UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 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 M.COM* ALARM.COM HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 26-4247032 (State or othe ...

Alarm.com Holdings, Inc. (NASDAQ:ALRM) Q4 2022 Earnings Conference Call February 23, 2023 4:30 PM ET Company Participants Matthew Zartman - VP, Strategic Communications & IR Stephen Trundle - CEO & Director Steve Valenzuela - CFO & Principal Accounting Officer Conference Call Participants Adam Tindle - Raymond James & Associates Darren Aftahi - ROTH MKM Partners Brian Ruttenbur - Imperial Capital Jack Aarde - Maxim Group Aditya Dagaonkar - Northland Capital Markets Operator Good day, and thank you for stand ...

Part I [Business](index=7&type=section&id=Item%201.%20Business) Alarm.com provides IoT solutions for connected properties, serving 9.1 million properties through 11,000+ partners, with SaaS and license fees as primary revenue - As of December 31, 2022, Alarm.com's platform serves **9.1 million properties** and is supported by a network of over **11,000 service provider partners**[14](index=14&type=chunk)[15](index=15&type=chunk) Financial Performance (2020-2022) | Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Total Revenue** | $842.6M | $749.0M | $618.0M | | **SaaS and License Revenue** | $520.4M | $460.4M | $393.3M | | **Net Income** | $56.3M | $52.3M | $77.9M | | **Adjusted EBITDA** | $146.8M | $142.5M | $125.3M | - The company's growth strategy focuses on expanding solutions for service providers, upgrading legacy security customers, continued platform investment, international expansion, and growing in the commercial market segment[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) - A significant portion of revenue comes from a key service provider, ADT LLC, which represented over **15% but not more than 20% of total revenue** in each of the last three fiscal years[91](index=91&type=chunk)[171](index=171&type=chunk) [Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) Key risks include fluctuating results, intense competition, reliance on service providers, cybersecurity threats, and a material patent dispute with Vivint - Quarterly operating results are subject to fluctuation due to macroeconomic conditions, product mix, and competition, which could cause results to fall below investor expectations[122](index=122&type=chunk)[123](index=123&type=chunk) - The company faces intense competition from technology companies, broadband providers, and other managed service providers targeting the home and business automation markets[150](index=150&type=chunk)[152](index=152&type=chunk)[154](index=154&type=chunk) - A substantial portion of revenue is derived from a limited number of service provider partners, and the loss of or a significant reduction in orders from a major partner, such as ADT, would decrease revenue and profitability[169](index=169&type=chunk)[171](index=171&type=chunk) - A dispute with Vivint, Inc., which has stopped paying license fees under a Patent Cross License Agreement, is having a material adverse effect on business, financial condition, and results of operations[125](index=125&type=chunk)[168](index=168&type=chunk) - The business is exposed to risks from cybersecurity threats and potential security breaches, which could harm its reputation, and result in liability, regulatory action, and significant fines[159](index=159&type=chunk)[160](index=160&type=chunk)[161](index=161&type=chunk) [Unresolved Staff Comments](index=58&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are no unresolved staff comments[289](index=289&type=chunk) [Properties](index=59&type=section&id=Item%202.%20Properties) The company's principal office is in Tysons, Virginia, with other leased and owned properties supporting its operations - The principal executive office is in Tysons, Virginia, under a lease for **189,881 square feet** that expires in 2026[290](index=290&type=chunk) [Legal Proceedings](index=59&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in significant legal proceedings, including a material patent license fee dispute with Vivint and other patent infringement lawsuits - Vivint, Inc. has stopped paying license fees under a Patent Cross License Agreement, which is expected to decrease SaaS and license revenue by approximately **$6.0 million per quarter** starting in Q4 2022, prompting Alarm.com to file for arbitration to seek continued payments[293](index=293&type=chunk)[684](index=684&type=chunk) - The company is defending against multiple patent infringement lawsuits, including cases brought by Vivint, EcoFactor, Inc., and Causam Enterprises, Inc[291](index=291&type=chunk)[295](index=295&type=chunk)[297](index=297&type=chunk) - Alarm.com is incurring costs to indemnify its service provider partner, ADT LLC, in ongoing patent infringement suits filed by Vivint[299](index=299&type=chunk)[300](index=300&type=chunk) [Mine Safety Disclosures](index=60&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[303](index=303&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=61&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Alarm.com's common stock trades on Nasdaq, with no anticipated cash dividends, and the company authorized a new **$100.0 million** stock repurchase program in February 2023 - The company does not intend to pay cash dividends in the foreseeable future, planning to retain earnings for business development and corporate purposes[307](index=307&type=chunk) Issuer Purchases of Equity Securities (Q4 2022) | Period | Total Shares Purchased | Average Price Paid per Share | Total Shares Purchased as Part of Program | Approx. Dollar Value Remaining in Program | | :--- | :--- | :--- | :--- | :--- | | Oct 2022 | — | — | — | $48,134,158 | | Nov 2022 | 251,158 | $48.88 | 251,158 | $35,858,629 | | Dec 2022 | 294,185 | $49.97 | 294,185 | $21,156,853 | | **Total** | **545,343** | **$49.47** | **545,343** | | - In February 2023, the board authorized a new stock repurchase program for up to **$100.0 million** of common stock over a two-year period, effective February 23, 2025[313](index=313&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=63&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2022, total revenue grew **12%** to **$842.6 