Alarm.com (ALRM) 10-Q 9 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 01, 2019
Document and Entity Information [Abstract]
Entity Central Index Key	0001459200
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	false
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding (in shares)		48,332,829

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2019	Mar. 31, 2018
Revenue:
Total revenue		$ 112,335	$ 92,756
Cost of revenue:
Total cost of revenue	[1]	38,950	28,377
Operating expenses:
Sales and marketing		13,228	10,822
General and administrative		19,212	16,162
Research and development		26,496	20,377
Amortization and depreciation		5,228	5,025
Total operating expenses		64,164	52,386
Operating income		9,221	11,993
Interest expense		(821)	(672)
Other income, net		852	396
Income before income taxes		9,252	11,717
Provision for income taxes		242	1,202
Net income		9,010	10,515
Income allocated to participating securities		0	(3)
Net income attributable to common stockholders		$ 9,010	$ 10,512
Net income per share:
Basic (in dollars per share)		$ 0.19	$ 0.22
Diluted (in dollars per share)		$ 0.18	$ 0.21
Weighted average common shares outstanding:
Basic (in shares)		48,172,243	47,226,382
Diluted (in shares)		50,172,818	49,268,255
SaaS and license
Revenue:
Total revenue		$ 80,055	$ 67,988
Cost of revenue:
Total cost of revenue	[1]	12,325	10,806
Hardware and other
Revenue:
Total revenue		32,280	24,768
Cost of revenue:
Total cost of revenue	[1]	$ 26,625	$ 17,571
[1]	Exclusive of amortization and depreciation shown in operating expenses below.

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 122,442	$ 146,061
Accounts receivable, net	56,123	49,510
Inventory, net	25,714	22,990
Other current assets	36,302	9,502
Total current assets	240,581	228,063
Property and equipment, net	29,366	27,757
Intangible assets, net	75,560	79,067
Goodwill	63,591	63,591
Deferred tax assets	28,817	28,952
Operating lease right-of-use assets	28,413
Other assets	13,574	13,555
Total Assets	479,902	440,985
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	57,155	58,430
Accrued compensation	8,563	13,484
Deferred revenue	3,698	3,356
Operating lease liabilities	6,227
Total current liabilities	75,643	75,270
Deferred revenue	7,838	7,820
Long-term debt	66,000	67,000
Operating lease liabilities	36,305
Other liabilities	1,620	13,306
Total liabilities	187,406	163,396
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding as of March 31, 2019 and December 31, 2018.	0	0
Common stock, $0.01 par value, 300,000,000 shares authorized; 48,249,988 and 48,103,038 shares issued; and 48,249,211 and 48,102,081 shares outstanding as of March 31, 2019 and December 31, 2018, respectively.	482	481
Additional paid-in capital	346,998	341,139
Accumulated deficit	(54,984)	(64,031)
Total stockholders’ equity	292,496	277,589
Total liabilities and stockholders’ equity	$ 479,902	$ 440,985

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
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)	48,249,988	48,103,038
Common stock, shares outstanding (in shares)	48,249,211	48,102,081

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows (used in) / from operating activities:
Net income	$ 9,010	$ 10,515
Adjustments to reconcile net income to net cash (used in) / from operating activities:
Provision for doubtful accounts	260	13
Reserve for product returns	(120)	0
Amortization on patents and tooling	167	236
Amortization and depreciation	5,228	5,025
Amortization of debt issuance costs	27	27
Amortization of operating lease right-of-use assets	1,478
Deferred income taxes	135	204
Stock-based compensation	4,266	2,669
Changes in operating assets and liabilities:
Accounts receivable	(6,753)	(3,013)
Inventory	(2,724)	1,287
Other current and non-current assets	(2,367)	(5,563)
Accounts payable, accrued expenses and other current liabilities	(9,460)	(7,001)
Deferred revenue	360	(545)
Other liabilities	(694)	(334)
Cash flows (used in) / from operating activities	(1,187)	3,520
Cash flows used in investing activities:
Additions to property and equipment	(2,962)	(3,047)
Issuances of notes receivable	(20,061)	0
Cash flows used in investing activities	(23,023)	(3,047)
Cash flows from / (used in) financing activities:
Repayments of credit facility	(1,000)	(1,000)
Issuances of common stock from equity based plans	1,591	996
Cash flows from / (used in) financing activities	591	(4)
Net (decrease) / increase in cash and cash equivalents	(23,619)	469
Cash and cash equivalents at beginning of the period	146,061	96,329
Cash and cash equivalents at end of the period	$ 122,442	$ 96,798

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands	Total	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit
Balance (in shares) at Dec. 31, 2017		0	47,202
Balance at Dec. 31, 2017	$ 232,827	$ 0	$ 472	$ 321,032	$ (88,677)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued in connection with equity based plans (in shares)			86
Common stock issued in connection with equity based plans	996		$ 1	995
Vesting of common stock subject to repurchase (in shares)			3
Vesting of common stock subject to repurchase	14			14
Stock-based compensation	2,784			2,784
Net income	10,515				10,515
Balance (in shares) at Mar. 31, 2018		0	47,291
Balance at Mar. 31, 2018	250,258	$ 0	$ 473	324,825	(75,040)
Balance (in shares) at Dec. 31, 2018		0	48,102
Balance at Dec. 31, 2018	277,589	$ 0	$ 481	341,139	(64,031)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued in connection with equity based plans (in shares)			147
Common stock issued in connection with equity based plans	1,591		$ 1	1,590
Vesting of common stock subject to repurchase	2			2
Stock-based compensation	4,267			4,267
Net income	9,010				9,010
Balance (in shares) at Mar. 31, 2019		0	48,249
Balance at Mar. 31, 2019	$ 292,496	$ 0	$ 482	$ 346,998	$ (54,984)

