Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 03, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ALARM.COM HOLDINGS, INC. | |
Entity Central Index Key | 1,459,200 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 45,633,044 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Revenue: | |||||
SaaS and license revenue | $ 42,010 | $ 34,134 | $ 82,022 | $ 66,089 | |
Hardware and other revenue | 22,413 | 17,815 | 41,444 | 31,871 | |
Total revenue | 64,423 | 51,949 | 123,466 | 97,960 | |
Cost of revenue: | |||||
Cost of SaaS and license revenue | [1] | 7,211 | 6,297 | 13,992 | 12,330 |
Cost of hardware and other revenue | [1] | 17,972 | 14,190 | 32,307 | 24,966 |
Total cost of revenue | [1] | 25,183 | 20,487 | 46,299 | 37,296 |
Operating expenses: | |||||
Sales and marketing | 9,851 | 8,064 | 18,827 | 15,980 | |
General and administrative | 14,191 | 8,514 | 27,320 | 15,584 | |
Research and development | 10,777 | 9,079 | 20,747 | 16,831 | |
Amortization and depreciation | 1,613 | 1,528 | 3,204 | 2,866 | |
Total operating expenses | 36,432 | 27,185 | 70,098 | 51,261 | |
Operating income | 2,808 | 4,277 | 7,069 | 9,403 | |
Interest expense | (47) | (42) | (88) | (84) | |
Other income / (expense), net | 88 | (62) | 199 | (55) | |
Income before income taxes | 2,849 | 4,173 | 7,180 | 9,264 | |
Provision for income taxes | 976 | 1,664 | 2,569 | 3,714 | |
Net income | 1,873 | 2,509 | 4,611 | 5,550 | |
Dividends paid to participating securities | 0 | (18,987) | 0 | (18,987) | |
Net income / (loss) attributable to common stockholders | $ 1,873 | $ (16,478) | $ 4,611 | $ (13,437) | |
Net income / (loss) per share: | |||||
Net income / (loss) per share, basic (in dollars per share) | $ 0.04 | $ (6.09) | $ 0.10 | $ (5.03) | |
Net income / (loss) per share, diluted (in dollars per share) | $ 0.04 | $ (6.09) | $ 0.10 | $ (5.03) | |
Weighted average common shares outstanding: | |||||
Weighted average common shares outstanding, basic (in shares) | 45,602,061 | 2,706,369 | 45,564,059 | 2,671,783 | |
Weighted average common shares outstanding, diluted (in shares) | 47,523,187 | 2,706,369 | 47,405,511 | 2,671,783 | |
Cash dividends declared per share (in dollars per share) | $ 0 | $ 0.36 | $ 0 | $ 0.36 | |
[1] | Exclusive of amortization and depreciation shown in operating expenses below. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 134,164 | $ 128,358 |
Accounts receivable, net | 27,502 | 21,348 |
Inventory | 9,453 | 6,474 |
Other current assets | 6,481 | 4,870 |
Total current assets | 177,600 | 161,050 |
Property and equipment, net | 17,361 | 15,446 |
Intangible assets, net | 5,385 | 6,318 |
Goodwill | 24,723 | 24,723 |
Deferred tax assets | 12,913 | 11,915 |
Other assets | 3,948 | 6,643 |
Total Assets | 241,930 | 226,095 |
Current liabilities: | ||
Accounts payable, accrued expenses and other current liabilities | 27,330 | 19,276 |
Accrued compensation | 6,065 | 7,514 |
Deferred revenue | 2,418 | 2,289 |
Total current liabilities | 35,813 | 29,079 |
Deferred revenue | 9,964 | 9,701 |
Long-term debt | 6,700 | 6,700 |
Other liabilities | 11,871 | 10,484 |
Total Liabilities | 64,348 | 55,964 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Preferred stock, $0.001 par value, 10,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2016 and December 31, 2015. | 0 | 0 |
Common stock, $0.01 par value, 300,000,000 shares authorized; 45,678,564 and 45,581,662 shares issued; and 45,624,695 and 45,485,294 shares outstanding as of June 30, 2016 and December 31, 2015. | 456 | 455 |
Additional paid-in capital | 300,578 | 297,781 |
Treasury stock, 0 shares as of June 30, 2016 and 35,523 shares at a cost of $1.20 per share as of December 31, 2015. | 0 | (42) |
Accumulated other comprehensive income | 0 | 0 |
Accumulated deficit | (123,452) | (128,063) |
Total Stockholders’ Equity | 177,582 | 170,131 |
Total Liabilities and Stockholders’ Equity | $ 241,930 | $ 226,095 |
Condensed Consolidated Balance4
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 45,678,564 | 45,581,662 |
Common stock, shares outstanding (in shares) | 45,624,695 | 45,485,294 |
Treasury stock (in shares) | 0 | 35,523 |
Treasury stock, cost (in dollars per share) | $ 0 | $ 1.20 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 4,611 | $ 5,550 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for doubtful accounts | 261 | 389 |
Reserve for product returns | 1,008 | 763 |
Amortization for patents and tooling | 364 | 124 |
Amortization and depreciation | 3,204 | 2,866 |
Amortization of debt issuance costs | 54 | 54 |
Deferred income taxes | (998) | (2,125) |
Change in fair value of contingent liability | (190) | 70 |
Undistributed losses from equity investees | 45 | 188 |
Stock-based compensation | 1,794 | 1,389 |
Other, net | 0 | (76) |
Changes in operating assets and liabilities (net of business acquisition): | ||
Accounts receivable | (7,422) | (7,447) |
Inventory | (2,978) | (1,416) |
Other assets | (1,510) | (1,171) |
Accounts payable, accrued expenses and other current liabilities | 7,268 | 7,367 |
Deferred revenue | 393 | 351 |
Other liabilities | 1,577 | 840 |
Cash flows from operating activities | 7,481 | 7,716 |
Cash flows used in investing activities: | ||
Business acquisition, net of cash acquired | 0 | (5,632) |
Additions to property and equipment | (4,564) | (2,012) |
Investment in cost method investee | (139) | (54) |
Issuances of notes receivable | (73) | (219) |
Repayments of notes receivable | 2,441 | 0 |
Purchases of licenses to patents | 0 | (1,000) |
Cash flows used in investing activities | (2,335) | (8,917) |
Cash flows from / (used in) financing activities: | ||
Payments of long-term consideration for business acquisitions | (217) | 0 |
Dividends paid to common stockholders | 0 | (1,013) |
Dividends paid to employees for unvested shares | 0 | (57) |
Dividends paid to redeemable convertible preferred stockholders | 0 | (18,930) |
Payments of offering costs | 0 | (1,205) |
Repurchases of common stock | (9) | (1) |
Proceeds from early exercise of stock options | 0 | 124 |
Issuances of common stock from equity-based plans | 427 | 184 |
Tax windfall benefit from stock options | 459 | 410 |
Cash flows from / (used in) financing activities | 660 | (20,488) |
Net increase / (decrease) in cash and cash equivalents | 5,806 | (21,689) |
Cash and cash equivalents at beginning of the period | 128,358 | 42,572 |
Cash and cash equivalents at end of the period | 134,164 | 20,883 |
Supplemental disclosure of noncash investing and financing activities: | ||
Cash not yet paid for business acquisitions | 200 | 834 |
Contingent liability from business acquisition | 40 | 630 |
Cash not yet paid for capital expenditures | 345 | 112 |
Deferred offering costs in accounts payable, accrued expenses and other current liabilities | $ 0 | $ 1,340 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Equity - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In- Capital | Treasury Stock | Accumulated Deficit |
Balance (in shares) at Dec. 31, 2015 | 45,485,294 | 0 | 45,485,000 | |||
Balance at Dec. 31, 2015 | $ 170,131 | $ 0 | $ 455 | $ 297,781 | $ (42) | $ (128,063) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued in connection with equity based plans (in shares) | 99,000 | |||||
Common stock issued in connection with equity based plans | 427 | $ 1 | 426 | |||
Vesting of common stock subject to repurchase (in shares) | 41,000 | |||||
Vesting of common stock subject to repurchase | 160 | $ 0 | 160 | |||
Stock-based compensation expense | 1,794 | 1,794 | ||||
Tax benefit from stock options, net | 459 | 459 | ||||
Retirement of treasury stock | 0 | (42) | 42 | |||
Net income | $ 4,611 | 4,611 | ||||
Balance (in shares) at Jun. 30, 2016 | 45,624,695 | 0 | 45,625,000 | |||
Balance at Jun. 30, 2016 | $ 177,582 | $ 0 | $ 456 | $ 300,578 | $ 0 | $ (123,452) |
Organization
Organization | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Alarm.com Holdings, Inc. (referred to herein as “Alarm.com”, the “Company”, or “we”) is the leading platform solution for the connected home. Through our cloud-based services, we make connected home technology broadly accessible to millions of home and business owners. Our multi-tenant software-as-a-service (“SaaS”) platform enables home and business owners to intelligently secure their properties and automate and control a broad array of connected devices through a single, intuitive interface. Our solutions are delivered through an established network of over 6,000 trusted service providers, who are experts at designing, selling, installing and supporting our solutions. Our four primary solutions are interactive security, intelligent automation, video monitoring and energy management, which can be used individually or integrated into a single user interface. We derive revenue from the sale of our SaaS solutions over an integrated platform, license fees, hardware, activation fees and other revenue. Our fiscal year ends on December 31 st . |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Basis of Presentation The accompanying unaudited condensed consolidated financial statements include our accounts and those of our majority-owned and controlled subsidiaries after elimination of intercompany accounts and transactions. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, they do not include all the information and footnotes required by GAAP for annual financial statements. They should be read together with our audited consolidated financial statements and related notes thereto for the year ended December 31, 2015 appearing in our Annual Report on Form 10-K filed on February 29, 2016 with the SEC. The condensed consolidated balance sheet data as of December 31, 2015 was derived from our audited financial statements, but does not include all disclosures required by GAAP for annual financial statements. In the opinion of management, these condensed consolidated financial statements include all normal recurring adjustments necessary for a fair statement of the results of operations, financial position and cash flows. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results that can be expected for our entire fiscal year ending December 31, 2016 . Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Our estimates, judgments and assumptions are continually evaluated based on available information and experience. Because the use of estimates is inherent in the financial reporting process, actual results could differ from our estimates. Estimates are used when accounting for revenue recognition, allowances for doubtful accounts receivable, allowance for hardware returns, estimates of obsolete inventory, long-term incentive compensation, stock-based compensation, income taxes, legal reserves, contingent consideration liability, goodwill and intangible assets. Recent Accounting Pronouncements Adopted On September 25, 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments,” which requires entities to apply the guidance prospectively to adjustments to provisional amounts that occur after the effective date. Under the previous guidance, the acquirer would retrospectively adjust provisional amounts recognized as of the acquisition date with a corresponding adjustment to goodwill. Adjustments were required when new information was obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts initially recognized or would have resulted in the recognition of additional assets or liabilities. The amendments in ASU 2015-16 eliminate the requirement to retrospectively account for those adjustments. The amendment is effective for annual periods, including periods within those annual periods beginning after December 15, 2015 with early adoption permitted. We adopted this pronouncement prospectively in the first quarter of 2016, and it did not have an impact on our financial statements. On April 15, 2015, the FASB issued ASU 2015-05, “ Intangibles - Goodwill and Other - Internal- Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” which clarifies the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance as to whether an arrangement includes the sale or license of software. The amendment requires a customer to determine whether a cloud computing arrangement contains a software license. If the arrangement contains a software license, the customer would account for the fees related to the software license element in a manner consistent with how the acquisition of other software licenses is accounted for under Accounting Standards Codification ("ASC") 350-40; if the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. The guidance will not change GAAP for a customer’s accounting for service contracts. The amendment is effective for annual periods, including periods within those annual periods beginning after December 31, 2015 with early adoption permitted. We elected to adopt the amendments prospectively to all arrangements entered into or materially modified after the effective date. We adopted this pronouncement in the first quarter of 2016, and it did not have an impact on our financial statements. On February 18, 2015, the FASB issued ASU 2015-02, “ Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which requires an entity to evaluate whether it should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The amendment modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs"). The amendment eliminates the presumption that a general partner should consolidate a limited partnership. The amendment affects the consolidation analysis of reporting entities that are involved with VIEs particularly those that have fee arrangements and related party relationships. The amendment also provides a scope exception from consolidation guidance for reporting entities that comply with the requirements for registered money market funds. We adopted this pronouncement in the first quarter of 2016, and it did not have an impact on our financial statements. On June 19, 2014, the FASB issued ASU 2014-12, “ Compensation - Stock Compensation (Topic 718),” which affects any entity that grants its employees share-based payments in which the terms of the award stipulate that a performance target that affects vesting could be achieved after the requisite service period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. We adopted this pronouncement in the first quarter of 2016, and it did not have an impact on our financial statements. Not yet adopted On May 9, 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients," and on April 14, 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”. ASU 2016-12 and 2016-10 both amend the guidance in ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is not yet effective. ASU 2016-12 clarifies guidance on assessing collectibility, presentation of sales taxes, noncash consideration, and completed contracts and contract modification within Topic 606. ASU 2016-10 clarifies guidance related to identifying performance obligations and licensing implementation guidance. These updates are effective with the same transition requirements as ASU 2014-09, as amended. We are required to adopt ASU 2014-09 and its amendments in the first quarter of 2018, and we are currently assessing the impact of this pronouncement on our financial statements. On March 30, 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” which simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The update is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted. An entity that elects early adoption must adopt all of the amendments in the same period. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively. An entity may elect to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using either a prospective transition method or a retrospective transition method. We are required to adopt ASU 2016-09 in the first quarter of 2017, and we are currently assessing the impact of this pronouncement on our financial statements. On March 17, 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net)” which amends the guidance in ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is not yet effective. The update clarifies the implementation guidance on principal versus agent considerations. The update is effective with the same transition requirements as ASU 2014-09, as amended. We are required to adopt ASU 2014-09 and its amendments in the first quarter of 2018, and we are currently assessing the impact of this pronouncement on our financial statements. On February 25, 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet. The update also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We are required to adopt ASU 2016-02 in the first quarter of 2019, and we are currently assessing the impact of this pronouncement on our financial statements. On August 12, 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," which defers the effective date for all entities for one year of ASU 2014-09, “ Revenue from Contracts with Customers (Topic 606),” issued on May 28, 2014. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The guidance supersedes the revenue recognition guidance in Topic 605, “Revenue Recognition,” and most industry-specific guidance throughout the Industry Topics of the FASB Accounting Standards Codification. The guidance also supersedes some cost guidance included in Subtopic 605-35, “ Revenue Recognition - Contract-Type and Production-Type Contracts." ASU 2014-09, as amended, is effective for annual periods, and interim periods within those years, beginning after December 31, 2017. An entity is required to apply the amendments using one of the following two methods: (1) retrospectively to each prior period presented with three possible expedients: (a) for completed contracts that begin and end in the same reporting period no restatement is required; (b) for completed contract with variable consideration an entity may use the transaction price at completion rather than restating estimated variable consideration amounts in comparable reporting periods; and (c) for comparable reporting periods before date of initial application reduced disclosure requirements related to transaction price; (2) retrospectively with the cumulative effect of initially applying the amendment recognized at the date of initial application with additional disclosures for the differences of the prior guidance to the reporting periods compared to the new guidance and an explanation of the reasons for significant changes. We are required to adopt ASU 2014-09 and its amendments in the first quarter of 2018, and we are currently assessing the impact of this pronouncement on our financial statements. On July 22, 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which requires entities to measure most inventory "at the lower of cost and net realizable value," thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market (market in this context is defined as one of three different measures). The guidance does not apply to inventories that are measured by using either the last-in, first-out method or the retail inventory method. Under current guidance, an entity subsequently measures inventory at the lower of cost or market, with market defined as replacement cost provided that it is not above the ceiling (net realizable value) or below the floor (net realizable value less an approximately normal profit margin) which is unnecessarily complex. The amendment does not change other guidance on measuring inventory. The amendment is effective for annual periods, including periods within those annual periods beginning after December 15, 2016 with early adoption permitted. We are required to adopt this pronouncement prospectively in the first quarter of 2017, and we are currently assessing the impact of this pronouncement on our financial statements. On August 27, 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements — Going Concern (Subtopic 205-4 0),” which requires management to perform interim and annual assessments regarding conditions or events that raise substantial doubt about a company’s ability to continue as a going concern and to provide related disclosures, if applicable. The amendment is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. We are required to adopt ASU 2014-15 for our 2016 annual reporting period. We do not anticipate that the adoption of this standard will have a material effect on our financial statements. |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net The components of accounts receivable, net are as follows (in thousands): June 30, December 31, 2015 Accounts receivable $ 31,159 $ 24,779 Allowance for doubtful accounts (1,482 ) (1,315 ) Allowance for product returns (2,175 ) (2,116 ) Accounts receivable, net $ 27,502 $ 21,348 We recorded a $0.1 million and a $0.3 million provision for doubtful accounts receivable for the three and six months ended June 30, 2016 , respectively, as compared to $0.1 million and $0.4 million for the same periods in the prior year. We recorded a $0.5 million and a $1.0 million reserve for product returns in our hardware and other revenue for the three and six months ended June 30, 2016 , respectively, as compared to $0.4 million and $0.8 million for the same periods in the prior year. Historically, we have not experienced write-offs for uncollectible accounts or sales returns that have differed significantly from our estimates. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory The components of inventory are as follows (in thousands): June 30, December 31, Raw materials $ 5,756 $ 3,026 Finished goods 3,697 3,448 Total inventory $ 9,453 $ 6,474 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Proposed Acquisition On June 23, 2016, we entered into a definitive agreement to acquire two business units, Connect and Piper, from Icontrol Networks, Inc., ("Icontrol") for a purchase price of approximately $140.0 million , (the "Acquisition"). Connect, based in Redwood City, California, develops and sells a custom, on-premise software platform that powers several service providers' solutions for interactive security and automation including ADT Pulse® which is estimated to have 1.6 million subscribers. Piper, based in Ottawa, Canada, develops and sells a Wi-Fi-enabled video and home automation hub. We expect to fund the proposed Acquisition with a combination of cash on hand and debt available under the 2014 Facility (see Note 11). The proposed Acquisition is subject to customary closing conditions as well as certain events that we cannot control, including regulatory approvals and the closing of the acquisition of Icontrol's Converge business unit by Comcast Cable Communications, LLC, a subsidiary of Comcast Corporation ("Comcast"). Upon completion, the proposed Acquisition is expected to provide us with additional technology infrastructure, key customer relationships and hardware devices intended to complement our platform and help to accelerate innovation. SecurityTrax Acquisition On March 13, 2015 , in accordance with an asset purchase agreement, we completed our purchase of certain assets of HiValley Technology, Inc., (“SecurityTrax”) that constituted a business. SecurityTrax is a provider of SaaS-based customer relationship management software tailored for security system dealers. The consideration included $5.6 million cash paid at closing and $0.4 million of cash not yet paid and established a contingent liability of $0.7 million for earn-out considerations to be paid to the former owners. The agreement also contains $2.0 million in potential payments associated with the continued employment of key employees through March 31, 2018 that will be accounted for as compensation expense over the period. The revenue and net income from SecurityTrax's operations since its acquisition date, March 13, 2015 , were included in the Alarm.com segment for the three and six months ended June 30, 2015 (see Note 16). The following pro forma data has been prepared as if SecurityTrax was included in our historical consolidated statements of operations beginning on January 1, 2015. These pro forma results do not necessarily represent the results that may occur in the future. We have adjusted for amortization expense assuming the fair value adjustments to intangible assets had been applied beginning January 1, 2014. We did not adjust for transaction costs as the transaction costs were recorded in the period of acquisition. We also included adjustments for income taxes associated with these pro forma adjustments. The pro forma adjustments were based on available information and upon assumptions that we believe are reasonable to reflect the impact of these acquisitions on our historical financial information on a supplemental pro forma basis. For the six months ended June 30, 2015, our unaudited pro forma revenue was $98.2 million and our unaudited pro forma net income was $5.5 million . The table below sets forth the consideration paid to SecurityTrax’s sellers and the estimated fair value of the tangible and intangible net assets acquired (in thousands): March 13, 2015 Calculation of Consideration: Cash paid, net of working capital adjustment $ 5,612 Cash not yet paid 400 Contingent consideration liability 700 Total consideration $ 6,712 Estimated Tangible and Intangible Net Assets: Current assets $ 14 Customer relationships 1,699 Developed technology 1,407 Trade name 271 Current liabilities (7 ) Goodwill 3,328 Total estimated tangible and intangible net assets $ 6,712 The $3.3 million goodwill balance reflects the value of acquired workforce and expected synergies from pairing SecurityTrax's solutions to security service providers with our current product offerings. The goodwill will be deductible for tax purposes. We developed our estimate of the fair value of intangible net assets using a multi-period excess earnings method for customer relationships, the relief from royalty method for the developed technology, replacement cost method for the developed technology home page and the relief from royalty method for the trade name. The purchase price allocation presented above was finalized in 2015. Fair Value of Net Assets Acquired and Intangibles In accordance with ASC 805, the assets and liabilities of SecurityTrax we acquired were recorded at their respective fair values as of March 13, 2015 , the date of the acquisition. Customer Relationships We recorded the customer relationships intangible asset separately from goodwill based on determination of the length, strength and contractual nature of the relationship that SecurityTrax shared with its customers. We valued two groups of customer relationships using the multi-period excess earnings method, an income approach. We used several assumptions in the income approach, including revenue growth, operating expenses, charge for contributory assets, and a 22.5% discount rate used to calculate the present value of the cash flows. For the second group of customer relationships, we used the same assumptions in addition to a customer retention rate of 90% . We are amortizing the customer relationships, valued at $1.7 million , on a straight-line basis over a weighted-average estimated useful life of seven years. Developed Technology Developed technology recorded separately from goodwill consists of intellectual property such as proprietary software used internally for revenue producing activities. SecurityTrax’s proprietary software is offered for sale on a SaaS hosted basis to customers. We valued the developed technology by applying the relief from royalty method, an income approach. We used several assumptions in the relief from royalty method, which included revenue growth, a market royalty rate of 25% and a 22.5% discount rate used to the calculate the present value of the cash flows. An additional component of the developed technology, which we refer to as the home page, organized customer data and functioned as the billing and administration tool. We valued the home page component by applying the replacement cost model, a cost approach. We used several assumptions in the replacement cost approach, which included analyzing costs that a company would expect to incur to recreate an asset of equivalent utility. In addition, we made an adjustment for developer’s profit of 30.4% which brought the asset to fair value on an exit-price basis. We are amortizing the developed technology, valued at $1.4 million , on a straight-line basis over a weighted-average estimated useful life of eight years. Contingent Consideration Liability The amount of contingent consideration liability to be paid, up to a maximum of $2.0 million , to the former owners of SecurityTrax will be determined based on revenue and EBITDA of the acquired business for the year ended December 31, 2017. We estimated the fair value of the contingent consideration liability by using a Monte Carlo simulation model for determining projected revenue by using an expected distribution of potential outcomes. The fair value of contingent consideration liability is calculated with thousands of projected revenue outcomes, the results of which are averaged and then discounted to estimate the present value. We used several assumptions including an 8.45% discount rate and a 7.5% revenue risk adjustment. We recorded the contingent consideration, valued at $0.7 million , as a contingent consideration liability in other liabilities in our condensed consolidated balance sheet. At each reporting date we will remeasure the liability and record any changes in general and administrative expense, until we pay the contingent consideration, if any, in the first quarter of 2018. We adjusted the fair value of the contingent consideration liability to less than $0.1 million as of June 30, 2016 using the same method with updated assumptions and forecast, which resulted in $0.1 million and $0.2 million of income for the three and six months ended June 30, 2016 . The fair value of the contingent consideration liability was $0.2 million as of December 31, 2015. For the change in the fair value of the liability from acquisition date through June 30, 2015, we recorded $0.1 million of income in general and administrative expense during the three and six months ended June 30, 2015. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net The following table reflects changes in goodwill by operating segment for the six months ended June 30, 2016 (in thousands): Alarm.com Other Total Balance as of December 31, 2015 $ 24,723 $ — $ 24,723 Goodwill acquired — — — Balance as of June 30, 2016 $ 24,723 $ — $ 24,723 There were no impairments of goodwill recorded during the three and six months ended June 30, 2016 and 2015 . The following table reflects changes in the net carrying amount of the components of intangible assets for the six months ended June 30, 2016 (in thousands): Customer Relationships Developed Technology Trade Name Other Total Balance as of December 31, 2015 $ 4,449 $ 1,486 $ 273 $ 110 $ 6,318 Intangible assets acquired — — — — — Amortization (552 ) (259 ) (63 ) (59 ) (933 ) Balance as of June 30, 2016 $ 3,897 $ 1,227 $ 210 $ 51 $ 5,385 We recorded $0.4 million and $0.9 million of amortization related to our intangible assets for the three and six months ended June 30, 2016 , respectively, as compared to $0.6 million and $1.0 million for the same periods in the prior year. The following tables reflect the weighted average remaining life and carrying value of finite-lived intangible assets as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted- Average Remaining Life Customer relationships $ 10,666 $ (6,769 ) $ 3,897 4.1 Developed technology 5,390 (4,163 ) 1,227 4.4 Trade name 914 (704 ) 210 4.3 Other 234 (183 ) 51 0.4 Total intangible assets $ 17,204 $ (11,819 ) $ 5,385 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted- Average Remaining Life Customer relationships $ 10,666 $ (6,217 ) $ 4,449 4.5 Developed technology 5,390 (3,904 ) 1,486 4.8 Trade name 914 (641 ) 273 4.7 Other 234 (124 ) 110 0.9 Total intangible assets $ 17,204 $ (10,886 ) $ 6,318 The following table reflects the future estimated amortization expense for intangible assets as of June 30, 2016 (in thousands): Year ending December 31, Amortization Remainder of 2016 $ 793 2017 1,400 2018 1,329 2019 579 2020 and thereafter 1,284 Total future amortization expense $ 5,385 |
Investments in Other Entities
Investments in Other Entities | 6 Months Ended |
Jun. 30, 2016 | |
Investments [Abstract] | |