million**, with net income at **$55.6 million**, though operating cash flow decreased due to tax changes and a **$6.0 million** quarterly revenue impact from a Vivint dispute Key Financial Highlights (2021 vs. 2022) | Metric | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $842.6M | $749.0M | 12% | | **SaaS and License Revenue** | $520.4M | $460.4M | 13% | | **Hardware and Other Revenue** | $322.2M | $288.6M | 12% | | **Net Income** | $55.6M | $51.2M | 9% | | **Adjusted EBITDA** | $146.8M | $142.5M | 3% | - The SaaS and license revenue renewal rate remained stable at **94%** for 2022, 2021, and 2020[331](index=331&type=chunk) - A dispute with Vivint over license fee payments is expected to reduce SaaS and license revenue by approximately **$6.0 million per quarter** starting in Q4 2022[327](index=327&type=chunk)[348](index=348&type=chunk) - Cash flows from operating activities decreased from **$103.2 million** in 2021 to **$56.9 million** in 2022, largely due to a **$44.9 million** change in deferred income taxes driven by new capitalization requirements for R&D expenses under IRC Section 174[443](index=443&type=chunk)[444](index=444&type=chunk) - The company adopted ASU 2020-06 on January 1, 2022, which simplified the accounting for its convertible senior notes and eliminated the non-cash interest expense related to the amortization of the debt discount, increasing net income[343](index=343&type=chunk)[344](index=344&type=chunk)[383](index=383&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=88&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's market risks primarily involve inflation, mitigated by price increases, and immaterial foreign currency exposure due to USD-denominated transactions - The company has experienced inflationary pressures on inventory and freight costs but has implemented price increases on some products to offset these higher costs[459](index=459&type=chunk) - Foreign currency exchange risk is not considered material as the vast majority of revenue and operating expenses are denominated in U.S. dollars[460](index=460&type=chunk) [Financial Statements and Supplementary Data](index=89&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents consolidated financial statements for 2020-2022, an unqualified audit opinion, and detailed notes on accounting policies and financial position - The Report of Independent Registered Public Accounting Firm, PricewaterhouseCoopers LLP, issued an **unqualified opinion** on the consolidated financial statements and the effectiveness of internal control over financial reporting as of December 31, 2022[464](index=464&type=chunk)[465](index=465&type=chunk) Consolidated Balance Sheet Data (in thousands) | Account | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$1,329,375** | **$1,232,015** | | Cash and cash equivalents | $622,165 | $710,621 | | Goodwill | $148,183 | $112,901 | | **Total Liabilities** | **$706,528** | **$605,960** | | Convertible senior notes, net | $490,370 | $425,345 | | **Total Stockholders' Equity** | **$598,859** | **$613,167** | [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=128&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[754](index=754&type=chunk) [Controls and Procedures](index=128&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2022, excluding Noonlight, Inc - Management concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of December 31, 2022[755](index=755&type=chunk) - Management concluded that internal control over financial reporting was effective as of December 31, 2022, with the assessment excluding the internal controls of Noonlight, Inc., acquired on September 23, 2022[756](index=756&type=chunk)[757](index=757&type=chunk) [Other Information](index=129&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[761](index=761&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=129&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[761](index=761&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=130&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information required for this item is incorporated by reference from the company's 2023 Proxy Statement - The information required by this item is incorporated by reference from the registrant's 2023 Proxy Statement[764](index=764&type=chunk) [Executive Compensation](index=130&type=section&id=Item%2011.%20Executive%20Compensation) Information required for this item is incorporated by reference from the company's 2023 Proxy Statement - The information required by this item is incorporated by reference from the registrant's 2023 Proxy Statement[765](index=765&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=130&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information required for this item is incorporated by reference from the company's 2023 Proxy Statement - The information required by this item is incorporated by reference from the registrant's 2023 Proxy Statement[766](index=766&type=chunk) [Certain Relationships and Related Transactions and Director Independence](index=130&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%20and%20Director%20Independence) Information required for this item is incorporated by reference from the company's 2023 Proxy Statement - The information required by this item is incorporated by reference from the registrant's 2023 Proxy Statement[767](index=767&type=chunk) [Principal Accountant Fees and Services](index=130&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information required for this item is incorporated by reference from the company's 2023 Proxy Statement - The information required by this item is incorporated by reference from the registrant's 2023 Proxy Statement[768](index=768&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=131&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section details all exhibits filed with the Annual Report, including financial statements, schedules, and various material contracts and certifications - This section lists all exhibits filed with the Form 10-K, including material contracts, debt agreements, and executive certifications[770](index=770&type=chunk)[771](index=771&type=chunk) [Form 10-K Summary](index=133&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to the company - Not applicable[774](index=774&type=chunk)

