Alarm.com Reports Third Quarter 2016 Results

-- SaaS and license revenue of $44.6 million for the third quarter, a 23% increase year-over-year -- Total revenue of $67.8 million for the third quarter, a 26% increase year-over-year -- Net income of $2.6 million and non-GAAP adjusted net income of $9.1 million for the third quarter -- Adjusted EBITDA of $11.7 million for the third quarter

TYSONS, Va., Nov. 14, 2016 (GLOBE NEWSWIRE) -- Alarm.com Holdings, Inc. (Nasdaq:ALRM), the leading platform solution for the connected home and business, today reported financial results for its third quarter ended September 30, 2016. The company also provided its financial outlook for 2016 fourth quarter SaaS and license revenue and increased its guidance for the full year 2016.

"We continued to execute our strategy in the third quarter and are pleased with the solid results," said Steve Trundle, President and CEO of Alarm.com.  "Along with our service providers, we remain well positioned to capture growing momentum in the market for connected home and business solutions.  At the same time, we continued to invest in our platform to open new market opportunities for Alarm.com and our partners."

Third Quarter 2016 Results
  • SaaS and license revenue increased 23% to $44.6 million for the third quarter of 2016, including $0.4 million of non-recurring revenue, compared to $36.2 million for the third quarter of 2015.  
  • Total revenue increased 26% to $67.8 million for the third quarter of 2016 compared to $54.0 million for the third quarter of 2015.
  • Net income was $2.6 million for the third quarter of 2016 compared to $2.9 million for the third quarter of 2015.
  • Adjusted EBITDA increased to $11.7 million for the third quarter of 2016 compared to $9.7 million for the third quarter of 2015.
  • Net income attributable to common stockholders was $2.6 million for the third quarter of 2016, or $0.05 per diluted share, compared to $2.9 million, or $0.06 per diluted share, for the third quarter of 2015.
  • Non-GAAP adjusted net income increased to $9.1 million for the third quarter of 2016 compared to $6.7 million for the third quarter of 2015.
  • Non-GAAP adjusted net income attributable to common stockholders increased to $9.1 million for the third quarter of 2016, or $0.19 per diluted share, compared to $6.6 million, or $0.14 per diluted share, for the third quarter of 2015.

Balance Sheet and Cash Flow
  • Total cash and cash equivalents were $135.1 million as of September 30, 2016 compared to $128.4 million as of December 31, 2015.
  • For the nine months ended September 30, 2016, cash flows from operations were $8.8 million compared to $21.2 million for the nine months ended September 30, 2015.

Recent Business Highlights
  • Chief Financial Officer Named: Alarm.com announced that Steve Valenzuela will join Alarm.com as its Chief Financial Officer effective November 15. Mr. Valenzuela brings decades of highly relevant executive experience, having served as CFO of five different software companies including SugarCRM, Apigee Corporation, and Zenprise, acquired by Citrix. He previously held financial management positions with companies in the technology industry such as Tandem Computers, Atari and Intel, and various others, ranging from fast-growing start-ups to publicly-traded, multi-billion dollar enterprises.  
  • Hurricane Matthew: More than 500,000 properties serviced by the Alarm.com platform are located in states affected recently by Hurricane Matthew.  At the storm's peak, 9.4% of subscriber systems reported power failures and 9.3% reported broadband failure.  Alarm.com's resilient cellular technology helped to keep those homes and communities secure and the Alarm.com platform communicated more than one thousand panic alarms initiated by end-user customers for police or fire response. 
  • Central Station Visual Verification Deployed: In the event of an alarm, Central Station operators can now view Image Sensor images and video clips from the property while dispatching emergency services.  The opt-in service provides real-time information during emergencies to help improve response time and reduce false alarms. 
  • Mobile App Updates:  Alarm.com updated its MobileTech installation app to provide a completely refreshed layout and new features to help its service providers install and troubleshoot systems more efficiently and accurately and reduce support calls and service visits.  In addition, Alarm.com updated both its Android and iOS mobile app for end-user customers.  Leveraging the latest capabilities on each operating system, Alarm.com's updated app creates more convenient ways for end-user customers to interact with their service and know what's happening at their property.

Financial Outlook

Alarm.com is providing its outlook for 2016 fourth quarter SaaS and license revenue and increasing its guidance for the full year.

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