ASX All Ords share Audinate Group Ltd (ASX: AD8) is off to the races today.
The All Ordinaries Index (ASX: XAO) remains down 0.1% at the time of writing.
But shares in the ASX All Ords media networking solutions provider are up 17.2% at $12.07 apiece. Audinate earlier posted gains of 21.4%, trading for $12.50 a share.
Investors are bidding up the Audinate share price following the release of the company's full-year results for the 12 months ending 30 June (FY23).
Here's what's piquing investor interest.
Audinate share price surges on record profit results
- Revenue of US$47 million, up 40.0% from FY22
- Gross profit of US$33 million, up 34.4% year on year, with a gross margin of 72.1%
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) of AU$11 million, up 156.4% from FY22
- A milestone net profit before tax of AU$1.4 million, up from a loss of AU$4.4 million in FY22
What else happened during the year for the ASX All Ords share?
Audinate credited the growth in gross profits to the 42% year on year growth in sales of chips, cards & modules in FY23, along with 34% growth in its software sales.
The ASX All Ords share's 50.6% increase in Aussie dollar revenue to AU$69.7 million was aided by favourable exchange rate impacts.
Audinate also reported an "outstanding year" in its video business, which has established the foundation for ongoing success in the year ahead. With some US$3 million in revenue and more than 10,000 endpoints, the ASX All Ords share achieved its video FY23 objectives.
Audinate had a positive free cash flow of $2.5 million in the second half of FY23. The company had negative $4.3 million cash flow for the full year, up from the negative $11.7 million cash flow in FY22.
As at 30 June Audinate had cash and term deposits of $40 million.
What did management say?
Commenting on the results sending the ASX All Ords share soaring today, Audinate CEO Aidan Williams said:
I'm delighted to present an outstanding set of financial results for FY23, with record revenue growth delivering significant profit and 2H positive free cashflow for the company.
FY23 closes the chapter on a challenging 3-year period in which we delivered US$ revenue growth CAGR over 31% despite COVID induced downturns and chip shortages.
What's next for the ASX All Ords share?
Looking at what could impact the ASX All Ords share in the year ahead, management said it's "well-positioned for further video traction".
Audinate pointed to its sales backlog and noted that demand remains near all-time highs into the first half of FY24. The company said it's on track to double its revenue in FY24.
Williams said:
Growth in combination with the structural operating leverage in our business model should drive improved profitability and positive free cashflow. Whilst continuing to grow the core audio business during FY24, I'm looking forward to further solid gains for our video and cloud products.
Audinate share price snapshot
With today's intraday gains factored in the ASX All Ords share is up an impressive 56% so far in 2023.
The Audinate share price is up 37% over 12 months.
