Alarm.com Holdings, Inc. (ALRM) 10-Year Financial Performance & Capital Metrics

ALRM • • Industrial / General

TechnologyApplication SoftwareSecurity & Identity ManagementSmart Home Security

AboutAlarm.com Holdings, Inc. provides cloud-based solutions for smart residential and commercial properties in the United States and internationally. It operates in two segments, Alarm.com and Other. The company provides interactive security solutions to control and monitor their security systems, as well as connected security devices, including door locks, motion sensors, door locks, garage doors, Internet of Things, thermostats, and video cameras; and video monitoring solutions, such as video analytics, live streaming, video doorbell, video clips, video alerts, continuous high definition recording, and commercial video surveillance solutions. It also offers intelligent automation and energy management solutions comprising scenes button; smart thermostat schedules; responsive savings; precision comfort; energy usage monitoring; heating, ventilation, and air conditioning monitoring services; whole home water safety solutions; geo-services; and demand response programs. In addition, the company provides commercial solutions, such as daily safeguards, commercial grade video, energy savings, protection for valuables and inventory, temperature monitoring, multi-site management and access control, early identification, simple to use, professionally supported, and easy to maintain. Further, it offers service provider solutions, including a permission-based online portal that offers account management, sales, marketing, training, and support tools; sales, marketing, and training services; and home builder programs, as well as wellness solutions. The company serves residential and commercial subscribers. Alarm.com Holdings, Inc. was founded in 2000 and is based in Tysons, Virginia.Show more

Revenue $940M +6.6%
EBITDA $152M +36.6%
Net Income $124M +53.1%
EPS (Diluted) 2.29 +49.7%
Gross Margin 65.3% +3.4%
EBITDA Margin 16.13% +28.2%
Operating Margin 11.55% +52.4%
Net Margin 13.21% +43.7%
ROE 16.59% +38.0%
ROIC 14.02% +51.7%
Debt/Equity 1.37 +88.8%
Interest Coverage 9.50 -51.3%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Strong 5Y profit CAGR of 18.3%
✓FCF machine: 20.9% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Strong 5Y sales CAGR of 13.3%

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y18.84%

5Y13.35%

3Y7.86%

TTM7.35%

Profit (Net Income) CAGR

10Y24.84%

5Y18.32%

3Y33.42%

TTM2.46%

EPS CAGR

10Y66.25%

5Y16.66%

3Y31.37%

TTM2.16%

ROCE

10Y Avg8.05%

5Y Avg6.81%

3Y Avg5.66%

Latest6.97%

Peer Comparison

Smart Home Security

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
ALRMAlarm.com Holdings, Inc.	2.53B	50.76	22.17	6.59%	12.92%	14.51%	7.75%	1.37
SMSISmith Micro Software, Inc.	14.62M	0.58	-0.15	-49.7%	-158.87%	-146.63%		0.06
MYSEMyseum Inc.	8.02M	1.88	-1.31	-35.12%	-8154.64%	-83.2%
IPMIntelligent Protection Management Corp.	16.54M	1.82	-2	14.16%	-58.58%	-36.32%		0.01
CSAICLOUDASTRUCTURE, INC.	18.05M	0.93	-2.06	124.71%	-210.71%	-115.34%
SMRTSmartRent, Inc.	329.21M	1.74	-10.24	-26.16%	-45.45%	-29.32%		0.02
JAMFJamf Holding Corp.	1.75B	13.02	-24.57	11.92%	-5.98%	-5.25%	1.27%	0.52
LIFLife360, Inc.	4.69B	59.79	-946.04	21.99%	6.46%	7.58%	0.59%	0.00

