Verkada Competitive Strategy

By John Honovich, Published Jun 28, 2022, 11:40am EDT (Research)

*** ******* "**********," ** *** *******'* employees **** ** ***** ** **, has ********* *** ******** ******** ****** in **** **** *** *** ****. Verkada *** * ****** *********** ********.

IPVM Image

** **** ******, ** ******* **** makes ******* ******, *** ** ** poised ** **** ****** *** ** the ******* ********* ** *** ****** market, *** *** *********, *** ***** risks. ** ******** **** ** *********** of *** ** *&* *** *** acquisition ** *** ***** *** *** company.

**** ** *** ***** ** *** series ** *********** ******** *******, **** see**** *********** **************** *** *********** *************** ********* ********** ** ******-**-***** *******.

From ****** ** *******

******* ********* *** ****** ******** **** physical ********, ********* ******* *********** ****** **** ******** **** **** is ****** *** ****** ** * Stanford ******** ******** ***** ***** ********** was *** ********** ********* ******-********** ******** startup**********.

*******, ******* ******* *** ***** ** Meraki, ************'* ********* ********, **** ************ *** ** * **** *** founded ****** *** ***** *** ***** of ******* ********** **** ******* ** a *******.

IPVM Image

***** ****** (******** ** ***** *** $*.* ******* in ******* *** ***** ******** ** ****** revenue), *** * **-******** *****, **** two ** **** ***** ********* (*** **** *******), ******* ******* / ******** ** a ******* ********.

*** *** ** ********** *** ****** model ** ********** **** ******* ** doing. ****** ********* ** ********** ** normalizing *** ***** ** ****** ******** and **** ***** ******** ** *** a ******** ************ ** **** *** hardware ** *******. ** ****** ** Meraki *** ******** **** ***** ** Verkada ******* ******* ** **** *** faster **** *** ** *** **** era ****** ********.

Athletes ***** + ****** ** *****

******** ** *** ****** *****, ******* combines * *********** ******** **** ** other ******** **: ** **-**** *******-***-******* sales ******* **********-**-***** ***** ************.

IPVM Image

********* ***** *** ** ********** *********. Verkada *********** ****** ** *** ***** team's **** ** ******** ******** ****** knowledge. **** ***** ** *********** ******* selling * ******-**-***** *******.

******** ******* *** ******* ***** **** to ****. **** ******* ******** ****** aside, *** ******* ***** **** ***** not ****** *** ******* / **** trials ******** *****, ***** ******* ** Axis ******* ******** ********* ******* (******* storage, ********** ** *****, ***.). ** contrast, *** ******* ***** **** *** use *** ****-******** ******* ******* **** are ********* **** *** ***-**** *** plug ** *** ****** *** **** a ** ****.

******* ******* **** *** ***** ***** domain ** ********* ********* ** *** sales ******, ** *** ******** (*** this ******) **** *********** **** *** hypercompetitive *** **********. ***** ***** ***** teams *** ********* ************ *******, *******'* can **** ******** ** ***** ***** (recall*******'* ***** **** **** ** ***** "money ** **********".)

***** ** ******** *** ****** ** these ******* *** *** ***** ** customers, **** ** ******* * ***** advantage ** *******, *** **** *** helped ******* *************** *** *********** ******** integrator *** ******* **** ***-***** ******* to *** ****** (*.*., ****** ******* ***** ****** ***** ***).

*** **** **** *********** *** ********** been ********** **** ** ******** ******-**-*****, no *** ** ********* ********** ** match *******'* ***********, ******** **** ** have **** ****** ******* *** ** themselves.

Horizontal *********

******* *** ***** **** *** ********** of ******-**-***** ***** ************ ** ********* horizontally. **** **** **** ***** ************, establishing******* ** * *******, *** **** **** **** ******* by ******* **** ***** ******** ******* systems, ********* ****** *******, *******, ***** monitoring, ***** **********, ***.

IPVM Image

**** ** ******* ********* *********** ********* of *******, *** ********* ***** ** broad ** * ********* ** ******* in ******** ******** *** **** **** them ** ******* ********** *** ** tightly ******* **** ***** ***********.

**** ****** ******* ** ******** *** more ******* *** ******* **** ***** competitors, *.*., *** *** ******** -******* $*+ ******* ****-**** *** ***** North ******** ****** ****** ********** ***** ******* ******* *** * of ***** ********** ** ******* *******.

