The Atomos Ltd (ASX: AMS) share price has been a strong performer in morning trade.
At the time of writing the global video technology company's shares are 22% higher at $1.28.
Why is the Atomos share price charging higher?
Investors have responded positively to an announcement out of Atomos this morning which revealed an upgrade to its FY 2019 guidance.
According to the release, the company now expects to report full year revenue in excess of $50 million. This will be a year on year increase of at least 40% on FY 2018's $35.6 million and be materially higher than its prospectus forecast of $42.2 million.
In addition to this, Atomos' EBITDA in the second half is forecast to come in stronger than expected. Management expects pro forma EBITDA to be broadly in line with what it achieved in the first half ($0.7 million), meaning full year EBITDA of ~$1.4 million. This compares favourably to its prospectus forecast of $0.3 million and FY 2018's $0.2 million.
Why is Atomos outperforming expectations?
There have been several factors driving the company's stronger than expected performance in FY 2019.
This includes stronger than forecast sales from the Ninja V product which was launched in September 2018. Ninja V was the first product released on the Ninja platform, a highly leverageable new technology platform incorporating a redesigned operating system that will underpin a suite of new products over the coming years.
Another driver has been stronger than forecast sales from its two Shinobi devices. These are 5-inch HDMI and SDI monitors targeting the rapidly growing 'Social' segment of the video market. They were launched in February and March 2019.
Atomos' chief executive officer, Jeromy Young, appeared to be very pleased with the company's performance in its first year as a public company.
He said: "The improved revenue and Pro Forma EBITDA expectations reflect the strong customer response to both existing and new Atomos products and we are particularly pleased to exceed expectations in our first year as a public company as we seek to deliver shareholder value."
Adding: "The Company has worked hard during the past few years to create the underlying 'Ninja Platform' that we are now successfully leveraging across multiple products and market segments. Furthermore, the decision to increase our focus on capturing market share with the launch of new products in the rapidly growing Social video market is proving to be very successful. In the Prospectus we stated a goal of doubling our product line during the next few years and we are well on track to deliver on that goal with four new products (including Ninja V) having been announced during the last nine months."
Today's gain means the Atomos share price is up 212% since listing on the ASX late last year at 41 cents per share, making it one of the most successful IPOs over the last 12 months along with buy now, pay later provider Splitit Ltd (ASX: SPT).
