Audinate Group Ltd. · ASX:AD8
Audinate — Investor Presentation (August 2022)
31 slides from Audinate's investor presentation, Aug 22, 2022
Slide 1: FY22 Results
FY22 RESULTS 22 August 2022 Aidan Williams – Chief Executive Officer Rob Goss – Chief Financial Officer Authorisation: This document was approved by the Board of Audinate Group Limited Audinate Confidential | 1
Slide 2: Overview of Audinate Today
Overview of Audinate Today Products World-leading supplier of Growing network digital media networking effect of Dante Dante comprises software and hardware that resides inside the audio for the Professional AV enabled products in and video products of Audinate’s Original Equipment Manufacturer indu
Slide 3: Gross profit growth continues
Gross profit growth continues US$30M US$M Gross Profit Variance 24.9 Key Financial Metrics vs FY21 US$25M 19.2 A$46.3M Revenue 38.7% US$20M 15.0 15.6 US$15M US$33.4M US$ Revenue 33.4% 11.3 US$10M 74.7% Gross Margin % (1.7%) - 8.3 76.6% 76.4% US$5M 74.8% 74.5% 74.4% 74.7% A$4.3M EBITDA 40.9% US
Slide 4: Leading Global Supplier of Digital Media Networking
Leading Global Supplier of Digital Media Networking Total audio products per protocol 4000 “Dante continues to be the 3,610 >A$1bn Total addressable market(1) 3500 dominant force” RH Consulting 3000 OEM brands shipping Dante 410 enabled products 2500 2000 Dante enabled products 3,610 available on th
Slide 5: Another year of strong execution in FY22
Another year of strong execution in FY22 FY22 Objectives Actions 126 design wins – most designs wins ever, despite supply chain Dante video design wins and next 76 design wins relate to next generation software products (60 in 2H22) generation software products 26 video customers Initial Dan
Slide 6: Ongoing product innovation to drive growth
Ongoing product innovation to drive growth Thursday 2:13pm Saturday 8:45am (early warning of issue) Dave! The audio Device ‘Conf-main’ is out and the is offline. conference starts Dave has time to fix at 9am! the issue Before With Dante Dante Cloud Cloud Dante Ready Dante Cloud Dante Studio • Featur
Slide 7: Dante Video Update
Dante Video Update • Silex video business integration complete • Silex manufacturing restored and operational • Refined integrated product roadmap complete • 26 video OEM customers (design wins + Silex) • First phase Dante Studio launched Next steps Dante AV-H • Release of Dante AV-H • Software solu
Slide 8: Financial Performance
FINANCIAL PERFORMANCE 22 August 2022 FY22 Results Audinate Confidential | 8
Slide 9: Chips, cards & modules drive revenue growth
Chips, cards & modules drive revenue growth Revenue (US$M) Dante units shipped ('000s) 33.4 900 816 $35.0 756 800 $30.0 8.7 25.0 700 $25.0 330 20.3 20.4 600 515 530 326 $20.0 6.8 500 15.2 3.2 398 4.2 163 190 $15.0 400 11.3 2.3 275 150 24.4 300 $10.0 1.5 95 486 16.6 15.8 17.9 200 430 12.5 352 341 $5.
Slide 10: Income Statement
Income Statement (AU$'000) FY22 FY21 Change Change 1 US$ revenue increased 33.4% to U$33.4M - A$ revenue increasing 38.7% to A$46.3M 1 Revenue 46,292 33,369 12,923 39% 2 Gross margin remained relatively strong in FY22 at 74.7% Gross profit 34,591 25,504 9,087 36% despite supply chain cost pressures.
