Simplisafe Raises $130 Million
Simplisafe has raised $130 million and IPVM estimates Simplisafe is on pace to have more total monitoring customers than ADT in 5 years.
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 *********
**** ********* **********'* ********* ** ** at ***** $* ******* ***, ** 4x **** **********'***** ********* ** $* ******* ***, when **** **** ********. **** ** ***** ** **********'* disclosure **** **** ****** ** "******$*** ********* ********** ********* ******* ****** *** course ** **** ****."
********* ******* ******** ********** *** ********** attractive ** ********* *********, *.*., ******* to *** ********** ** ************ ** *****. ** *** ********** * *** multiple ** ****** ********* *******. **** does *** ******* *** ******** ******** that **** ****. ************, ********** ** moderately **** ********** ** ** **** not **** ********* ** ****** ** has * **** **** ****** *** strong ******* ******** *****.
Growth **** ***** **** *********
** ******** **********'* ****** **** *** past * ***** ** ** ~**% based ****** ******** ** ******** ***** ****** Michael ***************** **********'* **** ****** ********* ******* of ~$*** *******.
********, ********** ** "********** ** **** at * **** ** **** **** 30 *******" ** ****.
Total ******** **** / ********* ********** ****
*************** *******"********** **** * ******* ******", ** estimate ***** **** ********** **** ** be *.* ** * ******* *********. Simplisafe **** *** ******* * ******* contract,******** ******** ******* $** ** $** *** *****. Given **********'* ********** ** $*** ******* annual ********* ******* *** * ******* average ******** ***** ** $** (******** more ********* ***** *** **** ********* option) **** ******* *.** ******* ********* (i.e., $*** ******* / ($** *** month * ** ****** ** * year).
Surpassing *** **********
** ******** **** ********** *** * reasonable **** ** ****** **** ***** subscribers **** *** ** *** **** 5 *****. ** ********** ********* ** ~30% ****** ****, **** ** ********* 1.8 ******* ***********, ********** ***** ***** 6.5 ******* *********** ** ****.
*** ********* *** ~*.* ******* ************** *** **** ***** ** **** range *** **** ***** (*.*., ****-***** *** **** ***** ***** *.* million).
Higher ****** *********** - *** ** **.
** ******* ****** ** *** **** Simplisafe ** ****** **** *** ** customers *** ***** *** *** *** or ***** *********** *********. ***** **** the *** ********** **** *** **** flat *** *****, ** ******* ** least **** ** **********'* ****** ** coming ** *** ******* ** *** expansion.
Simplisafe ********* ***
********** ** ******* ********* ***, ** their ***,*** *********** ******* * **** ************. ******* ******* *** "**** **** (3-5 ****) ****" ********* ********* ***** awareness ** **** ***** **** ***********. He ***** ****:
*** ******* ********* ** ** ***%, year **** ****. ** **'** ****** tremendous ********. *** *************, ******* **** Steve ****, ****, *** ********* ***** who ** *** ***, *** **'** working ** ****.
********** ** ******* **** ********** ** improve ***** ********* **** ****** ** them ****** ***** **** ********** ** their ********* ******:
* *** ****** ********* ** ******* awareness ********* ** ** ** **** it *** ****, ** **** ********* into **** **** *****, ************ **** of *** *********** **** ********* **** their *********. ** ***** ********* **** free, **** **** **** *** ******. So ****** ***** ** ********** ** buying **** ** *****, *** *** limited ** *** **** **** ****'** in * ******** **** * **********. If *** ****, ** ****** **** now, **** **** **** ** ****, at **** *****, ** **** *** back *** **
************, ***** *** **** *** *****-** helped **** ***** **** ************** ********* competitors, ******:
****** ** ** ************* ** *** market *** *** ********, *** ** have ** ********* **** ************ ******* because ***** ****** **** ** ** into **** *****. *******, ** ***'* expect **** ** **** *******. **** is * *****-**** ********.
*** ********* **** ***** *** * number ** *********** ******** ***** ***** competitive ***********:
Lower ****** *********** - **** *** ****
** *** **** *** *****, * new ****** ** ********** ** **** they *** ** ****** *** ***-****** disruptor. ***** ********** *** **** **** on ***** ************ *******, ******** (** ~$** *******)******* (** $* *******)*** **** ********** **** ************* *********.
** *** **** *** *****, ********** may **** ** ****** ***** ***** (or ********* * *****-****** ****) ** face ******* ****** ** *********** ** to ********** **** ********** *** ** others.
Lower ****** ******
** **** **** ************, **********'* *** alludes ** *** *********** ** ***** prices ** *** ******:
**** ** ** **** ** ***** for ** * *****, *** ***** proposition ** **** *******, *** ****, hopefully ***** ****** *** **** ******* features *** *****
** ** ****** **** **** *** Ring ********* * ****** ** ***** model ********** ***** **** ********* **** sizeable ****** ** ***** ***.
