Alarm.com Reports First Quarter 2024 Results
Alarm.com reported strong financial results for the first quarter of 2024, with SaaS and license revenue increasing by 11.0% to $150.3 million. The company also saw a 63.7% increase in GAAP net income and a 21.2% increase in non-GAAP adjusted EBITDA compared to the first quarter of 2023. Alarm.com expanded its commercial offering with the Connected Fleet Solution and introduced new AI-powered video analytics capabilities. The company provided an optimistic financial outlook for the second quarter of 2024 and increased its guidance for the full year, expecting significant growth in revenue and profitability.
Strong increase in SaaS and license revenue by 11.0% to $150.3 million in the first quarter of 2024.
63.7% rise in GAAP net income attributable to common stockholders to $23.6 million.
21.2% increase in non-GAAP adjusted EBITDA to $37.0 million.
Expanded commercial offering with Connected Fleet Solution and new AI-powered video analytics capabilities.
Optimistic financial outlook for the second quarter and full year of 2024, with expected growth in revenue and profitability.
GAAP and non-GAAP earnings were negatively impacted by a $4.0 million credit loss reserve related to a subordinated credit agreement.
Total revenue increased by 6.5% to $223.3 million, lower than the growth in SaaS and license revenue.
Non-GAAP free cash flow was negative for the same period in the prior year, showing a potential need for improvement in cash flow management.
Insights
The reported increase in SaaS and license revenue by Alarm.com indicates a solid expansion in its core business model, which relies on recurring revenue streams. An 11% year-over-year growth suggests the company is experiencing sustainable demand for its services. The significant rise in GAAP net income by 63.7% reflects not only top-line growth but also improved operational efficiency or cost control. The enhanced non-GAAP adjusted EBITDA by 21.2% also underscores a healthy margin expansion, an important metric as it strips out non-cash expenses, providing a clearer picture of cash profitability.
Alarm.com’s balance sheet strength, showcased by the increase in cash and cash equivalents to $747.9 million, affirms financial stability and the potential for future investments or shareholder returns. The dramatic change from a cash used in operations to a positive cash flow from operations year-over-year highlights significant operational improvements. Moreover, the non-GAAP free cash flow of $46.8 million, compared to the negative free cash flow in the previous year, is indicative of robust cash-generation capability of Alarm.com's business model.
Alarm.com’s updated guidance suggests management confidence in the ongoing growth momentum. However, investors should be aware of the $4.0 million credit loss reserve, which might signal potential risks associated with credit provided to service provider partners and could be an area for further scrutiny.
The new product launches, such as the Connected Fleet solution, indicate Alarm.com's strategic focus on expanding its service offerings within the commercial space. The integration with existing Alarm.com for Business platform could create cross-selling opportunities and sticky customer relationships. The launch of AI-Powered Video Analytics Capability, particularly tagging specific vehicles as 'familiar', represents innovation in the area of property intelligence and could be a differentiator in the market.
The introduction of the Remote Video Monitoring Console for Central Stations could streamline operations for monitoring stations and improve the service quality, potentially enhancing customer satisfaction and retention rates. When assessing the company's value proposition, these product innovations may contribute to sustained revenue streams, as they cater to evolving customer needs in security and business intelligence.
Alarm.com’s performance must be contextualized within the broader smart home and business security markets. The firm’s ability to increase SaaS and license revenues by 11% is indicative of a competitive product suite in a growing industry. The company's strategic orientation towards the integration of AI and machine learning into its products aligns with current market trends favoring smart, automated security solutions.
However, market saturation and increased competition from tech giants and startups alike could pose challenges to Alarm.com's growth trajectory. Hence, continuous innovation and value-added services, as seen with recent product updates, are important to maintaining a competitive edge. Moreover, the positive financial outlook provided by the management may reflect underlying market conditions that favor the adoption of connected property solutions, particularly in the wake of increased remote work and heightened attention to security.
