Alarm.com Holdings, Inc. · NASDAQ:ALRM
Alarm.com — Q1 2024 Earnings Presentation
49 slides from Alarm.com's earnings presentation, May 9, 2024
Slide 1: Leading SaaS platform for the intelligently connected property
Leading SaaS platform for the intelligently connected property May 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements that involve risks and uncertainties. All and businesses and to manage service provider partners, customers and employees, consumer statements other than statements of historical fact contained in
Slide 3: Agenda
APPENDIX Company Overview Market Opportunity AGENDA The Alarm.com Platform Our Solutions Growth Drivers Financial Overview Copyright © Alarm.com 2023
Slide 4: Company Overview
Company.Overview
Slide 5: Alarm.com company overview
The cloud based (SaaS) operating system which enables service providers and their subscribers to intelligently manage and control their residential and commercial properties with highly advanced IoT technology solutions. Founded in IPO ~12,000 2,002 2000 in June 2015; service provider employees Nasd
Slide 6: Key Investment Highlights
Key Investment Highlights Clear Leader in Large Innovating to Expand & Growing Markets Market Opportunities SaaS Recurring Strong Revenue Model Profitable Growth 94% Revenue Renewal Rate Growth initiatives represent 31% of total SaaS, growing 86% SaaS Gross Margin 27% year-over-year in 2023
Slide 7: Efficient Service Provider Go-to Market
Efficient Service Provider Go-to Market Alarm.com Service Provider Contributes Contributes ü SaaS software for subscribers and service providers Winning ü Customer acquisition and marketing ü Enterprise services drive Partnership ü System installation and service provider efficiency ongoing support
Slide 8: History of Innovation & TAM Expansion
History of Innovation & TAM Expansion 2023 Cell Connector 2022 for Access Control 2021 3rd Party 729 Floodlight Camera Support Camera AI-based Business Activity Analytics Acquired Battery-free 2020 Noonlight Video Doorbell Pro-Series Commercial SVR Commercial Water Dragon Pro-Series Cameras 2019 Cam
Slide 9: Market Opportunity
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Slide 10: Market Opportunity
Market Over 500 million serviceable properties Opportunity and growing Leveraging our technology leadership and scale in core markets to expand into emerging market opportunities. Our growth initiatives collectively represent 31% of our total SaaS and grew 27% year-over-year in 2023. These initiativ
Slide 11: Global Residential Opportunity
Global Residential Opportunity International Markets US & Canada 262 Million Markets properties 140 Million Total Serviceable Homes 1 properties 38 Million Homes with Monitored Security 2 29 Million Properties Powered by Alarm.com 3
Slide 12: Global Commercial Opportunity
Global Commercial Opportunity Global Market 1 Growth Dynamics 118 Million Long-term cyclical upgrade properties Serviceable opportunity from traditional Businesses systems to Alarm.com’s intelligent, unified security, video, and access control solutions. Businesses with Robust solution suite increas
Slide 13: North American Commercial Market
North American Commercial Market Small & Medium Enterprise Commercial Business Segment Segment ü Opportunity to upgrade from ü Legacy video solutions are shifting to traditional systems to integrated, cloud-based architectures powered by smart business solutions A.I. capabilities ü ~6M target proper
Slide 14: Enterprise Commercial Video
Enterprise Commercial Video A leading provider of cloud-managed, video-based security solutions for the commercial market ü Engineered for enterprise commercial and national account customers ü Addresses high-growth commercial VSaaS market ü Cloud-managed architecture ü High growth SaaS revenue ü De
Slide 15: The Alarm.com Platform
The Alarm.com Platform
Slide 16: Alarm.com Platform
Alarm.com Platform A unified experience Intelligent Solutions Security Access Video Energy Lights Garage Water Wellness Solar Internet of Things Ecosystem part of HID Global Advanced Cloud Platform
