Milestone 2017 Financials Examined

By: John Honovich, Published on Apr 24, 2018

For ISC West 2018, Milestone released ... their financials, touting "strong revenue growth in 2017". However, there were discrepancies with the 2016 report and the announcement only had a summary.

Inside, based on speaking with Milestone and obtaining the full report, we examine their growth, competitive positioning and the important financial role of support/maintenance contracts.

*** *** **** ****,********* ******** ... ***** financials, ******* "****** ******* growth ** ****". *******, there **** ************* **** the **** ****** *** the ************ **** *** a *******.

******, ***** ** ******** with ********* *** ********* the **** ******, ** examine ***** ******, *********** positioning *** *** ********* financial **** ** *******/*********** contracts.

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

Full ********* ******

*****-**** **** ********* ********* **** ******* **** the ***** *******.

Net ****** ** ***% - ***** *** *** ***** ******

*** **** *********** ****** in *********'* ********** *** net ****** ********** ** ~$12 ******* ***, **** net ******* ******** **** ~6% ** ******* ** ~13% ** *******. *** factors ****** ****:

(*)********* **** ***** ** court *** ******** ** *********** *****. While *** ***** ****** was *** *********, ** was ******** ****** **** it ********* ********** ** the **** ******:

** ******** ** *** in *** ***** ** a *** ******* *******, based ** *** ********** that ** ** *** less * *******, ** likely ***** **** **** immaterial *** ** ** was **** **** ** million, *** ****** ***** have ****** *** ** be *********.

(*) ***** ******** ****** was **** ***** ** 2017 **** ** ****, increasing ** **** *% in **** ** ********** 21% ** ****. ********* said **** *** ***** ahead ** **** ** 2016 *** ***** *********** helped ****** *** ************* in ****. ****: ***** was * *********** ******* the *** ****'* ********** reports *** ********* **** that *** * ********** error.

Invoiced ******* ** *** *******

** ****, *********'* ************ led **** '******** *******'. However, ** ****, '******* revenue' *** ******* *** only '*** *******' *** shown. ********* ********* **** 'invoiced *******' ******** ***-******** for ****, ***** *********** / ******* ******** **** *** ****** years (*.*., ** **** but *** **** ** 2019, ***.). ** ****, this ********* *** **% of *********'* ***** ******** revenue.

2017 *** ******* - ~$*** ******* / ******* ***********

*********'* **** *** ******* was ~$*** *******, ** from ~$*** ******* ** 2016. 

****** ** ***** ** revenue, ********* ** ******* ** ex-FLIR's *** / ***** division, *******, ********* *** Verint's ***** ************ ********. However, ********* ********* ***** software ********, *** ********. Clearly, ********* ** * much **** ********* ******* than *** ******* ****** indicate. *******'* ******** ******* is $***+ *******, ****** Genetec *** *********** ****** control *** *** ********** as **** ** ****. See ************ ******* / ********** Directory.

CARE *********** / ******* *********** ******* ******

'******' *** **** / licensing *** * ****** ** contention ** *** ********, with **** *********** *** users ********* **** *** some ************* *** ** not ****** **** (*.*., Avigilon) ***** ** ** a ***** ******* ***** against ***** ***********.

** ******** ** ** half ** *********'* **** net ******* ***** **** their '****' *********** /******* charges, ***** ** ~**% of ******* ******* ***** from **** ****** ***-********. Moreover, ***** *** ******** of *** ********* *****, there *** ****** *** more ******** *** ******** already **** **** *** be **** ** * given ****.

***** ***** ******* *********** / ******* ********* *** certainly *************, *** * company **** ********* **** focuses ** ******** ***********, these ******* *** ******* critical *** ***** ********.

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

****** **** ***** **********, IPVM's********** *** ************ ************** **** ********* ******* strong *************. ** ****, Milestone *** *** **** first *** **** ************* increased ***** **** **** competitors. **** ** **** is ***** ***** ** software *********** *** ** least ******* ******** *** been *********'* ********** ** continue ** ** ****, both ** ***** ** development ********** *** ******** partnership. ** ********, ***** has ******* ****** **** inward ******* ** *** / **** *** ******* has ******* **** ** their *** '*******' *********.

***** ** *** **** nearly * ***** ********** ******** *********, ********* *** ********* to *********** *** ********** open *****, ***** *** served ** **** *************. Their *** ******* *** be *************** **** ** 2017 *** ** ***-*** factors ***, ** **** as ***** ****** *********'* independent *********, ** *** a **** ****** ** continue ** ** ************* strong.

Note: ******* *********

*********'* **** ********** **** them ** *** ***% owner ******* ******, *** *******, the ***** *******. *********, *******, ***** that ** ** **** month, ********* ** *** only * ******** ***** of *** *******.

Comments (6)

John,

What % of the VMS market would you estimate Milestone has? 

Also, what do you think the % of Genetecs estimated revenue is their VMS?

Paul, good question. It's a hard one to answer depending on how categorization is done. Most importantly, do you only include VMS software licenses or do you count NVR units? E.g., when Milestone runs press releases saying they are #1, this is for only VMS software licenses. There's obviously a lot of NVR unit sales. Also, Milestone market share in China, the now largest market in video surveillance, is something like 0.01%.

If you only looked at mid to high-end installs (say 50+ cameras and above) in the West, I think Milestone is roughly 20% of that market. Of course, that leaves out all of China and all SMB sales.

As for Genetec, with them, I don't think they like to talk about 'VMS', but in terms of non-access control, non-LPR revenue, I would think it would be in the range of 50 - 75% of their revenue.

Good info

Personally I would count NVR.

Genetecs revenue was always a point of interest because they don't seem to have ne the amount of market share as Milsestone, but have so much more revenue

Personally I would count NVR.

