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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 22, 2024
 
ALARM.COM HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Delaware 001-37461 26-4247032
(State or other jurisdiction
of incorporation)		 (Commission
File Number)		 (IRS Employer
Identification No.)
    
8281 Greensboro DriveSuite 100TysonsVirginia 
22102
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (877) 389-4033
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $0.01 par value per shareALRMThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Item 2.02 Results of Operations and Financial Condition.

On February 22, 2024, Alarm.com Holdings, Inc. (the "Company") issued a press release (the "Press Release") announcing its financial results for the quarter and year ended December 31, 2023. A copy of the Press Release is furnished hereto as Exhibit 99.1 and is incorporated herein by reference.

The information in this Current Report on Form 8-K, including the Press Release attached as Exhibit 99.1 hereto, is furnished under Item 2.02 and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any of the Company's filings under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.
 
(d)Exhibits
Exhibit No.  Description
  
104Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document)

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Alarm.com Holdings, Inc.
Date:February 22, 2024
By:/s/ Steve Valenzuela
 Steve Valenzuela
 Chief Financial Officer
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Exhibit 99.1

Alarm.com Reports Fourth Quarter and Full Year 2023 Results

-- Fourth quarter SaaS and license revenue increased to $148.3 million, compared to $134.6 million for the fourth quarter of 2022 --
-- Fourth quarter GAAP net income attributable to common stockholders increased to $31.3 million, compared to $18.1 million for the fourth quarter of 2022--
-- Full year 2023 SaaS and license revenue increased to $569.2 million, compared to $520.4 million for 2022 --
-- Full year 2023 GAAP net income attributable to common stockholders increased to $81.0 million, compared to $56.3 million for 2022 --
-- Full year 2023 non-GAAP adjusted EBITDA increased to $154.0 million, compared to $146.8 million for 2022 --

TYSONS, VA., February 22, 2024 -- Alarm.com Holdings, Inc. (Nasdaq: ALRM), the leading platform for the intelligently connected property, today reported financial results for its fourth quarter and full year ended December 31, 2023. Alarm.com also provided its financial outlook for SaaS and license revenue for the first quarter of 2024 and guidance for the full year 2024.

“We are pleased to report solid results for the quarter and the year,” said Steve Trundle, CEO of Alarm.com. “During the year, we drove growth on a global basis through our increasingly diverse suite of connected property solutions and delivered best-in-class technology and support for our service provider partners. The Alarm.com team also continued to efficiently execute our long-term strategy for expanding our market opportunities through our growth initiatives."

Fourth Quarter 2023 Financial Results as Compared to Fourth Quarter 2022

•SaaS and license revenue increased 10.3% to $148.3 million, compared to $134.6 million.
•Total revenue increased 8.7% to $226.2 million, compared to $208.1 million.
•GAAP net income attributable to common stockholders increased to $31.3 million, or $0.58 per diluted share, compared to $18.1 million, or $0.34 per diluted share.
•Non-GAAP adjusted EBITDA(*) increased to $45.6 million, compared to $39.0 million.
•Non-GAAP adjusted net income attributable to common stockholders(*) increased to $33.9 million, or $0.62 per diluted share, compared to $28.7 million, or $0.53 per diluted share.

Full Year 2023 Financial Results as Compared to Full Year 2022

•SaaS and license revenue increased 9.4% to $569.2 million, compared to $520.4 million.
•Total revenue increased 4.6% to $881.7 million, compared to $842.6 million.
•GAAP net income attributable to common stockholders increased to $81.0 million, or $1.53 per diluted share, compared to $56.3 million, or $1.07 per diluted share.
•Non-GAAP adjusted EBITDA(*) increased to $154.0 million, compared to $146.8 million.
•Non-GAAP adjusted net income attributable to common stockholders(*) increased to $113.2 million, or $2.07 per diluted share, compared to $106.9 million, or $1.95 per diluted share.

