Avigilon Accelerates Growth

Author: John Honovich, Published on May 08, 2013

Avigilon grew revenues a massive 80% year over year for Q1 2013. That's an incredible pace, faster even than what they did last year. Equally important, both gross margin and net margins raised substantially, closing their historic gap with market leaders.

Avigilon's stock price surged in the past 2 weeks, up ~25% from ~$11 CAD to $14 CAD per share, giving Avigilon a half billion dollar market capitalization.

******* **** ************ *************:

  • ******* **** ** ** ***** **% ** *** ******* ****** for ***** ******* (**%).
  • ********* ******* ****** **** *********, ***** * ~***% ***** ** the **** ****.
  • ***** *&* ************ **** ~*.*% ** ***** ** ****, ******** to *.*% ** ****.
  • ******** *********** ********* ******, ********* **** ***** ** "******, **************, banking *** **********, ***** ******." **** *** ** ********* ** EMEA *** **** *******."
  • "******* ******* ********* ** **** **% ******** ** *** ***** year"
  • **** ****, *********** * *** ********* ******* *** ******** *******.
  • "*** ********* ** *** ***** ******** ********** ** *** ************* plant *** ************* ******** ** *** *** ** ***** **, 2013 *** ********** **,*** ****** **** ******** *** ************* ***** by ************* ***% **** *** ******* ********."

******* **** *** **** *******:

  • ********* $*.* ******* ** ********* **** **** **** ******* ****** expect **** **** ***** **** ** *** ***** ****
  • *** ********* ******* ** ***** **** ****
  • ******* ***** ***** ** ** ** ******
  • '****** **** ********* ******** **** ******** ********' *** *******, *********, etc., '**** **** ******** ** ** ** **** *** ** freezes ** ** / **'
  • '********** ********* ** ******* ******' **** *** ***** ***** **** results *** *** * ******** ********* ** *** **** **** decision ****** *** ******* ********* ** ************
  • ******* ******* *** ** ** *** ***** **** ****** ** certain ***** ***********; **** ******* ***** ** *************
  • ******* **** ** ********* ******** **** ***** ** ***** **. Avigilon ******, '**********' 
  • '** ********* ** *** **** ** ******** ****** *** ******* schedule ** *** *****'
  • ******* ******** ** ******* *** *.*% ** ***** (~$* *******)
  • $*** - ******* **** **** ************
  • ******* **** **** ** ***** ** *** *** ********
  • ***** *** ***** ** ** ****, ******** $*** ******* **** size *** $** ******* *******
  • **** ** ****** ** ******* ****** ** *** ******* *** strength ** ******* *********
  • ****** ************** ********'* ****** ******* ******* ** ****

********** *****

**** ***** ********** ********* ***********:

**********

***** ********'* ***** **** ($***+ *******), *** ******* ****** **** (80%) *** *** ******** ****** ****** **** ** ***** *********** (companies **** **** *** ********* *** ** *****-**% *****), ******** ** ******* ******* *****. 

Comments (13)

Wait... this isn't a negative Avigilon article! Who are you, and what have you done with John? Everyone knows the real John Honovich only has bad things to say about Avigilon!

Ha! I am waiting to see who the first Avigilon dealer will be claiming this article is biased against them!

Given the consistent growth of at least 2X the IP market I am curious to the theories on why? A) Integrated system (cameras, VMS, NVR hardware) that is easy to use/setup B) Edge storage architecture with minimal compression and good streaming C) Some other reason????

Integrated system, good quality, low price, protected channel, with a pinch of super megapixel magic to get buyers excited.

A lot of companies selling end to end offerings have 2 or 3 of these elements but really nobody has all of them, except for Avigilon.

Protected channel? I've seen Avigilon deny/stagnate partner pricing approval so they had the flexibility to give a lead to another partner. These results just show that growth is the only thing they're focused on.

To clarify, by protected, I mean it's protected from Internet sales, i.e., Avigilon's aggressive about stopping companies from re-selling their products online. That part is different from most manufacturers.

I believe the pinch of super mega pixel magic is enhanced by keeping the bits on the edge with their NVRs. Other major players do not make this as easy. By keeping the bits on the edge (not compressing much nor clogging the network) the actual detail is available to view versus being thrown away.

Aaron, Avigilon does not have any edge storage (a la Axis / Camera Companion, Mobotix / Control Center, etc.). They have a classic architecture of IP cameras to NVR recorders and/or VMS servers or COTS hardware.

I am almost always suspect of any explosive growth pattern that:

A. Isn't from a brand new company (i.e. 80% increases are easy [and more normal] when you are starting at zero.

B. Not supported by something new, and/or significantly better/different than competitors offerings.

While I will stipulate John's points above about their competitive differentiators;

A. Avigilon isn't a new company starting from zero

B. Avigilon products are not significantly better/different than competitors offerings

Dramatic increases in sales are exactly what I would expect when spending dramatically increases. 100% and 70% spending increases are certainly not sustainable over anything but the short-term.

