Shares of the Vancouver-based video surveillance company Avigilon Corp. (TSX:AVO) were down 0.68% in early afternoon trading on November 30. The stock has climbed 61% in 2017. The video surveillance market is expected to pick up momentum into the next decade.
According to the research firm MarketsandMarkets the video surveillance market was valued at $30.3 billion in 2016. The market is projected to grow to $75.6 billion by 2022 due to growth in video analytics, increased installation of surveillance systems, and a plethora of other positive developments for the industry. Avigilon released its third quarter earnings on November 7 and the positive results correlated with these trends.
The company posted record revenue growth of $108.2 million compared to $95.8 million in the third quarter of 2016. It also saw record adjusted EBITDA of $22.6 million compared to $16.7 million in the prior year. Avigilon announced the launch of Avigilon Blue in the third quarter, a cloud service platform for its video surveillance services. The platform will allow customers to access a broad array of subscription services including self-learning analytics.
Security services are seeing demand skyrocket as private and public entities seek solutions in an evolving technological environment. The recent hacks at Uber and Equifax Inc. are illustrations of how cybercrime is evolving, but securing physical environments whether it is a small private business or a large office space is also hugely important. Avigilon is a fantastic long-term buy looking ahead for investors wanting to add a growth stock to their portfolio.
