-- Third quarter total revenue increased
21.1% year-over-year to $192.3 million --
-- Third quarter SaaS and license revenue
increased 17.9% year-over-year to $118.1 million --
-- Third quarter GAAP net income
attributable to common stockholders was $13.5 million, compared to
$36.1 million for the third quarter of 2020 --
-- Third quarter non-GAAP adjusted EBITDA
increased 8.9% year-over-year to $37.6 million, compared to $34.5
million for the third quarter of 2020 --
Alarm.com Holdings, Inc. (Nasdaq: ALRM), the leading platform
for the intelligently connected property, today reported financial
results for its third quarter ended September 30, 2021. Alarm.com
also provided its financial outlook for SaaS and license revenue
for the fourth quarter of 2021 and increased its guidance for the
full year of 2021.
“We are pleased to report another quarter of solid results,”
said Steve Trundle, President and CEO of Alarm.com. “During the
third quarter, we saw continued momentum as our service provider
partners successfully deployed the growing range of Alarm.com’s
connected property solutions. The Alarm.com team also introduced
innovative new technology, including video analytics capabilities,
that will expand our opportunities in both the residential and
commercial markets.”
Third Quarter 2021 Financial Results as Compared to Third Quarter
2020
- SaaS and license revenue increased 17.9% to $118.1 million,
compared to $100.1 million.
- Total revenue increased 21.1% to $192.3 million, compared to
$158.9 million.
- GAAP net income attributable to common stockholders decreased
to $13.5 million, or $0.26 per diluted share, compared to $36.1
million, or $0.71 per diluted share, primarily due to a gain of
$24.7 million on the sale of an investment in one of our platform
partners during the third quarter of 2020.
- Non-GAAP adjusted EBITDA(*) increased to $37.6 million,
compared to $34.5 million.
- Non-GAAP adjusted net income attributable to common
stockholders(*) increased to $27.4 million, or $0.53 per diluted
share, compared to $24.8 million or $0.49 per diluted share.
Balance Sheet and Cash
Flow
- Total cash and cash equivalents increased to $700.3 million as
of September 30, 2021, compared to $253.5 million as of December
31, 2020. The increase in cash and cash equivalents was primarily
due to the January 2021 issuance of $500.0 million aggregate
principal amount of 0% 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 September 30, 2021, cash flows from
operations was $37.9 million, compared to $18.6 million for the
quarter ended September 30, 2020. For the quarter ended September
30, 2021, non-GAAP free cash flow(*) was $36.3 million, compared to
$15.1 million for the quarter ended September 30, 2020.
(*) Reconciliations of the non-GAAP measures are set forth at
the end of this press release.
Recent Business
Highlights
- Launched Perimeter Guard: Based on Alarm.com's advanced
video analytics software, Perimeter Guard can proactively identify
and engage would-be intruders before they can threaten physical
property. Perimeter Guard enables certain outdoor video cameras to
automatically respond to suspicious activity with audible alerts
and flashing red LED lights to deter potential break-ins.
Subscribers can target specific activity and areas of their
property with loitering detection, directional tripwires and ground
zones capabilities. Perimeter Guard is offered as an enhancement to
Alarm.com’s video analytics services and supports residential and
commercial subscribers.
- Introduced Commercial Video Analytics: Business Activity
Analytics significantly enhances Alarm.com’s commercial video
offering with capabilities that can help improve and optimize
business operations. Commercial subscribers can intelligently
monitor a full range of customer and employee activity through
occupancy tracking, people counting, queue monitoring, crowd
gathering and heat mapping. Real-time notifications and powerful
business intelligence reporting can help streamline customer flows,
reduce wait times, measure the effectiveness of marketing campaigns
and enforce occupancy and social distancing limits.
- Released Pro-Series Commercial Video Cameras: Designed
to commercial specifications, the Pro-Series line enables the full
range of Alarm.com’s Business Activity Analytics and enhances the
forensic image quality of recorded video. The cameras are compliant
with National Defense Authorization Act and are available in a
turret, bullet and dome form factor with 4-megapixel image sensor
options and varifocal lenses. Whether a commercial customer needs
to monitor a large area such as a parking lot, or a narrow hallway
or a door, Pro-Series cameras can flexibly adjust to meet the
robust coverage and image quality requirements of mid-market
commercial installations.
