Story perspectives

Zoo Digital Shares Plunge 36% Despite Revenue Growth

2/21/2025

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Summary

Story summary

Zoo Digital's shares fell over 36% after FY25 revenue and EBITDA forecasts missed market expectations, despite a projected 25% revenue increase to $50.5 million.
The company aims for at least $1 million in EBITDA profitability, recovering from a $13.6 million loss in FY24.
Cost-saving measures cut fixed costs by 20%, with blended gross margins expected to rise to 36%.
New clients like Amazon Prime Video may enhance FY26 revenues, although dubbing revenues are projected to decline.

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Story summary

Zoo Digital's shares fell over 36% after FY25 revenue and EBITDA forecasts missed market expectations, despite a projected 25% revenue increase to $50.5 million.
The company aims for at least $1 million in EBITDA profitability, recovering from a $13.6 million loss in FY24.
Cost-saving measures cut fixed costs by 20%, with blended gross margins expected to rise to 36%.
New clients like Amazon Prime Video may enhance FY26 revenues, although dubbing revenues are projected to decline.