Balance Sheet and Cash Flow

•Total cash and cash equivalents increased to $697.0 million as of December 31, 2023, compared to $622.2 million as of December 31, 2022. During the year ended December 31, 2023, we repurchased 487,918 shares of Alarm.com common stock at an average price of $55.95 for $27.3 million.
•For the quarter ended December 31, 2023, cash flows from operations was $39.9 million, compared to $34.4 million for the quarter ended December 31, 2022. For the quarter ended December 31, 2023, non-GAAP free cash flow(*) was $37.7 million, compared to $33.9 million for the quarter ended December 31, 2022. For the year ended December 31, 2023, cash flows from operations was $136.0 million, compared to $56.9 million for the year ended December 31, 2022. For the year ended December 31, 2023, non-GAAP free cash flow(*) was $128.4 million, compared to $28.3 million for the year ended December 31, 2022.

(*) Reconciliations of the non-GAAP measures are set forth at the end of this press release.

Recent Business Highlights

•Introduced Property Actions to Alarm Response Software: During an alarm event, Alarm.com’s monitoring station partners can now respond by unlocking doors and turning on lights at the affected property. The new controls can facilitate property access for first responders and keep property owners safer during emergencies. The new controls augment Alarm.com’s expanding range of AI-powered alarm verification capabilities, which include Enhanced Visual Verification, Person On-Site Indicator and Escalated Events. Robust privacy controls give subscribers tight control over which devices a monitoring agent can access and real-time visibility into all actions taken by the operator.
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•Launched New Video Analytics Rule for Privacy Control: Vacation Watch allows subscribers to schedule video monitoring start and end times providing continuous protection during extended absences. Cameras automatically disable recording based on the subscriber’s return schedule, reinforcing privacy, and preventing unwarranted monitoring escalations. Vacation Watch works with Alarm.com’s Escalated Events capability to automatically forward video-triggered events to the monitoring station for assessment and possible intervention.

•EnergyHub Announces Record-Setting Program Launch: Ontario Canada's Independent Electricity System Operator (IESO) partnered with EnergyHub to launch its Save on Energy Peak Perks™ demand side management program. In its first six months, the program enrolled more than 100,000 homes, creating Canada’s largest residential virtual power plant. It is also the fastest-growing program in EnergyHub’s decade-plus experience.

•Settled All Vivint Litigation and Entered into New License Agreement: Alarm.com resolved all outstanding litigation with Vivint and entered into a long-term intellectual property license agreement under which Alarm.com will license to Vivint its intellectual property portfolio.

Financial Outlook

Alarm.com is providing its outlook for SaaS and license revenue for the first quarter of 2024 and its guidance for the full year 2024 based upon current management expectations.

For the first quarter of 2024:

•SaaS and license revenue is expected to be in the range of $148.6 million to $148.8 million.

For the full year 2024:

•SaaS and license revenue is expected to be in the range of $622.5 million to $623.5 million.
•Total revenue is expected to be in the range of $912.5 million to $933.5 million, which includes anticipated hardware and other revenue in the range of $290.0 million to $310.0 million.
•Non-GAAP adjusted EBITDA is expected to be in the range of $160.0 million to $164.0 million.
•Non-GAAP adjusted net income attributable to common stockholders is expected to be in the range of $116.0 million to $118.1 million, based on an estimated tax rate of 21.0%.
•Based on an expected 55.2 million weighted average diluted shares outstanding, non-GAAP adjusted net income attributable to common stockholders is expected to be $2.10 to $2.14 per diluted share.

The 2024 guidance provided above is forward-looking in nature. Actual results may differ materially. See the cautionary note regarding “Forward-Looking Statements” below. The guidance provided above is based on expectations as of the date of this press release and Alarm.com undertakes no obligation to update guidance after such date.

Conference Call and Webcast Information

Alarm.com will host a conference call to discuss its fourth quarter and full year 2023 financial results and its outlook for the first quarter and full year 2024. A live audio webcast is scheduled to begin at 4:30 p.m. ET on February 22, 2024. To participate on the live call, analysts and investors should pre-register to obtain a dial-in number and individual passcode by visiting: https://register.vevent.com/register/BI4d251344f3314a96af594eb467efb941. Alarm.com will also offer a live and archived webcast of the conference call accessible on Alarm.com’s Investor Relations website at http://investors.alarm.com. The information contained on any referenced website is not incorporated herein.

