Snap One / AV IPO Filing Examined

By Haris Khurshid and Zach Segal, Published Jul 08, 2021, 12:04pm EDT

Snap One, aka Snap AV is going public, disclosing extremely high revenue for the AV / security revenue and even more ambitious plans.

IPVM Image

**** ******** *** *******'* financials, ******* *********, ****** strategy, *** *****.

******: **** *** ******** an *-*/* **** ** IPO ***** ***** *** share *****

******: **** *** ****** their ******** ** $** a ***** ******* $*** million ** **** ****.

*** ********* ******* ***’* *-*****-*/*

Executive *******

**** ***, **** ****** revenue *********** $* ******* USD, **** ** ** the '***' ******** *** integrators, ******** **** ******** and ********, ** **** as ************ *** **** AV *** ********* **** commercial *** ********.

* *** ********* *** the ******* ** *** valuable *** ******** ** they ******* / **** versus *** ************ ******** of ******* ********* **** contract ** ********** ********, such ** **** *********.

**** *** *** ******** 10 ********* ***** **** and ***** ** **** more ******* ************ ***** forward. **** **** **** on ********* **** *** verticals **** ** ******** and **********, ****** *************** (currently ** ** **% of *******), *** ******** the ****** ***** ******* integrator ******** *** ********.

**** *** ******** $*** million ** ******* ** FY **** **** *.*% organic ****** *** **.*% growth ******* ************, **** a *** **** ** $25 ******* ****** ** part ** $** ******* in ******** ********.

******: *** ******* ***** to ***** ~$*** ******* from ***** ****** ******** at * $*.* ******* valuation.

******: *** ******* ****** $250 ******* **** ***** public ******** ** * $1.3 ******* *********, ** the *** *** ** their ********.

Update: $*.* ******* *********, *.** ** **** *******

Update: $*.* ******* *********, *.** ** **** *******

**** *** ****** ***** shares **$** * ***** ** Wednesday** *** *** *** of ***** ********, ******* $250 ******* ******* *** company ** ~$*.* ******* or *.** ** **** revenue. ***** ********* ************** ** *** *******'* extremely ******* ************ *****, modest ******* ****** ****, and **** ** *************. This ** ***** **** IPVMs ******* ********** ** $2 ******* ** $* billion *****, ** ******* 2 ** * ***** its **** *******.

**** ********* ***** *** lack ** ******* ********* place ** ***** ******** sales **. ********* ******* and *** ******* **** place ** **** ******* growth.

******** **% ******* ****** in *** ** ** 2020 *** ********* ******* model *** ***** ******** is****** ***** ** **** *******.

**********, **** **% ******* growth ** *** ** FY **** *** * SaaS *****,** ****** ***** ** **** *******.

******* **** *% ****** in *** ** ** 2020 **** ** * retailer *** *** ***** consumer *********** ******** ***.** ** **** *******.

********

**** ****** ******* ** ****, (formerly ****** *** ******** Homes), ********* **** * “one-stop-shop” *** ***********. *** company **** ******** ** be ********** ** *** private ****** *********** & ********(*&*) *** ******* *,*** employees ** ** ***** 26, ****.

**** *-****** ***** **** Snap *** **** **** their ***** ***********:

********

**** *** ********* *** majority ** *** ***** from ******* ***’* ******** products ** *********** ** the **, *** **** makes * ***** ******* of ******* **** ******** sales. ******** ***** **** up **% ** ******* in ** ****, ***** software **** **** ** 3% ** *******, ******* they ** **** ***** expanding ***** ******** ******** in *** ******.

Software ***************

**** *** ****** ***** two *** ********* *** their **** *** ******** software. ***** **** ******** enables *********** ** ******** monitor, ******, ************, *** configure ********* ******* ** a ******. ***** ******* 4 ***, ******* *********** to ******* ******* ******* into *** ******, ******** a ****** ******* ****** for ***** ***-*****.

** ******* *** *********** throughout *** ****** ********* of ***** ******** **** pre-sale ******* ******** *** system ****** ** ****-************ end ******** ******* *** our *********** **** ********

**** *** *** ****** not *** *********** ****** experience ** ******** *** strength ** **** ***'* software.

Distributor *** "************"

**** *** **** ******** upfront ******* *** ******* information **** ** ****** store, ******** ** *** typical ******** ** ******* through ************, *.*., ***. As *** **** **************:

******* *** ******* (*** their ***) ***** ********** so ****** ** **** to *** **** ******.*** was *** ****** ** the ****** *****…

*** *******'* ***** *** broad ********* ****** **** to ** * ***-****-**** for *********** ****** **** time *** ****** *********. Snap ***’* ******** ** OEM ****** ********** ***** own ********, **** ***** it ****** *** **** to *** *** ******** and ****** * ***-****-**** even ** ***********' ****-******** needs ******.

