Access Startup Operto Raises $25 Million, 2023 Profile
While 2023 has been tough for funding, access/hospitality startup Operto raised a $25 million series-B funding. How did it do so despite the challenges?
In this note, based on an interview with Operto CEO Steven Davis, IPVM analyzes the company's financials, operations, and competitive strategies across the following items:
- Operto background
- Huston as executive chairman & Davis as CEO
- Operto financial overview
- Pricing
- Operto size and customer profile
- Revenue estimate
- Market Expansion
- Cost structure
- Operto headcount
- Latch comparison
- Lock and PMS agnostic business model
- IoT ecosystem
- Customer service
- Churn rate analysis
For more on hotel access control, read Hotel Access Control Explained. IPVM has also previously tested Operto's competitor RemoteLock and analyzed RemoteLock's business structure.
Operto **********
****** *** ******* ** **** ** its ****** ********** *********** ****** ******** ***** *********, ******. *******.*** **-********* ************ ******'* ******** *********** *** *** company's ********* ******** ** ****. ******** left ****** ** **** *** *** firm *************** ******* ******* ** ******* ****** *******, * ******* ***** Davis **-*******. *** **** ****** ** 2022.
****** *********** ** "******** ********** ******** and ******* ******." ***** **** **** that *** ******* **** ** ******* horizontal ********* ** ****** * ****** end-to-end ***** ******* ******* ** ************ in * ****:
**** ********* **** ** *** ***** well. **** **** ** ****** ******* or **** **** ** ***** ************. They **** ** *** ***** ** the *** **** * **** ** vertically ********** **** *******.We're **** **** ** * ********** ****. [Emphasis added]
*** ***** **** ** **** *********** for *****-**** ****** ******, ********** ** they *** ******* ***** ********** ** having *** *** **** ********** ******* to ******* **** **** ***** **** stack.
*** *** ******* ***** *******-***** ****** who *** **** ****** ** *** a **** ***** ******** **** **** works ******** ** **** **** *** move ** ** ***** ****** ** their ********. ****** ** * ******** where **** ***kill * *** ***** **** *** *****. [Emphasis added]
*** ** *** ***** **** ****** is **** ****** ** *****, ********** in ****, ***** **** ****** **, who ** *** ****? ***** ****** made *** ******* **** ****? **** Operto, ***** ** [****] *** ***** call ******* ** ****** ** ***. That ** * **** ***** *** especially *** *****-**** ******* *** ********** in ****** ** ****.
***** **** ******** *** ** ****** journey ****** **** *******, *** ****** control, ** ******** ********* *** ************:
*** ****** ** ******* ** ****** booking ** ******* *** (****** ****** Agency), ** *** ****** *** *** (property ********** ******), *** ** **** begin *** ***** ******* **** **** moment **. **** ***-******* ***** ************, rolling **** ****** *******, ******* ****, and ********** [***********] ** ***********, ********* on *** *******. ****** ***** **** they[the ******] *** ***** ******* ****, it ***** ******* * ***** *** so **** **** *** ****** ***** rooms, *** ***** ***** *** ******** amenities. *** **** *** *** *** through ** ** ************, ***********, ** cetera.We ****** ** * ******** **** **'** ******** ** **** ** **** **** ** *** *****'* ******* **** *** ** ***. [Emphasis added]
** ***'* **** ** ******** ****** like ***** *** ********* ********** ** smoke ********* ** ******** ******. ** will **** * *****-***** ****** **** our [******], ***** **** ** ******* that ************* ******* ******.
*** *******'* ******* ********* ****** ******* of *****-**** ****** ********** **** ** Airbnb, *** ** ** ******** **** the ***** ******, ***** ********* ***** much ****** **********. ** ******* *****-****** apartments ** ****.
** ****** ********* ** *****-**** ******, and ** *** ********* ** *** our *** * *** **** **** hotels, ***** ** * **** **** complex *****. **'** ********* *** ******* key ******** *** ***** ******. ** do [****** ***** ****** *********] ********, and *******.
** ** * **** ****** ** multifamily [*********]. ** ***'* *********** *****, but **'* * ****** ****. *** us. **'* **** * ****** **** we **** ***.
Huston ** ********* ******** & ***** ** ***
***** ********** ** *** *** ******** Huston's ********** ** *** (****** ****** Agencies) ****** *** ******* ******** ******:
*** *********** ***** ***** ******, ***** is * ****** *** ********* ** [that] *** ******** *** ******** *********** is *** **-*** ** *******.*** [****** Huston]. [**] ********* [***] * **** rich ********** [**] ******* *** *****'* largest ***, *** *** *** ****** that **** ***** **** ****.
