Financials / *********
***** *** ************ *** *** ******** revenue *** ***** ****, ** ***** expect ** ** ** ** *** $50 ** $*** ******* ***** ***** on ********** ******* ******* ** *** low **** ** ********. ******* *** not ** **** ** ** *********** and *****.*** *** * ****** ****** valuation ** *****.*** ***** **** ** and ***** ****** ****** * ******* for *******.
****** - ******* *** ****** ** ~$72 ******* ** *** ****, **** Alarm.com ****** $**.* ******* *** ** 85% *****. ************, "** ****-*** ** up ** ** ********** $**.* ******* is ******* ** ******* ******** **** targets *** ***."
Fit *****
** ***** *** *** ** *****. Alarm.com ****** * ********** *** ******** to ****** ****** *** ***** ** commercial *********. ******* ****** ******* *** can ******* **** * ****** ******* to **** *** ********.
********, *** *** **** * **** shot ** ******** * ***** ****** in *** ********** ******.
OpenEye ********** ******* *****, ** **** ****-****
*** ******** ******* ** **** **** is **** ** ** * "********-***** acquisition", *** * ***% ***********, **** OpenEye ***** ********* * ******** *****. OpenEye **** **** ***** **** *********** in *** ****** ** *** **** term. ** ** **** ********** *** Alarm.com ******* ******* ***** **** ****** incentives ** **** *** **** *** business.
Brand, ********, ********** *******
*****.*** **** ****:
******* **** ** * ********** ** Alarm.com. *** ******* **** ******** ********** under *** ******* ***** *** ** led ** *** ******** ********** ****.
**** ** ********** ** ** ***** OpenEye ** ********* **** ******** *****, their ******** **** **** **** ******* since ******* (~** *****) *** ** do *** ****** ** ** *** type *** **** ** ******* ***** something ***.
** ** ********** ** ******* *** future, *** **** ***** **** *** type ** **** ***** ********** ***** indefinitely ****** ******** ***** **** **** as **** ** **** *** (*.*.,*****/****).
Giant ** ***********
*****.*** ** * ***** ****** ** residential, **** **** * ******* *********** and **** $*** ******* ** ****** revenue ******* ~**% ********:
*** * ***** ***** ** **********, Alarm.com's ******* ** ***** ** ********'* ~$500 *******.
Minor ** **********
***** *****.***'* ******* ** ***** ** Avigilon's *******, *****.*** ** ** ************* player ** **********, ****** ******* ** and ******* *** ****** *** ** their ********* ** ***********.
*** ****** ** ********** *** *****.*** is **** ** ** * ***** market (**** ** ****** ** ******* depending ** *** ** ** *******) and ** ** *** ************ ****** to *** *****.
********* ******* *** ***** *****.*** * base ****** *** ********** ****** ** grow.
Funding *******, ***** ******, **** ******
*****.*** ** ******* ** ***-***** ******, not ******* *** *********. ******* ********* excitement ***** *** ********* **** *****.*** is ******* ** *** *** ******* to ************* ****** ***** ***** ********* engineering *** *****.
Relationship ** ******-* *** ***********
**** ** *** *** ***** ******* acquisition *****.*** *** ****. ** ****,*****.*** ******** ******-*, **** ***** ** ** **** AVHS *******. **** *** *** ****** a *********** *****.*** ********. **** ********,*****.*** ******** ****** *****'* *&* ****, * **** **** ******** ** their ****** ***** ***** ********* ********. We ** *** *** *** ******** with ******-* *** ***** ** ********* for ***** ***** ***** ***** ********* with *******, *** ** *** * specialist ** *********.
Competitive ***** **********
******* ** *** **** ********** *********** for *****.***'* ********** *********. *** *******, in ******** **** ****** ** ******* *****.***, Arcules, ***** ***, *******, ******* *** Verkada.*****.*** ****** **** **********,******* ** (* ***********) **** ** Milestone, ***** / ***** *** ***** have ******** ** *********** *******, ******* is **** ******* ******* *** ******* would **** ******** (******** *********).
Outlook - ******** *** *** ******?
*** *** ********* *** ****** ********* better *** *** ***********. *** *** question ** *** ****** ** *** they *** ****** ** **********. ******* has ********* **** ******* ***** **** out ***** *** ************ *********. *****.*** has ***** **** * ***** ********** player. *** ****-**** ******** ** **** the *** ********** **** ***** ******** and **** *** *** ***** ********* is *** **** **** ***** ***********, working ********, ******* ********** **** * combination, *** ** **** ******* *** stronger ** *** ********** *****.