**** *** ************* ******** ******** ****** them ** **** ********** orders ** **** ** provides * ***** *** in-person ******, **** ** integrator ******** *** ************ building.

**** ** ***** ******** and ***** ************ ******* (5 ** *** **, 1 ** *** **, and * ** *********), has **** ******* **** to ** * ** less *** ******** *** 99% ** ***** ******.

IPVM Image

Growth ********

***** ****-**** ****** ******** is ** ******** ******** revenue, *** *** ******** and ********* ********* ******** and **********, ********* ******* into ***** ******** *********, expand ***************, *** ******** to ****** ************.

*** ******* ****** **** OvrC *** ******** *** software ******* *** ‘********** supporting *** *******’ ** their ****** ********:

** **** ** ********** pipeline ** ****** ************* where ** *** ******** our ******** **** *** Control4 *** ******** ** create ****** ************-***** ********* that ******** ********* *******

**** *** **** **** plan ** ******* *** subscription ******** ********:

** ** ****** *** penetration ** ********* ***** and ********** ************, ** will ******** ** ****** in *** ********* ** our ******** ************-***** ******** and ** *** *********** of *** ************-***** ********.

** ******* *** ********** position *** ********* ******** in *** **** **** allow ** ** ******* new ****-******, ********* ********-****** services.

**** ****** **** ********* free-tier *****, ***** ******** OS3 ****** ** ** ~400,000 ****** ***** *** businesses, ***** ***** **** software *** ***,*** ****** homes *** ********** ** the ********. **** ***** them * ***** **** to **** **** **** tier, **** **** ******* subscriptions.

***** **** ** *** mention ******, **** ****** them ** ******* ***** up ******** ******* **** do *** **** ** develop ******** *** **** find ********. **** ************ mention *** ******** *** commercial ******* ** “**********” verticals **** **** ** targeting.

************ *** **** * big **** ** ***** strategy ****** *******, *** apart **** *** ** acquisitions **** ***** ****, they *** ******** ** continue ********* **** *** of ***** ****** ********:

*** *********** *********** ******** is **** ** *** growth, **** **** ************ complementing *** ******* ***** and ********* *** ********** coverage. **** *** **** five *****, ** **** successfully ********* *** ********** more **** *** ************ targeting *** ******** *** geographies *** ********* *** workflow *********. ** **** continue ** ****** ****** acquisitions **** *********** ******* our ********, ******** *** workflow ********* *** ****** into ******** ******* **** allow ** ** ***** our ********** ****.

*** ******* **** ********* international *********, ******** ********* on *******-******** *******, ***** would ******** ***** ***** addressable ******, *** **** brings *** *** ********** such ** ******** *** markets, ************ *** ************* with ********* ********* ** well ** ****** * physical ********.

*** ************* ****** ******** is ******* ** ********* primarily ** ******** *********** English-speaking *******, ***** ***** include ******, *** *.*., Australia *** *** *******. We **** ** **** in ***** ******* ** investing ** ***** *********, broadening *** ********* ******* portfolio, *** ************* *** direct-to-integrator ***** ********.

**********

**** **********

**** *** ******* ******* grew *.*%, ***** ******* were ****, ********* ****** increased * ******, ********* cash ***** **** $** million, *** *** **** improved *** ** ** 2020.

  • ** **** ******* *** $814 *******, ** **% from $*** ******* ** FY ****. *******, ******* revenue ******, **** ******* from ************ ********, **** increased *.*% ****** *** overall ****** ******* ** 38%.

    IPVM Image

***** *** ******* ******** that *****-** ******** ****** in **** ** ****, they **** ***** **** their ****** *** “***** well“ ******* *** ********:

*** ********* **** ****** has ***** **** ********** the *****-** ********, ** market **** ********* **** there *** **** ** increase ** *** ********** of ********** ****** ***** spent ** ****-******* ***** and ******** ** **** of *** ******* ********** has **** ******* ** home.