- Improving Service Provider Efficiency and Customer
Experience: Alarm.com’s Partner Services Platform now provides
a new Service Dashboard, a unified interface that displays key
operational and customer experience indicators, including
technician performance, system reliability and customer engagement
metrics. Service managers can quickly identify and implement
operational efficiencies through Alarm.com’s service provider
tools, including the award-winning On Site Wrap Up capability and
System Check tool.
Financial Outlook
Alarm.com is providing its outlook for SaaS and license revenue
for the fourth quarter of 2021 and increasing its guidance for the
full year of 2021 based upon current management expectations.
For the fourth quarter of 2021:
- SaaS and license revenue is expected to be in the range of
$118.1 million to $118.3 million.
For the full year of 2021:
- SaaS and license revenue is expected to be in the range of
$456.7 million to $456.9 million.
- Total revenue is expected to be in the range of $721.7 million
to $731.9 million, which includes anticipated hardware and other
revenue in the range of $265.0 million to $275.0 million.
- Non-GAAP adjusted EBITDA is expected to be in the range of
$138.0 million to $140.0 million.
- Non-GAAP adjusted net income attributable to common
stockholders is expected to be in the range of $97.3 million to
$98.0 million, based on an estimated tax rate of 21.0%.
- Based on an expected 52.1 million weighted average diluted
shares outstanding, non-GAAP adjusted net income attributable to
common stockholders is expected to be $1.87 to $1.88 per diluted
share.
The guidance provided above is forward-looking in nature. Actual
results may differ materially. See the cautionary note regarding
“Forward-Looking Statements” below. The guidance provided above is
based on expectations as of the date of this press release and
Alarm.com undertakes no obligation to update guidance after such
date.
Conference Call and Webcast
Information
Alarm.com will host a conference call to discuss its third
quarter 2021 financial results and its outlook for the fourth
quarter and full year of 2021. A live audio webcast is scheduled to
begin at 4:30 p.m. ET on November 4, 2021. To participate on the
live call, analysts and investors should dial 866.588.3290
(U.S./Canada) or 262.558.6169 (International) at least ten minutes
prior to the start time of the call. A telephonic replay of the
call will be available through November 11, 2021 by dialing
855.859.2056 (U.S./Canada) or 404.537.3406 (International) and
providing Conference ID: 4968939. Alarm.com will also offer a live
and archived webcast of the conference call accessible on
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 consumers and businesses depend on
Alarm.com's technology to manage and control their property from
anywhere. Our platform integrates with a growing variety of
Internet of Things (IoT) devices through our apps and interfaces.
Our security, video, access control, intelligent automation, energy
management, and wellness 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 income before income taxes, non-GAAP adjusted net
income, non-GAAP adjusted income attributable to common
stockholders before income taxes, non-GAAP adjusted net income
attributable to common stockholders, non-GAAP adjusted net income
attributable to common stockholders per share and non-GAAP free
cash flow. We have included non-GAAP measures in this press release
because they are financial, operating or liquidity measures used by
our management to (i) understand and evaluate our core operating
performance and trends and generate future operating plans, (ii)
make strategic decisions regarding the allocation of capital and
investments in initiatives that are focused on cultivating new
markets for our solutions and (iii) provide useful information to
management about the amount of cash generated by the business after
necessary capital expenditures. We also use adjusted EBITDA as a
performance measure under our executive bonus plan. Further, we
believe that these non-GAAP measures of our financial results
provide useful information to investors and others in understanding
and evaluating our results of operations, business trends and
financial condition. While we believe the use of these non-GAAP
measures provides useful information to investors and management in
analyzing our financial performance, non-GAAP measures have
inherent limitations in that they do not reflect all of the amounts
and transactions that are included in our financial statements
prepared in accordance with GAAP. Non-GAAP measures do not serve as
an alternative to GAAP nor do we consider our non-GAAP measures in
isolation, accordingly we present non-GAAP financial measures only
in connection with GAAP results. We urge investors to consider
non-GAAP measures only in conjunction with our GAAP financials and
to review the reconciliation of our non-GAAP financial measures to
the comparable GAAP financial measures, which are included in this
press release.
