Avigilon Doubles Revenue, Breaks Billion Valuation (Q3 2013)

By IPVM Team, Published on Nov 05, 2013

Utterly unprecedented for a surveillance company Avigilon's size, Avigilon reported doubling revenue in Q3 2012 over the previous year, doing $51.1 million revenue for the quarter, putting them at a $200+ million annual pace, with their market capitalization breaking $1 billion, up 25% alone the day after the announcement. In this note, we break down what is driving their growth and the key details of their performance.

Here is the Q3 2013 financial report.

Given the incredible results, we ask:

Revenue Breakdown

Here is how revenue broke down across geographic regions:

Lowest performance was in Asia. On the call, Avigilon acknowledged that in countries that develop their own surveillance products, the market is 'hypercompetitive' and therefore impacts growth.

Additionally, Avigilon is ahead of their aggressive targets. "Revenue for the nine months ended September 30, 2013 is $122 million, an increase of 81% relative to the same period in the 2012."

Expenses

Get Notified of Video Surveillance Breaking News
Get Notified of Video Surveillance Breaking News

Marketing expenses were only up 7% this quarter, year over year, a tiny amount, especially compared to recent skyrocketing marketing increase.

By contrast, gross R&D expenses were up 89% year over year.

Access Control Integration Progress

Avigilon commented on their progress integrating their acquisition of Redcloud:

"Order fulfillment, order processing and accounting functions have now been integrated within the  Avigilon administrative platform and the product line is slowly being released out through our existing  distribution network. The second phase of integration will be fully integrating RedCloud access control into ACC, which we expect to be complete by January 1, 2014 and to open up sales to our global network of integrators and resellers."

Avigilon also disclosed that Redcloud did $645,000 in revenue in Q3 2013.

Investor's Deck

Additionally, Avigilon has a new investor's deck, emphasizing over 1,600 integrators, highlighting 5 large ones:

Avigilon also increased employees by more than 30% in just the first part of the year.

Finally, an analyst projects Avigilon doing $250 million revenue next year (2014), up 56% over this year's projected revenue. Given that they did $50 for this just completed quarter, that may not be difficult.

Key Points From the Investor Call

From the recorded investor call (MP3):

  • Avigilon told investors that it was mainly impressed and surprised with its growth in U.S. revenue, which was up 115%.
  • Despite the upward trend, the company not anticipate much more of a rise in gross margin.
  • Expect to see R&D expenses increase in upcoming quarters, but did not discuss technical details or what to expect.
  • Richmond facility is expected to reach production capacity soon and so they will expand the area of the facility they are leasing.

SMB Dominates Enterprise

  • Avigilon says in the last quarter 95% of customers were small to medium size businesses with 5% enterprise, but now enterprise is up to 10% and they say they are pushing enterprise deals. The largest enterprise deal in Q3 was $1 million.

1 report cite this report:

Avigilon Growth Down, Expenses Up, Stock Slammed (Q1 2015) on May 04, 2015
Avigilon growth rate continues to slow down sharply yet the company's...
Comments (20) : Members only. Login. or Join.

