Below is today's positive trading update announcement.
I view AMS as not dissimilar to AD8, in that they are carving out an industry standards for AV equipment, in AMS case for vloggers. AMS also offer a much larger range of AV editing equipment and software for the professional industry, but I believe it is at the lower technical end of the market that is driving growth (there is no breakdown in today's figures).
The rise of the vlogger is manifest in all forms of social media, that I have little personal interest in, but witness my teenage children watching on a near continuous basis. The barrier to entry for near professional level production and live streaming is now extremely low and much of that is due to AMS. For inspiration (is that the right word?) youtube stars live-stream hours of content of them gaming, likewise Tic-Toc etc. (using AMS products among others).
They are increasingly making their monitors and software the standard for all camera producers (Panasonic, Nikon, Canon, Sigma, JVC, Sony, Fujifilm) and have integrated into all the makor editing platforms (Apple Raw, Adobe and Avid). Uptake from both manufacturers and platforms has been ..... avid.
The moat is certainly not as robust as AD8's Dante as the purchaser has to buy their brand of monitor (for higher grade production) or a camera with Apple Raw software on it.
Much low quality content only requires a decent phone, so unless a prosumer level user, may require no products from AMS at all. The quality of this free software on phones will likely improve with time, but they are hoping to mitigate this with apps.
But for the foreseeable future, with a whole generation producing video content and many individuals making a living of this, the trends to increased adoption are strong.
ANNOUNCEMENT
Record FY21 Sales of $77m+ and EBITDA of ~9%
Highlights:
Unaudited sales in excess of $77m in FY21, a record result and a 73% increase on the prior corresponding period (FY20: $44.4m)
Unaudited EBITDA of circa 9% of revenue in FY21, a record result
Live streamed and in-person Investor Day on 2 August 2021
Atomos Limited (‘ASX:AMS’, ‘Atomos’ or the ‘Company’), is today pleased to provide a trading update on its full year FY21 results for the period ending 30 June 2021.
Atomos expects to deliver FY21 sales in excess of $77m, a record full year result for the Company, and a 73% increase on FY20 sales of $44.4m.
Following a strong 1H’21 with sales of $32.8m, the Company continued to build on the momentum through 2H’21, delivering sales in excess of $44.2m. This represents a 275% increase on the prior corresponding six months (2H’20: $11.8m).
AMS also expects record full-year EBITDA of circa 9% of revenue (ahead of consensus of 8.6%). Atomos intends to release its full year FY21 results in mid-August.
Commenting on the record result Chris Tait, Atomos’ Executive Chairman said: “We are delighted to be providing an FY21 sales guidance upgrade to at least $77m which is $6.6m ahead of analyst consensus. This has been an amazing performance by everyone on the Atomos team. It seems a long time ago, when, at the beginning of FY21, staff were still furloughed and monthly sales were tracking at $3m. We have finished the year with not only a record full year financial result, but also our strongest ever pipeline of new products and technologies to drive ongoing growth. The outstanding progress is a clear testament to the strength and relevance of Atomos’s offerings. I want to thank the extended Atomos team, including our staff, customers and channel partners for all their hard work and our investors for their continued support. We are excited by what the next 12 months will bring.
In addition, they also recently announced the appointment of former Apple Product Manager in professional video applications, Estelle McGechie to the newly created role of Chief Product Officer. This will no doubt cement the inter-relation of AMS and Apple.