We consider non-GAAP free cash flow to be a liquidity measure,
which we define as cash flows from operating activities less
purchases of property and equipment.
With respect to our expectations under “Financial Outlook”
above, reconciliation of adjusted EBITDA and adjusted net income
attributable to common stockholders guidance to the closest
corresponding GAAP measure is not available without unreasonable
efforts on a forward-looking basis due to the high variability,
complexity and low visibility with respect to the charges excluded
from these non-GAAP measures, in particular, non-ordinary course
litigation expense, acquisition-related expense and tax windfall
adjustments can have unpredictable fluctuations based on unforeseen
activity that is out of our control and/or cannot reasonably be
predicted. We expect the above charges to have a significant and
potentially highly variable impact on our future GAAP financial
results.
We exclude one or more of the following items from non-GAAP
financial and operating measures:
Stock-based compensation expense: We exclude stock-based
compensation expense, which relates to stock options and other
forms of equity incentives primarily awarded to employees of
Alarm.com, because they are non-cash charges that we do not
consider when assessing the operating performance of our business.
Additionally, the determination of stock-based compensation expense
can be calculated using various methodologies and is dependent upon
subjective assumptions and other factors that vary on a
company-by-company basis. Therefore, we believe that excluding
stock-based compensation expense from our non-GAAP financial
measures improves the comparability of our results to the results
of other companies in our industry.
Secondary offering expense: We exclude secondary offering
expense because we do not consider costs associated with the
secondary offering to be indicative of our core operating
performance and we believe that the exclusion of this expense
allows us to better provide meaningful information about our
operating performance, facilitates comparisons to our historical
operating results and improves the comparability of our results to
the results of other companies in our industry.
Litigation expense: We exclude non-ordinary course litigation
expense because we do not consider legal costs and settlement fees
incurred in litigation and litigation-related matters of
non-ordinary course lawsuits and other disputes, particularly costs
incurred in ongoing intellectual property litigation, to be
indicative of our core operating performance. We do not adjust for
ordinary course legal expenses, including those expenses resulting
from maintaining and enforcing our intellectual property portfolio
and license agreements.
Acquisition-related (benefit) / expense: Included in operating
expenses are incremental costs directly related to business and
asset acquisitions as well as changes in the fair value of
contingent consideration liabilities, when applicable. We exclude
acquisition-related expense from our non-GAAP financial measures
because we believe that the exclusion of this expense allows us to
better provide meaningful information about our operating
performance, facilitates comparisons to our historical operating
results, improves the comparability of our results to the results
of other companies in our industry, and ultimately, we believe
helps investors better understand the acquisition-related expense
and the effects of the transaction on our results of
operations.
Depreciation expense: We record depreciation primarily for
investments in property and equipment. We exclude depreciation in
calculating adjusted EBITDA because we do not consider depreciation
when we evaluate our ongoing business operations. For non-GAAP
adjusted net income, non-GAAP adjusted net income attributable to
common stockholders and non-GAAP adjusted net income attributable
to common stockholders per share, basic and diluted, we do not
exclude depreciation.
Amortization expense: GAAP requires that operating expenses
include the amortization of acquired intangible assets, which
principally include acquired customer relationships, developed
technology and trade names. We exclude amortization of intangibles
from our non-GAAP financial measures because we do not consider
amortization expense when we evaluate our ongoing business
operations, nor do we factor amortization expense into our
evaluation of potential acquisitions, or our measurement of the
performance of those acquisitions. We believe that the exclusion of
amortization expense enables the comparison of our performance to
other companies in our industry as other companies may be more or
less acquisitive than us and therefore, amortization expense may
vary significantly by company based on their acquisition history.
Although we exclude amortization of acquired intangible assets from
our non-GAAP financial measures, management believes that it is
important for investors to understand that such intangible assets
were recorded as part of purchase accounting and contribute to
revenue generation.
Amortization of debt discount and debt issuance costs: We record
amortization of debt discount and debt issuance costs related to
our convertible senior notes as interest expense. We exclude
amortization of debt discount and debt issuance costs from our
non-GAAP adjusted net income, non-GAAP adjusted net income
attributable to common stockholders and non-GAAP adjusted net
income attributable to common stockholders per share, basic and
diluted, because we believe that the exclusion of this non-cash
interest expense will provide for more meaningful information about
our financial performance.
