ASX:AD8 - Audinate - Digital to Analog Audio

For those a little more adventurous and looking to expand their portfolio beyond SaaS and/or USA listed stocks, here’s one that may qualify for discussion on this board.

I’m generally not an investor in hardware type companies, however I see this in a similar light to Nvidia in that channel partners/OEM’s are the driver of product dev and marketing, and in addition Audinate has a stickier product in a niche market i.e. less competitive, harder to substitute, stronger moat.

Audinate Group Limited is an Australia-based provider of professional audio networking technologies globally.

The Company is engaged in developing both software and hardware to facilitate the delivery and management of audio over information technology (IT) networks, which improves audio quality, equipment interoperability and system flexibility.

Its Dante solution is an uncompressed, multi-channel digital media networking technology, with near-zero latency and synchronization. Its products include Dante Analog Output Module, Dante Broadway, Dante Brooklyn II, Dante Brooklyn II PDK, Dante Controller, Dante Domain Manager, Dante HC, Dante PCIe-R Soundcard, Dante Ultimo, Dante Ultimo Product Development Kit (PDK), Dante Via, Dante Virtual Soundcard and Dante-MY16-AUD2. The Dante Analog Output Module is a Dante audio to analog audio adapter module, supporting one RJ45 Dante input, and one or two balanced analog outputs.

Moat: It is the leader in a landgrab for getting chips in OEM manufacturer products supporting real-time analog-to-digital transmission of audio (and video). Close to becoming the de-facto standard in this industry.

Think transmission of live audio during concerts, events etc.

Revenue Growth: 44% last 12 months
Gross Profit Growth: 41% last 12 months

Inflection Point: Accelerating growth of OEM customers, compared to competitive chips. Increase in products per OEM with their tech.

Opportunity: 77% of global OEM manufacturers yet to licence Audinate technology.

Suggest taking a read of this article reviewing recent full financial year results if interested -…


Why I own AD8:

Owning the dominant AV platform - Dante,
In the early stages of a global structural shift,
In a large and growing market.

1 Like

If there’s enough interest in this thread, I’ll do more of a deep dive for ya’ll

In the meantime hope you enjoyed your day off!