Alarm.com reports total revenue for Q2 increased 16.4 per cent to $US121.7 million and said the company expects annual revenue in the range of $460.2 million to $465.7 million. The company’s growth underpins the veracity of its cloud-based business model.
SaaS and license revenue increased 16 per cent to $82.3 million, compared to $71 million. SaaS and license revenue include Connect software license revenue of $11 million, compared to $10.2 million. The company said its SaaS and license revenue renewal rate was 94 per cent.
Hardware and other revenue in the second quarter was $39.3 million, up 17.3 per cent. The increase in hardware revenue was primarily due to an increase in sales of video cameras, as the company continues to see increasing adoption of video by both new and existing subscribers.
“For the first six months of the year, the number of subscribers electing a video service plan is up about 40 per cent from the first half of 2018,” Alarm.com President and CEO Steve Trundle said.
“Adoption of our video analytics service, which we initially released at the end of last year, continues to grow as well. The improved user experience and quality of service enabled by video analytics is driving increased overall demand for video.”
During the second quarter the company expanded its integration with leading security panel makers to enable authorized dealers to deliver Alarm.com’s services to a broader range of residential and commercial customers. The new panels include flagship products with touch-screen capabilities from Nortek, DSC, Interlogix and Qolsys.
In the U.S., all of the security panels in Alarm.com’s ecosystem now offer LTE dual-path communications gateways. Alarm.com also added Z-Wave Plus devices from Cooper Eaton and Leviton to expand its selection of automation and lighting hardware with brands recognized in the home builder industry.
“We also worked with our manufacturer partners to increase the number of partitions and zones supported on several control panels. This upgrade allows the control panel to better meet the needs of small and medium-sized business owners and light commercial applications,” Trundle said. “An important element of our product strategy for security control panels has been cellular communications and managing the sunset of the 3G networks that is planned for 2022.”
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