Alarm.com Reports SaaS, License Revenue Increase 25% in Q1 2016

Strong first quarter results show an increase in total revenue of 28% to $59 million for the quarter compared to $46 million for the same period in 2015. Net income was $2.7 million for the quarter.

Rodney Bosch

Alarm.com (NASDAQ:ALRM) issued its quarterly earnings results on Tuesday, reporting 12 cents earnings per share for the first quarter ending March 31, beating analysts’ consensus estimates of 11 cents. The company earned $59 million during the quarter, compared to analyst estimates of $53.83 million.

SaaS and license revenue increased 25 percent to $40 million for the quarter, compared to $32 million for the same period the year prior. Total revenue increased 28 percent to $59 million for the quarter, compared to $46 million for the same period the year prior. Net income was $2.7 million for the quarter, compared to $3 million for the same period the year prior. Adjusted EBITDA increased to $10.2 million for the quarter, compared to $7 million for the same period the year prior.

The company said its operating cash flow doubled over Q1 2015, ending the first quarter with more than $135 million of cash its balance sheet. During an earnings conference call on Tuesday, Steve Trundle, president and CEO, said, in addition to Alarm.com’s strong financial performance, the company also made progress in the areas of product innovation, customer engagement and international distribution.

During the quarter the company expanded its portfolio of indoor and outdoor cameras offered at differing price points to better engage a wider set of customers. Trundle said video is an increasingly important area for the company.

“Subscribers who purchase an Alarm.com video solution from one of our service providers tend to invest more and engage more with our systems,” he said during the conference call. “Video is also a core component of most commercial security deployments.”

Alarm.com also launched a new smart video doorbell suite in partnership with SkyBell Technologies, enabling what the company bills as the first fully integrated mobile app experience with SkyBell HD. Trundle said the company views the Doorbell as a natural extension of its video footprint “and expect to equip our service providers with a range of form factors at different price points over time.”

Alarm.com recently began working with the two leading security brands in the Australian market, ADT Australia and Chubb Home Security. Trundle said the company will be targeting approximately 9 million homes in Australia.

“Our partnership with Securitas is also moving to the next phase. A marketing pilot will take place later this month and we continue to expect a broader launch into several European markets by the end of year,” Trundle said.

The company traded up 3.2 percent during midday trading on Tuesday, reaching $22.60. The stock’s market capitalization is $1.03 billion. The company has a 50-day moving average of $22.54 and a 200-day moving average of $18.37. Alarm.com Holdings has a 12-month low of $10.26 and a 12-month high of $24.22.