Alarm.com Holdings, Inc. · NASDAQ:ALRM

Alarm.com — Q1 2023 Earnings Presentation

56 slides from Alarm.com's earnings presentation, May 10, 2023

Slide 1: Leading SaaS platform for the intelligently connected property
Leading SaaS platform for the intelligently connected property MAY 2023
Slide 2: Safe Harbor Statement
Safe Harbor Statement FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements that involve risks and uncertainties. All service provider partners, customers and employees, consumer demand for interactive security, video statements other than statements of historical fact con
Slide 5: Company Overview
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 11,000+ 9.1 million+ 1,858 2000 in June 2015; s
Slide 6: Key Investment Highlights
COMPANY OVERVIEW Key Investment Highlights Clear Leader in Innovating to Large & Growing Expand Market Markets Opportunity SaaS Recurring Strong Growth Revenue Model & Profitable Copyright © Alarm.com 2023
Slide 7: Efficient Service Provider Go-to-Market
COMPANY OVERVIEW Efficient Service Provider Go-to-Market A Winning Partnership Alarm.com Contributes 11,000+ • SaaS software for subscribers and service providers • Enterprise services drive service provider efficiency • Innovation engine for partners SERVICE PROVIDER PARTNERS1 Service Provider Cont
Slide 8: Intelligently Connected Properties
COMPANY OVERVIEW LEADING PLATFORM FOR Intelligently Connected Properties 9.1+ 300+ 100+ MI L L I O N B I L L I ON MI L L I O N Subscribers Data Points Connected Devices In the last year alone Copyright © Alarm.com 2023
Slide 9: History of Innovation and TAM Expansion
COMPANY OVERVIEW History of Innovation and TAM Expansion Subscriber Milestones 9.1 M 8.4 M 7.6 M 2018 2017 6.8 M 6.1 M 5.5 M 3rd Party Commercial 2014 Camera Support 2M AI-based Business 2012 Commercial SVR Activity Analytics Acquired 1M Noonlight AI-based Video Industry 1st Flex Pro-Series Commerci
Slide 10: Featured in
APPENDIX “Alarm.com ’s new solar service package designed “Energy Management Product of the Year: to meet increased demand.” Water Dragon, Alarm.com.” “The prominent security manufacturer uses its "Smart Arming was named a CES 2023 Innovation security system to power the brains of its new Awards Hon
Slide 11: Conserving Energy and Resources
COMPANY OVERVIEW Conserving Energy and Resources Our EnergyHub Subsidiary Alarm.com Leverages a Rich Set of Data to Enables Decarbonization Reduce Energy and Water Waste Renewable Energy Resources Energy Star rated Smart Thermostat EnergyHub enables utilities to increase use of zero-carbon Our smart
Slide 13: TAM Expansion
MARKET OPPORTUNITY TAM Expansion Over 500 million serviceable properties and growing Leverage our technology leadership and scale in core markets to drive platform expansion that builds near- term growth and strategically positions Alarm.com to define emerging markets over the long-term. Growth in A
Slide 14: Connected Property Market
MARKET OPPORTUNITY Connected Property Market RESIDENTIAL AND COMMERCIAL MARKETS Amounts shown in billions. Smart Home “The global smart home cloud Commerical platform market is anticipated $34 $29 to grow at a CAGR of 17% from $26 2020 to 2030.” $23 $21 STRATEGY ANALYTICS $29 $31 $23 $26 $19 2020 20
Slide 16: Security Drives Smart Home Adoption
MARKET OPPORTUNITY Security Drives Smart Home Adoption Personal and Family Security 41% “ Most security customers will continue to opt for professionally installed systems, especially as those systems Property Loss Protection 16% gain more functionality”. Energy / Resource Management 16% – Strategy
Slide 17: Global Residential Opportunity
MARKET OPPORTUNITY Global Residential Opportunity US & Canada International Markets Markets 262 Million properties 400 Million 140 Million Total Serviceable Homes1 properties 67 Million Homes with Monitored Security2 38 Million 29 Million Properties Powered by Alarm.com3 > 500 Thousand 1 2019 U.S. C
Slide 18: Business
MARKET OPPORTUNITY Business
Slide 19: Global Commercial Opportunity
MARKET OPPORTUNITY Global Commercial Opportunity Global Market1 118 Million properties Growth Dynamics • Long-term cyclical upgrade opportunity from Serviceable highly penetrated traditional systems Businesses to Alarm.com’s connected property systems. • Integrated security, video, and access contro
Slide 20: North American Commercial Market
