Audinate (AD8) is another company to release results on Monday.

During the FY22 results presentation it was forecast that revenue would double over the next 3 years. This forecast was confirmed more recently.

To achieve that result requires revenue CAGR of 30% which implies an FY23 target of A$60M. 1H23 revenue was A$30.8M so this is a solid expectation.

Management also reported that costs had increased by 30% mainly to increase salaries and retain talent.

1H23 was borderline EBITDA positive with a A$0.38M loss after tax. This should only deteriorate if costs have continued to blow out.

Things to look for in the FY23 results:

1. Rev > A$60M

2. Staff numbers of 196 to 200.

3. Video revenue of > US$3M

4. Indication of pricing power and price increases on products.

5. Improved staff retention

6. An after-tax profit!!

The current share price of $10.30 is in the fair valuation range only if the revenue continues to grow at the forecast rate and there are no other nasty surprises. I notice the share price has increased 18% over the last 4 weeks so the market is expecting a good result.