ZOMD.V – Q4 F24 Earnings and F25 Forecast: Explosive Growth, Yet Market Stays Irrational
Q4 100% revenue surge, a 479% EBITDA jump—yet the stock trades at a discount. The ultimate contrarian opportunity?
ZOMD.V – Q4 F24 Earnings and F25 Forecast: Explosive Growth, Yet Market Stays Irrational
If you're not familiar with ZOMD, I previously summarized its business model in my report here
In that report, I projected $13.5M in Q4 revenue, reflecting 80% year-over-year (YoY) growth. However, the company exceeded my expectations, delivering 100% revenue growth and outperforming my adjusted EBITDA forecast of $2.9M, posting $3.2M instead.
ZOMD.V - Q4 F24 Results:
Income Statement (All figures in USD):
ZOMD's last eight quarters of financial performance highlight its strong execution:
Revenues: After an outstanding Q2 F24 (+58% YoY) and Q3 F24 (+135% YoY), ZOOMD's management delivered yet another record-breaking Q4 revenue surge of 100% YoY. Full-year F24 revenue rose 70% YoY, from $32M (2023) to $55M (2024).
Gross Profit: The company generated $21.5M (39% margin) vs. $12M (37% margin) in 2023—an impressive 79% YoY increase.
Operating Expenses: Management demonstrated strong cost discipline, keeping OPEX steady at $12M in 2024, compared to $13M in 2023.
Adjusted EBITDA: A stellar execution on revenue growth and margin expansion without increasing costs resulted in adjusted EBITDA of $11.3M (21% EBITDA margin) vs. $1.7M (5% EBITDA margin) last year—a staggering 578% YoY increase ($9.7M gain).
From a business growth standpoint, management has delivered on its promises, driving consistent growth across both the top and bottom lines.
Key points from the Earnings Call:
Technology & Operations
Product & Service Enhancements: Offers a 360-degree digital, mobile-first performance approach with programmatic media buying and real-time campaign management.
Platform Capabilities: Integrated with hundreds of media sources for broad advertising reach, eliminating the need for SDK implementation.
Efficiency Gains: Approximately 25% of financial improvements came from cost reduction and efficiency measures.
Market Trends & Global Expansion
Geographic Growth: Focus on North America and Europe, with U.S. revenue up 20% in 2024.
Vertical Growth: Strongest expansion in entertainment (music/video streaming).
No Impact from U.S. Tariffs: Since Zoomd operates in digital services rather than physical goods, the new regulations do not affect its business.
Business Strategy & Growth
Customer Expansion: Added major clients, including NBA, Fanatics, Go Henry, and Lightrix.
Sector Focus: Prioritizing e-commerce, iGaming, entertainment, transportation, and consumer goods, all known for stable growth and profitability.
Client Diversification: Expanded with existing clients globally and reduced dependency on single customers.
Balance Sheet (All figures in USD)
For investors, this is the kind of balance sheet that provides confidence:
Total Assets: Increased from $17.8M (Sep 2023) to $28.6M (Dec 2024), driven largely by aggressive growth in current assets—especially cash.
Cash & Equivalents: Surged from $1.46M (Sep 2023) to $9.23M (Dec 2024)—a testament to the outstanding 2024 performance.
Total Debt: Remained controlled, rising modestly from $8.99M (Sep 2023) to $10.95M (Dec 2024).
Total Equity: Jumped from $8.8M (Sep 2023) to $17.6M (Dec 2024), reflecting strong retained earnings and value creation.
Valuation Disconnect: The Market's WTF Moment
Stock price pre-earnings was around .90 CAD cents and after delivering a record quarter, stock is trading at .66 CAD cents 🤯
Share price: $0.45 USD
Market Cap: $47M USD
Enterprise Value: $41M USD
TTM Net Income: $8.9M USD
Enterprise Value/TTM Net Income: 5x
Enterprise Value/ TTM Adjusted EBITDA: 3.6x
Now, let’s compare this to peers who have already released Q4 results:
⚠️ The irony? The stock that delivered 100%+ growth in the last two quarters is trading at the cheapest multiple.
And that’s the WTF moment. As Warren Buffett famously said:
"The market can stay irrational longer than you can stay solvent."
F25 FINANCIAL FORECAST: