Excellent contributions @ Valueinvestor0909 , mushroompanda @Rocket6 , @mikebrisy and others.
AD8 as an investment proposition has been very much a question of: “How profitable can this business be if it becomes a monopoly?” In the medium to long term nothing else matters.
And in the middle of last year, AD8 and just about every analyst was calling it monopoly-game-over in the Audio segment with AD8 having a 90% market share.
What remained a battleground was the Audio-Visual market, and AD8 were reporting as making good progress. (From the 16/5/24 Investor Day: “Over 50 manufacturers have licensed Dante AV, with 75+ products on the market”).
There are a lot of product categories, names, concepts and words in today’s announcement - and in the end I and I think many others are finding it difficult to get a read on just how they are tracking.
Today AD8 guided an unaudited FY24 revenue of “approximately US$60.0 million.”
And they also stated in FY25 they expect: “……..a >US$10 million revenue headwind”.
How do you achieve monopoly like market domination when you are openly saying sales will fall 16% plus? “Hey, where’re all going on vacation for a year but we’re going to kill it!”
Maybe all will become clear at the conference call on the 19th.
