Simplisafe Raises $130 Million

By Isabella Cheng and John Honovich, Published Apr 14, 2021, 12:03pm EDT

Simplisafe has raised $130 million and IPVM estimates Simplisafe is on pace to have more total monitoring customers than ADT in 5 years.

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Inside this note, we examine Simplisafe's past 5 years of growth, its projected growth, comparisons to ADT, Ring, and Wyze plus how Simplisafe is explicitly targeting taking share from ADT and other incumbents.

Estimated *********

**** ********* **********'* ********* to ** ** ***** $4 ******* ***, ** 4x **** **********'***** ********* ** $* billion ***, **** **** were ********. **** ** ***** on **********'* ********** **** they ****** ** "******$*** ********* ********** ********* ******* during *** ****** ** this ****."

********* ******* ******** ********** are ********** ********** ** investors *********, *.*., ******* to *** ********** ** ************ ** *****. ** *** ********** a *** ******** ** annual ********* *******. **** does *** ******* *** physical ******** **** **** sell. ************, ********** ** moderately **** ********** ** it **** *** **** customers ** ****** ** has * **** **** mature *** ****** ******* business *****.

Growth **** ***** **** *********

** ******** **********'* ****** over *** **** * years ** ** ~**% based ****** ******** ** ******** alarm ****** ******* ***************** **********'* **** ****** recurring ******* ** ~$*** million.

********, ********** ** "********** to **** ** * rate ** **** **** 30 *******" ** ****.

Total ******** **** / ********* ********** ****

*************** *******"********** **** * ******* people", ** ******** ***** 2021 ********** **** ** be *.* ** * million *********. ********** **** not ******* * ******* contract,******** ******** ******* $** ** $** per *****. ***** **********'* disclosure ** $*** ******* annual ********* ******* *** a ******* ******* ******** price ** $** (******** more ********* ***** *** less ********* ******) **** returns *.** ******* ********* (i.e., $*** ******* / ($18 *** ***** * 12 ****** ** * year).

Surpassing *** **********

** ******** **** ********** has * ********** **** of ****** **** ***** subscribers **** *** ** the **** * *****. If ********** ********* ** ~30% ****** ****, **** an ********* *.* ******* subscribers, ********** ***** ***** 6.5 ******* *********** ** 2026.

*** ********* *** ~*.* million ************** *** **** ***** in **** ***** *** many ***** (*.*., ****-***** *** **** ***** shows *.* *******).

Higher ****** *********** - *** ** **.

** ******* ****** ** how **** ********** ** taking **** *** ** customers *** ***** *** buy *** ** ***** traditional *********. ***** **** the *** ********** **** has **** **** *** years, ** ******* ** least **** ** **********'* growth ** ****** ** the ******* ** *** expansion.

Simplisafe ********* ***

********** ** ******* ********* ADT, ** ***** ***,*** *********** ******* * **** ************. ******* ******* *** "long **** (*-* ****) bets" ********* ********* ***** awareness ** **** ***** from ***********. ** ***** that:

*** ******* ********* ** up ***%, **** **** year. ** **'** ****** tremendous ********. *** *************, despite **** ***** ****, said, *** ********* ***** who ** *** ***, but **'** ******* ** that.

********** ** ******* **** continuing ** ******* ***** awareness **** ****** ** them ****** ***** **** incumbents ** ***** ********* expire:

* *** ****** ********* if ******* ********* ********* to ** ** **** it *** ****, ** will ********* **** **** more *****, ************ **** of *** *********** **** contracts **** ***** *********. As ***** ********* **** free, **** **** **** the ******. ** ****** might ** ********** ** buying **** ** *****, but *** ******* ** the **** **** ****'** in * ******** **** a **********. ** *** know, ** ****** **** now, **** **** **** of ****, ** **** point, ** **** *** back *** **

************, ***** *** **** the *****-** ****** **** share **** ************** ********* competitors, ******:

****** ** ** ************* in *** ****** *** our ********, *** ** have ** ********* **** professional ******* ******* ***** people **** ** ** into **** *****. *******, we ***'* ****** **** to **** *******. **** is * *****-**** ********.

