Alarm.com Holdings issued quarterly earnings results on Monday, reporting 15 cents earnings per share for the second quarter, beating Thomson Reuters’ consensus estimate by 4 cents. The company earned $64.42 million during the quarter, a 24 percent increase compared to the same quarter last year and besting consensus projections of $58.6 million.

Software as a Service (SaaS) and license revenue increased 23 percent to $42 million for the second quarter, compared to $34.1 million for the same period last year.  The company attributed the vast majority of the growth in SaaS and license revenue to its core interactive security business.

Net income for the second quarter was $1.9 million, compared to $2.5 million for the second quarter of 2015. Adjusted EBITDA increased 50 percent to $11.9 million, compared to $7.9 million for the second quarter of 2015.

During an earnings call on Monday, Alarm.com Corporate Controller & Interim CAO AJ Gollinger said the company’s SaaS and license revenue visibility remains high as evidenced by a 93 percent renewal rate in the second quarter.

“This was right at the midpoint of our historical range of 92 percent to 94 percent. SaaS and license revenue gross margin increased to 83 percent during the second quarter of 2016, up a 100 basis points over the prior year. This improvement was largely due to our increased scale,” he said.

The company reported hardware and other revenue for the second quarter increased 26 percent over the prior year to $22 million. Camera and video doorbell sales shot up 86 percent year-over-year.

“We are pleased to see our efforts to help drive video-related hardware sales through our service provider channel were successful as these customers tend to invest and engage more with their systems,” says Gollinger said.

In June, Alarm.com announced a definitive agreement to acquire the Connect and Piper business units from privately held Icontrol Networks for $140 million in cash and debt. The Connect business unit develops and sells a custom on-premise software platform used by ADT to power its Pulse residential security and automation platform. Piper sells a DIY, WiFi-enabled video and home automation hub.

During the earnings call, Alarm.com President and CEO Steve Trundle said the transaction will allow the company to increase its R&D capabilities and provide a clear path to greater participation in the Internet of Things (IoT) trend. He described Connect as a growing business as evidenced by the near 100 percent increase in ADT Pulse subscribers from Q3 of 2014 to Q1 of this year. ADT Pulse has approximately 1.6 million subscribers, representing about 25 percent of the company’s 6.6 million subscribers.

Shares of Alarm.com closed Monday’s regular session up $2.10 or 6.8 percent to $32.93.

In an investor’s report released Tuesday, Imperial Capital stated it is maintaining its in-line rating and raising its one-year price target to $30 from $24.50 on ALRM shares. Imperial Capital’s price target is about 4 percent above the recent share price.

“We believe Alarm.com is well on its way towards standardizing much of the alarm dealer network around its interactive network platform, while adding a potential DIY revenue enhancement through the Piper acquisition,” Imperial Capital stated.