Imperial Capital Security Investor Conference 2018 Review - ADT, Resideo, Alarm.com, Arlo, Eagle Eye, ACRE, More

Author: John Honovich, Published on Dec 14, 2018

Imperial Capital Security Investor Conference is an event matching industry executives with financiers that frequently leads to future funding and acquisitions. Among the 60+ companies presenting this year were ADT, Resideo (i.e., Honeywell Home / ADI), Alarm.com, Arlo, Eagle Eye, ACRE and more.

We bought a ticket and attended. In this note, we examine:

  • How ADT is pitching its commercial (re-)expansion to investors and how it views the Amazon threat
  • What Resideo is most bullish about going forward
  • How Alarm.com is pitching the business market expansion to investors
  • How Arlo plans to compete against the growing number of low-cost wirefree competitors
  • Why Eagle Eye says it has supercharged its growth through the Brivo acquisition
  • How OpenEye did or did not pitch investors and how it contrasted to Eagle Eye
  • How ACRE is expanding again with a new acquisition and why they dislike the camera business
  • What a Columbia University professor advocated to these investors and what he got wrong about the video surveillance business
  • Who was there (and not there) not presenting but notable in the industry (Axis, Avigilon, etc.)

******** ******* ******** ******** ************ ** ***** ******** ******** ********** **** ********** **** ********** leads ** ****** ******* *** ************. ***** *** **+ ********* presenting **** **** **** ***, ******* (*.*., ********* **** / ADI), *****.***, ****, ***** ***, **** *** ****.

** ****** * ****** *** ********. ** **** ****, ** examine:

  • *** *** ** ******** *** ********** (**-)********* ** ********* *** how ** ***** *** ****** ******
  • **** ******* ** **** ******* ***** ***** *******
  • *** *****.*** ** ******** *** ******** ****** ********* ** *********
  • *** **** ***** ** ******* ******* *** ******* ****** ** low-cost ******** ***********
  • *** ***** *** **** ** *** ************ *** ****** ******* the ***** ***********
  • *** ******* *** ** *** *** ***** ********* *** *** it ********** ** ***** ***
  • *** **** ** ********* ***** **** * *** *********** *** why **** ******* *** ****** ********
  • **** * ******** ********** ********* ********* ** ***** ********* *** what ** *** ***** ***** *** ***** ************ ********
  • *** *** ***** (*** *** *****) *** ********** *** ******* in *** ******** (****, ********, ***.)

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

Abnormal ******** ********** - **** ****** *****

**** ***** ** **** ********* **** ***** ******** ****** ********* go ** **** *** ****, *****, ****. ******** ******* ** most ********* ********** (*** ***** ******* ********), ****** **** *********** renting *** ***** *** ********* ** **** ******* ** ********.

******** ******* ** *** ******* ***** *** **** ********* *** bought *** ** ** ****** **** **** * ****** ** help ****** *** *******, ******* *** *********, ******** *********, ***. Imperial ** *** ** **** * *** *** *********** ** this *** *** ******** ******** *** **** *** ***** ****** the ****** ** ******* *****, *.*., *** ********* ***********,*******'* ***********,**********'* ***********,***'* ***, ***., ** ***** ***** ***** (**** *** *** ********) shows:

***** *** $*** ****** *** * ***-*** ***** ** ***** for ******** *********, **** ******* ********* *******, **** ******** **** money ** **.

*** ****** *** **** *** *** ************ ** **** **** facilitates ************* *** ********** ******* *** *** ******* ******** ***** to ***** ******** ** **** **** ** *** **** **** deals *** ******.

Few ********, ****** *********** ** *** *********

***** ** ** ** '********' **********, *** ********* ********** *** mostly ***** *********, *** **** ********, ***** ******** *** ***** of ********'* **** ******. ** ****** **** **** *** ********* like *** ** ***'* **** ****** ***** *** ******** ** "Wow, **** *** ***** ** ********", ** *** ******* **** their ******** ***** *****:

Mostly *****, **** ***** *** ******

*** ********** ** ********* ******** ****** ***** ********** *********, ***** is ****** * ********** ** ***** ********* ******* **** ********* (since ***** ****** *** ***** ** ***** **** **** ******** for *** ***** *** ****** ** **** *** **** ** the ******** / ********* *******) *** *** **** ** ******** Capital's ******** ********,**** ****, ***'* ********** ** ****** *** ***********.

