zSpace, Inc. ( (ZSPC) ) has released its Q4 earnings. Here is a breakdown of the information zSpace, Inc. presented to its investors.
zSpace, Inc. is a company specializing in augmented and virtual reality solutions for the education sector, offering innovative experiences that enhance STEM, CTE, and career readiness programs. The company, headquartered in San Jose, California, has recently announced its financial results for the fourth quarter and full year of 2024, marking its first quarter as a public company.
In 2024, zSpace achieved significant milestones, including securing a $5 million deal with St. Louis Public Schools and expanding its Career Readiness Solution with an AI Career Coach. Despite a decrease in revenue due to capital constraints prior to its IPO, the company reported a strong demand with a $9.2 million backlog heading into 2025.
The financial results showed a decline in revenue to $38.1 million for the full year 2024, down from $43.9 million in 2023. However, the company improved its gross margin to 40.9% from 38.5% the previous year. Net loss widened to $20.8 million from $13.0 million in 2023, largely due to increased operating expenses. Notably, the company completed its IPO in December 2024, raising capital to support future growth.
Looking ahead, zSpace remains focused on expanding its market presence in K-12 STEM and CTE markets, pursuing international expansion, and investing in research and development. The company is optimistic about leveraging its recent achievements and strategic investments to drive long-term value for shareholders.