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Scout Security shares surge on revenue-sharing scheme with Amazon

Security tech company Scout Security (ASX: SCT) could play a role in improvement of gun control in the United States, with their intruder alert technology set integrated into Amazon’s new smart home service Alexa Guard Plus under a revenue-sharing agreement.

The Scout Alarm technology is specifically integrated into Amazon Echo devices with Amazon’s new Guard Plus service which is able to to detect sounds of glass breaking, footsteps, and other unexpected sounds when set to the ‘Away’ status. This functionality, which include deterrence response such as dog barking sounds, is available to customers for USD $4.99 per month.

Guard Plus can then be integrated with Scout’s premium subscription which can sends a police dispatch if users have a Scout Alarm subscription which costs $19.99 per month.

“Amazon’s Alexa platform continues to be one of the most popular integrations we offer for the Scout system and, over the years, the use cases for voice assistants have expanded dramatically,” said Scout CEO, Dan Roberts.

“We’re excited to be able to leverage some of the advancements in home audio detection to offer an additional service that, we believe, will add another layer of security to our customers’ homes.

“For several years, our team has investigated the ways we might mimic home occupancy as a deterrent to intruders, and the Guard Plus feature set is, in our opinion, a major step in the right direction for smart home security.”

Once a user installs the Alexa Guard app onto their Echo device, they will need to subscribe to Guard Plus for the intruder alerts but this can be bundled with Scout Alarm and would be the first time that Amazon and Scout will be sharing revenue.

Amazon is a shareholder of Scout which is one of six security tech providers that Amazon has announced as bundling partners for Guard Plus.

SCT shares soared on news of the revenue sharing scheme to open at $0.105, a rise of 43.8% on their previous close of $0.073 and trade as high as $0.135 in the first 15 minutes of morning trade.

Alfred Chan

Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.

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