Audinate Group Ltd. · ASX:AD8
Audinate — Investor Presentation (August 2024)
35 slides from Audinate's investor presentation, Aug 19, 2024
Slide 1: Audinate FY24 Investor Presentation
Audinate FY 24 Investor Presentation 19 August 2024 Aidan Williams – Chief Executive Officer Rob Goss – Chief Financial Officer Authorisation: approved by the Board of Audinate Group Limited 1
Slide 2: World-leading Technology Supplier to Pro-AV
World-leading Technology Supplier to Pro-AV Audinate is the company behind the Dante® media networking solution used in the professional AV industry 660 4,176 Total OEM 13 Dante-enabled brands licensing Locations Poland products Dante products USA UK Belgium Japan France China Mexico Germany Hong Ko
Slide 3: World-leading Technology Supplier to Pro-AV
World-leading Technology Supplier to Pro-AV Dante is in millions of devices and can be found in a diverse range of installations and applications across industries, including: Universities Conference Broadcast Corporate Houses of Arenas and Rooms Studios Campuses Worship Stadiums Recording Conferenc
Slide 4: Networked AV market opportunity is US$2 billion
Networked AV market opportunity is US$2 billion Audinate Updated TAM* US$2bn* Audio share of Audio Market Networking estimated at 9% Audio US$330m Revenue opportunity for addressable audio products including speakers, microphones, amplifiers, mixing consoles and signal processors Additional revenue
Slide 5: FY24 Gross Profit Growth Accelerates
FY24 Gross Profit Growth Accelerates Variance Other Financial Metrics US$M Gross Profit vs FY23 $50M 98.0% $44.5 $45M A$91.5M Revenue 31.3% $40M 93.0% $35M $33.4 US$60.0M US$ Revenue 28.4% 88.0% $30M $24.9 $25M 74.3% Gross Margin % 3.1% 83.0% $18.8 $20M $15.6 $15M 76.4% 78.0% A$20.4M EBITDA* 85.5% 7
Slide 6: FY24 Objectives Achieved
FY24 Objectives Achieved FY24 Objectives Achievements 1. Double the video ecosystem - Strong growth in 2H to substantially over-achieve target >30k video units-in-field or shipped - Next-generation Dante AV Ultra product complete (first OEM product shown at ISE) 2. Release additional video and cloud
Slide 7: Demand for Dante remains strong
Demand for Dante remains strong Dante Trained and Certified Professionals Interest in Dante continues to be strong across key metrics: (cumulative) 271k AV professionals trained on Dante grew 22% 223k 183k 150k Units of retail software sold to AV professionals up 22%1 120k Downloads of Dante Control
Slide 8: Leading Global Supplier of AV Networking
Leading Global Supplier of AV Networking Total audio products per protocol 660 4500 "Over the past 12 months Dante 4,176 >US$2bn OEM brands again increased it’s dominance in Total addressable audio networking technology. An shipping Dante 4000 market order of magnitude more products enabled products
Slide 9: Ongoing traction in Video
Ongoing traction in Video In FY24 we have… Achieved FY24 objective to double the video ecosystem (target substantially over-achieved) 54 Dante AV partners / OEMs licenced for video up from 34 at FY23 84 Dante video products launched by customers at the end of FY24, up from 48 products at FY23 Next-g
Slide 10: Expanding into Configuration, Control and Monitoring
Expanding into Configuration, Control and Monitoring Dante is expanding to enable configuration, control and monitoring of AV networks New: Launched Infocomm24! Managed Dante (SaaS) Unmanaged Dante Dante Director Dante Controller Delivers security, user access controls, logging, Allows users to rout
Slide 11: Dante Director: management ecosystem
Dante Director: management ecosystem Successful launch at InfoComm 2024 Dante Director Service providers and AV managers • InfoComm 2024: Launch generated significant interest from a wide range of stakeholders, including end users, seeking remote management integrators and vendors • Strong Market De
Slide 12: Financial Performance
| wi Hee y Financial» Performa nce. c y. *@&
Slide 13: Revenue Growth Continues
Revenue Growth Continues Revenue (US$M) Dante units shipped ('000s) 1,427 $60.0 $60 CCM* Software* Other CCM* Software* $46.7 1,064 552 $50 $15.4 $40 816 $33.4 $11.6 756 470 $30 $25.0 $8.7 530 330 $20.4 326 $43.8 $20 $6.8 190 875 $4.2 $34.6 $24.4 595 $10 430 486 $15.8 $17.9 341 $0 FY20 FY21 FY22 FY2
Slide 14: >50% of growth in Gross Profit dollars converts to incremental EBITDA
>50% of growth in Gross Profit dollars converts to incremental EBITDA EBITDA Waterfall (A$’000s) 2 3 5 4 1 EBITDA (A$M) Notes 1 Gross profit dollars reflects A$21.8M revenue increase 2 Headcount up from 197 (Jun-23) to 225 (Jun-24) 20.4 3 Sales and Marketing due to increased advertising, re-branding
Slide 15: Profitability Evident in Scalable Cost Base
Profitability Evident in Scalable Cost Base Ongoing focus on innovation and R&D to maximise Operating leverage in the cost base is once again future growth opportunities evident as additional gross profit drives profitability Research and Development (A$M) Revenue, cost trends (A$M) 29 45.0% 100 80%
Slide 16: Income Statement
Income Statement (A$'000) FY24 FY23 Change Change (%) US$ revenue increased 28.4% to US$60.0M - A$ Revenue 91,483 69,699 21,784 31% revenue increased 31.3% to A$91.5M Gross profit 67,959 50,228 17,731 35% Gross margin improvement to 74.3% - movement due to product mix & cost down on Brooklyn Gross M
Slide 17: Cash-flow Statement
Cash-flow Statement FY24 Operating Cashflow to EBITDA Bridge (A$'000) FY24 FY23 EBITDA $20.4m Reverse non-cash Share-based payments $1.3m Receipts from Customers * 87,910 71,171 Interest received $3.3m Payments to suppliers and employees * (65,106) (59,123) Improvement in working capital/other $0.4m