**[******] ********** **** ** ****, **** he ****** *** *******, **** ******* keys *** ****** ******* **** ******** a ***** ***** **** *** ****. The **** ******** ***** [** ****] you ****** ***** ** ***** *** puck ** ***** ** **, *** where ** **.
****** *** **** ** **** ******* when *** *********** ******** ******* ** open ** ***** *** ********:
**** ******* ** *** ********; ** brought ****** *******. ** **** ** the ***** ***** ** *** ***** time. **** *** *** ******* ** the *****.
** **** ** ****** ***** ** open ** *****, *********** ***** **** lists, *** ******* ** *** **** interacting **** ********* ****** ****, **** popular, ********** ** ******** *******. ** were ** *** ***** *****, ***** time, [...] *** ** **** **** to ******* ****** ** **** *** 2022.
****** ******* ***** ** ** ****** CEO ** ****. ** ********* *** company's ****** ********* ** *** **** when ** ******:
*** ******* *** ***** ********, ** not ********.
***** * ****** ** *****, *** original ****, *** ********, **** **** not *** ***** **** ** **** this ***** ** *** **** *****. So **[******] ******* ** **, *** we **** ***** ************* *****.
Operto ********* ********
***** ********** **** ****** *** ***** significantly ***** ** ******. ******* ********** specific *******, ** ********* **** *** company ******* *** ***** ***% ** the **** * ***** *** *** fact **** ** ******** ******-* ******* implied ********** ************:
* ***'* **** *** *********. *** we **** ***** **** *** **** two ***** ** ***** ***%. ** has **** *** ******* ***** ** the ******. ** **** *** * series-B *****. ** *** *** *********** what *** ******* ***** **** ** be ** ***** * * *****.
******* *********** ***'* **** *** **** and **** ** ***** ** **** trajectory ***'* ******** *** ********.
**** ** *** ****** ******* **** Operto *** ****** ** * *****, adding** *** $** ******* ****** * in ******** ****.
*******
****** **** *** ******* ******* ** the ****** ** *****, *** ** averages *** ** $**-$** *** **** a *****:
** ******* ** *** ******* *** how **** *****. ** ** $**, $11, ** $*, ****** **** *****. It ** *** $**, *** ** is *** $*.
Operto **** *** ******** ********
***** **** **** **** ****** **** not **** **** ***-************ ******** ******** and **** ** ********* *** "******** of *********" ***** ********. ****** **** it ***** ** ***** ** ******** with **** **** ** *****, *** that ******** ** **-*** ***** *** its **** *********** ****:
** ** *** **** **** ***-************ property ********. ** *** *** ** the *** ******* ******** ********, ***** they *** ******* *** **** **** up * *** ** *** ******* Airbnb ******, **** ** ******** ***** value *** **** ****** *********** *****. Also, **** ***** * *** ** time ** *** ***** **** *** CS **** *** *** **** ** the *******.
***** ********** ***** **** [********* ****] 1, *, *, **, [*****], ** tend ** ***** *** ******** ** our **** ****** ** *** **+ doors.50 ** *** ** *** ****** **** **** ***** ** ** *******, ** ***** ** ************* **** *** ****. [Emphasis added]
Revenue ********
**** ********* **** ******'* ****** ******* is ** *** $**-$** ******* *****, based ** ******** * *** ******* thousand ***** *** * ***** ******* of $** *** **** *** *****.
*** *** *** ****** **** ** what *** ****** **** ** ***** forward, ** ** *** ******* ******** close ** **** ** *** *** the **** *** *****, ** *** the ********* ** ****** **** ***** but ** *** ******* *** **** it **** **, ***** ** *** limited ******** ** **** ******* ** date.
Market *********
****** ** ********* **** *** ***** market, *** *** *******'* ******* *** program **** ***** ****** ** ********* its ******* ******* ** **** *** space. ***** ******* ********** ** ******'* plan **** ***** ** *** ********* years:
**** **** ** [*** ******* ********]. We **** **** **** *** ** our ***** **** ** **** **** testing. ** *** **the **** ** ********* ** ***** **** **** now. But that is like eating an elephant one spoonful at a time. It is a multi-year multi-phase, multi-geographical layout rollout. If you look at what Hilton and Marriott spent to roll out their digital key programs, it is not overnight, that is for sure. Especially when you got a franchise model and everyone has got, different locks on different doors and there are new hotels and old hotels, luxury hotels, and budget airport hotels. There is just a whole bunch of not roadblocks, but challenges. [Emphasis added]
***** ********* **** ******* ***** ******'* ambition ** ********* **** *** **** complicated ***** ******:
** ** **** ******* **** *** are ******* ** ****** *******, *** group ********. ****** *** *********** **** which *****, ******* **** ***** ****** members, ****** *****, *** ********** ****** to *** ****.
