Alarm.com reports Q1 results, gives outlook for Q2

TYSONS, Va.—Alarm.com reported financial results for its first quarter and provided its financial outlook for Software as a Service (SaaS) and license revenue for the second quarter of 2021 and increased its guidance for the full year of 2021.

“We’re pleased to report solid results to begin the year,” said Steve Trundle, President and CEO of Alarm.com. “During the quarter, we continued to see good momentum in the North American market and our service provider partners continued to drive growth as they used our technology to reinforce their strong position in the connected property market.”

First Quarter 2021 Financial Results as Compared to First Quarter 2020

• SaaS and license revenue increased 16.8 percent to $107.4 million, compared to $91.9 million.
• Total revenue increased 13.5 percent to $172.5 million, compared to $151.9 million.
• GAAP (Generally Accepted Accounting Principles) net income attributable to common stockholders increased to $14.8 million, or $0.29 per diluted share, compared to $8.8 million, or $0.18 per diluted share.
• Non-GAAP adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased to $35.6 million, compared to $29.2 million.
• Non-GAAP adjusted net income attributable to common stockholders increased to $25.8 million, or $0.50 per diluted share, compared to $20.9 million or $0.42 per diluted share.

Balance Sheet and Cash Flow

Total cash and cash equivalents increased to $642.2 million as of March 31, 2021, compared to $253.5 million as of December 31, 2020. The increase in cash and cash equivalents was primarily due to the issuance of $500 million aggregate principal amount of 0 percent convertible senior notes due January 15, 2026 in a private placement to qualified institutional buyers, resulting in proceeds of $484.3 million, net of $15.7 million of transaction fees and other debt issuance costs.

For the quarter ended March 31, 2021, cash flows from operations was $21.2 million and non-GAAP free cash flow was $17.2 million, compared to cash flows from operations of $12.9 million and non-GAAP free cash flow of $9.2 million for the quarter ended March 31, 2020.

For the second quarter of 2021:

• SaaS and license revenue is expected to be in the range of $108.9 million to $109.1 million.

For the full year of 2021:

• SaaS and license revenue is expected to be in the range of $445.5 million to $446.0 million. 
• Non-GAAP adjusted EBITDA is expected to be in the range of $124 million to $130 million.
• Non-GAAP adjusted net income attributable to common stockholders is expected to be in the range of $85.6 million to $90 million, based on an estimated tax rate of 21 percent.

Based on an expected 52.4 million weighted average diluted shares outstanding, non-GAAP adjusted net income attributable to common stockholders is expected to be $1.63 to $1.72 per diluted share.