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 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.

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Non-GAAP Financial Measures

To supplement our consolidated selected financial data presented on a basis consistent with GAAP, this press release contains certain non-GAAP financial measures, including non-GAAP adjusted EBITDA, non-GAAP adjusted income before income taxes, non-GAAP adjusted net income, non-GAAP adjusted income attributable to common stockholders before income taxes, non-GAAP adjusted net income attributable to common stockholders, non-GAAP adjusted net income attributable to common stockholders per share, non-GAAP free cash flow, non-GAAP adjusted SaaS and license revenue and non-GAAP adjusted SaaS and license revenue growth rate. We have included non-GAAP measures in this press release because they are financial, operating or liquidity measures used by our management to (i) understand and evaluate our core operating performance and trends and generate future operating plans, (ii) make strategic decisions regarding the allocation of capital and investments in initiatives that are focused on cultivating new markets for our solutions and (iii) provide useful information to management about the amount of cash generated by the business after necessary capital expenditures. We also use non-GAAP adjusted EBITDA as a performance measure under our executive bonus plan. Further, we believe that these non-GAAP measures of our financial results provide useful information to investors and others in understanding and evaluating our results of operations, business trends and financial condition. While we believe the use of these non-GAAP measures provides useful information to investors and management in analyzing our financial performance, non-GAAP measures have inherent limitations in that they do not reflect all of the amounts and transactions that are included in our financial statements prepared in accordance with GAAP. Non-GAAP measures do not serve as an alternative to GAAP nor do we consider our non-GAAP measures in isolation. Accordingly, we present non-GAAP financial measures only in connection with GAAP results. We urge investors to consider non-GAAP measures only in conjunction with our GAAP financials and to review the reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measures, which are included in this press release.

We consider non-GAAP free cash flow to be a liquidity measure, which we define as cash flows from operating activities less purchases of property and equipment.

With respect to our expectations under “Financial Outlook” above, 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 due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures. In particular, non-ordinary course litigation expense, acquisition-related expense and tax windfall adjustments can have unpredictable fluctuations based on unforeseen activity that is out of our control and/or cannot reasonably be predicted. We expect the above charges to have a significant and potentially highly variable impact on our future GAAP financial results.

We exclude one or more of the following items from non-GAAP financial and operating measures:

Interest expense: We record interest expense primarily related to the January 2021 issuance of $500.0 million aggregate principal amount of 0% convertible senior notes due January 15, 2026, or the 2026 Notes. We exclude interest expense in calculating our non-GAAP adjusted EBITDA. For non-GAAP adjusted net income, non-GAAP adjusted net income attributable to common stockholders and non-GAAP adjusted net income attributable to common stockholders per share, basic and diluted, we do not exclude interest expense other than the interest expense related to the amortization of debt issuance costs and debt discount related to the 2026 Notes as discussed below.

Interest income and certain activity within other income / (expense), net: We exclude interest income as well as certain activity within other income / (expense), net including gains, losses or impairments on investments and other assets, gains on settlement fees as well as losses on the early extinguishment of the debt, when applicable, from our non-GAAP financial measures because we do not consider it part of our ongoing results of operations.

Provision for / (benefit from) income taxes: We exclude the impact related to our provision for / (benefit from) income taxes from our non-GAAP adjusted EBITDA calculation. We do not consider this tax adjustment to be part of our ongoing results of operations.

Amortization expense: GAAP requires that operating expenses include the amortization of acquired intangible assets, which principally include acquired customer relationships, developed technology and trade names. We exclude amortization of intangibles from our non-GAAP financial measures because we do not consider amortization expense when we evaluate our ongoing business operations, nor do we factor amortization expense into our evaluation of potential acquisitions, or our measurement of the performance of those acquisitions. We believe that the exclusion of amortization expense enables the comparison of our performance to other companies in our industry as other companies may be more or less acquisitive than us and therefore, amortization expense may vary significantly by company based on their acquisition history. Although we exclude amortization of acquired intangible assets from our non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.