  • ***** ****** ********* *.* points ** **.*% ** FY **** **** ** 2019 ***** ****** ** 39.9%.
  • ********* ****** ******** * points ** *% ** FY **** **** ** 2019 ********* ****** ** 4%. **** *** ** part ********** ** *** decreased ****** *** ************* expenses *** ******* ***** marketing *** ** *****-** and ***** *********** ***** associated **** ************ ** FY **** **. ** 2019.
  • **&* ********* ** *.*% of ******* ** ** 2020, ** **.*% ** revenue **** **.*% ** FY ****. **** ** not ***** ***** *** SG&A **** *** ******* components *** ** ** attribute *** *********** ** a ******** ******, *** the ******* **** ***** some *******:
    • *&* *** *.*% ** revenue ** ** **** and *% ** ** 2019.
    • ******** *** ******** ***** were ~*% ** ******* in **** ****** *****.
    • *********** **** *** *.*% of ******* ** ** 2020, **** * ***** from ** **** **** they **** *.*% ** revenue.
  • *** **** ******** ** $9 ******* ** * loss ** $** ******* in ** ****, ******** to * **** ** $34 ******* ** ****, driven ****** ** ******** gross ******* *** ***** operating ********. **** ** mostly ********** ** * further ******** ** *** company's ******** *******, ***** increased **** -$** ******* in ** **** ** -$45 ******* ** ** 2020.
  • ********* **** ***** **** $64 ******* ** ** 2020, * $** ******* increase **** **** **** they *** * ******** operating **** **** ** -$4 *******. **** *** largely ************ ** ***-**** items *** *** ******* trying ** ******* ***** working *******. ** ******** some ******* ****, **** was ******* ****** ** an ******** ** +$** million ** ******** *******, an ******** ** +$** million ** ************ *** amortization, *** *********** ******* positive *** ****, **** -$9 ******* ** ** the *** ** **** to $* ******* (** increase ** ~$** *******).

****, **** ***’* ****** year **** ** *** last ****** ** ********; December **** ** **** and ******** **** ** 2019.

IPVM Image

** **** **********

**** *** ******* **** 27% ** ** ****, gross ******* ******** ****, operating ****** ********* * points, ********* **** ***** decreased ** $** *******, and *** **** ********.

  • ** **** ******* *** $220 *******, ** **% from $*** ******* ** Q1 ****.**% ** **** ******** was ********** ** ** increase ** ***** ** sales, ***** **** ** 25% ***, ***** *** remaining **% **** **** international ***** ***** **** up **% ***.
    • **** ******** ** ***** was********* ********** ** *** increased ******, ****** **** lower ***** ** ***** of **** **** *** to *** ******** ****** of *** *****-** ********.
    • **** ******* ****** **** includes ********* ****** ******* acquisitions, ***** **** *** does *** ******. *** based ** *** ******** price ** $** ******* and *** **** **** they ******** **** ***-**, it ****** **** *** seem ** **** * large ****** ** *******.
  • ***** ******* **** **.*% in ** ****, **** YoY
  • ********* ****** ******** ** 4% ** *% ** Q1 **** **** *% in ** ****. ** part *** ** **&* expenses ******* ****** **** revenue.
  • *** **** ******** ** $13 ******* ** * loss ** $* ******* in ** ****, **** a **** ** $** million ** ** ****.
  • ********* **** **** ******** by $** *******, ***** from -$** ******* ** Q1 **** ** -$** million ** ** ****. This ****** ** **** attributable ** ******* ** working *******, ***** ***** inventories **** **** $* million ** ** **** to -$** ******* ** Q1 ****.

****, **** ***’* ****** year **** ** *** last ****** ** ********, and ***** ***’* ** ended ** ***** ** and ***** ** ** 2021 *** **** ************.

IPVM Image

High **** *** ******** ********

** ** ***** ****, 2021, *** ******* *** $671 ******* ** **** and ************ ***** **** due ** ***** **** level ** **** ****’** be ********** * ‘*********** portion ** **** **** from ********** ** *** payment ** ********* *** interest ** **** ****. This ***** ** **** potentially ****** ***** ******* to *** ****** **** flows ** **** ***** operations, ******* ************, ** a ********* ** ***** future ******** *************, ********* acquisitions.

******** ******** ** $**.* million *** $**.* ******* in ** **** *** FY **** ************, **** the ******* **** ***** profitable ** **** ** the **** *** *****.