Interest expense: We record interest expense primarily related
to our debt facility. We exclude interest expense in calculating
our adjusted EBITDA calculation. For non-GAAP adjusted net income,
non-GAAP adjusted net income attributable to common stockholders
and non-GAAP adjusted net income attributable to common
stockholders per share, basic and diluted, we do not exclude
interest expense other than the interest expense related to the
amortization of debt discount and debt issuance costs related to
our convertible senior notes as discussed above.
Interest income and other income / (expense), net: We exclude
interest income and other income / (expense), net from our non-GAAP
financial measures because we do not consider it part of our
ongoing results of operations.
Income taxes: We exclude the impact related to our provision for
/ (benefit from) income taxes from our adjusted EBITDA calculation.
We do not consider this tax adjustment to be part of our ongoing
results of operations.
Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements may be identified by their
use of terms and phrases such as “anticipate,” “believe,”
“continue,” “designed,” “enable,” “ensure,” “expect,” “intend,”
“will,” and other similar terms and phrases, and such
forward-looking statements include, but are not limited to, the
statements regarding the Company’s opportunities, positioning, the
benefits of recently launched offerings, and the Company’s guidance
for the fourth quarter and full year of 2021 described under
“Financial Outlook” above and key assumptions related thereto. The
events described in these forward-looking statements involve known
and unknown risks, uncertainties and other factors that could cause
actual results to differ materially from the results anticipated by
these forward-looking statements, including, but not limited to:
the Company's results and business operations may be negatively
impacted by the COVID-19 pandemic, the Company’s actual operating
results may differ significantly from any guidance provided,
certain precautions the Company is taking due to the COVID-19
pandemic could harm its business, the Company’s quarterly results
may fluctuate, downturns in general economic and market conditions,
including due to the COVID-19 pandemic, may reduce demand, the
reliability of the Company’s network operations centers, the
Company’s ability to retain service provider partners and
residential and commercial subscribers and sustain its growth rate,
the Company’s ability to manage growth and execute on its business
strategies, the effects of increased competition and evolving
technologies, the Company’s ability to integrate acquired assets
and businesses and to manage service provider partners, customers
and employees, consumer demand for interactive security, video
monitoring, intelligent automation, energy management and wellness
solutions, the Company’s reliance on its service provider network
to attract new customers and retain existing customers, the
Company's dependence on its suppliers, the reliability of the
Company’s hardware and wireless network suppliers and enhanced
United States tax, tariff, import/export restrictions, or other
trade barriers, particularly tariffs from China as well as other
risks and uncertainties discussed in the “Risk Factors” section of
the Company’s Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on August 5, 2021 and other
subsequent filings the Company makes with the Securities and
Exchange Commission from time to time, including its Form 10-Q for
the quarter ended September 30, 2021. In addition, the
forward-looking statements included in this press release represent
the Company’s views and expectations as of the date hereof and are
based on information currently available to the Company. The
Company anticipates that subsequent events and developments may
cause the Company’s views to change. However, while the Company may
elect to update these forward-looking statements at some point in
the future, the Company specifically disclaims any obligation to do
so except as required by law. These forward-looking statements
should not be relied upon as representing the Company’s views as of
any date subsequent to the date hereof.
ALARM.COM HOLDINGS,
INC.
