The Atomos Ltd (ASX: AMS) share price is rocketing on Tuesday morning after the company delivered another record sales result.
The video technology company's shares are up 31.11% to an intraday high of 29.5 cents at the time of writing.
Let's take a closer look at the company's release today.
Atomos continues to achieve record sales growth
The Atomos share price is on the move after announcing it has ended the financial year with a strong finish.
In a statement to the ASX, Atomos advised it has achieved unaudited revenue in excess of $82 million for FY22.
This was underpinned by an outstanding Q4 sales result of $37.5 million, representing a 37% increase over the prior corresponding period.
The company believes that the ongoing positive momentum will run into FY23 which appears to have excited investors.
The Q4 finish reflected a turnaround in fortunes for Atomos when looking at the previous Q3 sales performance. The latter registered just $3.6 million in revenue for the January – March quarter which was 80.5% lower than Q3 FY21.
Atomos blamed the weak numbers on a change in marketing approach and lower promotional activity. This tactic was corrected in mid-April leading to a significant positive impact in Q4 FY22.
Furthermore, management noted the launch of its Atomos cloud strategy during the final quarter. This includes the company's new series 2 generation of connected devices (Atomos Connect, Shogun Connect and Zato Connect).
Nonetheless, Atomos is forecasting its FY22 pro forma EBITDA margin to be at the lower end of the 6% – 8% guidance range.
What did management say?
Atomos CEO, Trevor Elbourne touched on the strong result, saying:
It is extremely pleasing to be reporting another year of record sales. Given the challenges we faced through the year, including supply chain difficulties, disruption to tried and proven marketing strategies and leadership changes, it is a testament to the entire team that we have been able to deliver this growth despite those challenges.
…I am looking forward to a strong FY23 with our new pipeline of cloud enabled products.
Atomos share price snapshot
Despite today's euphoric gains, the Atomos share price is down 74% over the course of the past 12 months.
Its shares were particularly hit hard in early May following a disappointing trading update from the company.
Atomos commands a market capitalisation of $52.25 million.
