-- First quarter SaaS and license revenue
increased to $135.4 million, compared to $123.2 million for
the first quarter of 2022--
-- First quarter GAAP net income
attributable to common stockholders increased to $14.4 million,
compared to $9.1 million for the first quarter of 2022 --
-- First quarter non-GAAP adjusted EBITDA
increased to $30.6 million, compared to $29.9 million for the first
quarter of 2022 --
Alarm.com Holdings, Inc. (Nasdaq: ALRM), the leading platform
for the intelligently connected property, today reported financial
results for its first quarter ended March 31, 2023. Alarm.com also
provided its financial outlook for SaaS and license revenue for the
second quarter of 2023 and increased its revenue, non-GAAP adjusted
EBITDA and non-GAAP adjusted net income attributable to common
stockholders guidance for the full year of 2023.
“We’re pleased to report solid first quarter results and
continued momentum across the business to start the new year,” said
Steve Trundle, CEO of Alarm.com. “Many of the markets we serve
performed well and aggregate performance was better than expected.
As we continue to grow our diversified business, we also executed
on a set of cost reduction initiatives to enhance company
efficiency.”
First Quarter 2023 Financial Results as Compared to First Quarter
2022
- SaaS and license revenue increased 9.9% to $135.4 million,
compared to $123.2 million.
- Excluding Vivint license revenue from the first quarter of
2022, non-GAAP adjusted SaaS & license revenue growth rate(*)
was 14.9%.
- Total revenue increased 2.1% to $209.7 million, compared to
$205.4 million.
- GAAP net income attributable to common stockholders increased
to $14.4 million, or $0.28 per diluted share, compared to $9.1
million, or $0.18 per diluted share, primarily due to a $5.0
million increase in interest income.
- Non-GAAP adjusted EBITDA(*) increased to $30.6 million,
compared to $29.9 million.
- Non-GAAP adjusted net income attributable to common
stockholders(*) increased to $22.0 million, or $0.41 per diluted
share, compared to $21.3 million or $0.39 per diluted share.
Balance Sheet and Cash
Flow
- Total cash and cash equivalents decreased to $606.4 million as
of March 31, 2023, compared to $622.2 million as of December 31,
2022, primarily due to cash payments made for federal estimated
taxes and an acquisition as well as employee bonuses paid during
the three months ended March 31, 2023.
- For the quarter ended March 31, 2023, cash flows used in
operations was $3.5 million, compared to $14.0 million for the
quarter ended March 31, 2022. For the quarter ended March 31, 2023,
non-GAAP free cash flow(*) was $(5.9) million, compared to $(16.1)
million for the quarter ended March 31, 2022.
(*) Reconciliations of the non-GAAP measures are set forth at
the end of this press release.
Recent Business
Highlights
- OpenEye Launches Platform Updates: A new software
solution from OpenEye integrates environmental sensors to trigger
alerts and video based on events of interest, including new Vaping
Alerts for school settings. OpenEye also launched Sales Connect,
which combines point-of-sale (POS) system data with video.
Subscribers can create custom alerts and conduct forensic searches
through OpenEye’s intuitive interface based on detailed transaction
data, including product SKUs, User ID and transaction type. Sales
Connect is designed to enable OpenEye’s integrator partners to
deliver a more robust solution for significant verticals such as
retail, grocery and quick-serve restaurants.
- Expanding International Product Offering: Alarm.com
recently acquired EBS, a leader in universal smart communicator
devices particularly for the international markets. When fully
integrated with the Alarm.com platform, EBS communicators are
expected to enable Alarm.com’s services to work with a wide range
of legacy security control panels commonly deployed in
international markets. International service provider partners will
be able to more easily bring Alarm.com capabilities to their
existing customer bases with already-installed equipment. EBS was
founded over 30 years ago and has built a strong team,
organizational culture and product portfolio. The company has two
locations in Poland: a headquarters in Warsaw, and an engineering
and production facility in Elk.
- Shooter Detection Systems (SDS) Announces Integration with
Alarm.com for Business: Service provider partners will be able
to offer SDS indoor gunshot detection as a SaaS solution for
commercial properties. SDS dual-factor sensors instantly detect
indoor gunshots with high accuracy. With SDS integrated with
Alarm.com, subscribers can monitor and track the location of
gunshots, quickly view videos of the time and place that gunshots
occurred and share critical situational awareness information with
first responders, all with no onsite software installation
required.