Consolidated Statements of
Operations
(in thousands, except share
and per share data)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
Revenue:
SaaS and license revenue
$
118,059
$
100,126
$
338,628
$
287,780
Hardware and other revenue
74,265
58,725
215,051
164,647
Total revenue
192,324
158,851
553,679
452,427
Cost of revenue:
Cost of SaaS and license revenue
17,425
14,344
49,782
39,673
Cost of hardware and other revenue
62,959
46,839
173,731
128,495
Total cost of revenue
80,384
61,183
223,513
168,168
Operating expenses:
Sales and marketing
22,557
18,410
62,085
52,405
General and administrative
18,689
17,410
64,839
55,634
Research and development
44,143
36,914
130,101
113,280
Amortization and depreciation
7,467
6,878
22,329
20,023
Total operating expenses
92,856
79,612
279,354
241,342
Operating income
19,084
18,056
50,812
42,917
Interest expense
(4,196
)
(556
)
(11,718
)
(2,069
)
Interest income
140
118
446
734
Other income / (expense), net
53
24,753
(70
)
24,910
Income before income taxes
15,081
42,371
39,470
66,492
Provision for / (benefit from) income
taxes
1,787
6,546
(2,864
)
5,471
Net income
13,294
35,825
42,334
61,021
Net loss attributable to redeemable
noncontrolling interest
244
259
779
865
Net income attributable to common
stockholders
$
13,538
$
36,084
$
43,113
$
61,886
Per share information attributable to
common stockholders:
Net income per share:
Basic
$
0.27
$
0.74
$
0.87
$
1.27
Diluted
$
0.26
$
0.71
$
0.83
$
1.22
Weighted average common shares
outstanding:
Basic
49,954,565
49,007,343
49,776,578
48,842,333
Diluted
51,836,239
50,979,679
51,879,061
50,673,752
Three Months Ended
September 30,
Nine Months Ended
September 30,
Stock-based compensation expense included in operating
expenses:
2021
2020
2021
2020
Sales and marketing
$
1,189
$
734
$
3,232
$
2,263
General and administrative
1,974
2,154
7,217
6,033
Research and development
6,255
4,560
16,913
12,605
Total stock-based compensation expense
$
9,418
$
7,448
$
27,362
$
20,901
ALARM.COM HOLDINGS,
INC.
Consolidated Balance
Sheets
(in thousands, except share
and per share data)
(unaudited)
September 30,
2021
December 31,
2020
Assets
Current assets:
Cash and cash equivalents
$
700,307
$
253,459
Accounts receivable, net of allowance for
credit losses of $3,158 and $4,696, respectively, and net of
allowance for product returns of $1,025 and $1,480,
respectively
90,624
83,326
Inventory
56,526
44,281
Other current assets, net of allowance for
credit losses of $3 and $17, respectively
23,310
16,348
Total current assets
870,767
397,414
Property and equipment, net
42,412
44,796
Intangible assets, net
90,476
103,259
Goodwill
112,901
112,838
Deferred tax assets
11,430
21,692
Operating lease right-of-use assets
29,911
33,455
Other assets, net of allowance for credit
losses of $76 and $72, respectively
23,857
18,233
Total assets
$
1,181,754
$
731,687
Liabilities, redeemable noncontrolling
interest and stockholders’ equity
Current liabilities:
Accounts payable, accrued expenses and
other current liabilities
$
62,966
$
53,927
Accrued compensation
21,442
22,307
Deferred revenue
7,037
4,037
Operating lease liabilities
10,242
9,973
Total current liabilities
101,687
90,244
Deferred revenue
9,040
8,492
Convertible senior notes, net
421,112
—
Long-term debt
—
110,000
Operating lease liabilities
32,322
37,697
Other liabilities
8,530
6,811
Total liabilities
572,691
253,244
Redeemable noncontrolling interest
11,889
10,691
Stockholders’ equity
Preferred stock, $0.001 par value,
10,000,000 shares authorized; no shares issued and outstanding as
of September 30, 2021 and December 31, 2020
—
—
Common stock, $0.01 par value, 300,000,000
shares authorized; 50,174,272 and 49,630,773 shares issued; and
50,027,119 and 49,483,620 shares outstanding as of September 30,
2021 and December 31, 2020, respectively
501
496
Additional paid-in capital
492,135
405,831
Treasury stock, at cost; 147,153 shares as
of September 30, 2021 and December 31, 2020
(5,149
)
(5,149
)
Retained earnings
109,687
66,574
Total stockholders’ equity
597,174
467,752
Total liabilities, redeemable
noncontrolling interest and stockholders’ equity
$
1,181,754
$
731,687
ALARM.COM HOLDINGS,
INC.