**** *** ***** ** use ******** ** *** ~$270 ******* **** ****** from **** *** ** pay **** ***** ****, and ***** **** ** a ****** ******** *** some ***** **** ** decide ** ** ******. A **** ** ****** vision *** *** ******* having ** ********** ****** story ** ****, ***** us ****.

** ****** ** *** a ******* ** *** net ******** ******** ** us **** **** ******** to ***** * ******* of *** **** **** outstanding ***** *** ****** Agreement, **** ******* ******** among ***** ********* ********.

Target **-**-***-** ******

**** *** ******* *** do-it-for-me (“****”) ****** ***** customers *** *********** *** installation ****** ***, ***** more ***** ** ******-*** products, *** **** ******* expectations. *** ******* **** consumers ***** “$**,*** ** $20,000” *** *******, ** opposed ** ****** $**-$*** DIY ******** ******* ** lower-end *** **** **** Hikua ** ******* ********* available *** ****** $***.

**** *** **** **** these ********* **** **** complicated ********, ****** *******, and ****** ************:

********* **** ****** ************, more *********** ********, ****** disposable ******, *** ******* use ** *************, *********** and ******* ********* ** other ***** ** ***** lives

********* *** ******-***/**** *****-********* position ** *** ******** market *** **** **** avoid ***** *********** ***** is ********* *** **** One ******* ** ** OEM, **** ** *** products **** **** *** available *** ***** ****** directly **** *** ************. It **** ***** **** them ***** *** ***** competition ** *** *** space ***** **** ****** like ****** *** ******, start-ups **** **** *** Arlo, *** *********** *************, are *** ********* **** low-margin ********.

Acquisitions **********

**** *** ******* ****** over ** ************ ***** 2015 “**** ** ********* value” ** **** $*** million ********* * ** 2019 *** * **** far ** ****.

**** ************** ******** (****) ****** ************’******* *** $** ******* in ****. ****, ** enterprise-grade ********** ********* ******** offering ******* ******, *************, monitoring *** ******* ******** and *********** *********** $** ******* ** enhance ***** “********** ********* for *********** *** ********** networks”.*** ************’*, * ***** ************ store, ****** **** ******** for $*.* *******.

** ****, **** *** acquired********* ***************,****** **** ************, ********************** *** $***.* *******. Snap ********************** $*** ******* *** of **** ** $** million, “** ****** *** Company’s ******* *********”. *** deal *** ****** **** debt *** **** * contribution **** *&*.**** ******************** ***************, * *** ******* based *********** ** *********** equipment ** **** ********** for $*.* *******, *** of **** ** $***,***, “to ****** *** *******’* retail ********”. **** *********** ****** **** ************, * **** *****-***** distributor ** *****-****** ********* to **** ********** *** $12.5 *******, *** ** cash ** $***,***, “** expand *** *******’* ****** presence”.

**** *** ***** ***-********* caused ** ************, *** is ******* ** * PE **** ***** *** experience ********* *** ******** companies. ** ************ *** not ********** ****, **** could ***** ***** *** inefficiency. *** *********** ** partners/distributors **** ********* ******** channel ************* *** *** threaten *** ******** **** customers ***** ******** ********** possess. **** *** ***** they ********* ** ********** *** operations *** ********* ** retain *** *** ********* or ********* ** *** acquired ******* ** ********.

OEMing ***** *** ********** ** ***********

**** ***’* ******* ** switch ************* ****** **** to ******** *** ****** of *********** **** ******. ***** **** *** is * ***** ********* OEM, **** **** ****************** * ****** **** ********* ******* they *** **** ******, which **** ********** **** regulation *** *********** ******.

**** ***’* ******** *** business ***** ***** **** the *********** ** *** relying ** * ****** manufacturer, ** *** *********** legislation ****** ******* *** one ** ***** ************* or ***** *******-******** ********, they ***** **** ******* manufacturer.

Verkada **********/***** ** ******

***** ******* ******** ***** technology **-***** ******* ** OEMing ** **** *** does, **** **** *** Verkada's ********* ** ***** sales ********, *** **********.

*******, ****** **** ** its ***********, ***** ****** to ********* *** ***** pricing **-*****, ****** ***** products ********** ****** ** buy. *********, **** *** sells ***** ******** ** a *********** ******** ****** integrator’s ***** ******.

