Global hearing health leader, Audeara Ltd (ASX:AUA) announced its impressive financial growth and international expansion in its Q4 FY23 Quarterly Activities Report.
The Company, which specialises in innovative listening solutions for people with hearing challenges, achieved record-breaking quarterly revenue and made significant progress in expanding its global presence.
Record Quarterly Revenue
Audeara reported unaudited quarterly revenue of $0.94 million, representing a 23% year-on-year increase compared to the same quarter in FY22, which saw $0.76 million in revenue. This quarter's revenue also marked a significant 54% increase compared to the previous quarter, Q3 FY23 ($0.67 million), setting a new record as the company's highest revenue quarter to date.
For the entire fiscal year 2023, Audeara recorded unaudited total revenue of $2.9 million, reflecting a notable 40% increase year-on-year compared to FY22's revenue of $2.07 million. Additionally, unaudited cash receipts for FY23 reached $3.05 million, indicating an impressive 50% growth compared to FY22's cash receipts of $2.03 million.
Reduction in Operating Cash Outflows
Audeara demonstrated a pleasing reduction in operating cash outflows during Q4 FY23.
The operating net cash outflows amounted to $0.69 million, representing an 11% decrease year-on-year compared to the same quarter in FY22 ($0.78 million) and a 14% decrease quarter-on-quarter compared to Q3 FY23 ($0.81 million).
The reduction can be attributed to lower staffing costs, director fees, and higher revenue generation.
European and American Expansion Initiatives
Audeara made significant progress in expanding its presence in both European and American markets. The company received its first purchase orders from global audiology groups WS Audiology and Demant A/S in Europe. Audeara collaborated with WS Audiology's subsidiary, HearUSA, leading to the successful launch of Audeara products at the HearUSA flagship location in Florida Palm Gardens in May 2023.
Negotiations are currently underway with Amplifon S.p.A for market entry into European countries, expected to occur in FY24. Amplifon, known for its extensive distribution network, presents a significant opportunity for Audeara's expansion plans.
AUA Technology Development
AUA Technology, Audeara's business unit focused on providing proprietary technology and design capabilities to third-party organizations, continues to make progress. The development of music instrument brand products for licensing revenue is on track for mass production in H1 FY24. Additionally, Audeara's strategic partnership with Clinico Inc for the development of Healthy Hearing Earbuds is progressing well, with the product expected to be launched in FY24.
In a statement, Dr. James Fielding, CEO of Audeara, highlighted the company's achievements and future growth strategies. He said, "Operations in the June quarter were highlighted by a record revenue result, which reflected both the strength of our Australian operations and strong strategy execution to pursue growth in international markets while progressing workstreams to allow for the licensing of our solutions to third parties to further grow revenue. Audeara is now positioned to capitalise on additional sales and distribution opportunities both domestically and abroad in the second half of 2023, leveraging existing networks with customers, distribution partners, and industry groups. These initiatives were complemented during the period by a disciplined focus on cost management, which resulted in record revenues alongside a pleasing reduction in cash outflows."
Financial Overview
Audeara reported cash receipts of $0.59 million during Q4 FY23, representing a 13% decrease year-on-year compared to the same quarter in FY22 ($0.68 million). However, an additional $0.38 million of receivables was received subsequent to the end of the quarter. The net operating cash outflows for Q4 FY23 amounted to $0.69 million, reflecting an 11% decrease year-on-year compared to Q4 FY22 ($0.78 million).
