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The Platform for the Connected Home and Business AUGUST 2020 Copyright © Alarm.com 2020 1 Safe Harbor Statement FORWARD - LOOKING STATEMENTS This presentation contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical fact contained in this presentation, including, but not limited to, statements regarding our potential market opportunity and growth drivers, including addressable markets and industry trends, expansion into new international ma ...

Core Viewpoint - Alarm.com Holdings reported strong first-quarter financial results, exceeding market expectations, which led to a slight increase in share price despite a general market decline [1][2]. Financial Performance - Revenue for the quarter increased by 7% year-over-year to just under $239 million, surpassing the consensus estimate of approximately $237 million [2]. - Adjusted net income rose to $38.5 million ($0.54 per share) from $34.4 million in the previous year, exceeding the analyst expectation of $0.51 per share [2]. Revenue Drivers - The revenue growth was primarily driven by higher software-as-a-service (SaaS) and license revenue, which totaled nearly $164 million, reflecting a 9% year-over-year increase [3]. - The company launched several new products during the quarter, including a competitively priced indoor security camera and AI Deterrence technology for intruder identification [3]. Future Guidance - For the second quarter and the full year of 2025, total revenue is projected to be between $975.8 million and $991.2 million, with adjusted per-share net income expected to be between $2.32 and $2.33 [4]. - The average analyst estimates for 2025 revenue is $979 million, with adjusted profitability at $2.27 per share [4]. Market Position - Alarm.com is maintaining a competitive edge in its industry, although the market is not viewed as a high-growth area [5]. - The positive market reaction to the first-quarter performance is seen as a reasonable response to the company's potential [5].