Depreciation expense: We record depreciation primarily for investments in property and equipment. We exclude depreciation in calculating non-GAAP adjusted EBITDA because we do not consider depreciation when we evaluate our ongoing business
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operations. For non-GAAP adjusted net income, non-GAAP adjusted net income attributable to common stockholders and non-GAAP adjusted net income attributable to common stockholders per share, basic and diluted, we do not exclude depreciation.

Amortization of debt issuance costs and debt discount: We record amortization of debt issuance costs and previously recorded amortization of debt discount related to the 2026 Notes as interest expense. We exclude amortization of debt issuance costs and debt discount from our non-GAAP adjusted net income, non-GAAP adjusted net income attributable to common stockholders and non-GAAP adjusted net income attributable to common stockholders per share, basic and diluted, because we believe that the exclusion of this non-cash interest expense will provide for more meaningful information about our financial performance.

Stock-based compensation expense: We exclude stock-based compensation expense, which relates to restricted stock units and other forms of equity incentives primarily awarded to employees of Alarm.com, because they are non-cash charges that we do not consider when assessing the operating performance of our business. Additionally, the determination of stock-based compensation expense can be calculated using various methodologies and is dependent upon subjective assumptions and other factors that vary on a company-by-company basis. Therefore, we believe that excluding stock-based compensation expense from our non-GAAP financial measures improves the comparability of our results to the results of other companies in our industry.

Acquisition-related expense: Included in operating expenses are incremental costs directly related to business and asset acquisitions as well as changes in the fair value of contingent consideration liabilities, when applicable. We exclude acquisition-related expense from our non-GAAP financial measures because we believe that the exclusion of this expense allows us to better provide meaningful information about our operating performance, facilitates comparisons to our historical operating results, improves the comparability of our results to the results of other companies in our industry, and ultimately, we believe helps investors better understand the acquisition-related expense and the effects of the transaction on our results of operations.

Litigation expense: We exclude non-ordinary course litigation expense because we do not consider legal costs and settlement fees incurred and received in litigation and litigation-related matters of non-ordinary course lawsuits and other disputes, particularly costs incurred in ongoing intellectual property litigation, to be indicative of our core operating performance. We do not adjust for ordinary course legal expenses, including those expenses resulting from maintaining and enforcing our intellectual property portfolio and license agreements.

Vivint license revenue: We excluded Vivint license revenue from our non-GAAP adjusted SaaS and license revenue and non-GAAP adjusted SaaS and license revenue growth rate because we believe that this exclusion will provide more meaningful information about our financial performance on a comparable basis, given that we were not recording Vivint license revenue effective beginning in the fourth quarter of 2022 and through December 31, 2023. On December 21, 2023, Alarm.com and Vivint agreed to settle all outstanding litigation between the parties and to enter into a long-term intellectual property license agreement under which Alarm.com will license to Vivint its intellectual property portfolio.

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 opportunities, positioning, the benefits of recently launched offerings, acquisitions and investments, and the Company’s guidance for the first quarter and full year 2024 described under “Financial Outlook” above and key assumptions related thereto. 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: impact of the global economic uncertainty and financial market conditions caused by significant worldwide events, including public health crises, geopolitical upheaval, such as Russia’s incursion into Ukraine and the war between Israel and Hamas, supply chain disruptions, interest rates and inflation (collectively, Macroeconomic Conditions); impact of Macroeconomic Conditions and their economic effects on demand for the Company's products; 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; and other risks and uncertainties discussed in the “Risk Factors” section of the Company’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 9, 2023 and other subsequent filings the Company makes with the Securities and Exchange Commission from time to time, including its Form 10-K for the year ended December 31, 2023. 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
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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.


