In a busy day for home security provider Scout Security Limited (ASX: SCT) the company has announced that it will launch the Scout camera into the home security market in Q1 of CY18 and that it has successfully raised $1.75 million to support future growth.
Scout Security co-founder and CEO, Dan Roberts, said the much-anticipated camera will provide consumers with a high- definition picture of what is going on in the home, along with the first ever DIY verified video solution.
Mr Roberts said Scout believes it is the first ever DIY home security company to offer verified video in a DIY camera plan.
The launch will see Scout offer a camera line directly for sale on the company’s website, www.scoutalarm.com, complementing the existing camera integrations Scout offers through its partnership with Google Nest.
This development of Scout’s product line will unlock additional channels of recurring revenue for the company through video cloud storage subscription plans and verified video.
Scout’s camera users can opt into verified video, which gives permission to Scout’s monitoring centre to verify an event for the police through video camera footage. A verified event, as opposed to an unverified event, from the monitoring centre will result in immediate and highly prioritised police response.
Mr Roberts said verified video also reduces false alarms which minimises cost for customers, Scout, the Company’s professional monitoring centre and local police departments.
“It was important to us that we struck a balance between giving users that high-definition visual and having complete control over privacy,” Mr Roberts said.
“The Scout camera line is completely customisable – as are all of the Scout devices – so that consumers decide when a camera is recording and when it’s not. Focusing on privacy and building that trust with our users is critical.
“We are very excited about verified video events as this service has not been available to DIY security customers historically. It will have a meaningful impact on the costs incurred by our local municipalities by eliminating false alarm situations.
“In addition to the value the camera line brings to our users, it also creates great value for the Scout business. Video cloud storage is a critical component of camera ownership. By providing this valuable service, we will boost the Company’s recurring revenue, while increasing ARPU for existing service subscribers that opt for video cloud storage service plans.”
Capital raising
The $1.75 million raised by Scout via an oversubscribed placement will support investment in the company’s hardware, which Mr Roberts said is the vehicle to deliver the Company’s powerful software and services platform into the connected home.
“This will primarily expedite the inclusion of a HD camera into Scout’s home security product suite. Full details on this new product launch are available in a separate ASX announcement released to the market today.”