Financial Data and Key Metrics Changes - SaaS and license revenue for the first quarter grew to $163.8 million, representing a 9% year-over-year increase [19] - Total revenue increased by 7% year-over-year to $238.8 million, with total gross profit growing by 9.4% to $160.6 million [17] - GAAP net income rose by 18.4% year-over-year to $27.7 million, with GAAP EPS per diluted share at $0.52 [19] - Non-GAAP adjusted EBITDA increased by 17.5% year-over-year to $43.5 million, and non-GAAP adjusted net income grew by 11.3% to $30.4 million [19] - The company ended the quarter with $1.19 billion in cash and cash equivalents, producing $17.9 million in free cash flow [19] Business Line Data and Key Metrics Changes - EnergyHub was a primary contributor to the revenue beat, with strong growth in distributed energy resource management programs [17] - Revenue retention for commercial subscribers is currently at 98%, exceeding the consolidated target range of 92% to 94% [8] - The video solutions segment saw over 85% of installed seven twenty-nine cameras subscribed to the proactive deterrent solution, PerimeterGuard [9] Market Data and Key Metrics Changes - International markets are showing growth, with 30% of new international accounts including video, double the rate from the previous year [9] - The company is experiencing strong demand for its EnergyHub platform due to factors like EV adoption and extreme weather impacting the grid [10] Company Strategy and Development Direction - The company aims to expand its commercial services and innovate for the market, focusing on operational efficiency through standardization [7] - There is a strategic partnership with General Motors Energy to integrate GM EVs into the EnergyHub ecosystem, enhancing its market position [11] - The company is focused on building out its international dealer base to enhance its competitive position in global markets [56] Management's Comments on Operating Environment and Future Outlook - Management did not observe material changes in demand during the quarter despite macroeconomic concerns [5] - The company is cautiously optimistic about maintaining revenue retention rates and is not modeling significant impacts from tariff changes at this time [82] - The management team is committed to driving quality growth in underpenetrated markets, emphasizing collaboration and innovation [25] Other Important Information - The company has diversified its supply chain, with less than 10% of hardware revenue derived from products shipped from China [19] - The company is implementing a wider range in its revenue guidance to navigate tariff and macro uncertainties [24] Q&A Session Summary Question: Can you discuss recent average revenue per account trends in commercial and upsell opportunities? - Management noted that retention metrics are positive due to a "land and expand" dynamic, leading to upward trends in ARPU [28] Question: What factors are driving the moderation in SaaS growth as the year progresses? - The moderation is attributed to the annual nature of EnergyHub's business model and a return to historical revenue retention rates [40] Question: How is the company positioned competitively in international markets? - Management indicated that international markets are competitive but are experiencing faster growth than domestic markets, particularly in Latin America and Europe [57] Question: What are the initial priorities for the new CFO? - The new CFO aims to become more externally focused while maintaining business as usual internally [65] Question: How is the company addressing the competitive landscape and pricing strategies? - Management is monitoring low-cost products entering the market but believes in the value of their comprehensive security solutions [98]

Financial Data and Key Metrics Changes - SaaS and license revenue for Q1 reached $163.8 million, a 9% year-over-year increase, exceeding the guidance of $160.3 million [14][21] - Total revenue grew 7% year-over-year to $238.8 million, with total gross profit increasing 9.4% to $160.6 million [16] - GAAP net income rose 18.4% year-over-year to $27.7 million, with GAAP EPS at $0.52 [17] - Non-GAAP adjusted EBITDA grew 17.5% year-over-year to $43.5 million, and non-GAAP adjusted net income increased 11.3% to $30.4 million [17] Business Line Data and Key Metrics Changes - Revenue retention for commercial subscribers is at 98%, significantly above the target range of 92-94% [6] - The seven twenty-nine Floodlight video camera product is being installed in nearly 4,000 properties per month, with over 85% of these installations subscribing to the proactive deterrent solution, PerimeterGuard [7][8] - EnergyHub's platform is experiencing rapid growth, with enrollments exceeding expectations in Q1 [15] Market Data and Key Metrics Changes - International accounts with video services increased to 30% of new accounts, doubling from the same period last year [8] - The company has diversified its supply chain, with less than 10% of hardware revenue derived from products shipped from China [11][12] Company Strategy and Development Direction - The company aims to innovate in the commercial market, focusing on operational efficiency and standardization of offerings [6] - A strategic partnership with General Motors Energy was announced to integrate GM EVs into the EnergyHub ecosystem, enhancing market position [10] - The company is focused on expanding its international presence, particularly in Latin America and Europe, while addressing competitive pressures from low-cost products [54] Management's Comments on Operating Environment and Future Outlook - Management did not observe material changes in demand due to macroeconomic conditions during Q1 [4][16] - The company anticipates a potential impact from tariffs but feels well-positioned to manage current 10% tariffs [11][18] - Guidance for Q2 SaaS and license revenue is set between $167 million and $167.2 million, with full-year revenue expectations raised to between $975.8 million and $991.2 million [21][22] Other Important Information - The company has approximately nine months of inventory on hand, higher than normal, to mitigate tariff impacts [18] - The new five sixteen WiFi camera is expected to broaden adoption of video analytics services in residential markets [8] Q&A Session Summary Question: Update on commercial average revenue per account trends and upsell opportunities - Management noted positive dynamics in ARPU due to a "land and expand" strategy, with commercial ARPU being significantly higher than residential [25] Question: Quantifying revenue contribution from tariff-related pricing increases for 2025 - A 10% cost increase could lead to approximately $20 million in annualized revenue contribution, though the actual impact may be less due to timing and sourcing [27] Question: Factors driving moderation in SaaS growth as the year progresses - The moderation is attributed to the annual nature of EnergyHub's demand response programs and a return to historical revenue retention rates [36][37] Question: State of international markets and competitive position - Management indicated that international markets are competitive but growing faster than domestic markets, with a focus on building out a dealer base [52][54] Question: Impact of macroeconomic conditions on account origination activity - No significant changes were observed in account origination activity due to macroeconomic factors, with April showing a brief pause before returning to normal [58] Question: Strategies for driving higher video adoption among existing customers - Management highlighted the opportunity for service providers to upsell video services, particularly with new product offerings that enhance customer experience [66][70]

[Alarm.com First Quarter 2025 Results](index=1&type=section&id=Alarm.com%20Reports%20First%20Quarter%202025%20Results) [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results%20as%20Compared%20to%20First%20Quarter%202024) Alarm.com reported strong growth in Q1 2025, with a 9.0% increase in SaaS and license revenue and a 7.0% rise in total revenue year-over-year. GAAP net income grew by 18.4% to $27.7 million, and non-GAAP adjusted EBITDA increased by 17.5% to $43.5 million. However, cash flow from operations decreased compared to the prior year Q1 2025 vs. Q1 2024 Financial Performance | Financial Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | SaaS and license revenue | $163.8 million | $150.3 million | +9.0% | | Total revenue | $238.8 million | $223.3 million | +7.0% | | GAAP net income | $27.7 million | $23.4 million | +18.4% | | GAAP diluted EPS | $0.52 | $0.44 | +18.2% | | Non-GAAP adjusted EBITDA | $43.5 million | $37.0 million | +17.5% | | Non-GAAP adjusted net income | $30.4 million | $27.3 million | +11.3% | | Non-GAAP diluted EPS | $0.54 | $0.50 | +8.0% | | Cash flows from operating activities | $24.1 million | $49.9 million | -51.7% | [Recent Business Highlights](index=1&type=section&id=Recent%20Business%20Highlights) Alarm.com expanded its product line with a new, more competitively priced indoor Wi-Fi camera (ADC-V516) featuring AI analytics. The company also enhanced its AI Deterrence capabilities with adaptive voice responses and integrated Smart Signal functionality into its Remote Video Monitoring (RVM) platform. Additionally, its subsidiary EnergyHub announced a partnership with General Motors to integrate GM's electric vehicles and home energy solutions into its platform - Expanded its video product line with the new ADC-V516 indoor Wi-Fi camera, designed for residential and commercial markets with a lower cost point and AI-powered analytics[7](index=7&type=chunk) - Launched new video monitoring capabilities, including AI Deterrence (AID) with adaptive voice synthesis and Smart Signal integration for faster incident verification[7](index=7&type=chunk) - Subsidiary EnergyHub partnered with General Motors (GM) to integrate GM's EVs and home energy storage into its platform, enabling participation in utility programs and optimizing charging schedules[7](index=7&type=chunk) [Financial Outlook](index=1&type=section&id=Financial%20Outlook) The company provided guidance for Q2 2025, expecting SaaS and license revenue between $167.0 million and $167.2 million. For the full year 2025, it projects total revenue of $975.8 million to $991.2 million, non-GAAP adjusted EBITDA of $190.0 million to $193.0 million, and non-GAAP adjusted net income per diluted share of $2.32 to $2.33 Q2 2025 Outlook | Metric | Expected Range | | :--- | :--- | | SaaS and license revenue | $167.0 million to $167.2 million | Full Year 2025 Guidance | Metric | Expected Range | | :--- | :--- | | SaaS and license revenue | $675.8 million to $676.2 million | | Total revenue | $975.8 million to $991.2 million | | Non-GAAP adjusted EBITDA | $190.0 million to $193.0 million | | Non-GAAP adjusted net income | $131.5 million to $132.5 million | | Non-GAAP adjusted net income per diluted share | $2.32 to $2.33 | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents the detailed, unaudited financial results for the first quarter ended March 31, 2025, including the statements of operations, balance sheets, and cash flows, providing a comprehensive view of the company's financial position and performance [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, total revenue was $238.8 million, up from $223.3 million in Q1 2024. This growth was driven by a 9.0% increase in SaaS and license revenue. Operating income significantly increased to $29.6 million from $18.7 million, and net income rose to $27.7 million from $23.4 million year-over-year Q1 2025 Statement of Operations Highlights (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | 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 | | Diluted EPS | $0.52 | $0.44 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, the company held $1.19 billion in cash and cash equivalents, a slight decrease from $1.22 billion at year-end 2024. Total assets increased to $2.08 billion from $2.04 billion, while