MARKET OPPORTUNITY North American Commercial Market Small & Medium Sized Business Market Commercial Business Market Opportunity to upgrade to integrated, smart business solutions High growth in Video Surveillance-as-a-Service (VSaaS) segment as legacy video solutions shift to advanced cloud-based ar
Slide 21: Overview of OpenEye
MARKET OPPORTUNITY Overview of OpenEye A leading provider of cloud-managed, video-based security solutions for the commercial market. • Acquired in October 2019 • 200+ employees • A leader in commercial VSaaS market • Cloud-managed architecture • High growth SaaS revenue • Deployed to 30,000+ locati
Slide 23: 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 www.alarm.com/hardware
Slide 24: Leading Innovation in Video
ALARM.COM SOLUTIONS Leading Innovation in Video Pro Series Video Device CSVR Sync Commercial SVR Pro Series BAA Cameras Analytics- Slim Line II triggered Privacy Z-Wave Lights Rapid Video Analytics Zones Visual Notifications Acquired Object Verification Analytics for + People Video Labs Camera- Busi
Slide 25: Intelligent Cloud-based Platform
ALARM.COM SOLUTIONS Intelligent Cloud-based Platform FOR SUBSCRIBERS FOR SERVICE PROVIDERS Energy Sales & Installation Customer Interactive Video Management Marketing & Support Engagement Security Business Remote Intelligent Wellness Intelligence Diagnostics and Automation Solutions Trouble Shooting
Slide 26: Smarter Security
ALARM.COM SOLUTIONS Smarter Security • Reinvented home security • Proactive protection and AI smart alerts • Securely manage property access with multi-device user codes and schedules • Patented security capabilities Copyright © Alarm.com 2023
Slide 27: Smart Signal
ALARM.COM SOLUTIONS Smart Signal • Easily cancel false alarms from anywhere • Verify emergencies to expedite emergency response • Send a panic alert to dispatch emergency response to the property • Awarded ”Security Product of the Year” during CES 2019 Copyright © Alarm.com 2023
Slide 28: Touchless Doorbell
ALARM.COM SOLUTIONS Touchless Doorbell AI-based object detection and smart alerts • Rapid person detection for faster, more relevant alerts • First commercially available touchless doorbell • 150° vertical field of view make visitors and packages clearly visible Copyright © Alarm.com 2023
Slide 29: Perimeter Guard
ALARM.COM SOLUTIONS Perimeter Guard™ AI-based object detection and smart alerts • Feature specifically reacts to individuals entering your property • Attention-grabbing audio alerts and blinking red LED ensure people are fully aware of camera's presence – deterring intrusion • Easily configure as pa
Slide 30: Flex IO
ALARM.COM SOLUTIONS Flex IO™ Monitor more of what matters— without boundaries • Next-generation sensor for monitoring property and assets anywhere there’s cellular coverage - panel, hub, or Wi-Fi not required • LTE CAT-M cellular communications, battery- operated, and rugged, weather-proof design •
Slide 33: AI Program
COMPANY OVERVIEW AI Program Video Analytics Service Provider Analytics HVAC Analytics Quality Engineering Analytics Unexpected Activity Wellness Business Intelligence Copyright © Alarm.com 2023
Slide 35: Video Analytics
COMPANY OVERVIEW Video Analytics Enhanced service plans for both residential and commercial-grade cameras ALERTS THAT MATTER • Advanced security and awareness • Easily customized to identify highly specific activity • Catch the unexpected My Home: Driveway Camera detected a Vehicle and recorded a vi
Slide 37: Partner Productivity Solutions
COMPETITIVE ADVANTAGES Partner Productivity Solutions A full suite of installation, support, and business management services that help service providers efficiently install and support Alarm.com’s solutions Accelerate Reduce Maximize Optimize Sales Cost to Serve Customer LTV Operations Copyright ©
Slide 38: How We're Different
COMPETITIVE ADVANTAGES How We’re Different Alarm.com has continued to achieve strong growth even as the DIY/Retail market segment has attracted more entrants, thanks to several key distinctions: DIY / RETAIL PRODUCTS ALARM.COM Standalone devices offer limited capability; each device requires a Broad
Slide 40: Compelling Growth Drivers
GROWTH DRIVERS Compelling Growth Drivers Add more Upsell and cross Grow Grow Grow Add more subscribers sell existing Commercial International Verticals Service Provider subscribers Expand in SMB and Add new markets and Energy Utilities, Property Partners 9.1million+ enterprise markets, grow strategi
