Alarm.com Announces Business Update, Preliminary 2022 Third Quarter Financial Results, and Earnings Release Date
28 October 2022 - 7:10AM
Business Wire
Alarm.com Holdings, Inc. (Nasdaq: ALRM), the leading platform
for the intelligently connected property, today announced that
Vivint Inc. has notified the company that it will stop paying
license fees to Alarm.com under the Patent Cross License Agreement
between the companies. Vivint has paid the required licensing fees
to Alarm.com since the agreement was executed in November 2013.
Alarm.com disputes Vivint’s refusal of payment, has filed for
arbitration per the agreement, and is actively evaluating
additional legal remedies.
Beginning with the fourth quarter of 2022, Alarm.com believes
that quarterly SaaS and license revenue and total revenue will be
impacted by approximately $6 million, or 2.8% of total revenue in
the fourth quarter of 2022. Alarm.com also believes that quarterly
earnings and cashflow will be impacted by the aforementioned $6
million, plus additional legal fees.
Alarm.com is also releasing preliminary third quarter 2022
financial results.
- Third quarter SaaS and license revenue is expected to be
between $132.8 million and $133 million, compared to the company’s
guidance of $130.9 million to $131.1 million.
- Third quarter hardware revenue is expected to be between $82.0
million and $82.5 million.
- Third quarter total revenue is expected to be between $215
million and $215.5 million.
The foregoing expected results are preliminary and are subject
to change based on the completion of the company’s quarter-end
review process. These preliminary financial results include
calculations or figures that have been prepared internally by
management and have not been reviewed by the company’s independent
registered public accounting firm.
Alarm.com will discuss these developments and report final 2022
third quarter financial results after the market close on Tuesday,
November 8, 2022. Management will host a conference call and
webcast at 4:30 p.m. ET that same day.
Please click here to pre-register for the conference call and
obtain your dial in number and individual passcode.
You can also listen to the call via webcast on Alarm.com’s
investor relations website. A recorded version will be available
under the same link following the conclusion of the conference
call.
About Alarm.com Holdings, Inc.
Alarm.com is the leading platform for the intelligently
connected property. Millions of consumers and businesses depend on
Alarm.com's technology to manage and control their property from
anywhere. Our platform integrates with a growing variety of
Internet of Things (IoT) devices through our apps and interfaces.
Our security, video, access control, intelligent automation, energy
management, and wellness solutions are available through our
network of thousands of professional service providers in North
America and around the globe. Alarm.com's common stock is traded on
Nasdaq under the ticker symbol ALRM. For more information, please
visit www.alarm.com.
Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements may be identified by their
use of terms and phrases such as “anticipate,” “believe,”
“continue,” “designed,” “enable,” “ensure,” “expect,” “intend,”
“will,” and other similar terms and phrases, and such
forward-looking statements include, but are not limited to, the
statements regarding the Company’s preliminary estimates for SaaS
and license revenue, hardware revenue and total revenue for the
third quarter of 2022 and the impact of the Vivint dispute on
future quarterly revenue. The events described in these
forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual results to
differ materially from the results anticipated by these
forward-looking statements, including, but not limited to: an
arbitrator’s ruling on and/or outcome of the Company’s contractual
dispute with Vivint; the Company’s actual operating results and
business operations may be negatively impacted by the anticipated
impact of the global economic uncertainty and financial market
conditions caused by significant worldwide events, including public
health crises, such as the COVID-19 pandemic, and geopolitical
upheaval, such as Russia’s incursion into Ukraine (collectively
Macroeconomic Conditions). Macroeconomic Conditions and their
economic effects may reduce demand, the reliability of the
Company’s network operations centers, the Company’s ability to
retain service provider partners and residential and commercial
subscribers and sustain its growth rate, the Company’s ability to
manage growth and execute on its business strategies, the effects
of increased competition and evolving technologies, the Company’s
ability to integrate acquired assets and businesses and to manage
service provider partners, customers and employees, consumer demand
for interactive security, video monitoring, intelligent automation,
energy management and wellness solutions, the Company’s reliance on
its service provider network to attract new customers and retain
existing customers, the Company's dependence on its suppliers, the
potential loss of any key supplier or the inability of a key
supplier to deliver their products to us on time or at the
contracted price, the reliability of the Company’s hardware and
wireless network suppliers and enhanced United States tax, tariff,
import/export restrictions, or other trade barriers, particularly
tariffs from China as well as other risks and uncertainties
discussed in the “Risk Factors” section of the Company’s Quarterly
Report on Form 10-Q for the quarter ended June 30, 2022 filed with
the Securities and Exchange Commission on August 9, 2022 and other
subsequent filings the Company makes with the Securities and
Exchange Commission from time to time, including its Form 10-Q for
the quarter ended September 30, 2022. In addition, the
forward-looking statements included in this press release represent
the Company’s views and expectations as of the date hereof and are
based on information currently available to the Company. The
Company anticipates that subsequent events and developments may
cause the Company’s views to change. However, while the Company may
elect to update these forward-looking statements at some point in
the future, the Company specifically disclaims any obligation to do
so except as required by law. These forward-looking statements
should not be relied upon as representing the Company’s views as of
any date subsequent to the date hereof.
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version on businesswire.com: https://www.businesswire.com/news/home/20221027006086/en/
Investor & Media Relations: Matthew Zartman Alarm.com
ir@alarm.com
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