Alarm.com (ALRM):Alarm.com is a significant player in the home automation security market.Alarm.com is projected to generate $728million in revenue in 2021, with gross margins in the 60’s andhas a market cap of $4.2 billion (primarily on an RMR based model). Latch and Alarm.com manufacturesimilar products in both the smart homeand home security spaces. Latch’s smart solutions for door locksincludes their Latch M, R, and C models, which all serve as smart door lock systems with multiple optionsfor entry. Alarm.com provides home monitoring/home automation devices that provide customers a rangeof solutions (access control to security monitoring). Both Alarm.com and Latch provide many of the samebenefits; but we believe there is limited overlap between the offerings. Alarm.com focuses on its singlefamily smart home operating system while Latch focuses on multifamily OS and access control solutions.ADT (ADT):ADT is the leading security alarm monitoring company and is rapidly evolving into a leadingsmart home automation company with $5.2 billion in projected 2021 revenues and a market cap of $7.6billion. ADT is known for its security offerings but is gaining traction in home automation (~ 80% of newsubscribers are getting home automation systems in addition to security). We note that ADT is in a$450mm partnership with Google to develop their own operating system. Known as a monitoringcompany, we view ADT as highly focused on monitoring and security systems in the single familyresidential and commercial markets. Latch’s focus on multifamily access control. We see little if anycompetitive overlap between ADT and Latch.Vivint (VVNT):Vivint is a leading provider in home automation and security and is projected to generate$1.5 billion in revenue during 2021 and has a market cap of $2.6 billion. Vivint is a vertically integratedhome automation company and iscreating a portfolio of subscribers that reinforces the brand and drivesa longer-lived customer. Vivint provides a closed turnkey solution to its end customers.We view Vivintas highly focused on monitoring and home automation providing the entire solution from start to finish.Latch is focused on multifamily access control, and we see little competitive overlap between Vivint andLatch.In addition to the publicly traded companies there are a dozen private companies in the multifamily,commercial, and property technology sectors that are gaining traction in the industry. We recommendinvestors that are interested in this rapidly growing industry attend our annual Security conference inNYC December 14-15, 2021.This is a great venue to meet both the leading public companies as well asthe thought leading private companies (we will have ~70 companies presenting this year in person) andobserve the tends in this rapidly changing industry firsthand. Please contact an Imperial Capitalrepresentative for details.
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