Slide 17: Intelligent Cloud-Based Solutions
Intelligent Cloud-Based Solutions For Subscribers For Service Providers Interactive Intelligent Video Wellness Energy Sales Business Installation Remote Customer Security Automation Surveillance Solutions Management & Marketing Intelligence & Support Diagnostics Engagement
Slide 18: Large Language Models, Quality Engineering, Video Analytics
Large Language Models Quality Engineering Analytics Video Analytics Unexpected Activity Service Provider Analytics Wellness HVAC Analytics Business Intelligence
Slide 19: Play Video
Play Video
Slide 20: Video Analytics AI
Video Analytics Enhanced Service plans for commercial-grade cameras that serve residential and business customers Alerts that matter ü Advanced security and awareness A L A R M ü Detect cars, people, and animals AI ü Easily customize to identify highly specific activity ü Catch the unexpected My Hom
Slide 21: Our Solutions
Our Solutions
Slide 22: Smarter Security
Smarter Security ü Reinvented home security ü AI - powered smart alerts ü Proactive protection and awareness ü Securely manage property access with multi-device user codes and schedules ü Patented security capabilities
Slide 23: Smart Signal
Smart Signal ü Easily cancel false alarms from anywhere ü Verify emergencies to expedite emergency response ü Send a panic alert to dispatch emergency response to the property ü Awarded “Security Product of the Year” during CES 2019
Slide 24: Video Doorbells
Video Doorbells ü AI-powered object detection – with Rapid People Detection for faster, more relevant alerts ü Proactive awareness and deterrence capabilities, plus the first commercially available touchless doorbell ü Whole-home integration, with call screen actions to unlock doors, turn on lights,
Slide 25: Perimeter Guard
Perimeter Guard™ AI-based object detection and smart alerts Person ü Feature specifically reacts to individuals entering your property ü Attention-grabbing audio alerts and blinking red LED ensure people are fully aware of the camera's presence – deterring intrusion ü Easily configure as part of a V
Slide 26: 729 Floodlight Camera
729 Floodlight “You are trespassing on Camera private property” AI-based proactive deterrence for residential and commercial markets Person Video Analytics Warning Response Escalated Response Detects a person, animal, 3000 Lumen floodlight Engage and deter or vehicle, and responds and red and blue p
Slide 27: A Unified Commercial Solution
A Unified Integrated solutions drive depth of service and Commercial Solution increased ARPU Security & Intrusion Video Surveillance Access Control
Slide 28: Total Business Awareness
Total Business Alarm activated Awareness Business opened late/closed early Power outage Unexpected activity Temperature out of range Invalid access attempt Vehicle/person now ALARM.COM approaching after hours My Business: Parking Lot Camera detected a person at 10:47 pm. Occupancy limit exceeded Loc
Slide 29: One Pane of Glass for Multiple Locations
One Pane of Glass for Multiple Locations
Slide 30: Forensic Video Search
Forensic Quickly access video clips based Video Search on sensor and property activity and AI-powered alerts
Slide 31: Play Video
Play Video
Slide 32: Growth Drivers
Growth Drivers
Slide 33: Compelling Growth Drivers
Compelling Our growth initiatives represent 31% of total SaaS and are growing Growth Drivers 27% year-over-year in 2023. These initiatives consist of our commercial, international, video, and EnergyHub businesses. Grow Grow Upsell existing Add more Grow Add service commercial international subscribe
Slide 34: Global Market
Global Market 2B Households worldwide 1 $32B Global commercial market 2 ~60 Countries Solutions delivered 3 Select International Alarm.com services are available Partners
Slide 35: Enterprise software solutions for energy utilities
Enterprise software solutions for energy Market leader utilities Over 60 utility clients, including Optimizes distributed energy resources to reduce usage 16 of the top-50 in the US during periods of peak demand Largest connected device manufacturer ecosystem Programs available to 50% of U.S demand-