Organization

Organization	3 Months Ended
	Mar. 31, 2019
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 for the intelligently connected property. We offer a comprehensive suite of cloud-based solutions for the smart residential and commercial property , including interactive security, video monitoring, intelligent automation and energy management. Millions of property owners depend on our technology to intelligently secure, monitor and manage their residential and commercial properties. Our solutions are delivered through an established network of over 8,000 trusted service provider partners, who are experts at selling, installing and supporting our solutions. We derive revenue from the sale of our cloud-based Software-as-a-Service, or SaaS, services, license fees, software, hardware, activation fees and other revenue. Our fiscal year ends on December 31.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies 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, or GAAP, for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission, or the 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, 2018 included in our Annual Report on Form 10-K filed with the SEC on March 1, 2019 , or the Annual Report. The condensed consolidated balance sheet as of December 31, 2018 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 months ended March 31, 2019 are not necessarily indicative of the results that can be expected for our entire fiscal year ending December 31, 2019 . 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 at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Our estimates, judgments and assumptions are continually evaluated based on available information and experience. Because of the use of estimates inherent in the financial reporting process, actual results could differ from those estimates. Estimates are used when accounting for revenue recognition, allowances for doubtful accounts, allowance for hardware returns, estimates of obsolete inventory, long-term incentive compensation, stock-based compensation, income taxes, legal reserves, contingent consideration and goodwill and intangible assets. Significant Accounting Policies Except for as disclosed herein, there have been no other material changes to our significant accounting policies during the three months ended March 31, 2019 from those disclosed in our Annual Report. Revenue Recognition and Deferred Revenue We derive our revenue from three primary sources: the sale of cloud-based SaaS services on our integrated Alarm.com platform, the sale of licenses and services on our non-hosted software platform, or Software platform, and the sale of hardware products. We sell our platform and hardware solutions to service provider partners that resell our solutions and hardware to residential and commercial property owners, who are the service provider partners’ customers. Our subscribers consist of all of the properties maintained by those residential and commercial property owners to which we are delivering at least one of our solutions. We also sell our hardware to distributors who resell the hardware to service provider partners. We enter into contracts with our service provider partners that establish pricing for access to our platform solutions and for the sale of hardware. These contracts typically have an initial term of one year, with subsequent renewal terms of one year. Our service provider partners typically enter into contracts with our subscribers, which our service provider partners have indicated range from three to five years in length. Our hardware includes cellular radio modules that enable access to our cloud-based platforms, as well as video cameras, image sensors and other peripherals. Our service provider partners may purchase our hardware in anticipation of installing the hardware in a residential or commercial property when they create a new subscriber account, or for use in existing subscriber properties. The purchase of hardware occurs in a transaction that is separate and typically in advance of the purchase of our platform services. The performance obligation is satisfied when the hardware is received by our service provider partner or distributor. Service provider partners transact with us to purchase our platform solutions and resell our solutions to a new subscriber, or to upgrade or downgrade the solutions of an existing subscriber, at which time the subscriber’s access to our platform solutions is enabled and the delivery of the services commences. Our performance obligation related to providing our platform solutions is satisfied on a daily basis as the subscriber uses the platform services. The purchase of platform solutions and the purchase of hardware are separate transactions as revenue is recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We generate all of our revenue from contracts with customers. SaaS and license revenue associated with our contracts is invoiced and revenue is recognized at an amount that corresponds directly with the value of the performance completed to date. Additionally, the consideration received from hardware sales corresponds directly with the stand-alone selling price of the hardware. As a result, we have elected to use the practical expedient related to the amount of transaction price allocated to the unsatisfied performance obligations and therefore, we have not disclosed the total remaining revenue expected to be recognized on all contracts or the expected period over which the remaining revenue would be recognized for the current period or any period presented before January 1, 2018. To determine the transaction price, we analyze all of the performance obligations included in the contract. We consider the terms of the contract and our customary business practices, which typically do not include financing components or non-cash consideration. We have variable consideration in the form of retrospective volume discounts, rebate incentives, restocking fees and assurance-type warranties. The significant inputs related to variable consideration include the volume and amount of products and services sold historically and expected to be sold in the future, the availability and performance of our services and the historical and expected number of returns. Depending on the type of variable consideration and its predictability, we may apply an “expected value” approach or a “most likely amount” approach. We estimate the variable consideration at the onset of a contract and include the variable consideration within the transaction price if it is probable that a significant reversal of the variable consideration would not occur in the future. When determining whether the amount of variable consideration included in the transaction price should be constrained, we look at the history of hardware purchased and subscribers added by our service provider partners to estimate the likelihood of those service provider partners obtaining the retrospective volume discounts and rebates. At times, our contracts include consideration payable to a customer in the form of fixed discounts or rebates. We record the consideration payable to a customer as a reduction to the transaction price resulting in a reduction to revenue over the service period. If we enter into contracts that contain multiple promised services, we evaluate which of the promised services represent separate performance obligations based on whether or not the promised services are distinct and whether or not the services are separable from other promises in the contract. If these criteria are met, then we allocate the transaction price to the performance obligations using the relative stand-alone selling price method at contract inception. In determining the relative estimated selling prices, we consider market conditions, entity-specific factors and information about the customer or class of customer. Any discount within the contract is allocated proportionately to all of the separate performance obligations in the contract unless the terms of discount relate specifically to the entity’s efforts to satisfy some but not all of the performance obligations. For our standard service provider agreements, we have used a portfolio approach for purposes of revenue recognition, as each agreement has similar characteristics and we do not expect the effects of applying this approach would have a material impact on our financial statements as compared to assessing each agreement individually. SaaS and License Revenue We generate the majority of our SaaS and license revenue primarily from monthly fees charged to our service provider partners sold on a per subscriber basis for access to our cloud-based intelligently connected property platform and related solutions. Our fees per subscriber vary based upon the service plan and features utilized. Under the terms of our contractual arrangements with our service provider partners, we bill a monthly fee to our service provider partners in advance of the month of service, with the exception of the initial partial month of service, which is paid in arrears. Due to the limited period of time between receipt of payment and delivery of service, we have not accounted for these advance payments as significant financing components. We typically transfer the promised SaaS services to our customers over time, which is evidenced by the fact that the customers receive and consume the benefits provided by our performance of the services as such services are rendered. As a result, we recognize revenue from SaaS services on a monthly basis as we satisfy our performance obligations. We have demonstrated that we can sell our SaaS offering on a stand-alone basis, as it can be sold separately from hardware and activation services. As there is neither a minimum required initial service term nor a stated renewal term in our contractual arrangements, we recognize revenue over the period of service, which is monthly. Our service provider partners typically incur and pay the same monthly fee per subscriber account for the entire period a subscriber account is active. We offer multiple service level packages for our platform solutions including a range of solutions and a range of a la carte add-ons for additional features. The fee paid by our service provider partners each month for the delivery of our solutions is based