The tech company looking to revolutionise the AV (audiovisual) space, Audinate Group (ASX: AD8), has today delivered record revenue and EBITDA along with its endeavour to overcome global supply chain issues.
Throughout COVID-19, the world came to a standstill during one of the worst supply-chain crises in history. In particular, businesses acquiring semiconductor chips had the most trouble, but this narrative isn’t the same for Audinate, which has managed to overcome the acute chip shortage.
Announced in the full-year report today, Audinate achieved a record gross profit of $36.2 million, climbing over 29.7% year-over-year (YoY) due to massive sales growth within their chips, cards and modules (CCM) category. Revenue increased 33.4%, achieving $46.4 million for the year, driven by the Company marking up its prices for select products to protect its margins from the aforementioned supply issues.
Other notable metrics are EBITDA, which grew 41% YoY to $4.3 million, and the Company’s cash balance, which comfortably sits at $44.5 million.
“It is particularly satisfying to have delivered strong revenue growth and improved EBITDA despite the challenges faced by the business over the year,” said Audinate CEO and Co-founder, Aidan Williams.
Audinate provides a full suite of audiovisual products and software. Its core product line, the Dante collection, provides a network solution used extensively in professional live sound, commercial installation, broadcasting, public addressing and music recording industries. By replacing the traditional analogue transmission method, the Company utilises nothing more than an ethernet cable to transmit perfectly synchronised audio across large distances.
Adapting to the global supply-chain slowdown, Audinate readily pursued chipmakers to establish deep connections in an attempt to provide a buffer from any future disruptions. Following the most prolonged shortage of chips, Audinate was able to secure a provider and convert a considerable backlog of product orders into realised revenue, allowing them to achieve the record year.
“During this period the business has experienced COVID related impacts, initially to demand and then to supply chain, but showed resilience, maintained margins, and grew revenue strongly.”
Earlier in January 2022, the Company was pleased to announce the acquisition of the Silex video business for a cash payment of $9.44 million. The investment was strategically undertaken as Silex produced video networking products for AV manufacturers, like Audinate. The transaction has allowed the Company to keep significant portions of manufacturing and design in-house. It was also mentioned that the deal was to provide additional revenue in the future and double it in the medium term, which has been seen with today’s announcement.
*All dollar amounts listed in AUD unless stated otherwise
Trading Desk Assistant at Emerald Financial
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