-- First quarter SaaS and license revenue increased
-- First quarter GAAP net income attributable to common stockholders increased
-- First quarter non-GAAP adjusted EBITDA increased
TYSONS, Va.--(BUSINESS WIRE)-- Alarm.com Holdings, Inc. (Nasdaq: ALRM), the leading platform for the intelligently connected property, today reported financial results for its first quarter ended March 31, 2024. Alarm.com also provided its financial outlook for SaaS and license revenue for the second quarter of 2024 and increased its guidance for SaaS and license revenue, non-GAAP adjusted EBITDA and non-GAAP adjusted net income attributable to common stockholders for the full year of 2024.
“We are pleased to report solid results and continued momentum across the business in the first quarter,” said Steve Trundle, CEO of Alarm.com. “Our teams continued to work hard to support our service provider partners with new capabilities for both the residential and commercial markets we serve.”
First Quarter 2024 Financial Results as Compared to First Quarter 2023
-
SaaS and license revenue increased
11.0% to$150.3 million $135.4 million -
Total revenue increased
6.5% to$223.3 million $209.7 million -
GAAP net income attributable to common stockholders increased
63.7% to$23.6 million $0.44 $14.4 million $0.28 -
Non-GAAP adjusted EBITDA(*) increased
21.2% to$37.0 million $30.6 million -
Non-GAAP adjusted net income attributable to common stockholders(*) increased
24.1% to$27.3 million $0.50 $22.0 million $0.41 -
GAAP and non-GAAP earnings were negatively impacted in the first quarter of 2024 by a
$4.0 million
Balance Sheet and Cash Flow
-
Total cash and cash equivalents increased to
$747.9 million $697.0 million -
For the three months ended March 31, 2024, cash flows from operations was
$49.9 million $3.5 million $46.8 million $(5.9) million
(*) Reconciliations of the non-GAAP measures are set forth at the end of this press release.
Recent Business Highlights
- Expanded Commercial Offering with Connected Fleet Solution: The new cloud-based vehicle management solution offers professional-grade fleet management capabilities and deep integration with the Alarm.com for Business platform. Connected Fleet leverages Alarm.com’s robust enterprise reporting engine to provide business management and operational insights through automated reporting and alerts. With our Enterprise Dashboard capability, Connected Fleet also enables businesses to seamlessly monitor and manage vehicle fleets dispersed across thousands of locations.
- Launched New AI-Powered Video Analytics Capability: With Familiar Vehicle Analytics, subscribers can now tag specific vehicles as “familiar” and then receive alerts when the tagged vehicle is identified. Alarm.com’s rules engine enables robust and engaging customization, including naming familiar vehicles and creating highly flexible smart notification and video clip recording rules. Familiar Vehicle Analytics utilizes Alarm.com’s new AI recognition capability to identify the vehicle using its unique physical attributes and characteristics.
- Introduced Remote Video Monitoring (RVM) Console for Central Stations: The new RVM Console provides monitoring station operators with a comprehensive toolkit of situation assessment and response solutions. When Video Analytics detects people or vehicles on a property, such as at a commercial storefront or in a residential driveway, Alarm.com’s software alerts operators and provides access to the console. From here, operators can evaluate the situation using video and contextual indicators. They can then intervene through onsite hardware such as cameras and lights. The RVM Console helps streamline operations for monitoring stations and Alarm.com's partners by consolidating key information in one place while delivering a privacy-centric experience for home and business owners.
Financial Outlook
Alarm.com is providing its outlook for SaaS and license revenue for the second quarter of 2024 and increasing its guidance for SaaS and license revenue, non-GAAP adjusted EBITDA and non-GAAP adjusted net income attributable to common stockholders for the full year of 2024 based upon current management expectations.
For the second quarter of 2024:
-
SaaS and license revenue is expected to be in the range of
$153.8 million $154.0 million
For the full year 2024:
-
SaaS and license revenue is expected to be in the range of
$624.5 million $625.0 million -
Total revenue is expected to be in the range of
$914.5 million $931.0 million $290.0 million $306.0 million -
Non-GAAP adjusted EBITDA is expected to be in the range of
$164.0 million $166.0 million -
Non-GAAP adjusted net income attributable to common stockholders is expected to be in the range of
$118.5 million $119.5 million 21.0% . -
Based on an expected 55.3 million weighted average diluted shares outstanding, non-GAAP adjusted net income attributable to common stockholders is expected to be
$2.14 $2.16
The 2024 guidance provided above is forward-looking in nature. Actual results may differ materially. See the cautionary note regarding “Forward-Looking Statements” below. 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.