Investments in Other Entities | Investments in Other Entities Cost Method Investment in Connected Home Service Provider We own 20,000 Series A Convertible Preferred Membership Units and 2,667 Series B Convertible Preferred Membership Units of a Brazilian connected home solutions provider, which represents an interest of 12.4% on a fully diluted basis, and was purchased for $0.4 million . On April 15, 2015, we purchased 2,333 Series B-1 Convertible Preferred Membership Units at $23.31 per unit, for a purchase price of $0.1 million , which increased our aggregate equity interest to 12.6% on a fully diluted basis. On April 20, 2016, we purchased an additional 6,904 Series B-1 Convertible Preferred Membership Units at $20.19 per unit, for a purchase prices of $0.1 million , which increased our aggregate equity interest to 14.3% on a fully diluted basis. The entity resells our products and services to residential and commercial customers in Brazil. Based upon the level of equity investment at risk, the connected home service provider is a VIE. We do not control the marketing, sales, installation, or customer maintenance functions of the entity and therefore do not direct the activities of the entity that most significantly impact its economic performance. We have determined that we are not the primary beneficiary of the entity and do not consolidate its financial results into ours. We account for this investment using the cost method. As of June 30, 2016 and December 31, 2015 , the fair value of this cost method investment was not estimated as there were no events or changes in circumstances that may have had a significant adverse effect on the fair value of the investment. The investment is included in other assets in our condensed consolidated balance sheets and was $0.6 million as of June 30, 2016 and $0.4 million as of December 31, 2015 . Investments in and Loans to an Installation Partner We own 48,190 common units of an installation partner which represents an interest of 48.2% on a fully diluted basis, and was purchased for $1.0 million . The entity performs installation services for security dealers, as well as subsidiaries reported in our Other segment. Based upon the level of equity investment at risk, we determined that the installation partner was not a VIE. We accounted for this investment under the equity method because we have the ability to exercise significant influence over the operating and financial policies of the entity. Under the equity method, we recognize our share of the earnings or losses of the installation partner in other income / (expense), net in our condensed consolidated statements of operations in the periods they are reported by the installation partner. In September 2014, we loaned $0.3 million to our installation partner under a secured promissory note that accrues interest at 8.0% per annum. The note receivable is included in other current assets in our condensed consolidated balance sheets and was $0.1 million as of June 30, 2016 and December 31, 2015 . Interest is payable monthly with the entire principal balance plus accrued but unpaid interest due at maturity in September 2016. This event did not cause us to reconsider our conclusion that the installation partner has sufficient equity investment at risk and therefore was not a VIE. We continued to account for the investment under the equity method. In the fourth quarter of 2015, accumulated operating losses at our installation partner exceeded its equity contributions, and we began to record 100% of its net losses, which amounted to $0.2 million , against our $0.3 million note receivable. On December 11, 2015, we purchased an additional 9,290 common units of the same company for $0.2 million , which did not change our proportional share of ownership interest. This event caused us to reconsider our conclusion that the installation partner has sufficient equity investment at risk and we now consider the installation partner to be a VIE. We do not control the ability to obtain funding, the annual operating plan, marketing, sales or cash management functions of the entity and therefore, do not direct the activities of the entity that most significantly impact its economic performance. We have determined that we are not the primary beneficiary of our installation partner and do not consolidate its financial results into ours. We continue to account for the investment under the equity method. Due to this investment, the investment partner received additional equity contributions, and we returned to recording our share of its earnings or losses against our investment. We recorded our share of the installation partner's loss in other income / (expense), net in our condensed consolidated statements of operations, which was less than $0.1 million for the three and six months ended June 30, 2016 as compared to $0.1 million and $0.2 million for the same periods in the prior year. Our $1.2 million investment, net of equity losses, is included in other assets in our condensed consolidated balance sheets and was $0.1 million as of June 30, 2016 and December 31, 2015 . Investments in and Loans to a Platform Partner We have invested in the form of loans and equity investment in a platform partner which produces connected devices to provide it with the capital required to bring its devices to market and integrate them onto our connected home platform. In 2013, we paid $3.5 million in cash to purchase 3,548,820 shares of our platform partner’s Series A convertible preferred shares, or an 18.7% interest on as-converted and fully diluted basis. In 2014, we entered into a Series 1 Preferred Stock purchase agreement with the platform partner and another investor. The other investor invested cash to purchase shares of the platform partner’s Series 1 Preferred Stock. As a result of the purchase, our 3,548,820 shares of Series A convertible preferred shares converted into 3,548,820 shares of common stock, and we now hold an 8.6% interest in the platform partner on an as converted and fully diluted basis. In conjunction with the transaction, we received a $2.5 million dividend that we recorded as a return of investment as it was in excess of the accumulated earnings and profits of the investee since the date of the investment. Based upon the level of equity investment at risk, the platform partner is a VIE. We have concluded that we are not the primary beneficiary of the platform partner VIE. We do not control the product design, software development, manufacturing, marketing, or sales functions of the platform partner and therefore, we do not direct the activities of the platform partner that most significantly impact its economic performance. We account for this investment under the cost method. As of June 30, 2016 and December 31, 2015 , the fair value of this cost method investment was not estimated as there were no events or changes in circumstances that may have had a significant adverse effect on the fair value of the investment. As of June 30, 2016 and December 31, 2015 , our $1.0 million cost method investment in a platform partner was recorded in other assets in our condensed consolidated balance sheets. |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Patent Licenses From time to time, we enter into agreements to license patents. We have $3.3 million in patent licenses related to such agreements. We are amortizing the patent licenses over the estimated useful lives of the patents, which range from three to eleven years. The net balance as of June 30, 2016 and December 31, 2015 was $1.9 million and $2.2 million . Amortization expense on patent licenses was $0.1 million and $0.3 million for the three and six months ended June 30, 2016 , as compared to $0.1 million for both the three and six months ended June 30, 2015 . Amortization expense on patent licenses is included in cost of SaaS and license revenue in our condensed consolidated statements of operations. Loan to a Distribution Partner In 2013, we entered into a revolving loan agreement with a distribution partner. The distribution partner is also a service provider with whom we have a standard agreement to resell our connected home service and hardware. We had evaluated that our distribution partner had good credit quality through a credit review at the inception of the arrangement and by evaluating risk indications during the repayment period. Under the terms of the revolving loan agreement, we had agreed to loan our distribution partner up to $2.8 million , with the proceeds of the loan to be used to finance the creation of new customer accounts that use our products and services. The amount that our distribution partner could draw down on the loan was based on the number of its qualifying new customer accounts created each month. The loan accrued interest at a rate of 8.0% per annum, and required monthly interest payments, with the entire principal balance due on the loan maturity date, July 24, 2018. The balance outstanding under the loan was collateralized by the customer accounts owned by our distribution partner, as well as all of the physical assets and accounts receivable associated with those customer accounts. During the first quarter of 2016, our distribution partner repaid the loan and the revolving loan agreement was subsequently terminated. We received $2.4 million of cash, representing the entire balance outstanding and the accrued interest at the termination date. There was no outstanding balance as of June 30, 2016 . As of December 31, 2015 , our distribution partner's outstanding balance was $2.4 million and the note receivable was included in other assets on our condensed consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents our assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 (in thousands): Fair Value Measurements on a Recurring Basis as of Fair Value Measurements in: Level 1 Level 2 Level 3 Total Assets: Money market account $ 129,619 $ — $ — $ 129,619 Total $ 129,619 $ — $ — $ 129,619 Liabilities: Subsidiary unit awards $ — $ — $ 834 $ 834 Contingent consideration liability from acquisition — — 40 40 Total $ — $ — $ 874 $ 874 Fair Value Measurements on a Recurring Basis as of Fair Value Measurements in: Level 1 Level 2 Level 3 Total Assets: Money market account $ 122,818 $ — $ — $ 122,818 Total $ 122,818 $ — $ — $ 122,818 Liabilities: Subsidiary unit awards $ — $ — $ 532 $ 532 Contingent consideration liability from acquisition — — 230 230 Total $ — $ — $ 762 $ 762 The following table summarizes the change in fair value of the Level 3 liability for the three months ended June 30, 2016 (in thousands): Fair Value Measurements Beginning balance as of March 31, 2016 $ 720 Obligations assumed — Transfers — Payments — Realized (gain) / loss — Unrealized loss 154 Ending Balance as of June 30, 2016 $ 874 The following table summarizes the change in fair value of the Level 3 liability for the six months ended June 30, 2016 (in thousands): Fair Value Measurements Beginning balance as of December 31, 2015 $ 762 Obligations assumed — Transfers — Payments — Realized (gain) / loss — Unrealized loss 112 Ending Balance as of June 30, 2016 $ 874 The money market account is included in our cash and cash equivalents in our condensed consolidated balance sheets. Our money market assets are valued using quoted prices in active markets. The liability for the subsidiary unit awards relates to agreements established with three employees for cash awards contingent upon the subsidiary companies meeting certain financial milestones such as revenue, working capital, EBITDA and EBITDA margin. We established liabilities for the future payment of the repurchase of subsidiary units under the terms of the agreements by estimating revenue, working capital, EBITDA and EBITDA margin of the subsidiary units over the periods of the three awards through the anticipated repurchase dates. We estimated the fair value of each liability by using a Monte Carlo simulation model for determining each of the projected measures by using an expected distribution of potential outcomes. The fair value of each liability is calculated with thousands of projected outcomes, the results of which are averaged and then discounted to estimate the present value. At each reporting date until the respective payment dates, we will remeasure these liabilities, using the same valuation approach based on the applicable subsidiary's revenue, an unobservable input, and we will record any changes in general and administrative expense. The liability balances are included in our other liabilities in our condensed consolidated balance sheets (see Note 11). The amount of contingent consideration liability to be paid, up to a maximum of $2.0 million , from our acquisition of SecurityTrax in the first quarter of 2015, will be determined based on revenue and adjusted EBITDA for the year ended December 31, 2017. We estimated the fair value of the contingent consideration liability by using a Monte Carlo simulation model for determining projected revenue by using an expected distribution of potential outcomes. The fair value of contingent consideration liability is calculated with thousands of projected revenue outcomes, the results of which are averaged and then discounted to estimate the present value. At each reporting date until payment in first quarter of 2018, we will remeasure the contingent consideration liability, using the same valuation approach based on our subsidiary’s revenue, an unobservable input, and we will record any changes in general and administrative expense. The contingent consideration liability balance is included in our other liabilities in our condensed consolidated balance sheets (see Note 5). We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. There were no transfers between Levels 1, 2 or 3 during the three and six months ended June 30, 2016 and 2015 . We also monitor the value of the investments for other than temporary impairment on a quarterly basis. No other-than-temporary impairments occurred during the three and six months ended June 30, 2016 and 2015. |
Liabilities
Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Liabilities | Liabilities The components of accounts payable, accrued expenses and other current liabilities are as follows (in thousands): June 30, December 31, Accounts payable $ 21,556 $ 12,813 Accrued expenses 3,553 4,244 Other current liabilities 2,221 2,219 Accounts payable, accrued expenses and other current liabilities $ 27,330 $ 19,276 The components of other liabilities are as follows (in thousands): June 30, December 31, Deferred rent $ 9,347 $ 8,435 Other liabilities 2,524 2,049 Other liabilities $ 11,871 $ 10,484 |
Debt, Commitments and Contingen
Debt, Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Debt, Commitments and Contingencies Disclosure [Abstract] | |
Debt, Commitments and Contingencies | Debt, Commitments and Contingencies The debt, commitments and contingencies described below would require us, or our subsidiaries, to make payments to third parties under certain circumstances. Debt In 2014, we repaid all of the outstanding principal and interest under a previous term loan, which was accounted for as an extinguishment of debt, and replaced it with a $50.0 million revolving credit facility (the “2014 Facility”) with Silicon Valley Bank, as administrative agent, and a syndicate of lenders. We utilized $6.7 million under the 2014 Facility to repay in full our indebtedness under the previous term loan. The 2014 Facility includes an option to increase the borrowing capacity available under the 2014 Facility to $75.0 million with the consent of the lenders. The 2014 Facility is available to us to finance working capital and certain permitted acquisitions and investments, and is secured by substantially all of our assets, including our intellectual property. The principal outstanding under the 2014 Facility is due upon maturity in May 2017. The outstanding principal balance on the 2014 Facility accrues interest at a rate equal to either (1) the Eurodollar Base Rate, or LIBOR, plus an applicable margin based on our consolidated leverage ratio, or (2) the higher of (a) the Wall Street Journal prime rate, and (b) the Federal Funds rate plus 0.50% plus an applicable margin based on our consolidated leverage ratio, or ABR, at our option. Borrowings under LIBOR rates accrue interest at LIBOR plus 2.25% , LIBOR plus 2.5% , and LIBOR plus 2.75% when our consolidated leverage ratio is less than 1.00 :1.00 , greater than or equal to 1.00 :1.00 but less than 2.00 :1.00 , and greater than or equal to 2.00 :1.00 , respectively. Borrowings under ABR rates accrue interest at ABR plus 1.25% , ABR plus 1.5% , and ABR plus 1.75% when our consolidated leverage ratio is less than 1.00 :1.00 , greater than or equal to 1.00 :1.00 but less than 2.00 :1.00 , and greater than or equal to 2.00 :1.00 , respectively. The 2014 Facility also carries an unused line commitment fee of 0.20% to 0.25% depending on our consolidated leverage ratio. For the six months ended June 30, 2016 , the effective interest rate on the 2014 Facility was 2.64% . The carrying value of 2014 Facility was $6.7 million as of June 30, 2016 and December 31, 2015. The 2014 Facility includes a variable interest rate that approximates market and, as such, we determined that the carrying amount of the 2014 Facility approximates its fair value as of June 30, 2016 . On December 7, 2015, we amended the terms of our 2014 Facility. The amendment reduces the rate at which borrowings under LIBOR rates accrue interest to LIBOR plus 2.00% , LIBOR plus 2.25% , and LIBOR plus 2.50% when our consolidated leverage ratio is less than 1.00 :1.00 , greater than or equal to 1.00 :1.00 but less than 2.00 :1.00 , and greater than or equal to 2.00 :1.00 , respectively. Borrowings under ABR rates accrue interest at ABR plus 1.00% , ABR plus 1.25% , and ABR plus 1.50% when our consolidated leverage ratio is less than 1.00 :1.00 , greater than or equal to 1.00 :1.00 but less than 2.00 :1.00 , and greater than or equal to 2.00 :1.00 , respectively. The 2014 Facility contains various financial and other covenants that require us to maintain a maximum consolidated leverage ratio not to exceed 2.50 :1.00 and a consolidated fixed charge coverage ratio of at least 1.25 :1.00 . During the six months ended June 30, 2016 , we were in compliance with all financial and non-financial covenants and there were no events of default. Subsequent Event - Amendment to 2014 Facility On August 10, 2016, with the approval of our board of directors and the consent of the lenders, we increased our current borrowing capacity under the 2014 Facility from $50.0 million to $75.0 million . In addition, we amended the terms of the 2014 Facility to (1) provide for an option to further increase the borrowing capacity to $125.0 million with the consent of the lenders, (2) increase the maximum consolidated leverage ratio from 2:50:1:00 to 3:00:1:00, and (3) extend the maturity date of the 2014 Facility to November 2018. The definition of consolidated adjusted EBITDA was also modified to add back one-time expenses in connection with (1) the Vivint litigation matter, (2) the proposed Acquisition, and (3) compliance with the Hart-Scott-Rodino Antitrust Improvement Act of 1976 not to exceed (1) for all period prior to and including June 30, 2017 in the aggregate, the lesser of (a) $5.0 million and (b) 20% of consolidated adjusted EBITDA and (ii) for all periods after June 30, 2017 in the aggregate, the lesser of (a) $5.0 million and (b) 15% of consolidated adjusted EBITDA. The 2014 Facility is available to us to refinance existing debt and for general corporate and working capital purposes, including