Rhombus CEO Interview

******* ** ******* ****, ****** ** a ******* ***** ** *** **** larger *****-***** ********** *****, *******.

****** **** ******, ** ***** ********************* ********* ***** **** ***** *** *******'* latest ***********, ********, ****** *****, ********* IPOing, *** *** ** ** ****** away **** ****.

Pitching * "****** *********"

******* ********* *** **** ******* ********** high-level:

We ******* ** ********* * ****** *********, a single suite of products for all of your cloud physical security needs. Whether that's the cameras, the access control, or the alarm monitoring [system], it's a single pane of glass for everything that you need to secure your physical environment and to manage it, get more productivity out of it. [Emphasis added]

***** ** ******* **** *******, **** have ******** **** *** *******, ****** move **** ****** *******:

******* *** ***** ** *******. **** still ***** ** **** ** *** sales, *** ** ****** **** **** this ***** *********. **** ****** ******** don't **** **** ** **** *** sensors **** ** **** **. **** door ******* *** ************* *******. * big *** ** *** ***** ******, a ***-*** ***** *******.

** **** ****** *********** ***** **** can ** ***** ** **** ****, like, "******* ** ********* *****. ****'** been ***** *** ***** *******. ****, play **** ***** **** ***'** **** someone ********* *** **** ****." *** then [** **** ****] ***** ********** [which] ** ********** ***** * **** ago.

*** *******, ****** ***, ******** *** biggest *********** ****** ***** *** ******** of *** *******, *** ****** *******. [We] ******** ******* ******** **** *******. It's *****-******* ****** *******, *** *** bells *** ******** **** *** ***** expect **** ****, **** ** ******** like ********.

***** ******* ****** *** *** ****** control ****** ***, ** **** ******** to ******* **** ****** ** ** historically *** ****, ******* ****:

**'** ******* * *** ** ********* on **** **** *** **** **** or ***. **** ****** ** **** access *******, **'** ******** ** ** very ****. **'** ******** ** ******* with *** ***** ****** ******* ********* that ** ********* **** *****. ** much ** **** **** ** ********* with **, **'** **** *********** **** them. ** *** *** ** *** day, ** ******* *** ******* ****** control ****** ****'** ******* *****, **'** just ********* **** **** *** ***** side ** ****** ****. *** ****** control ** *** *** *** *** that **'** **** ******** ******* ********.

*** ******* **** *** ******** *** ***** ******** ********** **** ***** **** *** ****** control ********, ******* *****:

**** ****, ** **** **** * video ******** **** **** **** **. That's ********** ** **** *** *** be **** **** ** ******* ****** control.

***** ********* / ********* **** ****** increasingly *********** ** ***** *******.

Product ********* **** ******** ********

**** **** ** ****** ******* ***-**-***, based ** ******** ********:

*** *** * ***** ***** ** is [****] ******** **** *** **** would **** ** ****** ** * single ********* ** ********* **** ** of ****** ** **.

* *** ** [****] ** **** customer-driven. ** *** ** **** ** hear *** **** ****, *** **'* been *********** **** *** **** *****, four ***** ** **** **'* ****** expanded ******* *** **** ********* *** for, *** * ***** ****'* * good **** **** ****** *** ******* a *** ** ***** *** ** Rhombus. **** *** ****, "***, *** that ***'** ***** ****, *** *** actually ** **** ** ****?"

*** *** **, *** **'* ******* that *** ***** **** ** ****** access ******* **** ***'* **** ** manage *****, *** ******** **** **** you *** ***** ** ****'* ****, "oh, ****, *** **** ***** **** to ****** ****." ***** *** *** under *** ******** **** **'** ******** about.

Verticals ****** *********, **********, *** **********, *** ** ***********

********* ******** ********, ******* *** ******** in *********, **********, **********, *** ****** retail *****, ******* ****:

**'** ****** ********** ****** * *** of ********* *********. ** ****** **** traction ****** * *** ** ******. Education ** * *** *** *** us. ** ** *** * ***** of ***** ** *********. [*******,] * wouldn't *** ** ******** ********** **** by * ***** ******. * **** [for] **** *****, ********* ** *** majority ** ***** ********. * ******'* say ****'* *** **** **** *******. We ****** ** ****** * *** of *********, ********* ** ***, *********** are ***, *** ********** ** ***.

******, ***** *** ***** ** ***, but ***** *** **** ** *** big ****. ** ** * *** with ********** ** ****, ***** **************. That *** *** **** * ******* area *** **.

