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Dec 31, 2022

Alarm.com Q4 2022 Earnings Report

Alarm.com reported solid results for Q4 2022, with increased SaaS and license revenue, total revenue and GAAP net income.

Key Takeaways

Alarm.com's Q4 2022 results showed strong growth in key areas. SaaS and license revenue increased by 10.5% year-over-year, while total revenue grew by 6.6%. GAAP net income attributable to common stockholders saw a significant increase of 97.7%. The company also provided financial outlook for Q1 2023 and full year 2023, indicating continued growth.

SaaS and license revenue increased 10.5% year-over-year to $134.6 million.

Total revenue increased 6.6% year-over-year to $208.1 million.

GAAP net income attributable to common stockholders increased 97.7% to $18.1 million.

Non-GAAP adjusted EBITDA increased 24.5% to $39.0 million.

Total Revenue
$208M
Previous year: $195M
+6.6%
EPS
$0.53
Previous year: $0.43
+23.3%
Gross Profit
$129M
Previous year: $113M
+13.9%
Cash and Equivalents
$622M
Previous year: $711M
-12.4%
Free Cash Flow
$33.9M
Previous year: $17.8M
+90.0%
Total Assets
$1.33B
Previous year: $1.23B
+7.9%

Alarm.com

Alarm.com

Alarm.com Revenue by Segment

Forward Guidance

Alarm.com provided its outlook for SaaS and license revenue for the first quarter of 2023 and its guidance for the full year of 2023 based upon current management expectations. This guidance assumes no contribution from the Vivint license agreement.

Positive Outlook

  • SaaS and license revenue is expected to be in the range of $132.4 million to $132.6 million for the first quarter of 2023.
  • SaaS and license revenue is expected to be in the range of $551.5 million to $552.5 million for the full year 2023.
  • Total revenue is expected to be in the range of $851.5 million to $877.5 million for the full year 2023, which includes anticipated hardware and other revenue in the range of $300.0 million to $325.0 million.
  • Non-GAAP adjusted EBITDA is expected to be in the range of $115.0 million to $125.0 million for the full year 2023.
  • Non-GAAP adjusted net income attributable to common stockholders is expected to be in the range of $79.7 million to $86.5 million, based on an estimated tax rate of 21.0% for the full year 2023.

Challenges Ahead

  • Assumes no contribution from the Vivint license agreement.
  • SaaS and license revenue, total revenue, earnings and cash flow will be impacted by approximately $6.0 million each quarter due to Vivint license agreement, plus significant additional legal fees.
  • Assumed no additional unusual impact from the COVID-19 pandemic.
  • Assumed no other material geopolitical events which might disrupt business, supply chains or otherwise impact results.
  • Actual results may differ materially.

Revenue & Expenses

Visualization of income flow from segment revenue to net income