# Daktronics, Inc. Reports Record Revenue and Strong Financial Performance in Fiscal Year 2024
Daktronics, Inc. (DAKT), a leading provider of digital display technology, has marked a successful close to its 2024 fiscal year with record revenue, increased operating income, and robust cash flow from operations. During the Fiscal Year 2024 Fourth Quarter Earnings Results Conference Call on June 12, 2024, Daktronics announced a 2.9% growth in quarterly sales volume, reaching $216 million, and an 8.5% increase in full-year sales.
The company’s operating income saw a significant increase, surpassing the previous fiscal year’s figures by more than four times, while cash flow from operations exceeded $63 million. Daktronics attributes this strong performance to its strategic focus on various market verticals, digital transformation, and operational optimization.
## Key Takeaways
– Record revenue achieved in Q4 with a 2.9% increase to $216 million, 8.5% growth in full-year sales.
– Operating income improved significantly, over four times higher than the previous fiscal year.
– Cash flow from operations exceeded $63 million.
– Orders increased by 14.6%, driven by Live Events and International business unit orders.
– Gross margin improved to 25.7% of net sales, and operating margin reached 9% of sales.
– Year-end cash position was strong at $81.7 million.
## Company Outlook
Daktronics is gearing up for fiscal 2025 with a focus on driving future growth and returns. The company is targeting market verticals such as Live Events, Commercial, AV integrators, Transportation, International, and High Schools. Strategic priorities for fiscal year 2025 include enhancing internal systems, innovating to penetrate markets further, and reducing operating costs.
## Bullish Highlights
– Growth in independent billboard sales and narrow pixel pitch product lines.
– Positive feedback from customers and partners regarding new technologies.
– Trend towards full video conversion in high schools observed.
– Recurring revenue streams contributing to higher margins and customer satisfaction.
## Misses
No specific misses were discussed during the earnings call.
## Q&A Highlights
– Discussion on the potential of narrow pixel pitch products for military and control centers.
– Optimism about the international market with investments in supporting growth.
Daktronics’ solid performance in the fourth quarter showcases its strategic execution and focus on innovation. The company’s emphasis on winning independent billboard sales and marketing its narrow pixel pitch products indicates growth potential. The introduction of Flip-Chip technology to enhance product lines demonstrates a commitment to product development and customer satisfaction.
The company’s strategic priorities for fiscal 2025 align with its goal of consistently earning returns above its cost of capital. Daktronics’ robust financial health, reflected in its $81.7 million cash position, sets a solid foundation for future growth in the digital display market. With a commitment to driving revenue growth and returns, Daktronics is poised for continued success.
InvestingPro Insights:
InvestingPro offers valuable insights on Daktronics’ financial metrics and stock performance. The company’s strong performance is reflected in its market capitalization and stock price, indicating investor confidence. As a market leader in the digital display sector, Daktronics holds significant potential for growth and profitability.
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## Full Conference Call Transcript
Missed the Daktronics (DAKT) Q4 2024 conference call? Read the full transcript for detailed insights and commentary from company executives.
Thank you for joining us for this recap of Daktronics’ successful fiscal year 2024 results. Stay tuned for more updates on the company’s progress and financial performance.
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