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Added 6 months ago
#Business Model/Strategy

Listed ASX on 28 December 2018 (company been around since 2010)

IPO price $0.41

AMS provides simple to use and affordable monitor recorder content creation products. Atomos’ devices take images directly from the sensor of all major camera manufacturers, then enhance, record and distribute them in high-quality formats for content creation using the major video editing software programs.

Users of its products include but are not limited to live news broadcasters, YouTubers, short film makers, corporate marketers, and live streamers.

In light of this, management believes the company is well-positioned to profit from the forecast growth in original content spending and the rise in professional-amateur content creators.

Basically better than a smartphone but not crazy expensive for professional outfits - inbetween space. 

Atomos’ product portfolio addresses a US$10 billion (CIPA report, 2017) camera equipment market, making equipment that drives social and corporate video content.

Strategic relationships with key technology providers within the ecosystem including Apple, Adobe, Sony, Canon, Panasonic, Nikon & JVC Kenwood.

Vision Statement “Our Vision is to invent and deliver ground breaking and disruptive technologies that enhance, simplify and ultimately democratise video content creation"

Three key market segments:

– Social: consumers / prosumers who create and share on free, advertisement driven platforms

– Pro Video: advertising, events, corporate, broadcast and education

– Entertainment: production companies producing high-quality content for TV and cinema usually viewed on subscription streaming platforms

Market update 22 May 2019  - expecting its financial year revenue to be in excess of $50 million, an 18.5% improvement from its prospectus forecast of $42.2 million.

The second half FY19 Pro Forma EBITDA is anticipated to be ahead of expectations and broadly in line with the first half Pro Forma EBITDA of $0.7m. This compares to the Prospectus forecast of $0.3m for the full year (FY18: $0.2m)

Strong potential for continued growth

Expansion into growing Social & Entertainment video content markets – Double core product range in 2 years

 

looks to be Cash flow positive 2020 

 

 
Last edited 2 months ago
#Risks

It is worth keeping in mind that this is really a hardware/device company, which doesn't have a huge moat. While I have doubled down on AMS in my Strawman scorecard, I am acutely aware of the risk of new competitors taking market share from AMS.

An example of a bear thesis - GoPro. See the atached image of the share price over the past 5 years.

GoPro developed products for a more mainstream market compared to AMS and so was always likely to attract strong competition.

I will continue to hold so long as growth continues to accelerate (or at least hold steady). If growth slows, or a significant competitor enters the market, I will bail out quickly. *29/9/19 update* - I closed one position after a stong run, now just hold a single Strawman position.

 
Added 6 months ago
#ASX Announcements

FY19 guidance upgrade ann

View Attachment

 
Added 6 months ago
#History

Recenty IPO'd founder led company currently making a profit and growing revenues.

 
Added 7 months ago
#Bull Case
stale

Today announced the expansion of its product range with the launch of three new products targeted at the rapidly growing social, pro-video, and entertainment segments of the video market.

FY 2018 AMS reported sales of $35.65 million up ~18%

The announced license agreement with Dolby Vision provideds AMS access globally to Dolby’s algorithm for incorporation into recording and playback devices.

High risk speculative but one I'd add to the watch list

 
Added 7 months ago
#Business Model/Strategy
stale

Atomos Limited (AMS) is a global video technology company that enhances video content creation by producing products that connect the imaging and computer worlds together, from the point of capture (camera) through to displaying (monitor), processing and recording of the latest high-quality video onto affordable computer media for creative enhancement and distribution of content. The Company designs, develops and commercialises award-winning, simple to use monitor-recorder products that ensure content creators consistently have access to the latest video monitoring, processing and recording technologies, regardless of how advanced the camera or production equipment they use. (copied transcript)