For sure, understanding usage requires counting NVRs. Recall, in the old days, NVR sales skewed revenue numbers up because it was effectively software + hardware. Now, NVRs are routinely sold for less than VMS software, i.e., 16 channels of mid-tier Milestone is significantly more expensive than a 16 channel Hikvision NVR. 

Genetec almost certainly has less total customers than Milestone but a larger average customer size, i.e., Genetec wins more mega-accounts.

 

For ISC West 2018, Milestone released ... their financials...

Seems like an odd campaign:

Hey Folks,

New to the group. Seems like a lot of really meat-and-potato discussions going on. Since I'm still undergoing 'immersion training' in the market segment itself, can you guys give me your take on how important scalable/separable/centralized storage is in the market as opposed to an appliance approach?

Thanks!

Meir

NOTICE: This comment has been moved to its own discussion: How Important Scalable/Separable/Centralized Storage Is In The Market As Opposed To An Appliance Approach?

Read this IPVM report for free.

This article is part of IPVM's 6,435 reports, 865 tests and is only available to members. To get a one-time preview of our work, enter your work email to access the full article.

Already a member? Login here | Join now

Related Reports

IPConfigure Presents Orchid Fusion VSaaS on Apr 30, 2020
IPConfigure presented Orchid Fusion VSaaS at the April 2020 IPVM New Products...
Emitted Energy TempScan Thermal Screening System Examined on Apr 28, 2020
Emitted Energy has specialized in temperature measurement using FLIR cameras...
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...
Avigilon Open Analytics Tested on Apr 16, 2020
After years of effectively closed analytics, Avigilon decided in late 2018 to...
Brivo Presents ACS100 Single-Door Combo Controller & Reader on Apr 27, 2020
Brivo presented its first integrated reader and controller, the ACS100 at the...
Euklis Presents AI Analytics on May 05, 2020
Euklis presented its AI facial recognition, LPR, and object recognition...
Hikvision Fever Screening Thermal Solutions Examined on Apr 13, 2020
Hikvision is marketing "safer, faster, smarter" with their Fever Screening...
Openpath Presents Two Door PoE Controller on May 21, 2020
Openpath presented its new PoE controller at the May 2020 IPVM Startups...
Axton Presents Pulsed-Light Illuminators on May 15, 2020
Axton presented Pulsed-Light Illuminators (Pulsar Series), at the April 2020...
Bosch Presents MIC 7100 Extreme PTZs on May 21, 2020
Bosch presented its MIC 7100 Extreme PTZs at the April 2020 IPVM New Products...
Omnisense "Mass Fever Screening and Pandemic Control System" Examined on Jun 11, 2020
Omnisense Systems is marketing a "Mass Fever Screening and Pandemic Control"...
Wyze Raises $10 Million, Now $15 Million, And Seeks Services Expansion on May 27, 2020
Wyze has raised $10 million, the company's first disclosed raise since the...
Trueface Presents AI Face Recognition, Mask and Temperature Detection on Jun 10, 2020
Trueface presented its AI facial recognition, mask and temperature detection...
FLIR A Series Temperature Screening Cameras Tested on Jun 04, 2020
FLIR is one of the biggest names in thermal and one of the most conservative....
PSIM CNL Acquired By Everbridge on Mar 09, 2020
The end has finally come for CNL. Despite for years saying they would...

Recent Reports

SIA Coaches Sellers on NDAA 889B Blacklist Workarounds on Aug 05, 2020
Last month SIA demanded that NDAA 899B "must be delayed". Now that they have...
ADI Returns To Growth, Back To 'Pre-COVID Levels' on Aug 05, 2020
While ADI was hit hard in April, with revenue declining 21%, the company's...
Exposing Fever Tablet Suppliers and 40+ Relabelers on Aug 05, 2020
IPVM has found 40+ USA and EU companies relabeling fever tablets designed,...
Indian Government Restricts PRC Manufacturers From Public Projects on Aug 04, 2020
In a move that mirrors the U.S. government’s ban on Dahua and Hikvision...
Directory of 200 "Fever" Camera Suppliers on Aug 04, 2020
This directory provides a list of "Fever" scanning thermal camera providers...
Face Masks Increase Face Recognition Errors Says NIST on Aug 04, 2020
COVID-19 has led to widespread facemask use, which as IPVM testing has shown...
Dahua Loses Australian Medical Device Approval on Aug 04, 2020
Dahua has cancelled its medical device registration after "discussions" with...
Google Invests in ADT, ADT Stock Soars on Aug 03, 2020
Google has announced a $450 million investment in the Florida-based security...
US Startup Fever Inspect Examined on Aug 03, 2020
Undoubtedly late to fever cameras, this US company, Fever Inspect, led by a...
Motorola Solutions Acquires Pelco on Aug 03, 2020
Motorola Solutions has acquired Pelco, pledging to bring blue back and make...
False: Verkada: "If You Want To Remote View Your Cameras You Need To Punch Holes In Your Firewall" on Jul 31, 2020
Verkada falsely declared to “3,000+ customers”, “300 school districts”, and...
US GSA Explains NDAA 889 Part B Blacklisting on Jul 31, 2020
With the 'Blacklist Clause' going into effect August 13 that bans the US...
Access Control Online Show July 2020 - On-Demand Recording of 45+ Manufacturers Presentations on Jul 30, 2020
The show featured 48 Access Control presentations, all now recorded and...
Face Detection Shootout - Dahua, Hanwha, Hikvision, Uniview, Vivotek on Jul 30, 2020
Face detection analytics are available from a number of manufactures...
Sunell is The First China Manufacturer to Market NDAA Compliance on Jul 30, 2020
Most China manufacturers are going to be impacted by the NDAA 'Blacklist...