Alarm.com Q3 Revenues Hit $90M, Up 33%
Alarm.com reports year-over-year Q3 revenues of $90M, an increase of 32.6% over 2016's Q3 and a 4.6% jump vs. Q2 revenues this year. Video doorbell cited as key to success.
Alarm.com Holdings (Nasdaq: ALRM) reported total net revenues of $90 million in the third quarter, marking an increase of 4.6 percent above the previous quarter and 32.6 percent year over year. The company attributed the positive revenues — which beat the Zacks Consensus Estimate of $83 million — to strength in its software as a service (SaaS) and license revenue, and hardware segments.
SaaS and license revenue increased 39 percent year over year to $61.9 million, accounting for 69 percent of the third quarter revenues. The revenue figure includes contribution from Connect, which was acquired in March. The revenue renewal rate remained at 93 percent in the third quarter, which the company said was consistent with its second quarter performance.
Revenues in the hardware segment increased 20.8 percent year over year to $28 million and contributed the remaining 31 percent of total revenues. The company said the increase was driven by strong sales of video cameras, which the company introduced in the second quarter.
Total revenue for the full-year 2017 is expected to be in the range of $332.8 million to $334 million, which includes anticipated hardware and other revenue in the range of $98 million to $99 million.
Despite the positive news, the company's stock price fell drastically after the announcement, and was down nearly 13 percent in price to $40.95 per share.
Product Roadmap, Partner Update
During an earnings call on Wednesday, Alarm.com President and CEO Steve Trundle discussed the company’s recent partner summit that attracts both service provider and ecosystem partners. At the event, the company presented its latest products and services along with a glimpse of its R&D roadmap. Trundle said the partner summit provides the opportunity to hear from service providers and how Alarm.com solutions are performing in the market.
Trundle said “[m]ost of our service providers are doing very well” and in particular “our large base of smaller and highly local dealers.” He said increased consumer confidence is beginning to drive more builder activity, and that the company’s smaller dealers often have a multiple local builder relationships.
“Increased confidence, along with better technology is also causing the typical customer to purchase a bigger smartphone system, than was the case a couple of years ago,” Trundle said. “Our smaller dealers tend to perform well in an environment, where the customers want a larger system, with a more highly customized installation. So we are seeing strength there.”
Trundle highlighted a few new platform capabilities that were released during the third quarter. The company added two-way audio functionality to its indoor residential cameras. Updates were released to both the mobile and Apple TV applications. And the company “further differentiated our video doorbell solution, by taking advantage of integration opportunities that only exist when a single holistic platform underlies the smart home,” he explained.
Alarm.com doorbell users can now see who is at the door, speak to that person and then temporarily disarm the security system and unlock the door, all from a single interface, Trundle explained.
The company also added humidity control to its thermostat solution. By leveraging humidity sensors already on the Alarm.com smart thermostat, Trundle said, allows subscribers to create a set point for both the temperature and the humidity level in their property.
“Alarm.com intelligently balances the two set points to automatically provide comfort and efficiency, while also maintaining an environment, that will help prevent mold formation. This feature will especially benefit customers to use Alarm.com for second homes or multiple business locations,” he said.
He went on to explain the company is introducing a new video camera installation tool that intelligently guides installers through the camera setup process by automatically adapting certain factors, such as a wireless network environment and the experienced level of the technician. “A less experienced tech will be walked through some basic initial steps during installation, and these steps will be skipped, when guiding more experienced technicians,” he said.
7 Clever Ways to Hide Home Technology - CE Pro Download
Most technology products are not that visually appealing. Black boxes and tangled wires do not add to the character of a high-end smart home project. Luckily, our integrator readers have a number of clever solutions so these components don’t have to be visible in your next project.
Although Bosch’s name is quite familiar to those in the security industry, his previous experience has been in daily newspaper journalism. Rodney Bosch is an editor for CE Pro sister publication Security Sales & Integration. Bosch is a graduate of California State University, Fresno with a degree in Mass Communication & Journalism. In 2007, he successfully completed the National Burglar and Fire Alarm Association’s National Training School coursework to become a Certified Level I Alarm Technician. Have a suggestion or a topic you want to read more about? Email Rodney at email@example.com
Follow Rodney on social media:
Control & AutomationProduct Briefs: Telguard Voice Stats; Klipsch Autumn Leaves Project; MoFi, Falcon Acoustics
From Wellness to Labor Crisis: CE Pro Names Top 5 Home-Tech Trends for 2019
Legrand Acquires Smart Home Startup Netatmo
Are Integrators Ready to be ‘Energy Automation Contractors’?
Mozilla’s Naughty-or-Nice List Rates Connected Devices on Privacy and Data Security
View more on Control & Automation
Take Our Latest QuizzesHow Well Do You Understand Ethernet Cables and Connectors?
Quiz: Is Your Company Performance Above or Below Average?
How Much Do You Know About Cell Phone Signal Boosters?
How Efficient Is Your Service Department? Take the Quiz
5G and the Need for Cellphone Signal Boosters—Do You Know Enough?