Investor & Media Relations:
Matthew Zartman
Alarm.com
ir@alarm.com

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ALARM.COM HOLDINGS, INC.
Consolidated Statements of Operations
(in thousands, except share and per share data)

Three Months Ended 
 December 31,		Year Ended December 31,
 20232022202320222021
Revenue:
SaaS and license revenue$148,347 $134,551 $569,200 $520,377 $460,372 
Hardware and other revenue77,890 73,588 312,482 322,182 288,597 
Total revenue226,237 208,139 881,682 842,559 748,969 
Cost of revenue(1):
Cost of SaaS and license revenue22,822 19,878 85,898 73,897 66,758 
Cost of hardware and other revenue58,393 59,694 239,261 268,684 239,141 
Total cost of revenue81,215 79,572 325,159 342,581 305,899 
Operating expenses:
Sales and marketing25,948 23,566 100,226 92,748 86,664 
General and administrative24,177 25,374 112,930 106,688 87,406 
Research and development61,274 57,408 245,114 218,635 177,713 
Amortization and depreciation7,943 7,747 31,424 30,870 29,715 
Total operating expenses119,342 114,095 489,694 448,941 381,498 
Operating income25,680 14,472 66,829 51,037 61,572 
Interest expense(828)(788)(3,429)(3,144)(15,956)
Interest income8,709 4,697 29,801 8,759 587 
Other income / (expense), net5,838 (101)4,624 (59)(134)
Income before income taxes39,399 18,280 97,825 56,593 46,069 
Provision for / (benefit from) income taxes8,228 490 17,485 962 (5,106)
Net income31,171 17,790 80,340 55,631 51,175 
Net loss attributable to redeemable noncontrolling interests133 295 703 707 1,084 
Net income attributable to common stockholders$31,304 $18,085 $81,043 $56,338 $52,259 
Per share information attributable to common stockholders:
Net income per share:
Basic$0.63 $0.36 $1.63 $1.13 $1.05 
Diluted$0.58 $0.34 $1.53 $1.07 $1.01 
Weighted average common shares outstanding:
Basic49,924,910 49,781,756 49,818,448 49,926,236 49,869,857 
Diluted54,711,605 54,534,956 54,625,434 54,932,757 51,919,902 
 ______________________________
(1) Exclusive of amortization and depreciation shown in operating expenses below.
Stock-based compensation expense data:Three Months Ended 
 December 31,		Year Ended December 31,
 20232022202320222021
Cost of hardware and other revenue
$2 $— $5 $— $— 
Sales and marketing744 861 3,522 4,342 4,432 
General and administrative3,155 3,902 13,028 15,037 9,941 
Research and development6,959 9,838 30,728 33,275 24,321 
Total stock-based compensation expense$10,860 $14,601 $47,283 $52,654 $38,694 
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ALARM.COM HOLDINGS, INC.
Consolidated Balance Sheets
(in thousands, except share and per share data)