Consolidated Statements of
Cash Flows
(in thousands)
(unaudited)
Nine Months Ended
September 30,
Cash flows from operating
activities:
2021
2020
Net income
$
42,334
$
61,021
Adjustments to reconcile net income to net
cash from operating activities:
Recovery of credit losses on accounts
receivable
(238
)
(237
)
Reserve for product returns
1,628
1,491
Recovery of credit losses on notes
receivable
(10
)
(368
)
Provision for excess and obsolete
inventory
374
1,178
Amortization on patents and tooling
947
604
Amortization and depreciation
22,329
20,023
Amortization of debt discount and debt
issuance costs
11,590
81
Amortization of operating leases
7,173
6,562
Deferred income taxes
(5,918
)
(1,480
)
Change in fair value of contingent
liability
—
(2,593
)
Stock-based compensation
27,362
20,901
Acquired in-process research and
development
—
3,297
Gain on sale of investment
—
(24,737
)
Loss on early extinguishment of debt
185
—
Changes in operating assets and
liabilities:
Accounts receivable
(8,689
)
(7,131
)
Inventory
(12,619
)
(7,209
)
Other current and non-current assets
(8,368
)
(5,549
)
Accounts payable, accrued expenses and
other current liabilities
10,672
5,897
Deferred revenue
3,548
2,374
Operating lease liabilities
(8,745
)
(7,427
)
Other liabilities
(361
)
(28
)
Cash flows from operating activities
83,194
66,670
Cash flows (used in) / from investing
activities:
Additions to property and equipment
(8,939
)
(10,677
)
Purchases of in-process research and
development
—
(3,297
)
Issuances of notes receivable
—
(600
)
Receipt of payments on notes
receivable
42
2,023
Purchase of investment in unconsolidated
entity
(5,000
)
—
Proceeds from sale of investment
—
25,687
Purchases of patents and patent
licenses
—
(900
)
Cash flows (used in) / from investing
activities
(13,897
)
12,236
Cash flows from financing
activities:
Proceeds from credit facility
—
50,000
Repayments of credit facility
(110,000
)
(2,000
)
Proceeds from issuance of convertible
senior notes
500,000
—
Payments of debt issuance costs
(15,698
)
—
Payments of deferred consideration for
business acquisitions
(1,160
)
(819
)
Purchases of treasury stock
—
(5,149
)
Issuances of common stock from
equity-based plans
4,409
6,609
Cash flows from financing activities
377,551
48,641
Net increase in cash and cash
equivalents
446,848
127,547
Cash and cash equivalents at beginning
of the period
253,459
119,629
Cash and cash equivalents at end of the
period
$
700,307
$
247,176
ALARM.COM HOLDINGS,
INC.
Reconciliation of Non-GAAP
Measures
(in thousands)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
Adjusted EBITDA:
Net income
$
13,294
$
35,825
$
42,334
$
61,021
Adjustments:
Interest expense, interest income and
other income / (expense), net
4,003
(24,315
)
11,342
(23,575
)
Provision for / (benefit from) income
taxes
1,787
6,546
(2,864
)
5,471
Amortization and depreciation expense
7,467
6,878
22,329
20,023
Stock-based compensation expense
9,418
7,448
27,362
20,901
Secondary offering expense
—
—
—
543
Acquisition-related (benefit) /
expense
—
(304
)
29
2,044
Litigation expense
1,609
2,418
10,658
6,467
Total adjustments
24,284
(1,329
)
68,856
31,874
Adjusted EBITDA
$
37,578
$
34,496
$
111,190
$
92,895
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
Adjusted net income:
Net income, as reported
$
13,294
$
35,825
$
42,334
$
61,021
Provision for / (benefit from) income
taxes
1,787
6,546
(2,864
)
5,471
Income before income taxes
15,081
42,371
39,470
66,492
Adjustments:
Less: interest income and other income /
(expense), net
(193
)
(24,871
)
(376
)
(25,644
)
Amortization expense
4,329
4,084
12,987
12,209
Amortization of debt discount and debt
issuance costs
4,191
—
11,584
—
Stock-based compensation expense
9,418
7,448
27,362
20,901
Secondary offering expense
—
—
—
543
Acquisition-related (benefit) /
expense
—
(304
)
29
2,044
Litigation expense
1,609
2,418
10,658
6,467
Non-GAAP adjusted income before income
taxes
34,435
31,146
101,714
83,012
Income taxes 1
(7,231
)
(6,541
)
(21,360
)
(17,433
)
Non-GAAP adjusted net income
$
27,204
$
24,605
$
80,354
$
65,579
1 Income taxes are calculated using a rate
of 21.0% for each of the three and nine months ended September 30,
2021 and 2020. The 21.0% effective tax rate for each of the three
and nine months ended September 30, 2021 and 2020 exclude the
income tax effect on the non-GAAP adjustments and reflect the
estimated long-term corporate tax rate.