Conference Call and Webcast Information
Alarm.com will host a conference call to discuss its first quarter 2024 financial results and its outlook for the second quarter and full year 2024. A live audio webcast is scheduled to begin at 4:30 p.m. ET on May 9, 2024. To participate on the live call, analysts and investors should pre-register to obtain a dial-in number and individual passcode by visiting: https://register.vevent.com/register/BI5cd65729d6e74d94ace90e9a50eab854. Alarm.com will also offer a live and archived webcast of the conference call accessible on Alarm.com’s Investor Relations website at http://investors.alarm.com. The information contained on any referenced website is not incorporated herein.
About Alarm.com Holdings, Inc.
Alarm.com is the leading platform for the intelligently connected property. Millions of consumers and businesses depend on Alarm.com's technology to manage and control their property from anywhere. Our platform integrates with a growing variety of Internet of Things devices through our apps and interfaces. Our security, video, access control, intelligent automation, energy management, and wellness solutions are available through our network of thousands of professional service providers in
Non-GAAP Financial Measures
To supplement our consolidated selected financial data presented on a basis consistent with GAAP, this press release contains certain non-GAAP financial measures, including non-GAAP adjusted EBITDA, non-GAAP adjusted income before income taxes, non-GAAP adjusted net income, non-GAAP adjusted income attributable to common stockholders before income taxes, non-GAAP adjusted net income attributable to common stockholders, non-GAAP adjusted net income attributable to common stockholders per share and non-GAAP free cash flow. We have included non-GAAP measures in this press release because they are financial, operating or liquidity measures used by our management to (i) understand and evaluate our core operating performance and trends and generate future operating plans, (ii) make strategic decisions regarding the allocation of capital and investments in initiatives that are focused on cultivating new markets for our solutions and (iii) provide useful information to management about the amount of cash generated by the business after necessary capital expenditures. We also use non-GAAP adjusted EBITDA as a performance measure under our executive bonus plan. Further, we believe that these non-GAAP measures of our financial results provide useful information to investors and others in understanding and evaluating our results of operations, business trends and financial condition. While we believe the use of these non-GAAP measures provides useful information to investors and management in analyzing our financial performance, non-GAAP measures have inherent limitations in that they do not reflect all of the amounts and transactions that are included in our financial statements prepared in accordance with GAAP. Non-GAAP measures do not serve as an alternative to GAAP nor do we consider our non-GAAP measures in isolation. Accordingly, we present non-GAAP financial measures only in connection with GAAP results. We urge investors to consider non-GAAP measures only in conjunction with our GAAP financials and to review the reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measures, which are included in this press release.
We consider non-GAAP free cash flow to be a liquidity measure, which we define as cash flows from operating activities less purchases of property and equipment.
With respect to our expectations under “Financial Outlook” above, 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. In particular, 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. We expect the above charges to have a significant and potentially highly variable impact on our future GAAP financial results.
We exclude one or more of the following items from non-GAAP financial and operating measures:
Interest expense: We record interest expense primarily related to the January 2021 issuance of
Interest income and certain activity within other expense, net: We exclude interest income as well as certain activity within other expense, net including gains, losses or impairments on investments and other assets, gains on settlement fees as well as losses on the early extinguishment of the debt, when applicable, from our non-GAAP financial measures because we do not consider it part of our ongoing results of operations.
Provision for / (benefit from) income taxes: We exclude the impact related to our provision for / (benefit from) income taxes from our non-GAAP adjusted EBITDA calculation. We do not consider this tax adjustment to be part of our ongoing results of operations.
