Summary
Alarm.com showcased a significant year-on-year revenue increase, marking 25% growth from $167.3 million in 2014 to $208.9 million in 2015. This growth indicates a strong demand for connected home solutions. SaaS and license revenue showed a robust increase of 26% over the same period, reaching $140.9 million in 2015. Despite these positive revenue trends, net income dropped from $13.5 million in 2014 to $11.8 million in 2015, largely due to escalating expenses required to support growth and innovation.
The company continues to enhance its connected home platform, boasting over 2.6 million subscribers. Alarm.com’s solutions are delivered through a solid network of over 5,000 service providers, with its SaaS and license revenue maintaining a steady renewal rate of 93%, reflecting customer satisfaction and the reliability of its services.
Alarm.com’s strategy focuses on sustaining its market leadership by leveraging its robust technology platform, which connects tens of millions of devices. This breadth of connectivity and data processing capability ensures it remains competitive in the smart home services market. By further innovating and expanding its offerings, including integration with wearables and voice-controlled devices, Alarm.com intends to further solidify its position.
Looking ahead, Alarm.com is poised to continue its organic growth strategy but faces challenges in maintaining its current growth rate. The company foresees increased expenses in marketing and research and development to keep pace with competitors and to explore international markets, where it currently has limited exposure. Nevertheless, there is a clear emphasis on expanding their international business, as only less than 1% of total revenues are generated outside the United States and Canada, offering significant opportunities for growth.
However, significant risks loom. Alarm.com’s quarterly results may continue to fluctuate due to market and consumer dynamics. The competitive landscape remains fierce, with prominent companies like iControl Networks, Honeywell, and major telecommunications firms entering the connected home market. These companies have substantial resources and established customer relationships that pose a threat to Alarm.com’s market share.
The pressure is on to innovate and expand while effectively managing the organizational growth that has placed a strain on resources. Alarm.com’s ability to tackle these competitive and operational challenges will be vital for its continued success in the rapidly evolving smart home services industry.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2015 | Q3 FY2015 | QoQ | Q4 FY2014 | YoY |
|---|---|---|---|---|---|
| Revenue | $18.2M | $17.8M | +2.1% | — | — |
| Gross profit | -$1.9M | -$2.1M | +11.5% | — | — |
| Gross margin | -10.3% | -11.9% | +1.6 pp | — | — |
| Research & development | $13.3M | $9.8M | +35.6% | — | — |
| Sales & marketing | $7.8M | $8.4M | -7.0% | — | — |
| General & administrative | $10.0M | $9.9M | +0.3% | — | — |
| Total operating expenses | $32.6M | $29.7M | +9.7% | — | — |
| Operating income (loss) | $4.2M | $4.3M | -2.2% | — | — |
| Operating margin | 23.3% | 24.3% | -1.0 pp | — | — |
| Net income (loss) | $3.0M | $3.2M | -7.4% | — | — |
| Net margin | 16.4% | 18.1% | -1.7 pp | — | — |
| Diluted EPS | $0.12 | $0.07 | +$0.05 | — | — |
Risks
Our quarterly results of operations have historically fluctuated due to factors like changes in product mix and demand for our platform and solutions, which may cause our stock price to decline if we fail to meet expectations.
We face intense competition from companies such as iControl Networks, Honeywell, Comcast, AT&T, and Time Warner, which have larger resources and customer bases. This competition could adversely affect our sales and profitability.
SaaS KPIs
All quarters →SaaS and License Revenue Renewal Rate
Summary, forecast, risks and KPIs are extracted from Alarm.com Holdings, Inc.'s SEC filings for Q4 FY2015 (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.