total liabilities remained stable at approximately $1.27 billion. Total stockholders' equity grew to $759.6 million Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1,186,195 | $1,220,701 | | Total current assets | $1,452,750 | $1,481,592 | | Total assets | $2,077,431 | $2,038,208 | | Total current liabilities | $677,428 | $188,806 | | Total liabilities | $1,265,243 | $1,266,915 | | Total stockholders' equity | $759,603 | $726,546 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash flow from operating activities was $24.1 million for Q1 2025, a significant decrease from $49.9 million in the prior-year period. The company used $55.2 million in investing activities, primarily for a business acquisition ($23.4 million) and issuance of notes receivable ($21.5 million). This resulted in a net decrease in cash of $34.7 million for the quarter Q1 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | 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 | [Reconciliation of Non-GAAP Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP financial measures to their non-GAAP counterparts. It bridges Net Income to Non-GAAP Adjusted EBITDA and Non-GAAP Adjusted Net Income, and Cash Flow from Operations to Non-GAAP Free Cash Flow, offering a clearer view of core operating performance by excluding certain non-cash or non-recurring items [Reconciliation of Non-GAAP Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Adjusted%20EBITDA) Non-GAAP adjusted EBITDA for Q1 2025 was $43.5 million, an increase from $37.0 million in Q1 2024. This was reconciled from a GAAP net income of $27.7 million by adding back adjustments totaling $15.8 million, primarily for interest, taxes, depreciation, amortization, and stock-based compensation Reconciliation of Net Income to Non-GAAP Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $27,712 | $23,404 | | Total adjustments | $15,828 | $13,642 | | **Non-GAAP adjusted EBITDA** | **$43,540** | **$37,046** | [Reconciliation of Non-GAAP Adjusted Net Income](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Adjusted%20Net%20Income) Non-GAAP adjusted net income attributable to common stockholders increased to $30.4 million ($0.54 per diluted share) in Q1 2025 from $27.3 million ($0.50 per diluted share) in Q1 2024. The reconciliation starts with GAAP net income and adjusts for items such as amortization, stock-based compensation, and related tax effects Reconciliation to Non-GAAP Adjusted Net Income (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income attributable to common stockholders | $27,950 | $23,595 | | Adjustments (Amortization, Stock-Comp, etc.) | $1,681 | $7,235 | | Income taxes (at 21.0% rate) | ($8,084) | ($7,261) | | **Non-GAAP adjusted net income attributable to common stockholders** | **$30,412** | **$27,316** | [Reconciliation of Non-GAAP Free Cash Flow](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Free%20Cash%20Flow) Non-GAAP free cash flow for Q1 2025 was $17.9 million, a sharp decrease from $46.8 million in Q1 2024. This was calculated by subtracting $6.1 million in additions to property and equipment from the $24.1 million in cash flows from operating activities Reconciliation to Non-GAAP Free Cash Flow (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash flows from operating activities | $24,057 | $49,853 | | Additions to property and equipment | ($6,115) | ($3,066) | | **Non-GAAP free cash flow** | **$17,942** | **$46,787** | [About Non-GAAP Financial Measures](index=2&type=section&id=Non-GAAP%20Financial%20Measures) The company explains its use of non-GAAP measures like adjusted EBITDA, adjusted net income, and free cash flow to help management and investors understand core operating performance and trends. These measures are used for strategic planning and are believed to provide useful comparisons. The company details specific items excluded from these calculations, such as amortization of intangibles, stock-based compensation, acquisition-related expenses, and certain litigation costs - Management uses non-GAAP measures to understand core operating performance, make strategic capital allocation decisions, and provide useful information to investors[11](index=11&type=chunk) - Key items excluded from various non-GAAP calculations include: interest expense/income, provision for income taxes, amortization of intangible assets, depreciation, stock-based compensation expense, acquisition-related expenses, and non-ordinary course litigation expenses[15](index=15&type=chunk)[18](index=18&type=chunk)[21](index=21&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section contains a standard safe harbor statement, warning that forward-looking statements, including financial guidance and benefits of new offerings, are subject to various risks and uncertainties. Key risks highlighted include global economic uncertainty, geopolitical conflicts, supply chain disruptions, inflation, competition, and reliance on service provider partners and suppliers - The press release includes forward-looking statements regarding financial guidance and business opportunities, which are not guarantees of future performance[25](index=25&type=chunk) - Identified risks include macroeconomic conditions (geopolitical upheaval, inflation, interest rates), supply chain issues, competition, ability to retain partners and subscribers, and reliance on key suppliers[25](index=25&type=chunk)

