AVID TECHNOLOGY Reports 11.1% Year-Over-Year Increase in Revenue for Q2 of FY2023
August 15, 2023
☀️Earnings Overview
For the second quarter of FY2023, which ended June 30 2023, AVID TECHNOLOGY ($NASDAQ:AVID) reported a total revenue of USD 108.5 million, a year-over-year increase of 11.1%. In comparison, net income for the same period the previous year was 7.4 million, while net income for the current quarter was USD -4.6 million.
Analysis
GoodWhale conducted an analysis of AVID TECHNOLOGY‘s fundamentals. The Star Chart showed that AVID TECHNOLOGY had a high health score of 8/10 in regards to its cash flows and debt. This indicates that it is capable to pay off its debt and fund any future operations. Furthermore, AVID TECHNOLOGY is strong in terms of profitability, but weaker in asset, dividend and growth. Based on this analysis, GoodWhale concluded that AVID TECHNOLOGY is classified as ‘sloth’, meaning that it has achieved revenue or earnings growth slower than the overall economy. This type of company may be interesting to value-oriented investors looking for a reliable company with a good cash flow position and strong dividend yield. Other investors may also be interested in AVID TECHNOLOGY due to its potential for capital appreciation in the short-term, particularly if the company is undervalued. Furthermore, if the company can increase its profitability and improve its asset and growth rate, then long-term investors may also be interested in AVID TECHNOLOGY as it could provide them with a good return on their investments over time. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Avid Technology. More…
| Total Revenues | Net Income | Net Margin |
| 425.44 | 32.3 | 8.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Avid Technology. More…
| Operations | Investing | Financing |
| 16.62 | -17.9 | -9.74 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Avid Technology. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 293.82 | 412.77 | -2.7 |
Key Ratios Snapshot
Some of the financial key ratios for Avid Technology are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.2% | 6.6% | 8.1% |
| FCF Margin | ROE | ROA |
| -0.3% | -18.2% | 7.4% |
Peers
The company’s competitors include 7digital Group PLC, NanoTech Entertainment Inc, and Shutterstock Inc.
– 7digital Group PLC ($LSE:7DIG)
7digital Group PLC is a digital media company that provides music, radio, and other entertainment services. The company has a market cap of 7.49M as of 2022 and a Return on Equity of 20.43%. 7digital Group PLC offers a variety of music-related services, including online music stores, radio stations, and other entertainment services. The company also provides digital media content and services to a variety of clients, including mobile phone operators, retailers, and media companies.
– NanoTech Entertainment Inc ($OTCPK:NTEK)
NanoTech Entertainment Inc is a media and entertainment company that creates and distributes digital content and services. The company has a market cap of 1.19M as of 2022. NanoTech’s products and services include video games, music, movies, and TV shows. The company’s mission is to provide high-quality entertainment experiences to consumers around the world.
– Shutterstock Inc ($NYSE:SSTK)
Shutterstock Inc is a publicly traded company that provides digital content and services. Its market cap as of 2022 is 1.7 billion dollars and its return on equity is 14.64%. The company was founded in 2003 and is headquartered in New York City. Shutterstock Inc provides digital content and services to businesses and individuals around the world. Its products and services include royalty-free images, video clips, and music. Shutterstock Inc also offers a variety of tools and services to help businesses and individuals create and manage their digital content.
Summary
AVID TECHNOLOGY reported a total revenue of USD 108.5 million for the second quarter of FY2023, showing an 11.1% increase year-over-year. The company’s net income decreased to USD -4.6 million, a decline from the 7.4 million reported in the same quarter of the previous year. While the revenue increase is an encouraging sign, investors will need to be cautious given the decrease in net income. Potential investors should consider the company’s performance, competitive landscape, and future prospects before making any decision regarding AVID TECHNOLOGY.