Slide 11: Additional revenue drives EBITDA growth
Additional revenue drives EBITDA growth 1 2 3 4 1 Gross profit dollars improved due to a US$8.4M increase in revenue EBITDA (A$M) 2 # of employees increase from 135 (FY21) to 178 (FY22) 3 $0.9M increase in Opex as the team expands and travel recommences 4.3 2.8 3.0 4 $0.5M Silex acquisition and inte
Slide 12: Ongoing revenue growth reinvested in R&D
Ongoing revenue growth reinvested in R&D • Ongoing focus on innovation and R&D to maximise future growth opportunities • Operating leverage in the cost base is once again evident as additional revenue drives EBITDA growth Research and Development (A$M) Revenue, cost trends (A$M) 80% 32% 65 20 31% 35
Slide 13: Cash-flow Statement
Cash-flow Statement (AU$'000) FY22 FY21 1 Receipts from Customers * 43,021 33,484 FY22 Operating Cashflow has been impacted by: Payments to suppliers and employees * (41,935) (27,677) - increase in inventory $3.7m Interest received 182 291 - increase in debtors (record June) $3.2m Interest paid (91)
Slide 14: Balance Sheet
Balance Sheet 1 Cash & term deposits of $44.5M, with no debt (AU$’000s) 30-Jun-22 30-Jun-21 Change ($) 1 Cash 17,465 38,429 (20,964) 2 Trade and other receivables up $3.3M to $6.5M with a Term deposits 27,000 27,000 - 2 Trade and other receivables 6,513 3,199 3,314 record sales month in June 5,601 1
Slide 15: Outlook
OUTLOOK 22 August 2022 FY22 Results Audinate Confidential | 15
Slide 16: Supply chain challenges linger
Supply chain challenges linger • Chip shortages • Dante product redesign • Spot inventory buys • Dante price increases • Variable delivery dates (10-25%) – maintain GP% • Supplier price increases • Record design wins • Factory closures • Record demand (backlog) Over the next six months • Supply chai
Slide 17: Continuing growth
Continuing growth 1. Support customer transition to more available chips & away from legacy products 2. Manufacturers to release Dante video products FY23 Priorities 3. Generate > US$3 million in video revenue 4. Drive adoption of new Dante products 5. Continued focus on Operational Efficiency 22 Au
Slide 18: FY23 Outlook
FY23 Outlook • Existing headcount of 178 is the foundation for The pro-AV industry is expected to grow doubling revenue in medium term 11% in 2022, to hit a new high-water mark • Targeting additional headcount of 10% in FY23, of $263 billion globally. AVIXA estimates with a focus on building capabil
Slide 19: Investment Highlights
Investment Highlights Global Market Leader Attractive Financial Profile Innovative Products • Dominant position as de- • Gross margins >74% • Broad intellectual property facto standard in audio supported by strong IP portfolio developed in networking Australia • Consistent historical • 14x market ad
Slide 20: ESG Highlights
ESG Highlights Employee Engagement Supporting Families Diversity & Inclusion & Wellbeing • Top quartile employee • Approved new Paid Parental • 29% female representation engagement Leave policy with industry amongst senior executive leading leave allowances for leadership team • Employee Assistance
Slide 21: Questions
QUESTIONS 22 August 2022 FY22 Results Audinate Confidential | 21
Slide 22: Appendices
Appendices 22 August 2022 FY22 Results Audinate Confidential | 22
Slide 23: Audinate is Driving the Transformation of AV
Audinate is Driving the Transformation of AV • Networked digital connectivity is Audinate Total Addressable Market (‘TAM’)* replacing traditional, point-to-point The TAM for digital audio networking is analogue cabling in the AV industry A$400m annually for chips, cards, Audinate share of Audio Mark
Slide 24: OEM Design Wins drive future revenue growth
OEM Design Wins drive future revenue growth OEM Product Buy Prototype Release New Pre-sales DESIGN WIN Design Dante Units Product Customer OEM OEM sells commits to Manufactures Dante- use Dante in more AV enabled AV new products products products • Design wins are a key step in the OEM sales cycle •
Slide 25: Design wins through to product launch
Design wins through to product launch Design Wins OEM Brands shipping Dante-enabled Products Dante-enabled Products Ecosystem 3,610 430 410 3,123 380 371 2,738 126 330 328 2,134 95 280 270 77 82 78 82 1,639 73 230 221 194 1,182 180 874 158 130 80 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY16 FY17 FY18 FY1
Slide 26: Dante Controller
Dante Controller Dante Controller • Free system setup tool • Downloadable from Audinate homepage • Registration required • Makes virtual wires • > 250,000 downloads • Manages audio and video signals • Simple & easy to use • Standard industry matrix view • Training provided via Dante Certification •
Slide 27: Dante Audio and Adaptors
Dante Audio and Adaptors Dante Audio Chips & Modules Brooklyn Broadway Ultimo Adaptors • Hardware based implementations for a range of product counts and price points • Transports uncompressed audio signals across standard computer networks Dante Adaptors • Connects legacy equipment to Dante (mostly
Slide 28: 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 29: Dante Via & Dante Virtual Soundcard
Dante Via & Dante Virtual Soundcard Dante Virtual Soundcard • Turns a computer into a Dante-powered workstation, integrating a Mac or PC with Dante- enabled audio equipment on a network • Connects to record, process and playout using any audio application and any combination of Dante-enabled devices
Slide 30: Dante Domain Manager
Dante Domain Manager Dante Domain Manager • Security • User logins and roles • Prevent unauthorised changes • Scalability • Create Dante systems spanning campus networks • Group Dante devices into logical managed systems • Visibility • Centralise Dante system management • Monitor system status and c
Slide 31: Important notice and disclaimer
Important notice and disclaimer Disclaimer Past performance The non-IFRS measures do not have any standard definition under IFRS and may be calculated differently To the maximum extent permitted by law, none of the Past performance information, including past share price information, given in this p