Alarm.com Reports First Quarter 2025 Results

Alarm.com Holdings, Inc., a leading platform for intelligently connected properties, has released its financial results for the first quarter of 2025, ending March 31, 2025. The company has shown significant growth in several key financial metrics compared to the same period in 2024.

Financial Highlights

For the first quarter of 2025, Alarm.com reported a 9.0% increase in SaaS and license revenue, reaching $163.8 million compared to $150.3 million in the first quarter of 2024. Total revenue for the quarter increased by 7.0% to $238.8 million, up from $223.3 million in the previous year. GAAP net income saw an 18.4% rise to $27.7 million, compared to $23.4 million in the first quarter of 2024. Additionally, non-GAAP adjusted EBITDA increased by 17.5% to $43.5 million, up from $37.0 million in the same period last year.

Business and Operational Highlights

Alarm.com has expanded its video product line-up with the introduction of the ADC-V516 indoor Wi-Fi camera, designed for both residential and commercial markets. This new product includes AI-powered analytics and deterrence capabilities. The company also launched new video monitoring and deterrence capabilities, including the AI Deterrence (AID) feature, which can identify and automatically engage potential intruders with a neural synthesized voice.

In addition, Alarm.com's subsidiary, EnergyHub, announced a partnership with General Motors (GM) to integrate GM's electric vehicles and home energy storage solutions into its platform. This partnership will enable eligible Chevrolet, GMC, and Cadillac EV owners to participate in EnergyHub-managed utility programs.

Strategic Initiatives and Corporate Developments

Alarm.com reported a total cash and cash equivalents of $1.19 billion as of March 31, 2025, compared to $1.22 billion as of December 31, 2024. The company also highlighted a decrease in cash flows from operating activities, which amounted to $24.1 million for the first quarter of 2025, down from $49.9 million in the same period of 2024. Non-GAAP free cash flow was $17.9 million, compared to $46.8 million in the first quarter of 2024.

Management's Perspective

Alarm.com's management expressed satisfaction with the company's performance in the first quarter of 2025. They highlighted the growth in SaaS and license revenue and the successful launch of new products and capabilities. The management also emphasized the strategic importance of the partnership with GM, which is expected to enhance EnergyHub's platform and provide new opportunities for growth.

Future Outlook

Looking ahead, Alarm.com provided its financial outlook for the second quarter of 2025 and the full year of 2025. For the second quarter, SaaS and license revenue is expected to be in the range of $167.0 million to $167.2 million. For the full year, SaaS and license revenue is projected to be between $675.8 million and $676.2 million, with total revenue expected to range from $975.8 million to $991.2 million. Non-GAAP adjusted EBITDA for the full year is anticipated to be between $190.0 million and $193.0 million.

SEC Filing: Alarm.com Holdings, Inc. [ ALRM ] - 8-K - May. 08, 2025