Alarm.com Holdings, Inc. (NASDAQ:ALRM) Q3 2022 Earnings Conference Call November 8, 2022 4:30 PM ET Company Participants Matthew Zartman - Vice President-Investor Relations Steve Trundle - President & Chief Executive Officer Steve Valenzuela - Chief Financial Officer Conference Call Participants Brian Ruttenbur - Imperial Capital Saket Kalia - Barclays Mark Cash - Raymond James Dillon Heslin - ROTH Willow Miller - William Blair Jack Codera - Maxim Group Operator Thank you for standing by, and welcome to the ...

Alarm.com Holdings, Inc. (NASDAQ:ALRM) Q2 2022 Earnings Conference Call August 9, 2022 4:30 PM ET Company Participants Matt Zartman - VP, IR Stephen Trundle - President and Chief Executive Officer Steve Valenzuela - Chief Financial Officer Conference Call Participants Saket Kalia - Barclays Catherine Huntley - Raymond James Michael Funk - Bank of America Brian Ruttenbur - Imperial Capital Dillon Heslin - ROTH Capital Partners Operator Good day and thank you for standing by. Welcome to the Alarm.com Second Q ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 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 jurisd ...

Financial Data and Key Metrics Changes - SaaS and license revenue for Q1 2022 was $123.2 million, an increase of 14.8% year-over-year [7][17] - Total revenue for Q1 2022 was $205.4 million, growing 19.1% year-over-year [18] - Adjusted EBITDA for Q1 2022 was $29.9 million, down from $35.6 million in Q1 2021 [21] - GAAP net income for Q1 2022 was $9.1 million, compared to $14.8 million in Q1 2021 [21] - Non-GAAP adjusted net income was $21.3 million, or $0.39 per diluted share, down from $25.8 million or $0.50 per share in Q1 2021 [21] Business Line Data and Key Metrics Changes - Hardware and other revenue in Q1 2022 was $82.2 million, up 26.3% over Q1 2021 [17] - SaaS and license gross margin for Q1 2022 was 86.3%, up approximately 20 basis points quarter-over-quarter [18] - Hardware gross margin was 11% for Q1 2022, down from 22.3% in the same quarter last year [18] Market Data and Key Metrics Changes - Service provider partners attached video to nearly half of all new security and Smart Home accounts in 2021 [15] - Approximately 30% of residential security systems installed in 2021 included video, indicating a growing trend in the market [15] Company Strategy and Development Direction - The company is focusing on expanding its platform and enhancing its product offerings, particularly in video analytics and commercial services [8][14] - A second price increase on select hardware products is expected to improve hardware margins throughout the year [7][19] - The integration of OpenEye's technology is a key part of the strategy to build a strong recurring revenue model [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for security services, noting that safety and security are fundamental consumer needs [26] - The company anticipates hardware gross margins to improve from Q1 levels each quarter, barring any additional economic impacts [19] - Management remains cautious about the potential impacts of inflation and supply chain disruptions on future performance [22] Other Important Information - The company ended Q1 2022 with $671.8 million in cash and cash equivalents [21] - The largest customer, ADT, contributes over 15% of total revenue, with no other customer exceeding 10% [67] Q&A Session Summary Question: Why is the subscription growth durable compared to other consumer subscription companies? - Management believes the fundamental need for security and safety drives consistent demand, even during economic downturns [26][28] Question: What factors are expected to improve EBITDA margins throughout the year? - Expected improvements in hardware margins due to price increases and seasonal trends are key factors for margin recovery [30] Question: How is the commercial side performing in terms of account additions? - The commercial account base continues to grow, with over 400,000 active subscriptions and significant new connection points activated [36] Question: How does the company view potential subscription price increases in the current market? - Management is cautious about increasing subscription prices quickly, preferring to maintain stability for service providers and consumers [38] Question: What is the outlook for the international business? - The company continues to see growth in international subscribers, with over 500,000 installations outside the U.S. and Canada [65]