Preview | Exhibit
-- SaaS and license revenue of $46.9 million for the fourth quarter and $173.5 million for the full year --
-- Total revenue of $69.8 million for the fourth quarter and $261.1 million for the full year --
-- GAAP net income of $3.0 million for the fourth quarter and $10.2 million for the full year --
-- Non-GAAP adjusted EBITDA of $14.3 million for the fourth quarter and $49.0 million for the full year --
TYSONS, VA., March 15, 2017-- Alarm.com Holdings, Inc. (Nasdaq: ALRM), the leading platform for the intelligently connected property, today reported financial results for its fourth quarter and full year ended December 31, 2016. Alarm.com also introduced its financial outlook for 2017 first quarter SaaS and license revenue and its guidance for the full year 2017.
“We’re pleased to report solid results for the quarter as we closed another year of continued growth and profitability,” said Steve Trundle, President and CEO of Alarm.com. “During the year, we launched innovative new technology for our service provider partners, and we continued to develop growth initiatives that we believe will allow us to extend the Alarm.com platform into new markets in the future. With the acquisition of Connect and Piper from Icontrol Networks now completed, we can grow our research and development capacity and further increase our participation in the Internet of Things secular trend.”
Fourth Quarter 2016 Financial Results:
• | SaaS and license revenue grew to $46.9 million, up 21% year over year. |
• | Total revenue grew to $69.8 million, up 23% year over year. |
• | GAAP net income was $3.0 million, or $0.06 per diluted share. |
• | Non-GAAP adjusted EBITDAincreased to $14.3 million, up 47% year over year. |
• | Non-GAAP adjusted net incomeincreased to $9.1 million, or $0.19 per diluted share. |
Full Year 2016 Financial Results:
• | SaaS and license revenue grew to $173.5 million, up 23% year over year. |
• | Total revenue grew to $261.1 million, up 25% year over year. |
• | GAAP net incomewas $10.2 million, or $0.21 per diluted share. |
• | Non-GAAP adjusted EBITDAincreased to $49.0 million, up 43% year over year. |
• | Non-GAAP adjusted net income increased to $31.1 million, or $0.65 per diluted share. |
Balance Sheet and Cash Flow:
• | Total cash and cash equivalents were $140.6 million as of December 31, 2016 compared to $128.4 million as of December 31, 2015. |
• | For the year ended December 31, 2016, cash flows from operations were $17.5 million compared to $27.1 million for the year ended December 31, 2015. |
Business Highlights
• | Icontrol: On March 8, 2017, Alarm.com completed its previously announced acquisition of two business units, Connect and Piper, from Icontrol Networks, Inc. Connect provides an interactive security and home automation platform for several service providers including ADT Pulse®. Piper designs, produces and sells an all-in-one video and home automation hub. The addition of new technology infrastructure, talent, key |
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relationships and hardware devices is expected to help accelerate Alarm.com's development of intelligent, data-driven smart home and business services.
