Nehal Chokshi's questions to zSpace (ZSPC) leadership • Q2 2025
Question
Nehal Chokshi questioned the relevance and drivers of the volatile Net Dollar Retention (NDRR) metric, which jumped to 131%. He also requested a normalized year-over-year bookings breakdown by geography and segment, and asked for a recap of recent capital raises and their impact on share count.
Answer
CFO Erick DeOliveira defended NDRR as a key metric, explaining the jump was due to a few large customers significantly expanding their zSpace software footprint. He provided a normalized H1 bookings breakdown (down 16% YoY), with the U.S. down 17% and China up 88%. DeOliveira also recapped a $13 million convertible debt drawdown in Q2 and a new $30 million equity line of credit facility established for Q3.