024 with $9.2M in backlog and achieved 92% Net Dollar Revenue Retention for customers with over $50,000 of ACV.
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