-- Fourth quarter SaaS and license revenue
increased to $165.7 million, compared to $148.3 million for the
fourth quarter of 2023 --
-- Fourth quarter GAAP net income of $30.1
million, compared to $31.2 million for the fourth quarter of
2023--
-- Full year 2024 SaaS and license revenue
increased to $631.2 million, compared to $569.2 million for 2023
--
-- Full year 2024 GAAP net income increased
to $122.5 million, compared to $80.3 million for 2023 --
-- Full year 2024 non-GAAP adjusted EBITDA
increased to $176.2 million, compared to $154.0 million for 2023
--
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,
2024. Alarm.com also provided its financial outlook for SaaS and
license revenue for the first quarter of 2025 and guidance for the
full year 2025.
“I want to thank our team and our service provider partners for
their help in delivering another quarter and year of solid
financial performance,” said Steve Trundle, CEO of Alarm.com.
“During 2024, our teams strengthened our position in the markets we
serve through product innovation, including new AI-based video
analytics capabilities, and expanded our opportunity in the remote
video monitoring market through organic research and development
and execution of our corporate development strategy. Our growth
initiatives also contributed strongly to our consolidated growth as
they continued to scale.”
Fourth Quarter 2024 Financial Results
as Compared to Fourth Quarter 2023
- SaaS and license revenue increased 11.7% to $165.7 million,
compared to $148.3 million.
- Total revenue increased 7.1% to $242.2 million, compared to
$226.2 million.
- GAAP net income of $30.1 million, compared to $31.2 million.
GAAP net income attributable to common stockholders of $30.3
million, or $0.56 per diluted share, compared to $31.3 million, or
$0.58 per diluted share.
- Non-GAAP adjusted EBITDA(*) increased to $46.4 million,
compared to $45.6 million.
- Non-GAAP adjusted net income attributable to common
stockholders(*) decreased to $32.6 million, or $0.58 per diluted
share, compared to $33.9 million, or $0.62 per diluted share.
Full Year 2024 Financial Results as
Compared to Full Year 2023
- SaaS and license revenue increased 10.9% to $631.2 million,
compared to $569.2 million.
- Total revenue increased 6.6% to $939.8 million, compared to
$881.7 million.
- GAAP net income increased to $122.5 million, compared to $80.3
million. GAAP net income attributable to common stockholders
increased to $124.1 million, or $2.29 per diluted share, compared
to $81.0 million, or $1.53 per diluted share.
- Non-GAAP adjusted EBITDA(*) increased to $176.2 million,
compared to $154.0 million.
- Non-GAAP adjusted net income attributable to common
stockholders(*) increased to $127.1 million, or $2.28 per diluted
share, compared to $113.2 million, or $2.07 per diluted share.
Balance Sheet and Cash
Flow
- Total cash and cash equivalents increased to $1.22 billion as
of December 31, 2024, compared to $697.0 million as of December 31,
2023. The increase in cash and cash equivalents was primarily due
to the May 2024 issuance of $500.0 million aggregate principal
amount of 2.25% convertible senior notes due June 1, 2029, or the
2029 Notes, resulting in proceeds of $485.2 million, net of $14.8
million of transaction fees and other debt issuance costs. Positive
cash flows also contributed to the increase in cash and cash
equivalents.
- For the year ended December 31, 2024, cash flows from
operations was $206.4 million, compared to $136.0 million for the
year ended December 31, 2023. For the year ended December 31, 2024,
non-GAAP free cash flow(*) was $196.3 million, compared to $128.4
million for the year ended December 31, 2023.
(*) Reconciliations of the non-GAAP measures are set forth at
the end of this press release.
Recent Business
Highlights
- EnergyHub Delivered Record-Breaking Grid Flexibility in
2024: EnergyHub’s utility clients called on its platform over
2,000 times during the 2024 summer and shifted over 44 gigawatt
hours of electricity out of peak demand periods. Utilities also
leveraged EnergyHub’s new dynamic load-shaping capability, which
uses AI-driven optimizations to automatically coordinate
distributed energy resources, including batteries and smart
thermostats, to maintain grid reliability during peak demand and
grid repairs.
- Expanded Remote Video Monitoring (RVM) offering with the
Acquisition of CHeKT: On February 10, 2025, Alarm.com acquired
81% of the issued and outstanding shares of capital stock of CHeKT.
CHeKT offers a comprehensive RVM solution that enables professional
monitoring through on-premise video surveillance systems. CHeKT
serves central stations and service providers and works with a
broad range of third-party cameras and security products. The
acquisition expands Alarm.com’s emerging opportunity to provide RVM
solutions in the commercial and residential markets.