Slide 41: Global Market
GROWTH DRIVERS Global Market Alarm.com services are available 2B Households worldwide1 $32B Global commercial market2 Delivering solutions in ~60 countries3 Select International Partners: 1 Source: Strategy Analytics, 2020 Global Smart Home Forecast 2 Source: Memoori, The Physical Security Business
Slide 42: Energy Management
GROWTH DRIVERS Energy Management ENTERPRISE SOFTWARE SOLUTIONS FOR ENERGY UTILITIES Optimizes distributed energy resources to reduce usage during periods of peak demand MARKET LEADER Over 60 utility clients, including 16 of the top-50 in the US Mercury DERMS 1.3 gigawatts of dispatchable flexible ca
Slide 43: Property Management
GROWTH DRIVERS Property Management Enterprise smart home automation services for property management of single-family homes, multi-family dwellings, and vacation rentals. ADVANTAGES MARKET OPPORTUNITY • Operational efficiencies for operators 27 MILLION Multi-family units • Asset protection for owner
Slide 44: Advanced Home Automation Solutions
GROWTH DRIVERS Advanced Home Automation Solutions Enabling the HVAC channel to deliver advanced smart home automation solutions • Integrated home energy management, automation, and video services • Service revenue opportunity for HVAC channel • AI models monitor HVAC and proactively detects trouble
Slide 46: Proven M&A Execution
COMPANY OVERVIEW Proven M&A Execution AI-based video analytics 2023 FOCUSED M&A STRATEGY Universal communicator for international markets 2022 Emergency response and personal safety platform Focused to date on small targets, technology and tuck-in acquisitions AI software that enables responsive, fl
Slide 47: Consistent Revenue Growth
FINANCIAL OVERVIEW Consistent Revenue Growth 22% CAGR $843 $749 DOLLARS IN MILLION $618 $323 $289 $502 $225 $420 $165 $339 $129 $261 $103 $520 $87 $460 $393 $291 $337 $236 $174 2016 2017 2018 2019 2020 2021 2022 SaaS & License Revenue Hardware and Other Revenue Copyright © Alarm.com 2023
Slide 48: High SaaS Gross Margins and Renewal Rates
FINANCIAL OVERVIEW High SaaS Gross Margins and Renewal Rates 85% 85% 85% 86% 85% 86% 83% $520 $460 IN MILLION $393 $337 $291 DOLLARS $236 $174 94% 94% 94% 94% 94% 93% 93% 2016 2017 2018 2019 2020 2021 2022 SaaS Gross Margin SaaS and License Revenue SaaS and License Revenue Renewal Rate Copyright © A
Slide 49: Track Record of Profitability
FINANCIAL OVERVIEW Track Record of Profitability Strong track record of profits while investing > 25% of revenue in R&D in 2021 to drive future growth $147 $142 $125 IN MILLION $108 $93 $72 DOLLARS $49 2016 2017 2018 2019 2020 2021 2022 Adj. EBITDA 1 Adjusted EBITDA is a non-GAAP metric. See Appendi
Slide 50: Key Financial Highlights
FINANCIAL OVERVIEW Key Financial Highlights Market Leader Growing • Highly scalable platform • Strong compound annual revenue growth • 9.1 million+ subscribers • 100 million+ connected devices • TAM expanding with IoT applications for commercial • 300 billion+ data points processed in 2022 and resid
Slide 52: Investor Data Sheet (1/3)
COMPANY OVERVIEW Investor Data Sheet (1/3) Alarm.com Holdings, Inc. Select Financial Data | Fiscal Year End December 31 | ($ in thousands) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Statement of Operations Data: 2020 2021 2022 2021 2021 2021 2022 2022 2022 2022 2023 1 SaaS and license revenue $393,257 $460,372 $520,37
Slide 53: Investor Data Sheet (2/3)
COMPANY OVERVIEW Investor Data Sheet (2/3) Alarm.com Holdings, Inc. Non-GAAP Reconciliations | Fiscal Year Ended December 31 | ($ in thousands) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 Non-GAAP Adjusted EBITDA: 2021 2021 2021 2022 2022 2022 2022 2023 Net income $76,660 $51,175 $55,631 $14,490 $13,294
Slide 54: Investor Data Sheet (3/3)
COMPANY OVERVIEW Investor Data Sheet (3/3) Alarm.com Holdings, Inc. Non-GAAP Reconciliations | Fiscal Year Ended December 31 | ($ in thousands) Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2020 2021 2022 Non-GAAP Adjusted Net Income Attributable to Common Stockholders: 2021 2021 2021 2022 2022 2022 2022 2023 Net income
Slide 55: Supplemental Financial Data
COMPANY OVERVIEW 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 2020 2021 2022 Supplemental Financial Data: 2021 2021 2021 2022 2022 2022 2022 2023 1 SaaS and license revenue $393,257 $460,37
Slide 56: 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