Financial Outlook
Alarm.com is providing its outlook for SaaS and license revenue
for the second quarter of 2023 and increasing its revenue, non-GAAP
adjusted EBITDA and non-GAAP adjusted net income attributable to
common stockholders guidance for the full year of 2023 based upon
current management expectations. This guidance assumes no
contribution from the Vivint license agreement.
For the second quarter of 2023:
- SaaS and license revenue is expected to be in the range of
$137.2 million to $137.4 million.
For the full year of 2023:
- SaaS and license revenue is expected to be in the range of
$555.9 million to $556.5 million.
- Total revenue is expected to be in the range of $855.9 million
to $881.5 million, which includes anticipated hardware and other
revenue in the range of $300.0 million to $325.0 million.
- Non-GAAP adjusted EBITDA is expected to be in the range of
$120.0 million to $125.0 million.
- Non-GAAP adjusted net income attributable to common
stockholders is expected to be in the range of $84.6 million to
$87.5 million, based on an estimated tax rate of 21.0%.
- Based on an expected 54.7 million weighted average diluted
shares outstanding, non-GAAP adjusted net income attributable to
common stockholders is expected to be $1.55 to $1.60 per diluted
share.
The 2023 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 first
quarter 2023 financial results and its outlook for the second
quarter and full year of 2023. A live audio webcast is scheduled to
begin at 4:30 p.m. ET on May 10, 2023. To participate on the live
call, analysts and investors should pre-register to obtain a
dial-in number and individual passcode by visiting:
https://register.vevent.com/register/BId5c1e9da6f7f442ca1565ba68857daa2.
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. The information contained on
any referenced website is not incorporated herein.
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 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 non-GAAP 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, non-GAAP free
cash flow, non-GAAP adjusted SaaS and license revenue and non-GAAP
adjusted SaaS and license revenue growth rate. 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 non-GAAP 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 most
directly 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 non-GAAP adjusted EBITDA and non-GAAP
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:
Interest expense: We record interest expense primarily related
to the January 2021 issuance of $500.0 million aggregate principal
amount of 0% convertible senior notes due January 15, 2026, or the
2026 Notes. We exclude interest expense in calculating our non-GAAP
adjusted EBITDA. 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
issuance costs related to the 2026 Notes as discussed below.
Interest income and certain activity within other (expense) /
income, net: We exclude interest income as well as certain activity
within other (expense) / income, net including gains, losses or
impairments on investments and other assets as well as losses on
the early extinguishment of the debt, when applicable, from our
non-GAAP financial measures because we do not consider it part of
our ongoing results of operations.
Benefit from income taxes: We exclude the impact related to our
benefit from income taxes from our non-GAAP adjusted EBITDA
calculation. We do not consider this tax adjustment to be part of
our ongoing results of operations.
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.
Depreciation expense: We record depreciation primarily for
investments in property and equipment. We exclude depreciation in
calculating non-GAAP 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 of debt issuance costs: We record amortization of
debt issuance costs related to the 2026 Notes as interest expense.
We exclude amortization of 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.
Stock-based compensation expense: We exclude stock-based
compensation expense, which relates to restricted stock units 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.
Acquisition-related 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.
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.
Vivint license revenue: We exclude Vivint license revenue from
our non-GAAP adjusted SaaS and license revenue and non-GAAP
adjusted SaaS and license revenue growth rate because we believe
that this exclusion will provide more meaningful information about
our financial performance on a comparable basis, given that we are
no longer recording Vivint license revenue effective beginning in
the fourth quarter of 2022. We filed a demand for arbitration on
October 27, 2022 following Vivint's notification to us indicating
that Vivint will stop paying us license fees under the Patent and
Cross License Agreement.