Amortization expense: GAAP requires that operating expenses include the amortization of acquired intangible assets, which principally include acquired customer relationships, developed technology and trade names. We exclude amortization of intangibles from our non-GAAP financial measures because we do not consider amortization expense when we evaluate our ongoing business operations, nor do we factor amortization expense into our evaluation of potential acquisitions, or our measurement of the performance of those acquisitions. We believe that the exclusion of amortization expense enables the comparison of our performance to other companies in our industry as other companies may be more or less acquisitive than us and therefore, amortization expense may vary significantly by company based on their acquisition history. Although we exclude amortization of acquired intangible assets from our non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.
Depreciation expense: We record depreciation primarily for investments in property and equipment. We exclude depreciation in calculating non-GAAP adjusted EBITDA because we do not consider depreciation when we evaluate our ongoing business operations. For non-GAAP adjusted net income, non-GAAP adjusted net income attributable to common stockholders and non-GAAP adjusted net income attributable to common stockholders per share, basic and diluted, we do not exclude depreciation.
Amortization of debt issuance costs: We record amortization of debt issuance costs related to the 2026 Notes as interest expense. We exclude amortization of debt issuance costs from our non-GAAP adjusted net income, non-GAAP adjusted net income attributable to common stockholders and non-GAAP adjusted net income attributable to common stockholders per share, basic and diluted, because we believe that the exclusion of this non-cash interest expense will provide for more meaningful information about our financial performance.
Stock-based compensation expense: We exclude stock-based compensation expense, which relates to restricted stock units and other forms of equity incentives primarily awarded to employees of Alarm.com, because they are non-cash charges that we do not consider when assessing the operating performance of our business. Additionally, the determination of stock-based compensation expense can be calculated using various methodologies and is dependent upon subjective assumptions and other factors that vary on a company-by-company basis. Therefore, we believe that excluding stock-based compensation expense from our non-GAAP financial measures improves the comparability of our results to the results of other companies in our industry.
Acquisition-related expense: Included in operating expenses are incremental costs directly related to business and asset acquisitions as well as changes in the fair value of contingent consideration liabilities, when applicable. We exclude acquisition-related expense from our non-GAAP financial measures because we believe that the exclusion of this expense allows us to better provide meaningful information about our operating performance, facilitates comparisons to our historical operating results, improves the comparability of our results to the results of other companies in our industry, and ultimately, we believe helps investors better understand the acquisition-related expense and the effects of the transaction on our results of operations.