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	208.89M	261.11M	338.94M	420.49M	502.36M	618M	748.97M	842.56M	881.68M	939.83M
Revenue Growth %	0.25%	0.25%	0.3%	0.24%	0.19%	0.23%	0.21%	0.12%	0.05%	0.07%
Cost of Goods Sold+	77.37M	99.38M	116.19M	145.72M	183.6M	227.43M	305.9M	342.58M	325.16M	326.15M
COGS % of Revenue	0.37%	0.38%	0.34%	0.35%	0.37%	0.37%	0.41%	0.41%	0.37%	0.35%
Gross Profit+	131.51M	161.73M	222.75M	274.78M	318.76M	390.57M	443.07M	499.98M	556.52M	613.68M
Gross Margin %	0.63%	0.62%	0.66%	0.65%	0.63%	0.63%	0.59%	0.59%	0.63%	0.65%
Gross Profit Growth %	0.31%	0.23%	0.38%	0.23%	0.16%	0.23%	0.13%	0.13%	0.11%	0.1%
Operating Expenses+	113.52M	147.67M	189.38M	262.58M	268.35M	334.28M	381.5M	448.94M	489.69M	505.13M
OpEx % of Revenue	0.54%	0.57%	0.56%	0.62%	0.53%	0.54%	0.51%	0.53%	0.56%	0.54%
Selling, General & Admin	67.71M	96.91M	98.89M	151.65M	131.77M	154.61M	174.07M	199.44M	213.16M	220.12M
SG&A % of Revenue	0.32%	0.37%	0.29%	0.36%	0.26%	0.25%	0.23%	0.24%	0.24%	0.23%
Research & Development	40M	44.27M	72.75M	89.2M	114.44M	152.15M	177.71M	218.63M	245.11M	255.88M
R&D % of Revenue	0.19%	0.17%	0.21%	0.21%	0.23%	0.25%	0.24%	0.26%	0.28%	0.27%
Other Operating Expenses	0	0	0	0	22.13M	27.52M	29.71M	30.87M	31.42M	29.13M
Operating Income+	17.99M	14.06M	33.37M	12.2M	50.41M	56.3M	61.57M	51.04M	66.83M	108.55M
Operating Margin %	0.09%	0.05%	0.1%	0.03%	0.1%	0.09%	0.08%	0.06%	0.08%	0.12%
Operating Income Growth %	-0.14%	-0.22%	1.37%	-0.63%	3.13%	0.12%	0.09%	-0.17%	0.31%	0.62%
EBITDA+	24.19M	21.33M	52.07M	34.82M	80.85M	84.7M	102.22M	93.77M	110.95M	151.61M
EBITDA Margin %	0.12%	0.08%	0.15%	0.08%	0.16%	0.14%	0.14%	0.11%	0.13%	0.16%
EBITDA Growth %	-0.04%	-0.12%	1.44%	-0.33%	1.32%	0.05%	0.21%	-0.08%	0.18%	0.37%
D&A (Non-Cash Add-back)	6.2M	7.28M	18.7M	22.62M	30.43M	28.4M	40.65M	42.73M	44.12M	43.06M
EBIT	17.64M	14.57M	34.44M	14.62M	61.87M	82.76M	62.02M	59.74M	101.25M	153.23M
Net Interest Income+	-178K	-190K	-1.17M	-646K	1.95M	-1.73M	-15.37M	5.62M	26.37M	35.93M
Interest Income	0	0	1.03M	2.27M	4.92M	870K	587K	8.76M	29.8M	47.36M
Interest Expense	178K	190K	2.2M	2.92M	2.97M	2.6M	15.96M	3.14M	3.43M	11.43M
Other Income/Expense	-526K	323K	-1.13M	-503K	8.48M	23.86M	-15.5M	5.56M	31M	33.26M
Pretax Income+	17.46M	14.38M	32.24M	11.7M	58.9M	80.16M	46.07M	56.59M	97.83M	141.81M
Pretax Margin %	0.08%	0.06%	0.1%	0.03%	0.12%	0.13%	0.06%	0.07%	0.11%	0.15%
Income Tax+	5.7M	4.23M	2.99M	-9.82M	5.57M	3.5M	-5.11M	962K	17.48M	19.29M
