Turnaround ASX Stocks Drawing Attention

Investors often seek opportunities in stocks, which are turning around. These are the shares of companies, which have faced challenges in the past and after having overcome these, show potential for recovery and profitability. Two such ASX stocks are

Audinate Group Limited (ASX: AD8)

On 19 August 2024, Audinate Group Limited (ASX: AD8) reported its FY24 results, showcasing strong performance, with revenue soaring by 28.4% to $91.48 million, up from $69.7 million in FY23. The gross profit increased by 33.2%, reaching $44.5 million, and the gross margin improved to 74.3% from 72.1%. This growth was driven by a 32.6% rise in software sales and a 26.4% increase in chips, cards, and modules (CCM) sales. EBITDA surged 85% to A$20.4 million, while net profit before tax climbed to $12.1 million from just $1.4 million in the previous year. AD8 also recorded a positive operating cash flow of $25.6 million, marking a 105.6% increase, and a notable free cash flow of $6.9 million, reversing the negative cash flow seen in FY23. With $117.0 million in cash and term deposits and no debt, the company is well-capitalized for future growth.

The company holds a 9% share of the US$2 billion audio networking market. It is also expanding into the US$780 million video networking segment and the US$890 million pro-AV software services market.?

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