Milestone makes strides in an anniversary year

April 02, 2024

In 2023, Milestone Systems (Milestone) delivered a net revenue of 1.69 billion Danish kroner (DKK) and earnings before interest and taxation (EBIT) of DKK 104.9 million.

25 years in business

In 1998, two Danish engineers, John Blem and Henrik Friborg Jacobsen, had a eureka moment.

Having invented a way to seamlessly send financial data from the stock exchange to analysts, the pair discovered that the same competencies could be used to transfer video data. Milestone Systems was born, paving the way for modern-day video management software for security (VMS) and analytics.

In February 2023, Milestone celebrated 25 years in business. We ended the anniversary year with a net revenue of DKK 1.69 billion, an increase of 13.4 percent year-over-year, and earnings before interest and taxation (EBIT) of DKK 104.9 million.

This growth is the result of the hard work of our people and collaboration with our valued partners.

During the 12-month period, Milestone made significant strides in delivering our growth strategy, particularly in key industries such as healthcare and hospitality.

Strategy achievements

In early 2023, Milestone launched XProtect® Hospital Assist, a video solution that allows medical staff to remotely observe multiple patients at once and respond to incidents quickly. We also introduced an updated approach for the casinos industry, one of the most strictly regulated industries in the world, focused on the use of video technology to ensure gaming compliance and deliver exceptional guest experiences.

Throughout the video security industry, cloud products grew faster than physical on-prem offerings in 2023. We expect cloud will continue to outpace the overall VMS market over the coming years. However, we do not see the need for on-prem products disappearing any time soon.

In response to demand for cloud and hybrid solutions, Milestone continued to closely collaborate with Canon Group sister company Arcules in 2023. This collaboration resulted in an important step forward in our cloud ambitions with the rollout of Milestone Kite™, a video surveillance as a service (VSaaS) offering.

By year-end, we added Camera to Cloud capabilities to Kite, meaning computing, recording and video storage can take place on cameras. Camera to Cloud works with a series of cameras by another Canon Group sister company, Axis Communications, that are pre-installed with artificial intelligence-based Axis Object Analytics.

Fit for the future

While Milestone recorded growth across all regions and improved profitability satisfactorily, 2023 undoubtedly presented several challenges for the company and the global business environment.

Ongoing conflicts in Ukraine and the Middle East, as well as global supply chain challenges, inflation, and recession, influenced partner and business confidence. Recovery from COVID-19 in some countries, particularly in the Asia-Pacific region, also took longer than expected.

To address the challenging business environment, Milestone implemented organizational adjustment measures to make Milestone fit for the future. Although the global business environment was challenging, we are proud that Milestone reported 13.4 percent growth ahead of expected market growth and solid improvement in profits.

Looking ahead

Looking ahead, we anticipate an eventful and promising 2024. We will continue our growth journey, both in revenue, investments, and in profitability. We expect the coming financial year will bring many opportunities, particularly within the cloud and video analytics spaces.

Emerging technologies have the remarkable potential to enable societies and businesses to solve major challenges, ushering in a new era of innovation and problem-solving. Such power must be matched with robust regulation. At Milestone, we take Responsible technology seriously by prioritizing the rules in our daily operations, reflecting our commitment to society.
– Thomas Jensen CEO, Milestone Systems

Responsible technology, a significant element in Milestone’s license to operate, will become increasingly important. As part of our internal Technology Strategy, Milestone intends to get even closer to customers’ needs and help solve their challenges by rethinking how we design, develop, test and deliver our software products.

In closing, we wish to thank Milestone’s 1,294 colleagues and valued resellers, distributors, technology partners and end customers. Thank you for another successful year and we look forward to the many opportunities ahead.

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