Alarm.com (Nasdaq: ALRM) reported fourth-quarter earnings adjusted for non-recurring items of 43 cents per share, beating the Zacks Consensus Estimate of 33 center per share. The results compare to earnings per share (EPS) of 29 cents the prior year.
The company’s latest quarterly report represents an earnings surprise of 30.3%. For the previous quarter the company was projected to post earnings of 32 cents per share but instead produced earnings of 37 cents, delivering a surprise of 15.63%, according to Zacks.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Fourth-quarter SaaS and license revenue grew 15.7% from the same quarter last year to $90.1 million. This includes Connect software license revenue of approximately $10.6 million, down from $10.7 million in the year-ago quarter.
SaaS and license revenue for the Alarm.com segment grew 14.6% in the fourth quarter, while the company’s “other” segment grew 34% year-over-year, driven by strong results at subsidiaries including EnergyHub and PointCentral.
Full-year SaaS and license revenue in 2019 increased 15.9% over the prior year to $337.4 million. The Alarm.com segment grew SaaS revenue by 14.2% year-over-year; the “other” segment grew 51.6% in 2019.
The company had a SaaS and license renewal rate of 94% in the fourth quarter. Hardware and “other” revenue in the fourth quarter was $50.4 million, an increase of 50.2% over Q4 2018.
Video Camera Sales Give Alarm.com a Boost
During an earnings call with analysts Tuesday, CFO Steve Valenzuela said the increase in hardware revenue was primarily due to an increase in video camera sales and to a lesser extent the inclusion of the company’s acquisition of OpenEye in October 2019.
Total revenue of $140.5 million for the fourth quarter grew 26.1% from Q4 2018. For 2019, total revenue grew 19.5% to $502.4 million. SaaS and license gross margin for the fourth quarter was 86%, up approximately 90 basis points from Q4 2018 gross margin of 85.1%.
Hardware gross margin was 20.8% for the fourth quarter compared to 18.8% for the same quarter last year, primarily due to product mix, Valenzuela said. Total gross margin was 62.6% for the fourth quarter compared to 65.1% for the same quarter last year mainly due to the increase in hardware revenue, he said.
Fourth-quarter non-GAAP adjusted EBITDA increased to $30 million, compared to $20.9 million in Q4 2018. Full year non-GAAP adjusted EBITDA increased to $108.3 million in 2019, compared to $93.1 million the prior year.
Alarm.com said SaaS and license revenue in the first quarter of 2020 is expected to be in the range of $89.9 million to $90.1 million.
More than 9,000 service providers currently sell and service Alarm.com technology to customers in more than 6.8 million properties in over 40 countries. The company manages more than 100 million connected devices and sensors through its Cloud services.
This article originally appeared on our sister publication Security Sales & Integration’s website.
