Audinate Group Ltd. · ASX:AD8
Audinate — Investor Presentation (February 2024)
35 slides from Audinate's investor presentation, Feb 12, 2024
Slide 1: Pioneering the Future of AV
AUDINATE at ‘AUDINA ATE PIONEERING THE FUTURE OF AV ng y fs XK AUDINATE CONFIDENTIAL
Slide 2: 1H24 Investor Presentation
1H24 Investor Presentation Aidan Williams, CEO Rob Goss, CFO Approved by the Board of Audinate Group Limited 1 2 Fe b ru a ry 2 0 2 4 A UD I N A T E C O N FI D E N T I A L
Slide 3: Leading global Pro-AV technology supplier
1H24 Investor Presentation Leading global Audinate is the company behind the Dante media networking solution used in the Pro-AV technology professional AV industry supplier Audinate locations 621 4,008 Total OEM 13 Dante-enabled brands licensing Locations Poland USA products Dante products UK Belgiu
Slide 4: World-leading technology supplier to Pro-AV
1H24 Investor Presentation 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 S
Slide 5: Networked AV market opportunity is US$2 billion
1H24 INVESTOR PRESENTATION Networked AV market Audinate Updated TAM* US$2bn* opportunity is US$2 billion Audio share of Audio Market Networking estimated at 9% Audio US$330m Revenue opportunity for addressable audio products including speakers, microphones, amplifiers, mixing consoles and signal pro
Slide 6: Dante Product Map
1H24 Investor Presentation Dante Product Map System Software (For system setup, management and troubleshooting) Audio Visual Dante Dante Domain Dante Controller Manager Director Integrators, Professionals & Consumers AVIO Network Adaptors PC/Mac/Cloud Software • Analogue • USB / Bluetooth • Dante St
Slide 7: Gross profit growth accelerates
1H24 INVESTOR PRESENTATION Gross profit growth accelerates Variance Other Key Financial Metrics vs 1H23 US$M Gross Profit +50.1% 24 Historical CAGR 24% - 32% 139.0% 137.0% A$46.6M Revenue 51.1% $21.8 135.0% 133.0% 22 131.0% 129.0% 127.0% 20 $18.9 125.0% 123.0% 121.0% US$30.4M US$ Revenue 47.7% 119.0
Slide 8: Leading Global Supplier of AV Networking
1H24 INVESTOR PRESENTATION Leading Global Supplier of AV Networking Total audio products per protocol 4,008 4000 "Over the past 12 months Dante 430 again increased it’s dominance in >US$2bn OEM brands audio networking technology. An Total addressable order of magnitude more products 3500 shipping Da
Slide 9: Strong Progress on FY24 Objectives
1H24 INVESTOR PRESENTATION Strong Progress on FY24 Objectives FY24 Objectives Actions 1. Double the video ecosystem >30k video - Achieved six months earlier than planned units-in-field or shipped - Next-generation Dante AV Ultra product complete (first OEM product on display at ISE) - Dante Director
Slide 10: Audinate continues to innovate
Audinate continues to innovate Dante Pro S1 Dante Director Compact and cost-effective system-on-a-chip SaaS product that enables remote management What is it? of Dante installations. Builds on existing (SoC) to integrate industry-leading Dante network functionality in low channel count devices. func
Slide 11: More growth for Dante Video
1H24 INVESTOR PRESENTATION More growth for Dante Video In 1H24 we have… Achieved FY24 objective to double the video ecosystem to greater than 30,000 units in field or shipped six months earlier than planned 50 OEMs have now licensed Dante video, up from 30 OEMs at 1H23 66 Dante video products launch
Slide 12: Financial Performance
1H24 Investor Presentation Financial Performance 1 2 Fe b ru a ry 2 0 2 4 A UD I N A T E C O N FI D E N T I A L
Slide 13: Chips, cards & modules drive revenue growth
1H24 Investor Presentation Chips, cards & modules drive revenue growth Revenue (US$M) Dante units shipped ('000s) $35.0 800 744 30.4 $30.0 700 646 26.2 7.3 600 230 $25.0 20.6 6.9 18.6 500 418 290 $20.0 409 412 405 14.8 4.7 400 347 13.9 4.8 $15.0 168 145 180 11.1 3.8 300 185 3.5 22.7 158 514 $10.0 3.
