Genetec's Financials and Competitiveness Examined

By: John Honovich, Published on Oct 25, 2011

Genetec is well known as one of the largest and most advanced VMS systems in the market, growing from obscurity a decade ago to become a leading choice of large enterprises. The question, though, is how much has Genetec grown recently and how big is it today, especially in light of the major shifts within the VMS market over the last 2 years. In this note, we examine those numbers and positioning.

Let's start first with a review of Genetec's key financial metrics:

  • 2009 total revenue was just over $36 Million CAD
  • 2010 total revenue was just $41.8 Million CAD (confirmed by Gentec and extrapolated from Deloitte published financial rankings)
  • 2010 revenue growth rate was ~16%

With those fundamental points noted, there are important limitations in using these numbers:

  • Genetec manufacturers access control and LPR. Results in those segments could skew the total results relative to performance in their core VMS market segments
  • Fluctuations in exchange rates can misrepresent 'actual' product uptake, especially as the USD - CAD exchange rates have been volital over the past few years.

Genetec declined to comment on the skewing that these two factors might have relative to VMS adoption.

Analysis

With total revenue growth of ~16%, even assuming some skewing due to the factors above, it appears to us that Genetec is losing ground to companies like Avigilon, Exacq and Milestone. We see that it in our own discussions with integrators. While Genetec remains very highly respected, we are seeing a lot of integrator's choosing the more basic but easier to use Avigilon and Exacq VMSes (both of whom had over 75% growth last year and are achieving fairly significant share themselves).

We attribute this revenue / market shift to an increased competitiveness of the mid market for VMSes. While companies like Avigilon and Exacq have gotten better in the last few year and Milestone has lead the charge to drop prices, Genetec has not made major moves for its mid market offerings. That noted, Genetec certainly continues to innovate at the high end (e.g., Security Center and edge based recording) but it will be interesting to watch what Genetec chooses to do to compete more effectively in the low to middle of the VMS market.

Comments : Members only. Login. or Join.

Related Reports

Exacq Raises VMS Software Pricing Twice in Less Than a Year on Feb 18, 2019
Most VMSes regularly release new features, but rarely increase their prices. For the 3rd time in 4 years, and 2nd time in 8 months, since being...
Verkada Gets Half Billion Dollar Valuation on Apr 26, 2019
Last week, when we profiled Verkada (The Fastest Growing Video Surveillance Sales Organization Ever - Verkada), we predicted they would raise $40...
Milestone Execs on Financials, China and Future on Apr 29, 2019
Milestone has released a 44-page annual report for 2018, an atypical and unrequired move for a subsidiary of a large company, however, Milestone...
Genetec Beats Milestone For IHS #1 on Jun 21, 2019
For years, Milestone has touted that they are the #1 VMS. Now, Genetec has beaten them in IHS rankings. But what is this? Even other manufacturers...
OpenALPR Doubles Prices on Jun 06, 2019
There is no 'race to the bottom' in cloud / AI video surveillance. In May, Verkada increased their prices. Now, OpenALPR is doing the same with a...
Avigilon President Henderson Is Out on Jul 09, 2019
Avigilon's President and COO James Henderson is out, abruptly, after a remarkable ascension over the past 8 years, Motorola VP Jack Molloy has...
Resideo Stock Plunges 37%, CFO Ousted on Oct 23, 2019
The horrible year for the ADI / Honeywell Home spinout, Resideo, just got worse, with their stock plunging another 37% today. Not even a year...
Resideo CEO To Step Down on Dec 03, 2019
Resideo's CEO, Mike Nefkins, is stepping down, just 18 months after being brought in to lead the now plagued spin-out. Inside this note, we...
"Good Market, Bad Business Models" - Residential Security on Dec 11, 2019
Industry banker John Mack, at his company's annual event, took aim squarely at the problems in the residential security...
Vivint Valuation Falls $1.5 Billion on Dec 19, 2019
Residential market struggles continue. Now, Vivint's valuation has fallen $1.5 billion in its impending merger. Inside this note, we examine...

Most Recent Industry Reports

Motorola / Avigilon Drops ISC West on Feb 26, 2020
Motorola Solutions has pulled out of ISC West 2020 effective immediately, because of coronavirus concerns, IPVM has learned. This is done amidst...
Cancel or Not? Industry Split Over ISC West on Feb 26, 2020
The industry is split, polarized, over whether ISC West 2020 should run or be canceled. New IPVM survey results of 400+ respondents show heated...
Coronavirus Hits Sony, Bosch Says Switch on Feb 26, 2020
Sony's fall in video surveillance has been severe over the past decade. Now, they may be done. In this note, we examine Bosch's new...
Video Surveillance Cameras 101 on Feb 25, 2020
Cameras come in many shapes, sizes and specifications. This 101 examines the basics of cameras and features used in 2020. In this report, we...
Favorite Video Analytic Manufacturers 2020 on Feb 25, 2020
Video analytics is now as hot as ever, driven by the excitement of advancing deep learning offers. But what are actually integrator's...
Latest London Police Facial Recognition Suffers Serious Issues on Feb 24, 2020
On February 20, IPVM visited another live face rec deployment by London police, but this time the system was thwarted by technical problems and...
Masks Cause Major Facial Recognition Problems on Feb 24, 2020
Coronavirus is spurring an increase in the use of medical masks, which new IPVM test results show cause major problems for facial recognition...
Every VMS Will Become a VSaaS on Feb 21, 2020
VMS is ending. Soon every VMS will be a VSaaS. Competitive dynamics will be redrawn. What does this mean? VMS Historically...
Video Surveillance 101 Course - Last Chance on Feb 20, 2020
This is the last chance to join IPVM's first Video Surveillance 101 course, designed to help those new to the industry to quickly understand the...
Vulnerability Directory For Access Credentials on Feb 20, 2020
Knowing which access credentials are insecure can be difficult to see, especially because most look and feel the same. Even insecure 125 kHz...