on the combination of packages and add-ons enabled for each subscriber. We utilize tiered pricing plans where our service provider partners may receive prospective pricing discounts driven by volume. We also generate SaaS and license revenue from the fees paid to us when we license our intellectual property to third parties for use of our patents. We bill a monthly fee to third parties based on the number of customers that were active during the prior month. We apply the usage-based royalty exception to recognize license revenue because the sole or predominant item to which the royalty relates is the license of intellectual property. Under the usage-based royalty exception, we recognize revenue on a monthly basis over the period of service. In addition, in certain markets our EnergyHub subsidiary sells its demand response service for an annual service fee, with pricing based on the number of subscribers or amount of aggregate electricity demand made available for a utility’s or market’s control. Software License Revenue Our SaaS and license revenue also includes our software license revenue from monthly fees charged to service providers sold on a per subscriber basis for access to our Software platform. The non-hosted software for interactive security, automation and related solutions is typically deployed and operated by the service provider in its own network operations center. Our agreements for the Software platform solution typically include software and services, such as post-contract customer support, or PCS. Software sales that include multiple elements are typically allocated to the various elements using the relative stand-alone selling price method. We apply the usage-based royalty exception to recognize license revenue associated with software hosted by our customers because the predominant item to which the royalty relates is the license of intellectual property. Under the usage-based royalty exception, we recognize revenue on a monthly basis over the period during which the services are expected to be performed. Under the terms of our contractual arrangements with our service provider partners, we are entitled to payment of a monthly fee that is billed per subscriber for the month of service. Our software license revenue during the three months ended March 31, 2019 was $11.0 million , as compared to $9.9 million for the same period in the prior year. Hardware and Other Revenue We generate hardware and other revenue primarily from the sale of video cameras and cellular radio modules that provide access to our cloud-based platforms and, to a lesser extent, the sale of other devices, including image sensors and peripherals. We primarily transfer hardware to our customers upon delivery to the customer, which corresponds with the time at which the customer obtains control of the hardware. As a result, we recognize hardware and other revenue as we satisfy our performance obligations, which occurs when the hardware is received by our service provider partner or distributor, net of a reserve for estimated returns. There are a few contracts in which we provide shipping and handling services to the customer after control of the hardware transfers to the customer. In these instances, we have elected to account for shipping and handling costs as activities performed to fulfill the promise to transfer hardware to the customer and not as a separate promised service. Amounts due from the sale of hardware are payable in accordance with the terms of our agreements with our service provider partners or distributors, and are not contingent on resale to end-users, or to service provider partners in the case of sales of hardware to distributors. Payment for our hardware is typically due within 30 days from shipment, with the exception of certain hardware finance arrangements, which are paid over a 36-month period. Our distributors sell directly to our service provider partners under terms between the two parties. When determining the amount of consideration we expect to be entitled to for the sale of our hardware, we estimate the variable consideration associated with customer returns. We record a reserve against revenue for hardware returns based on historical returns. For the twelve months ended March 31, 2019 , our reserve against revenue for hardware returns was 1% , as compared to 2% for the same period in the prior year. We evaluate our hardware reserve on a quarterly basis or if there is an indication of significant changes in return experience. Historically, our returns of hardware have not significantly differed from our estimated reserve. Additionally, we provide assurance-type warranties related to the intended functionality of the products and services provided and those warranties typically allow for the return of hardware up to one year past the date of sale. These warranties were not identified as separate performance obligations. Hardware and other revenue may also include activation fees charged to some of our service provider partners for activation of a new subscriber account on our platforms, as well as fees paid by service provider partners for our marketing services. Our service provider partners use services on our platforms, such as support tools and applications, to assist in the installation of our solutions in subscriber properties. This installation marks the beginning of the service period on our platforms and, on occasion, we earn activation revenue for fees charged for this service. The activation fee is non-refundable, separately negotiated and specified in our contractual arrangements with our service provider partners and is charged to the service provider partner for each subscriber activated on our platforms. The decision whether to charge an activation fee is based in part on the expected number of subscribers to be added by our service provider partners and as a result, many of our largest service provider partners do not pay an activation fee. Activation fees are not offered on a stand-alone basis separate from our SaaS offering and are billed and received at the beginning of the arrangement. We record activation fees initially as deferred revenue and we recognize these fees ratably over the expected term of the subscribers’ account which we estimate is ten years based on our annual attrition rate. The portion of these activation fees included in current and long-term deferred revenue as of our balance sheet date represents the amounts that will be recognized ratably as revenue over the following twelve months, or longer as appropriate, until the ten-year expected term is complete. The balance of deferred revenue for activation fees was $8.9 million and $9.2 million as of March 31, 2019 and December 31, 2018 , respectively, which combines current and long-term balances. Cost of Revenue Our cost of SaaS and license revenue primarily includes the amounts paid to wireless network providers and, to a lesser extent, the costs of running our network operations centers which are expensed as incurred, as well as patent and royalty costs in connection with technology licensed from third-party providers. Our cost of SaaS and license revenue also includes our cost of software license revenue, which primarily includes the payroll and payroll-related costs of the department dedicated to providing service exclusively to those service providers that host the Software platform. Our cost of software license revenue during each of the three months ended March 31, 2019 and 2018 was $0.4 million . Our cost of hardware and other revenue primarily includes cost of raw materials, tooling and amounts paid to our third-party manufacturer for production and fulfillment of our cellular radio modules and image sensors, and procurement costs for our video cameras, which we purchase from an original equipment manufacturer, and other devices. Our cost of hardware and other revenue also includes royalty costs in connection with technology licensed from third-party providers. We record the cost of SaaS and license revenue as expenses are incurred, which corresponds to the delivery period of our services to our subscribers. We record the cost of hardware and other revenue when the hardware and other services are delivered to the service provider partner, which occurs when control of the hardware and other services transfers to the service provider partner. Our cost of revenue excludes amortization and depreciation. Contract Asset and Contract Liability Balances At contract inception, we assess the goods and services promised in our contracts with customers and identify a performance obligation for each distinct promise to transfer a good or service, or bundle of goods or services. To identify the performance obligations, we consider all of the goods or services promised in the contract, whether explicitly stated or implied based on customary business practices. We record a contract asset when we satisfy a performance obligation by transferring a promised good or service. Contract assets can be conditional or unconditional depending on whether another performance obligation must be satisfied before payment can be received. We receive payments from our service provider partners based on the billing schedule established in our contracts. All of the accounts receivable presented in the balance sheet represent unconditional rights to consideration. We do not have any assets from contracts containing conditional rights and we do not have any assets from satisfied performance obligations that have not been invoiced. We recognize an asset related to the costs incurred to obtain a contract only if we expect to recover those costs and we would not have incurred those costs if the contract had not been obtained. We recognize an asset from the costs incurred to fulfill a contract if the costs (i) are specifically identifiable to a contract, (ii) enhance resources that will be used in satisfying performance obligations in future and (iii) are expected to be recovered. Our contract assets consist of capitalized commission costs. Based on the policy above, we capitalize a portion of our commission costs as an incremental cost of obtaining a contract. When calculating the incremental cost of obtaining a contract, we exclude any commission costs related to metrics that could be satisfied without obtaining a contract, including