financing the proposed Acquisition of two business units from Icontrol and other acquisitions as permitted under the terms of the 2014 Facility. The carrying value of the 2014 Facility was $6.7 million as of June 30, 2016 and was classified as a long-term liability in our condensed consolidated balance sheets. Commitments and Contingencies Repurchase of Subsidiary Units In 2012, we formed a subsidiary to develop and market home and commercial energy management devices and services. We granted an award of subsidiary stock to the founder and president. The terms of the award for the founder, who is also our employee, require a payment in cash on either the third or the fourth anniversary from the date the subsidiary first makes its products and services commercially available, which was determined to be April 1, 2014. The vesting of the award is based on the subsidiary meeting certain minimum financial targets. We recorded a liability of zero and $0.1 million related to this commitment in other liabilities in our condensed consolidated balance sheets as of June 30, 2016 and December 31, 2015 . In 2011, we formed a subsidiary that offers to professional residential property management and vacation rental management companies technology solutions for remote monitoring and control of properties, including access control and energy management. Since its formation, we granted awards of subsidiary stock to two employees, a key employee and the president who is also the founder. The terms of the awards required a payment in cash on a date between the fourth and sixth anniversary of the date that the subsidiary’s products and services first become commercially available, which was determined to be June 1, 2013. The vesting of the awards are based on the subsidiary meeting certain minimum financial targets. We recorded a liability of $0.8 million and $ 0.5 million related to these commitments in other liabilities in our condensed consolidated balance sheets as of June 30, 2016 and December 31, 2015 . At each reporting date until the respective payment dates, we will remeasure these liabilities, and we will record any changes in fair value in general and administrative expense. The liability balances are included in our other liabilities in our condensed consolidated balance sheets (see Note 9). Leases We lease office space and office equipment under non-cancelable operating leases with various expiration dates through 2026. In August 2014, we signed a lease for new office space in Tysons, Virginia, where we relocated our headquarters in February 2016. This lease term ends in 2026 and includes a five -year renewal option, an $8.0 million tenant improvement allowance and scheduled rent increases. In May 2016, we entered into an amendment to this lease which provides for approximately 29,857 square feet of additional office space and an additional $1.7 million in tenant improvement allowances. We will take possession of the additional space on January 1, 2017 and we are allowed to utilize the tenant improvement allowance for design prior to moving into the space. As of June 30, 2016 , we have utilized $6.2 million of our total $9.7 million tenant improvement allowance. Rent expense was $1.2 million and $2.5 million for the three and six months ended June 30, 2016 and $1.2 million and $2.4 million for the same periods in the prior year. Indemnification Agreements We have various agreements that may obligate us to indemnify the other party to the agreement with respect to certain matters. Generally, these indemnification provisions are included in contracts arising in the normal course of business. Although we cannot predict the maximum potential amount of future payments that may become due under these indemnification agreements, we do not believe any potential liability that might arise from such indemnity provisions is probable or material. Letters of Credit As of June 30, 2016 , we had outstanding letters of credit under our 2014 Facility to our manufacturing partners in the amount of $0.8 million . As of December 31, 2015 , we had no letters of credit outstanding under our 2014 Facility. Legal Proceedings On June 2, 2015, Vivint, Inc., or Vivint, filed a lawsuit against us in U.S. District Court, District of Utah, alleging that our technology directly and indirectly infringes six patents that Vivint purchased. Vivint is seeking permanent injunctions, enhanced damages and attorney’s fees. We answered the complaint on July 23, 2015. Among other things, we asserted defenses based on non-infringement and invalidity of the patents in question. Should Vivint prevail on its claims that one or more elements of our solution infringe one or more of its patents, we could be required to pay damages of Vivint’s lost profits and/or a reasonable royalty for sales of our solution, enjoined from making, using and selling our solution if a license or other right to continue selling such elements is not made available to us or we are unable to design around such patents, and required to pay ongoing royalties and comply with unfavorable terms if such a license is made available to us. The outcome of the legal claim and proceeding against us cannot be predicted with certainty. We believe we have valid defenses to Vivint’s claims. Based on currently available information, we determined a loss is not probable or reasonably estimable at this time. On December 30, 2015, a putative class action lawsuit was filed against us in the U.S. District Court for the Northern District of California, alleging violations of the Telephone Consumer Protection Act, or TCPA. The complaint does not allege that Alarm.com violated the TCPA, but instead seeks to hold us responsible for the marketing activities of our service providers under principles of agency and vicarious liability. The complaint seeks monetary damages under the TCPA, injunctive relief, and other relief, including attorney’s fees. We answered the complaint on February 26, 2016. On March 24, 2016, we filed a motion to transfer the matter to the U.S. District Court for the Northern District of West Virginia to be consolidated with 23 other similar and related pending TCPA actions. That motion was denied on June 2, 2016. Discovery has commenced, and the matter remains pending in the U.S. District Court for the Northern District of California. Based on currently available information, we determined a loss is not probable or reasonably estimable at this time. On February 9, 2016, we were sued along with one of our service providers in the Circuit Court for the City of Virginia Beach, Virginia by the estate of a deceased service provider customer alleging wrongful death, among other claims. The suit seeks a total of $7 million in compensatory damages and $350,000 in punitive damages. We filed our answer on March 22, 2016. Discovery has commenced, and the matter remains pending. Based on currently available information, we determined a loss is not probable or reasonably estimable at this time. From time to time, we may be a party to litigation and subject to claims incident to the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business. Other than the preceding matters, we are not a party to any lawsuit or proceeding that, in the opinion of management, is reasonably possible or probable of having a material adverse effect on our financial position, results of operations or cash flows. We reserve for contingent liabilities based on ASC 450, “ Contingencies ,” when it is determined that a liability, inclusive of defense costs, is probable and reasonably estimable. Litigation is subject to many factors that are difficult to predict, so there can be no assurance that, in the event of a material unfavorable result in one or more claims, we will not incur material costs. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Options We issue stock options pursuant to our 2015 Equity Incentive Plan (the "2015 Plan"). The 2015 Plan allows for the grant of incentive stock options to employees and for the grant of nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance-based stock awards, and other forms of equity compensation to our employees, directors and non-employee directors and consultants. In June 2015, our board of directors adopted and our stockholders approved our 2015 Plan pursuant to which we initially reserved a total of 4,700,000 shares of common stock for issuance under the 2015 Plan, which included shares of our common stock previously reserved for issuance under our Amended and Restated 2009 Stock Incentive Plan (the "2009 Plan"). The number of shares of common stock reserved for issuance under the 2015 Plan will automatically increase on January 1 each year, for a period of not more than ten years, commencing on January 1, 2016 through January 1, 2024, by 5% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares as may be determined by the board of directors. As a result of the adoption of the 2015 Plan, no further grants may be made under the 2009 Plan. As of June 30, 2016 , 6,445,217 shares remained available for future grant under the 2015 Plan. Stock options under the 2015 Plan have been granted at exercise prices based on the closing price of our common stock on the date of grant. Stock options under the 2009 Plan were granted at exercise prices as determined by the board of directors to be the fair market value of our common stock. Our stock options generally vest over a five -year period and each option, if not exercised or terminated, expires on the ten th anniversary of the grant date. Certain stock options granted under the 2015 Plan and previously granted under the 2009 Plan may be exercised before the options have vested. Unvested shares issued as a result of early exercise are subject to repurchase by us upon termination of employment or services at the original exercise price. The proceeds from the early exercise of stock options are initially recorded as a current liability and are reclassified to common stock and additional paid-in capital as the awards vest and our repurchase right lapses. There were 53,869 and 96,368 unvested shares of common stock outstanding subject to our right of repurchase as of June 30, 2016 and December 31, 2015 . We repurchased 1,924 unvested shares of common stock related to early exercised stock options in connection with employee terminations during both the three and six months ended June 30, 2016 and we repurchased 287 unvested shares of common stock during the same periods in the prior year. As of June 30, 2016 and December 31, 2015 , we recorded $0.2 million and $0.4 million in accounts payable, accrued expenses and other current liabilities on our condensed consolidated balance sheets for the proceeds from the early exercise of the unvested stock options. Included in the stock-based compensation expense for the three and six months ended June 30, 2015 was $0.8 million related to the cash settlement of recently exercised stock options of a terminated employee, at the company's election. We accounted for this cash settlement as a liability modification of the stock option awards. We account for stock-based compensation awards based on the fair value of the award as of the grant date. We recognize stock-based compensation expense using the accelerated attribution method, net of estimated forfeitures, in which compensation cost for each vesting tranche in an award is recognized ratably from the service inception date to the vesting date for that tranche. The following table summarizes the components of non-cash stock-based compensation expense for the three and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Stock options $ 923 $ 656 $ 1,757 $ 1,196 Employee stock purchase plan 19 — 37 — Compensation related to the sale of common stock — 172 — 193 Compensation related to the cash settlement of stock options — 777 — 777 Total stock-based compensation expense $ 942 $ 1,605 $ 1,794 $ 2,166 Tax benefit from equity-based plans $ 165 $ 396 $ 459 $ 241 Stock-based compensation expense is included in the following line items in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Sales and marketing $ 151 $ 86 $ 292 $ 146 General and administrative 236 1,226 463 1,520 Research and development 555 293 1,039 500 Total stock-based compensation expense $ 942 $ 1,605 $ 1,794 $ 2,166 There were 576,300 and 482,276 stock options granted during the six months ended June 30, 2016 and 2015 . We declared and paid dividends in June 2015 in anticipation of our IPO, which we closed on July 1, 2015. Subsequent to the IPO, we do not expect to declare or pay dividends on a recurring basis. As such, we assume that the dividend rate is zero. The following table summarizes the assumptions used for estimating the fair value of stock options granted during the three and six months ended June 30, 2016 and 2015 : Three Months Ended Six Months Ended 2016 2015 2016 2015 Volatility 48.3 - 50.6% 48.5 - 51.8% 48.3 - 50.6% 48.5 - 51.8% Expected term 5.6 - 6.3 years 4.5 - 5.7 years 5.6 - 6.3 years 4.5 - 5.7 years Risk-free interest rate 1.3 - 1.4% 1.3 - 1.6% 1.3 - 1.4% 1.3 - 1.6% Dividend rate — % — % — % — % The following table presents stock option activity for the six months ended June 30, 2016 : Number of Options Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2015 3,547,913 $ 4.17 6.6 $ 44,411 Granted 576,300 16.41 Exercised (80,121 ) 2.17 1,470 Forfeited (79,035 ) 9.08 Expired — — Outstanding as of June 30, 2016 3,965,057 $ 5.89 6.6 $ 78,277 Vested and expected to vest as of June 30, 2016 3,893,776 $ 5.79 6.5 $ 77,240 Exercisable as of June 30, 2016 2,386,241 $ 2.69 5.3 $ 54,752 The weighted average grant date fair value for our stock options granted during the six months ended June 30, 2016 and 2015 was $8.08 and $5.59 . The total fair value of stock options vested during the six months ended June 30, 2016 and 2015 was $1.2 million and $0.8 million . The aggregate intrinsic value of stock options exercised during the six months ended June 30, 2016 and 2015 was $1.5 million and $2.0 million . As of June 30, 2016 , the total compensation cost related to nonvested awards not yet recognized was $5.5 million , which will be recognized over a weighted average period of 2.2 years. Employee Stock Purchase Plan Our board of directors adopted our 2015 Employee Stock Purchase Plan ("2015 ESPP") in June 2015. As of June 30, 2016 , 1,637,111 shares have been reserved for future grant under the 2015 ESPP, with provisions established to increase the number of shares available on January 1 of each subsequent year for nine years. The annual automatic increase in the number of shares available for issuance under the 2015 ESPP is the lesser of 1% of each class of common stock outstanding as of December 31 of the preceding fiscal year, 1,500,000 shares of common stock, or such lesser number as determined by the board of directors. The 2015 ESPP allows eligible employees to purchase shares of our common stock at 90% of the fair market value, rounded up to the nearest cent, based on the closing price of our common stock on the purchase date. The maximum number of shares of our common stock that a participant may purchase during any calendar year shall not exceed such number of shares having a fair market value equal to the lesser of $15,000 or 10% of the participant's base compensation for that year. The 2015 ESPP is considered compensatory for purposes of stock-based compensation expense due to the 10% discount on the fair market value of our common stock. For the six months ended June 30, 2016 , an aggregate of 18,705 shares were purchased by employees during our first offering period which ended on February 15, 2016. We recognized less than $0.1 million of compensation expense for the three and six months ended June 30, 2016 . The first enrollment period was subsequent to June 30, 2015, therefore, we recorded no compensation expense for the three and six months ended June 30, 2015 . Compensation expense is recognized for the amount of the discount, net of forfeitures, over the purchase period, based on the monthly closing price of our common stock as an estimate of the final purchase price for the period. This estimate is adjusted at each reporting period until the purchase is finalized. Warrants On March 30, 2015, we issued performance-based warrants to two employees, which give these individuals the right to purchase up to 54,694 shares of our common stock in the aggregate if certain performance targets are achieved. The performance-based warrants, each for 27,347 shares of our common stock, have an exercise price of $10.97 per share and we may elect to terminate the warrants in exchange for a one-time cash settlement in the event we have a change in control. If the warrants become exercisable, the number of shares that become exercisable which cannot exceed 27,347 shares for each warrant, is based upon the achievement of certain minimum annual revenue targets. These warrants will expire upon the earlier of March 2025 or the date upon which the holder of the warrant is no longer our employee or an employee of an affiliate of ours. We believe that the achievement of the minimum annual revenue targets is probable, and we began recognizing expense related to these performance-based warrants as of April 1, 2015. These warrants were no t exercisable as of June 30, 2016 and December 31, 2015 because the performance requirements had not been met. We recorded less than $0.1 million of expense associated with the performance-based warrants during the three and six months ended June 30, 2016 and 2015. Sale of Common Stock Subscriptions In 2013, we sold 238,500 shares of our common stock to one of our executive officers for $0.7 million , or $2.95 per share, an amount below fair value. Under the terms of the sale, we had the right to repurchase the shares for $2.95 per share subject to certain triggering events prior to April 2, 2017. Our repurchase right expired on July 1, 2015 , the date of the closing of our IPO. The excess of the fair value over the sale price was being recorded to stock-based compensation expense, on a straight-line basis, over the four -year term of the repurchase agreement. In 2015, we recognized the remaining unamortized expense upon the expiration of our repurchase right. For the three and six months ended June 30, 2015 , we recognized $0.2 million related to this sale in general and administrative expense in our condensed consolidated statement of operations. No expense was recognized related to this sale for the three and six months ended June 30, 2016 . |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic and Diluted Earnings Per Share ("EPS") The components of basic and diluted EPS are as follows (in thousands, except share and per share amounts): Three Months Ended Six Months Ended 2016 2015 2016 2015 Net income $ 1,873 $ 2,509 $ 4,611 $ 5,550 Less: dividends paid to participating securities — (18,987 ) — (18,987 ) Net income / (loss) attributable to common stockholders (A) $ 1,873 $ (16,478 ) $ 4,611 $ (13,437 ) Weighted average common shares outstanding — basic (B) 45,602,061 2,706,369 45,564,059 2,671,783 Dilutive effect of stock options 1,921,126 — 1,841,452 — Weighted average common shares outstanding — diluted (C) 47,523,187 2,706,369 47,405,511 2,671,783 Net income / (loss) per share: Basic (A/B) $ 0.04 $ (6.09 ) $ 0.10 $ (5.03 ) Diluted (A/C) $ 0.04 $ (6.09 ) $ 0.10 $ (5.03 ) The following securities have been excluded from the calculation of diluted weighted average common shares outstanding because the effect is anti-dilutive for the three and six months ended June 30, 2016 and 2015 : Three Months Ended Six Months Ended 2016 2015 2016 2015 Redeemable convertible preferred stock: Series A — 1,998,257 — 1,998,257 Series B — 1,809,685 — 1,809,685 Series B-1 — 82,934 — 82,934 Stock options 119,750 507,375 617,072 588,675 Common stock subject to repurchase 53,869 156,009 53,869 156,009 |
