AxxonSoft Revenue and Financial Progress Examined

In this note, we examine the revenue and financial progress of Russian VMS / NVR developer AxxonSoft, frequently cited as the largest VMS provider in Russia. In the past two years, the company has started to expand into Western Europe and the United States. Additionally, they recently released a 16 channel free VMS version, a quite aggressive move.

For 2010, AxxonSoft is reporting total revenue of approximately $18 Million USD and projecting 25% growth in 2011 (to the low $20 Million range). This was initially and partially reported in a Russian IT ranking and confirmed/clarified by Axxon directly to us.

At this revenue level, the closest comparison is likely Exacq who reported similiar 2010 revenue. Exacq and Axxon differ primarily in revenue concentration. While Exacq's revenue is primarily from North America, Exacq is one of many players in a relatively large market. By contrast, Axxon has a leading share of the smaller Russian market but only modest revenue outside of Russia.

In comparison to Genetec and Milestone, the two biggest software only VMS providers, Axxon generates roughly half the revenue. Again, the market presence is skewed with Genetec and Milestone having disproportionately greater traction in Western Europe and North America than Axxon.