I just got off the AVA call.

Key takeaways:

Mal emphasized that FY24 was a transitional year, completing restructuring, launching new tech/products, and setting a firm foundation for FY25. It was a tale of two halves, with things accelerating in the final quarters.

Margin drop was due to a shift in segment mix -- Detect has the best margins, but strong growth in Access was why group margin eased back. Should normalise going forward.

Detect is really the core business, and Mal described this as a program or project based business, one that can have long lead times (3-12 months)

A $100 million pipeline, particularly strong in the Detect segment, is noteworthy. Mal repeatedly emphasised these leading indicators and you can see from the latest outlook table that they continue to expect high revenue growth against a relatively fixed costs base

At the mid point, you have ~62% revenue growth expected in FY25 and an EBITDA of ~$20m -- a 42% operating margin.

(interesting to hear Mal say "I know you've heard this before")

Aura AI-X has been transformational since its launch, contributing to improved detection and lower false alarms. The strong sales of over 100 units and Cobalt 2’s 48% growth in Access orders demonstrate successful product adoption and integration across segments

There was discussion about H1 traditionally being weaker than H2, with specific references to Q1 (northern summer) and Q3 (holiday season) slowdowns, aligns with their operational cycles.

Illuminate’s expected move to break-even or profitability in FY24

There was a noticeable shift toward emphasizing predictability in revenue, seen in their focus on bookings, pipeline, and backlog as core metrics.

Its a fractured and competitive market, and AVVA is trying to distinguish itself by focusing on the tech and aligning with bigger customers.

Company well funded, no expectations to raise capital. Board happy to commit to paying 30% of EBITDA as a dividend, which they think leaves ample room for growth investment.

Could FY25 finally be the year where things take off? Cost base and operating segments now set, good momentum in orders and sales.. Maybe. If they get anywhere near guidance you'd have to assume something of a rerate.

A do or die year for me.