Alarm.com Q1 Revenues Rise Slight 2.1%
Alarm.com total revenues for Q1 2023 hit $209.7 million. Saas and license revenues rise 9.9% to $135.4 million.
Following quarter after quarter of double-digit revenue increases, Alarm.com (Nasdaq: ALRM) eked out just a 2.1% revenue increase for the first quarter of 2023. Total revenues were $209.7 million for the quarter versus $205.4 million last year. The revenues were more impressive for the company’s bread-and-butter income source of Software as a Service (SaaS). Alarm.com’s SaaS and license revenue increase 9.9% to $135.4 million compared to $123.2 million last year. EBITDA increased to $30.6 million, compared to $29.9 million for the first quarter of 2022.
“We’re pleased to report solid first quarter results and continued momentum across the business to start the new year,” said Steve Trundle, CEO of Alarm.com, based in Tysons, Va. “Many of the markets we serve performed well and aggregate performance was better than expected. As we continue to grow our diversified business, we also executed on a set of cost reduction initiatives to enhance company efficiency.”
Looking ahead, the company’s SaaS and license revenue is expected to be in the range of $137.2 million to $137.4 million for Q2. For the full year of 2023, SaaS and license revenue is expected to be in the range of $555.9 million to $556.5 million. Total revenue is expected to be in the range of $855.9 million to $881.5 million, which includes anticipated hardware and other revenue in the range of $300 million to $325 million. Alarm.com has total cash and cash equivalents $606.4 million.
Among the company’s highlights for Q1 are the launch of a new software solution from OpenEye that integrates environmental sensors to trigger alerts and video based on events of interest, including new Vaping Alerts for school settings. OpenEye also launched Sales Connect, which combines point-of-sale (POS) system data with video. Subscribers can create custom alerts and conduct forensic searches through OpenEye’s intuitive interface based on detailed transaction data, including product SKUs, User ID and transaction type. Sales Connect is designed to enable OpenEye’s integrator partners to deliver a more robust solution for significant verticals such as retail, grocery and quick-serve restaurants.
On the international front, Alarm.com recently acquired EBS, a leader in universal smart communicator devices particularly for the international markets. When fully integrated with the Alarm.com platform, EBS communicators are expected to enable Alarm.com’s services to work with a wide range of legacy security control panels commonly deployed in international markets. The company has two locations in Poland: a headquarters in Warsaw, and an engineering and production facility in Elk.
Lastly, Shooter Detection Systems (SDS) announced integration with Alarm.com for Business that will allow integrators to offer SDS indoor gunshot detection as a SaaS solution for commercial properties. SDS dual-factor sensors instantly detect indoor gunshots with high accuracy. With SDS integrated with Alarm.com, subscribers can monitor and track the location of gunshots, quickly view videos of the time and place that gunshots occurred and share critical situational awareness information with first responders, all with no onsite software installation required.
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