Business ***** ********

*** ** **** ******* * ******** business *****, ********* **** ******* ***** hardware, ************ ******** *** ********* ************ customers ** ***-*** *, *, *** even ** ***** ** *******.

*** ***** ***** ******** *** *********** SaaS ***** (*.*., ***** ***** ***) versus *** **** **** ******* ******* is **********:

IPVM Image

********, ******* ** ****** **** ***** off *** ******** *****. ** ******** to*****'* ****** ******** *****, ***** ***** ** ****** ***** on ********, ** ******** *******'* ******** gross ******* ** ** ****** (** the ***** ** ~**%).

*******, *** *****-**** ***-**** ************* *** great *** ******. **** **** ********* (especially ***** **** **** ******** **** and *** **** ** * **** subscriptions) **** ***** **** **** ******. However, ** ****** ***** ******* ** hardware ** ***** *** ****** ** many ****'* ************* ** *****, ******* is ** * ********** ****** **** position.

Revenue *** **********

*** ********** ******* *** ****** ******* Verkada **** ******* *** ****** *** $200+ ******* **** ******* *** ***% year-over-year ****** (*** *******).

** ****, ** ******* ******* *** a ********** *********** ** ***** $*+ billion ** ****** ******* *** ******* still ** * **% ****** ****, making ** *** ** *** ********'* largest ***********. *** * ***** ** scale, **** **** *** ********'* ******** businesses *** ** *** $* ** $1.5 ******* ***** (******* ******* ********** *** ****** ********).

Risks *** *******

***** ** *** *******, ** ***** on * ****** ********* *****, ***** Verkada, ** *** *********** ***** ****-**** for *** *******.

(*) ****** ** ****** *********: *** many ********* *** ***** ****** *** Verkada's ****** ***** ** ***** **** respond ********** ** *** ***** ******** tactics ** ******* *** **** ** little ***** **** **** *** *******? We ** *** **** *** ****** to ****. *** ******* **** ** that *******'* ***** ******* ** ****** out ***** ** ******* ***** ** strain / *********** *******. ***** *** only ** **** ******** ******** ****** in *** ***** *** ******* *** likely ********* **** ** ****, ******* exaggeration, ** ***** * ***** ***** in *** **** *** *****. *******:"********, ****, *** **********" - ******* Sales ********* *** ********* ********** ***** *** ***** **** around, ** **** ******* ** ***** burn ***** ******* **** ******* **** worsen?

IPVM Image

(*) ****** ** *********** ****: *** a ******* ****** *******, ******* ***** heavily ******* *** ***** ****, **** in ******* *** ************** ** *** engineering ****. *** *******, ******** ***** ~50% ** *******'* ***** ********* *** in ***** *** ****** ** *** number **** ** ** ***********.

***** *** ******* *********** **** *** accomplished * *** **** **** *** resources, **** ********** *******.

(*) ******* *********** *** *******: ******* Verkada ** ** ** **** ********* product ******** **** **** *** *********, it ** ********** **** ******* **** generally ** ******** ** **** ******** segment. *** *******, **** ** *****, Verkada's **** ****** ******* ****, *** range, *** ******* ** ******** **** Axis *** ******** ***** *** *** superior ** *******. ** ******, ******* aims ** *** ** **** ** use *** ***** *********** *** **** customers ***** **** ***** ****-**-***** ********** products *** ******* ** ** * long-term *********** ************ **** **** *****, yet *******, ******* ********.

(*) ******* / ***** *****: *******'* hard-charging ******* *** *** ******* ** risk (*.*.,*******'* ** ****** **** **** ************* "******* **** ***... **** ***** been *********** ** *******" *** *******'**** ** *** *** ***** ******* implored *** ***** *********** *** ** ******* ** "**** risk **********" *** ** "*** ** get ** '***'").

**** ******** ***** ******* **** ******* and ****** *** ** ** **** can ****** ***** ******** *** *********. In *** **** ****, ******* *** operated **** ******* ********** (********** ********, to ***** *********) *** *** **** navigate **** **** **** ** *******.

