Arlo, Bigger Than Avigilon, More Valuable Than Axis

By: John Honovich, Published on Feb 08, 2018

Arlo, the wireless IP camera offering that Netgear bought ~5 years ago for a few tens of millions is now doing more revenue than Avigilon and likely will get a higher market valuation than Axis' $3+ billion USD.

Sounds crazy to those in the professional video surveillance market but that is the details and projections coming forward from Netgear's plan to spin out Arlo.

[Related - IPVM test of Arlo Camera System and IPVM test of Arlo Go Cellular Camera.]

In this note, we analyze Arlo's financials, examine the consumer video surveillance space, compare to other video surveillance major players and explain why Arlo faces major competitive threats in the next 3 - 5 years.

****, *** ******** ** camera ******** **** ******* bought ~* ***** *** for * *** **** of ******** ** *** doing **** ******* **** Avigilon *** ****** **** get * ****** ****** valuation **** ****' $*+ billion ***.

****** ***** ** ***** in *** ************ ***** surveillance ****** *** **** is *** ******* *** projections ****** ******* ***********'* **** ** **** out ****.

[******* - **** **** ** **** Camera ****** *** **** **** ** **** Go ******** ******.]

** **** ****, ** analyze Arlo's **********, ******* *** consumer ***** ************ *****, compare ** ***** ***** surveillance ***** ******* *** ******* why **** ***** ***** *********** threats ** *** **** 3 - * *****.

[***************]

Why - ******* **** **** ******* ********

*** *********** ****** *** this ********* ****** ** ******** benefits from ******* **** **** cameras, **** ****. **** ***** the ******* ** *** to *** ***** ******* one's ***** ** ***** business, *********** **** *** cost *** *** ********** issues ** ******* *****, making ** ****** *** consumers ** *** ***** own ******** ****** ******. To ** *****, **** have *********, **** ******* battery / ***** ************ along **** ******* ********* in ***** ******* *** to ****.

Surging **** ******* - $*** ******* ****

****'* ******* ******* **** $188 ******* ** **** to $*** ******* ** 2017, **** ** **** along, ****** ** ******* sales ********** $*** ******* (at * $***+ ******* revenue *** ****). *******, Arlo ** ********* *********** 2 ******* ********* *** 7+ ******* ******* ****.

*** **** ******** ** that ****'* ******* ******* is **** ~*% ** sales ** ****, **** by ***** ********* * days ** **** ******* (though ****** ******* ******* sales ***** **********'* **** Nest offering **** / ******* free ******). *** ***** from ****'* ********** ***** the *********:

*** **** ***** ***** how **** **** *** been ******* **** *** past * ***** (**** the ******** ****** *** each ** / ******* quarter):

Share ********

******* ** ******** **** as #* ** ** ** camera ***** **** **** 40% ** *** ******, as **** ******* ********* ** **** / Arlo *****************:

******* ** *** ******** side ****** * ******* pattern ** ****'* ******* position, **** ******* / Dropcam ****** ******* ******.

$378 ******* ** **********

****'* $*** ******* ** quite **** *** ***** surveillance. *** *******, ********* is $***+ *******, ******* is ~$***, ******** ** ~$400 *******, ****** ** ~$600 *******, ***. (*** ************ ******* / ********** Directory).

*** ***** ***** ******** is ****'* ******. **** 100% **** **** ****** and *********** *** ~**% growth *** *** **** few *****, **** **** Arlo ******** **** $*** million *** ** ***** way ** $* ******* in ******* (******, ** we **** ******* ** the **********, **** ***** major *****).

Marketed ************** ********* ** $*.* *******, ****** **** ****

**** *** ******** *** ~$2.8 ******* *** *** stock, ***** ******, ***** stays ** **** *****. By ********, ** ******* is ********** $*.* ******* for ****,** *** *******:

****** ******** ******** ******* Trip ******** ****Arlo ***** ****** ** ****** ** $*.* *******, topping the price Alphabet's Google paid for Nest. Google bought Nest Labs in January 2014 for $3.2 billion. Nest makes smart thermostats, smoke detectors, security cameras and other devices.

**** *** **** ******* at ***% **** **** year *** **** ** the **** ***** *****, Chowdhry ****.

"******* **** ****** ******** to **** **** **% on * ******* **** of ***** $*** *******," he **** ** * report ** ******* *********. "Conservatively, ** ** ******* a ******* ****** **** of **% *** ****** 2018, ** ***** (****) revenue ** ***** $*** million ** ****** ****. Less **** *% ** U.S. ********** *** ** Arlo, ***** ***** ** huge ****** ***** *** Arlo." [******** *****]

* *****-******* ****** ********* may **** ******** *** investors ****** **** ****** stories *** *** ******* to *** * ******* for ****. ****** **** Avigilon's ******* *** ***** $200 *******, **** ******* their **** ********* ** $1.4 *******, ***** ** be ******* ***** ******* that *** ** *** peak ** ********'* ********.

