Pivot3 CEO Gone

Author: Carlton Purvis, Published on Apr 30, 2013

When Pivot3 previewed their company plans for 2013, it did not include major changes in leadership. However, the company has confirmed today that Pivot3 CEO Rich Bravman, has stepped down and Chief Technology Officer and founder Bill Galloway is filling the role. Pivot3 says Bravman left for "personal reasons." [UPDATED below with interview with the new CEO.]

However, our understanding from industry sources is that the change at Pivot3 comes from pressure to meet aggressive revenue goals set by its investors, especially considering its raising of $23 million for expansion last year. Pivot3 previously reported nearly doubling its revenue in 2012.

A Pivot3 engineer we spoke to this afternoon says no official notices have been sent to employees about the changes.

Last month, in an interview with IPVM, Bravman bucked rumors of restructuring and said the company projected this year’s growth to be 50 percent over 2012. The company has 90 full-time employees and was hiring to fill new positions. 

We have an interview with the company's new CEO tomorrow morning. We will update as new information becomes available.

******:

**** ******* ** ****** ** ******* ***, ******* *** ***** Technology ******* **** ********, ********* ******** *** **** *** ***** ********* Officer Olivier *******. ****'* **** ** *******:

Moving ****** ****** ****** ** ********** ** ****** ****** *** **** *** impact ** *** ********* ** *** *******, **** ****** ********* Chairman *** ****. ** *********** **** ****** *** *************** *** ******** ******* **** ****, *** ******** ** *********.  The********** **** ** ******’* ********** ******* **** *******. ** **** **** **** ******** **** remain ******* *** ***** *** ******* ******** *** * ***** market ******. *** *** ***, **** *****, **** **** *** launch. 

“[*** *******] ** ******* ** * **** ***** ** *** think ** ** *** **** ******** *** ** *** ***** having *********** ** **** ** ***** **** *** ************** *** our **** ***. ** **** ******* ** **** ** ** an ****** **’** ******* ******* **** **** **********,” **** **** ** an ********* **** *******.

ScanSource ***********“We ********* * **************** ***** *** ** *** **** *** **** *** **** to **** ***** ** *** **** **** ****. ****’* ***** to ***** ** * ********** **-** ****** **** * *** of *** ******* ******** *** ***** ** ******* ************ *** opportunities,” **** ****.

****** **** *** *********** **** ***** **** ** ****** ******** to *********** ******, ******** ********** ********, *** **** **** *** ability ** ** *****-** **** **** ****** *********. “**’* *** just ***** ** **** ** * ************ *****.  ******** ******** we’ll ***** **** **** ***-**-***, *** ****** **** **** ** able ** ****** ****** ******* ************,” *** ******* ****.

2013 ************** ****, “** **** ** ******* **** ******* **’** ******** ** ****. * ***’* ***** **’** ***** to **** ** ******* **** **** ... *** ** ** have * **** ** **** **** ****.” ****** **** **’* VDI ********,******* **** **** ** **** ******* **** **** ******, ******* surveillance **** **** *** ******* *****. ****** **** ** *** already **** ********* *************************** ****.

Comments (6)

The 'personal reasons' explanation does not fit with someone truly leaving for 'personal reasons'. When a CEO genuinely does so, they give ample time for a smooth transition, a formal press release praising him/her is sent out and a new CEO is already lined up. None of this happened here. Either Pivot3 is mishandling something quite basic or is not telling the truth.

I am not sure if they actually believe they are going to IPO or if this is some sort of smokescreen, but it is extremely unlikely they will IPO anytime soon, if ever. Even by their own optimistic projections, 2013 revenue would still be less than $50 million. And they acknowledge they are not yet profitable (though again hope to be this year). In the US market, trying to IPO with such low revenue and weak (or non-existent) profitability is a huge barrier. As the Chairman of the National Venture Capital Association said to CFO magazine, "Venture capitalists now look at $100 million as the minimum revenue threshold for an IPO."

Just got this statement from Pivot3 on revenue:

"We are not revealing specific numbers but what we can say is we are seeing significant growth in surveillance in what we call Safe City projects (transportation, municipal, government, parks and monuments). In VDI, the healthcare and education verticals are delivering numerous opportunities for growth."

Will they make it past 2013? Saying they will not grow 80% but will have some growth sounds very weak and likely a sign of worse times to come.

They got $23 million about 15 months ago. To that end, I would be surprised if they had any short term / 2013 issues. Let's see what the new CEO does ... when they find that person.

Looking at what they offer they should be poised for an explosive year. Is their problem technical? Is it lack of competent adminstration? Is it smoke and mirrors? Pricepoint too high for perceived value? The concept is there so the problem should be fixable.

