Summary
Alarm.com, a leading provider of connected property technology, reported strong financial performance in the second quarter of 2018. The company saw total revenue increase by 22%, reaching $104.5 million compared to $86.0 million during the same period in the previous year. This growth was driven by a substantial increase in SaaS and license revenue, which rose 20% to $71.0 million. This demonstrates the company's ability to expand its customer base and increase productivity among its service provider partners.
Net income was reported at $10.7 million, marking a notable improvement from the $9.9 million reported in Q2 FY2017. Alarm.com's Adjusted EBITDA also showed strong growth, increasing to $23.4 million from $15.9 million in the previous year. The SaaS and license revenue renewal rate was particularly robust at 94%, reflecting high customer retention and satisfaction with the company's offerings.
Alarm.com continues to derive significant revenue from its service provider partners who resell its solutions, indicating the resilience of its business model. Hardware sales also contributed significantly, accounting for 32% of total revenue in the quarter, enabling customers to secure, monitor, and automate their properties effectively.
Looking ahead, Alarm.com has highlighted significant growth opportunities in international markets, with products already localized for 37 countries. However, only 2% of its total revenue for the first half of 2018 came from outside North America, underscoring the potential for geographic expansion.
Despite its strong performance, Alarm.com faces several operational risks. These include the potential for fluctuating quarterly results due to varying product mix and seasonal demand, competition, and the risk of not sustaining its growth rate. Additionally, regulatory provisions under Delaware's corporate law may impact stockholder activities and deter potential acquisitions, posing a medium-level risk.
Alarm.com's focus on innovation and partner-driven growth positions it well for future success. However, it needs to manage growth carefully to maintain sustainable operational performance and avoid the pitfalls of rapid expansion. Investors should monitor these operational risks and the potential impact of regulatory provisions on strategic decisions and share price.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2018 | Q1 FY2018 | QoQ | Q2 FY2017 | YoY |
|---|---|---|---|---|---|
| Revenue | $104.5M | $24.8M | +321.9% | $27.1M | +286.1% |
| Gross profit | $68.0M | -$3.6M | +1984.2% | -$2.8M | +2550.5% |
| Gross margin | 65.1% | -14.6% | +79.7 pp | -10.3% | +75.3 pp |
| Research & development | $21.5M | $20.4M | +5.6% | $20.1M | +7.3% |
| Sales & marketing | $14.6M | $10.8M | +35.0% | $11.9M | +22.8% |
| General & administrative | $18.1M | $16.2M | +12.1% | $13.4M | +34.7% |
| Total operating expenses | $59.5M | $52.4M | +13.6% | $50.3M | +18.4% |
| Operating income (loss) | $8.5M | $12.0M | -29.0% | $5.9M | +44.3% |
| Operating margin | 8.1% | 48.4% | -40.3 pp | 21.8% | -13.6 pp |
| Net income (loss) | $10.7M | $10.5M | +2.1% | $9.9M | +8.8% |
| Net margin | 10.3% | 42.5% | -32.2 pp | 36.5% | -26.2 pp |
| Diluted EPS | $0.22 | $0.21 | +$0.01 | $0.20 | +$0.02 |
Risks
Alarm.com is subject to provisions of Delaware General Corporation Law which could limit price investors might be willing to pay for shares and deter potential acquirers.
SaaS KPIs
All quarters →SaaS and license revenue
SaaS and License Revenue Renewal Rate
Adjusted EBITDA
Summary, forecast, risks and KPIs are extracted from Alarm.com Holdings, Inc.'s SEC filings for Q2 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.