ALARM.COM HOLDINGS,
INC.
Reconciliation of Non-GAAP
Measures - continued
(in thousands, except share
and per share data)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
Adjusted net income attributable to
common stockholders:
Net income attributable to common
stockholders, as reported
$
13,538
$
36,084
$
43,113
$
61,886
Provision for / (benefit from) income
taxes
1,787
6,546
(2,864
)
5,471
Income attributable to common stockholders
before income taxes
15,325
42,630
40,249
67,357
Adjustments:
Less: interest income and other income /
(expense), net
(193
)
(24,871
)
(376
)
(25,644
)
Amortization expense
4,329
4,084
12,987
12,209
Amortization of debt discount and debt
issuance costs
4,191
—
11,584
—
Stock-based compensation expense
9,418
7,448
27,362
20,901
Secondary offering expense
—
—
—
543
Acquisition-related (benefit) /
expense
—
(304
)
29
2,044
Litigation expense
1,609
2,418
10,658
6,467
Non-GAAP adjusted income attributable to
common stockholders before income taxes
34,679
31,405
102,493
83,877
Income taxes 1
(7,283
)
(6,595
)
(21,524
)
(17,614
)
Non-GAAP adjusted net income
attributable to common stockholders
$
27,396
$
24,810
$
80,969
$
66,263
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
Adjusted net income attributable to
common stockholders per share:
Net income attributable to common
stockholders per share - basic, as reported
$
0.27
$
0.74
$
0.87
$
1.27
Provision for / (benefit from) income
taxes
0.04
0.13
(0.06
)
0.11
Income attributable to common stockholders
before income taxes
0.31
0.87
0.81
1.38
Adjustments:
Less: interest income and other income /
(expense), net
—
(0.51
)
—
(0.52
)
Amortization expense
0.09
0.09
0.26
0.25
Amortization of debt discount and debt
issuance costs
0.08
—
0.23
—
Stock-based compensation expense
0.19
0.15
0.55
0.43
Secondary offering expense
—
—
—
0.01
Acquisition-related (benefit) /
expense
—
(0.01
)
—
0.04
Litigation expense
0.03
0.05
0.21
0.13
Non-GAAP adjusted income before income
taxes
0.70
0.64
2.06
1.72
Income taxes 1
(0.15
)
(0.13
)
(0.43
)
(0.36
)
Non-GAAP adjusted net income
attributable to common stockholders per share - basic
$
0.55
$
0.51
$
1.63
$
1.36
Non-GAAP adjusted net income
attributable to common stockholders per share - diluted
$
0.53
$
0.49
$
1.56
$
1.31
Weighted average common shares
outstanding:
Basic, as reported
49,954,565
49,007,343
49,776,578
48,842,333
Diluted, as reported
51,836,239
50,979,679
51,879,061
50,673,752
1 Income taxes are calculated using a rate
of 21.0% for each of the three and nine months ended September 30,
2021 and 2020. The 21.0% effective tax rate for each of the three
and nine months ended September 30, 2021 and 2020 exclude the
income tax effect on the non-GAAP adjustments and reflect the
estimated long-term corporate tax rate.
ALARM.COM HOLDINGS, INC.
Reconciliation of Non-GAAP
Measures - continued
(in thousands)
(unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021
2020
2021
2020
Non-GAAP free cash flow:
Cash flows from operating activities
$
37,886
$
18,622
$
83,194
$
66,670
Additions to property and equipment
(1,558
)
(3,561
)
(8,939
)
(10,677
)
Non-GAAP free cash flow
$
36,328
$
15,061
$
74,255
$
55,993
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211104006269/en/
Investor Relations: David Trone Alarm.com
dtrone@alarm.com
Media Relations: Matthew Zartman Alarm.com
mzartman@alarm.com
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