****** *** *** **** **** *******, but ***** ** ******* **** ** cannot **.
******'********* ** ***** ********* **** ******* company ************ **** ****** ********** **** *******:
*** ** *** ********* ** ****** last ****[*********] *** ***** *****, ***** you *** **** **** ** ******** lock ***** ***** **** *** **** online ******* ********* ** **** ** can ******* *** **** ****** ******** having ** ******* *** ****. ** is ***** ******.
** ** **** ******* *****, ****-********* way *** ******, ********** ***** *** do *** **** *** ******* *********** [budget] ** ******* ***, ***, ** 300 *****, ** **** * ****** life ** ***** ***** *** ****** the ******* *****'* *******.
Cost *********
****** *** **** ******** ** ******** and ******* ** ******** ****-****** ****** the ********* ***** ******, *** **** helped **** **** ***** **** ** funds. ***** ********* *** *** **** weathered ********** ** ****:
*** ******* *********** ** *** *** SaaS ********* ******* **** ** **** have ** **** ** ******** ****. Or **** **** ***** ****** ******* about **, ******* **** ****** ******* that ***** *** ***** ** ** free *** ******* ** *****.
**** ****** **** *** ****-*******. **** were ****** ****** **** *** **** or ******** ******* ** ******** ** survive ** ** ** ***** **** their ********* **** ********.
** **** ***** * **** **** conservative ********. ** **** *** ********* at ***. ** **** **** **** tactical **** *** ***** ** ******.VCs *** ***** ********** ** *** ***** *** ********* **** **** * **** ** ***** **** ** *** ***** **** *******. We have got the efficiency. It is like with $1 in they want to see $2 out whereas before, you could get by with like $1 in and 50 cents out. [Emphasis added]
*****'* ** ***** [**** ***** ** a ******] ***** ** *** ********* digging **** *** ******** ******, ****, and ****** *******, ***good ********* *** ***** ******* ******. [Emphasis added]
Operto *********
****** ************* **** *** *********. ***** told **** **** *** *******'* ********* is *** ***, * ******* ****** compared ** **** ***** ***** ****** the **** **** **** * ***** ago:
** **** **** ***** *** ***** employee. * *** ******** ****** ** or **.
*** ****** ********* *** ** ********. The ***** ***** ****** **** *****' statement ***** ******'* ******** ******:
********* ** ******** ****-******* ** ********, 22% ** ******'* ********* ** ** sales, ***** **% ** ** ***********. 39% ** ******'* ********* *** *** fall **** *** ********* * **********:
Latch **********
** ***** ****** ***** *** **** viewed ********** ** ***** *** *** been ** *** **** *** **** good *** *** ******* **** *** last *** *****:
*** ***** ****** ** ** *********** one ******* ** ** * ****** ecosystem. * *** ** ****** ** not **** *** **** **** ** is ***** **** ***. *******, ** do *** **** **** ** ** the *****. ** ** *** **** what *** **** ***; ** *** them ********.
*** ******** ***** ** ************* *********. They **** *** * ***** *******. I ***** ***** *** **** **** do *** **** ** ******* *******. It ** **** * ********* **** on * ******* *******.
Lock *** *** ******** ******** *****
***** **** **** **** ******'* ****** is **** *** *** ******** ** its ****** ******* ******** *** **** the ***** **** *** **** ** enabling ************:
** **** *********** **** * *** of ******.We *** **** ********. We work with ASSA ABLOY, all of them. We integrate into pretty much every PMS on the planet. We are PMS agnostic.
[**** ****** ****] **, ** ********* lock *************, **** ******, ***** ****, OEM **** ** *****. *** *** majority ***** ** *** ****, ***** folks.
