Alarm.com Posts Q1 Results, Besting Wall Street Estimates
The smart home services platform provider reported SaaS and license revenue increased 26% to $50.2 million for the first quarter of 2017.
TYSONS, Va. – Alarm.com (NASDAQ: ALRM) on Tuesday reported first-quarter profit of $4 million, besting Wall Street expectations.
The company, based here, reported a profit of 8 cents per share. Earnings, adjusted for one-time gains and costs, were 23 cents per share. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 15 cents per share.
Alarm.com reported revenue of $74.2 million in the period, also beating Wall Street forecasts. Five analysts surveyed by Zacks forecasted $69.4 million.
The company said it expects full-year earnings in the range of 74 cents to 76 cents per share.
ALRM shares have increased 17% since the beginning of the year. In the final minutes of trading on Tuesday, shares hit $32.58, an increase of 49% in the last 12 months.
Software as a service (SaaS) and license revenue increased 26% to $50.2 million for the first quarter, compared to $40 million during the same period the prior year. First quarter financials include the partial quarter results from the Connect and Piper business units, following the closing of the acquisition on March 8.
Full-year SaaS and license revenue is expected between $231.7 million to $232.7 million.
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Total revenue is expected to be in the range of $322.7 million to $325.7 million, which includes anticipated hardware and other revenue for the year in the range of $91 million to $93 million. Adjusted EBITDA is projected to be in the range of $65.5 million to $66.5 million.
During an earnings call on Tuesday, Alarm.com President and CEO Steve Trundle highlighted the strength of the company’s service provider channel and the technology it provides to enable them to efficiently deploy and manage solutions to their customers.
“As we deploy fully integrated solutions around otherwise disparate devices, our service providers can extend security, awareness and convenience to more aspects of their customers’ home and businesses,” Trundle said.
The company also summarized new features it added to its mobile app for service provider partners during the quarter. These included MobileTech, an installation and support app for technicians, which include new features to help ensure reliable installations and rapid troubleshooting, account setup and device enrollment, full access to security panel settings and comprehensive system diagnostics.
During the earnings call, Trundle also discussed the company’s recently announced Business Intelligence offering and the best practices that service providers can follow to lower attrition.
“Business Intelligence is an enterprise-grade analytics solution that helps our service providers implement a specific set of installation and service best practices that have been proven to increase account retention,” he explained. “Executives and managers can see how branches, teams and individuals are implementing best practice across the sales, installation and support processes of their business.”
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