Alarm.com Holdings, Inc. Q3 FY2025 earnings call

Steve Trundle's Remarks - Held annual Partner Summit in D.C. with ~200 key service provider partners, discussed new and upcoming products. - Growth initiatives (commercial, international, EnergyHub) driving SaaS revenue growth. - Highlighted EnergyHub's progress in enabling higher-value services for utility clients. ### Dan Kerzner's Remarks - Walked through new product releases, e.g., 730 spotlight camera with AI Deterrence. - Expanded commercial video platform to work with select third-party cameras. - Upgraded generative AI chatbot in technician app for better support. ### Kevin Bradley's Remarks - Reviewed financial results, noting SaaS and license revenue growth, gross profit increase. - Discussed guidance for Q4 2025, full-year 2025, and preliminary 2026 figures, including raised SaaS and license revenue outlook for 2025.

SaaS and license revenue in the third quarter grew to $175.4 million. Adjusted EBITDA was $59.2 million. Growth initiatives including commercial, international, and EnergyHub collectively drove SaaS revenue growth in the 20% to 25% year-over-year range and accounted for 30% of total SaaS revenue this quarter. EnergyHub's platform helps utilities match electricity demand and supply in real time, with its load flexibility solutions being faster and more cost-effective than building new infrastructure.

Q4 2025 - Expect SaaS and license revenue between $176 million and $176.2 million. ### Full-Year 2025 - Raised SaaS and license revenue outlook to between $685.2 million and $685.4 million. - Raised non-GAAP adjusted EBITDA outlook to $199 million. - Projected total revenue slightly above $1 billion. ### 2026 - Preliminary early look estimate of SaaS and license revenue between $722 million and $724 million. - Total revenue range $1.037 billion to $1.044 billion. - Non-GAAP adjusted EBITDA projected in range of $210 million to $212 million.

- Market uncertainties and risks associated with forward-looking statements. - Potential impact of hardware margin headwinds due to inventory carrying reciprocal tariff costs and shipping methods. - Currency fluctuations affecting financial results.

Q: Adam Tindle with Raymond James asked about the early framework for 2026 and similarities/differences to 2025.

A: Kevin Bradley responded on growth rate profiles and pulling forward growth headwinds.

Q: Billy Fitzsimmons on for Samad Samana asked about EnergyHub's customer conversations and pull forward.

A: Stephen Trundle discussed macro trends and market movement, Kevin Bradley commented on pull forward being in the hundreds of thousands.

Q: Matthew Filek on for Stephen Sheldon asked about EnergyHub's growth durability and core residential pricing.

A: Stephen Trundle talked about durable growth in EnergyHub and pricing in core residential.

Q: Eleanor Smith with J.P. Morgan asked about SaaS mix supporting gross profit margins and M&A strategy.

A: Stephen Trundle discussed mix impact and M&A as active but deliberate.

Q: Alyssa Lee with Barclays asked about international opportunity and renewal rates.

A: Stephen Trundle talked about international growth and renewal rates influenced by housing market.

Q: Jack Vander Aarde with Maxim Group asked about autonomous robotics and cash use.

A: Stephen Trundle and Kevin Bradley discussed relationship to EnergyHub and cash use for corp dev and buybacks