Related Reports

Access Control and Video Integration Statistics 2020 on Oct 08, 2020
Video Surveillance and Access Control are two of the most common security...
Integrated IR Camera Shootout 2020 - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Panasonic, Uniview, Vivotek on Jan 30, 2020
The best and worst cameras tested in this IPVM shootout showed major...
Verkada Raises $80 Million, Triples Valuation To $1.6 Billion on Jan 30, 2020
Verkada's rocketing valuation continues. 9 months ago, they got a...
Cheap Camera Problems at Night on Feb 19, 2020
Cheap cameras generally have problems at night, despite the common perception...
Avigilon Announces 10K / 61MP H5 Pro Camera on Oct 05, 2020
Avigilon announced its 10K / 61MP H5 Pro camera at the 2020 IPVM Fall New...
Free IPVM All Access - Concluded! on Mar 18, 2020
The 2-day event has concluded. Thanks to everyone who accessed the IPVM...
The Booming Multi-Billion Coronavirus Fever Camera Market on Apr 21, 2020
The market for elevated body temperature detection cameras, aka 'coronavirus...
Anyvision Presents AI Facial Recognition and Mask Detection on Jun 08, 2020
AnyVision presented its AI facial recognition and mask detection at the May...
Favorite Network Switches 2020 on Aug 31, 2020
Cisco has long been the gorilla of network switches but would an upstart...
2020 Mid Year Video Surveillance Industry Guide on Jul 27, 2020
The first half of 2020 has been shocking, for the world generally, and for...
Nokia Fever Screening Claims To "Advance Fight Against COVID-19" on Oct 22, 2020
First IBM, then briefly Clorox, and now Nokia becomes the latest Fortune 500...
Brazil Assembly Powers Hikvision Local Expansion on Jul 15, 2020
Hikvision has grown considerably in Brazil ever since the 2017 opening of an...
IPVM's 12th Anniversary - Thank You! on Apr 07, 2020
IPVM is proud to celebrate it's 12 anniversary expanding our commitment to...
Camera Resolution Usage Statistics 2020 on Mar 12, 2020
The average resolution used, for new cameras, is now 4MP, according to new...
Startup Solink $17 Million USD Fund Raise Expands To Mass Market on Jun 24, 2020
Solink has raised ~$17 million USD, a sizeable round for the company that...

Recent Reports

VICE Investigates Verkada's Harassing "RawVerkadawgz" on Oct 26, 2020
This month, IPVM investigated Verkada's sexism, discrimination, and cultural...
Six Flags' FDA Violating Outdoor Dahua Fever Cameras on Oct 26, 2020
As Six Flags scrambled to reopen parks amid plummeting revenues caused by the...
ISC Brasil Digital Experience 2020 Report on Oct 23, 2020
ISC Brasil 2020 rebranded itself to ISC Digital Experience and, like its...
Top Video Surveillance Service Call Problems 2020 on Oct 23, 2020
3 primary and 4 secondary issues stood out as causing the most problems when...
GDPR Impact On Temperature / Fever Screening Explained on Oct 22, 2020
What impact does GDPR have on temperature screening? Do you risk a GDPR fine...
Security And Safety Things (S&ST) Tested on Oct 22, 2020
S&ST, a Bosch spinout, is spending tens of millions of dollars aiming to...
Nokia Fever Screening Claims To "Advance Fight Against COVID-19" on Oct 22, 2020
First IBM, then briefly Clorox, and now Nokia becomes the latest Fortune 500...
Deceptive Meridian Temperature Tablets Endanger Public Safety on Oct 21, 2020
IPVM's testing of and investigation into Meridian Kiosk's temperature...
Honeywell 30 Series and Vivotek NVRs Tested on Oct 21, 2020
The NDAA ban has driven many users to look for low-cost NVRs not made by...
Ubiquiti Access Control Tested on Oct 21, 2020
Ubiquiti has become one of the most widely used wireless and switch providers...
Avigilon Aggressive Trade-In Program Takes Aim At Competitors on Oct 20, 2020
Avigilon has launched one of the most aggressive trade-in programs the video...
Mexico Video Surveillance Market Overview 2020 on Oct 20, 2020
Despite being neighbors, there are key differences between the U.S. and...
Dahua Revenue Grows But Profits Down, Cause Unclear on Oct 20, 2020
While Dahua's overall revenue was up more than 12% in Q3 2020, a significant...
Illegal Hikvision Fever Screening Touted In Australia, Government Investigating, Temperature References Deleted on Oct 20, 2020
The Australian government told IPVM that they are investigating a Hikvision...
Panasonic Presents i-PRO Cameras and Video Analytics on Oct 19, 2020
Panasonic i-PRO presented its X-Series cameras and AI video analytics at the...