AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Audinate Group Ltd (ASX:AD8) saw a remarkable surge in its share price on Monday, climbing more than 11% to AU$10.50 apiece. This significant uptick follows the release of the company's record FY24 results, which have sparked a strong investor response.
Audinate's impressive FY24 performance highlights include a 28.4% increase in revenue, reaching US$60.0 million (AU$91.5 million). The company's gross profit surged by 33.2% to US$44.5 million, setting a new record with a gross margin of 74.3%. Additionally, earnings before interest, tax, depreciation, and amortisation (EBITDA) leapt 85% to AU$20.4 million, another record high. Net profit before tax also saw a significant rise, climbing to AU$12.1 million from just AU$1.4 million in FY23. Audinate also reported positive free cash flow of AU$6.9 million.
The robust financial performance reflects the company's successful expansion and growth during FY24. Despite fluctuations in share price throughout the year, Audinate managed to increase its business lines significantly. Software sales grew by 32.6% year-over-year, contributing to the record gross profit. Notably, the company's Dante units experienced a 34% growth, while Ultimo chip shipments surged by 70%, driving substantial revenue gains.
In addition, Audinate's Dante video licensees expanded by 59%, and the total number of video products offered reached 84 by year-end. The company's website saw a 22% increase in unique visitors, totaling 1.5 million for the year. This growth underscores Audinate’s dominant position in the audio market, with adoption rates reportedly 12 times higher than those of its nearest competitor.
Looking forward, Audinate anticipates a challenging FY25, as it moves past a particularly strong growth period. The company expects a slight decline in gross profit due to reduced revenue but is optimistic about maintaining a high overall margin, with a forecast of around 80%. Management is also preparing for a return to more predictable order patterns in FY26. To ensure ongoing business health, Audinate plans to invest in measures that, while beneficial in the long term, will come at a cost.
