Audinate shares dive on FY25 revenue warning
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More news: Audinate shares plunged at market open on the ASX after the audiovisual technology company forecast declines in FY25 amid numerous anticipated headwinds.
Shares were down 32.3% to $9.02 by 10:45am AEST, making it the worst performing stock across the ASX 200.
Audinate posts full-year profit growth, flags FY25 headwinds
The news: Audinate recorded double-digit growth in revenue and earnings for the 2024 financial year, but it warned that FY25 will likely see declines in what is expected to be a "transitional year" for the audiovisual technology company.
The numbers: Audinate posted full-year unaudited revenue of USD60 million ($91.5 million), up 28.4% year on year. The company said it expects EBITDA in the range of $19.5 million to $20.5 million, compared to $11 million in FY23.
Sydney-based Audinate recorded a 33.2% rise in unaudited gross profit, totalling USD44.5 million, and an unaudited gross margin of 74.3% compared to 72.1% a year ago.
The context: Audinate, the developer of the Audio over Ethernet (AoE) system Dante, said a number of factors drove revenue growth during FY24 including "conservative over-ordering" of products by its manufacturing customers, driving the company's sales backlog to record levels.
However, the company noted the drivers of revenue during the year are not expected to continue into FY25. Instead, Audinate said FY25 revenue faces "a combination of headwinds", resulting in a likely decline in revenue before "a return to anticipated growth and more predictable order patterns in FY26".
What they said: Audinate co-founder and CEO Aidan Williams said: "Whilst we expect FY25 to be a transitional year, the long-term strategic thesis for Audinate remains strong."
"With the challenges of the last few years behind us, we will redouble our efforts to drive audio and video unit growth, a key building block in our long-term strategy," he said.
The source: ASX announcement