training-related metrics. We amortize our commission costs over a period of three years, which is consistent with the period over which the products and services related to the commission are transferred to the customer. The three-year period was determined based on our review of historical enhancements and upgrades to our products and services. We applied the portfolio approach to account for the amortization of contract costs as each contract has similar characteristics. The current portion of capitalized commission costs is included in other current assets within our condensed consolidated balance sheets. The non-current portion of capitalized commission costs is reflected in other assets within our condensed consolidated balance sheets. We amortized capitalized commission costs of $0.5 million during each of the three months ended March 31, 2019 and 2018 . We review the capitalized costs for impairment at least annually. Impairment exists if the carrying amount of the asset recognized from contract costs exceeds the remaining amount of consideration we expect to receive in exchange for providing the goods and services to which such asset relates, less the costs that relate directly to providing those good and services and that have not been recognized as an expense. We did no t record an impairment loss on our capitalized commission costs or any other contract assets during the three months ended March 31, 2019 and 2018 . The changes in our contract assets are as follows (in thousands): Three Months Ended 2019 2018 Beginning of period balance $ 2,881 $ — Commission costs capitalized in period 716 3,443 Amortization of capitalized commission costs (514 ) (490 ) End of period balance $ 3,083 $ 2,953 Contract liabilities include payments received in advance of performance under the contract, and are realized with the associated revenue recognized under the contract. All of the deferred revenue presented in the balance sheet represents contract liabilities resulting from advance cash receipts from customers or amounts billed in advance to customers from the sale of services. Changes in deferred revenue are due to our performance under the contract as well as to cash received from new contracts for which services have not been provided. The changes in our contract liabilities are as follows (in thousands): Three Months Ended 2019 2018 Beginning of period balance $ 11,176 $ 12,678 Revenue deferred in period 1,555 590 Revenue recognized from amounts included in contract liabilities (1,195 ) (1,135 ) End of period balance $ 11,536 $ 12,133 The revenue recognized from amounts included in contract liabilities primarily relates to prepayment contracts with customers as well as payments of activation fees. Leases We determine if an arrangement contains a lease at the inception of the arrangement. As part of the lease determination process, we assess several factors, including, but not limited to, whether we have the right to control and direct the use of the asset and whether the other party has a substantive substitution right. If we enter into leases that contain multiple components, we identify separate lease components based on whether or not the right to use the underlying assets is distinct and either highly dependent or highly interrelated with other rights in the contract. We also evaluate whether there are any non-lease components in the arrangement. For certain classes of underlying assets, such as data centers, we have elected not to separate non-lease components from lease components. For all other classes of underlying assets, if separate lease and non-lease components are identified, we allocate the consideration in the contract to the lease and non-lease components using the relative stand-alone selling price method at the lease inception. Many of our leases include options to renew at our sole discretion. We also have several leases that provide us an option to terminate the lease prior to the end of the lease term. These renewal and termination options are included in the lease term at the commencement date when we are reasonably certain the options will be exercised. When assessing the likelihood of electing these options, we consider the length of the renewal period, market conditions, our expansion plans, the existence of a termination penalty, as well as other factors. Our lease agreements do not contain any material residual value guarantees, restrictive covenants or variable lease payments. Right-of-use, or ROU, assets represent our right to use an underlying asset for the term of the lease and lease liabilities represent our obligation to make lease payments throughout the term of the lease. ROU assets and lease liabilities are recognized as of the commencement date of the lease based on the present value of contractual lease payments due over the term of the lease. We use our incremental borrowing rate to determine the present value of the lease payments, as our leases do not state the rate implicit in the lease. Our incremental borrowing rate is determined on a collateralized basis at the commencement date of the lease. ROU assets and lease liabilities resulting from operating leases are recorded on our condensed consolidated balance sheets. We did no t have any finance leases or subleases as of March 31, 2019 and December 31, 2018 . Lease expense is recognized on a straight-line basis over the term of the lease and is recorded in general and administrative expense. Some of our leases include tenant improvement allowances, which are recorded when we are reasonably certain to utilize the allowance and are amortized on a straight-line basis over the shorter of the lease terms or the asset lives. Leases with an initial lease term of twelve months or less are considered short-term leases. Short-term leases are not recorded on our condensed consolidated balance sheets. Expenses associated with short-term leases are recognized on a straight-line basis over the term of the lease and are recorded in general and administrative expense. Short-term lease costs were immaterial for the three months ended March 31, 2019 . Recent Accounting Pronouncements Adopted On February 25, 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2016-02, “Leases (Topic 842)” or Topic 842, which requires lessees to recognize operating and financing lease liabilities and corresponding ROU 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. In July 2018, the FASB amended the update to allow entities to apply the transition requirements of Topic 842 at the adoption date rather than at the beginning of the earliest comparative period presented. Accordingly, the amendments in Topic 842 were effective for us beginning January 1, 2019. On January 1, 2019, we adopted Topic 842 by applying the modified retrospective approach to all of our leases in effect as of that date. We used the optional transition method, which required us to record the initial effect of Topic 842 as a cumulative-effect adjustment to retained earnings on January 1, 2019. Additionally, we elected to use the package of practical expedients for the adoption of Topic 842, which allowed us not to reassess: (i) whether any expired or existing contracts are or contain leases, (ii) lease classification for any expired or existing leases and (iii) whether initial direct costs for any existing leases qualify for capitalization under Topic 842. We also used the hindsight practical expedient when determining the lease term and assessing impairment of ROU assets. The adoption of Topic 842 resulted in the recording of the following amounts on our condensed consolidated balance sheets (in thousands): Balance Sheet Caption As of January 1, 2019 Property and equipment, net 1,057 Operating lease right-of-use assets 28,432 Operating lease liabilities (current) 5,699 Operating lease liabilities (noncurrent) 36,957 Accounts payable, accrued expenses and other current liabilities (1,548 ) Other liabilities (11,656 ) Accumulated deficit 37 The adoption of Topic 842 did not materially impact our condensed consolidated statements of operations, condensed consolidated statement of equity and condensed consolidated statements of cash flows. Not Yet Adopted On June 16, 2016, the FASB issued ASU 2016-13, " Financial Instruments - Credit Losses (Topic 326)," which provides guidance designed to provide financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. From November 2018 to April 2019, amendments to Topic 326 were issued to clarify numerous accounting topics. When determining such expected credit losses, the guidance requires companies to apply a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendment is effective on a modified retrospective basis for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for fiscal years and interim periods beginning after December 15, 2018. We are currently assessing the impact this pronouncement may have on our trade receivables and notes receivables. On August 28, 2018, the FASB issued ASU 2018-13, " Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement," which provides guidance designed to improve the effectiveness of fair value measurement disclosures in notes to the financial statements. The update removes several existing disclosure requirements, including, but not limited to: (i) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (ii) the policy for timing of transfers between levels and (iii) the valuation processes for Level 3 fair value measurements. The update also adds additional disclosure requirements for public companies, including but not limited to: (i) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and (ii) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The update also modifies and clarifies several existing disclosure requirements. The amendment in this update is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The additional disclosure requirements and one of the modifications to an existing disclosure requirement should be applied prospectively while all other disclosure changes should be applied retrospectively to all periods presented upon the effective date. Early adoption is permitted. We are currently assessing the impact this pronouncement may have on our fair value measurement disclosures; however, this pronouncement is not expected to have a material impact on our consolidated financial statements.