*** **** ***** ******* **** *** focus ** ******* ****** ********* ****** such ** ******* *** *** ******* government, ******* ****, *** ***** **** Rhombus **** *** ***** ** *********** sites ******:

** *** ** ***** ***** ** [residential] ****** * ******** *** **** relationship *** ***** ** *** ** in * ****** **********. ** ***'* entertain *********** ****'* ****** ** **.

Announcing **** *********** *** ** "******* *********"

***** *** ************* ** ****, ******* has **** ********* * ***** ** $20 ******* ** *******,********* *** **** ****** $** ******* funding ***** ** ****, *** ****** *******. ******* **** **** **** *** company *** ******* **** ******* **** the ********* ********* ****** ***********:

** **** ** ********** **** **** in *** **** ******. ** ****** more **** ****'* ******** *** *****.

******* ********** **** ******* **** *** purely **** ** ******* ** ******* its ******** *** ** ****** **** others ** ******** *************:

** *******, **'** **** ****** *******-*********. The ****** *** ** **********. **'* not ******* **-***.

**'* **** ********* ** ** ** stand ** *** *** *** ****. Obviously, ** *****'* ****** ** **** money, ** **'** ****** **** * lot ****** ** **** [*************] **** probably ******.

******* ***** **** ***** ** *******'* progress ** ************* ** ********** *** focus ** "******** ** [***] ***":

***** [***] ***** ************, **** **** be * *** ***** *** ** in **** ** ***** ***** ** don't **** ** ***** *** **** money. ****'* *** ** *** ** won't ***** *** **** *****. *** that ** *** ** ******** ** our ***. *** ** ****** ** it *****************, * ****** ***.

Growing **** *****

******* *** **** ******* ** *-** since *** *******'* ****** ** ****, the ******* ********* ** ******** ****. ******* ** ***** **** ********* to ** **** *** ******* **** to *******, ******* **********:

**'** ***** ****** *-** *** ****. 3x ******** **** ** *** ******* days. *** **'** **** ****. **** a *** ** [*** *****] *********, we *** * ********. ********** ******* in ** ** **** **** *** into **, *** **** ** ******* to **-********** ******** ** ** [** this ****]. *** **** **** ****** numbers, ** **** **** ****** ** 2x, *** ****'* **** ** ***** we *** ** *** ** **.

****** ***** ** **** **** ** 2022, ******* ******* ******* ** "*** close **" ******** *** ******* ***** in ****:

** ****'* *** ***** ** ****. I ***'* **** ** **'** ***** hit ****, **** ***** *** ***** [environment]. *** **'* *** ** *** close ** ****.

*** ******* ******** ** ******* ** actual ******* *******, ****** ** ***** estimate **** **** *** ***** *** tens ** ******** ** ******* ** annual *******. ** **** ** ******** to **** ***** ** ******** ******* annually, $***+ ******* ** ********.

*********** ****** ******* **** ********* ** startup ********* ***** *** ******. ******* expects ******* ** ****** ***** ******** for ******* *** ** ***** ***** until ** ******* "**** ****" ** continue ** **** ** **** ****:

** ***** ** ** ***, ***, maybe ** ********** *** ***** *****, maybe ***** *****, *** **** ** probably ******* **** ****. *** ******* become *** *****.

** ***** **** *******, ******* **** IPVM ** *** ****** **** **** 30,000 ********* *** **** **** *,*** customers.

Doubled ********* ** * *****, **** ** *** ********* ** *****

******* **** **** * ****** ****** momentum ** ** ******* *** ********* in *** ***** ** ~*** *********, according ***** *******'* ******** ****, ***** ******* *********:

****** **** (**%) ** *******' ********* is ** *** ***** ********:

******* ********* **** ** ** * normal ***** **** ************ ******* ***** enterprise *** *** **** ******** ** Silicon ******:

*'* ******** **** ********** ***, ****. 40% ** **% ** **** ******* in ***** ***** ****** ** ********** B2B [***] **** [*********] ** ******* Valley.

*******'* *** **********,*******, *** *** **** ********** ** salespeople ** *** ************. *******, ***** ******** ********/***** ******** startups **** ** **** **** ********** of ***** ********* ** *****. *** example,***** ***'* ***** ******** ****** ** 25%, *********** (*** **** ** ******** ****)'* is **%.

IPO **************

******* *** ********** **** **** ********* **** *******'* ********, **** Capital, **** ******* ** "*** ** Bust":

** ********* ** **** **** ***** are **** *********** ******** ****** *** short *****. *******, ** **** *** Rhombus ** ****** * **********, ****-********** company **** * ****-**** ******.

