Audinate Ltd (ASX: AD8) shares could be volatile today after the sound processing business reported a net profit of $0.66m on revenue of $28.3 million for fiscal year 2019. The revenue climbed 44%, but the profit slipped 74% when including a small one-off tax impact received in fiscal 2018. In US dollar terms that back out FX tailwinds revenue climbed 34% to US$20.3 million from US$15.3 million in the prior year.
Over the year operating expenses increased 30% to $18.3 million as the business hired new staff related to sales and engineering and took on additional costs associated with an expanding tech business. Final EBITDA (operating income) came in 284% higher at $2.84 million.
In June 2019 the business also raised $24 million from institutional and retail shareholders at $7 per share which means it now has 64.92 million shares on issue with a market cap of $482 million based on a $7.43 share price. As at period end it had no debt and $30 million cash on hand.
The group also confirmed that its current CEO and co-founder, Lee Ellison, is to retire on September 13 2019 to be succeeded by co-founder Aidan Willams.
For FY 2020 management guided to expect US dollar revenue growth in the range of 26% to 31%, although cautioned this was no certainty as "economic conditions" and US trade tariffs may impact the "near term".
It also flagged that it plans to continue investing heavily in new technology, new products, additional staff and a growing global sales presence. Therefore investors can brace for cost rises as well over FY 2020.
