Summary
Alarm.com has demonstrated a strong performance over the fiscal year 2019, with total revenue reaching $502.4 million, marking a 19% increase compared to 2018. The company's revenue growth has been driven primarily by an uptick in SaaS and license revenue, which rose by 16% to $337.4 million. This portion of revenue represents the productivity of Alarm.com's service provider partners who play a key role in reselling their services. Hardware sales, which include connected devices like video cameras and smart thermostats, kept pace, forming a notable portion of total revenue.
Particularly important in Alarm.com's year was the acquisition of an 85% stake in OpenEye, a provider of cloud-managed video surveillance solutions. This acquisition, completed for approximately $61.2 million, bolsters Alarm.com's suite of interactive, cloud-based solutions by integrating enterprise-level video management capabilities. Through this acquisition, Alarm.com is poised to expand its market footprint both domestically and internationally.
Alarm.com identifies SaaS and license revenue and Adjusted EBITDA as key performance metrics. For 2019, the company's Adjusted EBITDA reached $108.3 million, a significant growth from $93.1 million in 2018. This non-GAAP measure is integral for management in evaluating core operational performance and has shown a promising upward trajectory over recent years.
Risks remain, however. Their quarterly results have fluctuated historically and may continue to do so, creating potential investor and analyst expectation mismatches which could depress stock value. Moreover, while the company has experienced significant growth, maintaining such a trajectory will be challenging. Efficiently managing their growing operations, especially as they expand internationally, will be pivotal.
Additionally, Alarm.com's reliance on external hardware vendors poses supply chain risks. Any interruption or quality issues in hardware supply could impact their ability to deliver consistent, high-quality service.
Globally, only 3% of Alarm.com's revenue comes from outside North America, indicating a vast opportunity for international growth. Given the technology's success in the domestic market, international expansion remains a strategic focus. Yet, success in overseas markets will require careful navigation of regional differences and maintaining product localization across approximately 40 countries.
Overall, while the company has laid a robust foundation for future growth through strategic acquisitions and sustained SaaS revenue advancement, executing its expansion plans amidst fluctuating quarterly results and potential supply chain challenges will define its future success.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2019 | Q3 FY2019 | QoQ | Q4 FY2018 | YoY |
|---|---|---|---|---|---|
| Revenue | $140.5M | $127.9M | +9.9% | $111.4M | +26.1% |
| Gross profit | $87.9M | $80.4M | +9.4% | $72.5M | +21.2% |
| Gross margin | 62.6% | 62.8% | -0.3 pp | 65.1% | -2.5 pp |
| Research & development | $30.1M | $29.5M | +2.1% | $24.4M | +23.0% |
| Sales & marketing | $18.4M | $14.5M | +26.8% | $16.3M | +12.7% |
| General & administrative | $18.2M | $18.7M | -2.8% | $17.8M | +2.1% |
| Total operating expenses | $73.0M | $68.2M | +7.0% | $64.2M | +13.7% |
| Operating income (loss) | $15.0M | $12.2M | +22.6% | $8.4M | +78.1% |
| Operating margin | 10.6% | 9.5% | +1.1 pp | 7.5% | +3.1 pp |
| Net income (loss) | $12.8M | $17.7M | -27.5% | $7.9M | +61.9% |
| Net margin | 9.1% | 13.8% | -4.7 pp | 7.1% | +2.0 pp |
| Diluted EPS | $0.26 | $0.35 | -$0.09 | $0.16 | +$0.10 |
Risks
Our quarterly results of operations have been inconsistent and may continue to be so, potentially falling short of expectations from investors or analysts, which could negatively impact our stock price.
Significant past growth may not be repeated, and future growth management challenges could negatively impact our financial results and stock price.
We depend on hardware vendors to supply high-quality products; any hiccups in this supply chain could harm our business.
Summary, forecast, risks and KPIs are extracted from Alarm.com Holdings, Inc.'s SEC filings for Q4 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.