********* ** *******'* ****** **********, ******* recounted *** ********** ** ******** ******** startups *** *** ** ********** *** direction ** * *******:

** ********** ** *'** *** ***** stars. **** ** ** ***** *******. The ***** *** **** *** ****** outcomes. **** **** ****. ***** ******* has * ********** ** *** ***** in ****, *** *** ** **** at *** *** ****** *** ***, "Hey, ** **** ****** ***** ** big, ** ** * **** ** partner **** ******** *** ** * need ** ****?"

** **** ***** *** ******* ** in *** ***** ** * *** transition ****** *** ******** ******** *****:

** *** ** *** ***** ** a **** **************. * ****** ** one ** [*** ****] **********, *** it *** ***********.********* *** ******** **-**** ** ******* [**] *% [while] ***** ** ******* **** **%, which ** * ****** **** ****** rate. *****'* ********** ********* *** ***** on ** **** ******. ** **** like **'** ** *** ****** ** that.

***** **** ** *********** ************* *** Rhombus, *** ** ****** *** ****** better **** ***** ***********, ******* ****:

***** ******* ** *** *** **********. It's **** ** **** ********** **, "Yes, *****'* ***** ** ******** *** there." ***** *** * *** ** big ********* *** ***** **** ***'* want ** *** **** ******. **** want ** ******* ********. ******* **** obviously **** * ***** ** ***** options. *** * *****we ***** *** ****** *** **** ** ******* ***********. [Emphasis added]

******* **** ******** ** *** ******* independent ** ****** *** ********** ********** and **** ******* ** ******** ** an ***, ******* **** ** ******** the ******* *** *** **** ***:

*****'* **** ** **** *********** *** technology ********** **** **** *** **** way ** ** **** ** ** stay *********** *** **** ******* ** that.

**** ** **** ** ****, "***, just **** *******." *** ** **** everyone ***** *****, *** ****** ****'* on *** **** **, *** ** we **** ****** * *** ** a ****-********, ******** ******* *** ****** make ** ****** ** **** ********?

** **** *** ******** ******** ********* are ******** ******* ** ********* *********** impede ********* **** ****** ******, *********, they ** ******** ** ******** ** annual *******, *********** *** ********* ** a ********** ******* ****** **** ** physical ********. ***** **** ** *********** for ***-******* ******** ******** ********* *** those **** ********* **** ******.

******* **** ***** ** ** ** independent ******* ** **** * "********** impact," ******* *****:

*** **, **'* ****, "***, *** we **** * *******, ******-**** ******* and ** ***** ** *** ** something ***." ** **** ** **'* viable *** *** ***'* **** ** sell. [** *** **] * ****-********, standalone ******* **** *** **** * meaningful ******.

"Side *******": ******** **** ** **********

******* **** **** *** ******* *** a "**** *******" ** ******* *** Sacramento *********, ***** ******* ** *****:

*** ***** **** ******* ** **** is **** * *** **** ** the ******** **** *** **** **********. Sacramento **** *** ******* **** **** companies.We **** * ********* ******** **** ** ******* ****, ******* ** ** ***** ** *** *** ****, ***** * *** ****** ****, ***'* *** ** ** *** ** ** ** **********. [Let's see if we can] help change the community, help impact a community. The only way to do that is you have to grow something to scale and show what's possible. [Emphasis added]

*** ******* ***** **** ** *** hires ** **********, *** *** **** wants ** "*****" **** **** *** build **** ********* ** *** ****:

**'** ***** ** **********. ** ** 60% - **% ** *** ****** in **********. ** **** ** **** that **'* ******** ** ***** **** in **********. * ******'* *** ****'* the ********** **** ** *** *****. We ***'* **** **** *** **********, but *** *** ** ** **** is ** ***** **** *** *** make ********* ****** ****-******* *** ********.

100% ******* - **% *********** ******** **********, **% ** ********

****** *** *** **********, *******, ******* only ***** ******* *** ******* ******* network, ** ******* **********:

** ***'* **** ******.

** ** ***% *******. **** **** means ** **** **** ** ** source *** ******** ** *** ******* partner ******* *** ********, ** **** everything ******* *** *******.We **** **** *,*** ********** ******* ******** *****. That range as you can imagine from very small [partners] up to very large channel partners. [Emphasis added]

************ **** *******'* ******** *** *** company ***** ******* ************ ** ****, Larsson ****:

*** *** ***** ** [*** **] our ******* [********].

** **** ** ******* ************. *** the ********* **** **** ** [** it **** ***], **'** ** ******* distribution *** **** ** ****.

