Scout Security sees growth in US sales, expands partnership with Lumen Technologies
Scout’s first US internet service provider Windstream added 500 new monthly customers to its database in the December quarter.
US sales of Scout Security’s (ASX: SCT) white labelled telco home security solution continued to increase over the three months to December 2022.
Meanwhile the company’s first US internet service provider Windstream added 500 new monthly customers to its database as it develops an e-commerce solution for launch later this year.
Scout chief executive officer Ryan McCall talked about ambitious goals for the year ahead, expecting further growth in sales through telco and white label partners.
“Our pipeline of potential new white label customers is larger than ever and we continue to build essential partnerships while looking at all avenues to further increase the speed at which our revenue grows,” he said.
“Smart security is one of the most compelling extensions of the telco core, and based on the success with our first US partners, we have good reason to hold a positive outlook for growth in the year ahead.”
Lumen partnership
During the period, Scout advanced its partnership with US telco Lumen Technologies, which constitutes the largest expansion in the company’s white label partner group to date.
The parties mutually agreed on an expanded scope of work in December which will yield an additional $76,000 in revenue to Scout.
Scout expects to launch a smart security and control platform under Lumen’s brand in the first half of this year, with recurring revenues to follow.
Lumen represents the largest addressable subscriber base of any Scout telco channel partner to date.
Scout’s aims to penetrate 10% of Lumen’s 5 million subscriber base and 10% of new monthly subscribers.
Amazon online launch
In October, Scout announced it would work with shareholder and long-time partner Amazon to launch online sales of its home security platform into Australia.
Wireless indoor and outdoor high-definition cameras began selling on Amazon’s Australian marketplace at $59.99 each with one month of free video cloud storage.
Pricing for 14-day cloud access was set at $5 per month, with revenue flowing to Scout.
Scout remains in discussions with Australian ISPs and value-added resellers to introduce its security-as-a-service platform to Australian customers.
Cash inflows
Scout posted quarterly cash inflows from operations of $301,000 alongside a total revenue of $498,000, generated primarily from monthly service and white label development fees.
Monthly recurring revenues of $278,000 represented an increase of 10% compared to the previous corresponding period, while annual recurring revenues hit $1.1 million.
In December, Scout raised $1.38 million (before costs) from a rights issue to support working capital needs as it continues to scale-up its home security platform rollout.
At year end, the company held cash at bank of $648,000, with cash on hand increasing by approximately $164,000 over the prior quarter.