NASDAQ$ALRM

Alarm.com Holdings Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported solid first quarter results with continued momentum across the business.

Alarm.com reported a 2.1% increase in total revenue to $209.7 million and a GAAP net income attributable to common stockholders of $14.4 million, or $0.28 per diluted share. SaaS and license revenue increased by 9.9% to $135.4 million. The company also provided its financial outlook for SaaS and license revenue for the second quarter of 2023 and increased its revenue, non-GAAP adjusted EBITDA and non-GAAP adjusted net income attributable to common stockholders guidance for the full year of 2023.

  • SaaS and license revenue increased 9.9% to $135.4 million compared to Q1 2022.
  • GAAP net income attributable to common stockholders increased to $14.4 million, or $0.28 per diluted share, compared to $9.1 million, or $0.18 per diluted share, primarily due to a $5.0 million increase in interest income.
  • Non-GAAP adjusted EBITDA increased to $30.6 million, compared to $29.9 million.
  • Total cash and cash equivalents decreased to $606.4 million as of March 31, 2023.

Headline financials

Total Revenue

$210M

Previous: $205M+2.1%
EPS (adj)

$0.41

Previous: $0.39+5.1%
Capital Expenditures

-$2.4M

Previous: -$2.17M-10.5%
Free Cash Flow

$11.8M

Previous: $6.91M+70.9%
Net Income

$14.2M

Previous: $9.08M+56.5%
Operating Income

$8.82M

Previous: $8.91M-1.1%
Gross Profit

$134M

Previous: $115M+15.8%
Cash & Equivalents

$606M

Previous: $672M-9.7%
Total Assets

$1.36B

Previous: $1.22B+10.8%
Stock-Based Comp

$12.7M

Previous: $12.1M+4.8%

Revenue & EPS history

Alarm.com · Revenue · Quarterly

$210M

Q1 2023+2.1%vs Q1 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Alarm.com · $210M total across 2 segments · Q1 2023

  • SaaS and license revenue
    $135M+9.9%
  • Hardware and other revenue
    $74.3M-9.6%

Forward guidance

Alarm.com is providing its outlook for SaaS and license revenue for the second quarter of 2023 and increasing its revenue, non-GAAP adjusted EBITDA and non-GAAP adjusted net income attributable to common stockholders guidance for the full year of 2023 based upon current management expectations. This guidance assumes no contribution from the Vivint license agreement.

Tailwinds

  • SaaS and license revenue is expected to be in the range of $137.2 million to $137.4 million for the second quarter of 2023.
  • SaaS and license revenue is expected to be in the range of $555.9 million to $556.5 million for the full year of 2023.
  • Total revenue is expected to be in the range of $855.9 million to $881.5 million for the full year of 2023, which includes anticipated hardware and other revenue in the range of $300.0 million to $325.0 million.
  • Non-GAAP adjusted EBITDA is expected to be in the range of $120.0 million to $125.0 million for the full year of 2023.
  • Non-GAAP adjusted net income attributable to common stockholders is expected to be in the range of $84.6 million to $87.5 million for the full year of 2023, based on an estimated tax rate of 21.0%.

Headwinds

  • The 2023 guidance provided above is forward-looking in nature. Actual results may differ materially.
  • Reconciliation of non-GAAP adjusted EBITDA and non-GAAP adjusted net income attributable to common stockholders guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures.
  • Non-ordinary course litigation expense, acquisition-related expense and tax windfall adjustments can have unpredictable fluctuations based on unforeseen activity that is out of our control and/or cannot reasonably be predicted.
  • Macroeconomic Conditions could impact demand for the Company's products.
  • Vivint's refusal to pay license fees and related legal actions could impact results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.6%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+0.4%

Avg return

30 days after

52%

25 / 48 earnings

Positive

+22.7%

Q2 2023

Best reaction

-14.0%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.3%-9.9%-3.4%
Q4 2025+0.8%+4.2%-1.8%
Q3 2025+5.8%+6.4%+10.5%
Q1 2025+1.5%+8.4%+5.4%
Q4 2024-1.7%-4.5%-6.6%
Q3 2024+9.5%+4.3%+17.9%
Q2 2024-5.0%-6.1%-14.9%
Q1 2024-1.0%-0.5%-9.2%
Q4 2023+4.3%+9.3%+5.9%
Q3 2023+8.8%+11.7%+9.5%
Q2 2023+22.7%+16.5%+17.8%
Q1 2023+4.8%+4.3%+6.2%
Q4 2022-2.0%-2.1%-4.8%
Q3 2022-14.0%+2.2%-11.0%
Q2 2022+3.6%+4.9%-3.4%
Q1 2022-10.9%-9.7%+1.8%
Q4 2021-1.1%+0.5%-1.1%
Q3 2021+2.7%+0.8%-9.7%
Q2 2021+7.4%+3.5%+1.3%
Q1 2021-5.8%-4.6%-12.5%
Q4 2020-5.4%-1.9%-6.2%
Q3 2020+12.9%+8.6%+23.1%
Q2 2020-0.2%-2.7%-2.7%
Q1 2020+12.2%+11.3%+31.9%
Q4 2019+3.9%+4.4%-8.2%
Q3 2019-9.4%-11.2%-16.6%
Q2 2019+5.3%-2.1%+1.2%
Q1 2019-8.1%-15.4%-22.2%
Q4 2018-8.8%-9.0%-0.2%
Q3 2018+8.5%+3.2%+10.7%
Q2 2018+8.4%+13.0%+23.9%
Q1 2018-3.2%-6.2%+6.7%
Q4 2017-6.3%-3.1%-2.2%
Q3 2017-12.8%-11.5%-18.7%
Q2 2017+5.7%+4.0%+13.8%
Q1 2017-3.2%-4.4%+6.1%
Q4 2016+3.8%+8.9%+2.5%
Q3 2016-9.2%-4.3%-9.3%
Q2 2016-2.8%-9.1%-17.1%
Q1 2016-1.7%
Q1 2015-1.7%
Q4 2013+3.0%
Q4 2015+3.0%
Q3 2014-2.7%
Q3 2015-2.7%
Q2 2015+2.4%
Q4 2014+2.4%
Q2 2014+2.4%
Q1 2014
Q3 2013
Q2 2013
Q1 2013

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