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for the quarter ended March 31, 2025, including key financial statements and notes, reporting total revenue of **$238.8 million** and net income of **$27.7 million** Condensed Consolidated Statements of Operations (Q1 2025 vs Q1 2024) | Financial Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total revenue** | **$238,822** | **$223,283** | | SaaS and license revenue | $163,800 | $150,344 | | Hardware and other revenue | $75,022 | $72,939 | | **Operating income** | **$29,647** | **$18,725** | | **Net income** | **$27,712** | **$23,404** | | Net income attributable to common stockholders | $27,950 | $23,595 | | **Diluted EPS** | **$0.52** | **$0.44** | Condensed Consolidated Balance Sheets | Balance Sheet Item | As of March 31, 2025 (in thousands) | As of December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $1,186,195 | $1,220,701 | | **Total Assets** | **$2,077,431** | **$2,038,208** | | Convertible senior notes, net (current & noncurrent) | $984,975 | $983,477 | | **Total Liabilities** | **$1,265,243** | **$1,266,915** | | **Total Stockholders' Equity** | **$759,603** | **$726,546** | Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash flows from operating activities | $24,057 | $49,853 | | Cash flows used in investing activities | ($55,179) | ($3,961) | | Cash flows (used in) / from financing activities | ($3,476) | $6,356 | | **Net (decrease) / increase in cash** | **($34,716)** | **$52,068** | [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies and financial data, covering revenue recognition, the **$23.4 million** CHeKT acquisition, **$1 billion** in convertible senior notes, segment performance, and a **$29.1 million** investment in Safe Streets USA, LLC - On February 10, 2025, the company acquired **81%** of CHeKT, Inc. for **$23.6 million** in cash, net of holdbacks. The acquisition resulted in **$23.6 million** of goodwill, which was allocated to the Alarm.com segment[46](index=46&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk) - The company has two outstanding series of convertible senior notes: **$500.0 million** of **0%** notes due in 2026 and **$500.0 million** of **2.25%** notes due in 2029[89](index=89&type=chunk)[99](index=99&type=chunk) - For Q1 2025, the Alarm.com segment generated **$34.3 million** in operating income, while the Other segment reported an operating loss of **$4.7 million**[140](index=140&type=chunk) - Subsequent to the quarter end, on April 28, 2025, the company paid **$29.1 million** in cash to purchase a **24.7%** stake in Safe Streets USA, LLC[143](index=143&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial results, noting a **7%** revenue increase to **$238.8 million**, a **95%** SaaS and license revenue renewal rate, and details liquidity with **$1.19 billion** in cash Q1 2025 Financial Highlights | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $238.8 million | $223.3 million | | SaaS and license revenue | $163.8 million | $150.3 million | | Net income | $27.7 million | $23.4 million | | Non-GAAP adjusted EBITDA | $43.5 million | $37.0 million | - The SaaS and license revenue renewal rate for the trailing twelve months ended March 31, 2025, was **95%**, up from **94%** in the prior year period[161](index=161&type=chunk)[171](index=171&type=chunk) - Recent strategic activities include the acquisition of **81%** of CHeKT, Inc. on February 10, 2025, and a **$29.1 million** investment for a **24.7%** stake in Safe Streets USA, LLC on April 28, 2025[157](index=157&type=chunk)[159](index=159&type=chunk) - The company paid **$33.5 million** in April 2025 for the 2024 cash tax increase resulting from the requirement to capitalize and amortize R&D expenditures under Section 174 of the Tax Cuts and Jobs Act[222](index=222&type=chunk) [Results of Operations](index=43&type=section&id=Results%20of%20Operations) This section compares Q1 2025 and Q1 2024 operating results, showing a **7%** total revenue increase to **$238.8 million** and a **58%** operating income growth to **$29.6 million**, partly due to reduced general and administrative expenses - Total revenue increased **7%** YoY, with SaaS and license revenue growing **9%** due to an increase in the subscriber base and hardware revenue growing **3%**[200](index=200&type=chunk) - General and administrative expenses decreased by **8%** (**$2.3 million**), mainly due to a **$4.3 million** decrease in the provision for credit losses, which was elevated in Q1 2024 due to a specific loan to a distribution partner[206](index=206&type=chunk) - Research and development expenses increased by **4%** (**$2.4 million**) due to higher costs for external consultants, software licenses, and personnel[207](index=207&type=chunk) - The effective tax rate increased to **20.9%** in Q1 2025 from **10.5%** in Q1 2024. The prior year's rate was lower due to a tax benefit from the closure of an IRS examination and a tax windfall from stock-based compensation[212](index=212&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company held **$1.19 billion** in cash, with operating cash flow decreasing to **$24.1 million**, and investing activities increasing to **$55.2 million** due to the CHeKT acquisition and a new loan - As of March 31, 2025, the company had **$1.19 billion** in cash and cash equivalents and **$775.3 million** in working capital[220](index=220&type=chunk)[221](index=221&type=chunk) Cash Flow Summary (Q1 2025 vs Q1 2024) | Cash Flow Activity | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Operating Activities | $24,057 | $49,853 | | Investing Activities | ($55,179) | ($3,961) | | Financing Activities | ($3,476) | $6,356 | - The **$51.2 million** increase in cash used for investing was primarily due to the **$23.6 million** paid for the CHeKT acquisition and a **$21.5 million** note receivable issued to a service provider partner[238](index=238&type=chunk) - The company repurchased **86,400** shares of its common stock for **$5.1 million** under its stock repurchase program[231](index=231&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company identifies inflation and foreign currency exchange rates as primary market risks, deeming both immaterial due to U.S. dollar-denominated operations and no material inflationary impact - The primary market risks are identified as inflation and foreign currency exchange[245](index=245&type=chunk) - Management believes inflation has not had a material effect on business operations or financial condition[247](index=247&type=chunk) - Foreign currency exchange risk is considered immaterial as most revenue and expenses are denominated in U.S. dollars[248](index=248&type=chunk) [Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter, and is integrating the CHeKT business - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[250](index=250&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[251](index=251&type=chunk) - The company is in the process of integrating CHeKT, acquired on February 10, 2025, into its internal control over financial reporting[251](index=251&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in several patent infringement lawsuits, including cases with EcoFactor, Inc. and Causam Enterprises, Inc., and is indemnifying CSG in a Ubiquitous Connectivity, LP litigation - The company is defending a lawsuit from EcoFactor, Inc. alleging infringement of five U.S. patents. The case is currently stayed pending patent reexamination and review proceedings[114](index=114&type=chunk)[253](index=253&type=chunk) - A lawsuit from Causam Enterprises, Inc. alleges infringement of four U.S. patents. This district court case is stayed pending final resolution of a related ITC investigation where the ITC found in favor of Alarm.com[116](index=116&type=chunk)[255](index=255&type=chunk)[256](index=256&type=chunk) - The company is indemnifying its service provider partner CSG in an ongoing patent litigation brought by Ubiquitous Connectivity, LP, where a trial is scheduled for July 2026[119](index=119&type=chunk)[258](index=258&type=chunk) [Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) This section details risks including fluctuating quarterly results, intense competition, reliance on service provider partners, potential security solution failures, cybersecurity threats, and complex data privacy regulations - The company faces intense competition from other technology platforms, traditional security providers, and large technology companies like Google, Amazon, and Apple that are targeting the connected property market[291](index=291&type=chunk)[293](index=293&type=chunk)[295](index=295&type=chunk) - A substantial portion of revenue comes from a limited number of service provider partners. ADT represented over **15%** but not more than **20%** of revenue in 2022, 2023, and 2024[312](index=312&type=chunk) - The business is subject to risks from failure of its security and life safety solutions, cybersecurity breaches, and dependence on third-party wireless carriers, whose network shutdowns (e.g., 3G) can require costly subscriber upgrades[271](index=271&type=chunk)[301](index=301&type=chunk)[324](index=324&type=chunk) - The company is subject to complex and evolving regulations, including data privacy laws like GDPR in Europe and CCPA/CPRA in California, which can increase compliance costs and legal risks[339](index=339&type=chunk)[341](index=341&type=chunk)[342](index=342&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=94&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company repurchased **86,400** shares of common stock for approximately **$5.1 million** under its **$100 million** repurchase program, leaving **$94.9 million** available Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2025 | — | $ — | | February 2025 | — | $ — | | March 2025 | 86,400 | $58.55 | | **Total** | **86,400** | **$58.55** | - As of March 31, 2025, approximately **$94.9 million** remained available for purchase under the company's stock repurchase program[422](index=422&type=chunk) [Defaults Upon Senior Securities](index=94&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities during the reporting period - None[424](index=424&type=chunk) [Mine Safety Disclosures](index=95&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[425](index=425&type=chunk) [Other Information](index=95&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - During the three months ended March 31, 2025, no directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement[426](index=426&type=chunk) [Exhibits](index=96&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate documents, lease amendments, CEO/CFO certifications, and Inline XBRL data files - The list of exhibits includes required CEO and CFO certifications (31.1, 31.2, 32.1) and Inline XBRL documents[432](index=432&type=chunk)