• | ObjectVideo Acquisition: In January 2017, Alarm.com acquired substantially all of ObjectVideo, Inc’s. business, including the company’s products, technology portfolio and personnel. ObjectVideo is a pioneer in the fields of video analytics and computer vision, with technology that extracts meaning and intelligence from video streams in real-time to enable object tracking, pattern recognition and activity identification. The business, now called ObjectVideo Labs, is a leader in providing advanced research and engineering services for federal government customers. The capabilities and expertise of the ObjectVideo Labs team are expected to help accelerate Alarm.com’s research and development of video services and video analytics applications. |
• | Launched Insights Engine: Alarm.com announced broad availability of the Insights Engine in 2016. Driven by proprietary machine learning capabilities, the Insights Engine automatically detects and alerts subscribers about unexpected activity around their property. This proactive safeguard creates high-value engagement with the system to enhance the subscriber experience. |
• | Expanded 4G LTE Cellular Gateway Development: Alarm.com extended its leadership position in cellular communications in 2016 with the expanded deployment of 4G LTE cellular gateway modules. Alarm.com’s service provider partners now have five security panel options for deploying services with the best in class network life and connection speeds offered by 4G LTE cellular communications. |
• | Enhanced Commercial Services: Smarter Business Security from Alarm.com provides a single solution for intelligently securing, automating and managing individual or multiple business properties. The 2016 addition of new commercial-grade security panels and locks to the Alarm.com device ecosystem enables a fully integrated security, automation, energy management, access and video solution that is tailored for the small and medium sized business. The Alarm.com platform enables unique, value-add capabilities such as actionable business insights that provide visibility into customer traffic trends, employee performance and unexpected activity in a facility. |
• | Business Intelligence: Business Intelligence is a value-added service from Alarm.com that generates actionable insights for service providers to maximize the value of existing and new accounts. Based on deep analysis of historical and real-time information generated by billions of data points, Alarm.com can identify account attributes and characteristics associated with high subscriber engagement which can be used to lower attrition. Business Intelligence insights were introduced to help service providers create and maintain high-value accounts. |
• | Award Winning Technology and Work Environment: Alarm.com was recognized for innovation and product leadership throughout 2016. For the second consecutive year, Alarm.com was honored as a Top Workplace for its high employee engagement, quality work environment and focus on innovation. The Alarm.com Academy was recognized with a Most Valuable Product Award from Security Sales and Integration magazine for its industry-leading dealer training programs, and Alarm.com’s Partner Services Platform received an Innovation Award from the Electronic Security Expo. |
Financial Outlook
Alarm.com is introducing its outlook for 2017 first quarter SaaS and license revenue and its guidance for the full year.
This includes an anticipated partial year contribution from the closing of the acquisition of the Connect and Piper business units from Icontrol Networks on March 8, 2017.
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For the first quarter of 2017:
• | SaaS and license revenue is expected to be in the range of $49.3 million to $49.5 million. |
For the full year 2017:
• | SaaS and license revenue is expected to be in the range of $231 million to $232.5 million. |
• | Total revenue is expected to be in the range of $322 million to $325.5 million, which includes anticipated hardware and other revenue for the year in the range of $91 million to $93 million. |
• | Adjusted EBITDA is expected to be in the range of $65 million to $66 million. |
• | Non-GAAP adjusted net income is expected to be in the range of $36 million to $37 million. |
• | Based on an expected 49.4 million weighted average shares outstanding (diluted), non-GAAP adjusted net income is expected to be in the range of $0.73 to $0.75 per diluted share. |
Conference Call and Webcast Information
Alarm.com’s fourth quarter results conference call and webcast is scheduled to begin at 5:00 p.m. ET on March 15, 2017. To participate on the live call, analysts and investors should dial 877.445.1593 (U.S./Canada) or 267.753.2138 (International) at least ten minutes prior to the start time of the call. A telephonic replay of the call will be available through March 22, 2017 by dialing 800.585.8367 (U.S./Canada) or 855.859.2056 (International) and providing Conference ID: 77162881. Alarm.com will also offer a live and archived webcast of the conference call accessible via Alarm.com’s Investor Relations website at http://investors.alarm.com/.
About Alarm.com Holdings, Inc.
Alarm.com is the leading platform for the intelligently connected property. Millions of people use Alarm.com's technology to monitor and control their property from anywhere. Centered on security and remote monitoring, our platform addresses a wide range of market needs and enables application-based control for a growing variety of Internet of Things (IoT) devices. Our security, video monitoring, intelligent automation and energy management solutions are available through our network of thousands of professional service providers in North America and around the globe. Alarm.com's common stock is traded on Nasdaq under the ticker symbol ALRM. For more information, please visit www.alarm.com.
Non-GAAP Financial Measures
To supplement our consolidated selected financial data presented on a basis consistent with GAAP, this press release contains certain non-GAAP financial measures, including adjusted EBITDA, non-GAAP adjusted net income, non-GAAP adjusted net income attributable to common stockholders and non-GAAP adjusted net income per share. We have included non-GAAP measures in this press release because they are key measures used by our management to understand and evaluate our core operating performance and trends and generate future operating plans, make strategic decisions regarding the alloca