Alarm.com (ALRM) Q2 2024 earnings summary

Executive summary

• SaaS and license revenue grew 11% year-over-year to $155.9 million in Q2 2024, with total revenue up 4.4% to $233.8 million.

• GAAP net income attributable to common stockholders rose 112.1% to $33.5 million, or $0.62 per diluted share.

• Non-GAAP adjusted EBITDA increased 17.8% to $42.8 million.

• Organic growth was driven in commercial, international, and EnergyHub businesses, with residential churn below historical averages.

• SaaS and license revenue renewal rate remained strong at 94% for the trailing 12 months.

Financial highlights

• SaaS and license revenue: $155.9 million in Q2 2024 (+11% YoY); total revenue: $233.8 million (+4.4% YoY).

• Adjusted EBITDA was $42.8 million, up 17.8% from Q2 2023.

• GAAP net income was $33.5 million, more than doubling from $15.8 million in Q2 2023.

• Non-GAAP adjusted net income was $32 million, or $0.58 per diluted share.

• Cash and cash equivalents reached $1.1 billion as of June 30, 2024, up from $697 million at year-end 2023.

Outlook and guidance

• Q3 2024 SaaS and license revenue expected at $157.3–$157.5 million, including a $1.25 million reduction due to the CrowdStrike outage.

• Full-year 2024 SaaS and license revenue guidance raised to $626.8–$627.2 million.

• Total 2024 revenue projected at $920.8–$931.2 million, with adjusted EBITDA of $165–$167 million.

• Non-GAAP net income for 2024 projected at $119.5–$120.5 million, or $2.06–$2.07 per diluted share.

• Management expects existing cash and future cash flows to meet operating needs for at least the next 12 months.