Slide 36: Enterprise smart home automation for property management
Enterprise smart home automation services for property management of multi-family dwellings, single-family homes, and vacation rentals. Market Advantages Opportunity ü Operational efficiencies for operators 27 MILLION Multi-family units ü Asset protection for owners ~2 MILLION ü In-demand amenity Va
Slide 37: Enabling the HVAC channel with smart home automation
Enabling the HVAC channel to deliver advanced smart home automation solutions ü Integrated home energy management, automation, and video services ü Service revenue opportunity for HVAC channel ü AI models monitor HVAC and proactively detects trouble Select Partners conditions before escalating into
Slide 38: Conserving Energy and Resources
Conserving Energy and Resources Our EnergyHub Subsidiary Alarm.com Leverages a Rich Set of Data Enables Decarbonization to Reduce Energy and Water Waste Renewable Energy Resources Energy Star rated Smart Thermostat EnergyHub enables utilities to increase use of zero- Our smart thermostats know when
Slide 39: Financial Overview
Financial Overview
Slide 40: Proven M&A Execution
Proven M&A 2023 AI-based video analytics Execution Universal communicator for international markets 2022 Emergency response and personal safety platform 2021 AI software that enables responsive, M&A Strategy flexible grid services 2020 ü Focused to date on small targets, Patented indoor gunshot dete
Slide 41: Consistent Revenue Growth
Consistent Revenue Growth $881 $843 SaaS & License Revenue $749 Hardware and Other Revenue $312 $323 $618 $289 $502 $225 $420 $165 $339 $129 $261 $103 $569 $520 $87 $460 $393 $337 $291 $236 $174 201 6 201 7 201 8 201 9 2020 2021 2022 2023
Slide 42: High SaaS Gross Margins & Renewal Rate
High SaaS Gross Margins & Renewal Rate 94% 94% 94% 94% 94% 94% 93% 93% 85% 85% 85% 86% 85% 86% 85% 83% SaaS Revenue Renewal Rate $569 $520 SaaS Gross Margin $460 SaaS and License Revenue $393 IN MILLION $337 $291 $236 DOLLARS $174 201 6 201 7 201 8 201 9 2020 2021 2022 2023
Slide 43: Track Record of Profitability
Track Record of Strong track record of profitability while investing > 25% of revenue Profitability in R&D to drive future growth $154 Adj. EB ITDA $147 $142 DOLLARS IN MILLIONS $125 $108 $93 $72 $49 201 6 201 7 201 8 201 9 2020 2021 2022 2023
Slide 44: Appendix
COMPANY OVERVIEW Appendix Copyright © Alarm.com 2023
Slide 45: Investor Data Sheet 1/3
Investor Data Sheet 1/3 Alarm.com Holdings, Inc. Select Financial Data | Fiscal Year End December 31 | ($ in thousands) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Statement of Operations Data: 2021 2022 2023 2022 2022 2022 2023 2023 2023 2023 2024 1 SaaS and license revenue $460,372 $520,377 $569,200 $129,475 $133,126
Slide 46: Investor Data Sheet 2/3
Investor Data Sheet 2/3 Alarm.com Holdings, Inc. Non-GAAP Reconciliations | Fiscal Year Ended December 31 | ($ in thousands) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2022 2023 Non-GAAP Adjusted EBITDA: 2022 2022 2022 2023 2023 2023 2023 2024 Net income $51,175 $55,631 $80,340 $10,828 $18,110 $17,790 $14,207 $15
Slide 47: Investor Data Sheet 3/3
Investor Data Sheet 3/3 Alarm.com Holdings, Inc. Non-GAAP Reconciliations | Fiscal Year Ended December 31 | ($ in thousands) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2022 2023 Non-GAAP Adjusted Net Income Attributable to Common Stockholders: 2022 2022 2022 2023 2023 2023 2023 2024 Net income attributable to com
Slide 48: Supplemental Financial Data
Supplemental Financial Data Alarm.com Holdings, Inc. Supplemental Financial Data | Fiscal Year Ended December 31 | ($ in thousands) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2022 2023 Supplemental Financial Data: 2022 2022 2022 2023 2023 2023 2023 2024 1 SaaS and license revenue $460,372 $520,377 $569,200 $129,4
Slide 49: One Intelligent Platform
APPENDIX Security Access Video Energy Lights Garage Water Wellness ONE INTELLIGENT PLATFORM “Users prefer these Smart Home applications over DIY device specific apps” 2 0 1 6 R E P O R T Copyright © Alarm.com 2023