*** ********* **** ***** has * ****** ** interesting ******** ***** ***** competitive ***********:

Lower ****** *********** - **** *** ****

** *** **** *** years, * *** ****** to ********** ** **** they *** ** ****** the ***-****** *********. ***** Simplisafe *** **** **** on ***** ************ *******, both**** (** ~$** *******)******* (** $* *******)*** **** ********** **** comparatively *********.

** *** **** *** years, ********** *** **** to ****** ***** ***** (or ********* * *****-****** tier) ** **** ******* growth ** *********** ** to ********** **** ********** did ** ******.

Lower ****** ******

** **** **** ************, Simplisafe's *** ******* ** the *********** ** ***** prices ** *** ******:

**** ** ** **** to ***** *** ** a *****, *** ***** proposition ** **** *******, you ****, ********* ***** prices *** **** ******* features *** *****

** ** ****** **** Wyze *** **** ********* a ****** ** ***** model ********** ***** **** companies **** ******** ****** of ***** ***.

Advertising ***** ****

********** ** * ***** advertiser ****** **, *** Internet, ********, *****, ***. which ******** ***** ******** of ******** ***** ***** over *** **** ****.

*** *******, **********, ********** *** **+ ads **************** ******* **** ****** away * **** ** camera:

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** **,*****.** ****** **+ ********** US ******** ** *********, ******* **** ** the *** *** ** all ** ***********:

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** * ***** ** comparison, ********** ** ****** higher ** ** ********** spending **** *** (#*** vs#*** *** ***), ************'* **** ** ****** higher ** #***** ********.

Comments (13)

*** *** ***** *'* unsure ** ** ******* to **** ***** * direct ********** ** *** jack-of-all-trades, ****** ** **** thing **** **** ***** on. **********, *******, ***** watches, **********, ***. *** very **** ** **** have ****** ******* *******. I ***** ** ******** to ***** **** **** home **********, *** ****'* as ******* *** **** a *** ** ***** cameras *** ***'* **** (too ****) ****** **** them. *** *** *****, the ******* ** ****, and ****'** ******* *********. But ***** * *****'* had *** *****-****** ********** with *** ************/ **** monitoring ******, ***** *'* off ****.

Agree: 2
Disagree
Informative
Unhelpful
Funny

****'* * **** *****. Wyze ** ********** ****** a ******* ******** ***** Simplisafe ** ******* **** focused ** ********, **** in *****, ****'* ****** release ** * $** floor ****:

Agree: 1
Disagree
Informative
Unhelpful
Funny

* ** * **** fan *** * ***'* be ***** **** *** my **** ********. * am ***** ****** ** their ******** **** ******* that *** ***** ** best. ** *** **** time *'* *** **** sure * ***** *** SimpliSafe ****** *** ** home *********. * **** been ** *** ******** far *** **** ** trust ***** ******* ** secure ** ****.

Agree: 1
Disagree
Informative: 1
Unhelpful
Funny

******* ***** *** ****** to ** ********** ** everyone ** * ***** sentence ** *** **** run. *** *** **** companies ****** ***** ***** and *** ** ********** themselves.

Agree
Disagree
Informative
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Funny

*******, * ***** ********* about ****. * ****** if ****'* **** ** to ** **** *** 21st ******* *** *** home **********, *.*., ***** competitive *********** ** ** be * ***-**** **** for *** **** **** appliances (****** **** ** better ** *** ********** area *** **** **** be *** '****' ** good ****** ******* ** such *******).

Agree
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Informative
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Funny

* *** *** ********* of **********, ***** * friend ********* ** *** showed ** *** ******, touting **** *** *** the ************ ******* **** very ****** **********. *** further ****** **** **** she *** * ********, a **** ****** *** quickly ******* *** ******** excellent **********.