Valuations ***** ****

**** *****, ** *** ***** ***** *********, **** ********** *** still ****:

ADT ******** ********* **** *******

*** *** ***** ******** ***** **** ***** ******* ********* ********** business ****** ** *********** ***** *********** (** *****), **** ***********'* *** ****, ** **** ***** *****:

***'* *** *** *** ********** ********, *** **********, **** *** pitch *** *** *** ********** ********* ** * ***** ****. In *** ***** *****, ** ***** ***** *** **** ** the ******** ********* (*** ******* **** ***** *********) *** ******** 'friends' ** *** *** **** **** *** ** *** *** long **** **** ***:

*** **** *** *** ** **** ***** '*******' *****, **** their **** ** ******** **** *** *** **** ********* ******* out ** * *** *****. ********* ** ****-**** ********** ** acquired ********** ** * *******-******** ******** ** *********, ** **** tend ** ****** ****** ** ***** ** ***** * *** company ** **** ** *** **** ********** ****-***********.

ADT **** ********* **** ******

*** ******* ***** ******** ***** ** *** ****** *** * partner ** ****, ***********, *.*., **** **** **** *** **** professional ******** ** *** ************* *****(****** ****** **** ******'* **** **** **** **** ****** ** Alexa ***** ** ****).

**** **** ***** ***'* *** ******* *** ******** ********* ***** Smith ***** ****-**** *********** **** ******, ** ********* ** ** a *** ******** ****** **** ** ***** ****** *** ****** for ******** *** ********** *******, ** *** ***** ** *** response ***** *******:

**** ** ********* ****. *** ******** *** ********* *** *** are ******* **** ********* **** **** ** **** ***'* *********** business. ***** *** ****** *** ******** ***** ** ****** **** ever **** ******* *** *******, ***** ** ******* *********** ******** ****. ***** *** ** ******** ** **** ***********'* ***** ****, the ******** ******** ** *******, ******* *** ********* ***** ** severe.

*******

*** **** ***** *** *** *********'* *** ********* / ******** / ********** *****, *****, ** *** ***** *****, **** ****** the '**** **** ******** ******* ** *** *******'* *******', ****** the ******* ** ~* ***** *** (****** *****, ** *** not ******* *** ********** **** **** ********* **** ******** *********).

******* ****** *** ***** ***** ** ****** *** ******* ** install, *** **** ******** ***-***** ** ******* ********** ** ********* 'cartridge' ******* **** *** **** ******* ******* ********* ********** '*********' service *****. **** **** ********* *** *** ****** **** ******* 'interchangeable **********' *** ******* **** *******, ** ********* ***** ************ pushbutton ***** *** ************ ** ******** ******* ******** ** *************** of *** ******.

*** ******* **** ***** *** ** ***** ** *********** ********* Vista ***** ****** *** ****-**** *********** ***** ****** ** *** next ~* *****.

************, ******* ********* *** ****** / ****-********** ** *********, ** the ***** *****:

*** *** ****** ******** ***** ****** ***** ****** ******** ******** '2 ** * ****' ******* **** **** ********** **** * next-generation ***** ******. *** ******'* ***** ***** **** ** ******** to * ***** ****** *** *** **** ******* *** **** be ********* ** **** ****** *** ******* ***** ******.

********* ******** *** / *********** **** *** $*** *******.

* **** ***, **************** *********'* ******** ********* *********** **** ************** *** ******** **** * ************ *******. ** **** ***** *** *** ******* ** ****** ** it ** ********.

*****.***

**** * ***** ****** ** *********** ******** (**** $***+ ******* annual ******* *** *** ** *** ******* ************* ******* ** the ********), *****.*** ********* ****** *** ********* **** *** ********** / *** ******.

***** ***** **** ** ***** ******** ************** ********* ******** ********* **** ** **** **** ***** ******** *********** core:

*************, ** ********* *** ********** ****** ** '**********' *** ******* 'lots ** ***********' ** ****** ******* ** ****. **** *** perspective ** *** ************ ***********, **** ** ********* ****, ****** the ********** ****** ** ****** ********** **** ************ ***** ************ systems.

*** *** *** ***** ******** ********* ** ******** '* ******* solution'. ***** '*******' *** ****** * ******* ***** ***** ****** scale ****** ********* **** ******* *** **, *****.*** ******** **** in *** ***** ********* **** *** ******** ******:

*****.*** ******* ******* ********** ***** *** ** ******** ****** ******* - *.*., *** ****** ********* ******* * *** ***** **** the ******** **** ** *** ******, ** *** ***** ***** covers:

****

****'* *** ********* ********** **** *** ******* ********* **** *** them *** ** ******** *** ******** **** ** ************ ********. While ****'* ******* ****** *** **** ********** (*.*.,**** $*** ******* ** ****), ******* ** ************** **** ******* *****, **** **** ~*% of ********* *********** *** **** ********. ** ****, **** ***** Smart ******** / ** ***** *********, ********** ** *** ************:

** ****** ****'* ********* ** *********** ********* *********** *** * ****** *********** ***********, **** ****** **** **** minimal ***** ******.

