Aferian PLC on Wednesday highlighted a ‘year of transformation’ as the firm cut costs and grew revenue in the second half of its financial year.
The Cambridge, England-based business-to-business video streaming company said it expects revenue in the financial year that ended November 30 to be about $26 million, down 46% from $47.8 million in the prior year.
Amino, its streaming services and software as a service device management platform, is expected to generate around $14.2 million, with 24i, its end-to-end intelligent streaming solutions platform, accounting for the remaining $11.8 million.
Aferian reported an improved second-half performance as it swung to positive adjusted earnings before interest, tax, depreciation and amortisation of about $2.0 million from an adjusted Ebitda loss of $2.4 million in the first half.
The stock was up 11% at 3.62 pence on Wednesday morning in London.
Aferian credited its $4.4 million turnaround to second-half revenue growth and headcount-driven cost reductions, with 24i delivering several new customer wins and Amino achieving higher-than-expected sales orders for its Enterprise Video and Digital Signage devices.
Net debt also improved materially throughout the financial year, falling by 16% to $12.5 million at November 30 from $14.9 million at May 31.
Through a combination of Amino’s contracted order book and 24i’s annual recurring revenue, $18 million in revenue for next financial year has already been committed, Aferian said.
Chief Executive Mark Carlisle commented: ‘FY24 marks a year of transformation and progress for Aferian with both the Amino and 24i businesses becoming Ebitda positive and cash flow generative in the second-half.
‘That strong second-half performance reflects both the dedication of our teams to delivering for our customers and increasing demand for our products. As a result of new customer wins and an increase in sales orders in the second half of 2024, we expect this strong momentum to continue into 2025.’
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