(*) ******* / ******-** *********: ** expect ******* ********* *** ********** ** the ******* ***** (******* ** ******* **********'* **** ******** company), **** **** *******'* *** *********. At *****, ******* ** *** **** button: *** *********** ***** ******* ***, sends *** *****, **** *******, ****** you ******, **** *****, ***. *** problems **** **** ** ********* ******* the *********** **** ******* **** **** under *** *** ****** **** ** trying ** ****** *** ** *******. Even ** ****** *** ******* ** the ***** ****, **** ****** **** not ***** *** ****, ***** ***** so ***** **** **** **** *** (e.g., *** *** **** **** **** a ******** * ******, * **** ago, ***.?) *******, ** **** **** on *** *** ******** **** **, it **** ** ****** ** ****** and ***** *** ***** ***** ****** into *******.

** ******, *** **** ** * problem **** ******* ** *********, *** what ******* ***** ** ** ******** it ** * ****** ** **** (though ******* *** ***** **** **********, to ****, ** ******** ***** ******* to ** ********** **** *** ***** systems, ******* *** ***************).

IPO ** *&*

******* ********* **** ********* ***** ** impending *** *** ** ******* *** company ** ********* ********** ** ******** that ******. **** *** ******* ***** IPO, ** ** ****, ******* ** be ****. ****'* ********* ****** *** tough ******* *** ***** (*.*., ******* went ****** **** **** *** *** stock ** **** **% ** *** past ****) **** * *****-**** ******* unlikely. *******, ** ****** **** ***** revenue *** ****** **** ***** ** relatively ********** *** ***** ****** (*** completely ********** ** *** ****-**** *******, and **** ****** ** ********* **** Evolv *** *****).

*******, ** ***** ******* ***** ** far **** ******* ** ** ******** (or ** *.*., ********* **** *** plan ** *** *** *** ** as * *** ** ******** ********/******** to ** ******** ****** *******). ***** public ************* ********* *** ******** ** companies *** ******* ****** ** ******** signs ** ***** **** ** ****** the ********** ******* ****** ******** ** the **** *** *****, ******** ** what ** ******** **** * ******* has ** ****** ** *** ****** on * ********* *****. ** **********, Verkada's ********** ***** ****'* ****-******* *** hostage ******* ******* ***** ** *** more ****** ** ******** ******* ******** as * ******** ****** *******. ** contrast, ******* ** * ****-******* **** could ****** ** ***** ** *** mature ******* **** * **** ************ corporate ******** ***** ** ******** **********.

Comments (11)

******* ** * ****-******* **** ***** afford ** ***** ** *** ****** Verkada

** **** **** ********? *** *** that **** ***** ** **** ** be **** ** **** ***** **** business *****? * ***** ***** *** of *** *********** ******** ********-******* ********* would ** ******* ** *** **** they *** ******* ** *** ***** shy **** **** **** *** **** the **** ** *******. ** ***** it ** ******* ******* ******* *** industry?

Agree: 1
Disagree
Informative
Unhelpful
Funny

****, ***** *** **** **** ********* out *****. *** *******, ******** ********, 4 ***** ***, **** *** ** presence ** ***** ************ *** *** this ****** ** ***** *******-******* *** them. ** ** *****, * ***'* think ******** ***** ******* ******* (********** currently, ***.) *** ***** ********* ******* to **** **, *****.

*************, ***** ***** *** ******* *** have ** ********** ******. ** ***** tech ********* ** ******* ****** *****, etc.

Agree
Disagree
Informative: 1
Unhelpful
Funny

***** *** **** ** **** ******** security ****** ** *** ***** *** Verkada *** ****** ********* **** ** them, ******* ************, ** ***** * dozen ***** ** *** **** *** years.

**** ** ******* *** * ***'* think ***** **** **** **** ****** is *********** ****** *** **** *** years - ** *** ***** ** the **** (********* *** *********) ********** to ****** *******.

******** **** ****, ****** ** *** easier - ********** **** **** ***** employees ***** ** *****. *** ***** is * ****** ****** ** ***** in *** ****.

*** **** *** **** ****** ** run ***, *********** (*********) **** *** other, ***, **** ******** *********. ***** with **% ** *** ****-******* ***** bros.

Agree: 2
Disagree
Informative
Unhelpful
Funny: 1

*** *** **** ** **** ****** by ****** ** ***** ******** ********? I ***'* **** *** ****** *** let ** **** ** *******.

**** *** **** ***** **,*** ******************:

IPVM Image

**** ****, * **** ***,*******.*** ******,*** ********* ******:

IPVM Image

*** ******** ** *** **** ********* can **** *** **?

**** ** **,***, ****'* *** * lot ** *********, **** *** ***** surveillance *********. ***** *** ******** ** thousands ** ********** *** ********** ************* (e.g.,**,***+ ****** *********, **,***+ ******* ******* in *** **).

