AD8 +10.68%: the audio-visual company hit all-time highs today after posting record numbers in FY23, and hitting free cash flow positive in the second half. Revenue grew 40% to $US46.7m, around 7% ahead of consensus. EBITDA in Aussie dollar terms was up more than 150% to $11m, well ahead of consensus at $8.1m. The beat came down to strong market penetration in chips where the company has maintained an impressive market share being 12x their nearest competitor in the audio space. Video continues to grow substantially and adoption is increasing while software has quickly grown to make up around a quarter of revenue which will likely support margins moving forward. Supply chain challenges have eased, however, Audinate still see near-record levels of backlog which provides visibility for more growth to come.
- A standout result for the company which we have backed for nearly 2 years.
MM is long and bullish AD8
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