Accounts Receivable, Net

Accounts Receivable, Net	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
Accounts Receivable, Net	Accounts Receivable, Net The components of accounts receivable, net are as follows (in thousands): March 31, December 31, Accounts receivable $ 59,417 $ 52,850 Allowance for doubtful accounts (1,655 ) (1,425 ) Allowance for product returns (1,639 ) (1,915 ) Accounts receivable, net $ 56,123 $ 49,510 For the three months ended March 31, 2019 , we recorded a provision for doubtful accounts of $0.3 million , as compared to less than $0.1 million for the same period in the prior year. For the three months ended March 31, 2019 , we recorded a reduction to the reserve for product returns in our hardware and other revenue of $0.1 million , as compared to no reserve recorded for the same period 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	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Inventory	Inventory, Net The components of inventory, net are as follows (in thousands): March 31, December 31, Raw materials $ 7,602 $ 6,396 Finished goods 18,112 16,594 Total inventory, net $ 25,714 $ 22,990

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Net	Goodwill and Intangible Assets, Net The changes in goodwill by reportable segment are outlined below (in thousands): Alarm.com Other Total Balance as of January 1, 2019 $ 63,591 $ — $ 63,591 Goodwill acquired — — — Balance as of March 31, 2019 $ 63,591 $ — $ 63,591 There were no impairments of goodwill during the three months ended March 31, 2019 and 2018 . The following table reflects changes in the net carrying amount of the components of intangible assets (in thousands): Customer Developed Trade Name Total Balance as of January 1, 2019 $ 77,264 $ 1,678 $ 125 $ 79,067 Amortization (3,177 ) (309 ) (21 ) (3,507 ) Balance as of March 31, 2019 $ 74,087 $ 1,369 $ 104 $ 75,560 We recorded $3.5 million of amortization related to our intangible assets for the three months ended March 31, 2019 , as compared to $3.8 million for the same period in the prior year. There were no impairments of long-lived intangible assets during the three months ended March 31, 2019 and 2018 . The following tables reflect the weighted average remaining life and carrying value of finite-lived intangible assets (in thousands, except weighted-average remaining life): March 31, 2019 Gross Accumulated Net Weighted- Customer relationships $ 103,926 $ (29,839 ) $ 74,087 9.7 Developed technology 13,959 (12,590 ) 1,369 2.0 Trade name 1,084 (980 ) 104 2.2 Other 234 (234 ) — — Total intangible assets $ 119,203 $ (43,643 ) $ 75,560 December 31, 2018 Gross Accumulated Net Weighted- Customer relationships $ 103,926 $ (26,662 ) $ 77,264 9.9 Developed technology 13,959 (12,281 ) 1,678 2.1 Trade name 1,084 (959 ) 125 2.4 Other 234 (234 ) — — Total intangible assets $ 119,203 $ (40,136 ) $ 79,067