Litigation expense: We exclude non-ordinary course litigation expense because we do not consider legal costs and settlement fees incurred and received in litigation and litigation-related matters of non-ordinary course lawsuits and other disputes, particularly costs incurred in ongoing intellectual property litigation, to be indicative of our core operating performance. We do not adjust for ordinary course legal expenses, including those expenses resulting from maintaining and enforcing our intellectual property portfolio and license agreements.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “designed,” “enable,” “ensure,” “expect,” “intend,” “will,” and other similar terms and phrases, and such forward-looking statements include, but are not limited to, the statements regarding the Company’s opportunities, positioning, the benefits of recently launched offerings, acquisitions and investments, and the Company’s guidance for the second quarter and full year 2024 described under “Financial Outlook” above and key assumptions related thereto. The events described in these forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: impact of the global economic uncertainty and financial market conditions caused by significant worldwide events, including public health crises, geopolitical upheaval, such as Russia’s incursion into
ALARM.COM HOLDINGS, INC. |
|||||||
Consolidated Statements of Operations |
|||||||
(in thousands, except share and per share data) |
|||||||
(unaudited) |
|||||||
|
Three Months Ended |
||||||
March 31, |
|||||||
|
2024 |
|
2023 |
||||
Revenue: |
|
|
|
||||
SaaS and license revenue |
$ |
150,344 |
|
|
$ |
135,394 |
|
Hardware and other revenue |
|
72,939 |
|
|
|
74,322 |
|
Total revenue |
|
223,283 |
|
|
|
209,716 |
|
Cost of revenue(1): |
|
|
|
||||
Cost of SaaS and license revenue |
|
20,428 |
|
|
|
19,583 |
|
Cost of hardware and other revenue |
|
56,087 |
|
|
|
56,589 |
|
Total cost of revenue |
|
76,515 |
|
|
|
76,172 |
|
Operating expenses: |
|
|
|
||||
Sales and marketing |
|
25,454 |
|
|
|
26,645 |
|
General and administrative |
|
29,296 |
|
|
|
28,499 |
|
Research and development |
|
65,956 |
|
|
|
61,908 |
|
Amortization and depreciation |
|
7,337 |
|
|
|
7,673 |
|
Total operating expenses |
|
128,043 |
|
|
|
124,725 |
|
Operating income |
|
18,725 |
|
|
|
8,819 |
|
Interest expense |
|
(796 |
) |
|
|
(868 |
) |
Interest income |
|
8,540 |
|
|
|
5,182 |
|
Other expense, net |
|
(318 |
) |
|
|
(148 |
) |
Income before income taxes |
|
26,151 |
|
|
|
12,985 |
|
Provision for / (benefit from) income taxes |
|
2,747 |
|
|
|
(1,222 |
) |
Net income |
|
23,404 |
|
|
|
14,207 |
|
Net loss attributable to redeemable noncontrolling interests |
|
191 |
|
|
|
209 |
|
Net income attributable to common stockholders |
$ |
23,595 |
|
|
$ |
14,416 |
|
|
|
|
|
||||
Per share information attributable to common stockholders: |
|
|
|
||||
Net income per share: |
|
|
|
||||
Basic |
$ |
0.47 |
|
|
$ |
0.29 |
|
Diluted |
$ |
0.44 |
|
|
$ |
0.28 |
|
Weighted average common shares outstanding: |
|
|
|
||||
Basic |
|
49,963,265 |
|
|
|
49,584,890 |
|
Diluted |
|
55,047,087 |
|
|
|
54,296,321 |
|
______________________________ |
|||||||
(1) Exclusive of amortization and depreciation shown in operating expenses below. |
|||||||
|
|
|
|
||||
Three Months Ended |
|||||||
March 31, |
|||||||
| Stock-based compensation expense data: | 2024 |
|
2023 |
||||
Cost of hardware and other revenue |
$ |
1 |
|
|
$ |
— |
|
Sales and marketing |
|
755 |
|
|
|
1,032 |
|
General and administrative |
|
3,181 |
|
|
|
3,145 |
|
Research and development |
|
7,331 |
|
|
|
8,509 |
|
Total stock-based compensation expense |
$ |
11,268 |
|
|
$ |
12,686 |
|