December 31,
20232022
Assets
Current assets:
Cash and cash equivalents$696,983 $622,165 
Accounts receivable, net of allowance for credit losses of $3,864 and $2,835, and net of allowance for product returns of $2,279 and $1,551, as of December 31, 2023 and 2022, respectively
130,626 124,283 
Inventory96,140 115,584 
Other current assets, net
33,031 29,056 
Total current assets956,780 891,088 
Property and equipment, net54,164 57,172 
Intangible assets, net78,564 82,458 
Goodwill154,498 148,183 
Deferred tax assets131,815 84,185 
Operating lease right-of-use assets24,242 28,933 
Other assets, net of allowance for credit losses of $5 and $2 as of December 31, 2023 and 2022, respectively
39,500 37,356 
Total assets$1,439,563 $1,329,375 
Liabilities, redeemable noncontrolling interests and stockholders’ equity
Current liabilities:
Accounts payable, accrued expenses and other current liabilities$124,475 $119,657 
Accrued compensation28,626 25,582 
Deferred revenue10,193 7,540 
Operating lease liabilities12,043 12,157 
Total current liabilities175,337 164,936 
Deferred revenue12,692 10,792 
Convertible senior notes, net493,515 490,370 
Operating lease liabilities20,468 27,380 
Other liabilities12,697 13,050 
Total liabilities714,709 706,528 
Redeemable noncontrolling interests36,308 23,988 
Stockholders’ equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding as of December 31, 2023 and 2022— — 
Common stock, $0.01 par value, 300,000,000 shares authorized; 51,888,838 and 50,985,454 shares issued; and 49,868,175 and 49,452,709 shares outstanding as of December 31, 2023 and 2022, respectively519 510 
Additional paid-in capital531,734 497,199 
Treasury stock, at cost; 2,020,663 and 1,532,745 shares as of December 31, 2023 and 2022, respectively
(111,291)(83,993)
Accumulated other comprehensive income1,398 — 
Retained earnings266,186 185,143 
Total stockholders’ equity688,546 598,859 
Total liabilities, redeemable noncontrolling interests and stockholders’ equity$1,439,563 $1,329,375 
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ALARM.COM HOLDINGS, INC.
Consolidated Statements of Cash Flows
(in thousands)
 Year Ended December 31,
Cash flows from operating activities:202320222021
Net income$80,340 $55,631 $51,175 
Adjustments to reconcile net income to net cash flows from operating activities:
Provision for / (recovery of) credit losses on accounts receivable
1,508 1,156 (775)
Reserve for product returns4,399 4,746 2,494 
Provision for / (recovery of) credit losses on notes receivable
3 (78)(9)
Inventory write-down1,420 — 448 
Amortization on patents and tooling1,213 1,359 1,240 
Amortization and depreciation31,424 30,870 29,715 
Amortization of debt issuance costs and debt discount
3,145 3,126 15,823 
Amortization of operating leases11,484 10,499 9,692 
Deferred income taxes(47,730)(55,039)(10,115)
Change in fair value of contingent liability68 — — 
Stock-based compensation47,283 52,654 38,694 
(Gain on) / impairment of investment or intangible assets— (140)86 
Loss on early extinguishment of debt— — 185 
Changes in operating assets and liabilities (net of business acquisitions):
Accounts receivable(10,536)(24,346)(23,941)
Inventory20,961 (40,308)(31,443)
Other current and non-current assets(1,338)(8,952)(11,912)
Accounts payable, accrued expenses and other current liabilities4,613 32,938 39,418 
Deferred revenue4,553 3,428 2,308 
Operating lease liabilities(13,947)(12,723)(11,809)
Other liabilities(2,898)2,080 1,883 
Cash flows from operating activities135,965 56,901 103,157 
Cash flows used in investing activities:
Business acquisition, net of cash acquired(9,696)(31,730)— 
Additions to property and equipment(7,517)(28,640)(11,062)
Issuances of notes receivable(450)(3,000)— 
Capitalized software development costs(743)— — 
Receipt of payments on notes receivable55 61 59 
Purchase of investment in unconsolidated entity(1,700)(5,150)(5,000)
Proceeds from sale of investment— 140 — 
Purchases of developed technology and other assets(5,915)— (4,362)
Cash flows used in investing activities(25,966)(68,319)(20,365)
Cash flows (used in) / from financing activities:
Repayments of credit facility— — (110,000)
Proceeds from issuance of convertible senior notes— — 500,000 
Payments of debt issuance costs— — (15,698)
Payments of deferred consideration for acquisitions(1,672)(1,500)(1,160)
Purchases of treasury stock, including transaction costs(27,298)(78,844)— 
Purchases of redeemable noncontrolling interest(832)— — 
Payments of acquired debt (3,040)— — 
Payments of tax withholdings related to vesting of restricted stock units(2,621)— (4,476)
Issuances of common stock from equity-based plans3,598 4,020 5,704 
Cash flows (used in) / from financing activities(31,865)(76,324)374,370 
Effect of exchange rate changes on cash, cash equivalents and restricted cash 66 — — 
Net increase / (decrease) in cash, cash equivalents and restricted cash78,200 (87,742)457,162 
Cash, cash equivalents and restricted cash at beginning of the period622,879 710,621 253,459 
Cash, cash equivalents and restricted cash at end of the period$701,079 $622,879 $710,621 
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents$696,983 $622,165 $710,621 
Restricted cash included in other current assets and other assets4,096 714 — 
Total cash, cash equivalents and restricted cash$701,079 $622,879 $710,621 
8
ALARM.COM HOLDINGS, INC.
Reconciliation of Non-GAAP Measures
(in thousands)
(unaudited)