- Enhanced Business Activity Analytics (BAA) Solution for
Commercial Market: Alarm.com’s commercial video analytics
solution now includes an intuitive BAA dashboard on the Alarm.com
mobile app that allows commercial subscribers to compare current
activity in their business with historical trends. The dashboard
leverages the AI-driven insights provided by BAA, including people
counting, crowd gathering and queue monitoring, and provides an
engaging, quick-glance status indicator and charts for drilling
down into trend data. Commercial subscribers can make informed
operational decisions and manage their business efficiently and
effectively while on the go.
Financial Outlook
Alarm.com is providing its outlook for SaaS and license revenue
for the first quarter of 2025 and its guidance for the full year
2025 based upon current management expectations.
For the first quarter of 2025:
- SaaS and license revenue is expected to be in the range of
$160.2 million to $160.4 million.
For the full year 2025:
- SaaS and license revenue is expected to be in the range of
$671.2 million to $671.8 million.
- Total revenue is expected to be in the range of $978.2 million
to $980.8 million, which includes anticipated hardware and other
revenue in the range of $307.0 million to $309.0 million.
- Non-GAAP adjusted EBITDA is expected to be in the range of
$188.0 million to $192.0 million.
- Non-GAAP adjusted net income attributable to common
stockholders is expected to be in the range of $130.0 million to
$131.0 million, based on an estimated tax rate of 21.0%.
- Based on an expected 60.6 million weighted average diluted
shares outstanding, non-GAAP adjusted net income attributable to
common stockholders is expected to be $2.28 to $2.29 per diluted
share.
The 2025 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 2024 financial results and its outlook for
the first quarter and full year 2025. A live audio webcast is
scheduled to begin at 4:30 p.m. ET on February 20, 2025. 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/BIc5f04e3b0abf485890ce3fc463d0b7e5.
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.
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 and non-GAAP
free cash flow. 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, and the 2029 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 related to the 2026 Notes and
2029 Notes as discussed below.
Interest income and certain activity within other (expense) /
income, net: We exclude interest income as well as certain activity
within other (expense) / income, net including gains, losses or
impairments on investments without readily determinable fair values
and other assets, gains and losses from equity method investments,
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 income taxes: We exclude the impact related to our
provision for 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 we are 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 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: We record amortization of
debt issuance costs related to the 2026 Notes and 2029 Notes as
interest expense. We exclude amortization of debt issuance costs
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.
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 2025 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 (including the ongoing conflicts in
Ukraine, and in Israel and surrounding areas), 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 new or
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 7, 2024 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, 2024. 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.
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,
2024
2023
2024
2023
2022
Revenue:
SaaS and license revenue
$
165,651
$
148,347
$
631,198
$
569,200
$
520,377
Hardware and other revenue
76,589
77,890
308,629
312,482
322,182
Total revenue
242,240
226,237
939,827
881,682
842,559
Cost of revenue(1):
Cost of SaaS and license revenue
23,891
22,822
89,512
85,898
73,897
Cost of hardware and other revenue
59,713
58,393
236,637
239,261
268,684
Total cost of revenue
83,604
81,215
326,149
325,159
342,581
Operating expenses:
Sales and marketing
30,941
25,948
111,242
100,226
92,748
General and administrative
27,767
24,177
108,879
112,930
106,688
Research and development
61,971
61,274
255,878
245,114
218,635
Amortization and depreciation
7,102
7,943
29,131
31,424
30,870
Total operating expenses
127,781
119,342
505,130
489,694
448,941
Operating income
30,855
25,680
108,548
66,829
51,037
Interest expense
(4,347
)
(828
)
(11,426
)
(3,429
)
(3,144
)
Interest income
13,579
8,709
47,359
29,801
8,759
Other (expense) / income, net
(1,009
)
5,838
(2,674
)
4,624
(59
)
Income before income taxes
39,078
39,399
141,807
97,825
56,593
Provision for income taxes
8,945
8,228
19,294
17,485
962
Net income
30,133
31,171
122,513
80,340
55,631
Net loss attributable to redeemable
noncontrolling interests
195
133
1,603
703
707
Net income attributable to common
stockholders
$
30,328
$
31,304
$
124,116
$
81,043
$
56,338
Per share information attributable to
common stockholders:
Net income attributable to common
stockholders per share:
Basic
$
0.61
$
0.63
$
2.50
$
1.63
$
1.13
Diluted
$
0.56
$
0.58
$
2.29
$
1.53
$
1.07
Weighted average common shares
outstanding:
Basic
49,494,338
49,924,910
49,641,763
49,818,448
49,926,236
Diluted
59,961,161
54,711,605
57,993,019
54,625,434
54,932,757
______________________________
(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,
2024
2023
2024
2023
2022
Cost of hardware and other revenue
$
—
$
2
$
2
$
5
$
—
Sales and marketing
809
744
2,833
3,522
4,342
General and administrative
3,519
3,155
13,080
13,028
15,037
Research and development
5,239
6,959
25,327
30,728
33,275
Total stock-based compensation expense
$
9,567
$
10,860
$
41,242
$
47,283
$
52,654
ALARM.COM HOLDINGS,
INC.
