Alarm.com 2023 Third-Quarter SaaS and License Revenue Up 8.9% to $145M
The intelligent connection product company expects its total revenue for 2023 to be in the range of $878.9 million to $881.1 million.
TYSONS, Va. — Intelligent connection product company Alarm.com Holdings, Inc., today reported a 2.6% year-over-year jump in overall revenue and 8.9% YoY increase in SaaS and license revenue for the third quarter of 2023, ending Sept. 30.
Alarm.com’s SaaS and license revenue was up from $133.1 million in 2022 to $145 million this year, while its total revenue grew from $221.9 million last year to $216.1 million in 2023.
In its quarterly call with investors and analysts, Alarm.com also provided its financial outlook for SaaS and license revenue for the fourth quarter of 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.
“We are pleased to report solid results in the quarter and continued contributions from our various growth initiatives,” said Steve Trundle, CEO of Alarm.com, in the company announcement. “Our continued innovation in cloud-based safety and security solutions will help drive growth for our service providers and our business in global markets in the years ahead.”
Third Quarter 2023 Financial Results
- 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.
- Non-GAAP adjusted EBITDA increased to $41.4 million, compared to $40.8 million.
- Non-GAAP adjusted net income attributable to common stockholders increased to $30.6 million, or $0.56 per diluted share, compared to $30.1 million or $0.55 per diluted share.
Balance Sheet and Cash Flow
- Total cash and cash equivalents increased to $680 million as of Sept. 30, 2023, compared to $622.2 million as of Dec. 31, 2022. During the nine months ended Sept. 30, 2023, Alarm.com repurchased 239,540 shares of company stock at an average price of $53.66, for $12.9 million.
- For the three and nine months ended Sept. 30, 2023, cash flows from operations was $62.8 million and $96.1 million, respectively, compared to $10.2 million and $22.5 million for the same periods in the prior year.
- For the three and nine months ended Sept. 30, 2023, non-GAAP free cash flow was $60.9 million and $90.7 million, respectively, compared to $8.4 million and a loss of $5.6 million for the same periods in the prior year.
Recent Alarm.com Business Highlights
Alarm.com’s recently upgraded mobile app “offers a more immersive and intuitive user experience while also streamlining access to high-use capabilities such as live video feeds and video clips,” according to the company announcement.
An upgraded activity feed allows subscribers to scroll through a chronological view of activity at their property, including images from recorded video clips. Alarm.com developed the enhancements “to give subscribers frictionless access to high-value information and key commands that can drive system engagement,” the company announcement says.
In addition, Alarm.com’s video-only subscribers can now initiate a signal to a central station in an emergency directly from the Alarm.com mobile app to summon help to their property. Video clips associated with an incident can also be immediately shared with central station operators via Alarm.com’s Visual Verification platform.
Alarm.com expects fourth-quarter SaaS and license revenue to be in the range of $146 million to $146.2 million, with the total for the year between $566.9 million and $567.1 million. The company expects total revenue for 2023 to be in the range of $878.9 million to $881.1 million, including anticipated hardware and other revenue in the range of $312 million to $314 million.
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