Three Months Ended 
 December 31,		Year Ended December 31,
20232022202320222021
Non-GAAP adjusted EBITDA:
Net income$31,171 $17,790 $80,340 $55,631 $51,175 
Adjustments:
Interest expense, interest income and certain activity within other income / (expense), net(13,738)(3,909)(32,229)(5,768)15,503 
Provision for / (benefit from) income taxes8,228 490 17,485 962 (5,106)
Amortization and depreciation expense7,943 7,747 31,424 30,870 29,715 
Stock-based compensation expense10,860 14,601 47,283 52,654 38,694 
Acquisition-related expense45 331 621 1,059 29 
Litigation expense1,075 1,904 9,043 11,440 12,462 
Total adjustments14,413 21,164 73,627 91,217 91,297 
Non-GAAP adjusted EBITDA$45,584 $38,954 $153,967 $146,848 $142,472 
Three Months Ended 
 December 31,		Year Ended December 31,
20232022202320222021
Non-GAAP adjusted net income:
Net income, as reported$31,171 $17,790 $80,340 $55,631 $51,175 
Provision for / (benefit from) income taxes8,228 490 17,485 962 (5,106)
Income before income taxes39,399 18,280 97,825 56,593 46,069 
Adjustments:
Less: interest income and certain activity within other income / (expense), net
(14,566)(4,697)(35,658)(8,912)(453)
Amortization expense5,195 4,782 20,271 18,706 17,347 
Amortization of debt issuance costs and debt discount
788 784 3,145 3,126 15,817 
Stock-based compensation expense10,860 14,601 47,283 52,654 38,694 
Acquisition-related expense45 331 621 1,059 29 
Litigation expense1,075 1,904 9,043 11,440 12,462 
Non-GAAP adjusted income before income taxes42,796 35,985 142,530 134,666 129,965 
Income taxes 1
(8,987)(7,557)(29,931)(28,280)(27,293)
Non-GAAP adjusted net income$33,809 $28,428 $112,599 $106,386 $102,672 

1  Income taxes are calculated using a rate of 21.0% for each of the years ended December 31, 2023, 2022 and 2021 as well as the three months ended December 31, 2023 and 2022. The 21.0% effective tax rates for each of the years ended December 31, 2023, 2022 and 2021 as well as the three months ended December 31, 2023 and 2022 exclude the income tax effect on the non-GAAP adjustments and reflect the estimated long-term corporate tax rate.
9
ALARM.COM HOLDINGS, INC.
Reconciliation of Non-GAAP Measures - continued
(in thousands, except share and per share data)
(unaudited)

Three Months Ended 
 December 31,		Year Ended December 31,
20232022202320222021
Non-GAAP adjusted net income attributable to common stockholders:
Net income attributable to common stockholders, as reported$31,304 $18,085 $81,043 $56,338 $52,259 
Provision for / (benefit from) income taxes8,228 490 17,485 962 (5,106)
Income attributable to common stockholders before income taxes39,532 18,575 98,528 57,300 47,153 
Adjustments:
Less: interest income and certain activity within other income / (expense), net
(14,566)(4,697)(35,658)(8,912)(453)
Amortization expense5,195 4,782 20,271 18,706 17,347 
Amortization of debt issuance costs and debt discount788 784 3,145 3,126 15,817 
Stock-based compensation expense10,860 14,601 47,283 52,654 38,694 
Acquisition-related expense45 331 621 1,059 29 
Litigation expense1,075 1,904 9,043 11,440 12,462 
Non-GAAP adjusted income attributable to common stockholders before income taxes42,929 36,280 143,233 135,373 131,049 
Income taxes 1
(9,015)(7,618)(30,079)(28,428)(27,520)
Non-GAAP adjusted net income attributable to common stockholders$33,914 $28,662 $113,154 $106,945 $103,529 