IoT *********
******* ************** ****** ****** *** *********** in *** *** ********* ***** *** company ******** ******** *****-***** ************ ** create. ***** ********** ** *** *** company ******** * ************* *** ********** for *********:
The ******* ** ******* (*** ***** *******), **** *********, *** **** *** ******* ********* [are the key differentiators for Operto]. [Emphasis added]
*** *** ** *** ****** ** the ****** *** ******** **** ** the ********. **** *** **** ********* lettuce, ******, *** ***, ** *** build **? **** ** *** ****** to ** ** *** *** ** each ***. ** * ******* ***** to ** *** **** ***, * want ** *** ** * ***** management ******, ** * **** ** thermostat *******, *** ****** **********, ** can **** ************ ** ****** *** guests ****** *** **** **** **** after **** *****.Where ** *** ******** ** *** * *** ** ******** ** ***, *** **** ***** ** **** *** **** ****** ******. [Emphasis added]
** ** ********* ******. ** ** dimming *******. ** ****** ******* ** have *** ****, **** **** ************ teams, ** *** **** ***** ******** on *** *** **** **** *** system ** ** ** ** * scale.
Customer *******
****** ********** *** ***** ******** ******* team ** ***** ** ********* **************:
** ** **** ******* ******** *******. There ** ** *****. **** *** of *** *********** **** ***** **/* [service] ******-***-*****, ***** *******-***** *******. ** is *** **** ******* **** **** center **** *** ****** ******* *** phone *** **** ********* *********, ***** is **** ******* *******.
***** **** ******* *** **** ****** rarely ***** ***** ******* ******** ** go **-**** ** **** ***** ********:
*** ******** ** ** *** ** done [******]. ** *** ************. * lot ** *** ****, ** **** and **** *****, ** *** ** problems **** * ********* ******** ** base ******* ** ** ***** **** the **-**. ** ** ******* ** us [**** *** *** ***** ** by] ******* *** ***** ***, ********** it, *** ******** ** **** **. Sometimes ** ** ********* **** ******.
*****'* ** **** ** *** ** without ***** *****. ** ******* *** the **** **** * ******** ***, we *** ***** **** ******* ** get ** ***** *** ******* *** lock. *** ********, *** ****** ** times ** **** ** ***** *** to * ********** ** *** ********* I *** ***** ** *** ****. It ** ****, **** ****.
Low ***** ****
***** ******* **** **** **** ******'* extensive ******** ******* ******* *** **** to **** * *** ***** ****:
**** *******, *****? ****** *** *** by *********, *** ***** **** ****, locks ** *******, *** *** ***** things ******. ** ** *** ********* that *** ***** *** ******** ** those *******, *** ** ****. [**** is ***] ** **** ** ************* low ***** ****.
** *** *** * ****** ****** like *****, *** [***] ***** **** we ********** ** ** ***** ** zero ** *** *** ***** *** in * ******** **** **** ******* our ***** **** *****.
******* *** **** ** *** ***, RemoteLock **** ** *** ** *** customers *** ***, ***'** ****** ** bucks * **** **** ******, *** we **** ** ** *** *****. If **** **** **** * **** customer *** *, ** * *****, they *** *** ***** ***** ** save * ***** * ****.
** *** *** ** *** ***, in ** ****** *******, *** **** magical ****** ** *** *****'* ******* is **** *** **** **** *** off * *****, *** *** **** kids *** ****, *** *** **** want **** ******** ** *****. **'* that ****** **** *** **** ** your ***** ** *** **** *** it ***** *** *** **** **** bags, **** * ******, *** ***** your ********.
******* *** ******* ** ******** *********, Davis **** ****** *********** **** **** who **** *** **** *** ** price *********** ********** ******** * *** months *****:
********* **** ******* ** ****[*** *********] will ** ** ***** ********* **** they **** ******* *** *****. ****, I'm **** ******* *****, ************, **********, Lynx, ** *******, *** ** **** lose *** ******* ******* ******* **** in ** * **** ***** ***** door.
**** **** ** ********* ** *** case ** ** ***** ** **** see ***, **** ****. *** *** months *****, **** **** *** **** are ****, "***, ** *** ****** problems. ** **** * **** ********** service. ** *** ******* ** *** a ****** ******* **** ** **** sure **** ** ***** *** *** time."
*** **** *** **** **** **** is. **** ** ***** ****** **** to *** ** *****. ** **** as *** **** ** ** ****** breaks. ** *** **** **** ** a **** ** *** ***** *** not **** ** ****a ******* **** ******* **** ******** *******, * ***** *******, **** ****? Because at some point, lightning strikes. [Emphasis added]
** *****-***** *******, ***** ** ********* low. * ******* **** ** **** as **** ****** *******, ***** ***** increase.
*******
**** **** *** **** ****** ***** this ****** ******* ** *********** ****** Operto's ****** ****** *** **** ** has ****** ***** ***** ** *** past ** ****** ** * ******** sign ** ********* ******* *** ******* in * ***** ******.