Subscriber Discussion

Milestone's 2015 Revenue Jumps 32%

U
Undisclosed #1
Apr 16, 2016
IPVMU Certified

Nice.

JH
John Honovich
Apr 16, 2016
IPVM

I am curious what the underlying drivers are to that. For example, gross margins went up, which is strange considering they are clearly selling more Husky units, which should decrease it. Maybe $5 million in extra OnSSI money (j/k sort of) but the combination of very high increase in profits and revenue seem to indicate something abnormal drove it.

For those of you interested, and U1 I assume you are, I got the full financials from the Danish government directory earlier this week: Milestone 2015 Full Financial Report

U
Undisclosed #1
Apr 16, 2016
IPVMU Certified

...the combination of very high increase in profits and revenue seem to indicate something abnormal drove it.

Well, as for me, I would have to think that the Milestone 'Free' Takeover of OnSSI Accounts is at least partially responsible (and abnormal), although I understand you felt, short-term at least, the offer was going to be a loss for Milestone.

Despite the 'free' label aspect, there was some revenue generation, namely by enticing ONSSI non SUP current customers to become current with Milestone, and also the increasing renewal revenue from those who took the offer near the end of their plan expiry.

I don't need to remind you that this is "software manufacturing" with "electronic delivery", so the immediate COGS increase is minimal compared to the revenue; which would be consistent with the EBITDA margin skyrocketing. Just a hunch, but I would guess more than a few ONSSI bought the upgrade without actually implementing it right away, and may be still in the planning stages.

And of course, there are support costs in transitioning customers, but I maintain that the support required to go from the Occularis interface to the Xprotect one was far less costly than changing recorders from Milestone to See-Tec.

Why? Because although it can be difficult and time-consuming to retrain a large staff on a new UI, it is at least somewhat predictable, and the issues largely known. In addition, those retrained can become new trainers for the rest of people in the same org.

With the recorder change though, you are looking at camera problems, a one-off hell, sometimes with no easy answers for the guy who has 10 PTZs that just won't work with his new SeeTec system. Problem is you don't really know that even till you are way deep into it. And how long you want to try is really up to you, cuz it just might work with that new driver or in ONVIF mode etc.

So, my guess is the offer.

JH
John Honovich
Apr 16, 2016
IPVM

How much revenue are you estimating was earned from the offer? And how many licenses / channels does that equate to?

U
Undisclosed #1
Apr 16, 2016
IPVMU Certified

No idea. I see the smoking gun, but I couldn't tell you how many bullets it fired.

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