ALARM.COM HOLDINGS, INC. |
|||||||
Consolidated Balance Sheets |
|||||||
(in thousands, except share and per share data) |
|||||||
(unaudited) |
|||||||
March 31, |
|
December 31, |
|||||
2024 |
|
2023 |
|||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
747,877 |
|
|
$ |
696,983 |
|
Accounts receivable, net of allowance for credit losses of |
|
128,451 |
|
|
|
130,626 |
|
Inventory |
|
85,723 |
|
|
|
96,140 |
|
Other current assets, net |
|
35,812 |
|
|
|
33,031 |
|
Total current assets |
|
997,863 |
|
|
|
956,780 |
|
Property and equipment, net |
|
55,365 |
|
|
|
54,164 |
|
Intangible assets, net |
|
74,358 |
|
|
|
78,564 |
|
Goodwill |
|
154,433 |
|
|
|
154,498 |
|
Deferred tax assets |
|
145,258 |
|
|
|
131,815 |
|
Operating lease right-of-use assets |
|
24,324 |
|
|
|
24,242 |
|
Other assets, net of allowance for credit losses of |
|
35,381 |
|
|
|
39,500 |
|
Total assets |
$ |
1,486,982 |
|
|
$ |
1,439,563 |
|
Liabilities, redeemable noncontrolling interests and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable, accrued expenses and other current liabilities |
$ |
137,551 |
|
|
$ |
124,475 |
|
Accrued compensation |
|
20,418 |
|
|
|
28,626 |
|
Deferred revenue |
|
11,125 |
|
|
|
10,193 |
|
Operating lease liabilities |
|
12,101 |
|
|
|
12,043 |
|
Total current liabilities |
|
181,195 |
|
|
|
175,337 |
|
Deferred revenue |
|
13,087 |
|
|
|
12,692 |
|
Convertible senior notes, net |
|
494,305 |
|
|
|
493,515 |
|
Operating lease liabilities |
|
20,886 |
|
|
|
20,468 |
|
Other liabilities |
|
11,703 |
|
|
|
12,697 |
|
Total liabilities |
|
721,176 |
|
|
|
714,709 |
|
Redeemable noncontrolling interests |
|
37,712 |
|
|
|
36,308 |
|
Stockholders’ equity |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
521 |
|
|
|
519 |
|
Additional paid-in capital |
|
547,832 |
|
|
|
531,734 |
|
Treasury stock, at cost; 2,020,663 shares as of March 31, 2024 and December 31, 2023 |
|
(111,291 |
) |
|
|
(111,291 |
) |
Accumulated other comprehensive income |
|
1,251 |
|
|
|
1,398 |
|
Retained earnings |
|
289,781 |
|
|
|
266,186 |
|
Total stockholders’ equity |
|
728,094 |
|
|
|
688,546 |
|
Total liabilities, redeemable noncontrolling interests and stockholders’ equity |
$ |
1,486,982 |
|
|
$ |
1,439,563 |
|
ALARM.COM HOLDINGS, INC. |
|||||||
Consolidated Statements of Cash Flows |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
Three Months Ended |
|||||||
March 31, |
|||||||
Cash flows from / (used in) operating activities: |
2024 |
|
2023 |
||||
Net income |
$ |
23,404 |
|
|
$ |
14,207 |
|
Adjustments to reconcile net income to net cash flows from / (used in) operating activities: |
|
|
|
||||
Provision for credit losses on accounts receivable |
|
254 |
|
|
|
540 |
|
Reserve for product returns |
|
1,149 |
|
|
|
1,151 |
|
Provision for credit losses on notes receivable |
|
3,998 |
|
|
|
— |
|
Amortization on patents and tooling |
|
220 |
|
|
|
316 |
|
Amortization and depreciation |
|
7,337 |
|
|
|
7,673 |
|
Amortization of debt issuance costs |
|
790 |
|
|
|
784 |
|
Amortization of operating leases |
|
2,976 |
|
|
|
2,750 |
|
Deferred income taxes |
|
(13,443 |
) |
|
|
(26,895 |
) |
Change in fair value of contingent liability |
|
31 |
|
|
|
13 |
|
Stock-based compensation |
|
11,268 |
|
|
|
12,686 |
|
Changes in operating assets and liabilities (net of business acquisitions): |
|
|
|
||||
Accounts receivable |
|
826 |
|
|
|
(1,843 |
) |
Inventory |
|
10,382 |
|
|
|
377 |
|
Other current and non-current assets |
|
(962 |
) |
|
|
(689 |
) |
Accounts payable, accrued expenses and other current liabilities |
|
4,524 |
|
