Summary
Alarm.com presented a strong performance in the third quarter of fiscal year 2019, focusing on its position as a leader in the connected property market. The company's primary source of revenue stems from SaaS and licensing, which accounts for a significant portion of its income. In Q3 2019, Alarm.com reported that SaaS and license revenues increased by 14% year-over-year to $84.9 million. This illustrates a robust demand for their software platforms, reflecting the high value placed on security and intelligently connected solutions by both residential and commercial clients.
Their business relies heavily on a network of over 8,000 service provider partners. These partners are essential to deploying Alarm.com's solutions, as they handle the sale, installation, and support. Given that service contracts typically span three to five years, this arrangement provides a stable revenue stream.
Alarm.com also generates a notable portion of revenue from hardware sales, including products like video cameras and smart thermostats. Although hardware represented 34% of the revenue for the quarter, a figure consistent with the same period the previous year, the company anticipates fluctuations in this area due to the variable nature of hardware demand.
Adjusted EBITDA, another key metric, stood at $26.3 million for Q3 2019, an increase from the previous quarter, reflecting an improvement in profitability which can be largely attributed to the growth in SaaS and license revenues.
The company outlines several risk factors which could influence future performance. Alarm.com notes that its quarterly revenue and operating results are prone to fluctuations, attributable to a range of factors including changes in demand, competition, and pricing strategies. A risk highlighted relates to the potential impact of U.S. trade policies that might introduce new tariffs or penalties on imported products, affecting cost structures.
No specific future financial guidance was provided. The lack of explicit forward-looking figures in the MD&A can add a layer of uncertainty for investors seeking a clear outlook on what to expect in upcoming quarters.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2019 | Q2 FY2019 | QoQ | Q3 FY2018 | YoY |
|---|---|---|---|---|---|
| Revenue | $127.9M | $121.7M | +5.1% | $111.8M | +14.3% |
| Gross profit | $80.4M | $77.1M | +4.2% | $69.9M | +15.0% |
| Gross margin | 62.8% | 63.4% | -0.5 pp | 62.5% | +0.4 pp |
| Research & development | $29.5M | $28.4M | +3.7% | $22.9M | +28.8% |
| Sales & marketing | $14.5M | $15.6M | -7.0% | $14.1M | +2.9% |
| General & administrative | $18.7M | $13.9M | +34.8% | $43.7M | -57.2% |
| Total operating expenses | $68.2M | $63.1M | +8.1% | $86.5M | -21.2% |
| Operating income (loss) | $12.2M | $14.0M | -13.2% | -$16.7M | +173.1% |
| Operating margin | 9.5% | 11.5% | -2.0 pp | -14.9% | +24.5 pp |
| Net income (loss) | $17.7M | $13.8M | +28.2% | -$7.7M | +331.2% |
| Net margin | 13.8% | 11.3% | +2.5 pp | -6.8% | +20.7 pp |
| Diluted EPS | $0.35 | $0.27 | +$0.08 | -$0.16 | +$0.51 |
Summary, forecast, risks and KPIs are extracted from Alarm.com Holdings, Inc.'s SEC filings for Q3 FY2019 (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.