Consolidated Balance
Sheets
(in thousands, except share
and per share data)
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
1,220,701
$
696,983
Accounts receivable, net of allowance for
credit losses of $3,870 and $3,864, and net of allowance for
product returns of $2,448 and $2,279, as of December 31, 2024 and
2023, respectively
126,082
130,626
Inventory
87,435
96,140
Other current assets, net
47,374
33,031
Total current assets
1,481,592
956,780
Property and equipment, net
63,205
54,164
Intangible assets, net
63,159
78,564
Goodwill
154,211
154,498
Deferred tax assets
181,284
131,815
Operating lease right-of-use assets
53,425
24,242
Other assets, net of allowance for credit
losses of $1 and $5 as of December 31, 2024 and 2023,
respectively
41,332
39,500
Total assets
$
2,038,208
$
1,439,563
Liabilities, redeemable noncontrolling
interests and stockholders’ equity
Current liabilities:
Accounts payable, accrued expenses and
other current liabilities
$
139,427
$
124,475
Accrued compensation
28,739
28,626
Deferred revenue
12,940
10,193
Operating lease liabilities
7,700
12,043
Total current liabilities
188,806
175,337
Deferred revenue
13,619
12,692
Convertible senior notes, net
983,477
493,515
Operating lease liabilities
65,534
20,468
Other liabilities
15,479
12,697
Total liabilities
1,266,915
714,709
Redeemable noncontrolling interests
44,747
36,308
Stockholders’ equity
Preferred stock, $0.001 par value,
10,000,000 shares authorized; no shares issued and outstanding as
of December 31, 2024 and 2023
—
—
Common stock, $0.01 par value, 300,000,000
shares authorized; 52,756,077 and 51,888,838 shares issued; and
49,618,346 and 49,868,175 shares outstanding as of December 31,
2024 and 2023, respectively
528
519
Additional paid-in capital
521,192
531,734
Treasury stock, at cost; 3,137,731 and
2,020,663 shares as of December 31, 2024 and 2023, respectively
(186,291
)
(111,291
)
Accumulated other comprehensive income
815
1,398
Retained earnings
390,302
266,186
Total stockholders’ equity
726,546
688,546
Total liabilities, redeemable
noncontrolling interests and stockholders’ equity
$
2,038,208
$
1,439,563
ALARM.COM HOLDINGS,
INC.
Consolidated Statements of
Cash Flows
(in thousands)
Year Ended December
31,
Cash flows from operating
activities:
2024
2023
2022
Net income
$
122,513
$
80,340
$
55,631
Adjustments to reconcile net income to net
cash flows from operating activities:
Provision for credit losses on accounts
receivable
950
1,508
1,156
Reserve for product returns
3,187
4,399
4,746
Provision for / (recovery of) credit
losses on notes receivable
3,996
3
(78
)
Inventory write-down
—
1,420
—
Amortization on patents and tooling
847
1,213
1,359
Amortization and depreciation
29,131
31,424
30,870
Amortization of debt issuance costs
4,796
3,145
3,126
Amortization of operating leases
13,084
11,484
10,499
Deferred income taxes
(34,496
)
(47,730
)
(55,039
)
Change in fair value of contingent
liability
108
68
—
Stock-based compensation
41,242
47,283
52,654
Gain from investment in unconsolidated
entity
(127
)
—
(140
)
Changes in operating assets and
liabilities (net of business acquisitions):
Accounts receivable
271
(10,536
)
(24,346
)
Inventory
8,558
20,961
(40,308
)
Other current and non-current assets
(2,697
)
(1,338
)
(8,952
)
Accounts payable, accrued expenses and
other current liabilities
20,133
4,613
32,938
Deferred revenue
3,674
4,553
3,428
Operating lease liabilities
(12,467
)
(13,947
)
(12,723
)
Other liabilities
3,710
(2,898
)
2,080
Cash flows from operating activities
206,413
135,965
56,901
Cash flows used in investing
activities:
Business acquisition, net of cash
acquired
—
(9,696
)
(31,730
)
Additions to property and equipment
(10,133
)
(7,517
)
(28,640
)
Issuances of notes receivable
(500
)
(450
)
(3,000
)
Capitalized software development costs