********, ****'* *** ******* ***** '***** ********', * ********* ******** ** *** *** ******* ***** ******** offered ** *********** *******. ** *** ***** *****, ** ****** the ******** ** ********** *** ****** **** *** *** ******** and ***** **** ** ******* ***** *******:

** **** *** ****** ****'* ***** ******** *** *** ** the ******.

Eagle ***

*** **** *********** **** ** ***** ***'* ************ *** ********* Ken ******* *********** ***** ********'* ****** ** ***** *** $** ******************* ***** ***'* ******. *** ***/*** ** **** ***** ***** Eye *** ********** ** ***** **** ****** ******* **** ***, once ***** ****** **-**** *** *****, **** ***** ***** *** to *** ***** ***** **** *** ************ *** ******* *** vendor ******* ******* **** ** * ******* *** **** ******** like ***** ***. ** *** ***** *****, ******* ******** **:

***** *** *** *** **** *** ******** ******* ******* ** even ********* ******** ****** ******* ****** **** *** ******* **** slide **** *** *** ********* ** *** ****:

***** ** ** ***** **** *** ******* ******* *** *** much ** **** ** *** ** *** ***** *********** ****** ************* ************* *** *****, *** ** ***** ***** ******* *****.

***** *** *** ********* *** **** *** ***** **** *** multi-site ****** (**** ** *********, *** ******* *** ****), ***** we ******* *** *** ** * **** *** *** * cloud ******* *******. ** *** ***** *****, ******* ******* * question ***** ********* ** *** ********** ******** ** **** *****-**** aspect:

** ***** ** ************ '**********' (*.*., ********, ******* ***, ******, etc.),*** **** ***** *** ************ *** ******* ***** *** *********** ************ ** ********** **** Genetec ******** ******, ********* ********, ***.

*******

*******'* *** **** ******** ********* ** *** **********, ****** $** million ****** ******* *** ******* **% ****** ** ***** ****** 'direct *******' ******** **** **** ** ***** *****:

*******'* *** **** ****** *** '****** *****' **** **** * glimpse **** *** *********** *** ********:

**** ********** *** ** ********'* **********, ** ***** **** ******* has ***** ******** *** ******** **********. *** **** **** ** was ********** **** ***** **** **** *** **** ** **. We ***** **** **** **** ** ** ******* **** ****-****** companies **** ***** *** (*****) *** *** ***** ****** ***** growth ** ********* *****.

****

*** ********, ******** *** ***** ******** ************ ** *** ** was ********'******* ******. *** *******, ** *** ***** *******, *** ******* **** quite **** ****** *** *********** *** ********** * *********** ******, ** ** ********* ** *** ***** below:

****** **** ********* **********, **** **** **** ** * ******* company *** ******* ** ********* ******** **********, ********* ***** **** are **** *****.

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

  • ********* ******* ****** ****** '****** **** *******' *** **** ********** growth.
  • *** *********** ** ******* ******** ******** ***** * '**** ***** upper' **** '*** **** ****** * *** ** *****'. **** noted **** **** **** **** ******* **** ******.

*** ******* ********* ** **** ******* ** $*** *******, ** the ***** ***** *****:

Grillo ********* ****** ********

****'* *** ********** ********** *** ***** ************ ****** ******** ** a **** ******** *** ** *** **** ** *** ******, price ********, ***. ** *** ****** **** "**'* *** *****". We ** ***** *** ****** ******** ****** ********* *** **** better ******* **** *** ******* '********' *** ********* *** *** growth ** ** *** ***** ** * ************** **** ** not ** **** ** *********.

ACRE ******** ***********

**** **** ** ********** ** *********** ** ** ****** ******* company ** ******, *** ****. ** ****** ** *** ******** the **** ***** ** ** ********* ** ********** ************* **** the ******** *******'* ****.

Columbia ********* ** ************

*** **** ******** ************ ** *** *** *** **** ******** machine ******** ********* **** ********** *** ******** * **** ***** overview ** ** *** ********* ** ***** ** ************* ******* 'strong' *** '****' **, *********** **** ***** '******' ** ** science ******* **** '****' ** *** ******* *********** ********* ********, as **** ***** *****:

*** ******* ** **** **** ***** ************ ** ************ **** into * '******' ********. **** *** *** ** ********** ** building * ********** ***** *** **** *** *** **** *********** than ****** *** ************ ********* *****. ****** *********** ** ****** detection ** * ***** *******. ****** ***** ** '****', ** his *************** *** ******** ***** ********* ** *** ***** ***** out ** * ******* **, ** *** '******' **, ********* not ****.

**** '******' ********** ************ ** * ****** ****.

*** ********* **** *********** '**** ********' ****** *** ************** *** much ** * ******** ******* **** ** *** ********* ******** paying *** ****, ** ** ********* ** *** **** *****:

*************, ** ****** * ********* **** **** ***** ****-*********** ******* Sensetime ********* **** '************ *********** **********'.

