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)

Paul Shah

04/24/18 04:11pm

John,

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

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

John Honovich

IPVM | In reply to Paul Shah | 04/24/18 07:24pm

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.

Paul Shah

In reply to John Honovich | 04/24/18 07:44pm

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

John Honovich

IPVM | In reply to Paul Shah | 04/24/18 07:49pm

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.

 

Undisclosed #1

04/24/18 04:57pm

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

Seems like an odd campaign:

Avatar

Meir Lehrer

02/19/19 01:10pm

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?

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

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...
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...
Knightscope Sells Just 1 Net New Robot In 6 Months on Oct 04, 2019
For the first half of 2019, US government records show that Knightscope has sold just 1 net new robots ('machines-in-network'), inching up from 52...
Milestone Has Problems on Oct 01, 2019
Milestone has problems. While the company previously excelled in the shift to IP cameras, as IP has matured and competitive differentiation has...
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...
Knightscope Adds Just 2 Total Customers In Past Year, Yet Raising Money at $300 Million Valuation on May 02, 2019
This is no longer funny. While Knightscope has laughed it up promoting robot selfies, joking about a 'suicidal robot', the man who attacked a...
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...
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...
The Fastest Growing Video Surveillance Sales Organization Ever - Verkada on Apr 17, 2019
Verkada has the fastest growing video surveillance sales organization ever. In less than 2 years, they already have more salespeople in the US...

Most Recent Industry Reports

GeoVision Presents AI and Facial Recognition on May 22, 2020
GeoVision presented its AI analytics and facial recognition at the April 2020 IPVM New Products show. Inside this report: A 30-minute video...
Density Presents Occupancy Monitoring For Coronavirus Protection on May 22, 2020
Density presented its cloud-based occupancy sensor to deal with Coronavirus at the May 2020 IPVM Startups show. Inside this report: A...
Openpath Presents Two Door PoE Controller on May 21, 2020
Openpath presented its new PoE controller at the May 2020 IPVM Startups show. Inside this report: A 30-minute video from Openpath including...
Bosch Presents MIC 7100 Extreme PTZs on May 21, 2020
Bosch presented its MIC 7100 Extreme PTZs at the April 2020 IPVM New Products show. Inside this report: A 30-minute video from Bosch...
Hikvision Chairman Targeted For Sanctions As Federal Watchdog Calls Out Hikvision "Serious Religious Freedom Violations" on May 21, 2020
The US government's religious freedom watchdog has criticized Hikvision for being "credibly implicated in serious religious freedom violations"....
Hikvision Temperature Screening Tested on May 20, 2020
Hikvision has ramped up the promotion of its 'temperature screening' system, including their salespeople arguing for no blackbody needed. But how...
Axxon Presents VMS 4.4 and AI Behavior Analytics on May 20, 2020
AxxonSoft presented its VMS 4.4 and AI behavior analytics at the April 2020 IPVM New Products show. Inside this report: A 30-minute video...
Indoor Robotics Presents Tando Aerial Drones on May 20, 2020
Indoor Robotics presented Tando indoor autonomous drones at the May 2020 IPVM Startups show. Inside this report: A 30-minute video from...
Directory of 89 Video Surveillance Startups on May 20, 2020
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly...
FLIR Cancelling Contract With X.Labs / Feevr on May 20, 2020
While X.Labs announced the signing of a new agreement with FLIR on May 12, 2020, FLIR said, in response, on May 18, 2020, that they had cancelled a...