********, ** **, ** *** **** they *** **** ** **** *******? Let's *** **************, **** **** ********* stuck **** **** ***** **,*** ********* today. *** **** ***** **** ******** to ****** ** ***** ******** ** selling **** *******, ****** ** ******, alarms, *****, ***.?

******* *** ****** ** ************ **** for *** ******** ******* *** *** next ****** + *** *** ********* sales (**** ****** ***** *** ****** other ********).

**** ** ***** *** (*** ********* revenue)? * ** ****** ********* **'* something ********** **** ***%, ***%, ***% - ***** ** *********** *, *** have ** **** ** ****** **** of ***** ******* ***** **'* *** only ******* **** ******* *** **** only ******* ***** *** ****** *******, alarms, ***., ***** ***** ************* ********* revenue.

* ***** **** ** * ******* even ** **** ***** ***** * single *** ******** (***** **************) ***** grow ** ********* ** **% *** year *** ***** ** ****.

****, ***** ************ ***** (********** * *******, ****** * ******* Salesperson) ** ****** ** *** **** cash **** *** ** ***** ****** them ** *** *********** *** **** than ***** ******.

* ***** * ****** **** *** Verkada ** ****** *** ***** ** Honeywell ** *** (*** **** *****) but ******* *** *** ****, **** are ***** ** ******* ****** ********** financial *******.

Agree
Disagree
Informative
Unhelpful
Funny

* ***** **** ** * ******* even ** **** ***** ***** * single *** ******** (***** **************) ***** grow ** ********* ** **% *** year *** ***** ** ****.

***** ******** **** ***** ** ********** / ************* ******** ****** ************? *** figure **** * ******** **** **** to *** ******** ******* **** **** will **** ** *** *** ***** suite ** ******** ******* ********?

***** * ***** **** ***** *** strategy ********* **** ******** (** ********** to *********** ******** *************) ** **** those ***** ******** ******** ** ***** 'invested' *********, **** ********** ** *** imagine **** *** *** ** ***** other ******?

**** **** *** ****** ****** ********* to **** ** ** ***** ************ products, *** **** ****** **** ********* a ******* ********* ******** ** ******* school *********?

Agree: 1
Disagree
Informative
Unhelpful
Funny

*** ****** **** * ******** **** used ** *** ******** *******

*** ***** ****** ******** **** (***-******** users *** **** ******** ******** ** be * ****), ******* ** ** excellent ******* - **** ** *******, easy ** ***, **** ** *** help, *.*.,******* ********** ******** **** ****.

**** ********** ** *** ******* **** buy *** ** ***** ***** ******?

* ***** **** *** **** * years, **** **** **% **** *** at ***** *** ***** ******* ****. It ********** **** *** **** ** there, ******* ** *** **** ****** and ** ***** ******* ******* **** work (** *** ** ****) **** their ******** ******* *******.

*** **** ****** **** ********* * weapons ********* ******** ** ******* ****** shootings?

** *********** ********. ***** ******* ** already ******* ** **** *** **** we *** **** ***** *******, ***** Verkada ******* **** ****** **** ***** have **** * *******, ***** ******** seems ** ** ******** ** ****** products **** ***** ***-**-*** ********. *** many ** ***** ***-***** **** ** pushing *** ****, ** * ** curious ** *** *** ** ***** out *** *******.

Agree
Disagree
Informative: 1
Unhelpful
Funny

** **** ** *********** ** ***** long-term. **** *** **** **** **** to **** **** *** *** ***** few ***** (** *** * ***** slate) *** *** ****** **** **** on *** **** **** **** ** tackle **** *******. ********** *** ** that **** ** ***** *** ****** the ***** ******* *******, *** **** have ** ******* ***** **-**** ******** now ** *** ******* ***** ** up ************ *** **** **** ******** as ****. **** ** *** ******** is *** ***** ** **** *** entire ****** ** **** **** **** have ****** ********** *** *** * really ***'* **** *** **** **** handle *** ***'* **** **** **** mediocre ******** ****** **** * *** of **** *************. **** ** *** top **** *********** ****** ** **** them *** * *** ****** ** how **** ** *** ******** *** out ***** **** ******* ** *** installs **** **** * *** ***** in *** ********'* *****. **** ** have ******* ***** ***** *********** ******* their ***** ** *** ** ***** to ** * ******** ** ****.

