Alarm.com Q3 2023 Earnings Report
Key Takeaways
Alarm.com reported a 2.6% increase in total revenue to $221.9 million and an increase in SaaS and license revenue by 8.9% to $145.0 million. GAAP net income attributable to common stockholders increased to $19.5 million, or $0.37 per diluted share. The company also provided its financial outlook for SaaS and license revenue for Q4 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.
SaaS and license revenue increased by 8.9% to $145.0 million compared to $133.1 million in Q3 2022.
Total revenue increased by 2.6% to $221.9 million compared to $216.1 million in Q3 2022.
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 in Q3 2022.
Non-GAAP adjusted EBITDA increased to $41.4 million, compared to $40.8 million in Q3 2022.
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Alarm.com Revenue by Segment
Forward Guidance
Alarm.com is providing its outlook for SaaS and license revenue for the fourth quarter of 2023 and increasing 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 based upon current management expectations.
Positive Outlook
- SaaS and license revenue is expected to be in the range of $146.0 million to $146.2 million for the fourth quarter of 2023.
- SaaS and license revenue is expected to be in the range of $566.9 million to $567.1 million for the full year of 2023.
- Total revenue is expected to be in the range of $878.9 million to $881.1 million for the full year of 2023, which includes anticipated hardware and other revenue in the range of $312.0 million to $314.0 million.
- Non-GAAP adjusted EBITDA is expected to be in the range of $143.0 million to $144.0 million for the full year of 2023.
- Non-GAAP adjusted net income attributable to common stockholders is expected to be in the range of $103.5 million to $105.0 million, based on an estimated tax rate of 21.0% for the full year of 2023.
Challenges Ahead
- The 2023 guidance provided is forward-looking in nature and actual results may differ materially.
- Guidance is based on expectations as of the date of the press release, and Alarm.com undertakes no obligation to update guidance after such date.
- Reconciliation of non-GAAP adjusted EBITDA and non-GAAP adjusted net income attributable to common stockholders guidance to the closest corresponding GAAP measure is not available without unreasonable efforts on a forward-looking basis.
- Non-ordinary course litigation expense, acquisition-related expense and tax windfall adjustments can have unpredictable fluctuations based on unforeseen activity that is out of Alarm.com's control and/or cannot reasonably be predicted.
- The above charges are expected to have a significant and potentially highly variable impact on Alarm.com's future GAAP financial results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income