Significant Service Providers
Significant Service Providers | 6 Months Ended |
Jun. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Significant Service Providers | Significant Service Providers During the three and six months ended June 30, 2016 , our 10 largest revenue service providers accounted for 59.9% and 60.5% of our revenue, respectively, as compared to 64.2% and 63.6% for the same periods in the prior year. One of our service providers individually represented greater than 10% but not more than 15% of our revenue for the three and six months ended June 30, 2016 . Two of our service providers individually represented greater than 10% but not more than 20% of our revenue for the three months ended June 30, 2015 . One service provider individually represented greater than 15% but not more than 20% of our revenue for the six months ended June 30, 2015 . Trade accounts receivable from one service provider totaled $2.8 million as of June 30, 2016 . No other individual service provider represented more than 10% of accounts receivable as of June 30, 2016 . Trade accounts receivable from two service providers totaled $ 3.1 million and $ 2.7 million as of December 31, 2015 . No other individual service provider represented more than 10% of accounts receivable as of December 31, 2015 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For purposes of interim reporting, our annual effective income tax rate is estimated in accordance with ASC 740-270, "Interim Reporting." This rate is applied to the pre-tax book income of the entities expected to be benefited during the year. Discrete items that impact the tax provision were recorded in the period incurred. Our effective income tax rates were 34.3% and 35.8% for the three and six months ended June 30, 2016 , respectively, as compared to 39.9% and 40.1% for the same periods in the prior year. Our effective tax rate differs from the statutory rate primarily due to the impact of state taxes and nondeductible meal and entertainment expenses, offset by the research and development tax credit. We recognize a valuation allowance if, based on the weight of available evidence, both positive and negative, it is more likely than not that some portion, or all, of the net deferred tax assets will not be realized. Based on our historical and expected future taxable earnings, we believe it is more likely than not that we will realize all of the benefit of the existing deferred tax assets as of June 30, 2016 and December 31, 2015 . Accordingly, we have not recorded a valuation allowance as of June 30, 2016 and December 31, 2015 . We apply guidance for uncertainty in income taxes that requires the application of a more likely than not threshold to the recognition and de-recognition of uncertain tax positions. If the recognition threshold is met, this guidance permits us to recognize a tax benefit measured at the largest amount of the tax benefit that, in our judgment, is more likely than not to be realized upon settlement. For the three and six months ended June 30, 2016 , we recorded an unrecognized tax benefit of less than $ 0.1 million related to research and development tax credits for the 2016 tax year. For the three and six months ended June 30, 2015, we recorded interest for the period on prior year research and development tax credits we claimed. Our liability for uncertain tax positions was $0.6 million and $0.5 million as of June 30, 2016 and December 31, 2015 . |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have two reportable segments: • Alarm.com segment • Other segment Our chief operating decision maker is our chief executive officer. Management determined the operational data used by the chief operating decision maker is that of the two reportable segments. Management bases strategic goals and decisions on these segments and the data presented below is used to measure financial results. Our Alarm.com segment represents our cloud-based platform for the connected home and related solutions. Our Alarm.com segment also includes SecurityTrax, a provider of SaaS-based, customer relationship management software tailored for security system dealers. This segment contributed 95% and 94% of our revenue for the three and six months ended June 30, 2016 and 97% and 97% for the same periods in the prior year. Our Other segment is focused on researching and developing home and commercial automation, and energy management products and services in adjacent markets. Inter-segment revenue includes sales of hardware between our segments. Management evaluates the performance of its segments and allocates resources to them based on operating income. The reportable segment operational data is presented in the table below for the three and six months ended June 30, 2016 and 2015 and as of June 30, 2016 and December 31, 2015 (in thousands): Alarm.com Other Intersegment Alarm.com Intersegment Other Total For the Three Months Ended June 30, 2016 Revenue $ 61,775 $ 4,088 $ (754 ) $ (686 ) $ 64,423 Operating income 4,376 (1,552 ) (79 ) 63 2,808 For the Three Months Ended June 30, 2015 Revenue $ 50,753 $ 1,580 $ (130 ) $ (254 ) $ 51,949 Operating income 9,370 (5,082 ) (33 ) 22 4,277 For the Six Months Ended June 30, 2016 Revenue $ 117,785 $ 7,935 $ (1,340 ) $ (914 ) $ 123,466 Operating income 11,243 (4,235 ) (126 ) 187 7,069 For the Six Months Ended June 30, 2015 Revenue $ 95,618 $ 3,641 $ (520 ) $ (779 ) $ 97,960 Operating income 18,330 (8,906 ) (171 ) 150 9,403 As of June 30, 2016 Assets $ 231,799 $ 10,131 $ — $ — $ 241,930 As of December 31, 2015 Assets $ 215,315 $ 10,780 $ — $ — $ 226,095 We derived substantially all of our revenue from North America for the three and six months ended June 30, 2016 and 2015 . Substantially all of our long lived assets were located in North America as of June 30, 2016 and December 31, 2015 . |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Our installation partner in which we have a 48.2% ownership interest performs installation services for security dealers and also provides installation services for us and certain of our subsidiaries. We recorded $ 0.3 million and $ 0.7 million of cost of hardware and other revenue in connection with this installation partner for the three and six months ended June 30, 2016 , respectively, as compared to $ 0.2 million and $0.5 million for the same periods in the prior year. As of June 30, 2016 and December 31, 2015 , the accounts payable balance was $ 0.1 million and $0.5 million . In September 2014, we loaned $0.3 million to our installation partner under a secured promissory note that accrues interest at 8.0% . Interest is payable monthly with the entire principal balance plus accrued but unpaid interest due at maturity in September 2016. We recorded $6,000 and $12,000 of interest income related to this note receivable for the three and six months ended June 30, 2016 , respectively, as compared to $6,000 and $11,000 for the same periods in the prior year. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include our accounts and those of our majority-owned and controlled subsidiaries after elimination of intercompany accounts and transactions. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission ("SEC"). Accordingly, they do not include all the information and footnotes required by GAAP for annual financial statements. They should be read together with our audited consolidated financial statements and related notes thereto for the year ended December 31, 2015 appearing in our Annual Report on Form 10-K filed on February 29, 2016 with the SEC. The condensed consolidated balance sheet data as of December 31, 2015 was derived from our audited financial statements, but does not include all disclosures required by GAAP for annual financial statements. In the opinion of management, these condensed consolidated financial statements include all normal recurring adjustments necessary for a fair statement of the results of operations, financial position and cash flows. The results of operations for the three and six months ended June 30, 2016 are not necessarily indicative of the results that can be expected for our entire fiscal year ending December 31, 2016 . |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Our estimates, judgments and assumptions are continually evaluated based on available information and experience. Because the use of estimates is inherent in the financial reporting process, actual results could differ from our estimates. Estimates are used when accounting for revenue recognition, allowances for doubtful accounts receivable, allowance for hardware returns, estimates of obsolete inventory, long-term incentive compensation, stock-based compensation, income taxes, legal reserves, contingent consideration liability, goodwill and intangible assets. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted On September 25, 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments,” which requires entities to apply the guidance prospectively to adjustments to provisional amounts that occur after the effective date. Under the previous guidance, the acquirer would retrospectively adjust provisional amounts recognized as of the acquisition date with a corresponding adjustment to goodwill. Adjustments were required when new information was obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts initially recognized or would have resulted in the recognition of additional assets or liabilities. The amendments in ASU 2015-16 eliminate the requirement to retrospectively account for those adjustments. The amendment is effective for annual periods, including periods within those annual periods beginning after December 15, 2015 with early adoption permitted. We adopted this pronouncement prospectively in the first quarter of 2016, and it did not have an impact on our financial statements. On April 15, 2015, the FASB issued ASU 2015-05, “ Intangibles - Goodwill and Other - Internal- Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” which clarifies the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance as to whether an arrangement includes the sale or license of software. The amendment requires a customer to determine whether a cloud computing arrangement contains a software license. If the arrangement contains a software license, the customer would account for the fees related to the software license element in a manner consistent with how the acquisition of other software licenses is accounted for under Accounting Standards Codification ("ASC") 350-40; if the arrangement does not contain a software license, the customer would account for the arrangement as a service contract. The guidance will not change GAAP for a customer’s accounting for service contracts. The amendment is effective for annual periods, including periods within those annual periods beginning after December 31, 2015 with early adoption permitted. We elected to adopt the amendments prospectively to all arrangements entered into or materially modified after the effective date. We adopted this pronouncement in the first quarter of 2016, and it did not have an impact on our financial statements. On February 18, 2015, the FASB issued ASU 2015-02, “ Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which requires an entity to evaluate whether it should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The amendment modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities ("VIEs"). The amendment eliminates the presumption that a general partner should consolidate a limited partnership. The amendment affects the consolidation analysis of reporting entities that are involved with VIEs particularly those that have fee arrangements and related party relationships. The amendment also provides a scope exception from consolidation guidance for reporting entities that comply with the requirements for registered money market funds. We adopted this pronouncement in the first quarter of 2016, and it did not have an impact on our financial statements. On June 19, 2014, the FASB issued ASU 2014-12, “ Compensation - Stock Compensation (Topic 718),” which affects any entity that grants its employees share-based payments in which the terms of the award stipulate that a performance target that affects vesting could be achieved after the requisite service period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. We adopted this pronouncement in the first quarter of 2016, and it did not have an impact on our financial statements. Not yet adopted On May 9, 2016, the FASB issued ASU 2016-12, "Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients," and on April 14, 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”. ASU 2016-12 and 2016-10 both amend the guidance in ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is not yet effective. ASU 2016-12 clarifies guidance on assessing collectibility, presentation of sales taxes, noncash consideration, and completed contracts and contract modification within Topic 606. ASU 2016-10 clarifies guidance related to identifying performance obligations and licensing implementation guidance. These updates are effective with the same transition requirements as ASU 2014-09, as amended. We are required to adopt ASU 2014-09 and its amendments in the first quarter of 2018, and we are currently assessing the impact of this pronouncement on our financial statements. On March 30, 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” which simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The update is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted. An entity that elects early adoption must adopt all of the amendments in the same period. