Alarm.com's first quarter earnings up 26 percent

Announcement follows company’s filing of patent infringement lawsuit against SecureNet and Protect America
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Monday, May 15, 2017

TYSONS, Va.—Alarm.com reported this past week a 26 percent year-over-year increase in total revenue for the first quarter, which ended March 31, 2017. This announcement comes on the heels of the company filing a patent infringement lawsuit against SecureNet Technologies and Protect America late last month in the court of Virginia.

"We're off to a solid start in 2017 with continued growth in SaaS and license revenue and increased profitability," Steve Trundle, president and CEO of Alarm.com, said in the announcement.  "Our service provider partners continue to lead the security industry's transformation from traditional service to higher value interactive solutions, and we announced new product initiatives to help them deliver a best-in-class experience to their customers."

In addition to total revenue, its software as a service (SaaS) and license revenue of $50.2 million for the first quarter represented a 26 percent year-over-year increase. For the second quarter, SaaS and license revenue is expected to be in the range of $57.8 million to $58 million, and for the full year is now expected to be in the range of $231.7 million to $232.7 million, according the press release.

Total revenue for the year is now expected to be in the range of $322.7 million to $325.7 million, which includes anticipated hardware and other revenue for the year in the range of $91 million to $93 million, the release noted.

“After closing the [Connect and Piper Business Units] acquisition on March 8, 2017, Alarm.com has begun to integrate operations and personnel with a focus on consistent service for existing customers and subscribers,” according to the company.

In addition to the acquisition, the company pointed to several other business highlights, including its expanding ecosystem of connected devices, an updated mobile app for service provider partners and an enhanced mobile experience for subscribers.

The earnings’ report follows the company’s filing of a patent infringement lawsuit against SecureNet Technologies and Protect America in late April. There are seven patents in question, which “embody key innovations within the interactive security field,” according to the filing. “Alarm.com and SecureNet have directly competed for one or more customer (service provider) accounts. On information and belief, during the process of this direct competition, SecureNet learned of, or willfully blinded itself to the existence of, the ’090, ’385, ’494, ’202, ’591, and ’276 patents.”

When reached for comment, Protect America emailed the following statement: “We are aware of this development and are conducting a detailed investigation. Protect America takes seriously any allegations of patent infringement and will respond accordingly.”

Alarm.com, which declined to comment any further on the case, has asked the court to stop both SecureNet and Protect America from selling products that infringe on the aforementioned patents and is also seeking monetary damages including legal fees.