Other Assets

Other Assets	3 Months Ended
	Mar. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets	Other Assets Purchases of Patents and Patent Licenses From time to time, we enter into agreements to purchase patents or patent licenses. The carrying value, net of amortization, of our purchased patents and patent licenses was $2.8 million and $2.9 million as of March 31, 2019 and December 31, 2018 , respectively. As of March 31, 2019 and December 31, 2018 , $0.5 million of patent costs were included in other current assets and $2.3 million and $2.4 million of patent costs were included in other assets, respectively. We have $5.9 million of historical cost in purchased patents and patent licenses. We are amortizing the patent costs over the estimated useful lives of the patents, which range from three years to twelve years . Patent cost amortization of $0.1 million for the three months ended March 31, 2019 , as compared to $0.2 million for the same period in the prior year, was included in cost of SaaS and license revenue in our condensed consolidated statements of operations. Patent cost amortization of less than $0.1 million was included in amortization and depreciation in our condensed consolidated statements of operations for the three months ended March 31, 2019 . There was no amortization of patent costs included in amortization and depreciation during the three months ended March 31, 2018 . Loan to a Distribution Partner In September 2016, we entered into dealer and loan agreements with a distribution partner. The dealer agreement enables the distribution partner to resell our SaaS services and hardware to their subscribers. Under the loan agreements, we agreed to loan the distribution partner up to $4.0 million , collateralized by all assets owned by the distribution partner. The advance period for the loan was amended in August 2017 to begin each year on September 1 and end each year on December 31. Interest on the outstanding principal accrued at a rate per annum equal to the greater of 6.0% or the Eurodollar Base Rate, or LIBOR, plus 4.0% , as determined on the first date of each annual advance period. The repayment of principal and accrued interest was due in three installments beginning in July and ending in August following the advance period. The term date of the loan was August 31, 2019; however, the borrower had the option to extend the term of the loan for two successive terms of one year each. In May 2018, the loan agreement with our distribution partner was amended to convert the entire $4.0 million note receivable outstanding into a $4.0 million term loan. The term loan matures on July 31, 2022 and requires annual principal repayments of $1.0 million on July 31 of each year, commencing on July 31, 2019. The term loan also requires monthly interest payments, with interest accruing on the outstanding principal balance at a rate per annum equal to 6.0% through June 30, 2018 and a rate per annum equal to the LIBOR rate on the first of any interest period plus 7.0% beginning on July 1, 2018. As of March 31, 2019 and December 31, 2018 , $1.0 million of the note receivable balance was included in other current assets in our condensed consolidated balance sheets. As of March 31, 2019 and December 31, 2018 , $3.0 million of the note receivable balance was included in other assets in our condensed consolidated balance sheets. In April 2017, we entered into a subordinated credit agreement with an affiliated entity of the distribution partner and loaned the affiliated entity $3.0 million , with a maturity date of November 21, 2022. Interest on the outstanding principal balance accrues at a rate of 8.5% per annum and requires monthly interest payments. The $3.0 million loan receivable balance was included in other assets as of March 31, 2019 and December 31, 2018 . For the three months ended March 31, 2019 , we recognized $0.4 million of revenue from the distribution partners associated with these loans, as compared to $0.2 million for the same period in the prior year. Loan to a Hardware Supplier In October 2018, we entered into a subordinate convertible promissory note with one of our hardware suppliers, or the Promissory Note, which was amended in November 2018, January 2018 and February 2019 as a result of the hardware supplier's financial restructuring. The Promissory Note was in default as of March 31, 2019 . In March 2019, we entered into a separate secured promissory note with the same hardware supplier, which, together with the Promissory Note, we refer to as the Promissory Notes. Under the Promissory Notes, we agreed to provide the hardware supplier up to $7.4 million , collateralized by all assets owned by the supplier. Interest on the outstanding principal is accrued at a rate per annum equal to 12.0% , of which 6.0% per annum is payable in cash and the remaining 6.0% per annum is payable in kind. The repayment of accrued interest is due quarterly beginning with the quarter ended March 31, 2019. The repayment of principal is due at the term date, which is the earlier of (i) the five-year anniversary of the issuance date of each of the Promissory Notes, (ii) the occurrence of a change of control, (iii) one day following the maturity day of the hardware supplier's senior indebtedness or (iv) immediately upon the acceleration of the hardware supplier's senior indebtedness. In March 2019, we also purchased and acquired a secured promissory note, or the Acquired Promissory Note, that matured on March 30, 2019 and was originally executed between our hardware supplier and another third-party secured creditor. The Acquired Promissory Note had an outstanding balance of $26.6 million as of December 31, 2018, including interest, and was in default as of March 31, 2019 . Interest on the outstanding principal is accrued at a rate per annum equal to 13.0% . Under the terms of the Acquired Promissory Note, we paid $16.4 million to the third-party secured creditor in exchange for all of the rights associated with the Acquired Promissory Note, including a security interest and a right to enforce that interest against all assets owned by the hardware supplier. In addition to the $16.4 million paid in March 2019, we agreed to pay the third-party secured creditor an additional $6.0 million in September 2019, subject to certain contingencies measured as of May 4, 2019. Based on the outcome of those contingencies, we recorded a $6.0 million liability as of March 31, 2019 related to the Acquired Promissory Note, which was reflected in accounts payable, accrued expenses and other current liabilities. The fair value of the Acquired Promissory Note as of March 31, 2019 was $22.4 million , which represents the cash consideration already paid and the remaining cash consideration to be paid to the third party. As of March 31, 2019 and December 31, 2018 , the outstanding balance of the Promissory Notes and the Acquired Promissory Note excluding interest was $29.4 million and $3.3 million , and was included in other current assets and other assets, respectively, in our condensed consolidated balance sheets prior to any adjustments for impairment. Based on our recoverability assessment, we believed the $3.7 million funded under the Promissory Notes during the three months ended March 31, 2019 , and the fair value of the Acquired Promissory Note totaling $22.4 million , were not impaired as of March 31, 2019 . This assessment reflects our improved position as a secured creditor relative to other secured creditors of the hardware supplier, as well as the value of the collateral securing the Promissory Notes and Acquired Promissory Note, which exceeded the $29.4 million outstanding balance as of March 31, 2019 . On May 6, 2019, we entered into a forbearance agreement with the hardware supplier, or the Forbearance Agreement. Under the Forbearance Agreement, the hardware supplier agreed to pay us the outstanding balance of principal and interest under the Promissory Notes and Acquired Promissory Note before June 30, 2019. In consideration for the full and timely payments under the Forbearance Agreement, we have agreed to temporarily forbear from exercising the remedies available to us with respect to the collateral securing the Promissory Notes and Acquired Promissory Note.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2019
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 (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 accounts $ 94,255 $ — $ — $ 94,255 Total $ 94,255 $ — $ — $ 94,255 Liabilities: Subsidiary unit awards $ — $ — $ 185 $ 185 Total $ — $ — $ 185 $ 185 Fair Value Measurements on a Recurring Basis as of Fair value measurements in: Level 1 Level 2 Level 3 Total Assets: Money market accounts $ 117,392 $ — $ — $ 117,392 Total $ 117,392 $ — $ — $ 117,392 Liabilities: Subsidiary unit awards $ — $ — $ 385 $ 385 Total $ — $ — $ 385 $ 385 The following table summarizes the change in fair value of the Level 3 liabilities for subsidiary unit awards with significant unobservable inputs (in thousands): Three Months Ended 2019 2018 Beginning of period balance $ 385 $ 3,160 Total losses included in earnings — 31 Settlements (200 ) (2,802 ) End of period balance $ 185 $ 389 The money market accounts are 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 employees of our subsidiaries for cash awards contingent upon the subsidiary companies meeting certain financial milestones such as revenue, working capital, EBITDA and EBITDA margin. We account for these subsidiary awards using fair value and establish liabilities for the future payment for the repurchase of subsidiary units under the terms of the agreements based on estimating revenue, working capital, EBITDA and EBITDA margin of the subsidiary units over the periods of the 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 and future collection of financed customer receivables, the unobservable inputs, and we will record any changes in the employee's compensation expense. Some of the awards are subject to the employees' continued employment and therefore recorded on a straight-line basis over the remaining service period. During the three months ended March 31, 2019 , we settled $0.2 million of the liability related to the subsidiary unit awards. The remaining liability balances are included in either accounts payable, accrued expenses and other current liabilities or other liabilities in our condensed consolidated balance sheets (see Note 10 ). 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 months ended March 31, 2019 and 2018 . 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 months ended March 31, 2019 and 2018 .

Leases

Leases	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Leases	Leases We lease office space, data centers and office equipment under non-cancelable operating leases with various expiration dates through 2026. In August 2014, we signed a lease for office space in Tysons, Virginia, where we relocated our headquarters to in February 2016. We have subsequently entered into amendments to this lease to provide us with additional office space. The lease term ends in 2026, includes a five-year renewal option and a cumulative tenant improvement allowance of $10.8 million . As of March 31, 2019 , we had utilized $9.7 million of the total $10.8 million tenant improvement allowance. Supplemental information related to leases is presented in the table below (in thousands, except weighted-average term and discount rate): Three Months Ended March 31, 2019 Operating lease cost $ 1,803 Cash paid for amounts included in the measurement of operating lease liabilities 1,908 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 1,459 Weighted-average remaining lease term — operating leases 6.5 years Weighted-average discount rate — operating leases 3.0 % Maturities of lease liabilities are as follows (in thousands): Year Ended December 31, Operating Leases (1) Remainder of 2019 $ 5,591 2020 7,335 2021 7,159 2022 6,499 2023 6,097 2024 and thereafter 14,219 Total lease payments 46,900 Less: imputed interest (2) 4,368 Present value of lease liabilities $ 42,532 _______________ (1) Operating lease payments exclude $6.6 million of legally binding minimum lease payments for leases executed but not yet commenced. There were no options to extend lease terms that were reasonably certain of being exercised. (2) Imputed interest was calculated using the incremental borrowing rate applicable for each lease. Prior to our adoption of Topic 842, rent expense was $6.3 million , $6.2 million and $4.8 million for the years ended December 31, 2018, 2017 and 2016, respectively. The following table presents the future minimum lease payments under the non-cancelable operating leases as of December 31, 2018 prior to our adoption of Topic 842 (in thousands): Year Ended December 31, Minimum Lease Payments 2019 $ 7,044 2020 7,168 2021 6,974 2022 6,719 2023 6,348 2024 and thereafter 14,838 Total $ 49,091