Alarm.com Holdings (ALRM) came out with quarterly earnings of $0.54 per share, beating the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.50 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 12.50%. A quarter ago, it was expected that this security service company would post earnings of $0.55 per share when it actually produced earnings of $0.58, delivering a surprise of 5.45%.Over the last four qua ...

Alarm.com (ALRM) Q1 2025 Earnings Call May 08, 2025 04:30 PM ET Company Participants Matthew Zartman - Vice President of Strategic Communications & Investor RelationsStephen Trundle - President & CEOKevin Bradley - CFOMatt Bullock - Equity Research AssociateAdam Tindle - Managing DirectorSaket Kalia - Managing DirectorBilly Fitzsimmons - VP - Equity ResearchMatthew Filek - Equity Research Associate Conference Call Participants Darren Aftahi - Senior Research Analyst-Internet, Media and Enabling Technologies ...

Alarm.com (ALRM) Q1 2025 Earnings Call May 08, 2025 04:30 PM ET Speaker0 and thank you for standing by. Welcome to Alarm.com's First Quarter 20 20 5 Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Matthew Zartman, Vice President of Investor Relations. Please go ahead. Spea ...

Exhibit 99.1 Alarm.com Reports First Quarter 2025 Results -- First quarter SaaS and license revenue increased 9.0% to $163.8 million, compared to $150.3 million for the first quarter of 2024 -- -- First quarter GAAP net income increased 18.4% to $27.7 million, compared to $23.4 million for the first quarter of 2024 -- -- First quarter non-GAAP adjusted EBITDA increased 17.5% to $43.5 million, compared to $37.0 million for the first quarter of 2024 -- TYSONS, VA., May 8, 2025 -- Alarm.com Holdings, Inc. (Nas ...