Core Viewpoint - Alarm.com Holdings (ALRM) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, thus affecting stock prices [4]. Company Performance and Outlook - The upgrade for Alarm.com suggests an improvement in the company's underlying business, which is expected to be reflected in a higher stock price as investors respond positively to this trend [5][10]. - Alarm.com is projected to earn $2.25 per share for the fiscal year ending December 2025, showing a year-over-year change of -1.3%, although the Zacks Consensus Estimate has increased by 1.3% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The upgrade of Alarm.com to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Financial Data and Key Metrics Changes - SaaS and license revenue for Q4 2024 was $165.7 million, an increase of 11.7% year-over-year [7][36] - Adjusted EBITDA for Q4 2024 was $46.4 million, compared to $45.6 million in Q4 2023 [40] - Total revenue for Q4 2024 was $242.2 million, growing 7.1% from Q4 2023 [37] - Full year 2024 total revenue reached $939.8 million, a 6.6% increase from 2023 [41] - GAAP net income for 2024 was $122.5 million, up from $80.3 million in 2023 [41] Business Line Data and Key Metrics Changes - The commercial business generated over $80 million in SaaS revenue in 2024, with significant growth in physical security solutions [14] - EnergyHub, a venture business, is now over a $50 million SaaS business, growing nicely [24] - OpenEye, part of the commercial business, generated nearly $20 million in SaaS revenue in 2024 [16] Market Data and Key Metrics Changes - International revenue accounted for 6% of total revenue in 2024, up from 5% in previous quarters [22][52] - The North American residential business remains the largest component of the company's diversified business [9] Company Strategy and Development Direction - The company is focused on expanding its commercial, international, and EnergyHub businesses, which collectively contributed 26% of total SaaS revenue in 2024 [13] - The acquisition of CHeKT is expected to enhance the company's position in remote video monitoring [19] - The company aims to grow its support for regional and local service providers to diversify international revenue streams [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a high revenue retention rate of 95% due to stable consumer demand and the stickiness of newer customers [41][85] - The company anticipates SaaS and license revenue for Q1 2025 to be between $160.2 million and $160.4 million, with full year 2025 guidance of $671.2 million to $671.8 million [42] Other Important Information - The CFO, Steve Valenzuela, announced his retirement, having contributed to significant revenue growth during his tenure [28][34] - The company ended 2024 with $1.22 billion in cash and cash equivalents, up from $697 million at the end of 2023 [41] Q&A Session Summary Question: What drove the acceleration in SaaS and license revenue growth in Q4? - Management attributed the acceleration to strong performance from EnergyHub and OpenEye, as well as increased international contributions [51][52] Question: What is the potential impact of tariffs on the hardware business? - Management indicated minimal exposure to tariffs due to manufacturing being primarily outside of China [56][57] Question: What are the growth expectations for the growth businesses in 2025? - Management expects similar growth rates as seen in 2024, with contributions from the acquisition of CHeKT included in the guidance [66] Question: How is the company addressing churn and net revenue retention? - Management believes the high retention rate will hold due to the stickiness of newer customers and higher average revenue per user (ARPU) from recent subscribers [85] Question: What is the outlook for international growth? - Management is optimistic about expanding service provider partnerships internationally, aiming for higher growth rates compared to the overall business [105][108]

Alarm.com Holdings (ALRM) came out with quarterly earnings of $0.58 per share, beating the Zacks Consensus Estimate of $0.55 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.45%. A quarter ago, it was expected that this security service company would post earnings of $0.49 per share when it actually produced earnings of $0.62, delivering a surprise of 26.53%.Over the last four qua ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37461 ALARM.COM HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 26-4247032 (State or other jurisdicti ...

[Earnings Release Overview](index=1&type=section&id=Alarm.com%20Reports%20Fourth%20Quarter%20and%20Full%20Year%202024%20Results) Alarm.com reported its Q4 and FY 2024 results, highlighting strong SaaS and license revenue growth and significant increases in full year GAAP net income and non-GAAP adjusted EBITDA [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Alarm.com reported solid financial performance for Q4 and full year 2024, with SaaS and license revenue showing strong growth and significant increases in full year GAAP net income and non-GAAP adjusted EBITDA Key Financial Highlights (Q4 & Full Year 2024) | Metric | Q4 2024 (Millions) | FY 2024 (Millions) | | :-------------------------------- | :----------------- | :----------------- | | SaaS and license revenue | $165.7 | $631.2 | | GAAP net income (FY) | N/A | $122.5 | | Non-GAAP adjusted EBITDA (FY) | N/A | $176.2 | - Fourth quarter SaaS and license revenue increased to **$165.7 million**, compared to $148.3 million for the fourth quarter of 2023[2](index=2&type=chunk) - Full year 2024 SaaS and license revenue increased to **$631.2 million**, compared to $569.2 million for 2023[6](index=6&type=chunk) - Full year 2024 GAAP net income increased to **$122.5 million**, compared to $80.3 million for 2023[6](index=6&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Steve Trundle highlighted solid financial performance, product innovation including new AI-based video analytics, and expanded opportunities in remote video monitoring through R&D and corporate development - Strengthened market position through product innovation, including new AI-based video analytics capabilities[3](index=3&type=chunk) - Expanded opportunity in the remote video monitoring market through organic research and development and corporate development strategy[3](index=3&type=chunk) - Growth initiatives contributed strongly to consolidated growth as they continued to scale[3](index=3&type=chunk) [Recent Business Highlights](index=1&type=section&id=Recent%20Business%20Highlights) Recent business highlights include EnergyHub's record grid flexibility, expanded remote video monitoring