— a provider of cloud-based services for remote control, home automation, and monitoring — has achieved consistently strong quarterly revenue growth since it went public in 2015. Growth attained by other security companies, which are increasingly offering connected security systems as well as home automation services, has largely mirrored's upward trajectory. 

In our view,'s growth helps measure the overall health of the professionally installed North American smart home market. This is because the firm's software is provided to a wide net of dealers, and, after its acquisition of Icontrol's Connect platform, it will soon offer services to the majority of subscribers in the North American market.

Context offers connected home security/automation hardware and software systems to more than 6,000 third-party authorized dealers. This means the system is sold, installed, and monitored by a network of dealers, many of which are listed as home security companies. In some cases, the system can be branded for the dealer. For example, Protection 1 is an authorized dealer that sells, installs, and manages the smart home solution; its app and some hardware are Protection 1-branded. 

Key company metrics from include:

  • 2.6 million subscribers as of December 31, 2015
  • 6,000 third-party authorized dealers
  • $208 million in revenue generated in 2015 Quarterly RevenueBI Intelligence

Since in its initial public offering (IPO), has seen strong year-over-year (YoY) revenue growth, averaging approximately 25% per quarter. This growth was driven largely by its SaaS and license offering, also referred to as subscription revenue, which accounted for 67% of total revenue in 2015. Authorized dealers collect fees from the end user and then pay a fee for using the platform, which manages. Subscription renewals for the service remain consistently high. The renewal rate is measured on a 12-month basis, but notes that its dealers typically have three- to five-year contracts.

<img src="" border="0" alt=" Subscriber Renewal Rate " style="color: #000000;" srcset=" 160w, 320w, [...]