Published on: May 17, 2023

Record software performance; hardware challenges persist but may be abating

Aferian’s FY22 results release heralded a record performance from the software business, while confirming that market conditions in the Amino (devices) segment remain challenging. With the increasing contribution from software, Aferian’s revenue quality and visibility continues to improve. Commentary on the outlook is positive towards 24i, and the business has been restructured to address ongoing challenges in devices. Guidance of FY23 group revenue and EBITDA being significantly below FY22 levels was reaffirmed, albeit with positive and material EBITDA. While facing macro and financial challenges described further in this note, Aferian has made good progress in its transition to a software-led business model.