through CHeKT acquisition, and enhanced commercial activity analytics [EnergyHub Achievements](index=1&type=section&id=EnergyHub%20Delivered%20Record-Breaking%20Grid%20Flexibility%20in%202024) EnergyHub's platform achieved record-breaking grid flexibility in 2024, shifting over 44 gigawatt hours of electricity and leveraging AI-driven optimizations for distributed energy resources - EnergyHub's utility clients called on its platform over **2,000 times** during the 2024 summer[6](index=6&type=chunk) - Shifted over **44 gigawatt hours** of electricity out of peak demand periods[6](index=6&type=chunk) - Leveraged new dynamic load-shaping capability using AI-driven optimizations to coordinate distributed energy resources[6](index=6&type=chunk) [Remote Video Monitoring Expansion](index=3&type=section&id=Expanded%20Remote%20Video%20Monitoring%20%28RVM%29%20offering%20with%20the%20Acquisition%20of%20CHeKT) Alarm.com acquired 81% of CHeKT, a comprehensive RVM solution provider, to expand its emerging opportunity in commercial and residential remote video monitoring markets - Acquired **81%** of CHeKT on February 10, 2025, a comprehensive RVM solution that enables professional monitoring through on-premise video surveillance systems[14](index=14&type=chunk) - CHeKT serves central stations and service providers and works with a broad range of third-party cameras and security products[14](index=14&type=chunk) - The acquisition expands Alarm.com's emerging opportunity to provide RVM solutions in the commercial and residential markets[14](index=14&type=chunk) [Enhanced Business Activity Analytics](index=3&type=section&id=Enhanced%20Business%20Activity%20Analytics%20%28BAA%29%20Solution%20for%20Commercial%20Market) Alarm.com enhanced its commercial video analytics solution with an intuitive BAA dashboard on its mobile app, providing AI-driven insights for operational decision-making - Commercial video analytics solution now includes an intuitive BAA dashboard on the Alarm.com mobile app[14](index=14&type=chunk) - Leverages AI-driven insights including people counting, crowd gathering, and queue monitoring[14](index=14&type=chunk) - Enables commercial subscribers to make informed operational decisions and manage their business efficiently while on the go[14](index=14&type=chunk) [Financial Performance - GAAP & Non-GAAP](index=1&type=section&id=Financial%20Performance%20-%20GAAP%20%26%20Non-GAAP) This section details Alarm.com's GAAP and non-GAAP financial results for Q4 and full year 2024, including revenue, net income, EBITDA, balance sheet, and cash flow [Fourth Quarter 2024 Results](index=1&type=section&id=Fourth%20Quarter%202024%20Financial%20Results%20as%20Compared%20to%20Fourth%20Quarter%202023) Alarm.com reported an **11.7%** increase in SaaS and license revenue for Q4 2024, reaching **$165.7 million**, while total revenue grew **7.1%** to **$242.2 million** Fourth Quarter 2024 Financial Highlights (YoY, Millions) | Metric | Q4 2024 (Millions) | Q4 2023 (Millions) | Change (%) | Chunk | | :-------------------------------- | :----------------- | :----------------- | :--------- | :---- | | SaaS and license revenue | $165.7 | $148.3 | +11.7% | 7 | | Total revenue | $242.2 | $226.2 | +7.1% | 7 | | GAAP net income | $30.1 | $31.2 | -3.5% | 7 | | GAAP net income attributable to common stockholders per diluted share | $0.56 | $0.58 | -3.4% | 7 | | Non-GAAP adjusted EBITDA | $46.4 | $45.6 | +1.8% | 7 | | Non-GAAP adjusted net income attributable to common stockholders per diluted share | $0.58 | $0.62 | -6.5% | 7 | [Full Year 2024 Results](index=1&type=section&id=Full%20Year%202024%20Financial%20Results%20as%20Compared%20to%20Full%20Year%202023) For the full year 2024, Alarm.com achieved significant growth, with SaaS and license revenue increasing by **10.9%** to **$631.2 million** and total revenue by **6.6%** to **$939.8 million** Full Year 2024 Financial Highlights (YoY, Millions) | Metric | FY 2024 (Millions) | FY 2023 (Millions) | Change (%) | Chunk | | :-------------------------------- | :----------------- | :----------------- | :--------- | :---- | | SaaS and license revenue | $631.2 | $569.2 | +10.9% | 7 | | Total revenue | $939.8 | $881.7 | +6.6% | 7 | | GAAP net income | $122.5 | $80.3 | +52.6% | 7 | | GAAP net income attributable to common stockholders per diluted share | $2.29 | $1.53 | +49.7% | 7 | | Non-GAAP adjusted EBITDA | $176.2 | $154.0 | +14.4% | 7 | | Non-GAAP adjusted net income attributable to common stockholders per diluted share | $2.28 | $2.07 | +10.1% | 7 | [Balance Sheet and Cash Flow](index=1&type=section&id=Balance%20Sheet%20and%20Cash%20Flow) As of December 31, 2024, Alarm.com significantly increased its cash and cash equivalents, primarily due to the issuance of convertible senior notes, and reported strong positive cash flows from operations Balance Sheet and Cash Flow Highlights (YoY, Millions) | Metric | As of Dec 31, 2024 (Millions) | As of Dec 31, 2023 (Millions) | Change (%) | Chunk | | :-------------------------------- | :---------------------------- | :---------------------------- | :--------- | :---- | | Total cash and cash equivalents | $1,220.7 | $697.0 | +75.1% | 7, 34 | | Cash flows from operations (FY) | $206.4 | $136.0 | +51.8% | 7, 36 | | Non-GAAP free cash flow (FY) | $196.3 | $128.4 | +52.9% | 7, 43 | - The increase in cash and cash equivalents was primarily due to the May 2024 issuance of **$500.0 million** aggregate principal amount of **2.25%** convertible senior notes, resulting in proceeds of **$485.2 million**, net of transaction fees[7](index=7&type=chunk) [Financial Outlook](index=3&type=section&id=Financial%20Outlook) This section provides Alarm.com's financial guidance for the first quarter and full year 2025, projecting continued growth across key revenue and profitability metrics [First Quarter 2025 Outlook](index=3&type=section&id=For%20the%20first%20quarter%20of%202025) Alarm.com expects SaaS and license revenue for the first quarter of 2025 to be in the range of **$160.2 million** to **$160.4 million** First