(1,643
)
(743
)
—
Receipt of payments on notes
receivable
51
55
61
Purchase of investment in unconsolidated
entities
(11,025
)
(1,700
)
(5,150
)
Proceeds from sale of investment
—
—
140
Purchases of intangible assets and other
assets
(1,431
)
(5,915
)
—
Cash flows used in investing
activities
(24,681
)
(25,966
)
(68,319
)
Cash flows from / (used in) financing
activities:
Proceeds from issuance of convertible
senior notes
500,000
—
—
Payments of debt issuance costs
(14,834
)
—
—
Purchases of capped calls related to
convertible senior notes
(63,050
)
—
—
Payments of deferred consideration for
acquisitions
(7,269
)
(1,672
)
(1,500
)
Purchases of treasury stock, including
transaction costs
(75,000
)
(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
(3,401
)
(2,621
)
—
Issuances of common stock from
equity-based plans
9,984
3,598
4,020
Cash flows from / (used in) financing
activities
346,430
(31,865
)
(76,324
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
(109
)
66
—
Net increase / (decrease) in cash, cash
equivalents and restricted cash
528,053
78,200
(87,742
)
Cash, cash equivalents and restricted
cash at beginning of the period
701,079
622,879
710,621
Cash, cash equivalents and restricted
cash at end of the period
$
1,229,132
$
701,079
$
622,879
Reconciliation of cash, cash
equivalents and restricted cash:
Cash and cash equivalents
$
1,220,701
$
696,983
$
622,165
Restricted cash included in other current
assets and other assets
8,431
4,096
714
Total cash, cash equivalents and
restricted cash
$
1,229,132
$
701,079
$
622,879
ALARM.COM HOLDINGS,
INC.
Reconciliation of Non-GAAP
Measures
(in thousands)
(unaudited)
Three Months Ended
December 31,
Year Ended December
31,
2024
2023
2024
2023
2022
Non-GAAP adjusted EBITDA:
Net income
$
30,133
$
31,171
$
122,513
$
80,340
$
55,631
Adjustments:
Interest expense, interest income and
certain activity within other (expense) / income, net
(9,365
)
(13,738
)
(36,066
)
(32,229
)
(5,768
)
Provision for income taxes
8,945
8,228
19,294
17,485
962
Amortization and depreciation expense
7,102
7,943
29,131
31,424
30,870
Stock-based compensation expense
9,567
10,860
41,242
47,283
52,654
Acquisition-related expense
3
45
108
621
1,059
Litigation expense
1
1,075
17
9,043
11,440
Total adjustments
16,253
14,413
53,726
73,627
91,217
Non-GAAP adjusted EBITDA
$
46,386
$
45,584
$
176,239
$
153,967
$
146,848
Three Months Ended
December 31,
Year Ended December
31,
2024
2023
2024
2023
2022
Non-GAAP adjusted net income:
Net income, as reported
$
30,133
$
31,171
$
122,513
$
80,340
$
55,631
Provision for income taxes
8,945
8,228
19,294
17,485
962
Income before income taxes
39,078
39,399
141,807
97,825
56,593
Adjustments:
Interest income and certain activity
within other (expense) / income, net
(13,712
)
(14,566
)
(47,492
)
(35,658
)
(8,912
)
Amortization expense
4,652
5,195
18,806
20,271
18,706
Amortization of debt issuance costs
1,500
788
4,796
3,145
3,126
Stock-based compensation expense
9,567
10,860
41,242
47,283
52,654
Acquisition-related expense
3
45
108
621
1,059
Litigation expense
1
1,075
17
9,043
11,440
Non-GAAP adjusted income before income
taxes
41,089
42,796
159,284
142,530
134,666
Income taxes 1
(8,629
)
(8,987
)
(33,450
)
(29,931
)
(28,280
)
Non-GAAP adjusted net income
$
32,460
$
33,809
$
125,834
$
112,599
$
106,386
1 Income taxes are calculated using a rate
of 21.0% for each of the years ended December 31, 2024, 2023 and
2022 as well as the three months ended December 31, 2024 and 2023.
The 21.0% effective tax rates for each of the years ended December
31, 2024, 2023 and 2022 as well as the three months ended December
31, 2024 and 2023 exclude the income tax effect on the non-GAAP
adjustments and reflect the estimated long-term corporate tax
rate.
ALARM.COM HOLDINGS,
INC.