Effective Tax Rate %	0.67%	0.71%	0.91%	1.84%	0.91%	0.97%	1.13%	1%	0.83%	0.88%
Net Income+	11.77M	10.14M	29.24M	21.52M	53.53M	77.85M	52.26M	56.34M	81.04M	124.12M
Net Margin %	0.06%	0.04%	0.09%	0.05%	0.11%	0.13%	0.07%	0.07%	0.09%	0.13%
Net Income Growth %	-0.13%	-0.14%	1.88%	-0.26%	1.49%	0.45%	-0.33%	0.08%	0.44%	0.53%
Net Income (Continuing)	11.77M	10.15M	29.25M	21.52M	53.33M	76.66M	51.17M	55.63M	80.34M	122.51M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	11.21M	10.69M	12.89M	23.99M	36.31M	44.75M
EPS (Diluted)+	-0.30	0.21	0.59	0.43	1.06	1.53	1.01	1.07	1.53	2.29
EPS Growth %	-22.13%	1.7%	1.81%	-0.27%	1.47%	0.44%	-0.34%	0.06%	0.43%	0.5%
EPS (Basic)	-0.30	0.22	0.63	0.45	1.11	1.59	1.05	1.13	1.63	2.50
Diluted Shares Outstanding	24.11M	47.88M	49.15M	49.69M	50.27M	50.96M	51.92M	54.93M	54.63M	57.99M
Basic Shares Outstanding	24.06M	45.72M	46.68M	47.63M	48.43M	48.95M	49.87M	49.93M	49.82M	49.64M
Dividend Payout Ratio	0.09%	-	-	-	-	-	-	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	161.05M	190.18M	163.94M	228.06M	243.67M	397.41M	917.62M	891.09M	956.78M	1.48B
Cash & Short-Term Investments	128.36M	140.63M	96.33M	146.06M	119.63M	253.46M	710.62M	622.16M	696.98M	1.22B
Cash Only	128.36M	140.63M	96.33M	146.06M	119.63M	253.46M	710.62M	622.16M	696.98M	1.22B
Short-Term Investments	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	21.35M	29.81M	40.63M	49.51M	76.37M	83.33M	105.55M	124.28M	130.63M	126.08M
Days Sales Outstanding	37.3	41.67	43.76	42.98	55.49	49.21	51.44	53.84	54.08	48.97
Inventory	6.47M	10.54M	14.18M	22.99M	34.17M	44.28M	75.28M	115.58M	96.14M	87.44M
Days Inventory Outstanding	30.54	38.72	44.54	57.59	67.93	71.07	89.82	123.15	107.92	97.85
Other Current Assets	4.87M	9.2M	12.8M	9.5M	13.5M	16.35M	26.18M	29.06M	33.03M	47.37M
Total Non-Current Assets+	65.05M	71.06M	207.71M	212.92M	314.13M	334.27M	314.39M	438.29M	482.78M	556.62M
Property, Plant & Equipment	15.45M	20.18M	23.46M	27.76M	69.07M	78.25M	72.19M	86.11M	78.41M	116.63M
Fixed Asset Turnover	13.52x	12.94x	14.45x	15.15x	7.27x	7.90x	10.37x	9.79x	11.25x	8.06x
Goodwill	24.72M	24.72M	63.59M	63.59M	104.96M	112.84M	112.9M	148.18M	154.5M	154.21M
Intangible Assets	6.32M	4.57M	94.29M	79.07M	103.44M	103.26M	91.41M	82.46M	78.56M	63.16M
Long-Term Investments	3.9M	0	0	0	0	0	0	0	0	0
Other Non-Current Assets	2.74M	4.84M	7.92M	13.55M	17.52M	18.23M	24.35M	37.36M	39.5M	41.33M
Total Assets+	226.09M	261.25M	371.64M	440.99M	557.8M	731.69M	1.23B	1.33B	1.44B	2.04B
