NASDAQ$ALRM

Alarm.com Holdings Inc. · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported third quarter results with SaaS and license revenue increasing and GAAP net income attributable to common stockholders increasing.

Alarm.com reported strong third-quarter results, with SaaS and license revenue increasing by 9.8% and GAAP net income attributable to common stockholders increasing by 87.9%. The company also provided its financial outlook for SaaS and license revenue for the fourth quarter of 2024 and increased its guidance for the full year of 2024.

  • SaaS and license revenue increased 9.8% to $159.3 million compared to the third quarter of 2023.
  • Total revenue increased 8.4% to $240.5 million compared to the third quarter of 2023.
  • GAAP net income attributable to common stockholders increased 87.9% to $36.7 million compared to the third quarter of 2023.
  • Non-GAAP adjusted EBITDA increased 20.6% to $50.0 million compared to the third quarter of 2023.

Headline financials

Total Revenue

$240M

Previous: $222M+8.4%
EPS

$0.67

Previous: $0.56+19.6%
Non-GAAP adjusted EBITDA

$50M

No prior period
Non-GAAP adjusted net income attributable to common stockholders

$35.2M

No prior period
Capital Expenditures

-$7.87M

Previous: -$5.35M-47.0%
Free Cash Flow

$28.6M

Previous: $14M+104.2%
Net Income

$36.5M

Previous: $19.4M+88.4%
Operating Income

$33.2M

Previous: $16.2M+105.3%
Gross Profit

$156M

Previous: $140M+10.9%
Cash & Equivalents

$1.17B

Previous: $680M+72.2%
Total Assets

$1.97B

Previous: $1.41B+39.6%
R&D Expense

$62.2M

Previous: $61M+2.0%
Stock-Based Comp

$9.19M

Previous: $11.8M-22.1%

Revenue & EPS history

Alarm.com · Revenue · Quarterly

$240M

Q3 2024+8.4%vs Q3 2023
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 2024 and increasing its guidance for the full year of 2024 based upon current management expectations.

Tailwinds

  • SaaS and license revenue is expected to be in the range of $163.2 million to $163.4 million for the fourth quarter of 2024.
  • SaaS and license revenue is expected to be in the range of $628.7 million to $628.9 million for the full year 2024.
  • Total revenue is expected to be in the range of $933.7 million to $935.9 million for the full year 2024, which includes anticipated hardware and other revenue in the range of $305.0 million to $307.0 million.
  • Non-GAAP adjusted EBITDA is expected to be in the range of $174.0 million to $176.0 million for the full year 2024.
  • Non-GAAP adjusted net income attributable to common stockholders is expected to be in the range of $125.5 million to $126.5 million for the full year 2024, based on an estimated tax rate of 21.0%.

Headwinds

  • The 2024 guidance provided above is forward-looking in nature.
  • Actual results may differ materially.
  • The guidance provided above is based on expectations as of the date of this 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 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.

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 2024

Historical avgQ3 2024

+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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