Three Months Ended 
 December 31,		Year Ended December 31,
20232022202320222021
Non-GAAP adjusted net income attributable to common stockholders per share:
Net income attributable to common stockholders per share - basic, as reported$0.63 $0.36 $1.63 $1.13 $1.05 
Provision for / (benefit from) income taxes0.16 0.01 0.35 0.02 (0.10)
Income attributable to common stockholders before income taxes0.79 0.37 1.98 1.15 0.95 
Adjustments:
Less: interest income and certain activity within other income / (expense), net
(0.29)(0.09)(0.72)(0.18)(0.01)
Amortization expense0.10 0.10 0.41 0.37 0.35 
Amortization of debt issuance costs and debt discount0.02 0.02 0.06 0.06 0.32 
Stock-based compensation expense0.22 0.28 0.95 1.05 0.77 
Acquisition-related expense— 0.01 0.01 0.02 — 
Litigation expense0.02 0.04 0.18 0.24 0.25 
Non-GAAP adjusted income attributable to common stockholders before income taxes0.86 0.73 2.87 2.71 2.63 
Income taxes 1
(0.18)(0.15)(0.60)(0.57)(0.55)
Non-GAAP adjusted net income attributable to common stockholders per share - basic$0.68 $0.58 $2.27 $2.14 $2.08 
Non-GAAP adjusted net income attributable to common stockholders per share - diluted$0.62 $0.53 $2.07 $1.95 $1.99 
Weighted average common shares outstanding:
Basic, as reported49,924,910 49,781,756 49,818,448 49,926,236 49,869,857 
Diluted, as reported54,711,605 54,534,956 54,625,434 54,932,757 51,919,902 
1  Income taxes are calculated using a rate of 21.0% for each of the years ended December 31, 2023, 2022 and 2021 as well as the three months ended December 31, 2023 and 2022. The 21.0% effective tax rates for each of the years ended December 31, 2023, 2022 and 2021 as well as the three months ended December 31, 2023 and 2022 exclude the income tax effect on the non-GAAP adjustments and reflect the estimated long-term corporate tax rate.
10
ALARM.COM HOLDINGS, INC.
Reconciliation of Non-GAAP Measures - continued
(dollars in thousands)
(unaudited)

Three Months Ended 
 December 31,		Year Ended December 31,
20232022202320222021
Non-GAAP free cash flow:
Cash flows from operating activities$39,872 $34,446 $135,965 $56,901 $103,157 
Additions to property and equipment(2,168)(556)(7,517)(28,640)(11,062)
Non-GAAP free cash flow$37,704 $33,890 $128,448 $28,261 $92,095 

Three Months Ended 
 December 31,		Year Ended December 31,
20232022202320222021
Non-GAAP adjusted SaaS and license revenue:
SaaS and license revenue$148,347 $134,551 $569,200 $520,377 $460,372 
License revenue from Vivint— — — (16,631)(20,200)
Non-GAAP adjusted SaaS and license revenue$148,347 $134,551 $569,200 $503,746 $440,172 

Full Year 2023 as Compared to Full Year 2022:
Year Ended
December 31, 2023
SaaS and license revenue growth rate9.4 %
Adjustment to SaaS and license revenue growth rate for Vivint license revenue3.6 
Non-GAAP adjusted SaaS and license revenue growth rate13.0 %
11
v3.24.0.1
Cover Page
Feb. 22, 2024
Cover Page [Abstract]  
Document Type 8-K
Document Period End Date Feb. 22, 2024
Entity Registrant Name ALARM.COM HOLDINGS, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-37461
Entity Tax Identification Number 26-4247032
Entity Address, Address Line One 8281 Greensboro Drive
Entity Address, Address Line Two Suite 100
Entity Address, City or Town Tysons
Entity Address, State or Province VA
Entity Address, Postal Zip Code 22102
City Area Code 877
Local Phone Number 389-4033
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.01 par value per share
Trading Symbol ALRM
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001459200
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