Liabilities

Liabilities	3 Months Ended
	Mar. 31, 2019
Payables and Accruals [Abstract]
Liabilities	Liabilities The components of accounts payable, accrued expenses and other current liabilities are as follows (in thousands): March 31, December 31, Accounts payable $ 20,298 $ 20,214 Accrued expenses 34,672 34,557 Subsidiary unit awards 129 200 Other current liabilities 2,056 3,459 Accounts payable, accrued expenses and other current liabilities $ 57,155 $ 58,430 The components of other liabilities are as follows (in thousands): March 31, December 31, Deferred rent $ — $ 11,656 Other liabilities 1,620 1,650 Other liabilities $ 1,620 $ 13,306

Debt, Commitments and Contingen

Debt, Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
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 On October 6, 2017, we entered into a $125.0 million senior secured revolving credit facility, or the 2017 Facility, with SVB, as administrative agent, PNC Bank, National Association, as documentation agent, and a syndicate of lenders. Upon entry into the 2017 Facility, we borrowed $72.0 million , which was used to repay the previously outstanding balance under our previous credit facility. The 2017 Facility matures in October 2022 and includes an option to further increase the borrowing capacity to $175.0 million with the consent of the lenders. Costs incurred in connection with the 2017 Facility were capitalized and are being amortized as interest expense over the term of the 2017 Facility. The 2017 Facility is secured by substantially all of our assets, including our intellectual property. During each of the three months ended March 31, 2019 and 2018 , we repaid $1.0 million of the outstanding balance of the 2017 Facility. The outstanding principal balance on the 2017 Facility accrues interest at a rate equal to, at our option, either (1) LIBOR, plus an applicable margin based on our consolidated leverage ratio, or (2) the highest of (a) the Wall Street Journal prime rate, (b) the Federal Funds rate plus 0.50% , or (c) LIBOR plus 1.00% plus an applicable margin based on our consolidated leverage ratio. For the three months ended March 31, 2019 , we elected for the outstanding principal balance to accrue interest at LIBOR plus 1.50% , LIBOR plus 1.75% , LIBOR plus 2.00% , 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, greater than or equal to 2.00 :1.00 but less than 3.00 :1.00 and greater than or equal to 3.00 :1.00, respectively. The 2017 Facility also carries an unused line commitment fee of 0.20% . For the three months ended March 31, 2019 , the effective interest rate on the 2017 Facility was 4.88% , as compared to 3.77% for the same period in the prior year. The carrying value of the 2017 Facility was $66.0 million and $67.0 million as of March 31, 2019 and December 31, 2018 , respectively. The 2017 Facility includes a variable interest rate that approximates market rates and, as such, we classified the liability as Level 2 within the fair value hierarchy and determined that the carrying amount of the 2017 Facility approximated its fair value as of March 31, 2019 and December 31, 2018 . The 2017 Facility contains various financial and other covenants that require us to maintain a maximum consolidated leverage ratio not to exceed 3.50 :1.00 and a consolidated fixed charge coverage ratio of at least 1.25 :1.00. As of March 31, 2019 , we were in compliance with all financial and non-financial covenants and there were no events of default. On November 30, 2018, we amended the 2017 Facility to incorporate the parameters that must be met for us to repurchase our outstanding common stock under the stock repurchase program authorized by our board of directors on November 29, 2018 . Commitments and Contingencies Repurchase of Subsidiary Units 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 an award of subsidiary stock to the founder and president. The vesting of the award is based upon the subsidiary meeting certain minimum financial targets from the date of commercial availability, which was determined to be June 1, 2013, until the fourth anniversary. In 2016, we amended the term of the award, extending the valuation date for the first payment in cash to December 31, 2017, amending the financial targets and allowing for payments in cash based on the future collection of financed customer receivables from 2018 to 2020 that existed as of the valuation date. During the three months ended March 31, 2019 , we settled $0.2 million of the liability related to the subsidiary unit awards. We recorded a liability of $0.1 million in accounts payable, accrued expenses and other current liabilities and $0.1 million in other liabilities related to this commitment in our condensed consolidated balance sheet as of March 31, 2019 . We recorded a liability of $0.2 million in accounts payable, accrued expenses and other current liabilities and a liability of $0.2 million in other liabilities related to this commitment in our condensed consolidated balance sheet as of December 31, 2018 . 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 (see Note 7 ). 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 March 31, 2019 and December 31, 2018 , we had no outstanding letters of credit under the 2017 Facility. Legal Proceedings In September 2014, Icontrol Networks, Inc., or Icontrol, filed a Complaint in the United States District Court, District of Delaware, asserting that SecureNet Technologies, LLC, or SecureNet, infringes certain U.S. Patents owned by Icontrol, patents now owned by Alarm.com through a subsidiary. In March 2015, Icontrol voluntarily agreed to dismiss the case, reserving the right to refile. In September 2015, Icontrol refiled the case against SecureNet in the same district court alleging infringement of some of the same patents. In March 2017, Alarm.com acquired certain assets and intellectual property from Icontrol, including the patents in suit and the ongoing patent infringement lawsuit. The Court conducted a jury trial in February 2019, which resulted in a finding that upheld the validity of the patent claims in one of the patents at issue, but that SecureNet did not infringe certain claims of the three Icontrol patents in suit. Following entry of final judgment, Alarm.com filed a motion for a new trial and renewed request for judgment as a matter of law. On August 24, 2017, Alarm.com Incorporated and its wholly owned subsidiary ICN Acquisition, LLC, filed a patent infringement complaint against ipDatatel, in the United States District Court for the Eastern District of Texas. The parties subsequently stipulated to transfer the case to the Southern District of Texas. The complaint seeks injunctive relief to stop the further sale of the infringing ipDatatel’s products and systems, and damages for the infringement of Alarm.com’s patents. The complaint asserts that the technology in the ipDatatel products infringe one or more claims of Alarm.com’s patents: United States Patent Numbers 7,113,090; 7,633,385; 7,956,736; 8,478,871; and 9,141,276. If the litigation is successful, Alarm.com will be entitled to receive monetary damages, injunctive relief, and any other relief, including attorneys' fees, from ipDatatel. ipDatatel's motion for dismissal based on alleged patent ineligibility as to each patent in suit was denied without