Asset Turnover	0.92x	1.00x	0.91x	0.95x	0.90x	0.84x	0.61x	0.63x	0.61x	0.46x
Asset Growth %	0.87%	0.16%	0.42%	0.19%	0.26%	0.31%	0.68%	0.08%	0.08%	0.42%
Total Current Liabilities+	29.08M	39.7M	44.5M	75.27M	75.8M	90.24M	129.34M	164.94M	175.34M	188.81M
Accounts Payable	12.81M	18.29M	17.01M	20.21M	32.88M	38.16M	64.75M	53.12M	39.04M	65.61M
Days Payables Outstanding	60.44	67.17	53.43	50.63	65.36	61.25	77.26	56.6	43.82	73.43
Short-Term Debt	0	0	0	0	0	0	0	0	0	0
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	6.46M	10.01M	19.9M	38.22M	22.1M	26.62M	28.67M	31M	50M	45.06M
Current Ratio	5.54x	4.79x	3.68x	3.03x	3.21x	4.40x	7.09x	5.40x	5.46x	7.85x
Quick Ratio	5.32x	4.53x	3.37x	2.72x	2.76x	3.91x	6.51x	4.70x	4.91x	7.38x
Cash Conversion Cycle	7.4	13.22	34.87	49.93	58.05	59.03	64	120.39	118.18	73.39
Total Non-Current Liabilities+	26.89M	30.3M	94.31M	88.13M	115.14M	163M	476.62M	541.59M	539.37M	1.08B
Long-Term Debt	6.7M	6.7M	71M	67M	63M	110M	425.35M	490.37M	493.51M	983.48M
Capital Lease Obligations	0	0	0	0	37.2M	37.7M	32.59M	27.38M	20.47M	65.53M
Deferred Tax Liabilities	0	0	0	0	0	0	0	0	0	0
Other Non-Current Liabilities	10.48M	13.56M	13.93M	13.31M	7.49M	6.81M	9.54M	13.05M	12.7M	15.48M
Total Liabilities	55.96M	70M	138.81M	163.4M	190.94M	253.24M	605.96M	706.53M	714.71M	1.27B
Total Debt+	6.7M	6.7M	71M	67M	107.88M	157.67M	468.27M	529.91M	526.03M	1.06B
Net Debt	-121.66M	-133.93M	-25.33M	-79.06M	-11.75M	-95.79M	-242.35M	-92.26M	-170.96M	-163.99M
Debt / Equity	0.04x	0.04x	0.30x	0.24x	0.29x	0.33x	0.75x	0.85x	0.73x	1.37x
Debt / EBITDA	0.28x	0.31x	1.36x	1.92x	1.33x	1.86x	4.58x	5.65x	4.74x	6.97x
Net Debt / EBITDA	-5.03x	-6.28x	-0.49x	-2.27x	-0.15x	-1.13x	-2.37x	-0.98x	-1.54x	-1.08x
Interest Coverage	101.07x	73.99x	15.18x	4.18x	16.95x	21.69x	3.86x	16.23x	19.49x	9.50x
Total Equity+	170.13M	191.25M	232.83M	277.59M	366.86M	478.44M	626.05M	622.85M	724.85M	771.29M
Equity Growth %	1.11%	0.12%	0.22%	0.19%	0.32%	0.3%	0.31%	-0.01%	0.16%	0.06%
Book Value per Share	7.06	3.99	4.74	5.59	7.30	9.39	12.06	11.34	13.27	13.30
Total Shareholders' Equity	170.13M	191.25M	232.83M	277.59M	355.65M	467.75M	613.17M	598.86M	688.55M	726.55M
Common Stock	455K	461K	472K	481K	487K	496K	504K	510K	519K	528K
Retained Earnings	-128.06M	-117.91M	-88.68M	-64.03M	-10.46M	66.57M	118.83M	185.14M	266.19M	390.3M
Treasury Stock	-42K	0	0	0	0	-5.15M	-5.15M	-83.99M	-111.29M	-186.29M
Accumulated OCI	-226.09M	0	0	0	0	0	0	0	1.4M	815K
Minority Interest	0	0	0	0	11.21M	10.69M	12.89M	23.99M	36.31M	44.75M