Alarm.com Holdings — Q1 2023 Earnings Presentation on 6ix

Alarm.com — Q1 2023 Earnings Presentation

Slide 1: Leading SaaS platform for the intelligently connected property

Slide 2: Safe Harbor Statement

Slide 3: Agenda

Slide 4: Company Overview

Slide 5: Company Overview

Slide 6: Key Investment Highlights

Slide 7: Efficient Service Provider Go-to-Market

Slide 8: Intelligently Connected Properties

Slide 9: History of Innovation and TAM Expansion

Slide 10: Featured in

Slide 11: Conserving Energy and Resources

Slide 12: Market Opportunity

Slide 13: TAM Expansion

Slide 14: Connected Property Market

Slide 15: Residential

Slide 16: Security Drives Smart Home Adoption

Slide 17: Global Residential Opportunity

Slide 18: Business

Slide 19: Global Commercial Opportunity

Slide 20: North American Commercial Market

Slide 21: Overview of OpenEye

Slide 22: Alarm.com Solutions

Slide 23: Alarm.com Platform

Slide 24: Leading Innovation in Video

Slide 25: Intelligent Cloud-based Platform

Slide 26: Smarter Security

Slide 27: Smart Signal

Slide 28: Touchless Doorbell

Slide 29: Perimeter Guard

Slide 30: Flex IO

Slide 31: A Unified Commercial Solution

Slide 32: Play Video

Slide 33: AI Program

Slide 34: Play Video

Slide 35: Video Analytics

Slide 36: Competitive Advantages

Slide 37: Partner Productivity Solutions

Slide 38: How We're Different

Slide 39: Growth Drivers

Slide 40: Compelling Growth Drivers

Slide 41: Global Market

Slide 42: Energy Management

Slide 43: Property Management

Slide 44: Advanced Home Automation Solutions

Slide 45: Financial Overview

Slide 46: Proven M&A Execution

Slide 47: Consistent Revenue Growth

Slide 48: High SaaS Gross Margins and Renewal Rates

Slide 49: Track Record of Profitability

Slide 50: Key Financial Highlights

Slide 51: Appendix

Slide 52: Investor Data Sheet (1/3)

Slide 53: Investor Data Sheet (2/3)

Slide 54: Investor Data Sheet (3/3)

Slide 55: Supplemental Financial Data

Slide 56: One Intelligent Platform