Audinate Group Ltd. · ASX:AD8
Audinate — Investor Presentation (February 2019)
26 slides from Audinate's investor presentation, Feb 20, 2019
Slide 1: 1H19 Results Presentation
1H19 Results Presentation 20 February 2019 Lee Ellison – Chief Executive Officer Aidan Williams – Co-founder & Chief Technology Officer Rob Goss – Chief Financial Officer
Slide 2: Audinate - Pioneering the future of AV
Audinate - Pioneering the future of AV Products World-leading supplier Growing network effect with of digital audio number of Dante-enabled Audinate’s core technology, called Dante, distributes audio signals networking for the products in market across computer networks Professional AV industry 1,75
Slide 3: 1H19 Results Highlights
1H19 Results Highlights 3 1H19 Results Presentation
Slide 4: 1H19 Financial highlights compared to prior period
1H19 Financial highlights compared to prior period 60% 51% A$0.8m A$1.7m A$0.6m growth in growth in NPAT compared EBITDA up Operating revenue to revenue to to $2.2m 1 from $0.1m cashflow A$14.2m US$10.3m compared to ($0.2m) Sales growth continues to be driven by the core business along with demand f
Slide 5: 1H19 Operational highlights compared to prior period
1H19 Operational highlights compared to prior period 59% 22% 125% 36% growth in growth in Dante More people OEM product *CCM units shipped software units trained growth to 1,751 to 181k shipped to 88k on Dante (18,000) *CCM includes chips, cards, modules & adapters Westfield Mall Shopping Centre Lon
Slide 6: Growing network effect
Growing network effect Number of Dante-enabled products drives economic network effect 1,820 products at 31.1.19 1751 1639 1292 1182 CAGR 58% in 973 number of 874 Dante-enabled 681 553 products 348 available in the 223 market 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 Note: per financial half
Slide 7: Core business drives growth in revenue and units shipped
Core business drives growth in revenue and units shipped Revenue (US$M) Dante units shipped (‘000s) 268 $10.3 $1.6 $8.4 213 88 186 $6.8 $1.2 $6.2 78 148 $1.1 72 $4.9 $0.8 127 $4.8 48 $0.7 100 $3.6 $0.6 $8.5 47 $6.9 76 181 37 $5.3 $5.6 28 134 100 114 $4.0 $4.1 80 $3.2 63 48 1H16 2H16 1H17 2H17 1H18 2
Slide 8: 1H19 Financial highlights
1H19 Financial highlights 8 1H19 Results Presentation
Slide 9: 1H19 income statement
1H19 income statement (AU$’000s) 1H19 1H18 Change • Revenue increased 60% to $14.2m; in US dollars Sales 14,151 8,848 60% revenue increased 51% to US$10.3m Cost of goods sold 3,773 2,245 68% • Movement in gross margin is due to product mix Gross profit 10,377 6,603 57% (adapters) & a part shortage w
Slide 10: Revenue growth & operating leverage = EBITDA growth
Revenue growth & operating leverage = EBITDA growth AUD Revenue & Cost trends EBITDA $15.0 M 90% $1.7 85% $12.5 M 80% 75% $0.5 $10.0 M 70% $0.1 $0.1 65% $7.5 M 60% 55% -$0.3 -$0.5 $5.0 M 50% 45% $2.5 M 40% -$1.2 1H16 2H16 1H17 2H17 1H18 2H18 1H19 1H16 2H16 1H17 2H17 1H18 2H18 1H19 Revenue Gross marg
Slide 11: 1H19 cash-flow statement
1H19 cash-flow statement (AU$’000s) 1H19 1H18 Change Cash flows from operating activities Receipts from customers 13,950 9,304 50% Payments to suppliers and employees (13,470) (9,947) 35% • Net cash from operating activities increased Interest received 102 142 (28%) from -$0.2m in prior period to $0
Slide 12: Statutory balance sheet
Statutory balance sheet (AU$’000s) 31 Dec 18 30 Jun 18 Change Cash and cash equivalents 12,176 13,631 (11%) Trade and other receivables 2,234 1,819 23% Current tax asset 1,253 1,344 (7%) Inventories 2,345 1,224 92% • Closing cash balance of $12.2m at close of Other assets 469 276 70% period Current
Slide 13: Growth Drivers
Growth Drivers 13 1H19 Results Presentation
Slide 14: Growth Drivers