Advertising ***** ****
********** ** * ***** ********** ****** TV, *** ********, ********, *****, ***. which ******** ***** ******** ** ******** their ***** **** *** **** ****.
*** *******, **********, ********** *** **+ *** **************** ******* **** ****** **** * free ** ******:
** **,*****.** ****** **+ ********** ** ******** TV *********, ******* **** ** *** *** 300 ** *** ** ***********:
** * ***** ** **********, ********** is ****** ****** ** ** ********** spending **** *** (#*** **#*** *** ***), ************'* **** ** ****** ****** ** #212** ********.
****'* * **** *****. **** ** definitely ****** * ******* ******** ***** Simplisafe ** ******* **** ******* ** security, **** ** *****, ****'* ****** release ** * $** ***** ****:
* ** * **** *** *** I ***'* ** ***** **** *** my **** ********. * ** ***** burned ** ***** ******** **** ******* that *** ***** ** ****. ** the **** **** *'* *** **** sure * ***** *** ********** ****** for ** **** *********. * **** been ** *** ******** *** *** long ** ***** ***** ******* ** secure ** ****.
******* ***** *** ****** ** ** everything ** ******** ** * ***** sentence ** *** **** ***. *** too **** ********* ****** ***** ***** and *** ** ********** **********.
*******, * ***** ********* ***** ****. I ****** ** ****'* **** ** to ** **** *** **** ******* QVC *** **** **********, *.*., ***** competitive *********** ** ** ** * one-stop **** *** *** **** **** appliances (****** **** ** ****** ** any ********** **** *** **** **** be *** '****' ** **** ****** breadth ** **** *******).
* *** *** ********* ** **********, until * ****** ********* ** *** showed ** *** ******, ******* **** she *** *** ************ ******* **** very ****** **********. *** ******* ****** that **** *** *** * ********, a **** ****** *** ******* ******* and ******** ********* **********.
***** * ****** *********, ** *** daughter (******* ******* ** ****** *******!) purchased * ****** **** ********** *** pretty **** ******** **** ** ****** said. **** * ***** *** *** she ****'* ******** **, *** **** she ****'* **** ** ****** ** with *** ************ ** * ************ system, *** **** ** ****** **** for *** **** ****** *** ***** what *** **** *** *** ********** system.
* ******* ** *** * ****** deeper *** ***** *** *** ** both ** *** ******* *** ***** it ** **** ********* *** ****** much ** ********* *******...*** **** *** to ******** **** **** ********.
** **** **** **, * *** asked ** * ***** ****** **** week ***** ****** ***** ***-*********** ************ system, *** * **** **** ****** not ***** **** ***** ***** ***, and ** **** ** **********. * was **** ********** ** * ********* I'm ******** **** *** *****, **** asked ***** * *** **** ***** system...you ******* **...********** *****.
* ***'* **** ***** *** *********** and *********** ** *** ****** *******, but ** ** ********** *** *******, word ** ***** **** ******** *** off ****** *** **** **** ***** costly ********* ********.
*** *********** **. ********** *********** ** not ****** **********, ****** *** ******* for **********/**********/************* ********. **** ***** "***********" companies (******, ***, *** *****), * material ******* ** ***'* ******** ****** has **** **** **** ****** ****** (though *** ** ****), ***** *** far ********* ******** *** ********* ********. The ********** **** **** ***** "***********" companies ** **** *** *** *********** built **** ********** /********** ******** **** the ****** **, (** *** ********** remained **** ****/***), ****** ***** ********** even ******. *** **** ******** ** that *** *** **** ****** * lot ** ***** ** *** ****** residential ********, ******* *** *** *******/******* residential ******** **** ****, *** -- not ********* **** ***** *** ******** -- ******* *** **********/********** ******** ****** than ****** *** *** *********** (***********, not ********* ************). ** *********** ******* DIY-based ********** (**** *** ******** ********** upgrades) *** ************ **********/**********-******** *** *** not ****** *****. **** ** *** to ******* **** *** ****** ** investment ****** ** ***********, *** *** amazing *********** ***** (******* **** ** Vivint, ***** ** * ***** *********** model), *** *** ***** ******** ******. Ultimately, ** ***** *** **** *** internal ***** ** ****** *** *** Simplisafe, ****** ******, ****** ******, ****** the "***" ****/********** ***.
*** *********** **. ********** *********** ** not ****** **********, ****** *** ******* for **********/**********/************* ********.
******, *** ****'* **** ** *** doing ****. ** *** ********* *** residential ** **********. ** **** ***** that ***, ** * *******, *** be ** ***** **'* ********* **** commercial ** ****** *********** ******? ** so, * *****.
**********, ** ***** *** **** *** internal ***** ** ****** *** *** Simplisafe, ****** ******, ****** ******, ****** the "***" ****/********** ***.
** ***** * **** ******** ***** the ********** *****'* **********? ** *** old **** ****** ********** ******* ****** would *** ** ** ******* **** would *** *** ************ *** *********** $400 ******* ****** ********* *******, ** there ***** * ******* **** *** economics ** *** ****?