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	27.14M	17.5M	57.19M	60.71M	47.11M	102.08M	103.16M	56.9M	135.97M	206.41M
Operating CF Margin %	0.13%	0.07%	0.17%	0.14%	0.09%	0.17%	0.14%	0.07%	0.15%	0.22%
Operating CF Growth %	0.74%	-0.36%	2.27%	0.06%	-0.22%	1.17%	0.01%	-0.45%	1.39%	0.52%
Net Income	11.77M	10.15M	29.25M	21.52M	53.53M	76.66M	51.17M	55.63M	80.34M	122.51M
Depreciation & Amortization	6.2M	7.28M	18.7M	22.62M	22.83M	37.29M	40.65M	42.73M	44.12M	43.06M
Stock-Based Compensation	3.35M	4M	7.41M	13.43M	0	29.18M	38.69M	52.65M	47.28M	41.24M
Deferred Taxes	-3.55M	-4.84M	2.49M	-11.48M	2.6M	-3.26M	-10.12M	-55.04M	-47.73M	-34.5M
Other Non-Cash Items	2.15M	2.67M	3.55M	5.26M	20.21M	-19.55M	18.25M	8.81M	10.54M	12.91M
Working Capital Changes	7.22M	-1.77M	-4.22M	9.36M	-52.06M	-18.24M	-35.5M	-47.88M	1.41M	21.18M
Change in Receivables	-5.91M	-11.18M	-1.91M	-9.3M	-22.27M	-10.1M	-23.94M	-24.35M	-10.54M	271K
Change in Inventory	378K	-4.07M	-3.33M	-8.81M	-6.49M	-10.65M	-31.44M	-40.31M	20.96M	8.56M
Change in Payables	5.97M	10.46M	3.77M	30.61M	-10.98M	13.78M	39.42M	32.94M	4.61M	20.13M
Cash from Investing+	-18.05M	-11.43M	-168.79M	-13.38M	-73.41M	-20.27M	-20.36M	-68.32M	-25.97M	-24.68M
Capital Expenditures	-10.35M	-9.05M	-10.46M	-11.02M	-19.32M	-16.14M	-11.06M	-28.64M	-7.52M	-10.13M
CapEx % of Revenue	0.05%	0.03%	0.03%	0.03%	0.04%	0.03%	0.01%	0.03%	0.01%	0.01%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-1.41M	-2.23M	-4M	-2.36M	4.74M	-3.52M	-4.3M	2.21M	-7.05M	-3.52M
Cash from Financing+	76.7M	6.2M	67.3M	2.4M	-130K	52.02M	374.37M	-76.32M	-31.86M	346.43M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	-20M	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-1.28M	6.21M	3.01M	6.4M	0	10.17M	-21.33M	2.52M	-1.53M	-78.57M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	16.67M	6.84M	46.72M	48.62M	27.79M	81.59M	87.73M	28.26M	121.79M	196.28M
FCF Margin %	0.08%	0.03%	0.14%	0.12%	0.06%	0.13%	0.12%	0.03%	0.14%	0.21%
FCF Growth %	0.91%	-0.59%	5.83%	0.04%	-0.43%	1.94%	0.08%	-0.68%	3.31%	0.61%
FCF per Share	0.69	0.14	0.95	0.98	0.55	1.60	1.69	0.51	2.23	3.38
FCF Conversion (FCF/Net Income)	2.31x	1.73x	1.96x	2.82x	0.88x	1.31x	1.97x	1.01x	1.68x	1.66x
Interest Paid	175K	181K	2.01M	0	0	2.43M	114K	0	192K	5.66M
Taxes Paid	8.51M	6.02M	1.8M	0	0	7.37M	4.15M	7.45M	64.58M	68.21M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	9.39%	5.61%	13.79%	8.43%	16.61%	18.42%	9.46%	9.02%	12.03%	16.59%
Return on Invested Capital (ROIC)	28.95%	19.93%	18.9%	4.51%	13.66%	11.45%	12.05%	8.37%	9.24%	14.02%
Gross Margin	62.96%	61.94%	65.72%	65.35%	63.45%	63.2%	59.16%	59.34%	63.12%	65.3%
Net Margin	5.63%	3.88%	8.63%	5.12%	10.66%	12.6%	6.98%	6.69%	9.19%	13.21%
Debt / Equity	0.04x	0.04x	0.30x	0.24x	0.29x	0.33x	0.75x	0.85x	0.73x	1.37x
Interest Coverage	101.07x	73.99x	15.18x	4.18x	16.95x	21.69x	3.86x	16.23x	19.49x	9.50x
FCF Conversion	2.31x	1.73x	1.96x	2.82x	0.88x	1.31x	1.97x	1.01x	1.68x	1.66x
Revenue Growth	24.85%	25%	29.81%	24.06%	19.47%	23.02%	21.19%	12.5%	4.64%	6.59%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
License and Service	-	-	-	291.07M	337.38M	393.26M	460.37M	520.38M	569.2M	631.2M
License and Service Growth	-	-	-	-	15.91%	16.56%	17.07%	13.03%	9.38%	10.89%
Hardware and Other Revenue	-	-	-	129.42M	164.99M	224.75M	288.6M	322.18M	312.48M	308.63M
Hardware and Other Revenue Growth	-	-	-	-	27.48%	36.22%	28.41%	11.64%	-3.01%	-1.23%
Alarm.Com	202.75M	247.78M	640.06M	-	-	-	-	-	-	-
Alarm.Com Growth	-	22.21%	158.32%	-	-	-	-	-	-	-
Others	9.05M	18.83M	47.71M	-	-	-	-	-	-	-
Others Growth	-	107.98%	153.42%	-	-	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Alarm.com Holdings, Inc. (ALRM) has a price-to-earnings (P/E) ratio of 22.2x. This is roughly in line with market averages.

Growth & Financials

Alarm.com Holdings, Inc. (ALRM) reported $991.8M in revenue for fiscal year 2024. This represents a 928% increase from $96.5M in 2012.

Alarm.com Holdings, Inc. (ALRM) grew revenue by 6.6% over the past year. This is steady growth.

Yes, Alarm.com Holdings, Inc. (ALRM) is profitable, generating $128.2M in net income for fiscal year 2024 (13.2% net margin).

Dividend & Returns

Alarm.com Holdings, Inc. (ALRM) has a return on equity (ROE) of 16.6%. This is reasonable for most industries.

Alarm.com Holdings, Inc. (ALRM) generated $154.9M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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