Slide 14: >50% of growth in Gross Profit dollars converts to incremental EBITDA
1H24 Investor Presentation >50% of growth in Gross Profit dollars converts to incremental EBITDA EBITDA Waterfall (A$’000s) 2 3 4 1 EBITDA (A$M) Notes 1 Gross profit dollars reflects A$15.8M revenue increase 2 Headcount up from 186 (1H23) to 204 (1H24) 10.1 6.7 3 Direct Marketing due to increased ad
Slide 15: Continuing to balance investment in R&D with improved operating leverage
1H24 Investor Presentation Continuing to balance investment in R&D with improved operating leverage Ongoing focus on innovation and R&D to maximise Operating leverage in the cost base is once again future growth opportunities evident as additional gross profit drives profitability Research and Devel
Slide 16: Income Statement
1H24 Investor Presentation Income Statement (A$'000) 1H24 1H23 Change (%) US$ revenue increased 47.7% to U$30.4M with A$ revenue increasing 51.1% to A$46.6M Revenue 46,604 30,843 51% Gross profit 33,481 21,949 53% Employee expenses driven by headcount increasing from Gross Margin % 71.8% 71.2% 186 (
Slide 17: Cash-flow Statement
1H24 INVESTOR PRESENTATION Cash-flow Statement (A$'000) 1H24 1H23 1H24 Operating Cashflow to EBITDA Bridge Receipts from Customers * 46,631 29,795 EBITDA $10.1m Payments to suppliers and employees * (35,482) (28,089) Reverse non-cash Share-based payments $1.8m Interest received $1.0m Interest receiv
Slide 18: Balance Sheet
1H24 INVESTOR PRESENTATION Balance Sheet (A$’000s) 31-Dec-23 30-Jun-23 Change ($) Cash 62,172 24,031 38,141 Term deposits 49,500 16,000 33,500 Trade and other receivables 6,976 6,268 708 Inventories 6,222 6,707 (485) A$111.7M in Cash & Term Deposits Income tax receivable 33 - 33 Property, plant and
Slide 19: Outlook
1H24 Investor Presentation Outlook 1 2 Fe b ru a ry 2 0 2 4 A UD I N A T E C O N FI D E N T I A L 19
Slide 20: Continuing focus on growth: FY24 Priorities
1H24 INVESTOR PRESENTATION Continuing focus on growth FY24 Priorities 1 2 3 4 5 Double the Release Success with Deliver Improve video additional Dante initiatives to profitability ecosystem* video and Connect cloud improve and cashflow cloud products offering scalability of cost base * >30k video un
Slide 21: FY24 Outlook
1H24 INVESTOR PRESENTATION FY24 Outlook Growth in US$ gross profit dollars consistent with historical performance for the full year (FY24) Ongoing profitability & positive operating cash flow Additional headcount of up to 15% between core and growth opportunities in video, cloud & professional Trans
Slide 22: Investment Highlights
1H24 INVESTOR PRESENTATION Investment Highlights Global Market Attractive Financial Innovative Large Market Strong Customer Experienced Leader Profile Products Opportunity Base Management Leading position as Gross margins >70% Broad intellectual AV just starting Existing customer Founder-led de-fact
Slide 23: ESG Highlights
1H24 INVESTOR PRESENTATION ESG Highlights Employee Supporting Diversity Supply Chain Cyber Security Environment Engagement Families & Inclusion Management Management & Wellbeing Implemented Paid 29% female Regular audit of key Strengthened IT, Completed initial Top quartile Parental Leave policy rep
Slide 24: Appendices
Appendices 1 2 Fe b ru a ry 2 0 2 4 A UD I N A T E C O N FI D E N T I A L
Slide 25: OEM business model
1H24 INVESTOR PRESENTATION 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 (slide 6) Audinate products OEM example customers OEM products 1 2 Fe b ru a ry 2 0 2 4
Slide 26: OEM Design Wins drive future revenue growth
1H24 INVESTOR PRESENTATION OEM Design Wins drive future revenue growth OEM Buy Release DESIGN Pre-sales Product Prototype New WIN Design Dante Units Product OEM sells OEM Dante- Manufactures enabled AV more AV products products Design wins are a Customer commits From design win to key step in the to
Slide 27: OEM Design wins through to product launch
1H24 INVESTOR PRESENTATION OEM Design wins through to product launch Design Wins OEM Brands shipping & developing Dante-enabled Products Dante-enabled Products Ecosystem Shipping product Developing product 583 4,008 513 520 538 493 500 497 3,853 3,688 3,610 84 78 3,301 430 64 391 400 3,123 360 371 4
Slide 28: Dante Controller for AV Professionals
1H24 INVESTOR PRESENTATION Dante Controller for AV Professionals Dante Controller Free system setup tool • Downloadable from Audinate homepage • Registration required • Define virtual wires across the network • > 250,000 downloads Manages audio and video signals Simple & easy to use • Standard indus
Slide 29: Dante Audio and Adaptors
1H24 INVESTOR PRESENTATION 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 digital audio signals across standard computer networks Dante Adaptors 32 & 64 a
Slide 30: Dante Audio Software
1H24 INVESTOR PRESENTATION 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
Slide 31: Dante Video Products
1H24 INVESTOR PRESENTATION Dante Video Products Dante AV Chips & Dante AV Ultra Viper Dante AV-H Dante AV-A Modules • 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 P
Slide 32: Dante Via & DVS for AV Professionals
1H24 INVESTOR PRESENTATION Dante Via & DVS for AV Professionals Dante Virtual Soundcard Dante Via (DVS) • Routes audio from • Turns a computer into a devices and Dante-powered applications to one workstation, integrating another – up to 16 a Mac or PC with Dante- audio channels enabled audio • Conne
Slide 33: Dante Domain Manager for AV Professionals
1H24 INVESTOR PRESENTATION Dante Domain Manager for AV Professionals 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 syste
Slide 34: Important notice and disclaimer
1H24 INVESTOR PRESENTATION 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 price All market share information in this presentation is based Audinate Group Limit
Slide 35: Audinate Pty Ltd ABN 41 120 828 006
Audinate Pty Ltd Level 7, 64 Kippax Street +61 2 8090 1000 ABN 41 120 828 006 Surry Hills NSW 2010 www.audinate.com
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