********* ******* *** ***** *** * lot ** ***** ****** ** *******. I ***** **** **** ****** *** business ********** **** *** * *** of *** ********* **** **** ***** to *** ***** **** *** ** going ** **** ** **** ** deal **** ** *** ******** *******. When **** **** ** ****** ******* there ** *** **** **** *** them *** *** ** *** **** they **** **** ** ********** **% will **** * ******** ******.

Agree: 1
Disagree
Informative: 1
Unhelpful
Funny

**** ** *** ******** ** *** going ** **** *** ****** ****** of **** **** **** **** ****** warranties ***

****'* ** *********** *****. *** ******* risk ******* ** *** ******* **-***** the ******, ***** ** ******** ** video ************.

***, ** **** *** ***** ** any **** *****-**** ******** (*.*., ******* are ********* *** * *** ****** or **** ***** * **** ** two, ****** ******* ***** ** *********** numbers). **** * ***** ***** ** a *********** **** (*.*., ******* *** its *********** ******).

***, ***** **** ***** *****, ** significant ******* ** ***** *, *, 7, *, ***. * ***'* ***** Verkada **** **** ** * *********** economic *****. ***** ********* *** ****** $199 **** *** ****** *** **** to ****** ***** **** ** ****** primarily ** *** ******, ******* **** have ****** ******* **** ****. ** year *, *** **** **** * new ****** (**** **** ***** **** their *** ********* *** ********* ** require $*** **** ** *** **), that ****** **** * **** **** for ****.

*** *** ** *** **** **** gave **** ** ********** **%

** *** **** *** **** ****** or? ***** *** *** ****** **% discounts? **'** ******** * **** ****** of ***** ****** ***** *** ***** discounts *** *** **** ******** (~**% plus ***** ***** *** ***** **** to *****).

Agree
Disagree
Informative: 1
Unhelpful
Funny

** **** *** ***** ** *** mass *****-**** ******** (*.*., ******* *** installed *** * *** ****** ** even ***** * **** ** ***, camera ******* ***** ** *********** *******

*** **'* * ***** **** *** road *** ** ***** ***** ** fail... *** ****** *** ******* *** who **** *** **?

** ******* ********* * ******* ** the *** ** ***** ***** ****** costs **** *** **********?

Agree: 1
Disagree
Informative
Unhelpful
Funny

*** **% & **% ********* *** to *** *******, *** *** **** - ** *******. *** **** ****** always *** ** ** ***** *** the ******* *** ******* *****'* *** to **** *** *****. ** **** seen **** ****** ********** ********* **** the **** * ****** ** *** range ** **-** ****** *** *** those ****** ***** ***** **** *** same ********** *** ******* ******.

** ****** ** **** ******** - we **** ****** * **** ***** partners **** *** **** ** ****** who ****** "****** ** *****" ** a ******** *** ***** ******** *** were ******* ** ******** ******* *****. All * *** ******* **** ****** their ***** ** ****** ** ******* Verkada **** **** **** ******* ** 15-20% ****** ******** ****** *** ***** 12 ****** **** ****. ******* **** sales **** ***** ** ** ***** rolls *** **** ******* *** **** were ****** **** ** *** ********. The ****** **** **** *** ***** enough ** **** * **** ********. Admittedly, * ** *** * ***** sells ******* **** ***** *** ******* to **** (**** **** ***'* **** with **) ** *'* ******* ** see ** *** ***** ******** *** them.

* **** ********** ******* ***** * partners ***** **** ****** ** ****** because **** *********** ***** ******* ******* rates ******** ** ****** *** *** many ******** ********** *** **** *** don't **** **? ** ***'* ***** aggressively ** ********* ** * **** a **** **** ******** **** ***** partners' ********** *** ******.

Agree
Disagree
Informative: 1
Unhelpful
Funny

*** **% & **% ********* *** to *** *******

*** ***** *** ******** ********* ********* when ******* ***** ********' *****? * don't *** *** ******* ***** **** massive ********* *** **** ***** ***** Verkada ********** **** ***** ** ***** own *** **** ********* **************** ************.

*** * *** ******* **** ****** their ***** ** ****** ** ******* Verkada **** **** **** ******* ** 15-20% ****** ******** ****** *** ***** 12 ****** **** ****.

****'* ***********. **'** **** **** **** more. **** *** ***** **** ********* to **** *** ***** ** *** missing **.

Agree: 1
Disagree
Informative
Unhelpful
Funny
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