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, acquisitions and
investments, anticipated impact of Vivint’s refusal to pay license
fees and related legal actions, and the Company’s guidance for the
second quarter and full year of 2023 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:
impact of the global economic uncertainty and financial market
conditions caused by significant worldwide events, including public
health crises, such as the COVID-19 pandemic, geopolitical
upheaval, such as Russia’s incursion into Ukraine, supply chain
disruptions, interest rates and inflation (collectively,
Macroeconomic Conditions); impact of Macroeconomic Conditions and
their economic effects on demand for the Company's products; impact
of Vivint's refusal to pay license fees and related legal actions;
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 potential loss of any
key supplier or the inability of a key supplier to deliver their
products to us on time or at the contracted price; 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; and other
risks and uncertainties discussed in the “Risk Factors” section of
the Company’s Annual Report on Form 10-K filed with the Securities
and Exchange Commission on February 24, 2023 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 March 31, 2023. 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
March 31,
2023
2022
Revenue:
SaaS and license revenue
$
135,394
$
123,225
Hardware and other revenue
74,322
82,212
Total revenue
209,716
205,437
Cost of revenue(1):
Cost of SaaS and license revenue
19,583
16,894
Cost of hardware and other revenue
56,589
73,193
Total cost of revenue
76,172
90,087
Operating expenses:
Sales and marketing
26,645
23,192
General and administrative
28,499
23,994
Research and development
61,908
51,490
Amortization and depreciation
7,673
7,761
Total operating expenses
124,725
106,437
Operating income
8,819
8,913
Interest expense
(868
)
(784
)
Interest income
5,182
143
Other (expense) / income, net
(148
)
13
Income before income taxes
12,985
8,285
Benefit from income taxes
(1,222
)
(618
)
Net income
14,207
8,903
Net loss attributable to redeemable
noncontrolling interests
209
176
Net income attributable to common
stockholders
$
14,416
$
9,079
Per share information attributable to
common stockholders:
Net income per share:
Basic
$
0.29
$
0.18
Diluted
$
0.28
$
0.18
Weighted average common shares
outstanding:
Basic
49,584,890
50,206,179
Diluted
54,296,321
55,170,781
______________________________
(1) Exclusive of amortization and
depreciation shown in operating expenses below.
Stock-based compensation expense
included in operating expenses:
Three Months Ended
March 31,
2023
2022
Sales and marketing
$
1,032
$
1,058
General and administrative
3,145
3,235
Research and development
8,509
7,817
Total stock-based compensation expense
$
12,686
$
12,110
ALARM.COM HOLDINGS,
INC.
Consolidated Balance
Sheets
(in thousands, except share
and per share data)
(unaudited)
March 31, 2023
December 31,
2022
Assets
Current assets:
Cash and cash equivalents
$
606,428
$
622,165
Accounts receivable, net of allowance for
credit losses of $3,199 and $2,835, and net of allowance for
product returns of $1,869 and $1,551 as of March 31, 2023 and
December 31, 2022, respectively
125,885
124,283
Inventory
117,874
115,584
Other current assets, net of allowance for
credit losses of $0 as of March 31, 2023 and December 31, 2022
30,676
29,056
Total current assets
880,863
891,088
Property and equipment, net
57,100
57,172
Intangible assets, net
85,645
82,458
Goodwill
155,287
148,183
Deferred tax assets
111,232
84,185
Operating lease right-of-use assets
30,491
28,933
Other assets, net of allowance for credit
losses of $2 as of March 31, 2023 and December 31, 2022
36,912
37,356
Total assets
$
1,357,530
$
1,329,375
Liabilities, redeemable noncontrolling
interests and stockholders’ equity
Current liabilities:
Accounts payable, accrued expenses and
other current liabilities
$
120,634
$
119,657
Accrued compensation
19,577
25,582
Deferred revenue
8,776
7,540
Operating lease liabilities
12,243
12,157
Total current liabilities
161,230
164,936
Deferred revenue
11,455
10,792
Convertible senior notes, net and other
long-term debt
492,000
490,370
Operating lease liabilities
28,279
27,380
Other liabilities
13,345
13,050
Total liabilities
706,309
706,528
Redeemable noncontrolling interests
25,840
23,988
Stockholders’ equity
Preferred stock, $0.001 par value,
10,000,000 shares authorized; no shares issued and outstanding as
of March 31, 2023 and December 31, 2022
—
—
Common stock, $0.01 par value, 300,000,000
shares authorized; 51,255,389 and 50,985,454 shares issued; and
49,722,644 and 49,452,709 shares outstanding as of March 31, 2023
and December 31, 2022, respectively
513
510
Additional paid-in capital
509,132
497,199
Treasury stock, at cost; 1,532,745 shares
as of March 31, 2023 and December 31, 2022
(83,993
)
(83,993
)
Accumulated other comprehensive income
170
—
Retained earnings
199,559
185,143
Total stockholders’ equity
625,381
598,859
Total liabilities, redeemable
noncontrolling interests and stockholders’ equity
$
1,357,530
$
1,329,375
ALARM.COM HOLDINGS,
INC.
Consolidated Statements of
Cash Flows
(in thousands)
(unaudited)
Three Months Ended
March 31,
Cash flows used in operating
activities:
2023
2022
Net income
$
14,207
$
8,903
Adjustments to reconcile net income to net
cash from operating activities:
Provision for credit losses on accounts
receivable
540
54
Reserve for product returns
1,151
798
Recovery of credit losses on notes
receivable
—
(78
)
Amortization on patents and tooling
316
353
Amortization and depreciation
7,673
7,761
Amortization of debt issuance costs
784
780
Amortization of operating leases
2,750
2,473
Deferred income taxes
(26,895
)
(10,650
)
Change in fair value of contingent
liability
13
—
Stock-based compensation
12,686
12,110
Changes in operating assets and
liabilities (net of business acquisitions):
Accounts receivable
(1,843
)
1,629
Inventory
377
(11,161
)
Other current and non-current assets
(689
)
(3,225
)
Accounts payable, accrued expenses and
other current liabilities
(9,617
)
(21,450
)
Deferred revenue
1,899
782
Operating lease liabilities
(3,362
)
(2,975
)
Other liabilities
(3,511
)
(65
)
Cash flows used in operating
activities
(3,521
)
(13,961
)
Cash flows used in investing
activities:
Business acquisition, net of cash
acquired
(9,696
)
—
Additions to property and equipment
(2,398
)
(2,171
)
Issuances of notes receivable
(300
)
—
Receipt of payments on notes
receivable
13
16
Capitalized software development costs
(362
)
—
Purchase of investment in unconsolidated
entity
(200
)
—
Cash flows used in investing
activities
(12,943
)
(2,155
)
Cash flows from / (used in) financing
activities:
Purchases of treasury stock
—
(23,331
)
Payments of acquired debt
(469
)
—
Issuances of common stock from
equity-based plans
1,311
1,080
Cash flows from / (used in) financing
activities
842
(22,251
)
Effect of exchange rate changes on cash,
cash equivalents and restricted cash
13
—
Net decrease in cash, cash equivalents
and restricted cash
(15,609
)
(38,367
)
Cash, cash equivalents and restricted
cash at beginning of the period
622,879
710,621
Cash, cash equivalents and restricted
cash at end of the period
$
607,270
$
672,254
Reconciliation of cash, cash
equivalents and restricted cash:
Cash and cash equivalents
$
606,428
$
671,753
Restricted cash included in other current
assets and other assets
842
501
Total cash, cash equivalents and
restricted cash
$
607,270
$
672,254
ALARM.COM HOLDINGS,
INC.
Reconciliation of Non-GAAP
Measures
(in thousands)
(unaudited)
Three Months Ended
March 31,
2023
2022
Non-GAAP adjusted EBITDA:
Net income
$
14,207
$
8,903
Adjustments:
Interest expense, interest income and
certain activity within other (expense) / income, net
(4,314
)
628
Benefit from income taxes
(1,222
)
(618
)
Amortization and depreciation expense
7,673
7,761
Stock-based compensation expense
12,686
12,110
Acquisition-related expense
779
—
Litigation expense
766
1,135
Total adjustments
16,368
21,016
Non-GAAP adjusted EBITDA
$
30,575
$
29,919
Three Months Ended
March 31,
2023
2022
Non-GAAP adjusted net income:
Net income, as reported
$
14,207
$
8,903
Benefit from income taxes
(1,222
)
(618
)
Income before income taxes
12,985
8,285
Adjustments:
Less: interest income and certain activity
within other (expense) / income, net
(5,182
)
(156
)
Amortization expense
4,838
4,642
Amortization of debt issuance costs
784
780
Stock-based compensation expense
12,686
12,110
Acquisition-related expense
779
—
Litigation expense
766
1,135
Non-GAAP adjusted income before income
taxes
27,656
26,796
Income taxes 1
(5,808
)
(5,627
)
Non-GAAP adjusted net income
$
21,848
$
21,169
1 Income taxes are calculated using a rate
of 21.0% for each of the three months ended March 31, 2023 and
2022. The 21.0% effective tax rate for each of the three months
ended March 31, 2023 and 2022 excludes the income tax effect on the
non-GAAP adjustments and reflects 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
March 31,
2023
2022
Non-GAAP adjusted net income
attributable to common stockholders:
Net income attributable to common
stockholders, as reported
$
14,416
$
9,079
Benefit from income taxes
(1,222
)
(618
)
Income attributable to common stockholders
before income taxes
13,194
8,461
Adjustments:
Less: interest income and certain activity
within other (expense) / income, net
(5,182
)
(156
)
Amortization expense
4,838
4,642
Amortization of debt issuance costs
784
780
Stock-based compensation expense
12,686
12,110
Acquisition-related expense
779
—
Litigation expense
766
1,135
Non-GAAP adjusted income attributable to
common stockholders before income taxes
27,865
26,972
Income taxes 1
(5,852
)
(5,664
)
Non-GAAP adjusted net income
attributable to common stockholders
$
22,013
$
21,308
Three Months Ended
March 31,
2023
2022
Non-GAAP adjusted net income
attributable to common stockholders per share:
Net income attributable to common
stockholders per share - basic, as reported
$
0.29
$
0.18
Benefit from income taxes
(0.02
)
(0.01
)
Income attributable to common stockholders
before income taxes
0.27
0.17
Adjustments:
Less: interest income and certain activity
within other (expense) / income, net
(0.10
)
—
Amortization expense
0.10
0.09
Amortization of debt issuance costs
0.01
0.02
Stock-based compensation expense
0.26
0.23
Acquisition-related expense
0.01
—
Litigation expense
0.01
0.02
Non-GAAP adjusted income attributable to
common stockholders before income taxes
0.56
0.53
Income taxes 1
(0.12
)
(0.11
)
Non-GAAP adjusted net income
attributable to common stockholders per share - basic
$
0.44
$
0.42
Non-GAAP adjusted net income
attributable to common stockholders per share - diluted
$
0.41
$
0.39
Weighted average common shares
outstanding:
Basic, as reported
49,584,890
50,206,179
Diluted, as reported
54,296,321
55,170,781
1 Income taxes are calculated using a rate
of 21.0% for each of the three months ended March 31, 2023 and
2022. The 21.0% effective tax rate for each of the three months
ended March 31, 2023 and 2022 excludes the income tax effect on the
non-GAAP adjustments and reflects the estimated long-term corporate
tax rate.
ALARM.COM HOLDINGS,
INC.
Reconciliation of Non-GAAP
Measures - continued
(in thousands)
(unaudited)
Three Months Ended
March 31,
2023
2022
Non-GAAP free cash flow:
Cash flows used in operating
activities
$
(3,521
)
$
(13,961
)
Additions to property and equipment
(2,398
)
(2,171
)
Non-GAAP free cash flow
$
(5,919
)
$
(16,132
)
Three Months Ended
March 31,
2023
2022
Non-GAAP adjusted SaaS and license
revenue:
SaaS and license revenue
$
135,394
$
123,225
License revenue from Vivint
—
(5,360
)
Non-GAAP adjusted SaaS and license
revenue
$
135,394
$
117,865
First Quarter
2023 as Compared to First Quarter 2022
Three Months Ended
March 31, 2023
SaaS and license revenue growth rate
9.9%
Adjustment to SaaS and license revenue
growth rate for Vivint license revenue
5.0
Non-GAAP adjusted SaaS and license revenue
growth rate
14.9%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230510005723/en/
Investor & Media Relations: Matthew Zartman Alarm.com
ir@alarm.com
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