Sydney, Dec 5, 2017 AEST (ABN Newswire) - Scout Security Limited (
ASX:SCT) is at the forefront of the DIY home security industry, having developed both wireless home security hardware and a software/service platform. Since listing on the ASX earlier this year, the company has enjoyed considerable success, as outlined below.
- Raised $5 million via an IPO in August 2017.
- Amazon, through its Alexia fund, is a top-10 shareholder and major distribution partner.
- Has established numerous distribution partnerships to promote Scout's suite of home security devices across a range of industries, most recently with Hanover Insurance, a top-25 insurer in the US.
- Zego (previously CasaIQ), a smart-apartment provider, has pre-ordered 1,075 units and expects to order 10,000 additional units next year.
- Scouts software platform is compatible with a range leading global Smart Home brands, including, Amazon Alexa, Google Home, Nest, Samsung SmartThings, IFTTT and Phillips Hue.
Analyst comment: globally, the home security industry is worth an estimated $70 billion per annum, with consumers in the US - Scout's initial target market - spending around $23 billion of that. Only 20% of US citizens currently have home security, meaning there is plenty of room for growth, particularly among the 37% of the population who rent their homes.
The 'Internet of Things' (which includes smart-home systems) is disrupting the multi-billion dollar home security industry worldwide, with DIY security options both integrating with and serving as a replacement for legacy systems. Given that DIY options are as reliable as their traditional hardwired counterparts, but are easier to set up and use and, importantly, more affordable, they appeal to a much larger audience (including millions of US renters and lower-income earners).
Scout, which offers both hardware and software solutions, has established a strong presence in this growing market. Further, the company has ensured market awareness and supply of its products by establishing distribution agreements across a range of industries, including with Amazon (which is also a major shareholder), which we feel presages a significant increase in sales moving forward.
Whilst we believe hardware is a profitable business in its own right, we see sales of Scout's hardware product as a gateway to increase the company's subscribers to its software platform and services -as this is a significantly more profitable business unit.
Scout has bolstered this strategy by designing its software for compatibility with leading smart-home devices, meaning that, no matter which device a consumer chooses, there is a strong probability that the consumer can control Scout's security platform with it.
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About Scout Security Ltd
In February of 2013, Scout Security Ltd (ASX:SCT) launched an independent crowdfunding campaign to pre-sell its devices. Within 30 days, Scout exceeded its goal. Since then, over $500,000 worth of systems have been sold. Scout was possible because of people like you - backers who shared a common problem and common vision. Our customers gave this company its start and their needs are what drive our company daily.
Scout's mission is to create a home security system that is smart, simple and affordable. It sounds deceptively easy. But, with thousands of connected home devices popping up each year, deciding what devices should go in your home is complicated. Not anymore. As a customer of Scout, you're going to get a thoughtful, curated home security experience from end-to-end. No nonsense, just a modern home security system for a modern home.
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