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively. An entity may elect to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using either a prospective transition method or a retrospective transition method. We are required to adopt ASU 2016-09 in the first quarter of 2017, and we are currently assessing the impact of this pronouncement on our financial statements. On March 17, 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal Versus Agent Considerations (Reporting Revenue Gross Versus Net)” which amends the guidance in ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)," which is not yet effective. The update clarifies the implementation guidance on principal versus agent considerations. The update is effective with the same transition requirements as ASU 2014-09, as amended. We are required to adopt ASU 2014-09 and its amendments in the first quarter of 2018, and we are currently assessing the impact of this pronouncement on our financial statements. On February 25, 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet. The update also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The update is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. We are required to adopt ASU 2016-02 in the first quarter of 2019, and we are currently assessing the impact of this pronouncement on our financial statements. On August 12, 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," which defers the effective date for all entities for one year of ASU 2014-09, “ Revenue from Contracts with Customers (Topic 606),” issued on May 28, 2014. ASU 2014-09 affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The guidance supersedes the revenue recognition guidance in Topic 605, “Revenue Recognition,” and most industry-specific guidance throughout the Industry Topics of the FASB Accounting Standards Codification. The guidance also supersedes some cost guidance included in Subtopic 605-35, “ Revenue Recognition - Contract-Type and Production-Type Contracts." ASU 2014-09, as amended, is effective for annual periods, and interim periods within those years, beginning after December 31, 2017. An entity is required to apply the amendments using one of the following two methods: (1) retrospectively to each prior period presented with three possible expedients: (a) for completed contracts that begin and end in the same reporting period no restatement is required; (b) for completed contract with variable consideration an entity may use the transaction price at completion rather than restating estimated variable consideration amounts in comparable reporting periods; and (c) for comparable reporting periods before date of initial application reduced disclosure requirements related to transaction price; (2) retrospectively with the cumulative effect of initially applying the amendment recognized at the date of initial application with additional disclosures for the differences of the prior guidance to the reporting periods compared to the new guidance and an explanation of the reasons for significant changes. We are required to adopt ASU 2014-09 and its amendments in the first quarter of 2018, and we are currently assessing the impact of this pronouncement on our financial statements. On July 22, 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which requires entities to measure most inventory "at the lower of cost and net realizable value," thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market (market in this context is defined as one of three different measures). The guidance does not apply to inventories that are measured by using either the last-in, first-out method or the retail inventory method. Under current guidance, an entity subsequently measures inventory at the lower of cost or market, with market defined as replacement cost provided that it is not above the ceiling (net realizable value) or below the floor (net realizable value less an approximately normal profit margin) which is unnecessarily complex. The amendment does not change other guidance on measuring inventory. The amendment is effective for annual periods, including periods within those annual periods beginning after December 15, 2016 with early adoption permitted. We are required to adopt this pronouncement prospectively in the first quarter of 2017, and we are currently assessing the impact of this pronouncement on our financial statements. On August 27, 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements — Going Concern (Subtopic 205-4 0),” which requires management to perform interim and annual assessments regarding conditions or events that raise substantial doubt about a company’s ability to continue as a going concern and to provide related disclosures, if applicable. The amendment is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. We are required to adopt ASU 2014-15 for our 2016 annual reporting period. We do not anticipate that the adoption of this standard will have a material effect on our financial statements. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Components of Accounts Receivable | The components of accounts receivable, net are as follows (in thousands): June 30, December 31, 2015 Accounts receivable $ 31,159 $ 24,779 Allowance for doubtful accounts (1,482 ) (1,315 ) Allowance for product returns (2,175 ) (2,116 ) Accounts receivable, net $ 27,502 $ 21,348 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventory | The components of inventory are as follows (in thousands): June 30, December 31, Raw materials $ 5,756 $ 3,026 Finished goods 3,697 3,448 Total inventory $ 9,453 $ 6,474 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of Consideration Paid to SecurityTrax and Estimated Fair Value of Tangible and Intangible Net Assets Acquired | The table below sets forth the consideration paid to SecurityTrax’s sellers and the estimated fair value of the tangible and intangible net assets acquired (in thousands): March 13, 2015 Calculation of Consideration: Cash paid, net of working capital adjustment $ 5,612 Cash not yet paid 400 Contingent consideration liability 700 Total consideration $ 6,712 Estimated Tangible and Intangible Net Assets: Current assets $ 14 Customer relationships 1,699 Developed technology 1,407 Trade name 271 Current liabilities (7 ) Goodwill 3,328 Total estimated tangible and intangible net assets $ 6,712 |
Goodwill and Intangible Asset28
Goodwill and Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table reflects changes in goodwill by operating segment for the six months ended June 30, 2016 (in thousands): Alarm.com Other Total Balance as of December 31, 2015 $ 24,723 $ — $ 24,723 Goodwill acquired — — — Balance as of June 30, 2016 $ 24,723 $ — $ 24,723 |
Schedule of Intangible Assets | The following tables reflect the weighted average remaining life and carrying value of finite-lived intangible assets as of June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted- Average Remaining Life Customer relationships $ 10,666 $ (6,769 ) $ 3,897 4.1 Developed technology 5,390 (4,163 ) 1,227 4.4 Trade name 914 (704 ) 210 4.3 Other 234 (183 ) 51 0.4 Total intangible assets $ 17,204 $ (11,819 ) $ 5,385 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted- Average Remaining Life Customer relationships $ 10,666 $ (6,217 ) $ 4,449 4.5 Developed technology 5,390 (3,904 ) 1,486 4.8 Trade name 914 (641 ) 273 4.7 Other 234 (124 ) 110 0.9 Total intangible assets $ 17,204 $ (10,886 ) $ 6,318 The following table reflects changes in the net carrying amount of the components of intangible assets for the six months ended June 30, 2016 (in thousands): Customer Relationships Developed Technology Trade Name Other Total Balance as of December 31, 2015 $ 4,449 $ 1,486 $ 273 $ 110 $ 6,318 Intangible assets acquired — — — — — Amortization (552 ) (259 ) (63 ) (59 ) (933 ) Balance as of June 30, 2016 $ 3,897 $ 1,227 $ 210 $ 51 $ 5,385 |
Schedule of Future Estimated Amortization Expense | The following table reflects the future estimated amortization expense for intangible assets as of June 30, 2016 (in thousands): Year ending December 31, Amortization Remainder of 2016 $ 793 2017 1,400 2018 1,329 2019 579 2020 and thereafter 1,284 Total future amortization expense $ 5,385 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents our assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015 (in thousands): Fair Value Measurements on a Recurring Basis as of Fair Value Measurements in: Level 1 Level 2 Level 3 Total Assets: Money market account $ 129,619 $ — $ — $ 129,619 Total $ 129,619 $ — $ — $ 129,619 Liabilities: Subsidiary unit awards $ — $ — $ 834 $ 834 Contingent consideration liability from acquisition — — 40 40 Total $ — $ — $ 874 $ 874 Fair Value Measurements on a Recurring Basis as of Fair Value Measurements in: Level 1 Level 2 Level 3 Total Assets: Money market account $ 122,818 $ — $ — $ 122,818 Total $ 122,818 $ — $ — $ 122,818 Liabilities: Subsidiary unit awards $ — $ — $ 532 $ 532 Contingent consideration liability from acquisition — — 230 230 Total $ — $ — $ 762 $ 762 |
Summary of Fair Value of Level 3 Liability | The following table summarizes the change in fair value of the Level 3 liability for the three months ended June 30, 2016 (in thousands): Fair Value Measurements Beginning balance as of March 31, 2016 $ 720 Obligations assumed — Transfers — Payments — Realized (gain) / loss — Unrealized loss 154 Ending Balance as of June 30, 2016 $ 874 The following table summarizes the change in fair value of the Level 3 liability for the six months ended June 30, 2016 (in thousands): Fair Value Measurements Beginning balance as of December 31, 2015 $ 762 Obligations assumed — Transfers — Payments — Realized (gain) / loss — Unrealized loss 112 Ending Balance as of June 30, 2016 $ 874 |
Liabilities (Tables)
Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable. Accrued Expenses and Other Current Liabilities | The components of accounts payable, accrued expenses and other current liabilities are as follows (in thousands): June 30, December 31, Accounts payable $ 21,556 $ 12,813 Accrued expenses 3,553 4,244 Other current liabilities 2,221 2,219 Accounts payable, accrued expenses and other current liabilities $ 27,330 $ 19,276 The components of other liabilities are as follows (in thousands): June 30, December 31, Deferred rent $ 9,347 $ 8,435 Other liabilities 2,524 2,049 Other liabilities $ 11,871 $ 10,484 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table summarizes the components of non-cash stock-based compensation expense for the three and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Stock options $ 923 $ 656 $ 1,757 $ 1,196 Employee stock purchase plan 19 — 37 — Compensation related to the sale of common stock — 172 — 193 Compensation related to the cash settlement of stock options — 777 — 777 Total stock-based compensation expense $ 942 $ 1,605 $ 1,794 $ 2,166 Tax benefit from equity-based plans $ 165 $ 396 $ 459 $ 241 Stock-based compensation expense is included in the following line items in the accompanying condensed consolidated statements of operations for the three and six months ended June 30, 2016 and 2015 (in thousands): Three Months Ended Six Months Ended 2016 2015 2016 2015 Sales and marketing $ 151 $ 86 $ 292 $ 146 General and administrative 236 1,226 463 1,520 Research and development 555 293 1,039 500 Total stock-based compensation expense $ 942 $ 1,605 $ 1,794 $ 2,166 |
Summary of Assumptions Used for Estimating Fair Value of Stock Options Granted | The following table summarizes the assumptions used for estimating the fair value of stock options granted during the three and six months ended June 30, 2016 and 2015 : Three Months Ended Six Months Ended 2016 2015 2016 2015 Volatility 48.3 - 50.6% 48.5 - 51.8% 48.3 - 50.6% 48.5 - 51.8% Expected term 5.6 - 6.3 years 4.5 - 5.7 years 5.6 - 6.3 years 4.5 - 5.7 years Risk-free interest rate 1.3 - 1.4% 1.3 - 1.6% 1.3 - 1.4% 1.3 - 1.6% Dividend rate — % — % — % — % |
Summary of Stock Option Activity | The following table presents stock option activity for the six months ended June 30, 2016 : Number of Options Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding as of December 31, 2015 3,547,913 $ 4.17 6.6 $ 44,411 Granted 576,300 16.41 Exercised (80,121 ) 2.17 1,470 Forfeited (79,035 ) 9.08 Expired — — Outstanding as of June 30, 2016 3,965,057 $ 5.89 6.6 $ 78,277 Vested and expected to vest as of June 30, 2016 3,893,776 $ 5.79 6.5 $ 77,240 Exercisable as of June 30, 2016 2,386,241 $ 2.69 5.3 $ 54,752 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Components of Basic and Diluted EPS | The components of basic and diluted EPS are as follows (in thousands, except share and per share amounts): Three Months Ended Six Months Ended 2016 2015 2016 2015 Net income $ 1,873 $ 2,509 $ 4,611 $ 5,550 Less: dividends paid to participating securities — (18,987 ) — (18,987 ) Net income / (loss) attributable to common stockholders (A) $ 1,873 $ (16,478 ) $ 4,611 $ (13,437 ) Weighted average common shares outstanding — basic (B) 45,602,061 2,706,369 45,564,059 2,671,783 Dilutive effect of stock options 1,921,126 — 1,841,452 — Weighted average common shares outstanding — diluted (C) 47,523,187 2,706,369 47,405,511 2,671,783 Net income / (loss) per share: Basic (A/B) $ 0.04 $ (6.09 ) $ 0.10 $ (5.03 ) Diluted (A/C) $ 0.04 $ (6.09 ) $ 0.10 $ (5.03 ) |
Schedule of Securities Excluded from Calculation of Diluted Weighted Average Common Shares Outstanding Due to Anti-dilutive Effect | The following securities have been excluded from the calculation of diluted weighted average common shares outstanding because the effect is anti-dilutive for the three and six months ended June 30, 2016 and 2015 : Three Months Ended Six Months Ended 2016 2015 2016 2015 Redeemable convertible preferred stock: Series A — 1,998,257 — 1,998,257 Series B — 1,809,685 — 1,809,685 Series B-1 — 82,934 — 82,934 Stock options 119,750 507,375 617,072 588,675 Common stock subject to repurchase 53,869 156,009 53,869 156,009 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Operational Data | The reportable segment operational data is presented in the table below for the three and six months ended June 30, 2016 and 2015 and as of June 30, 2016 and December 31, 2015 (in thousands): Alarm.com Other Intersegment Alarm.com Intersegment Other Total For the Three Months Ended June 30, 2016 Revenue $ 61,775 $ 4,088 $ (754 ) $ (686 ) $ 64,423 Operating income 4,376 (1,552 ) (79 ) 63 2,808 For the Three Months Ended June 30, 2015 Revenue $ 50,753 $ 1,580 $ (130 ) $ (254 ) $ 51,949 Operating income 9,370 (5,082 ) (33 ) 22 4,277 For the Six Months Ended June 30, 2016 Revenue $ 117,785 $ 7,935 $ (1,340 ) $ (914 ) $ 123,466 Operating income 11,243 (4,235 ) (126 ) 187 7,069 For the Six Months Ended June 30, 2015 Revenue $ 95,618 $ 3,641 $ (520 ) $ (779 ) $ 97,960 Operating income 18,330 (8,906 ) (171 ) 150 9,403 As of June 30, 2016 Assets $ 231,799 $ 10,131 $ — $ — $ 241,930 As of December 31, 2015 Assets $ 215,315 $ 10,780 $ — $ — $ 226,095 |
Organization (Details)
Organization (Details) service_provider in Thousands | 6 Months Ended |
Jun. 30, 2016solutionservice_provider | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of trusted service providers | service_provider | 6 |
Number of primary solutions | solution | 4 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Components of Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Accounts receivable | $ 31,159 | $ 24,779 |
Allowance for doubtful accounts | (1,482) | (1,315) |
Allowance for product returns | (2,175) | (2,116) |
Accounts receivable, net | $ 27,502 | $ 21,348 |
Accounts Receivable, Net - Narr
Accounts Receivable, Net - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Provision for doubtful accounts | $ 100 | $ 100 | $ 261 | $ 389 |
Reserve for product returns | 1,008 | 763 | ||
Hardware and Other Revenue | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Reserve for product returns | $ 500 | $ 400 | $ 1,000 | $ 800 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 5,756 | $ 3,026 |
Finished goods | 3,697 | 3,448 |
Total inventory | $ 9,453 | $ 6,474 |
Acquisitions - Proposed Acquisi
Acquisitions - Proposed Acquisition (Details) subscriber in Millions, $ in Millions | Jun. 23, 2016USD ($)business_unitsubscriber |
Connect And Piper | |
Business Acquisition [Line Items] | |
Number of business units | business_unit | 2 |
Consideration | $ | $ 140 |
Connect | |
Business Acquisition [Line Items] | |
Number of subscribers (over 1.6 million) | subscriber | 1.6 |
Acquisitions - SecurityTrax Acq
Acquisitions - SecurityTrax Acquisition (Details) | Mar. 13, 2015USD ($)group | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | ||||||
Cash paid to acquire business | $ 217,000 | $ 0 | ||||
Cash not yet paid for business acquisitions | 200,000 | 834,000 | ||||
Goodwill | $ 24,723,000 | 24,723,000 | $ 24,723,000 | |||
Gain in change in fair value of contingent liability | 190,000 | (70,000) | ||||
SecurityTrax | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid to acquire business | $ 5,612,000 | |||||
Cash not yet paid for business acquisitions | 400,000 | |||||
Pro forma revenue | 98,200,000 | |||||
Pro forma net income | 5,500,000 | |||||
Goodwill | 3,328,000 | |||||
SecurityTrax | Customer Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired | $ 1,699,000 | |||||
Weighted-average estimated useful life of intangible assets acquired | 7 years | |||||
SecurityTrax | Customer Relationships | Income Approach Valuation Technique | ||||||
Business Acquisition [Line Items] | ||||||
Number of groups measured under valuation technique | group | 2 | |||||
Discount rate | 22.50% | |||||
Customer retention rate | 90.00% | |||||
SecurityTrax | Developed Technology | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets acquired | $ 1,407,000 | |||||
Weighted-average estimated useful life of intangible assets acquired | 8 years | |||||
SecurityTrax | Developed Technology | Income Approach Valuation Technique | ||||||
Business Acquisition [Line Items] | ||||||
Discount rate | 22.50% | |||||
Market royalty rate | 25.00% | |||||
SecurityTrax | Developed Technology | Cost Approach Valuation Technique | ||||||
Business Acquisition [Line Items] | ||||||
Adjustment for developer's profit rate | 30.40% | |||||
SecurityTrax | Contingent Consideration, Earn Out Program | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration liability | $ 700,000 | |||||
Maximum amount of contingent consideration liability to be paid | $ 2,000,000 | 2,000,000 | 2,000,000 | |||