***********

**** *** **** ***** market ** “****** *********** “, ***** ************ ******** DIY ********* ***** ******* with ****, *** **** ADT *** ****** *** expanding ** *** *** space. *** ******* **** notes *** ****** ***** similar ******** **** ***** take ****** ***** **** them:

* ****** ** ********** companies, ********* ******** ******* such ** ******, *****, Google, *********, ****** *** Samsung, ***** ******* **** capabilities ******* ** **** of *** ******** *** services *** *** ******* in ******* *********** ******* to ******* **** ******* segments ** ******* *******, including *** **** ************** installed *********** *******.

**** *** **** ****** and *** *** ********* their ***** **** ******** to ***** ******** ******** customer ****:

****** *** *** **** made *********** ******* ** market ***** **** ******** that *********** ***** *********’ traditional ******** *********. ***** managed ******* ********* **** the ********* ** ********** their ******** ******** ****, network ** ************ *** support *********** *** **** recognition ** **** ******** in *** **** *******. In ********, *** ********* may ****** *** ******* service *** **** ****** to ** ******* **** offered ** **** ** these ******* ******* ********* over * ****** ******* cost **** ****** ** no ******* ******* ****.

***** **** *** *** not ***** ** ***** risks ** ** *** from **** ****** ***********, they **** *********** **** the ****** **** ***, other ****, *** ************. Because **** *** ******* OEM’s ***** ********, *********** could ******** ******** **** the ************ *** * discounted *****. ***, ****’* Hikvision ******************** **+ ********* ***** the ***** ******************** **+, ********** *** many ******** ***** ****** contains.

**** **** **** *********** from ***** **** *** distributors *** ********* ***** a ******* ** ********.***, *******’* ******* ***********, offers ******* ******** ** integrators **** ***+ ******** in *** ** *** made~********* ** ** **** as **** ***, ******* has * **** ********* over ****, ******** **** slower ******.

Vote / ****

Comments (6)

* *** ********* ** the ****** *******. * believe *** ******* * purchase *** * **** move ** **** *** struggled ** **** * control ****** *** ***** with **.

*** **** ** ****** but ***** * ****** lacking ********* ** *** product. * ******** ******* one ** ***** ********* cameras **** **** ** had ******* *** ****. That *** ****** *************. The **** ***** **** can ** ** **** away **** ********* ** their ******* ** ** wasn't **** **** *** the **** ****'* * value-add **** **** *** price ***** **.

* ****'* ******* **** were ****** ** ******. I'm *** **** *** that ** * ****** move. ****'* **** **** the ********* **? *** low *** *** **?

**** ** ***** **** products *** ****** *** often ***** * *** get ****** ******** ******** at * ******* ***** or *****. * ***** take ** **** ****'* any ***.

*******, * **** * lot ** **** **** offers, *** *'* ***** far **** **** **** being * ***-**** *********** for **.

Agree: 2
Disagree
Informative
Unhelpful
Funny

*********** ******** *******

* **** ****** ****** up ** ****

***** ********** *** ******* to ***** ******

***** ** ** **** popular

* *** ***** ***** on ******** ******* ** very ********

* ***** **** **** are ***** ** ******** to **** ********

**** **** **** * really ***** ******* **** good **********

* **** **** **** in ***** ***

Agree
Disagree
Informative
Unhelpful
Funny

*****, ****** *** *** feedback! ** *** *** a *** ** **** being ****/******* ** ***? How / **** **** it ****** ******* ****?

Agree
Disagree
Informative
Unhelpful
Funny

**** **** * ********* in ***

***** ****** ********** ******* do ****** *******

** **** ********* ******** but ****** **** ** do ****** **** **** integrators

**** *** ********** ****** to **** ***** ** the ******** *****

**** ** ** *** making ***** ** *** AV *****

*** *** ******* ******* of * ******* *********** that ***** ** ******** revenue ****** ***** ******** customer **** ** ********* their *****

Agree
Disagree
Informative
Unhelpful
Funny

** **** ******* *** report ** ******* *********** from ***** ****-*/*:

*** ******* ***** ** raise ~$*** ******* **** their ****** ******** ** a $*.* ******* ********* which ****** **** ** 1.7X ** **** *******. Snap *** ***** ** using *** ******** ** this ******** ** *** off ****.

Agree
Disagree
Informative
Unhelpful
Funny

**** *** ***** ***** at $** *** *****, dropping ******* ****** *** day:

IPVM Image

Agree
Disagree
Informative
Unhelpful
Funny
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