Alarm.com Sees Q2 Revenue Up 16% Despite Coronavirus
The security and home automation provider also saw SaaS and license revenue increase 16.2% to $95.7 million, compared to $82.3 million in Q2 of 2019.
TYSONS, Va. —Alarm.com (Nasdaq: ALRM) has reported financial results for its second quarter ended June 30, 2020. The company reported quarterly earnings of $0.41 per share, beating the Zacks Consensus Estimate of $0.31 per share.
“While we saw some modest disruption, Alarm.com’s service provider partners and our team continued to execute effectively in delivering innovative technology solutions to millions of properties through the ongoing COVID-19 pandemic,” says Steve Trundle, president and CEO of Alarm.com. “As a result, I’m pleased to report solid second quarter results. Our markets continued to show positive momentum, and we remain in a strong position to manage through the uncertainty caused by the pandemic.”
Second quarter 2020 financial results as compared to second quarter 2019:
- SaaS and license revenue increased 16.2% to $95.7 million, compared to $82.3 million.
- Total revenue increased 16.4% to $141.6 million, compared to $121.7 million.
- GAAP net income attributable to common stockholders was $17.0 million, or $0.34 per diluted share, compared to $13.8 million, or $0.27 per diluted share.
- Non-GAAP adjusted EBITDA increased to $29.2 million, compared to $27.7 million.
- Non-GAAP adjusted net income attributable to common stockholders increased to $20.6 million, or $0.41 per diluted share, compared to $19.9 million or $0.40 per diluted share.
Balance sheet and cash flow:
- Total cash and cash equivalents increased to $205.8 million as of June 30, 2020, compared to $119.6 million as of Dec. 31, 2019.
- For the quarter ended June 30, 2020, cash flows from operations was $35.1 million and free cash flow was $31.8 million, compared to cash flows from operations of $24.1 million and free cash flow of $21.3 million for the quarter ended June 30, 2019.
The second quarter saw OpenEye, which was acquired by Alarm.com last October, launch a new Software-as-a-Service application. OWS 24/7 Lite is a scalable and flexible subscription software service that simplifies system management, improves cyber and physical security, and increases operational intelligence, according to the company.
Alarm.com was also selected by Johnson Controls to act as its global interactive services platform provider in 13 countries in Asia, Europe
and Latin America.
The company also provided its financial outlook for SaaS and license revenue for the third quarter of 2020 and increased its guidance for the full year of 2020.
For the third quarter of 2020:
- SaaS and license revenue is expected to be in the range of $96.6 million to $96.8 million.
For the full year of 2020:
- SaaS and license revenue is expected to be in the range of $382.7 million to $383.1 million.
- Total revenue is expected to be in the range of $552.7 million to $563.1 million, which includes anticipated hardware and other revenue in the range of $170.0 million to $180.0 million.
- Non-GAAP adjusted EBITDA is expected to be in the range of $106.0 million to $107.0 million.
- Non-GAAP adjusted net income attributable to common stockholders is expected to be in the range of $74.2 million to $74.9 million, based on an estimated tax rate of 21.0%.
- Based on an expected 50.8 million weighted average diluted shares outstanding, non-GAAP adjusted net income attributable to common stockholders is expected to be $1.46 to $1.47 per diluted share.
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