Audinate share price soars 5% as revenue thrives

A man with a scrappy beard and wearing dark sunglasses and a beanie head covering raises a fist in happy celebration as he sits at is computer in a home environment.A man with a scrappy beard and wearing dark sunglasses and a beanie head covering raises a fist in happy celebration as he sits at is computer in a home environment.

The Audinate Group Ltd (ASX: AD8) share price is surging today after the company reported its preliminary results for FY22.

The technology company’s shares are currently up 5.42% at $8.75 apiece. However, they were earlier trading for $9.10, a 9.64% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) is lifting 0.70% while the S&P/ASX All Technology Index (ASX: XTX) is currently up 2.52%.

So what did the Audinate Group report in these results?

Audinate share price up as revenue jumps 33%

Highlights of the Audinate unaudited results for FY22 include:

What else did Audinate report?

Underpinning this large increase in revenue was better than expected chip supplies in late quarter four. This led to a “strong” finish to the financial year.

Due to a boost in chip supplies, unmet demand from the third quarter was delivered in the fourth quarter of FY22.

Further, the company was able to deliver some of Q1 FY23 demand earlier than expected. The higher variation in the US dollar compared to the Australian dollar also helped boost revenue in Australian dollar terms.

Audinate said gross profit margin was in line with expectations, despite spot inventory cost pressures.

Commenting on the results boosting the Audinate share price today, co-founder and CEO Aidan Williams said: “It is particularly satisfying to have delivered very strong revenue growth, despite a challenging operating environment over the last 12 months.”

What’s ahead?

Audinate said it expects supply chain disruption and economic uncertainty to continue in FY23.

Commenting on the future outlook, Williams said:

We continue to operate on a cautious and prudent footing.

We look forward to providing a full run-down of the FY22 results and expectations for the year ahead when we release our financial results at the end of August.

Audinate will deliver its full FY22 results on 22 August.

Audinate share price snapshot

The Audinate share price has fallen just over 1% in the year to date, while it has lost around 7% in the past 12 months.

For perspective, the benchmark ASX 200 has shed nearly 7% in the past year.

Audinate has a market capitalisation of about $3.8 billion based on the current share price.

The post Audinate share price soars 5% as revenue thrives appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended AUDINATEGL FPO. The Motley Fool Australia has positions in and has recommended AUDINATEGL FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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