Alarm.com Holdings Inc (ALRM) Q1 2025 Earnings Call Highlights: Strong Growth in SaaS Revenue ...

In This Article:

  • SaaS and License Revenue: $163.8 million, a 9% year-over-year increase.

  • Total Revenue: $238.8 million, a 7% year-over-year increase.

  • Adjusted EBITDA: $43.5 million, a 17.5% year-over-year increase.

  • GAAP Net Income: $27.7 million, an 18.4% year-over-year increase.

  • Non-GAAP Adjusted Net Income: $30.4 million, an 11.3% year-over-year increase.

  • GAAP EPS: $0.52 per diluted share.

  • Non-GAAP Adjusted EPS: $0.54 per diluted share, an 8% year-over-year increase.

  • Gross Profit: $160.6 million, a 9.4% year-over-year increase.

  • Operating Expenses: $130.9 million; $114.4 million excluding stock-based compensation, a 4.6% year-over-year increase.

  • Free Cash Flow: $17.9 million.

  • Revenue Retention for Commercial Subscribers: 98%.

  • Cash and Cash Equivalents: $1.19 billion.

  • 2025 Full-Year Revenue Guidance: $975.8 million to $991.2 million.

  • 2025 Full-Year SaaS and License Revenue Guidance: $675.8 million to $676.2 million.

  • 2025 Full-Year Non-GAAP Adjusted EBITDA Guidance: $190 million to $193 million.

  • 2025 Full-Year Non-GAAP Adjusted Net Income Guidance: $131.5 million to $132.5 million.

  • 2025 Full-Year Non-GAAP EPS Guidance: $2.32 to $2.33 per diluted share.

Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Alarm.com Holdings Inc (NASDAQ:ALRM) reported financial results for the first quarter that exceeded expectations, with SaaS and license revenue growing to $163.8 million and adjusted EBITDA reaching $43.5 million.

  • The company experienced strong revenue retention in its commercial segment, with a retention rate of 98%, well above the consolidated target range of 92% to 94%.

  • The 729 Floodlight video camera product has been successful, with installations in nearly 4,000 properties per month and over 85% of these cameras subscribing to the Perimeter Guard solution.

  • EnergyHub, a subsidiary of Alarm.com, announced a strategic partnership with General Motors Energy to integrate GM EVs and home battery storage solutions, enhancing its market position.

  • The company has significantly diversified its supply chain, with less than 10% of hardware revenue derived from products shipped from China, reducing exposure to tariff risks.

Negative Points

  • The SaaS growth rate is expected to moderate as the year progresses, with guidance for Q2 indicating a growth rate closer to 7%, down from nearly 10% in Q1.

  • The residential market in North America is experiencing slower growth due to headwinds such as elevated interest rates affecting new builds and home sales.

  • The company faces competitive pressure from low-cost video products entering the market, particularly from Asia, which could impact demand for its higher-priced offerings.

  • Alarm.com Holdings Inc (NASDAQ:ALRM) is navigating uncertainties related to US tariff policies, which could impact hardware revenue and gross margins.

  • The company is experiencing challenges in promoting video services to existing residential customers, as service providers are focused on new installations rather than upgrades.