|
|
(9,617 |
) |
Deferred revenue |
|
1,327 |
|
|
|
1,899 |
|
Operating lease liabilities |
|
(3,221 |
) |
|
|
(3,362 |
) |
Other liabilities |
|
(1,007 |
) |
|
|
(3,511 |
) |
Cash flows from / (used in) operating activities |
|
49,853 |
|
|
|
(3,521 |
) |
Cash flows used in investing activities: |
|
|
|
||||
Business acquisition, net of cash acquired |
|
— |
|
|
|
(9,696 |
) |
Additions to property and equipment |
|
(3,066 |
) |
|
|
(2,398 |
) |
Issuances of notes receivable |
|
(500 |
) |
|
|
(300 |
) |
Receipt of payments on notes receivable |
|
13 |
|
|
|
13 |
|
Capitalized software development costs |
|
(408 |
) |
|
|
(362 |
) |
Purchase of investment in unconsolidated entity |
|
— |
|
|
|
(200 |
) |
Cash flows used in investing activities |
|
(3,961 |
) |
|
|
(12,943 |
) |
Cash flows from financing activities: |
|
|
|
||||
Payments of acquired debt |
|
— |
|
|
|
(469 |
) |
Issuances of common stock from equity-based plans |
|
6,356 |
|
|
|
1,311 |
|
Cash flows from financing activities |
|
6,356 |
|
|
|
842 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(180 |
) |
|
|
13 |
|
Net increase / (decrease) in cash, cash equivalents and restricted cash |
|
52,068 |
|
|
|
(15,609 |
) |
Cash, cash equivalents and restricted cash at beginning of the period |
|
701,079 |
|
|
|
622,879 |
|
Cash, cash equivalents and restricted cash at end of the period |
$ |
753,147 |
|
|
$ |
607,270 |
|
|
|
|
|
||||
Reconciliation of cash, cash equivalents and restricted cash: |
|
|
|
||||
Cash and cash equivalents |
$ |
747,877 |
|
|
$ |
606,428 |
|
Restricted cash included in other current assets and other assets |
|
5,270 |
|
|
|
842 |
|
Total cash, cash equivalents and restricted cash |
$ |
753,147 |
|
|
$ |
607,270 |
|
ALARM.COM HOLDINGS, INC. |
|||||||
Reconciliation of Non-GAAP Measures |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
Three Months Ended |
|||||||
March 31, |
|||||||
|
2024 |
|
2023 |
||||
Non-GAAP adjusted EBITDA: |
|
|
|
||||
Net income |
$ |
23,404 |
|
|
$ |
14,207 |
|
Adjustments: |
|
|
|
||||
Interest expense, interest income and certain activity within other expense, net |
|
(7,744 |
) |
|
|
(4,314 |
) |
Provision for / (benefit from) income taxes |
|
2,747 |
|
|
|
(1,222 |
) |
Amortization and depreciation expense |
|
7,337 |
|
|
|
7,673 |
|
Stock-based compensation expense |
|
11,268 |
|
|
|
12,686 |
|
Acquisition-related expense |
|
31 |
|
|
|
779 |
|
Litigation expense |
|
3 |
|
|
|
766 |
|
Total adjustments |
|
13,642 |
|
|
|
16,368 |
|
Non-GAAP adjusted EBITDA |
$ |
37,046 |
|
|
$ |
30,575 |
|
|
|
|
|
||||
|
Three Months Ended |
||||||
March 31, |
|||||||
|
2024 |
|
2023 |
||||
Non-GAAP adjusted net income: |
|
|
|
||||
Net income, as reported |
$ |
23,404 |
|
|
$ |
14,207 |
|
Provision for / (benefit from) income taxes |
|
2,747 |
|
|
|
(1,222 |
) |
Income before income taxes |
|
26,151 |
|
|
|
12,985 |
|
Adjustments: |
|
|
|
||||
Less: interest income and certain activity within other expense, net |
|
(8,540 |
) |
|
|
(5,182 |
) |
Amortization expense |
|
4,683 |
|
|
|
4,838 |
|
Amortization of debt issuance costs |
|
790 |
|
|
|
784 |
|
Stock-based compensation expense |
|
11,268 |
|
|
|
12,686 |
|
Acquisition-related expense |
|
31 |
|
|
|
779 |
|
Litigation expense |
|
3 |
|
|
|
766 |
|
Non-GAAP adjusted income before income taxes |
|
34,386 |
|
|
|
27,656 |
|
Income taxes 1 |
|
(7,221 |
) |
|
|
(5,808 |
) |
Non-GAAP adjusted net income |
$ |
27,165 |
|
|
$ |
21,848 |
|
1 Income taxes are calculated using a rate of |
|||||||
ALARM.COM HOLDINGS, INC. |
|||||||
Reconciliation of Non-GAAP Measures - continued |
