The Washington region's seventh IPO of 2015 was a Wall Street hit in Friday trading.
Vienna-based Alarm.com priced its shares at $14 in its initial public offering, and its stock rose as much as 26 percent in early trading.
Investor interest in so-called smart-home technology has put focus on companies like Alarm.com, whose home-security technology allows users to control and monitor their systems remotely from their smartphones. Alarm.com was chosen by Apple Inc. (NYSE: AAPL) to demonstrate its smart-home solutions on stage at its Apple Watch launch this spring.
According to Senior Vice President of Marketing Jay Kenny, the company believes that security and safety are the leading drivers of smart home adoption.
"There's been a transition over the last few years from selling a security system to selling a smart-home security system," he said.
The company currently services about 2.3 million homes and businesses, connecting about 25 million devices, but sees tremendous growth opportunity both domestically and abroad.
Though the company has been active since 2000, the mobile aspect of its services was not made available until 2009. Kenny described that as a turning point for the company.
"That was really one of the key transition points for customers," he said. "It's the type of service that's gone through this transition, from being nice to have to becoming more and more of a need-to-have."
He added: "People now expect a mobile app. Connecting devices in a single user interface is something consumers are becoming more aware of and expect in their solutions."
The company has partnered with more than 5,000 security service providers who sell and install the Alarm.com software platform, which connects the increasing number of Internet-connected home devices — thermostats, locks, garage doors and lighting, to name a few.
Proceeds from the IPO will be used primarily for technology development, though Kenny would not provide specifics. The "Internet of Things" market is one that's constantly growing, however, providing Alarm.com opportunities both for integrating new devices and new company partnerships into the technology platform.
"There are a lot of new devices coming on and we're always looking at what makes sense," Kenny said. "There's a ton of opportunity moving forward to pull a lot of devices into our core platform."
Global expansion is also a priority for investment. The company has already launched in a number of countries across Latin America, including Brazil, Chile, Colombia and Mexico, with plans for launches in New Zealand, South Africa and Turkey.
Alarm.com was born at MicroStrategy (NASDAQ: MSTR), which sold the division to ABS Capital Partners for $27.7 million six years ago.
Alarm.com sold 7 million shares to the public, raising $98 million. Friday's stock gain values the company at nearly $780 million, according to Bloomberg data.
Underwriters still have the option to buy an additional 525,000 shares of Alarm.com stock, boosting its initial offering proceeds to more than $105 million.
Alarm.com stock (NASDAQ: ALRM) was up $3.48 to $17.48 per share in Friday morning trading.
Vienna-based Alarm.com priced its shares at $14 in its initial public offering, and its stock rose as much as 26 percent in early trading.
Investor interest in so-called smart-home technology has put focus on companies like Alarm.com, whose home-security technology allows users to control and monitor their systems remotely from their smartphones. Alarm.com was chosen by Apple Inc. (NYSE: AAPL) to demonstrate its smart-home solutions on stage at its Apple Watch launch this spring.
According to Senior Vice President of Marketing Jay Kenny, the company believes that security and safety are the leading drivers of smart home adoption.
"There's been a transition over the last few years from selling a security system to selling a smart-home security system," he said.
The company currently services about 2.3 million homes and businesses, connecting about 25 million devices, but sees tremendous growth opportunity both domestically and abroad.
Though the company has been active since 2000, the mobile aspect of its services was not made available until 2009. Kenny described that as a turning point for the company.
"That was really one of the key transition points for customers," he said. "It's the type of service that's gone through this transition, from being nice to have to becoming more and more of a need-to-have."
He added: "People now expect a mobile app. Connecting devices in a single user interface is something consumers are becoming more aware of and expect in their solutions."
The company has partnered with more than 5,000 security service providers who sell and install the Alarm.com software platform, which connects the increasing number of Internet-connected home devices — thermostats, locks, garage doors and lighting, to name a few.
Proceeds from the IPO will be used primarily for technology development, though Kenny would not provide specifics. The "Internet of Things" market is one that's constantly growing, however, providing Alarm.com opportunities both for integrating new devices and new company partnerships into the technology platform.
"There are a lot of new devices coming on and we're always looking at what makes sense," Kenny said. "There's a ton of opportunity moving forward to pull a lot of devices into our core platform."
Global expansion is also a priority for investment. The company has already launched in a number of countries across Latin America, including Brazil, Chile, Colombia and Mexico, with plans for launches in New Zealand, South Africa and Turkey.
Alarm.com was born at MicroStrategy (NASDAQ: MSTR), which sold the division to ABS Capital Partners for $27.7 million six years ago.
Alarm.com sold 7 million shares to the public, raising $98 million. Friday's stock gain values the company at nearly $780 million, according to Bloomberg data.
Underwriters still have the option to buy an additional 525,000 shares of Alarm.com stock, boosting its initial offering proceeds to more than $105 million.
Alarm.com stock (NASDAQ: ALRM) was up $3.48 to $17.48 per share in Friday morning trading.