The Audinate (ASX:AD8) share price tanked 7% last time the company reported

Investors will be hoping the audio tech company doesn't repeat its 2020 earnings performance this reporting season.

Last reporting season was not kind to the Audinate Group Ltd (ASX: AD8) share price.

Shares in the audio tech company tanked nearly 7% after Audinate released its results for FY20 last August.

Investors will be hoping that the Audinate share price doesn't repeat its performance this reporting season.

Audinate specialises in hardware and software solutions for the audio-visual (AV) market. The company's flagship and award-winning Dante program is a global leader in AV connectivity.

Person with large headphones looking puzzled holding their hand to their chin.

Image source: Getty Images

Here's how the Audinate share price responded last year

In its full-year results for FY20, the company reported revenue of $30.3 million for the financial year, with a 30% increase in software revenue.

Audinate noted that royalties from its Dante platforms and retail software sales had fuelled growth.

However, the impact of the COVID-19 pandemic was reflected in the company's bottom line, with Audinate reporting a net loss of $4.1 million after tax.

Despite the cancellations of major music festivals, the company was able to offset losses with higher demand in education and conferencing applications.

In addition, the company noted a stronger balance sheet after raising $40 million in an oversubscribed placement.

Snapshot of the Audinate share price

Fast-forward to 2021 and it's a very different picture for the Audinate share price.

Shares in the audio technology company have stormed more than 29% higher since the start of the year and are currently nudging record-highs.

In October last year, Audinate noted that sales momentum had started recovering. This was reinforced in the company's results for the first half of FY21, which saw revenue return to pre-COVID levels.

A major catalyst for the company was its trading update for FY21.

Audinate noted that the company had generated unaudited revenue of US$25.0 million for FY21, up 23% from FY20.

The company also cited 74% quarter-on-quarter growth, highlighting a strong Aussie dollar.

However, Audinate did note constraints from global supply chains as a near-term risk.

What do the brokers say?

Analysts have also jumped behind the Audinate share price. A note from UBS last month saw analysts retain their buy rating on Audinate and initiate a share price target of $11.30.

The broker cited Audinate's strong fourth quarter update with analysts backing the company's outlook.

The proof will be in the pudding when Audinate reports its full-year results.

The company is scheduled to report on Monday.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended AUDINATEGL FPO. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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