Nest (1)
-
Upload
huang-menglu -
Category
Engineering
-
view
798 -
download
3
Transcript of Nest (1)
Menglu Huang
Sample product
Nest Learning ThermostatIt learns from “you” to help save your electric billNest App: Control your thermostat miles awayEnergy Savings
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.
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
What’s hot
Smart Home- Thermostat(Nest)- Home monitoring Wi-fi video camera- wireless security sensor system- and so on
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
StoryComparison with traditional radiant
CompetitionHoneywell's Lyric thermostat
Linnox iHarmony
Cadet
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.
Questions?