NASDAQ$ALRM

Alarm.com Holdings Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Alarm.com reported solid results in Q3 2023, with SaaS and license revenue increasing and GAAP net income attributable to common stockholders also showing growth.

Alarm.com reported a 2.6% increase in total revenue to $221.9 million and an increase in SaaS and license revenue by 8.9% to $145.0 million. GAAP net income attributable to common stockholders increased to $19.5 million, or $0.37 per diluted share. The company also provided its financial outlook for SaaS and license revenue for Q4 2023 and increased its SaaS and license 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 by 8.9% to $145.0 million compared to $133.1 million in Q3 2022.
  • Total revenue increased by 2.6% to $221.9 million compared to $216.1 million in Q3 2022.
  • GAAP net income attributable to common stockholders increased to $19.5 million, or $0.37 per diluted share, compared to $18.3 million, or $0.35 per diluted share in Q3 2022.
  • Non-GAAP adjusted EBITDA increased to $41.4 million, compared to $40.8 million in Q3 2022.

Headline financials

Total Revenue

$222M

Previous: $216M+2.6%
EPS (adj)

$0.56

Previous: $0.55+1.8%
Capital Expenditures

-$5.35M

Previous: -$28.1M+81.0%
Free Cash Flow

$14M

Previous: -$9.75M+243.6%
Net Income

$19.4M

Previous: $18.3M+5.6%
Operating Income

$16.2M

Previous: $16.3M-0.9%
Gross Profit

$140M

Previous: $131M+7.6%
Cash & Equivalents

$680M

Previous: $621M+9.4%
Total Assets

$1.41B

Previous: $1.31B+7.8%
R&D Expense

$61M

No prior period
Stock-Based Comp

$11.8M

Previous: $13.2M-10.2%

Revenue & EPS history

Alarm.com · Revenue · Quarterly

$222M

Q3 2023+2.6%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Alarm.com · $222M total across 2 segments · Q3 2023

  • SaaS and license revenue
    $145M+9.0%
  • Hardware and other revenue
    $76.8M-7.5%

Forward guidance

Alarm.com is providing its outlook for SaaS and license revenue for the fourth quarter of 2023 and increasing its SaaS and license 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.

Tailwinds

  • SaaS and license revenue is expected to be in the range of $146.0 million to $146.2 million for the fourth quarter of 2023.
  • SaaS and license revenue is expected to be in the range of $566.9 million to $567.1 million for the full year of 2023.
  • Total revenue is expected to be in the range of $878.9 million to $881.1 million for the full year of 2023, which includes anticipated hardware and other revenue in the range of $312.0 million to $314.0 million.
  • Non-GAAP adjusted EBITDA is expected to be in the range of $143.0 million to $144.0 million for the full year of 2023.
  • Non-GAAP adjusted net income attributable to common stockholders is expected to be in the range of $103.5 million to $105.0 million, based on an estimated tax rate of 21.0% for the full year of 2023.

Headwinds

  • The 2023 guidance provided is forward-looking in nature and actual results may differ materially.
  • Guidance is based on expectations as of the date of the press release, and Alarm.com undertakes no obligation to update guidance after such date.
  • 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.
  • Non-ordinary course litigation expense, acquisition-related expense and tax windfall adjustments can have unpredictable fluctuations based on unforeseen activity that is out of Alarm.com's control and/or cannot reasonably be predicted.
  • The above charges are expected to have a significant and potentially highly variable impact on Alarm.com's future GAAP financial 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 Q3 2023

Historical avgQ3 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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