Let’s look at some key information from the results this morning that spearheaded the price movement.
Why is the Atomos share price pushing up?
In the first half results released to the market this morning, Atomos reported its strongest half for sales in its history, notching up $32.8 million worth during the period. Atomos also posted its most profitable half on record, with earnings before interest, tax, depreciation and amortisation (EBITDA) up 210% to $3.0 million.
In its first-half FY21 investor presentation, the company pointed out the strong growth in activations of the Apple Inc (NASDAQ: AAPL) video format, ProRes RAW, that only Atomos is licensed to natively record. Activations reportedly grew fivefold in 12 months.
The cash flow positive half also added $4.5 million to the company, putting cash levels on the balance sheet at $23.3 million as of 31 December 2020.
Management also advised the company continues to invest in product development, including an anticipated software upgrade option that could provide another revenue stream for the business.
Second half in the frame for Atomos
According to management, sales momentum has carried into the second half. The company remains cautious of COVID-19 impacts on trade but expects continued good progress.
The company also noted that Jeromy Young would move to the role of founder, where he will focus on future products, partnerships, and growth opportunities. Chris Tait will remain in the position of executive chair.
On the structural change, Young commented:
With this new role I am very excited to be focusing my time on creating and developing new product and revenue ideas, getting back to more of what I used to do 10 years ago when I (and Ian Overliese) founded Atomos.
Over the past year, we have significantly strengthened our management team, which now puts us in a position where others can take over the daily administrative duties, leaving me to focus solely on growing Atomos into a much more substantial global company.
Atomos share price snapshot
At the time of writing, the Atomos share price is up 12.3% to $1.05. Even with today’s dramatic jump, shares are still trading below their 52-week high of $1.315 and are down 24.6% for the year. For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 3.6% over the same period.
Including today’s increase, Atomos now has a market capitalisation of $204.28 million.