REFILE-zSpace misses Q4 revenue estimates amid federal government shutdown
Overview
US AR/VR education firm's Q4 revenue fell and missed analyst expectations
Gross margin rose to 49% from 41%, driven by more software and services
Company completed restructuring, cut expenses, and secured new capital commitments
Outlook
Company did not provide specific financial guidance for the current quarter or full year
Result Drivers
GOVERNMENT SHUTDOWN IMPACT - Co said Q4 revenue decline was driven by a freeze in orders and shipments during the U.S. Federal Government shutdown
SOFTWARE AND SERVICES MIX - Gross margin improvement attributed to higher mix of software and services, improved hardware cost profiles, and more company-owned software content
RESTRUCTURING AND COST CUTS - Co completed a strategic restructuring, reducing run-rate operating expenses by more than 30%
Company press release: ID:nGNX62Xwyx
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Miss | $4.80 mln | $6.20 mln (3 Analysts) |
Q4 Net Income |
| -$7.30 mln |
|
Q4 Adjusted EBITDA |
| -$3.70 mln |
|
Q4 Gross Margin |
| 49.00% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for zSpace, Inc. is $3.00, about 2,343% above its March 27 closing price of $0.12
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