Delft, November 9, 2022

Turnover development July-October

After a slow start in the first months of the calendar year, turnover is picking up. A turnover of approximately € 0,71 million was achieved over the months July to October. This is 4% higher than the turnover of the comparable period in 2021.

In recent months, better sales results have been achieved in our core markets:

  • In the Netherlands, 15 new municipalities have BOAs for their own ZEPCAM selected, including the city of Tilburg, with which the total number of municipal customers has now passed 100. And the first municipality (Breda) has purchased T3 Live bodycams.
  • In Germany, the first ZEPCAM system was delivered in October to the police and fire brigade of the state and capital Berlin, which, as is known, opted for ZEPCAM in July. And the first pilot with T3 Live at another Feuerwehr (from Northeim) went well and was reported in the media. In addition, the first security companies have started using a number of ZEPCAM T3 Live body cameras.
  • In Belgium, the Kempen Noord Police Zone has also opted for ZEPCAM T2+ and the first practical tests are underway with T3 Live.
  • In France, two departmental fire brigades (SDIS13 and SDIS60) have significantly expanded their arsenal of ZEPCAM bodycams, and an additional brigade (SDIS87) has chosen us as the first customer in our new French cloud environment.
  • There has been a lot of interest in the T3 Live bodycam system in all countries in Southern Europe, as half of the visitors to the ZEPCAM website come from these countries.
  • Outside Europe, the most striking new customer is the Buenos Aires police, which has started with a number of T3 Live streaming bodycams.

In the period July-October, the hard work of the sales team also significantly increased the pipeline of potential customers. As of the end of October, there were active sales processes with approximately 280 parties, compared to approximately 170 at the beginning of July. These potential sales deals represented an estimated deal value of €29,5M at the end of October compared to €22,4M at the beginning of July; an increase of more than 7 million euros. There is also a good development with regard to the number and value of outstanding quotations, for which we consider the chance of success to be higher than 50%. This amounted to 66 units and €2,2M respectively at the end of October, compared to 41 units and €1,8M at the beginning of July.

Business model progress: software licensing
ZEPCAM offers bodycam systems that consist of both hardware and software. Since the beginning of 2021, ZEPCAM has placed much more emphasis on generating a steady stream of license income for the use of the software it supplies. This licensing income leads to annual recurring revenue. This shift in the business model is clearly paying off. The turnover from licenses in the period July-October was approximately 60% higher than the license turnover in the same period in 2021. The share of software license turnover in the total turnover has therefore increased to approximately 40%. Customers regularly renew or expand their licenses. This indicates that customers continue to use bodycam systems for a longer period of time after purchasing bodycam systems and that they are loyal to ZEPCAM.

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