 ZOO Digital’s share price took a hit this week after the company issued a trading update that, while showing clear signs of recovery, fell short of market expectations.
The small-cap tech stock reported that full-year revenues for FY25 are set to rise 24% to at least $50.5 million, marking a return to EBITDA profitability of $1 million—an improvement from last year’s $13.6 million loss. However, despite this turnaround, these figures still undershot analyst forecasts, prompting a sharp reaction in the stock price.
ZOO has taken significant steps to stabilise its business, including cutting fixed costs by 20% and improving gross margins to 36%. The company expects its cash balance at year-end to exceed $1 million, with additional invoice discounting facilities largely untouched. While these measures provide a firmer footing for the business, the near-term outlook remains clouded by project delays and uncertainties around the timing of revenue recognition.
Encouragingly, ZOO has secured key new client engagements, including a high-profile appointment as a Preferred Fulfilment Vendor for Amazon Prime Video. The company is also seeing an uptick in customer discussions, with licensing activity outpacing new original programming. However, dubbing revenues are expected to decline in FY26, though a shift toward higher-margin work should support stronger profitability.
ZOO’s next update is due in April, but for now, investors are weighing up the mixed signals—improving financials against lingering short-term uncertainty. |
Normally when it's cheap Stuart buys. He must have lost a lot on paper so incentivised to turn it around.
Will he buy again ? |
Imjustdandy is a laughing stock on the WG board - share price has crashed over 60%Total clueless bellend |
wealthoracle.co.uk/detailed-result-full/ZOO/1255 |
Bottom line is they are loss making ! The big vendors have come back from the writers strike but I believe they were reviewing their out sourcing and the writers strike was a good excuse ! They are turning over 59 million dollars but not making enough margins |
what does this company even do!? its not clear from its homepage.
They seem to have been ticking for quite a few years. These last couple of years have basically killed many of those struggling companies. |
Can I borrow your rose-tinted glasses, imjustdandy. Life must look great through those if you think this basket case is 'superb'! |
Superb outfit. Watch this fly now |
Awful outfit |
It's a pretty sound update having read over a few times now. |
Way overdone this drop |
Very sad demise ! |
That's what you get , the board been hiding hoping things get back to normal !They aren't ! |
Jeez 17p pre open? A bit harsh perhaps. |
Oh dear. Recovery if it happens is a longway off. However probably mostly in the current share price. |
They don´t seem to have updated their advisor page. I´m surprised their advisors have not told them this either. Or am I missing something. |
Don't sound like no smelly fig according to me......
ZOO Digital has been named a Preferred Fulfilment Vendor (PFV) for Amazon Prime Video, marking another milestone in the company’s ongoing commitment to providing cutting-edge localisation and digital media services. This new certification places ZOO among a select group of vendors trusted to help production companies prepare and distribute content for one of the world’s leading streaming platforms.
What Does PFV Status Mean?
Being part of Amazon Prime Video’s Preferred Vendor Services Program enables ZOO to streamline the digital packaging and distribution process for content creators and distributors. This is a critical step in ensuring that Amazon Prime Video’s growing library of global content reaches audiences without compromising on quality or efficiency.
To support this effort, ZOO leverages its proprietary technology platforms: ZOOsubs, ZOOdubs, and ZOOstudio. These tools integrate seamlessly to provide an end-to-end localisation solution, while ZOO’s extensive global network of over 12,000 freelancers ensures that every piece of content resonates with local audiences.
Supporting the Entertainment Industry’s Global Growth
This recognition highlights the growing importance of localisation in today’s global streaming landscape. As audiences demand more diverse and high-quality content, the ability to deliver culturally relevant and technically precise media is more crucial than ever.
Syed Ahmed, Head of International Business Development at ZOO Digital, commented on the achievement:
“This partnership underscores our commitment to helping content creators bring their stories to audiences worldwide. Working with Amazon Prime Video as a Preferred Fulfilment Vendor allows us to further support their global expansion with reliable, high-quality localisation services.” |
Sheffield digital media and localisation specialist lands Amazon Prime preferred vendor status.Hopefully the start of some good news flow! |
Previous 1yr low is 23.5p, so i'm just watching...
CFO, auditor & broker gone looks like some smelly figs gonna come. |
Didn't GT miss the audit dates last year?Not surprised they changed auditors and CFO. New Year clear out gets ??from me. |
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