* *** * *** *** ** Simplisafe *** *** *** ****** *** I **** * ****** ** ** second ****. *******, * ******* ************ the ****** *** *** *****. ** the **** ****, ***** ****** ** a ***** ****. ****** ****, ***** is ******* **** ****** ********** ** stand ***.
*** ******* *** ****** ****, **** a ***** *** ** **** **** usable ******** *** *** ******* **** not **** ********. * **** *** units; *** ** ****** ******** *** the ******* ******* ***** ** ***** one ** **** ****** *** ***** 18 ******.
* *** **** ********** **** **********. It *** **** *** **** ******** since * ***** ******** ** * system ***** ***.
******'* ****** ********** ** *** **** Alarm ** **** ** **** ** install, ** *** ******. ** ********** with *** *** **** **** ****** already **** *** *** ********. ****** cameras **** **** *** * ***** line ** ******* ****** ******* **** impressive ******** ** *** ****** ********** of ******** **** ******* *** ******. Smart ********, *********** **** ******** ******, integration **** **** ******* *******, ****** Key, *****, ***. **** ********** ******* the *** ********, ***. ****, *** monthly ********** ** **** $**/***** ** paid ********.
********** ** ***** ** ** ******** and ********* ** ****** ** ***** R&D ******* *** *********** **** ** ecosystem **** ** **** ********* ******* participate **. ** ***** ** ** Ring ** ****** *** ** ***** standard *** *** ******. ****** ** mind?
********** ** ***** ** ** ******** and ********* ** ****** ** ***** R&D ******* *** ***********
*** ***** ** *****. *************** ******/**** may ****** * ****** ******* *** they **** ******'* ********* ******.
**********'* ********* ** *****. ****** *** a *** ** ****** **** *** trying ** ** *** **** ******* at ****, *** *** *** ** them.
**** ******/**** **** **********? * ***'* know.
**** ******/***************** ******** **** *** ** ***********? That ******* ** ** ********** ** this *****.
**********'* ********* ** *****. ****** *** a *** ** ****** **** *** trying ** ** *** **** ******* at ****, *** *** *** ** them.
**** *****, *** ******** ** *** marketing *** **** ********** ***********, *** * ***'* **** **** this ** *** ****** *** ******* against ******. **** **** **** ** bring *** ******** ******** ** ** par **** ***** ******* *** ******* the **** ** ***********. **** ****** zero ********** ***** ***** ******* ********** of ********** ********* *** ********, * don't **** ** $*** ******* **** cut **.
**** ******/***************** ******** **** *** ** ***********? That ******* ** ** ********** ** this *****.
********** *****. ** ** **********, *** has **** "***********" *** "********" ****** about ** ***. ** ******* ********* see ** ** **********'* ********** *** they ********* *** *** ********** ** paying ** **** ***** *** **********. Plus, **** ***'* **** ** **** with ***** ******.
**** ********** ** * ********, *** I ***'* **** **** **** ** the ****** *** ******* ******* ******
* ***** ***** **********'* **** ** technical ********** *** *** **** *** years. *** ***** ** *** *** mention ** *** **** *** ** worth ****** **** ****** ********** ******* ******** ***** *********** **** ** 50% **** **** **** *******:
*** ******* ** ****** ** ********** *** ********* **** **** ****** hardware, ********, ******** *** *-********, ***** will ***** *** *********** **** ** more **** *** *********.
*** **** **** ******* ** ****** products ******* ** ** **** *** there ** * *********** **** ** expansion ***** ** ******.
******* ******** ** $********. ***** *** greatest ***** ** ********** ********** ** to **** *********. ********* *** *** old, ******** *********** ******** ***** ** ADT *** *****, ***** ******** ******** and ******** *********** *** ************ ** support * ******/******* ***********, ** ********* customer ****-******** ** ***** ****** ** alarm ******* ** ******* ******. * critical **** ** *** ******** “***** proposition”, ***** ** ***** **** ** already ****, ***** **** *******. ***** often ********* *** ********* *** ******* that **** *** *** ********* ** the ********** ************** *** ****** **********. SimpliSafe ********** **** ******** **** ** the ******** ***** ** * *********** third-party ********** **** **** ** ******* to **** ** *********** *** ****** issues **** ***** ********** *** ****** business *****. ******: *** *****; ******* Services *****
*** *** ***** *'* ****** ** in ******* ** **** ***** * direct ********** ** *** ****-**-***-******, ****** of **** ***** **** **** ***** on. **********, *******, ***** *******, **********, etc. *** **** **** ** **** have ****** ******* *******. * ***** be ******** ** ***** **** **** home **********, *** ****'* ** ******* who **** * *** ** ***** cameras *** ***'* **** (*** ****) issues **** ****. *** *** *****, the ******* ** ****, *** ****'** usually *********. *** ***** * *****'* had *** *****-****** ********** **** *** subscription/ **** ********** ******, ***** *'* off ****.