Quarter 2025 Financial Outlook (Millions) | Metric | Q1 2025 Outlook (Millions) | Chunk | | :----------------------- | :------------------------- | :---- | | SaaS and license revenue | $160.2 - $160.4 | 9 | [Full Year 2025 Guidance](index=3&type=section&id=For%20the%20full%20year%202025) For the full year 2025, Alarm.com projects continued growth across key financial metrics, including SaaS and license revenue, total revenue, non-GAAP adjusted EBITDA, and non-GAAP adjusted net income attributable to common stockholders Full Year 2025 Financial Guidance (Millions) | Metric | FY 2025 Guidance (Millions) | Chunk | | :------------------------------------------------ | :-------------------------- | :---- | | SaaS and license revenue | $671.2 - $671.8 | 15 | | Total revenue | $978.2 - $980.8 | 15 | | Non-GAAP adjusted EBITDA | $188.0 - $192.0 | 15 | | Non-GAAP adjusted net income attributable to common stockholders | $130.0 - $131.0 | 15 | | Non-GAAP adjusted net income attributable to common stockholders per diluted share | $2.28 - $2.29 (based on 60.6M shares) | 15 | [About Alarm.com Holdings, Inc.](index=3&type=section&id=About%20Alarm.com%20Holdings%2C%20Inc.) Alarm.com is the leading platform for intelligently connected properties, offering security, video, access control, intelligent automation, energy management, and wellness solutions through a global network of professional service providers - Alarm.com is the leading platform for the intelligently connected property, serving millions of consumers and businesses[13](index=13&type=chunk) - The platform integrates with a growing variety of Internet of Things devices through its apps and interfaces[13](index=13&type=chunk) - Solutions include security, video, access control, intelligent automation, energy management, and wellness, available through thousands of professional service providers globally[13](index=13&type=chunk) [Non-GAAP Financial Measures Explanation](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section explains Alarm.com's use of non-GAAP financial measures, their rationale, limitations, and specific adjustments made to GAAP results for clearer operational performance insights [Rationale for Non-GAAP Measures](index=3&type=section&id=Rationale%20for%20Non-GAAP%20Measures) Alarm.com uses non-GAAP financial measures to evaluate core operating performance, make strategic capital allocation decisions, and provide useful information to investors, emphasizing that these measures supplement, not replace, GAAP results - Non-GAAP measures are used by management to understand core operating performance, generate future operating plans, and make strategic capital allocation decisions[14](index=14&type=chunk)[16](index=16&type=chunk) - These measures provide useful information to investors in understanding and evaluating results of operations, business trends, and financial condition[16](index=16&type=chunk) - Non-GAAP measures have inherent limitations, do not serve as an alternative to GAAP, and are presented only in conjunction with GAAP results[16](index=16&type=chunk) - Non-GAAP free cash flow is defined as cash flows from operating activities less purchases of property and equipment[17](index=17&type=chunk) - Reconciliation of forward-looking non-GAAP guidance to GAAP is not available without unreasonable efforts due to high variability and low visibility of certain excluded charges[18](index=18&type=chunk) [Specific Adjustments](index=5&type=section&id=Specific%20Adjustments) Alarm.com excludes various items from its non-GAAP financial measures, such as certain interest expenses, non-operating income/expense, income taxes, amortization, stock-based compensation, acquisition-related costs, and non-ordinary course litigation expenses, to provide a clearer view of core operational performance [Interest Expense](index=5&type=section&id=Interest%20expense) Interest expense, primarily from convertible senior notes, is excluded from non-GAAP adjusted EBITDA, with specific exclusions for non-GAAP adjusted net income - Interest expense, primarily from convertible senior notes, is excluded in calculating non-GAAP adjusted EBITDA[19](index=19&type=chunk) - For non-GAAP adjusted net income, only interest expense related to the amortization of debt issuance costs is excluded[19](index=19&type=chunk) [Interest Income and Other (Expense) / Income, Net](index=5&type=section&id=Interest%20income%20and%20certain%20activity%20within%20other%20%28expense%29%20%2F%20income%2C%20net) Non-operating items like interest income and certain other income/expense are excluded from non-GAAP measures as they are not considered part of ongoing operations - Interest income and certain activity within other (expense) / income, net (e.g., gains/losses on investments, early debt extinguishment) are excluded from non-GAAP measures[20](index=20&type=chunk) - These items are excluded because they are not considered part of ongoing results of operations[20](index=20&type=chunk) [Provision for Income Taxes](index=5&type=section&id=Provision%20for%20income%20taxes) The impact of the provision for income taxes is excluded from non-GAAP adjusted EBITDA as it is not considered part of ongoing operations - The impact related to the provision for income taxes is excluded from the non-GAAP adjusted EBITDA calculation[21](index=21&type=chunk) - This tax adjustment is not considered part of ongoing results of operations[21](index=21&type=chunk) [Amortization Expense](index=5&type=section&id=Amortization%20expense) Amortization of acquired intangible assets is excluded from non-GAAP measures to facilitate performance comparison and is not factored into ongoing business operations - Amortization of acquired intangible assets (customer relationships, developed technology, trade names) is excluded from non-GAAP financial measures[22](index=22&type=chunk) - Exclusion enables comparison of performance to other companies and is not factored into ongoing business operations or acquisition performance evaluation[22](index=22&type=chunk) [Depreciation