SecurityTrax | Contingent Consideration, Earn Out Program | Income Approach Valuation Technique | ||||||
Business Acquisition [Line Items] | ||||||
Discount rate | 8.45% | |||||
Revenue risk adjustment rate | 7.50% | |||||
SecurityTrax | Contingent Consideration, Earn Out Program | Other Liabilities | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration liability from acquisition | $ 700,000 | 100,000 | 100,000 | $ 200,000 | ||
Gain in change in fair value of contingent liability | $ 100,000 | $ 100,000 | $ 200,000 | $ 100,000 |
Acquisitions - Schedule of Cons
Acquisitions - Schedule of Consideration Paid to SecurityTrax and Estimated Fair Value of Tangible and Intangible Net Assets Acquired (Details) - USD ($) $ in Thousands | Mar. 13, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
Calculation of Consideration: | ||||
Cash paid, net of working capital adjustment | $ 217 | $ 0 | ||
Cash not yet paid | 200 | $ 834 | ||
Estimated Tangible and Intangible Net Assets: | ||||
Goodwill | $ 24,723 | $ 24,723 | ||
SecurityTrax | ||||
Calculation of Consideration: | ||||
Cash paid, net of working capital adjustment | $ 5,612 | |||
Cash not yet paid | 400 | |||
Total consideration | 6,712 | |||
Estimated Tangible and Intangible Net Assets: | ||||
Current assets | 14 | |||
Current liabilities | (7) | |||
Goodwill | 3,328 | |||
Total estimated tangible and intangible net assets | 6,712 | |||
SecurityTrax | Customer Relationships | ||||
Estimated Tangible and Intangible Net Assets: | ||||
Intangible assets | 1,699 | |||
SecurityTrax | Developed Technology | ||||
Estimated Tangible and Intangible Net Assets: | ||||
Intangible assets | 1,407 | |||
SecurityTrax | Trade Name | ||||
Estimated Tangible and Intangible Net Assets: | ||||
Intangible assets | 271 | |||
SecurityTrax | Contingent Consideration, Earn Out Program | ||||
Calculation of Consideration: | ||||
Contingent consideration liability | $ 700 |
Goodwill and Intangible Asset41
Goodwill and Intangible Assets, Net - Schedule of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 24,723 |
Goodwill acquired | 0 |
Ending balance | 24,723 |
Alarm.com | |
Goodwill [Roll Forward] | |
Beginning balance | 24,723 |
Goodwill acquired | 0 |
Ending balance | 24,723 |
Other | |
Goodwill [Roll Forward] | |
Beginning balance | 0 |
Goodwill acquired | 0 |
Ending balance | $ 0 |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | $ 0 |
Amortization | $ 400,000 | $ 600,000 | $ 933,000 | $ 1,000,000 |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets, Net - Schedule of Net Carrying Amount of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Finite-lived Intangible Assets [Roll Forward] | ||||
Beginning balance | $ 6,318 | |||
Intangible assets acquired | 0 | |||
Amortization | $ (400) | $ (600) | (933) | $ (1,000) |
Ending balance | 5,385 | 5,385 | ||
Customer Relationships | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Beginning balance | 4,449 | |||
Intangible assets acquired | 0 | |||
Amortization | (552) | |||
Ending balance | 3,897 | 3,897 | ||
Developed Technology | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Beginning balance | 1,486 | |||
Intangible assets acquired | 0 | |||
Amortization | (259) | |||
Ending balance | 1,227 | 1,227 | ||
Trade Name | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Beginning balance | 273 | |||
Intangible assets acquired | 0 | |||
Amortization | (63) | |||
Ending balance | 210 | 210 | ||
Other | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Beginning balance | 110 | |||
Intangible assets acquired | 0 | |||
Amortization | (59) | |||
Ending balance | $ 51 | $ 51 |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets, Net - Schedule of Weighted Average Remaining Life and Carrying Value of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 17,204 | $ 17,204 |
Accumulated Amortization | (11,819) | (10,886) |
Net Carrying Value | 5,385 | 6,318 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 10,666 | 10,666 |
Accumulated Amortization | (6,769) | (6,217) |
Net Carrying Value | $ 3,897 | $ 4,449 |
Customer Relationships | Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- average Remaining Life | 4 years 1 month 22 days | 4 years 5 months 24 days |
Developed Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 5,390 | $ 5,390 |
Accumulated Amortization | (4,163) | (3,904) |
Net Carrying Value | $ 1,227 | $ 1,486 |
Developed Technology | Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- average Remaining Life | 4 years 5 months 5 days | 4 years 9 months 7 days |
Trade Name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 914 | $ 914 |
Accumulated Amortization | (704) | (641) |
Net Carrying Value | $ 210 | $ 273 |
Trade Name | Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- average Remaining Life | 4 years 4 months 3 days | 4 years 8 months 18 days |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 234 | $ 234 |
Accumulated Amortization | (183) | (124) |
Net Carrying Value | $ 51 | $ 110 |
Other | Weighted Average | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- average Remaining Life | 5 months | 10 months 24 days |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets, Net - Schedule of Future Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2016 | $ 793 | |
2,017 | 1,400 | |
2,018 | 1,329 | |
2,019 | 579 | |
2020 and thereafter | 1,284 | |
Net Carrying Value | $ 5,385 | $ 6,318 |
Investments in Other Entities -
Investments in Other Entities - Home Service Provider (Details) - Connected Home Service Provider - USD ($) $ / shares in Units, $ in Millions | Apr. 20, 2016 | Apr. 15, 2015 | Jun. 30, 2016 | Dec. 31, 2015 |
Other Assets | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Cost method investment | $ 0.6 | $ 0.4 | ||
Variable Interest Entity, Not Primary Beneficiary | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Ownership interest in cost method investment | 14.30% | 12.60% | 12.40% | |
Cost method investment | $ 0.4 | |||
Variable Interest Entity, Not Primary Beneficiary | Series A Convertible Preferred Membership Units | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Cost method investment, shares | 20,000 | |||
Variable Interest Entity, Not Primary Beneficiary | Series B Convertible Preferred Membership Units | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Cost method investment, shares | 2,667 | |||
Variable Interest Entity, Not Primary Beneficiary | Series B-1 Convertible Preferred Membership Units | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Cost method investment, shares | 6,904 | 2,333 | ||
Cost method investment, share price | $ 20.19 | $ 23.31 | ||
Cost method investment, original cost | $ 0.1 | $ 0.1 |
Investments in Other Entities47
Investments in Other Entities - Installation Partner (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 11, 2015 | Sep. 30, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Loss from equity method investment | $ 45,000 | $ 188,000 | |||||
Installation Partner | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investment, shares | 48,190 | 48,190 | 9,290 | ||||
Ownership percentage in equity method investment | 48.20% | 48.20% | |||||
Equity method investment, cost | $ 1,000,000 | $ 1,000,000 | $ 200,000 | ||||
Installation Partner | Other (expense) / income, net | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Loss from equity method investment | 100,000 | $ 100,000 | 100,000 | $ 200,000 | |||
Installation Partner | Other Assets | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investment, cost | 1,200,000 | 1,200,000 | |||||
Equity method investment | 100,000 | 100,000 | |||||
Installation Partner | Equity Method Investee | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percent of net losses recorded | 100.00% | ||||||
Loss from equity method investment | $ 200,000 | ||||||
Installation Partner | Equity Method Investee | Secured Promissory Note | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Related party notes receivable, face amount | $ 300,000 | ||||||
Notes receivable, Interest rate | 8.00% | ||||||
Installation Partner | Equity Method Investee | Secured Promissory Note | Other Assets | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Related party notes receivable, face amount | $ 315,000 | ||||||
Note receivable | $ 100,000 | 100,000 | $ 100,000 | ||||
Equity method investment | $ 100,000 |
Investments in Other Entities48
Investments in Other Entities - Platform Partner (Details) - Platform Partner - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2016 | Dec. 31, 2015 | |
Other Assets | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Cost method investment | $ 1 | $ 1 | ||
Variable Interest Entity, Not Primary Beneficiary | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Return on investment | $ 2.5 | |||
Variable Interest Entity, Not Primary Beneficiary | Series A Convertible Preferred Shares | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Cost method investment, original cost | $ 3.5 | |||
Cost method investment, shares | 3,548,820 | 3,548,820 | ||
Ownership interest in cost method investment | 18.70% | |||
Variable Interest Entity, Not Primary Beneficiary | Common Stock | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Ownership interest in cost method investment | 8.60% | |||
Shares converted | 3,548,820 |
Other Assets - Patent Licenses
Other Assets - Patent Licenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | $ 17,204 | $ 17,204 | $ 17,204 | ||
Finite-lived, intangible assets, net | 5,385 | 5,385 | 6,318 | ||
Amortization for patents and tooling | 364 | $ 124 | |||
Patent Licenses | Cost of SaaS and License Revenue | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization for patents and tooling | 100 | $ 100 | $ 300 | $ 100 | |
Patent Licenses | Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life | 3 years | ||||
Patent Licenses | Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible asset, useful life | 11 years | ||||
Patent Licenses | Other Assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, gross | 3,300 | $ 3,300 | |||
Finite-lived, intangible assets, net | $ 1,900 | $ 1,900 | $ 2,200 |
Other Assets - Loans to Distrib
Other Assets - Loans to Distribution Partner and Deferred Offering Costs (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Repayments of notes receivable | $ 2,441,000 | $ 0 | |||
Distribution Partner | Other Assets | Notes Receivable | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Notes receivable, maximum available | $ 2,800,000 | ||||
Notes receivable, Interest rate | 8.00% | ||||
Repayments of notes receivable | $ 2,400,000 | ||||
Note receivable | $ 0 | $ 2,400,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Total | $ 129,619 | $ 122,818 |
Liabilities: | ||
Subsidiary unit awards | 834 | 532 |
Contingent consideration liability from acquisition | 40 | 230 |
Total | 874 | 762 |
Money market account | ||
Assets: | ||
Money market account | 129,619 | 122,818 |
Level 1 | ||
Assets: | ||
Total | 129,619 | 122,818 |
Liabilities: | ||
Subsidiary unit awards | 0 | 0 |
Contingent consideration liability from acquisition | 0 | 0 |
Total | 0 | 0 |
Level 1 | Money market account | ||
Assets: | ||
Money market account | 129,619 | 122,818 |
Level 2 | ||
Assets: | ||
Total | 0 | 0 |
Liabilities: | ||
Subsidiary unit awards | 0 | 0 |
Contingent consideration liability from acquisition | 0 | 0 |
Total | 0 | 0 |
Level 2 | Money market account | ||
Assets: | ||
Money market account | 0 | 0 |
Level 3 | ||
Assets: | ||
Total | 0 | 0 |
Liabilities: | ||
Subsidiary unit awards | 834 | 532 |
Contingent consideration liability from acquisition | 40 | 230 |
Total | 874 | 762 |
Level 3 | Money market account | ||
Assets: | ||
Money market account | $ 0 | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value of Level 3 Liability (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016 | Jun. 30, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 720 | $ 762 |
Obligations assumed | 0 | 0 |
Transfers | 0 | 0 |
Payments | 0 | 0 |
Realized (gain) / loss | 0 | 0 |
Unrealized loss | (154) | (112) |
Ending balance | $ 874 | $ 874 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)employeeaward | Jun. 30, 2015USD ($) | Mar. 13, 2015USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Other-than-temporary impairments | $ 0 | $ 0 | $ 0 | $ 0 | |
Contingent Consideration, Earn Out Program | SecurityTrax | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Maximum amount of contingent consideration liability to be paid | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | ||
Repurchase of Subsidiary Units, February 2011 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Number of employees to be granted awards | employee | 3 | ||||
Founder and President | Repurchase of Subsidiary Units, February 2011 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Number of awards in subsidiary unit agreement | award | 3 |
Liabilities - Components of Acc
Liabilities - Components of Accounts Payable, Accrued Expenses, and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 21,556 | $ 12,813 |
Accrued expenses | 3,553 | 4,244 |
Other current liabilities | 2,221 | 2,219 |
Accounts payable, accrued expenses and other current liabilities | $ 27,330 | $ 19,276 |
Liabilities - Other Liabilities
Liabilities - Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Deferred rent | $ 9,347 | $ 8,435 |
Other liabilities | 2,524 | 2,049 |
Other liabilities | $ 11,871 | $ 10,484 |
Debt, Commitments and Conting56
Debt, Commitments and Contingencies - Debt (Details) | Aug. 10, 2016USD ($) | Jun. 23, 2016business_unit | Dec. 07, 2015 | Jun. 30, 2016USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($) |
Connect And Piper | ||||||
Debt Instrument [Line Items] | ||||||
Number of business units | business_unit | 2 | |||||
Term Loan | Prior Facility | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from line of credit used to repay prior facility | $ 6,700,000 | |||||
Revolving Credit Facility | Line of Credit | 2014 Facility | ||||||
Debt Instrument [Line Items] | ||||||
Current borrowing capacity | 50,000,000 | |||||
Maximum borrowing capacity | $ 75,000,000 | |||||
Effective interest rate (percent) | 2.64% | |||||
Long-term debt | $ 6,700,000 | $ 6,700,000 | ||||
Consolidated leverage ratio covenant (not to exceed) | 2.50 | |||||
Consolidated fixed charge coverage ratio covenant (at least) | 1.25 | |||||
Revolving Credit Facility | Line of Credit | 2014 Facility | Noncurrent Liabilities | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 6,700,000 | |||||
Revolving Credit Facility | Line of Credit | 2014 Facility | Subsequent Event | ||||||
Debt Instrument [Line Items] | ||||||
Current borrowing capacity | $ 75,000,000 | |||||
Maximum borrowing capacity | $ 125,000,000 | |||||
Consolidated leverage ratio covenant (not to exceed) | 3 | |||||
Consolidated adjusted EBITDA modified, amount to add back, period one | $ 5,000,000 | |||||
Consolidated adjusted EBITDA modified, percentage of consolidated adjusted EBITDA to add back, period one | 20.00% | |||||
Consolidated adjusted EBITDA modified, amount to add back, period two | $ 5,000,000 | |||||
Consolidated adjusted EBITDA modified, percentage of consolidated adjusted EBITDA to add back, period two | 15.00% | |||||
Revolving Credit Facility | Line of Credit | 2014 Facility | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Unused line commitment fee (percentage) | 0.20% | |||||
Revolving Credit Facility | Line of Credit | 2014 Facility | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Unused line commitment fee (percentage) | 0.25% | |||||
Revolving Credit Facility | Line of Credit | 2014 Facility | Federal Funds Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (percent) | 0.50% | |||||
Revolving Credit Facility | Line of Credit | 2014 Facility | London Interbank Offered Rate (LIBOR) | Leverage Ratio (less than or equal to) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (percent) | 2.00% | 2.25% | ||||
Consolidated leverage ratio | 1 | 1 | ||||
Revolving Credit Facility | Line of Credit | 2014 Facility | London Interbank Offered Rate (LIBOR) | Leverage Ratio (greater than or equal to, but less than) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (percent) | 2.25% | 2.50% | ||||
Revolving Credit Facility | Line of Credit | 2014 Facility | London Interbank Offered Rate (LIBOR) | Leverage Ratio (greater than or equal to, but less than) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Consolidated leverage ratio | 1 | 1 | ||||
Revolving Credit Facility | Line of Credit | 2014 Facility | London Interbank Offered Rate (LIBOR) | Leverage Ratio (greater than or equal to, but less than) | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Consolidated leverage ratio | 2 | 2 | ||||
Revolving Credit Facility | Line of Credit | 2014 Facility | London Interbank Offered Rate (LIBOR) | Leverage Ratio (less than) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (percent) | 2.50% | 2.75% | ||||
Consolidated leverage ratio | 2 | 2 | ||||
Revolving Credit Facility | Line of Credit | 2014 Facility | Alternate Base Rate (ABR) | Leverage Ratio (less than or equal to) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (percent) | 1.00% | 1.25% | ||||
Consolidated leverage ratio | 1 | 1 | ||||
