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Dec 31, 2024

Alarm.com Q4 2024 Earnings Report

Alarm.com reported steady Q4 2024 results with revenue and SaaS growth, though net income saw a slight decline.

Key Takeaways

Alarm.com reported a 7.1% increase in total revenue for Q4 2024, reaching $242.2 million, driven by an 11.7% rise in SaaS and license revenue. However, GAAP net income declined slightly to $30.1 million. Adjusted EBITDA remained stable at $46.4 million. The company continues to expand its AI-driven analytics and remote video monitoring solutions.

Total revenue grew 7.1% year-over-year to $242.2 million.

SaaS and license revenue increased 11.7% to $165.7 million.

GAAP net income declined to $30.1 million from $31.2 million in Q4 2023.

Non-GAAP EPS was $0.58, compared to $0.62 in Q4 2023.

Total Revenue
$242M
Previous year: $226M
+7.1%
EPS
$0.58
Previous year: $0.62
-6.5%
Cash and Equivalents
$1.22B
Previous year: $697M
+75.1%
Free Cash Flow
$54M
Previous year: $37.7M
+43.2%
Total Assets
$2.04B
Previous year: $1.44B
+41.6%

Alarm.com

Alarm.com

Alarm.com Revenue by Segment

Forward Guidance

Alarm.com expects steady revenue growth in 2025, particularly in SaaS and license segments, while macroeconomic conditions could impact hardware sales.

Positive Outlook

  • Q1 2025 SaaS and license revenue expected between $160.2M and $160.4M.
  • FY 2025 SaaS and license revenue projected between $671.2M and $671.8M.
  • FY 2025 total revenue expected to range from $978.2M to $980.8M.
  • Continued expansion in remote video monitoring solutions with CHeKT acquisition.
  • Strong demand for AI-driven analytics in commercial security.

Challenges Ahead

  • GAAP net income could be affected by rising operating expenses.
  • Hardware revenue growth expected to remain flat.
  • Macroeconomic uncertainty may impact customer spending on security solutions.
  • Foreign exchange fluctuations could affect international revenue.
  • Higher cost structure due to ongoing investments in AI and video analytics.