Summary
Alarm.com reported a strong third quarter for fiscal year 2020, marked by significant revenue growth and improved profitability, despite the ongoing challenges presented by the COVID-19 pandemic. The company saw its total revenue climb 24% year-over-year to $158.9 million, while net income more than doubled to $35.8 million from $17.7 million in the same quarter last year. SaaS and license revenue, a key driver of the business, increased 18% to $100.1 million, highlighting the resilience of the company's subscription-based model.
Adjusted EBITDA, which is a non-GAAP measure of operational performance, also saw a sizable increase, reaching $34.5 million compared to $26.3 million in Q3 2019. The company maintained a robust SaaS and license revenue renewal rate of 94%, underscoring customer retention and the ongoing demand for its solutions.
However, risks remain, primarily due to the lingering impacts of the COVID-19 pandemic. Alarm.com highlighted potential disruptions to its hardware supply chain, service providers' operations, and broader economic conditions that could impact future revenue growth. The company is navigating through these uncertainties while maintaining continuity in its operations, with a substantial portion of its workforce and activities adapted to remote settings and virtual interactions.
Despite these challenges, Alarm.com's strategic focus on a SaaS and licensing model continues to offer stability and growth potential. This approach not only leverages its network of over 9,000 service providers but also supports the adoption and installation of its smart property solutions across residential and commercial markets.
Strategically, the company plans to enhance its platform and service offerings, recognizing that sustained innovation is critical to maintaining its leadership position in the intelligently connected property market. The management remains cautious but optimistic about its ability to weather current economic uncertainties and leverage its position in a growing market.
Overall, Alarm.com's Q3 performance reflects both its operational resilience and the uncertainties of the economic landscape impacted by the pandemic. The ability to maintain steady growth in its key revenue streams while managing pandemic-induced challenges will be crucial for sustaining investor confidence and long-term value creation.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2020 | Q2 FY2020 | QoQ | Q3 FY2019 | YoY |
|---|---|---|---|---|---|
| Revenue | $158.9M | $141.6M | +12.2% | $127.9M | +24.2% |
| Gross profit | $97.7M | $92.6M | +5.4% | $80.4M | +21.5% |
| Gross margin | 61.5% | 65.4% | -3.9 pp | 62.8% | -1.4 pp |
| Research & development | $36.9M | $36.6M | +0.8% | $29.5M | +25.3% |
| Sales & marketing | $18.4M | $16.9M | +8.8% | $14.5M | +26.7% |
| General & administrative | $17.4M | $17.4M | +0.3% | $18.7M | -6.9% |
| Total operating expenses | $79.6M | $77.6M | +2.5% | $68.2M | +16.8% |
| Operating income (loss) | $18.1M | $15.0M | +20.4% | $12.2M | +48.1% |
| Operating margin | 11.4% | 10.6% | +0.8 pp | 9.5% | +1.8 pp |
| Net income (loss) | $36.1M | $17.0M | +112.3% | $17.7M | +104.0% |
| Net margin | 22.7% | 12.0% | +10.7 pp | 13.8% | +8.9 pp |
| Diluted EPS | $0.71 | $0.34 | +$0.37 | $0.35 | +$0.36 |
Risks
The COVID-19 pandemic may continue to disrupt our supply chain, limit our service providers’ ability to sell, and impact our revenue growth due to economic uncertainty and operational challenges.
SaaS KPIs
All quarters →SaaS and license revenue
SaaS and License Revenue Renewal Rate
Adjusted EBITDA
Total Revenue
Net income
Summary, forecast, risks and KPIs are extracted from Alarm.com Holdings, Inc.'s SEC filings for Q3 FY2020 (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.