***** ******* ****** ***** ******* ******* partners, ***** **** ********** ****** ** VARs (** ***** ***** ********) ******* of *********** ******** ***********, ******* **** IPVM. ******* *** **** ****** ******* to ****** *** ******** ***** *********** security ***********, ******* *****:

** *** ******. ** ******* ****** on *** ** *** ****, **** given *** *********** ***** *** *** background ** ***** ** **** ****. Over ****, **'** **** **** **** adoption ** *** ******** ******** ****, they **** ****** ** *****, *** we've **** ******* ** ***** **** of **** **.

*****'* ********** **** * ***** ** them **** **** ********** ** ** if * *** ** ****** * guess,30% ** *** ********* *** *********** ******** *********, *** **% [***] ** *** ** ****. [Emphasis added]

******* ******* ***** *******'* ****** ** servicing *** ******* ********, ********** *** traditional ******** ***********:

** ***** ***** *** ******* ** the **** ***** **** ** ******* because ** **** ** ****** ** be ***% [*******], *** **'** ********** to ***** ***** *** **** ** that **** *** ****** ****** *** customers *** ********* ******** ** ***** tools. ** ******* **** *** **** of *** *********** ******** ********* ******* we ***** ****'* * *** **** where ** *** **** * *****.

******* ** **** *** ******** ***********, the **** (******* ******* *********) *** also ********* ******** ** *******, *** they *** *** **** *** ******* targets ***:

*** ** [****] **** *********** ** us. ** ***** ** **** [**** will] **** * ****** *** **** later, *** **'** **** **** **** tools ** ** **** **********, *** we *** * *** ** ****** into *** ******* *** ******** ****.

Weakness: ** ***-***** ****** *******

** *** ******* ****, *** ** Rhombus's ********** ** **** ** **** not ******* *****-***** ******* *** *** no ***** ** ******* **** *********. Larsson ********* *** *******'* ********** ** the ******:

** ***'* **** * ********* ******** for ****[*****-***** ****** ***********]. * ***** that's *******. *****'* ******* ** *** website. *** ** ** *** ********* approach **** ** ** *** ******* them.

******* **** **** *** ****** *** this ** **** ******* **** *** want ** ** ********* ** ** NVR ******* ***** ** **** ** difficult *** ** ** ************* ****** from ******* ** *********:

*********, * *** ** ****** **** made * *** ** ***** *********** in **** [*** *******] *** ** some ********, ** **** ********,it's *** * ***** *** *** **. The background reason that we don't do it is there are a lot of NVR companies, and I don't really think that is where our differentiation is. [Emphasis added]

We're ****** ****** ** **** *** **** ****** ***** *********** ** *** ***** ** *** ********* ** ***** ** *** ******** **** **** ****, ************ ** *** *********. Maybe integrations that they want, APIs that they want, but to ** ***** ** *** ***, **'* **** ****** **** ** *** *** **** ***** ************* ** ****** **** ********* **** ******* *** *********, who already have great products in that space. It's hard to see how we differentiate much. [Emphasis added]

** ***** **** **** ***, **** a ******** ***********, ****** **** ******* perspective, ** **** *** **** ****** up ******* ****, **** ******* **** selling **** ** ***** *** ********.

Opening ** **** *******

***** ************, ******* *** *** ***** connecting ******* ******* ** ***** *****/****, it ** *** ******** **** ******** support ** ********* *** ****** ** opt-out ***** ****** ** ***** *** year ** ******* *******:

** **** ***** *** ** ** it. ** *****'* ******** ********* **, but ** ** **** ******** ****, if *** **** ** [*** **** to *** ***], ** **** ***** your ****** ** **. ** **** work **** ****, *** *** *** connect ** ** **** ** **** NVR **** *** **** ** [***].

******* ********* **** ********** ******* ******* to ***** ****/***** ** *** **** the ******* **********, *** ** **** allow ********* ** ** ** ***** forward:

**** * **** *** ** **** it's ********* *** ** **** **'** focused **. **'** *** ******* ** just **** *******. *** ***'* **** come **** *******, *** *******, *** then ** **** **** ** ** RTSP ** ******** ******'* ** **** the ********** *** **** ******. *** if ***, ***'* *** **** ** investment *** *** *** * **** down *** **** *** *** ****, for *** ****** ** *******, ******* just ***'* *** **, *** * want ** *** *** ****** ********* else, ** **** ***** *** ** do ****.

** **** ** * ******** *** purchased ** ***** *** **** ** Rhombus *******, ***** **** ** ** license *** ** ***** ********** ***** when **** *** ***, ******* ********* to ****.