Growth Drivers Robust core audio networking business • Market leadership position in digital audio networking • 1,751 products shipping from 228 manufacturers, and growing • Strong pipeline of Dante from 212 manufacturers yet to ship first product • Continued conversion from analogue connected syste
Slide 15: Dante AV – Video and Audio, Together
Dante AV – Video and Audio, Together • Adds video signal distribution Dante AV Use cases to Dante networking – Sports Bars and Casinos – Video Display Walls • Dante AV launched Feb 2019 at – Classrooms Integrated Systems Europe – – Live Presentations Retail signage • Same business model: – Houses of
Slide 16: Dante AV Module
Dante AV Module • Dante “AV-over-IP” networking module - One video signal - 8 channels of audio - Synchronisation, plug and play, HDCP, etc • Same familiar Dante management - Easy to use networking for integrators - Dante Controller for setup - Dante Domain Manager • Expected product availability to
Slide 17: Dante AV Product Design Suite
Dante AV Product Design Suite • Complete HDMI-over-IP product design – Accelerate OEM time to market – Enable ODM business model • Features – HDMI input & HDMI output – Dante Video and Audio networking • Includes firmware, documentation and software for encoder or decoder products 17 1H19 Results Pr
Slide 18: Dante AVIO Adapters – Network Everything
Dante AVIO Adaptors – Network Everything “Problem solver” for Dante AVIO System Integrators Adapters Dante for “brown-field” installations • 1H19 sales ahead of budget D • Established a global distribution channel of online retailers and country distributors Online retail & - 77 resellers in 45+ cou
Slide 19: Dante Domain Manager – System Management Software
Dante Domain Manager – System Management Software Dante AVIO Secure Control Adapters Scale beyond a LAN • 1H19 sales on budget • Focus on expanding and educating the sales channel – 133 resellers (System Integrators) signed to date ( 33% in 1H19) Logging & Auditing – Additional staff in Germany, Jap
Slide 20: FY19 Priorities
FY19 Priorities 20 1H19 Results Presentation
Slide 21: FY19 outlook & priorities
FY19 outlook & priorities • Consistent strategy and successful execution • Broaden our suite of core Dante products to accelerate penetration within OEMs • Continued promotion of Dante AVIO adapters and Dante Domain Manager • Increased capital investment in Dante AV (video) and expansion of Sydney o
Slide 22: Appendices
Appendices 22 1H19 Results Presentation
Slide 23: Competitive landscape – Networked Audio Products
Competitive landscape – Networked Audio Products Total products per protocol(1) 1,820 products at 31.1.19 1800 1639 1600 Audinate is the clear global Number of Products 1400 market leader compared to competing audio networking 1200 solution providers. 1000 916 800 Dante more than five times the 618
Slide 24: Increasing OEM customer adoption: pipeline for growth
Increasing OEM customer adoption: pipeline for growth OEM customers 221 228 218 212 205 202 194 193 176 179 179 158 158 146 142 131 106 92 8 9 9 11 13 14 15 15 15 1H15 2H15 1H16 2H16 1H17 2H17 1H18 2H18 1H19 Parent licensees OEMs shipping Dante enabled products OEMs developing first Dante product •
Slide 25: Core business growth strategy
Core business growth strategy Increase the number of OEMs adopting Dante Increase penetration of Dante throughout each OEM brand’s product portfolio Increase market awareness of Dante products Educate end users, system designers Encourage existing OEM customers to Continue to sign new OEM partner an
Slide 26: Important notice and disclaimer
Important notice and disclaimer Disclaimer Past performance IFRS and may be calculated differently by other companies. To the maximum extent permitted by law, none of the Past performance information, including past share price Market share information Audinate Group Limited or its subsidiaries or t
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