Reconciliation of Non-GAAP
Measures - continued
(in thousands)
(unaudited)
Three Months Ended
December 31,
Year Ended December
31,
2024
2023
2024
2023
2022
Non-GAAP adjusted net income
attributable to common stockholders:
Net income attributable to common
stockholders, as reported
$
30,328
$
31,304
$
124,116
$
81,043
$
56,338
Provision for income taxes
8,945
8,228
19,294
17,485
962
Income attributable to common stockholders
before income taxes
39,273
39,532
143,410
98,528
57,300
Adjustments:
Interest income and certain activity
within other (expense) / income, net
(13,712
)
(14,566
)
(47,492
)
(35,658
)
(8,912
)
Amortization expense
4,652
5,195
18,806
20,271
18,706
Amortization of debt issuance costs
1,500
788
4,796
3,145
3,126
Stock-based compensation expense
9,567
10,860
41,242
47,283
52,654
Acquisition-related expense
3
45
108
621
1,059
Litigation expense
1
1,075
17
9,043
11,440
Non-GAAP adjusted income attributable to
common stockholders before income taxes
41,284
42,929
160,887
143,233
135,373
Income taxes 1
(8,669
)
(9,015
)
(33,786
)
(30,079
)
(28,428
)
Non-GAAP adjusted net income
attributable to common stockholders
$
32,615
$
33,914
$
127,101
$
113,154
$
106,945
1 Income taxes are calculated using a rate
of 21.0% for each of the years ended December 31, 2024, 2023 and
2022 as well as the three months ended December 31, 2024 and 2023.
The 21.0% effective tax rates for each of the years ended December
31, 2024, 2023 and 2022 as well as the three months ended December
31, 2024 and 2023 exclude the income tax effect on the non-GAAP
adjustments and reflect the estimated long-term corporate tax
rate.
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,
2024
2023
2024
2023
2022
Non-GAAP adjusted net income
attributable to common stockholders per share:
Net income attributable to common
stockholders per share - basic, as reported
$
0.61
$
0.63
$
2.50
$
1.63
$
1.13
Provision for income taxes
0.18
0.16
0.39
0.35
0.02
Income attributable to common stockholders
before income taxes
0.79
0.79
2.89
1.98
1.15
Adjustments:
Interest income and certain activity
within other (expense) / income, net
(0.28
)
(0.29
)
(0.96
)
(0.72
)
(0.18
)
Amortization expense
0.10
0.10
0.38
0.41
0.37
Amortization of debt issuance costs
0.03
0.02
0.10
0.06
0.06
Stock-based compensation expense
0.19
0.22
0.83
0.95
1.05
Acquisition-related expense
—
—
—
0.01
0.02
Litigation expense
—
0.02
—
0.18
0.24
Non-GAAP adjusted income attributable to
common stockholders before income taxes
0.83
0.86
3.24
2.87
2.71
Income taxes 1
(0.17
)
(0.18
)
(0.68
)
(0.60
)
(0.57
)
Non-GAAP adjusted net income
attributable to common stockholders per share - basic
$
0.66
$
0.68
$
2.56
$
2.27
$
2.14
Non-GAAP adjusted net income
attributable to common stockholders per share - diluted2
$
0.58
$
0.62
$
2.28
$
2.07
$
1.95
Weighted average common shares
outstanding:
Basic, as reported
49,494,338
49,924,910
49,641,763
49,818,448
49,926,236
Diluted, as reported
59,961,161
54,711,605
57,993,019
54,625,434
54,932,757
1 Income taxes are calculated using a rate
of 21.0% for each of the years ended December 31, 2024, 2023 and
2022 as well as the three months ended December 31, 2024 and 2023.
The 21.0% effective tax rates for each of the years ended December
31, 2024, 2023 and 2022 as well as the three months ended December
31, 2024 and 2023 exclude the income tax effect on the non-GAAP
adjustments and reflect the estimated long-term corporate tax
rate.
2 Non-GAAP adjusted net income attributable to common stockholders
per diluted share includes the add back of cash interest expense,
net of tax, attributable to convertible senior notes of $2.1
million and $5.0 million for the three and twelve months ended
December 31, 2024, respectively.
Three Months Ended
December 31,
Year Ended December
31,
2024
2023
2024
2023
2022
Non-GAAP free cash flow:
Cash flows from operating activities
$
56,260
$
39,872
$
206,413
$
135,965
$
56,901
Additions to property and equipment
(2,268
)
(2,168
)
(10,133
)
(7,517
)
(28,640
)
Non-GAAP free cash flow
$
53,992
$
37,704
$
196,280
$
128,448
$
28,261
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250220742474/en/
Investor & Media Relations: Matthew Zartman Alarm.com
ir@alarm.com
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