For a long time, Avigilon's stated mission has been:
"To be the largest video surveillance company by providing our customers with superior protection created through innovation."
Mission statements are meant to be ambitious so there's nothing wrong with a company aiming high.
Here's what it looked like on their investor's deck until May 1st:
Something strange just happened in their just revised deck released today:
I am curious why they decided to downgrade their mission...
They can't be the world largest surveillance company due to their restrictive dealer channel. You can only sell so many mega systems before that part of the market slows down. You need basic meat and potato 16 camera and under systems that everyone has access too.
I've noticed they are behaving like Lenel now more so than ever. My 2 cents is they want to be the next Lenel but they happen to make their own cameras. I don't see Avigilon going after every market vertical like Axis is. It seems like othey have been promoting their access control line more than anything in the recent months. My gut is they will target the fortune 100/500 enterprise integrated video and access systems more so than Joe's Crab Shack 6 camera system vertical.Now that Avigilon uses the Authetic Mercury access control line, they will target every Lenel system out there to flip OEM codes on the Lenel panels. Then after that happens, then Avigilon cameras start rolling to these new clients. This is me purely guessing on their next move.
There is another change as well:
"To be the largest video surveillance company ..."
"To be one of the largest security companies..."
Could this imply that they will be pushing harder into the access control market and maybe developing (or buying) an intrusion detection product line?
Good eye. That's it.
Their messaging has recently switched from video surveillance to security.
This will be interesting to watch as the rest of the security market is lower growth than IP video surveillance. As they suggested during the $100 million raise, they are looking at other acquisitions but what is both fast growing and of any significant size in the security market outside of surveillance? An intrusion panel company???
I wonder how investors will treat such deals and the revenue from them. The reason that Avigilon has gotten such a high relative valuation (even now) is because of their high organic growth rate. How will they replicate that in other security segments with intrinsically lower growth opportunities?
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