** **** ** * ******-** ****** on **** ** **** ******.

Comparing **** ******* - **** ************ *** ***

******* *** **** *******, ******* ****** Rhombus's **** ******* ****** ************ *** **** ****, ** ******* ********:

** ****** **** * ****** ** areas *****. *****, ***** *** ********* of ** **** ********, **'** **** open ************ ***** *** ***. ** did ***** ************ **** ******** *** Kisi. ******* *** ***** **** *** of ***** ***** ** ************. ****'* helped ** * ***.

*** ***** **** *** **** ** had ** **** *** ***** *** one.

** ****** ** *** ** **** platform, ******* **'* ************ ** **** API.

******* ***** ** ******* ** ***** a ******** ***** ** *** ** top ** *******'* ***:

** **** ****** * ****** ***** enterprise ******** ***** ***** ******** *** your *** *** ** **** ******. They ***** ** *** ** *** of ** ** ** * ********** rollout ** *** ** ***** *,*** locations. **** ***** ***** *** ********* app ** *** ** **.

***** ** *********** **** *******'* **** integration *** **** ***, ** ******* emphasized:

**'** **** ********, ** **** *****, they ***'* **** ****** *** *** Rhombus **. ****'** *********** **** ** themselves *** ***** *** ***** *** products ** *** ** **, ** we ****** **** ****** ** ******** that *** *** *** ****** ** our *** *******.

*** ***** ** ****, ***, * want *** **** ***** *** * want *** *** ********** *** **** and *** *** **** ** **** and ***'** **** ***** *** ** in **** *** *** **, *** you ***** ** ****. *** ***** essentially ******** *******.

** ********,******* ********* *** *** *** ***, *** ******* ************ ****** *** features, **** ******* ** **** ********* video ** ***.

Comparing **** ******* - ***** *******

******* ***** **** **** **** *******, Larsson **** ********* **** ***** *****-**** than ******* ********* ****** ** ********* for *******:

** *** *********** ****, ** ****** value *** ******* ** ** ****** try ** **** *************** **** *** channel ****. *********, ** **** *** us **** ************* ******* ** *** up ***** * ****** *** ******* on *** ******* ****. **** ********* is * **************, ** ********* **'* not.

Growing ******** *** **/********* ****** ********

** *** ** *** **** *** a ****** ********* ** ********, ******* said **** ** ******** ******* ******** requests *** *********** *********:

** *********, ***** * ***** ***, in *** ***** ***** ** **** years, *** *** *** **** ***** prop [*** **].

**** ***** ***, * ***** *** it's *** *** **** ***** ****, but * ***** *** **'* **** interesting ** *** **** ****, ********** in ****** *********, *** **** **** or *** **** *** ************* *** starting ** ***** [****] "****, *** guys ** ********, *** **** ************ or *********** ********** *** *** **** me *** ** ***** ******* ***?"

*'* *** ****** ****'* ***** ** flip *********. *** ********* **** ** hard, *** * ********** **** ** the **** **** **** ***** ************* have ******* ** *****, ***** **'* because ** *** **** *** *****, but ****'* **** *********** ** *** where *** ********* *** *********** ****** us.

******* **** ******* ******** ** *** conversations **** ********* *** **** **** requests:

** *'* * ************ ****, [*** you] ***** ******* ** [**] ****** are [*****] **** *******'* ** ** if *'* * *** [*** ***] start ******* ** **** *** ********* is ***** **** *** *** ***** used?

*******'* **** ** **** ** ********* good **** *** ******** *** ************** others *** ***** ***** ********* **, Larsson ****:

* ***** ** * *** ** us **** *** ** *** ******** is *** ******** ******, *** ** analytics. **'* ********* *******. *** **** legacy ******* **** **** **** *********** hardware ********* **** ****'* ****** ***** about **** *** *** ** *** others ***** ** *** ** ***. I ** ***** ***** ** **** notion ****there's * *** ***** ** ** **** ** ****** *** ***** ** *** ************** ** ****** ***** *** ********** ** ***** *** ** ** ******* ** ***'* ** **********, *** ** ** *** **** ***** ****, **** ***** ***** ***** *** ***** ******** *** ** **. [Emphasis added]

***** **** ********* *** ***** ** their ***** *********** ******, ******* **** the ******* **** ** **** ****-******* cars *** **** "******" ** *** next **** ** **** *****:

**'* ***** ***** ****. * ******'* say **'* *** **** ***** **** yet. ** ******** ******* * ****** give ******** ** ** ***'** ****** an ******** ***, *** ***'* *** it ***** ******* ** ****-******. *** buy ** [****] **'* ************* *********, which ** *** * **** ***** us *** ******, *** * ***** that **** ****** ** **** ** five *****.