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Sep 30, 2020

Alarm.com Q3 2020 Earnings Report

Reported strong results for the third quarter of 2020, with SaaS and license revenue increasing and GAAP net income rising significantly.

Key Takeaways

Alarm.com reported a strong third quarter in 2020, with total revenue increasing by 24.2% year-over-year to $158.9 million and SaaS and license revenue growing by 17.9% to $100.1 million. GAAP net income attributable to common stockholders was $36.1 million, a significant increase from $17.7 million in the same quarter of the previous year.

SaaS and license revenue increased 17.9% year-over-year to $100.1 million.

Total revenue increased 24.2% year-over-year to $158.9 million.

GAAP net income attributable to common stockholders was $36.1 million, compared to $17.7 million for the third quarter of 2019.

Non-GAAP adjusted EBITDA increased 31.1% year-over-year to $34.5 million.

Total Revenue
$159M
Previous year: $128M
+24.2%
EPS
$0.49
Previous year: $0.37
+32.4%
Gross Profit
$97.7M
Previous year: $80.4M
+21.5%
Cash and Equivalents
$247M
Previous year: $164M
+50.4%
Free Cash Flow
$15.1M
Previous year: -$3.97M
-480.2%
Total Assets
$698M
Previous year: $501M
+39.3%

Alarm.com

Alarm.com

Alarm.com Revenue by Segment

Forward Guidance

Alarm.com provided guidance for the fourth quarter of 2020 and increased its guidance for the full year of 2020.

Positive Outlook

  • SaaS and license revenue is expected to be in the range of $101.2 million to $101.4 million for Q4 2020.
  • SaaS and license revenue is expected to be in the range of $389.0 million to $389.2 million for the full year 2020.
  • Total revenue is expected to be in the range of $594.0 million to $604.2 million for the full year 2020.
  • Hardware and other revenue is anticipated to be in the range of $205.0 million to $215.0 million for the full year 2020.
  • Non-GAAP adjusted EBITDA is expected to be in the range of $113.0 million to $115.0 million for the full year 2020.

Challenges Ahead

  • The general economic situation remains fluid.
  • It remains challenging to predict the full scope and duration of the impacts of the COVID-19 pandemic.
  • Actual results may differ materially from guidance.
  • The guidance is based on expectations as of the date of the press release.
  • Alarm.com undertakes no obligation to update guidance after such date.

Revenue & Expenses

Visualization of income flow from segment revenue to net income