|||||||
(in thousands, except share and per share data) |
|||||||
(unaudited) |
|||||||
|
Three Months Ended |
||||||
March 31, |
|||||||
|
2024 |
|
2023 |
||||
Non-GAAP adjusted net income attributable to common stockholders: |
|
|
|
||||
Net income attributable to common stockholders, as reported |
$ |
23,595 |
|
|
$ |
14,416 |
|
Provision for / (benefit from) income taxes |
|
2,747 |
|
|
|
(1,222 |
) |
Income attributable to common stockholders before income taxes |
|
26,342 |
|
|
|
13,194 |
|
Adjustments: |
|
|
|
||||
Less: interest income and certain activity within other expense, net |
|
(8,540 |
) |
|
|
(5,182 |
) |
Amortization expense |
|
4,683 |
|
|
|
4,838 |
|
Amortization of debt issuance costs |
|
790 |
|
|
|
784 |
|
Stock-based compensation expense |
|
11,268 |
|
|
|
12,686 |
|
Acquisition-related expense |
|
31 |
|
|
|
779 |
|
Litigation expense |
|
3 |
|
|
|
766 |
|
Non-GAAP adjusted income attributable to common stockholders before income taxes |
|
34,577 |
|
|
|
27,865 |
|
Income taxes 1 |
|
(7,261 |
) |
|
|
(5,852 |
) |
Non-GAAP adjusted net income attributable to common stockholders |
$ |
27,316 |
|
|
$ |
22,013 |
|
|
Three Months Ended |
||||||
March 31, |
|||||||
|
2024 |
|
2023 |
||||
Non-GAAP adjusted net income attributable to common stockholders per share: |
|
|
|
||||
Net income attributable to common stockholders per share - basic, as reported |
$ |
0.47 |
|
|
$ |
0.29 |
|
Provision for / (benefit from) income taxes |
|
0.05 |
|
|
|
(0.02 |
) |
Income attributable to common stockholders before income taxes |
|
0.52 |
|
|
|
0.27 |
|
Adjustments: |
|
|
|
||||
Less: interest income and certain activity within other expense, net |
|
(0.17 |
) |
|
|
(0.10 |
) |
Amortization expense |
|
0.09 |
|
|
|
0.10 |
|
Amortization of debt issuance costs |
|
0.02 |
|
|
|
0.01 |
|
Stock-based compensation expense |
|
0.24 |
|
|
|
0.26 |
|
Acquisition-related expense |
|
— |
|
|
|
0.01 |
|
Litigation expense |
|
— |
|
|
|
0.01 |
|
Non-GAAP adjusted income attributable to common stockholders before income taxes |
|
0.70 |
|
|
|
0.56 |
|
Income taxes 1 |
|
(0.15 |
) |
|
|
(0.12 |
) |
Non-GAAP adjusted net income attributable to common stockholders per share - basic |
$ |
0.55 |
|
|
$ |
0.44 |
|
Non-GAAP adjusted net income attributable to common stockholders per share - diluted |
$ |
0.50 |
|
|
$ |
0.41 |
|
Weighted average common shares outstanding: |
|
|
|
||||
Basic, as reported |
|
49,963,265 |
|
|
|
49,584,890 |
|
Diluted, as reported |
|
55,047,087 |
|
|
|
54,296,321 |
|
1 Income taxes are calculated using a rate of |
|||||||
ALARM.COM HOLDINGS, INC. |
|||||||
Reconciliation of Non-GAAP Measures - continued |
|||||||
(in thousands) |
|||||||
(unaudited) |
|||||||
|
Three Months Ended |
||||||
March 31, |
|||||||
|
2024 |
|
2023 |
||||
Non-GAAP free cash flow: |
|
|
|
||||
Cash flows from / (used in) operating activities |
$ |
49,853 |
|
|
$ |
(3,521 |
) |
Additions to property and equipment |
|
(3,066 |
) |
|
|
(2,398 |
) |
Non-GAAP free cash flow |
$ |
46,787 |
|
|
$ |
(5,919 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509853743/en/
Investor & Media Relations:
Matthew Zartman
Alarm.com
ir@alarm.com
Source: Alarm.com Holdings, Inc.
FAQ
What was the percentage increase in SaaS and license revenue for Alarm.com in the first quarter of 2024?
How much did GAAP net income attributable to common stockholders increase in the first quarter of 2024?
What new offering did Alarm.com launch for commercial customers?
What was the impact on GAAP and non-GAAP earnings in the first quarter of 2024?
