- Scout Security (SCT) increases its addressable market by 30 per cent through sales of its Kinetic-branded home security product via US partner Windstream
- Windstream, an internet service provider, has started selling Kinetic products to existing customers with lower-bandwidth internet connections
- The company says this sales channel will have an immediate impact on recurring services revenue, with annualised recurring revenue now at $1.1 million
- Scout says the program expansion follows months of user testing and positive customer feedback
- SCT shares closed at three cents on Wednesday afternoon
Scout Security (SCT) has increased its addressable market by 30 per cent through sales of its Kinetic-branded home security product via US partner Windstream.
SCTs partner Windstream has begun selling Kinetic products to existing customers with bandwidth internet connections as low as 10 megabits per second (Mbps).
Scout said the program expansion followed months of user testing and positive customer feedback. The new sales channel is expected to have an immediate impact on Scout’s recurring services revenue, with annualised recurring revenue now at $1.1 million
However, according to SCT, the potential for revenue growth will depend on what level of market penetration and conversion sales its teams can achieve.
Up until recently, SCT had a max customer conversation rate of 10 per cent — and an average of 6 per cent — through phone sales to new customers.
Yet, Scout said even if the new Windstream sales channel only reached a conversion rate of one per cent, it would still more than double the company’s recurring revenue over time. The average Windstream conversation rate has been 6 per cent.
Meanwhile, eCommerce sales of the Scout-powered home security solution to existing Windstream customers will commence in May 2023.
SCT has more than 1.1 million broadband customers living in 18 US states and more than 1.4 million premises with access to Windstream and Scout fibre services.
SCT shares closed at three cents on Wednesday afternoon.