Q: Good day, can you please comment on ZDC earnings. Thanks
5i Research Answer:
In Q3 2024, ZDC reported revenue growth of 42% to $9.1M compared with $6.4M for the same period in the prior year, largely due to strong demand for security towers in Canada. EBITDA also grew strongly by 49% to $3.4M. The company recently expanded its operations in the US meaningfully. Now, the US accounts for 10% of ZDC’s total revenue in Q3, and the portion is also growing strongly. ZDC indicates that the utilization rate for the fleet of security towers in the U.S. is near 100% capacity, signaling a solid growth lever going forward. We think ZDC reported very solid numbers and would be comfortable holding and buying some here, while being mindful of its small cap risks.