Expense](index=5&type=section&id=Depreciation%20expense) Depreciation expense for property and equipment is excluded from non-GAAP adjusted EBITDA, as it is not considered when evaluating ongoing business operations - Depreciation expense for property and equipment is excluded in calculating non-GAAP adjusted EBITDA[23](index=23&type=chunk) - Depreciation is not considered when evaluating ongoing business operations[23](index=23&type=chunk) - Depreciation is not excluded from non-GAAP adjusted net income or non-GAAP adjusted net income attributable to common stockholders[23](index=23&type=chunk) [Amortization of Debt Issuance Costs](index=5&type=section&id=Amortization%20of%20debt%20issuance%20costs) Amortization of debt issuance costs is excluded from non-GAAP adjusted net income and per-share metrics to provide more meaningful financial performance information - Amortization of debt issuance costs related to the 2026 and 2029 Notes is excluded from non-GAAP adjusted net income and related per-share metrics[24](index=24&type=chunk) - Exclusion provides more meaningful information about financial performance by removing this non-cash interest expense[24](index=24&type=chunk) [Stock-Based Compensation Expense](index=6&type=section&id=Stock-based%20compensation%20expense) Stock-based compensation expense is excluded from non-GAAP measures due to its non-cash nature and to improve comparability with industry peers - Stock-based compensation expense is excluded because it is a non-cash charge not considered when assessing operating performance[25](index=25&type=chunk) - Excluding this expense improves comparability of results to other companies in the industry due to varying calculation methodologies and subjective assumptions[25](index=25&type=chunk) [Acquisition-Related Expense](index=6&type=section&id=Acquisition-related%20expense) Acquisition-related expenses are excluded from non-GAAP financial measures to provide meaningful information about operating performance and facilitate historical and industry comparisons - Acquisition-related expenses, including incremental costs and changes in fair value of contingent consideration liabilities, are excluded from non-GAAP financial measures[26](index=26&type=chunk) - Exclusion provides meaningful information about operating performance, facilitates historical comparisons, and improves comparability within the industry[26](index=26&type=chunk) [Litigation Expense](index=6&type=section&id=Litigation%20expense) Non-ordinary course litigation expense is excluded from non-GAAP measures as it is not considered indicative of core operating performance - Non-ordinary course litigation expense is excluded as it is not considered indicative of core operating performance[27](index=27&type=chunk) - Ordinary course legal expenses, such as those for maintaining intellectual property, are not adjusted[27](index=27&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements regarding the company's opportunities, positioning, benefits of new offerings, acquisitions, investments, and financial guidance for Q1 and full year 2025. It highlights that actual results may differ materially due to various known and unknown risks and uncertainties, including macroeconomic conditions, competition, and supply chain disruptions - Forward-looking statements cover the Company's opportunities, positioning, benefits of recently launched offerings, acquisitions, investments, and financial guidance for Q1 and full year 2025[28](index=28&type=chunk) - Actual results may differ materially due to known and unknown risks, uncertainties, and other factors[28](index=28&type=chunk) - Key risk factors include macroeconomic conditions (public health crises, geopolitical upheaval, supply chain disruptions, interest rates, inflation), demand for products, network reliability, ability to retain partners/subscribers, increased competition, and dependence on suppliers[28](index=28&type=chunk) - The Company disclaims any obligation to update these forward-looking statements except as required by law[28](index=28&type=chunk) [Consolidated Financial Statements](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents Alarm.com's comprehensive GAAP financial statements, including statements of operations, balance sheets, and cash flows, for the reported periods [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations provide a detailed breakdown of Alarm.com's revenues, costs, operating expenses, and net income for the three months and full years ended December 31, 2024, 2023, and 2022 Consolidated Statements of Operations Highlights (FY 2024 vs. FY 2023, thousands) | Metric (in thousands) | FY 2024 | FY 2023 | Change | | :-------------------------------- | :------ | :------ | :----- | | SaaS and license revenue | $631,198 | $569,200 | +10.9% | | Hardware and other revenue | $308,629 | $312,482 | -1.2% | | Total revenue | $939,827 | $881,682 | +6.6% | | Total cost of revenue | $326,149 | $325,159 | +0.3% | | Operating income | $108,548 | $66,829 | +62.4% | | Net income | $122,513 | $80,340 | +52.5% | | Diluted EPS | $2.29 | $1.53 | +49.7% | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets present Alarm.com's financial position as of December 31, 2024, and 2023, showing significant increases in total assets, primarily driven by cash and cash equivalents, and a corresponding rise in liabilities due to convertible senior notes Consolidated Balance Sheets Highlights (As of Dec 31, 2024 vs. 2023, thousands) | Metric (in thousands) | Dec 31, 2024 | Dec 31, 2023 | Change | | :-------------------------- | :----------- | :----------- | :----- | | Cash and cash equivalents | $1,220,701 | $696,983 | +75.1% | | Total current assets | $1,481,592 | $956,780 | +54.8% | | Total assets | $2,038,208 | $1,439,563 | +41.6% | | Convertible senior notes, net | $983,477 | $493,515 | +99.3% | | Total liabilities | $1,266,915 | $714,709 | +77.3% | | Total stockholders' equity | $726,546 | $688,546 | +5.5% | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The