I think the 'concept is there' for only a narrow slice of the market. Basically, Pivot3 has potential for the 100+ camera per site segment (otherwise lots of other cheaper / simpler storage options are viable and the redundancy benefits are not applicable). With such a niche, they might address 5 or 10% of the market. Because of that, there's a limit in how big the company can get and how fast they can grow.

Pivot3 services a niche of a niche of a niche (large scale systems within storage within surveillance). That's a tough recipe for a company with $100+ million investment.

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 on Financial Updates

Milestone 2017 Financials Examined on Apr 24, 2018
For ISC West 2018, Milestone released ... their financials, touting "strong revenue growth in 2017". However, there were discrepancies with the...
ADT Hammered Again, Loses Another Billion In Market Cap on Mar 16, 2018
ADT's CEO told investors that, 'in baseball terms', ADT was batting 5 for 5. But investors told ADT's CEO, 'in baseball terms', that he was...
Arlo, Bigger Than Avigilon, More Valuable Than Axis on Feb 08, 2018
Arlo, the wireless IP camera offering that Netgear bought ~5 years ago for a few tens of millions is now doing more revenue than Avigilon and...
Axis Breaks 1 Billion USD Annual Revenue on Jan 26, 2018
Axis Communications annual revenue has exceeded $1 billion for the first time in 2017. In this note, we examine Axis financial performance over...
Sentry360 Bankruptcy on Nov 30, 2017
Sentry360, a US-based video surveillance manufacturer, most well-known for its panoramic cameras, has filed for Chapter 7 bankruptcy. In this...
Axis Q3 2017 Financial Results on Oct 23, 2017
A big issue for Axis this past quarter was their product shortage. Despite that, new Q3 numbers for Axis show solid financial results. In this...
Avigilon Shifts Strategy To Maximizing Profitability (Q4 2016 Results) on Mar 01, 2017
Avigilon had previously been known for big spending, hiring a large sales force and throwing lavish partner parties at tradeshows like ISC West....
Avigilon Stock Surges 40% On Strong Growth (Q3 2016) on Nov 15, 2016
The roller coaster continues. After a brutal Q2 heading down, Avigilon's Q3 growth is strongly up. Inside this note, we examine what powered...
Axis Video Revenue Down (Q3 2016) on Oct 20, 2016
An important milestone. Axis revenue for video products is down year over year. But Axis is now focusing on 'diversification'. In this report, we...
Avigilon Stock Plunges On Bad Financials (Q2 2016) on Aug 16, 2016
Avigilon's stock went down 25% the day after it announced earnings. The stock had already been down by more than 60% from its peak. The market is...

Most Recent Industry Reports

IFSEC Show Report - Live From London on Jun 19, 2018
IPVM is live from London reporting on the IFSEC show. The Chinese have taken over the UK, centered on Hikvision, flanked by Dahua, Huawei and a...
Axis Guardian - Cloud VMS for Alarm Companies on Jun 19, 2018
Axis has struggled to deliver a cloud-based managed service video platform. Video service providers have utilized AVHS for over a decade, and have...
IPVM Vulnerability Scanner Released on Jun 18, 2018
IPVM is proud to announce video surveillance's first and only cybersecurity vulnerability scanner. This tool allows quickly and simply...
Hikvision Corrects False Cybersecurity Announcement on Jun 18, 2018
Hikvision has corrected a false cybersecurity announcement that claimed a British government-sponsored program endorsed the cybersecurity of...
July 2018 IP Networking Course on Jun 16, 2018
The last chance to save $50 on registration is this Thursday, June 21st. Register now and save. This is the only networking course designed...
The Dumb Ones: PSA's Bozeman On Cybersecurity on Jun 15, 2018
The smart ones are the hundred people who flew to Denver and spent $500+ on a 1.5-day conference featuring Dahua as a 'cyber responsible partner',...
Amazon Ring Launches $10 Monthly Professional Alarm Monitoring on Jun 15, 2018
Amazon's Ring has announced an alarm system with 24/7 professional alarm monitoring for $10 per month, a fraction of the $30+ per month traditional...
Axis Releases First New Access Controller In 5 Years (A1601) on Jun 15, 2018
It has been 5 years since Axis 2013 entry in the physical access control market, with the A1001 (IPVM test). Now, Axis has released its second...
Hikvision 12MP Fisheye Camera Tested (DS-2CD63C2F-IV) on Jun 14, 2018
Hikvision's DS-2CD63C2F-IV is their flagship panoramic camera, with a 12MP imager, 15m integrated IR, smart codec, and more. We tested the 63C2 in...
Four Major Outdoor Camera Install Problems on Jun 14, 2018
Over 140 integrators told us the top four camera installation mistakes that lead to unexpected problems and failures. Their comments often...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact