Alarm.com sells ‘advantage’ in tough residential market

TYSONS, Va. — CEO Steve Trundle attributes Alarm.com’s ability to buck trends in residential security to product innovation, including AI-based video analytics capabilities; expanded opportunities in the remote video monitoring (RVM) market; and various growth initiatives. 

“In 2024, our North American residential business continued to be the largest component of our diversified business,” Trundle told investors during a recent conference call to discuss the company’s fourth quarter and full year 2024 financial results. “Our advantage in this area comes from our scale, the quality of our offerings and the outstanding relationships we have built over the years with our provider partners.” 

During the Q&A portion of the call, Trundle discussed Alarm.com’s strong base of existing subscribers in residential as a starting point, and the influx of new subscribers joining with a richer set of services. 

Trundle remains bullish on residential, in large part due to Alarm.com’s longevity and tenacity. 

“We've been focused on this market with a sustained commitment of resources longer than anyone else,” he added. “While the market remains competitive, our service providers generally have little patience for less complete offerings. Consumer demand for professionally installed and serviced smart home security solutions remain solid.” 

Elsewhere in 2024, Alarm.com continued to scale growth initiatives in its commercial, international and EnergyHub businesses. SaaS revenue grew nearly 25% year over year and, collectively, these businesses accounted for 26% of that revenue, Trundle said.  

Alarm.com also highlighted the performance of EnergyHub’s energy management platform and the company’s expanded RVM offering with its recent acquisition of CHeKT. The addition of CHeKT offers emerging opportunities to provide RVM solutions in commercial and residential markets, the company says. 

Full year 2024 financial results as compared to full year 2023 at a glance: 

• SaaS and license revenue increased 10.9% to $631.2 million, compared to $569.2 million.  

• Total revenue increased 6.6% to $939.8 million, compared to $881.7 million. 

• GAAP net income increased to $122.5 million, compared to $80.3 million. GAAP net income attributable to common stockholders increased to $124.1 million, or $2.29 per diluted share, compared to $81.0 million, or $1.53 per diluted share. 

• Non-GAAP adjusted EBITDA increased to $176.2 million, compared to $154.0 million. 

• Non-GAAP adjusted net income attributable to common stockholders increased to $127.1 million, or $2.28 per diluted share, compared to $113.2 million, or $2.07 per diluted share.