Thats a lot of sales - 50k/month. There are so many competitors here - NetAtmo (1), August, and several others (3). This is isn't like investing in GoPro 5 years ago,... Isn't this more like Cisco investing in Flip camera in 2009 (4) ??
Looking at their product line and the statements they're making - I'm thinking they are heading towards competing with hOme security services. That move would push them into a much higher margin business and make this make more sense.