Audinate shares soar on 85% earnings rise
Make us a preferred source
Make us a preferred source on Google
The news: Audiovisual technology company Audinate was the best performing stock across the ASX 200 in morning trade, as the company's earnings grew more than 85% year on year.
The numbers: Audinate shares were up 11.3% to $10.52 by 12:30pm AEST. The stock took a 35.7% intra-day hit earlier this month after the company forecast declines for FY25 amid numerous anticipated headwinds.
Sydney-based Audinate posted full-year EBITDA of $20.4 million, compared to $11 million in FY23, and at the top of the range of $19.5 million to $20.5 million set out in its unaudited results earlier this month.
Net profit after tax slipped 3.8% to $10.2 million, after Audinate recognised an income tax expense of $1.8 million compared to an income tax benefit of $9.3 million in the prior year.
As reported in its unaudited results, full-year revenue totalled USD60 million ($91.5 million), up 28.4% year on year. Likewise, unaudited gross profit rose 33.2% to USD44.5 million, and its 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, reiterated that the company faces a "combination of revenue headwinds" in FY25, resulting in full-year gross profit "marginally lower" than FY24. There will likely be a decline in revenue in FY25, the company said, 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 unchanged".
"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
