ZOO has announced H1 24 results in line with guidance at the recent AGM. We welcome the news earlier this month that the US actors’ strike has ended. This suggests that revenues could return to historical levels in the relatively near term, and that ZOO was correct to maintain capacity and capability to deliver during the recent hiatus. Subdued workflows have led to a significant EBITDA loss in H1 on revenue of $21m; but given the sequential month-on-month improvement expected, we maintain revenue and EBITDA estimates for FY24E. In addition, we view recent customer wins for ZOOstudio as a major endorsement, with significant revenue potential as orders ramp up. We reintroduce FY25 estimates, albeit at a reduced level, with upside potential if the recovery proves faster than expected, given ZOO’s operational gearing. In this note, we also focus on the opportunity for Artificial Intelligence (AI), which we believe could enhance ZOO’s position in the marketplace rather than representing a threat.