While it's unprecedented for any surveillance company to grow 80% at $100+ million revenue levels, they are not simply 'buying' revenue. Their profitability margins actually increased at the same time. This is not a case of them 'selling a dollar for 75 cents'.

There are many factors that contribute to profitability... especially over only a one year period.

Do you find the Avigilon growth model to be sustainable?

The business model looks sustainable. The 'growth' model - I don't think anyone can maintain 80% growth at that levels for long. But that's not necessary for them anyway. The big issue is whether they can maintain 30 / 40 / 50 growth and for how long.

We had this discussion last year when Avigilon announced their $500 million revenue goal.

there are many items that contribute to avigilon's success... product and service aside i think a big bonus for the company is their approach to sales ie. direct to dealer/dealership only sales... in my opinion this creates a sense of product/company ownership amongst dealers (and sensitivity to criticism as we are aware of from discussions on this site)... through this ownership is a desire to be progressive and promote the company... sales and product training/certification allows for increased product knowledge for dealers and this translates into potential customers being more comfortable with dealers because they know their product...

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Imperial Capital Security Investor Conference 2018 Review - ADT, Resideo, Alarm.com, Arlo, Eagle Eye, ACRE, More on Dec 14, 2018
Imperial Capital Security Investor Conference is an event matching industry executives with financiers that frequently leads to future funding...
Longse USA Profile on Nov 30, 2018
In September 2017, Longse bought and opened their USA office. As one of the largest South China surveillance manufacturers, they have previously...
Security Sales Course 2019 on Nov 29, 2018
The next IPVM Security Sales Course starts in January 2019. This sales course is customized for the needs and challenges specific to...
Vintra "AI-Powered" Video Analytics Startup Profile on Nov 27, 2018
Vintra is a Silicon Valley startup focused on AI-based video analytics. They had booths at IACP and ISC West demonstrating their hosted or...
Openpath Access Control Tested on Nov 20, 2018
Big investment in access startups is uncommon, but Openpath has recently attracted $20 million doing just that. The company has limited security...
Milestone Disrupts Milestone With Arcules on Nov 19, 2018
Milestone is now competing against... Milestone's own spinout Arcules. New IPVM testing shows that Arcules has incorporated a substantial amount...
ASIS Offering Custom Research For Manufacturers on Nov 15, 2018
Manufacturers often want to know what industry people think about trends and, in particular, the segments and product they offer.  ASIS and its...
Ubiquiti Protect Video Surveillance Profile on Nov 07, 2018
Ubiquiti has now been in the video surveillance market for 7 years (see our first coverage back in 2011). In that time, the company's revenue has...
Wyze Explosive Growth Disrupting Consumer IP Camera Market on Oct 30, 2018
Wyze, a company founded only in 2017, is poised to disrupt the consumer IP camera market by combining American marketing and Chinese manufacturing...
Huawei To Be “Top Three Global Position” in Video Surveillance on Oct 29, 2018
Huawei - China’s biggest networking gear and smartphone maker - plans to become one of the top three global video surveillance manufacturers in...

Most Recent Industry Reports

Imperial Capital Security Investor Conference 2018 Review - ADT, Resideo, Alarm.com, Arlo, Eagle Eye, ACRE, More on Dec 14, 2018
Imperial Capital Security Investor Conference is an event matching industry executives with financiers that frequently leads to future funding...
Cisco Meraki New Cameras and AI Analytics on Dec 14, 2018
Meraki has released their second generation of video surveillance with 3 new cameras, AI-based video analytics, and 2 cloud-based storage...
Foolish Strategy: OEMing Facial Recognition on Dec 13, 2018
Almost as 'hot' as face recognition marketing right now is OEMing facial recognition. Last year, they were a who's who of company's with...
DVR Examiner - Video Recovery from Recorder Hard Drives on Dec 13, 2018
Bypassing passwords and long download times on-site, DVR Examiner collects and organizes video evidence directly from a hard drive extracted from...
2019 Access Control Book Released on Dec 12, 2018
This is the best, most comprehensive access control book in the world, based on our unprecedented research and testing has been significantly...
Huawei Hisilicon Quietly Powering Tens of Millions of Western IoT Devices on Dec 12, 2018
Huawei Hisilicon chips are powering, at least, tens of millions of Western IoT devices, such as IP cameras and surveillance recorders, a fact that...
FLIR Launches Body Cameras Unified With VMS (TruWitness) on Dec 11, 2018
While FLIR is best known for their thermal cameras, now they have expanded into body cameras, launching TruWITNESS, a public safety focused body...
Startup Sunflower Labs' Autonomous Drone Security System on Dec 11, 2018
Startup Sunflower Labs is claiming a unique design on a home security system, combining autonomous drones and 'Sunflower' sensors. Imagine an...
The 2019 Video Surveillance Industry Guide on Dec 10, 2018
The 300 page, 2019 Video Surveillance Industry Guide, covers the key events and the future of the video surveillance market, is now available,...
Multi-Factor Access Control Authentication Guide on Dec 10, 2018
Can a stranger use your credentials? One of the oldest problems facing access control is making credentials as easy to use as keys, but restricting...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact