Alarm.com Holdings, Inc. Q4 FY2024 earnings call

• Fourth quarter SaaS and license revenue was $165.7 million, up 11.7% year - over - year, and adjusted EBITDA was $46.4 million. - North American residential business had advantages in scale, quality of offerings and relationships with service provider partners, and released the pro - thermostat HQ for residential and rental markets. - Commercial, international business and EnergyHub collectively contributed 26% of total SaaS in 2024, with their SaaS revenue growing nearly 25% year - over - year. Commercial business had over $80 million in SaaS revenue in 2024, and OpenEye, its enterprise video business, had nearly $20 million in SaaS revenue in 2024. - International business expanded product offerings and service provider footprint in over 70 countries, with revenue from outside North America reaching 6% of consolidated total revenue in 2024. - Growth initiatives included EnergyHub, which was a $50+ million SaaS business, and began dynamic load shaping in 2024. - Steve Valenzuela decided to retire from Alarm.com, having made significant contributions during his tenure.

In the fourth quarter, SaaS and license revenue was $165.7 million, up 11.7% over the last year. For the full year 2024, SaaS and license revenue was $631.2 million, up 10.9% over 2023. North American residential business was the largest component of the diversified business. International business in 2024 contributed 6% of consolidated total revenue. Commercial business generated over $80 million in SaaS revenue in 2024. EnergyHub was a SaaS business over $50 million. Fourth - quarter hardware and other revenue was $76.6 million, compared to $77.9 million in the year - ago quarter. Fourth - quarter total revenue was $242.2 million, up 7.1% from Q4 2023. Full - year 2024 total revenue was $939.8 million, up 6.6% year - over - year.

• For the first quarter of 2025, expected SaaS and license revenue is $160.2 million to $160.4 million. - For the full year 2025, expected SaaS and license revenue is between $671.2 million to $671.8 million. - Expected total revenue for 2025 is $978.2 million to $980.8 million, including estimated hardware and other revenue of $307 million to $309 million. - Expected adjusted EBITDA for 2025 is $188 million to $192 million. - Non - GAAP adjusted net income for 2025 is projected to be $130 million to $131 million or $2.28 to $2.29 per diluted share. - Expected full - year 2025 stock - based compensation expense is $43 million to $45 million.

• Potential impact of tariffs on hardware business, although most hardware production has been moved to other regions, still need to pay attention to relevant dynamics.

Q: Saket Kalia asked about the drivers of the acceleration of SaaS and license revenue growth in the quarter and the headwinds in the 2025 SaaS growth outlook.

A: Steve Valenzuela said EnergyHub overperformed in the quarter, OpenEye performed well, international business revenue share increased, and in 2025, it was affected by ADT+ transformation, flat license revenue and stronger dollar.

Q: Saket Kalia asked about the potential impact of tariffs on the hardware business.

A: Steve Trundle said most hardware production has been moved to other regions, and it is less affected by tariff activities at present, but has taken measures to increase inventory.

Q: Adam Tindle asked about the growth expectations of the growth business and the strategic view.

A: Steve Valenzuela said the growth business in 2025 is expected to grow similarly to 2024, and the acquisition of CHeKT has a moderate contribution to SaaS revenue in 2025; Steve Trundle said the company develops around channel relationships, there are synergies among businesses, and EnergyHub has a long - term development runway.

Q: Adam Tindle asked about the key attributes of OpenEye's success and replication opportunities.

A: Steve Trundle said the key attribute is leadership quality, and the company is good at building SaaS businesses and will continue to find similar opportunities.

Q: Mason Marion asked about the NRR expectation in 2025 and the feedback of the AI deterrence product.

A: Steve Trundle said it is expected that NRR remains at the 95% level, and the AI deterrence product has market enthusiasm and has been used in some installations.

Q: Adam Hotchkiss asked about the profit margin situation in 2025.

A: Steve Trundle said R&D expenses grow roughly in line with revenue, G&A cost structure has operating leverage, and it is expected that the profit margin in 2025 is around 19%; there is no change in the 200bps headwind of ADT as expected.

Q: Stephen Sheldon asked about the international business expansion and ARPU expansion opportunity of the core residential business.

A: Steve Trundle said it will continue to expand international service provider partners and build an international business similar to the North American long tail in the long run; Steve Valenzuela said new residential users have higher service usage, promoting ARPU growth.

Q: Darren Aftahi asked about the integration situation of EBS and the relationship between SaaS growth and acquisition.

A: Steve Valenzuela said EBS will make meaningful contributions in the middle of 2025, and the SaaS growth in 2025 is partially from the acquisition of CHeKT, but not completely driven by it.