Atomos (ASX:AMS) share price soars 16% on FY21 earnings

Shares in the manufacturer and seller of video equipment have lifted this morning.

| More on:
These three ASX mining shares rocketed by more than 20% today

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Atomos Ltd (ASX: AMS) share price has jumped 16% into the green as the manufacturer and seller of video equipment reported its FY21 earnings.

Let's investigate further.

Atomos share price lifts on record revenue and strong cash flow

Atomos detailed several investment highlights it achieved this quarter, including:

  • Record revenue of $78.6m, a 77% year on year growth schedule
  • EBITDA of $8.2m on a margin of 10.4%, (10.4% of sales), compared to a loss of $7.1 million in FY20
  • EBITDA margin trending towards 12-15%
  • Strong cash flow of $7.1m, an 87% conversion rate

What happened in FY21 for Atomos?

In a positive for the Atomos share price, it recognised record revenue of $78.6 million in FY21. This signifies a 77% growth from the year prior.

Consequently, the company "flagged a return" to pre-pandemic sales volumes, underscored by "rapid adoption of Apple and AMS's ProRes Raw video standard", amid other product launches.

In fact, Atomos describes ProRes Raw as its "key revenue driver" in FY21, where "ten major camera partners" have now integrated "RAW enabled cameras".

As a result, the company has seen monthly activations on ProRes Raw "increase sevenfold in 18 months".

Furthermore, Atomos recognised this revenue on higher gross margins of 47.6%, up from 39.8% last year, largely driven by "improved pricing across the entire product range".

Moreover, the company completed a raft of new product launches across the year. This includes "software applications" for the first time, as per the release.

For instance, Ninja V+, the "world's first 8K and high frame rate monitor recorder" was released in coincide with AtomX Cast. When paired together, the duo creates a "broadcast studio quality solution" for users.

What did management say?

Speaking on the results, Atomos executive chair Chris Tait said:

I am delighted to be reporting these outstanding results. It seems a long time ago when at the start of FY21 we were unsure of the extent and pace of the Atomos recovery from the pandemic. The speed and strength of that recovery and the ongoing momentum is a testament to the skill and hard work of the entire Atomos team.

Regarding the ProRes Raw and new product launches, Tait added:

In particular we are pleased to see the establishment of the ProRes RAW ecosystem with Atomos playing an integral part in its global adoption. With six new products coming to market in the last few months of FY21, including our first two software offerings and with the new Series 2 platform well under development, we are excited about what FY22 will bring.

What's next for Atomos?

The company estimates EBITDA margins to "trend towards" 12–15% over the coming periods.

Moreover, Atomos will "carefully consider" acquisitions in the three core areas. These include technology standards, complimentary tech and new complementary markets.

It anticipates the effect of product launches in FY21 to continue building sales momentum. As such, Atomos has "new products and services in the pipeline already".

The Atomos share price has posted a year to date return of 34%, extending the previous 12 month's climb of 148%.

These gains have outpaced the S&P/ASX 200 Index (ASX: XJO)'s return of around 25% over the past year.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended Atomos Ltd. The Motley Fool Australia has recommended Atomos Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Earnings Results

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Earnings Results

Why is the QBE share price racing ahead of the benchmark on Friday?

Investors are bidding up QBE shares today. But why?

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Earnings Results

Macquarie share price leaps higher on rising full-year profits

Macquarie reported its full year FY 2025 results today. Here's why ASX investors are reacting enthusiastically.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Technology Shares

Guess which ASX 200 tech stock is crashing 14% on results day

This tech stock is having a rough time today. But why?

Read more »

Worried woman calculating domestic bills.
Earnings Results

ANZ share price falls on half-year results

How did the bank perform during the first half? Let's find out.

Read more »

Man looking happy and excited as he looks at his mobile phone.
Bank Shares

NAB share price jumps on solid half year results

Investors have responded positively to the bank's results.

Read more »

Lines of codes and graphs in the background with woman looking at laptop trying to understand the data.
Earnings Results

Westpac share price sinks on half-year results miss

Let's see how the big four bank performed during the first half.

Read more »

Miner looking at a tablet.
Gold

Newmont share price lifts off on first-quarter results

The ASX 200 gold stock is charging higher on Thursday.

Read more »

A man wakes up happy with a smile on his face and arms outstretched.
Healthcare Shares

ResMed shares jump 8% on strong Q3 update

It was yet another strong quarter from this high-quality company.

Read more »