Summary
Alarm.com had a strong Q1 FY 2018, seeing a 25% year-over-year increase in revenue, reaching $92.8 million up from $74.2 million in the comparable quarter last year. SaaS and license revenue showed even more impressive growth, climbing 35% from $50.2 million in Q1 2017 to $68.0 million in Q1 2018. This indicates robust demand for the company's cloud-based solutions tailored for smart residential and commercial properties. The company remains dominant in the connected property market with hundreds of millions of data points processed by their systems.
Net income also experienced significant growth, marking $10.5 million for the quarter, more than doubling from $4 million in the prior-year quarter. Additionally, Alarm.com's Adjusted EBITDA, a non-GAAP measure that management utilizes to evaluate core operating performance, grew to $23.0 million this quarter from $14.1 million in 2017, attributing this to effective control over their operating expenses and scaling their operations efficiently.
Despite these impressive figures, Alarm.com must navigate several challenges to sustain this momentum. They face variability in quarterly results due to factors they cannot control, including fluctuations in market demand and the competitive landscape. Significant to note this quarter is Alarm.com’s acknowledgment of the risk associated with managing continued growth. While they have effectively expanded their operations rapidly, any difficulty in managing this growth in the future could impact their financial health and stock price adversely.
Internationally, Alarm.com identifies significant growth potential, as currently, only 2% of its revenue is generated outside North America. This indicates a vast opportunity to expand its market share globally. However, entry into new markets comes with challenges, and Alarm.com will need to manage these carefully to not overextend its resources.
Overall, while Alarm.com is showing great strides in its financial metrics and market dominance, maintaining this position requires vigilance in managing growth and adapting to market changes. The company’s ability to convert potential international opportunities into tangible revenue will be crucial for their long-term growth strategy.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2018 | Q4 FY2017 | QoQ | Q1 FY2017 | YoY |
|---|---|---|---|---|---|
| Revenue | $24.8M | $23.6M | +5.0% | $24.0M | +3.3% |
| Gross profit | -$3.6M | -$4.3M | +16.0% | -$2.7M | -35.3% |
| Gross margin | -14.6% | -18.2% | +3.6 pp | -11.1% | -3.4 pp |
| Research & development | $20.4M | $18.9M | +7.7% | $14.5M | +40.3% |
| Sales & marketing | $10.8M | $10.9M | -0.3% | $10.3M | +4.9% |
| General & administrative | $16.2M | $13.6M | +18.9% | $15.4M | +5.1% |
| Total operating expenses | $52.4M | $48.3M | +8.4% | $43.1M | +21.6% |
| Operating income (loss) | $12.0M | $12.6M | -4.8% | $4.5M | +167.4% |
| Operating margin | 48.4% | 53.4% | -5.0 pp | 18.7% | +29.7 pp |
| Net income (loss) | $10.5M | $320.0K | +3185.9% | $4.0M | +165.3% |
| Net margin | 42.5% | 1.4% | +41.1 pp | 16.5% | +25.9 pp |
| Diluted EPS | $0.21 | $0.01 | +$0.20 | $0.08 | +$0.13 |
Risks
The company has experienced significant growth and may not sustain such growth rates in future periods, which could adversely affect financial results and stock price.
Quarterly results of operations may fluctuate due to variations in revenue mix, market demand, and competition, impacting stock price if expectations are missed.
SaaS KPIs
All quarters →SaaS and license revenue
SaaS and License Revenue Renewal Rate
Adjusted EBITDA
Total Revenue
Summary, forecast, risks and KPIs are extracted from Alarm.com Holdings, Inc.'s SEC filings for Q1 FY2018 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Jul 15, 2026.