Vote / ****
Comments (23)
John Honovich
We can add more details. I published this quickly to get our initial analysis up. Questions, areas we did not cover, etc., please let us know.
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Brian Karas
10/21/19 10:03pm
Congrats to Rick and the team on the Sale!
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Undisclosed Manufacturer #1
"Hi...I'm Ali, cofounder of Alarm.com....Give me your tired, your poor, your huddled dealers yearning to breathe free, the wretched refuse of your teeming market"
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Undisclosed Manufacturer #2
Definitely seems like a good match. Congrats to the team and 20 years of hard work. I wonder if Open Eye will pitch a full hardware and software solution like Avigilon or build stronger partnerships with hardware partners and concentrate on VMS demand.
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Undisclosed Manufacturer #3
Will this have any effect on Arecont and their Contera VMS (OEM’d by OpenEye)?
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Undisclosed Manufacturer #1
John
A major distributor told me recently that they, and many of their alarm dealer customers, feel that the small to medium sized residential alarm installation business is going to be severely impacted by the DIY alarm direct suppliers.
Central stations are rapidly expanding their video verification services, which may be required by many municipalities in the near future. I have heard that some law enforcement agencies will now not respond to alarms without video verification. If this is a strengthening trend, video verification by the central station will raise the cost of monthly fees to the consumer, as it is much more labor intensive than straight alarm reporting, which is very automated.
Tie that to Alarm.com's purchase/merger with OpenEye, and the independent alarm dealers that sign up with them may see a way to offset the reduction in alarm-only monitoring income.
A large central station owner told me recently that they are going to add video verification that ties seamlessly into their existing software platform, and offer a full package with video verification for dealers to sell.
Perhaps that is where Alarm.com is heading?
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Gerald Becker
Wow congrats to Rick and the whole team at OpenEye. Well deserved and solid group of talent at OpenEye. Looking forward to see whats to come.
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Buddy Mason
Couldn't be any happier for Rick and their team at Open Eye. Have gotten to know them pretty well over the last three years and this team is rock solid and focused. I feel with this cash injection it will help them achieve their product goals even faster to keep up with our fast paced industry. Good luck you all!
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Undisclosed Integrator #4
I have been super happy with the OpenEye product and team. I just hope that this doesn't affect the relationship that they have with DMP. The OpenEye/DMP integration is second to none and offers solutions that no-one else has. DMP's Virtual Keypad is also a competitor with Alarm.com so I am hoping that this doesn't change things at OpenEye.
Our customers have been much happier with OpenEye than Avigilon or Exacq. The app and interface (although much simpler) is superior for non security staff operation.
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David Pilchick
10/22/19 11:39pm
Congrats to the team at Openeye
they are a great group of folks
this sounds like great news
i look forward to seeing what the future will bring
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Sean Nelson
10/23/19 01:38am
awesome move for Alarm.com. they continue to diversify and distinguish themselves to be much more than just a remote management service for alarm panels.
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Rick Caruthers
10/23/19 01:08pm
The question now, does Alarm.com go after a commercial access control manufacturer to round out the offering? If so Who??
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John Honovich
Update: OpenEye's Q3 2019 financials revealed the price paid and we've updated the report with it, copied below:
Also, in the Q3 call transcript, Alarm.com discussed OpenEye at length but nothing that I found particularly surprising.
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Lee Jones
11/09/19 08:38am
John.. you asked… “In this note, we examine …. what is going wrong in the market (remote-monitored residential) and how it might get worse”? Plus the “stress in the residential markets”. Here we add to the back-story.
>
Some of us remember when auto alarms would blare day and night, in most parking lots, residential street parking, or whenever an auto was left unattended. Law enforcement halted all site-response except for witnessed threats, and fined the vehicle owner for noise abatement laws. The same trend is developing for millions of monitored deterrent home alarms…. slow or no response, causing very high attrition; expensive fines/fees. Auto alarms are now a basic accessory to all vehicles everywhere… with near zero disruptive false alarms. The vehicle false alarm problem was successfully solved by the vehicle alarm suppliers, not by government legislation and passing blame. Thereafter the auto alarm business grew exponentially, worldwide and still growing. Good model to follow…. knowing residential property alarm systems are beginning to get about same police priority as vehicle alarms.... unless a 911 type threat is witnessed…. The new world of Alarm.com/ OpenEye, (including monitored vehicles). Often more theft incentive is in locked vehicles than private homes. Special note… law enforcement response has changed because now can lose their sovereign immunity if they DO respond, but not when police DO NOT respond to calls from monitoring firms.
Source: Lee Jones, Support Services Group
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