Beam - Getting to a valuation, page-19

I have tried to get Garmin and Globestar breakdowns by device but they are very vague about disclosure probably for the same reasons BCC do not publicise their margins.

from Globestar annual report they have 775k connected consumer devices which includes both spot and spot x. Spot (gps only) has been around more than 10 years but the spot x messenger was added only in 2018.

they do comment that they have ‘hundreds of thousands of spot x devices but don’t breakdown the split. So if you assume they have 200-300k spot x devices the greater proportion being spot that shows what can be done in this space in just a couple of years. Spots has always had less favourable reception to Garmin Inreach.

Given the feature set and reviews place Zoleo above Garmin also as a potential category leader. As long as they keep building the distribution network and successfully do this in Asia and Europe as planned it’s fair to assume some of the modelled revenue numbers are deeply conservative versus best case.

Garmin from their annual report don’t specify device connections by type either but they make over $1bn revenue from the outdoor category (In reach and similar) this is split separately to fitness (ie watches) and other divisions but again doesn’t break down by device.

BCCs figure is over 4m connected satellite devices so if 775k of these are global star spot range my estimate is maybe 1.5m are Garmin, the rest being other players.

it’s at attractive market to shoot at with a best of breed product and these devices have always been seperate to your iPhone until recently. Spotx added a Bluetooth feature to do phone connect only I think a year ago for the same reason Zoleo hasn’t bothered with a seperate keyboard. This familier use of your own phone will likely drive further adoption so if the market grows from say 4m to 5m connected devices over the next couple of years that’s 1m new device purchases for Zoleo to establish a market share portion of.