Slide 18: Balance Sheet
Balance Sheet (A$’000s) 30-Jun-24 30-Jun-23 Change ($) Cash & term deposits of $117M, with no debt, up $77M Cash 47,842 24,031 23,811 from PCP Term deposits 69,195 16,000 53,195 Inventory decreased by $1.5M to $5.2M due to higher Trade and other receivables 10,690 6,268 4,422 turnover of finished go
Slide 19: Outlook
Outlook 19
Slide 20: FY25 Priorities
Driving revenue FY25 Priorities 1 2 3 4 Double down on sales Get customer video Successfully deliver Dante Director - & marketing activities products to market new Dante products to ongoing development to drive revenue with repeat orders broaden revenue base of technology and infrastructure Audinate
Slide 21: M&A update
M&A update M&A assessment framework • Established an M&A framework & target list Technology IP Acquisition of technologies relevant to our strategic roadmap, including video compression, software-based signal processing, IoT-style device • Raised capital to strengthen balance sheet to management, et
Slide 22: FY25 Outlook Global AV Industry Size
FY25 Outlook Global AV Industry Size 2023 2029 US$306 US$422 Customer re-balancing of inventory holdings and rate of OEM’s clearing raw materials to influence revenue BILLION Shorter order lead times – now back to pre-COVID 2024 BILLION levels US$325 Ongoing customer preference for software-based Da
Slide 23: Investment Highlights
Investment Highlights Global Market Attractive Financial Innovative Large Market Strong Customer Base Experienced Leader Profile Products Opportunity Management Dominant position Gross margins >74% Broad intellectual AV just starting digital Existing customer base of Founder-led as de-facto supporte
Slide 24: FY24 ESG Highlights
FY24 ESG Highlights Employee Engagement Supporting Diversity Supply Chain Cyber Security Environment & Wellbeing Families & Inclusion Management Management Preparation for climate- Top quartile Over the past two years, 14 Females represent 26% of Regular audit of key Strengthened IT, privacy related
Slide 25: Questions
Questions 25
Slide 26: Dante Product Map
Dante Product Map System Software (For system setup, management and troubleshooting) Dante Dante Dante Audio Visual Controller Domain Manager Director Integrators, Professionals & Consumers AVIO Network Adaptors PC/Mac/Cloud Software • Analogue • USB / Bluetooth • Dante Studio (AV) • Dante Virtual S
Slide 27: OEM Business Model
OEM Business Model Audinate’s Original Equipment Manufacturer (OEMs) customers purchase Dante chips, cards & modules and software to build inside their ProAV products Dante Product Map Audinate products OEM example customers OEM products Audinate FY24 Investor Presentation 27
Slide 28: OEM Design Wins Drive Future Revenue Growth
OEM Design Wins Drive Future Revenue Growth Buy OEM Release DESIGN Prototype Pre-sales Product New WIN Design Dante Product Units OEM sells OEM Dante- Manufactures enabled more AV AV products Design wins Customer From design win to products are a key step commits to use product release in the OEM Da
Slide 29: OEM Design Wins through Product Launch
OEM Design Wins through Product Launch Design Wins OEM Brands shipping & developing Dante-enabled Products Dante-enabled Products Ecosystem 142 4,176 126 3,853 114 621 3,610 95 538 3,123 506 500 513 161 82 2738 103 138 178 129 410 460 371 400 328 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY2
Slide 30: Dante Controller for AV Professionals
Dante Controller for AV Professionals Dante Controller Free system setup tool • Downloadable from Audinate homepage • Registration required • Define virtual wires across the network • > 270,000 downloads Manages audio and video signals Simple & easy to use • Standard industry matrix view • Training
Slide 31: Dante Audio & Adaptors
Dante Audio & Adaptors Dante Audio Chips & Modules Brooklyn Broadway Ultimo Dante Pro S1 Adaptors • Hardware based implementations for a range of product counts and price points • Transports uncompressed audio signals across standard computer networks Dante Adaptors 32 & 64 audio channel 8 & 16 audi
Slide 32: Dante Audio Software
Dante Audio Software Dante audio device software Reference Design IP Core Embedded Platform Application Library • Software based implementations for a range of product counts and price points • OEM customers, based on per unit royalty model • Transports uncompressed audio signals across standard com
Slide 33: Dante Video Products
Dante Video Products Dante AV Chips & Modules Dante AV Ultra Viper Dante AV-H Dante AV-A • Dante AV Ultra and Viper are premium products targeting live venues, broadcasters, corporate board rooms and university lecture spaces. Dante Software • Dante AV-H enables existing Premium Dante AV Fully integ
Slide 34: Dante Via & DVS for AV Professionals
Dante Via & DVS for AV Professionals Dante Virtual Soundcard Dante Via (DVS) • Routes audio from devices • Turns a computer into a and applications to one Dante-powered workstation, another – up to 16 audio integrating a Mac or PC with channels Dante-enabled audio • Connects devices and equipment on
Slide 35: Important Notice and Disclaimer
Important Notice and Disclaimer Disclaimer Past performance Market share information To the maximum extent permitted by law, none of the Past performance information, including past share All market share information in this presentation is Audinate Group Limited or its subsidiaries or their price i