nest (1)
TRANSCRIPT
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Menglu Huang
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Sample product
Nest Learning ThermostatIt learns from “you” to help save your electric billNest App: Control your thermostat miles awayEnergy Savings
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Financials
Founding rounds(3) $80 million
Acquired by google for $3.2 billion
Estimated annual revenue $300million
Funding Rounds (3) - $80M
acquired by google for $3.2 million
In 2014, Google (GOOG) acquired Nest Labs Inc. for a price of $3.2million.
Nest’s current sales volume is estimated to be about 100,000 thermostats per month
With a price tag of $250 per thermostat, Google is making around $300 million in annual revenues through Nest’s smart home thermostat.
Nest Labs recently announced plans to buy Dropcam for a price of $550 million. This will add home monitoring and cloud storage for video recording together with other Nest products to provide a complete package.According to a report from GigaOm, Nest is now shipping 40,000 to 50,000 Learning Thermostats every month — and if Nest
continues growing at this rate, it would be selling around one million thermostats per year. That's pretty impressive for a product
that's a bit of a luxury — most houses probably don't have $250 thermostats, after all. It's worth noting that this is shipments, not
sales, but GigaOm's source says that they track closely.
While the lawsuit was a bit of bad news for the company, there are also a lot of reasons for Nest's good fortune. Last year the
Learning Thermostat became available in Apple's online store as well as in Canada, a software update expanded its functionality,
and a slimmed-down new model hit store shelves. Perhaps thanks to all this good fortune, GigaOm is also reporting that the
company has received another $80 million in funding after the company received a post-money valuation of $800 million. We
reached out to Nest, but unfortunately the company was unable to confirm or deny both the funding news and the monthly sales
figures.
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History of company● Oct 2011 Founded by Tony Fadell and Matt Rogers
● Jun 2012 Nest thermostat available on Amazon
● Jan 2013 Acquired by google for $3.2 billion
● Oct 2013 Nest Protect smoke and CO alarm
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What’s hot
Smart Home- Thermostat(Nest)- Home monitoring Wi-fi video camera- wireless security sensor system- and so on
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Secret sauce
Design- Handiwork of an ex-Apple team, no less - Straightforward interface promising liberation from fiddly schedules.
Technology changes life- people used to change thermostat 1500 times/year- people want life with most comfort with least effort
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StoryComparison with traditional radiant
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CompetitionHoneywell's Lyric thermostat
Linnox iHarmony
Cadet
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Buy or Sell
Buy!
Expection growth between 2012 and 2020Smart home market : annual rate of 29.5% Annual revenue : from $4.8 billion in 2012 to $35.3 billion in 2020.
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Questions?