Consolidated Statements of Cash Flows detail the cash inflows and outflows from operating, investing, and financing activities for the years ended December 31, 2024, 2023, and 2022, highlighting a substantial increase in cash from operating and financing activities in 2024 Consolidated Statements of Cash Flows Highlights (FY 2024 vs. FY 2023, thousands) | Metric (in thousands) | FY 2024 | FY 2023 | Change | | :-------------------------------- | :------ | :------ | :----- | | Cash flows from operating activities | $206,413 | $135,965 | +51.8% | | Cash flows used in investing activities | $(24,681) | $(25,966) | -4.9% | | Cash flows from / (used in) financing activities | $346,430 | $(31,865) | N/A | | Net increase in cash, cash equivalents and restricted cash | $528,053 | $78,200 | +575.3% | - Proceeds from the issuance of convertible senior notes contributed **$500.0 million** to financing activities in FY 2024[36](index=36&type=chunk) [Reconciliation of Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP financial measures to their non-GAAP counterparts, including adjusted EBITDA, net income, and free cash flow [Non-GAAP Adjusted EBITDA Reconciliation](index=10&type=section&id=Non-GAAP%20adjusted%20EBITDA) This section reconciles GAAP net income to Non-GAAP Adjusted EBITDA, showing the adjustments made for interest, taxes, amortization, depreciation, stock-based compensation, acquisition-related, and litigation expenses Non-GAAP Adjusted EBITDA Reconciliation (FY 2024 vs. FY 2023, thousands) | Metric (in thousands) | FY 2024 | FY 2023 | Change | | :-------------------------- | :------ | :------ | :----- | | Net income (GAAP) | $122,513 | $80,340 | +52.5% | | Total adjustments | $53,726 | $73,627 | -27.0% | | Non-GAAP adjusted EBITDA | $176,239 | $153,967 | +14.5% | [Non-GAAP Adjusted Net Income Reconciliation](index=10&type=section&id=Non-GAAP%20adjusted%20net%20income) This section reconciles GAAP net income to Non-GAAP Adjusted Net Income, detailing adjustments for non-operating income/expense, amortization, debt issuance costs, stock-based compensation, acquisition-related, and litigation expenses, followed by a tax adjustment Non-GAAP Adjusted Net Income Reconciliation (FY 2024 vs. FY 2023, thousands) | Metric (in thousands) | FY 2024 | FY 2023 | Change | | :-------------------------- | :------ | :------ | :----- | | Net income, as reported (GAAP) | $122,513 | $80,340 | +52.5% | | Non-GAAP adjusted income before income taxes | $159,284 | $142,530 | +11.7% | | Non-GAAP adjusted net income | $125,834 | $112,599 | +11.8% | [Non-GAAP Adjusted Net Income Attributable to Common Stockholders Reconciliation](index=11&type=section&id=Non-GAAP%20adjusted%20net%20income%20attributable%20to%20common%20stockholders) This section provides the reconciliation from GAAP net income attributable to common stockholders to its non-GAAP adjusted counterpart, incorporating adjustments for non-operating items, amortization, stock-based compensation, and other specific expenses Non-GAAP Adjusted Net Income Attributable to Common Stockholders Reconciliation (FY 2024 vs. FY 2023, thousands) | Metric (in thousands) | FY 2024 | FY 2023 | Change | | :------------------------------------------------ | :------ | :------ | :----- | | Net income attributable to common stockholders, as reported (GAAP) | $124,116 | $81,043 | +53.1% | | Non-GAAP adjusted income attributable to common stockholders before income taxes | $160,887 | $143,233 | +12.3% | | Non-GAAP adjusted net income attributable to common stockholders | $127,101 | $113,154 | +12.3% | [Non-GAAP Adjusted Net Income Attributable to Common Stockholders Per Share Reconciliation](index=12&type=section&id=Non-GAAP%20adjusted%20net%20income%20attributable%20to%20common%20stockholders%20per%20share) This section reconciles GAAP diluted EPS to Non-GAAP Adjusted Net Income Attributable to Common Stockholders Per Diluted Share, detailing per-share adjustments for various non-GAAP exclusions Non-GAAP Adjusted Net Income Attributable to Common Stockholders Per Share Reconciliation (FY 2024 vs. FY 2023) | Metric | FY 2024 | FY 2023 | Change | | :------------------------------------------------ | :------ | :------ | :----- | | Net income attributable to common stockholders per share - diluted, as reported (GAAP) | $2.29 | $1.53 | +49.7% | | Non-GAAP adjusted net income attributable to common stockholders per share - diluted | $2.28 | $2.07 | +10.1% | [Non-GAAP Free Cash Flow Reconciliation](index=12&type=section&id=Non-GAAP%20free%20cash%20flow) This section reconciles cash flows from operating activities to Non-GAAP Free Cash Flow by subtracting additions to property and equipment Non-GAAP Free Cash Flow Reconciliation (FY 2024 vs. FY 2023, thousands) | Metric (in thousands) | FY 2024 | FY 2023 | Change | | :-------------------------- | :------ | :------ | :----- | | Cash flows from operating activities | $206,413 | $135,965 | +51.8% | | Additions to property and equipment | $(10,133) | $(7,517) | +34.8% | | Non-GAAP free cash flow | $196,280 | $128,448 | +52.8% | [Investor & Media Relations](index=6&type=section&id=Investor%20%26%20Media%20Relations) This section provides contact information for investor and media relations inquiries - Contact Matthew Zartman at ir@alarm.com for investor and media relations[29](index=29&type=chunk)

Investors in Alarm.com Holdings Inc. (ALRM) need to pay close attention to the stock based on moves in the options market lately. That is because the Dec 20, 2024 $75.00 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It coul ...

Here are two stocks with buy rank and strong momentum characteristics for investors to consider today, November 19:Victory Capital Holdings, Inc. (VCTR) : This asset management company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.5% over the last 60 days.Victory Capital's shares gained 23.7% over the last three months compared with the S&P 500’s advanced of 5.2%. The company possesses a Momentum Score of A.Alarm.com Holdings, Inc. (ALRM) : This In ...