Audinate continues to hit the high notes

Audinate (ASX:AD8) have developed a protocol for delivering audio over IP addresses known as Dante. It is well on its way to becoming the industry standard. It is a professional audio-visual solution and is found in millions of devices in a wide range of installations and applications across the world. For example stadiums, churches, universities, conference facilities, theatres and studios.

Their strategy involves two key elements in order to drive long term growth. Firstly they need to get their chips, cards, modules or software into as many AV products as possible. To this end they now work with 621 customers who ship Dante enabled products. This number has doubled over the last four years. Those 621 customers have then installed the Dante protocol in over 4,000 AV products. When a product producer is designing a new product, Audinate tries to get them to design Dante into the product. The number of enabled products is a leading indicator of revenue.

This gives them a huge competitive advantage. As the chart below shows, adoption of Dante is more than 12 times their nearest competitor, entrenching their position as the de facto industry standard.