Audinate Group Limited (ASX: $AD8) has reported its preliminary unaudited results for FY24, showcasing a 28.4% increase in revenue to approximately US$60.0 million (A$91.5 million) and an expected EBITDA of A$19.5 - A$20.5 million, compared to A$11 million in FY23. The company experienced a favorable product mix shift to software implementations and achieved a gross profit margin of 74.3%, up from 72.1% in FY23.
Audinate Co-founder and CEO Aidan Williams expressed satisfaction with the unaudited results, highlighting the company's profitable growth consistent with their FY24 outlook statement. He emphasized the increasing adoption of software-based Dante implementations, expecting further long-term margin improvement. Williams also acknowledged the shift in performance measurement from revenue growth to gross profit dollar growth due to the evolving product mix.
Audinate's FY24 unaudited results demonstrate significant revenue growth and improved gross profit margin, driven by a favorable product mix shift to software implementations. The company anticipates further margin improvement as customers adopt more software-based Dante implementations. However, for FY25, Audinate expects a decline in revenue due to various factors, including the preference for software-based implementations and the expected end-of-life of certain products. Despite the transitional outlook for FY25, Audinate remains optimistic about its long-term prospects, aiming for revenue generation from the management and monitoring of audio-visual installations. The company is implementing initiatives to mitigate the anticipated revenue decline in FY25 and is focused on managing costs while investing in new products to capitalize on the long-term opportunity. Audinate's CEO, Aidan Williams, reiterated the company's strong long-term strategic thesis and expressed enthusiasm for the launch of Dante Director and the demand for Dante software implementations, which could drive overall gross margins towards 85% over the longer term.