Alarm.com Stock Up, Guidance Raised, Q2 2023 Financial Results Examined
Alarm.com's stock jumped the day after it announced revenue growth and raised its 2023 full-year guidance for the second time this year.
In this note, we examine Alarm.com's financials, comments from Alarm.com's executives, and the company's market position.
Q2 **** ******* *********, ******* **** ****-**** ********
*****.*** ********$***.* ******* ** ** **** *******, a **% ****** ***. *** ******* raised *** ****-**** **** ******* ********, now ********* ******* ** ** ** the ***** ** $***.*-$***.* *******, ** from *** ***** ******** ** $***.*-$***.* million ********* ** *** ** **** earnings ****.
*****.*** **** ****** *** *** ****** margin ************ **** *.*% ** **.*% - **.*%. ** ***** *****, *****.*** had * *** ****** ****** ** 7% ** **** *** ****, **** a ****** *** ****** ****** ** 12% ** ****.
*****.*** ******** ****** ******* ****** ** 12% ** **** *** **% ** 2021.
*****.***'* *** ******* ******* ********* ** the *******'* ********* **** *** ****** this *******'* ******** ******* *** *** the ******* ******* * ****** ****** margin:
*** **** ************** *** ****** ** our ******* ********** **** *** ********** contributions **** *** ****** ***********.
******** ************** *** ****** ** ********** growth ** *** ****** ** ****** sales, ********** **** ***** ******* ******** during *** *******, *** ********** ******* inventory ******. *** ******** **** ******** adjusted ******(******** ****** ********, ***, ************, and ***********) **** *** ****** ** an ********* ***** ** *********** ****, along **** *** ****** *********** ** SaaS *** ******** ********.
Stock ** **%
*****.***'* ***** *** ** **% ** the ** ***** ******* *:** ** August * ** *:** ** ****** 10.
Headcount ******
******* **** *** ******* *** ********* its ********* ** *** ********* (~**%) in *** **** *******.
** ***** *** ****** ******* **** 1,053 ********* ** *&*, ** **** 919 ********* ** ** ****. ***** headcount ********* ** *,*** ********* *** the ****** ******* ******** ** *,*** employees ** *** ****-*** *******.
Long-Term ************* *********
*****.*** ******* ** **** *** ************* business **** *%-*% ** *** ******* to * "****-**** ******" ** ~**%+, according ** *******:
** *** **** ** ************* *****, it's ******* *% *** *% ** total ******* *** *** ****-**** ****** there ** ********* ******** ** *** 30% **** *****.
** *************, * ***** **** ******* we ********* **** ****** *** ****** 25% ** **** ******** *******. *** that's – **'** *** ***** ** update **** *******, *** * ***** we've **** **** ********** **** ** continue.
**** ********* **** ******* * ~$*** million ****** ******* ********* ***** ** the *******'* ~$*** ******* ****** *******.
Increasing ******* *** ********
******* **** ********* *****.***'* ******** ** driving ** ****-**** ******* ** ********** more ******* **** *** ********** ********:
*** **** ** ***** ***** ** that ********** **** ** ****** **, the *********** ****, *** **** ** remember ** *** **** **** *** place ***** **'** ********* ****** ** commercially **, ** ****** ***** ********. So *** ******* **** ** **'** doing ****** ******* *** **** ***** or **** ***** **** **'** ***** today ** *******.
* ***** ****** **** **** **** some ******* **** ** **** **** and **** ****, ********** ***** ******** be ****** ** – ***** **** be ********, *****'** ** ******** ***** it's ***, *** *** ******** *********** ARPU. *** ** *******, ***'** ******** see * ***** ** ** ********* closer ** *** ** **** * long ****** ** ****.
Video *** *** ********** ****** *** *** *** ********** ** *****.***'* "****** **********"
*****.***'* "****** **********" ********** **** ** ~30% ** *** ******* *** **** faster **** *** ******* ********. ******* mentioned ** *** ******** **** **** Video *** ********** ********** *** *** "2 ****** **********" ** **** ****-****** segment:
** ***** ** ***** ** *** today, * ***** *** ** ***** of **** ****video *** ********** *** *** *** ****** ********** ** **** ***. After that, it would be EnergyHub, which is growing nicely and is probably in the number three spot there. And then international not far behind in the number four spot in terms of rank ordering them on today's contribution.
Reducing ********* ** ***** ********
******* ********** *** *******'* **** ** reduce ********* ** *** ***** ******** business:
*** **** ***** ** ** ***** up **********. ********** *** **** ** the **% ** **% *****. *** we ***** *****'* ** *********** ** get **** ******** **** **** ****** to *** **% ** **% *****.
** **** **** ********** ** *** challenge *****.*** ***** ** ********* ********* in ***** *********:
** *** **** * ******* ** the ****** **** ****** * ******* for *** ********, *****'* * **** that *** ** ****** *** **** to ***** ******** ********** **** **** product. ** ** **** ** ***** down *** **** ** ******* ********* that *** **** **** ********* **** go ******* ******* ****** ***** ******* is *** ** **** *****'* ******** to ****** ****** *** ******* **** or *** ******* ****.
The ******* ****** ******** **** *** ********* ********
** ******** ** *** *** ****** interest ***** ** *** ******* ****** might ********** ****** ****** ** *****.***'* new ********, ******* **** *** **** had *** **** **** ******* ****** place:
*** ******* ******* *** ** ***** pretty ******. ******** ******** ** ***** a **** ****** ** *****. *****'* been * **** ******* *****. ** we *****'* ****** **** *** * decline ** ***** ** ********** ***** into *** *****. *** **'* *** a **** ***** ** *** ********, but **'* **,***, **,*** *** ******** a ****. ** **'* **********.
** *****'* **** **** **** ****** drop ** ***** ** ********* *** to ****** ******** *****. * ***'* think **'** *********** **** * ******** tailwind ***** ***. **'* **** **** of ****** ***** ** ********* ** our ******* ********* ******.
*** **** *****.*** ** ***** **** beyond ******* ******* **** ***** *** raise ***** ************ ****** *******. ********* they ***** ** **** ********* *** the ***************. * **** *** *** these ***** ***** *** **** ****, as ****.