***** * ****** *********, my *** ******** (******* seeking ** ****** *******!) purchased * ****** **** SimpliSafe *** ****** **** mirrored **** ** ****** said. **** * ***** her *** *** ****'* approach **, *** **** she ****'* **** ** burden ** **** *** installation ** * ************ system, *** **** ** dealer **** *** *** home ****** *** ***** what *** **** *** the ********** ******.

* ******* ** *** a ****** ****** *** tried *** *** ** both ** *** ******* and ***** ** ** both ********* *** ****** much ** ********* *******...*** just *** ** ******** your **** ********.

** **** **** **, I *** ***** ** a ***** ****** **** week ***** ****** ***** non-functioning ************ ******, *** I **** **** ****** not ***** **** ***** after ***, *** ** look ** **********. * was **** ********** ** a ********* *'* ******** with *** *****, **** asked ***** * *** cost ***** ******...*** ******* it...Simplisafe *****.

* ***'* **** ***** the *********** *** *********** of *** ****** *******, but ** ** ********** was *******, **** ** mouth **** ******** *** off ****** *** **** than ***** ****** ********* campaign.

Agree
Disagree
Informative: 3
Unhelpful
Funny

*** *********** **. ********** subscribers ** *** ****** comparable, ****** *** ******* for **********/**********/************* ********. **** other "***********" ********* (******, CPI, *** *****), * material ******* ** ***'* business ****** *** **** from **** ****** ****** (though *** ** ****), which *** *** ********* economic *** ********* ********. The ********** **** **** these "***********" ********* ** that *** *** *********** built **** ********** /********** business **** *** ****** up, (** *** ********** remained **** ****/***), ****** valid ********** **** ******. The **** ******** ** that *** *** **** losing * *** ** share ** *** ****** residential ********, ******* *** new *******/******* *********** ******** just ****, *** -- not ********* **** ***** was ******** -- ******* its **********/********** ******** ****** than ****** *** *** competition (***********, *** ********* acquisitions). ** *********** ******* DIY-based ********** (**** *** optional ********** ********) *** increasingly **********/**********-******** *** *** not ****** *****. **** is *** ** ******* from *** ****** ** investment ****** ** ***********, not *** ******* *********** spend (******* **** ** Vivint, ***** ** * purer *********** *****), *** its ***** ******** ******. Ultimately, ** ***** *** what *** ******** ***** of ****** *** *** Simplisafe, ****** ******, ****** Vector, ****** *** "***" resi/industrial ***.

Agree
Disagree
Informative
Unhelpful
Funny: 1

*** *********** **. ********** subscribers ** *** ****** comparable, ****** *** ******* for **********/**********/************* ********.

******, *** ****'* **** we *** ***** ****. We *** ********* *** residential ** **********. ** your ***** **** ***, as * *******, *** be ** ***** **'* expanding **** ********** ** offset *********** ******? ** so, * *****.

**********, ** ***** *** what *** ******** ***** of ****** *** *** Simplisafe, ****** ******, ****** Vector, ****** *** "***" resi/industrial ***.

** ***** * **** question ***** *** ********** model's **********? ** *** old **** ****** ********** whether ****** ***** *** it ** ******* **** would *** *** ************ but *********** $*** ******* annual ********* *******, ** there ***** * ******* that *** ********* ** now ****?

Agree
Disagree
Informative
Unhelpful
Funny

* *** * *** fan ** ********** *** the *** ****** *** I **** * ****** on ** ****** ****. However, * ******* ************ the ****** *** *** users. ** *** **** side, ***** ****** ** a ***** ****. ****** that, ***** ** ******* that ****** ********** ** stand ***.

*** ******* *** ****** only, **** * ***** kit ** **** **** usable ******** *** *** cameras **** *** **** reliable. * **** *** units; *** ** ****** function *** *** ******* shutter ***** ** ***** one ** **** ****** the ***** ** ******.

