ALARM.COM revenue grew by more than 25 per cent in 2016 compared with the same period in 2015, driven by both software and hardware sales.
Higher operating costs hurt GAAP profitability, but adjusted earnings grew faster than revenue. The company reported 19 cents earnings per share (EPS) for the quarter, beating the consensus estimate of 11 cents by 8 cents. The company earned $US67.8 million during the quarter, compared to analysts’ expectations of $59.73 million.
SaaS and license revenue for the third quarter was $44.6 million, an increase of 23 per cent year-over-year. Total revenue amounted to $67.8 million for the quarter, a 26 per cent increase year-over-year. Net income was $2.6 million and non-GAAP adjusted net income was $9.1 million for the third quarter. Adjusted EBITDA for the third quarter was $11.7 million.
Alarm.com President & CEO Steve Trundle said security remains the primary buying criteria for consumers interested in smart home capabilities. Many consumers, he said, prefer to hire security professionals to design, install, service and monitor their systems.
“Our service providers look to Alarm.com for our market-leading technology which begins with interactive home security but also includes video, automation and energy management,” Trundle said. “And our team continues to work hard to deliver innovation and new capabilities that are ahead of the curve in these emerging areas.” ♦