***, ** ********, **** ********* ** ** ********* ** ** 'increasingly ***********' ******* *** ********** ** ** **** ** **** operational ********* ** ***. *** ***** **** *******, ****** *** Chinese ********** ***** ** ******** ** ********* ****-******* ******* (*****, in ********, **** ** *** *****, *** ****** *** **** technology **** ** *****.

*** ******** ***** *** **** ** ****** *** ********* ******* for ** ********* ***** ********:

** ******, ****'* *** *** **** / *** *****, *** security ******** ********* *** ***** *** ******** *** ********.

********

*******, ******* ** ****, *** ****** * ***** ******** ** ********** *** **** VMS ********, **** ********* *** *****. ** ** ***** ******* many ***** **** ***** *** ********* ******** ********** (*.*., ********* Husky,******* ***********, ***.) *** ** *** ***-***, ******* ********** *** ******* in *** *** ***** **** ***** *****).

*******'* ******* ********* ** *** ***** ***, ** *** ***** below, ********* ***** ***** ******* *** ****** *** *** **** raising ** ****:

*** ******* *********** ** * *** ***,**** *********, **** ******* *** ******** **** ***** (******** ****).

IHS ****** **** *********

*** *** *** ** *** ******** ** *** *****, ********** their ****** **** *********.

***** ***** ************ ***** *** ******* **** ** *** ******** security ********* ******, *** ********* **** ** ***** ***** $** billion, *** **** ******* **** *** **** *** *****, ** the **** ** *** ****** ****** **** **** ****** ******** from ********* **** ******:

** *** **** ****, *** ****** ** ******* ***** ******* are **********, **** *** ******* *** **** ********* ** ***:

* **** ******** **: *** ** ***** *** ***** ************ cameras? ******: ****** *****. *** ********* **** ***** ** **** than ***** *** **** ** *** ** ******:

***** *** ********* ***** ***** ******** ***** ******* ** ~$* billion. *** ***** *** ******* ******* ****** ** ******* ****** of ***** ** **** **** ** *** **, ** ***** that ** * **** *****, ***** ** ******** ********* ~*** more ******* ******** **** *** ** *** **** **** *** rest ** *** ***** ********.

Who *** ***** *** *** *****

** *** **** *****, *********, ****, *********, *******, *** *** seen. ********'* *** *** ********* ******.***** *******, ****** **** ******* * **** ***, *** *** *** ********, *** ** ****** * ************ executive, *** **** *****.

*******, ***********'* *** *** *****. ****** *** ******* *** *** present, ** *** ** ******** ****** *** #* **** ******* focused ******* ** *** *****.

Comments (7)

****: **** *** ***** *** *** *** ***** *** *** will ** ** * **** (** **:** ** **). ***** its ****** *** **** ** * **** ****, * ****** to *** ** *** *** **** **** ** ***** **** 2 ******** *******.

**** *** ***** *** ** *****.

*** ** **** **** ********* *** ****. ***** *** * significant ****** * *** *** ***** *** ** **** *** space ***********.

*** ***** *** ******* ******* ****** ** ******* ****** ** China ** **** **** ** *** **, ** ***** **** on * **** *****, ***** ** ******** ********* ~*** **** cameras ******** **** *** **...

*** ******* ***** ** ******** **** **** *** *.*., *** is ** ** ****?

* ***'* **** *** **** *** **'* * ****** **:

(*) *** ***** *** * ***** ******* ** *** * counties

(*) *** *** ** ******** **** ** *** * *********

* ***** (*) ** ******** * *** ******, *.*., ** the ** * **** ****** ********** ** **** ****** **** cameras *** ****, *.*., $*** ********* *******, $*,*** *****-*******, $*,*** PTZs, ***. ******* ** *****, *** **** ** ** **** basic ***** ***** ******* **** *** *** *** $**, ***.

**** ***** *****.

*** ****** **** * ********* ***** **********, ******’* *** ****** that *** ******** ********** ***** ** ** ******** ***** ** the **-***** *****, ***** ** **** ************ ******** *** **** markup?

**** **** *** ******** ********** ***** **** ** ** **** the ** ******? ** * ********** ** ******* **** ** the **, ********* ** ** ***** *** ****.

*’* *** ****** * ***** ***** ********** ** **********, *** could *** *** **** ****** ******. *’* ******** **** *** cheapest **** ****** ***** ** * ********** ******* ****** ** possibly * *** ** ******** *** **-***** ***** ** *** camera.

** ******, ** ***** ***** **** *** ********** ****** ** the ******.

*** * ** ***** **** *** *.*. ***** *** ******** more ****-*** *******, ***** *** ***** ******* **** *** ********.

****** *** ********* *** *** ******, ** ****** **** ** me.

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