* *** **** ********** with **********. ** *** been *** **** ******** since * ***** ******** in * ****** ***** ago.

******'* ****** ********** ** the **** ***** ** just ** **** ** install, ** *** ******. It ********** **** *** app **** **** ****** already **** *** *** doorbell. ****** ******* **** work *** * ***** line ** ******* ****** options **** ********** ******** in *** ****** ********** of ******** **** ******* the ******. ***** ********, integration **** ******** ******, integration **** **** ******* systems, ****** ***, *****, etc. **** ********** ******* the *** ********, ***. Plus, *** ******* ********** is **** $**/***** ** paid ********.

********** ** ***** ** be ******** *** ********* by ****** ** ***** R&D ******* *** *********** with ** ********* **** so **** ********* ******* participate **. ** ***** is ** **** ** become *** ** ***** standard *** *** ******. Change ** ****?

Agree
Disagree
Informative
Unhelpful
Funny

********** ** ***** ** be ******** *** ********* by ****** ** ***** R&D ******* *** ***********

*** ***** ** *****. Technologically ******/**** *** ****** a ****** ******* *** they **** ******'* ********* muscle.

**********'* ********* ** *****. Amazon *** * *** of ****** **** *** trying ** ** *** they ******* ** ****, but *** *** ** them.

**** ******/**** **** **********? I ***'* ****.

**** ******/***************** ******** **** *** in ***********? **** ******* me ** ********** ** this *****.

Agree: 2
Disagree
Informative
Unhelpful
Funny

**********'* ********* ** *****. Amazon *** * *** of ****** **** *** trying ** ** *** they ******* ** ****, but *** *** ** them.

**** *****, *** ******** on *** ********* *** zero ********** ***********, *** * ***'* feel **** **** ** the ****** *** ******* against ******. **** **** need ** ***** *** hardware ******** ** ** par **** ***** ******* AND ******* *** **** of ***********. **** ****** zero ********** ***** ***** current ********** ** ********** equipment *** ********, * don't **** ** $*** million **** *** **.

**** ******/***************** ******** **** *** in ***********? **** ******* me ** ********** ** this *****.

********** *****. ** ** experience, *** *** **** "traditional" *** "********" ****** about ** ***. ** younger ********* *** ** as **********'* ********** *** they ********* *** *** interested ** ****** ** much ***** *** **********. Plus, **** ***'* **** to **** **** ***** people.

Agree
Disagree
Informative
Unhelpful
Funny

**** ********** ** * strategy, *** * ***'* feel **** **** ** the ****** *** ******* against ******

* ***** ***** **********'* lack ** ********* ********** for *** **** *** years. *** ***** ** did *** ******* ** the **** *** ** worth ****** **** ****** ********** ******* ******** ***** *********** team ** **% **** this **** *******:

*** ******* ** ****** to ********** *** ********* **** year ****** ********, ********, software *** *-********, ***** will ***** *** *********** team ** **** **** 300 *********.

*** **** **** ******* in ****** ******** ******* to ** **** *** there ** * *********** that ** ********* ***** is ******.

Agree: 1
Disagree
Informative
Unhelpful
Funny

******* ******** ** $********. Maybe *** ******** ***** of ********** ********** ** to **** *********. ********* get *** ***, ******** traditional ******** ***** ** ADT *** *****, ***** includes ******** *** ******** manufacture *** ************ ** support * ******/******* ***********, ie ********* ******** ****-******** by ***** ****** ** alarm ******* ** ******* origin. * ******** **** of *** ******** “***** proposition”, ***** ** ***** away ** ******* ****, after **** *******. ***** often ********* *** ********* are ******* **** **** are *** ********* ** the ********** ************** *** remote **********. ********** ********** this ******** **** ** the ******** ***** ** a *********** *****-***** ********** firm **** ** ******* to **** ** *********** and ****** ****** **** could ********** *** ****** business *****. ******: *** Jones; ******* ******** *****

Agree
Disagree: 1
Informative
Unhelpful
Funny
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