Revolving Credit Facility | Line of Credit | 2014 Facility | Alternate Base Rate (ABR) | Leverage Ratio (greater than or equal to, but less than) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (percent) | 1.25% | 1.50% | ||||
Revolving Credit Facility | Line of Credit | 2014 Facility | Alternate Base Rate (ABR) | Leverage Ratio (greater than or equal to, but less than) | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Consolidated leverage ratio | 1 | 1 | ||||
Revolving Credit Facility | Line of Credit | 2014 Facility | Alternate Base Rate (ABR) | Leverage Ratio (greater than or equal to, but less than) | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Consolidated leverage ratio | 2 | 2 | ||||
Revolving Credit Facility | Line of Credit | 2014 Facility | Alternate Base Rate (ABR) | Leverage Ratio (less than) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (percent) | 1.50% | 1.75% | ||||
Consolidated leverage ratio | 2 | 2 |
Debt, Commitments and Conting57
Debt, Commitments and Contingencies - Repurchase of Subsidiary Units (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2016USD ($)employee | Dec. 31, 2015USD ($) | |
Repurchase of Subsidiary Units | ||
Related Party Transaction [Line Items] | ||
Number of employees to be granted awards | employee | 2 | |
Founder and President | Other Liabilities | Repurchase of Subsidiary Units, September 2012 | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 0 | $ 0.1 |
Founder and President | Other Liabilities | Repurchase of Subsidiary Units | ||
Related Party Transaction [Line Items] | ||
Due to related parties | $ 0.8 | $ 0.5 |
Debt, Commitments and Conting58
Debt, Commitments and Contingencies - Leases (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
May 31, 2016USD ($)ft² | Aug. 31, 2014USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Leases, Operating [Abstract] | ||||||
Lease renewal term | 5 years | |||||
Available leasehold improvement allowance | $ 8 | $ 9.7 | $ 9.7 | |||
Square footage of additional office space | ft² | 29,857 | |||||
Additional leasehold improvement allowance | $ 1.7 | |||||
Operating Lease, Available Leasehold Improvement Allowance, Utilized in Period | 6.2 | |||||
Rent expense | $ 1.2 | $ 1.2 | $ 2.5 | $ 2.4 |
Debt, Commitments and Conting59
Debt, Commitments and Contingencies - Letters of Credit (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Line of Credit | 2014 Facility | Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding letters of credit | $ 800,000 | $ 0 |
Debt, Commitments and Conting60
Debt, Commitments and Contingencies - Legal Proceedings (Details) - Pending Litigation $ in Thousands | Feb. 09, 2016USD ($) | Jun. 02, 2015patentelement |
Loss Contingencies [Line Items] | ||
Compensatory damages sought | $ 7,000 | |
Punitive damages sought | $ 350 | |
Vivint, Inc. vs. Alarm.com Holdings, Inc | ||
Loss Contingencies [Line Items] | ||
Number of patents allegedly infringed | patent | 6 | |
Number of elements of a solution in a patent, potentially infringed (or more) | element | 1 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 576,300 | 482,276 | |||
Weighted average grant date fair value for stock options (in dollars per share) | $ 8.08 | $ 5.59 | |||
Fair value of stock options vested during period | $ 1,200 | $ 800 | |||
Aggregate intrinsic value of stock options exercised during period | 1,470 | 2,000 | |||
Compensation cost not yet recognized on nonvested awards | $ 5,500 | $ 5,500 | |||
Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Cash settlement of exercised stock options included in stock-based compensation | $ 800 | $ 800 | |||
Compensation cost not yet recognized, period for recognition | 2 years 2 months 12 days | ||||
2009 and 2015 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unvested shares of common stock outstanding | 53,869 | 53,869 | 96,368 | ||
2009 and 2015 Plan | Accounts Payable, Accrued Expenses and Other Current Liabilities | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Liability from proceeds of early exercise of stock options | $ 200 | $ 200 | $ 400 | ||
2015 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common shares reserved for issuance | 4,700,000 | 4,700,000 | |||
Common shares reserved for issuance, annual increase period (not more than) | 10 years | ||||
Common shares reserved for issuance, percentage of annual increase | 5.00% | ||||
Shares available to be issued | 6,445,217 | 6,445,217 | |||
2009 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available to be issued | 0 | 0 | |||
2009 Plan | Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 5 years | ||||
Award expiration period | 10 years | ||||
Common Stock | 2009 and 2015 Plan | Stock options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Repurchase of unvested shares | 1,924 | 287 | 1,924 | 287 |
Stock-Based Compensation - St62
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 942 | $ 1,605 | $ 1,794 | $ 2,166 |
Tax benefit from equity-based plans | 165 | 396 | 459 | 241 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 151 | 86 | 292 | 146 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 236 | 1,226 | 463 | 1,520 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 555 | 293 | 1,039 | 500 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 923 | 656 | 1,757 | 1,196 |
Employee stock purchase plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 19 | 0 | 37 | 0 |
Compensation related to the sale of common stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 0 | 172 | 0 | 193 |
Compensation related to the cash settlement of stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 0 | $ 777 | $ 0 | $ 777 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Assumptions Used for Estimating Fair Value of Stock Options Granted (Details) - Stock options | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Volatility, minimum | 48.30% | 48.50% | 48.30% | 48.50% |
Volatility, maximum | 50.60% | 51.80% | 50.60% | 51.80% |
Risk-free interest rate, minimum | 1.30% | 1.30% | 1.30% | 1.30% |
Risk-free interest rate, maximum | 1.40% | 1.60% | 1.40% | 1.60% |
Dividend rate (percent) | 0.00% | 0.00% | 0.00% | 0.00% |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term | 5 years 7 months 6 days | 4 years 6 months | 5 years 7 months 6 days | 4 years 6 months |
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term | 6 years 3 months 18 days | 5 years 8 months 12 days | 6 years 3 months 18 days | 5 years 8 months 12 days |
Stock-Based Compensation - Su64
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 3,547,913 | ||
Granted (in shares) | 576,300 | 482,276 | |
Exercised (in shares) | (80,121) | ||
Forfeited (in shares) | (79,035) | ||
Expired (in shares) | 0 | ||
Outstanding, ending balance (in shares) | 3,965,057 | 3,547,913 | |
Vested and expected to vest (in shares) | 3,893,776 | ||
Exercisable (in shares) | 2,386,241 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding, beginning balance, weighted average exercise price per share (in dollars per share) | $ 4.17 | ||
Granted, weighted average exercise price per share (in dollars per share) | 16.41 | ||
Exercised, weighted average exercise price per share (in dollars per share) | 2.17 | ||
Forfeited, weighted average exercise price per share (in dollars per share) | 9.08 | ||
Expired, weighted average exercise price per share (in dollars per share) | 0 | ||
Outstanding, ending balance, weighted average exercise price per share (in dollars per share) | 5.89 | $ 4.17 | |
Vested and expected to vest, weighted average exercise price per share (in dollars per share) | 5.79 | ||
Exercisable, weighted average exercise price per share (in dollars per share) | $ 2.69 | ||
Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value | |||
Outstanding, weighted average remaining contractual life | 6 years 7 months 6 days | 6 years 7 months 6 days | |
Vested and expected to vest, weighted average remaining contractual life | 6 years 6 months | ||
Exercisable, weighted average remaining contractual life | 5 years 3 months 18 days | ||
Outstanding, aggregate intrinsic value | $ 78,277 | $ 44,411 | |
Exercised, aggregate intrinsic value | 1,470 | $ 2,000 | |
Vested and expected to vest, aggregate intrinsic value | 77,240 | ||
Exercisable, aggregate intrinsic value | $ 54,752 |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense (less than .1 million in 2016) | $ 942,000 | $ 1,605,000 | $ 1,794,000 | $ 2,166,000 |
Employee stock purchase plan | Employee Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares reserved for future grant | 1,637,111 | 1,637,111 | ||
Shares reserved for grant, annual increase period | 9 years | |||
Annual automatic increase in shares available, percentage of each class of common stock outstanding | 1.00% | |||
Annual automatic increase in shares available, shares | 1,500,000 | |||
Purchase price of shares as a percentage of fair market value | 90.00% | |||
Maximum number of shares participant may purchase, fair market value (not to exceed) | $ 15,000 | $ 15,000 | ||
Maximum number of shares participant may purchase as a percentage of base compensation (not to exceed) | 10.00% | 10.00% | ||
Shares purchased by employees | 18,705 | |||
Stock-based compensation expense (less than .1 million in 2016) | $ 100,000 | $ 0 | $ 100,000 | $ 0 |
Employee stock purchase plan | Employee Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Discount of the market value on the date of purchase (not to exceed) (percentage) | 10.00% |
Stock-Based Compensation - Warr
Stock-Based Compensation - Warrants (Details) $ / shares in Units, $ in Millions | Mar. 30, 2015employeeshares | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2015USD ($) | Dec. 31, 2015shares |
Performance Based Warrants | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of exercisable warrants (in shares) | 0 | 0 | 0 | |||
Expense associated with warrants | $ | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.1 | ||
Common Stock | 2015 Performance Based Warrant | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of employees who were issued warrants | employee | 2 | |||||
Common Stock | Employee | 2015 Performance Based Warrant | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of shares exercisable when warrants exercise (up to / not to exceed) | 54,694 | |||||
Common Stock | Employee | 2015 Performance Based Warrant, Two | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of shares exercisable when warrants exercise (up to / not to exceed) | 27,347 | 27,347 | ||||
Exercise price of warrants (in dollars per share) | $ / shares | $ 10.97 | $ 10.97 |
Stock-Based Compensation - Sale
Stock-Based Compensation - Sale of Common Stock Subscriptions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 942,000 | $ 1,605,000 | $ 1,794,000 | $ 2,166,000 | |
General and administrative | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | 236,000 | 1,226,000 | $ 463,000 | 1,520,000 | |
Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares price (in dollars per share) | $ 2.95 | ||||
Common Stock | Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued (in shares) | 238,500 | ||||
Shares issued | $ 700,000 | ||||
Shares price (in dollars per share) | $ 2.95 | ||||
Compensation cost not yet recognized, period for recognition | 4 years | ||||
Common Stock | Executive Officer | General and administrative | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 0 | $ 200,000 | $ 0 | $ 200,000 |
Earnings Per Share - Components
Earnings Per Share - Components of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 1,873 | $ 2,509 | $ 4,611 | $ 5,550 |
Dividends paid to participating securities | 0 | (18,987) | 0 | (18,987) |
Net income / (loss) attributable to common stockholders | $ 1,873 | $ (16,478) | $ 4,611 | $ (13,437) |
Weighted average common shares outstanding — basic (in shares) | 45,602,061 | 2,706,369 | 45,564,059 | 2,671,783 |
Dilutive effect of stock options (in shares) | 1,921,126 | 0 | 1,841,452 | 0 |
Weighted average common shares outstanding — diluted (in shares) | 47,523,187 | 2,706,369 | 47,405,511 | 2,671,783 |
Net income / (loss) per share: | ||||
Earnings per share, basic (in dollars per shares) | $ 0.04 | $ (6.09) | $ 0.10 | $ (5.03) |
Earnings per share, diluted (in dollars per shares) | $ 0.04 | $ (6.09) | $ 0.10 | $ (5.03) |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Securities Excluded from Calculation of Diluted Weighted Average Common Shares Outstanding Due to Anti-dilutive Effect (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Series A Redeemable Convertible Preferred Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from the calculation of diluted weighted average common shares outstanding | 0 | 1,998,257 | 0 | 1,998,257 |
Series B Redeemable Convertible Preferred Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from the calculation of diluted weighted average common shares outstanding | 0 | 1,809,685 | 0 | 1,809,685 |
Series B-1 Redeemable Convertible Preferred Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from the calculation of diluted weighted average common shares outstanding | 0 | 82,934 | 0 | 82,934 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from the calculation of diluted weighted average common shares outstanding | 119,750 | 507,375 | 617,072 | 588,675 |
Common stock subject to repurchase | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from the calculation of diluted weighted average common shares outstanding | 53,869 | 156,009 | 53,869 | 156,009 |
Significant Service Providers (
Significant Service Providers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | |||||
Trade accounts receivable | $ 27,502 | $ 27,502 | $ 21,348 | ||
Service Provider Concentration Risk | Revenue | 10 Largest Service Providers | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 59.90% | 64.20% | 60.50% | 63.60% | |
Service Provider Concentration Risk | Revenue | Minimum | Service Provider A | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 10.00% | 10.00% | 10.00% | 15.00% | |
Service Provider Concentration Risk | Revenue | Minimum | Service Provider B | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 10.00% | ||||
Service Provider Concentration Risk | Revenue | Maximum | Service Provider A | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 15.00% | 20.00% | 15.00% | 20.00% | |
Service Provider Concentration Risk | Revenue | Maximum | Service Provider B | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 20.00% | ||||
Service Provider Concentration Risk | Trade Accounts Receivable | Service Provider A | |||||
Concentration Risk [Line Items] | |||||
Trade accounts receivable | $ 2,800 | $ 2,800 | 2,700 | ||
Service Provider Concentration Risk | Trade Accounts Receivable | Service Provider B | |||||
Concentration Risk [Line Items] | |||||
Trade accounts receivable | $ 3,100 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate (percent) | 34.30% | 39.90% | 35.80% | 40.10% | |
Valuation allowance | $ 0 | $ 0 | $ 0 | ||
Unrecognized tax benefits related to research and development tax credits (less than $0.1 million) | 100,000 | 100,000 | |||
Liability for uncertain tax positions | $ 600,000 | $ 600,000 | $ 500,000 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)segment | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting [Abstract] | |||||
Number of reportable segments | segment | 2 | ||||
Segment Reporting Information [Line Items] | |||||
Revenue | $ 64,423 | $ 51,949 | $ 123,466 | $ 97,960 | |
Operating income | 2,808 | 4,277 | 7,069 | 9,403 | |
Total Assets | 241,930 | 241,930 | $ 226,095 | ||
Operating Segments | Alarm.com | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 61,775 | 50,753 | 117,785 | 95,618 | |
Operating income | 4,376 | 9,370 | 11,243 | 18,330 | |
Total Assets | 231,799 | 231,799 | 215,315 | ||
Operating Segments | Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 4,088 | 1,580 | 7,935 | 3,641 | |
Operating income | (1,552) | (5,082) | (4,235) | (8,906) | |
Total Assets | 10,131 | 10,131 | 10,780 | ||
Intersegment Eliminations | Alarm.com | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | (754) | (130) | (1,340) | (520) | |
Operating income | (79) | (33) | (126) | (171) | |
Total Assets | 0 | 0 | 0 | ||
Intersegment Eliminations | Other | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | (686) | (254) | (914) | (779) | |
Operating income | 63 | $ 22 | 187 | $ 150 | |
Total Assets | $ 0 | $ 0 | $ 0 | ||
Segment Concentration Risk | Revenue | Alarm.com | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk percentage | 95.00% | 97.00% | 94.00% | 97.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - Installation Partner - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Sep. 30, 2014 | |
Related Party Transaction [Line Items] | ||||||
Ownership percentage in equity method investment | 48.20% | 48.20% | ||||
Equity Method Investee | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts payable to related party | $ 100 | $ 100 | $ 500 | |||
Interest income from related party | 6 | $ 6 | 12 | $ 11 | ||
Equity Method Investee | Secured Promissory Note | ||||||
Related Party Transaction [Line Items] | ||||||
Related party notes receivable, face amount | $ 300 | |||||
Notes receivable, Interest rate | 8.00% | |||||
Equity Method Investee | Cost of Hardware and Other Revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses incurred from related party | $ 300 | $ 200 | $ 700 | $ 500 |