Amazing ***** / ****** *** *******

**** ***** *** ***** more ******* ** **** Netgear *** *** ******* or ****** **** ******* / ******* **** **** cameras. **** ****** * California ************ (***** ** ******* back ** ****)** **** *** ~$** million. ***** *** ***** and *** **** **** then ** * *******.

*******, ** *** **** few ***** ***** ********, as ******** ******** ** video ************ *** ****** to ********* ******* ***** to **** ****** ****, combined **** *******'* ****** ******* presence.

Competitive ******* ***********

*********** *** *** ******* in *** ******** ***** surveillance ****** *** ********* the ******** ** **** market. *** ** *** **** year, ******** ******** **** come ** ******.

***********, *** ******* ****-**** camera ****** ** ***** to **** ********. *** challenge ** ******* ** independent **** *** ********* the ********* ** *** these ****** *** *** rallying *** ***** ***** Arlo's ********** ********. **** might ** * ****** ship **** ****** **** $1 ******* *** **** are **** ****** ** hit ***** ********* ** rivals ***** ** *** use ***** *** ******* power ******* ****.

Vote / ****

Comments (15)

* ******, ***** ** help, * ****** ******* one ** ***** **** summer. ** *** ** frustrated **** ****** ** get *** ***** ** and ******* ** * consistent ***** ** ******* gave ** *** **** it ****. ** ** one ** *** *** issues *****, *** *** just **** *****, ** that *** ******* ******** no ****** ******* *** kink ** ******* ** what **** ***.  ******* it ** * ******** IP ****** ** ***** out ** *** ** restaurant ****** **** ***'* seem ** **** *** more. * ***** **** is *** ** *** side ******* ** *** instant *******. ** *** don't **** ** **** buy ********* **** ****** and **** ** *** same ***.

*** ** ** ********* whom * ****** ******* regarding ***** ********* ****** love *** **** **** that **** ********* ** their *****,  *** ****** recommend **** ** ******. My ***** ** **** much ** ***** ******* has **** **** ** mouth.

*** * ** ******* that *** **** *** successful ** ** **** what ***** ******** *****: Hassle **** ********. **** also *** *** ***** and ******** *****. ***** easy ** ***** *** easy ** ******. **** to **** *** **** a ****** **** ******** with ******* ***** ** getting ** ***** *** be ***** **********. **** is *** **** ***. The ******** ****** *** sometimes ** ********* ** get **** *** **** you *** ** ***** it *** ** ****! Awesome!

** **** ***** **** often **** *** **** you **** * ****** technical ********** ** ********* overthink *** ****** ******. The ***** **** ********* we ********* *** * mess. ** *** ****** IP's ** ********** *** put ** ******* *** normal ***** **** ** should **** **** ***** to *** ********* **** and ******* ** ** and *** ** ****. 

*********, ** *****, **** dominates *** ***** ***'* display...

 

****** *** * ***** password,***** **** *** ******.

***** *** ** ******.  I ***** ********* ******* an *** ** *** competitors.  ****** **** ******* numbers *** ***** ******* reports ** *** *********** imply * ****** *******.  See ******** **** *.*. tolerance ** **** *******.

******, *** ** *** multiple **** ***** **** found, **'* *** ************ good ******* *** ******. But ***** ***** *** having * ****** ******* will *** *** ******, at ***** ** *** short ****.

****** *** * ***** password, ***** **** *** caught...

‘******* ******’ ** * prerequisite ** ********** ** Arlo:

 

*** ****** ** **** piece ** ***** ******* i *** ******** ** a ****** ***** *** I *** ** **** camera ** *** *********** section. ****** *** ****** presence ** **** *** their *******. **** ****** with ***** *** ***** would *** **** **** than * ** * cameras *** **** ***** them ********** ************ ** their ******* ********.

***** **** ** * big ****** ************ *** ******* ** sell ** ***** ******* they **** ******* ******* in **** ******? *'* simply ******** *** **** here...

** *** *****, ******** not. ***** *** *** in *** *********** ***** kit ***** *** *** just ******** ** ***** the ******** ***. *******, likely **** **** *** not ********** ** ******** development ** **** **** because **** ***** *** wirefree *** *** *****.

**** **** ***** **** it *** ***** ****, right ***** *** *******.  Their ********* ***** ********** what *** ****** *** asking *** *** ********** must **** ********.  **** got ** ****** ***** and ***** ***** (***********, dev, *********) ** ** after a **** ******** ***** wire **** ****** ********.  Finally, **** *** * huge ****** ** ********* to ******** ** *** *******.

********* **** ********* ******** adoption in **** **** ** product **'** *** *** trickle **** ****** ** money ***** ***** ** product *********** ** ************* compete. **** ***** ********** result ** **** ******/**** featured ********* ***** ****** realistic *** **** ********* applications.

*********** ******* ***** ** cctv ********* * ***** its *** ****** **** solution ***** ******* ******** solutions * ***, ** has ***** **** *** tests ** ******** ******** vulnerabilities *** ***** ******** cameras?

****'* ** *** *** IPO *** **** ********. *******, ** ******* is ** ~**% **** over ****, ****** ** least ******** ** ******** sales *** ********* ***********:

 

*******/******** *********:

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