prejudice but ipDatatel renewed the motion. The Court stated it will issue a schedule for the remainder of the case after issuing an order on ipDatatel’s renewed motion. On July 26, 2018, ipDatatel answered the complaint by denying the patent infringement allegations and asserting several affirmative defenses, including invalidity and unenforceability. ipDatatel also asserted antitrust counterclaims based on alleged inequitable conduct in connection with the prosecution of one or more patents-in-suit. In September 2018, ipDataTel filed petitions for inter partes review of four of the patents-in-suit before the U.S. Patent Trial and Appeal Board, or PTAB. The PTAB has instituted proceedings related to two of those four patents-in-suit: U.S. Patent Nos. 7,956,736 and 8,478,871. On October 19, 2018, the Court issued a claim construction which, among other things, determined that certain claim terms of two of the patents-in-suit were indefinite. On April 25, 2017, Alarm.com Incorporated and its wholly owned subsidiary ICN Acquisition, LLC, filed a patent infringement complaint against Protect America, Inc., or Protect America, and SecureNet Technologies, LLC, or SecureNet, in the United States District Court for the Eastern District of Virginia. The complaint seeks injunctive relief to stop the further sale of the infringing Protect America and SecureNet products and systems, and damages for the infringement of Alarm.com’s patents. The complaint asserts that the technology in the Protect America and SecureNet Alarm Systems products infringe one or more claims of Alarm.com’s patents: United States Patent Numbers 7,113,090; 7,633,385; 8,395,494; 8,493,202; 8,612,591; 8,860,804; and 9,141,276. If the litigation is successful, Alarm.com will be entitled to receive monetary damages, injunctive relief, and any other relief, including attorneys' fees, from Protect America and SecureNet. In June 2017, Alarm.com filed an amended complaint against Protect America only and voluntarily dismissed SecureNet from the suit, reserving the right to refile. In September 2017, Alarm.com voluntarily dismissed the amended complaint in the United States District Court of the Eastern District of Virginia and refiled a complaint against Protect America, with substantially the same allegations, in the United States District Court of the Eastern District of Texas. The parties subsequently stipulated to transfer the case to the Western District of Texas. In March 2019, the parties agreed to dismiss U.S. Patent Nos. 7,633,385, 8,395,494, and 8,493,202 from the case without prejudice. Protect America moved to dismiss U.S. Patent No. 9,141,276 based on invalidity. The Court has scheduled a claim construction hearing for May 2019, but has not yet scheduled a jury trial. 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 attorneys' 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. On August 19, 2016, the U.S. District Court, District of Utah stayed the litigation pending inter partes review by the PTAB of five of the patents in suit. In March 2017, the PTAB issued final written decisions relating to two patents finding all challenged claims unpatentable. In May 2017, the PTAB issued final written decisions relating to the remaining three patents that found certain claims unpatentable, while certain other claims were not found to be unpatentable. Vivint appealed the decisions to the U.S. Court of Appeals for the Federal Circuit, or the Federal Circuit, and we cross-appealed. In July 2018, the Federal Circuit issued orders affirming the PTAB’s March 2017 decisions that invalidated all challenged claims of two patents. The U.S. District Court, District of Utah lifted the stay on the litigation on June 26, 2017, with Vivint proceeding with its case on four of the six patents in its complaint. No trial date has been set. In September 2017, the U.S. Patent and Trademark Office, or PTO, ordered ex parte reexaminations of certain claims of two of the remaining patents in suit, at our request. On October 30, 2018 and November 5, 2018, the PTO issued final office actions in the pending reexaminations rejecting all claims being examined as unpatentable over the prior art. Vivint appealed these rejections to the PTAB on March 29, 2019 and April 4, 2019. The U.S. District Court, District of Utah has ordered the litigation regarding the nine claims (from two patents) rejected by the PTO during the reexaminations be stayed until November 15, 2019. On April 3, 2019, the U.S. District Court, District of Utah heard argument on the parties’ cross motions for claim construction and Alarm.com’s motion for partial summary judgment as to invalidity. Decisions on these motions are pending. On December 20, 2018, the Federal Circuit issued an order regarding the inter partes review of three of the remaining patents in suit that vacated, reversed and remanded the PTAB’s ruling with regard to the construction of a term (“communication device identification code”) as requested by Alarm.com and affirmed the PTAB’s May 2017 rulings invalidating certain of the Vivint patents in all other respects. The PTAB ordered the parties to submit briefs on the effect of the Federal Circuit’s December 20, 2018 decision, with briefing to conclude in May 2019. Should Vivint prevail in proving Alarm.com infringes one or more of its patent claims, 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, or the Court, alleging violations of the Telephone Consumer Protection Act, or TCPA. The complaint does not allege that Alarm.com itself violated the TCPA, but instead seeks to hold us responsible for the marketing activities of one of our service providers as well as calls made by one of this service provider’s sub-dealer agents under principles of agency and vicarious liability. On August 30, 2018, we reached an agreement in principle to settle the case for total cash consideration of $28.0 million . On October 25, 2018, we entered into a definitive settlement agreement, or Settlement Agreement, and submitted it to the Court for approval. In entering into the definitive settlement agreement, we are making no admission of liability. Pursuant to the Settlement Agreement, among other things, (1) we agreed to pay total cash consideration of $28.0 million into a settlement fund, (2) we agreed to implement certain business practice changes to increase awareness of TCPA compliance, (3) each party to the Settlement Agreement agreed to a mutual release of claims relating to any claim or potential claim relating to the marketing activities described in the complaint, and (4) each party covenanted not to sue the other with regard to the released claims. In addition, we have agreed to no longer allow the service provider identified in the litigation as purportedly violating the TCPA to continue activating new accounts for Alarm.com products and services after preliminary Court approval of the Settlement Agreement. On December 19, 2018, the Court granted plaintiffs’ motion for preliminary approval of the Settlement Agreement and certified the class for settlement purposes. Pursuant to the Preliminary Approval Order, the administrator provided notice of the settlement to class members, and class members had to file claims, opt out of the settlement or object to the settlement by April 16, 2019. The Final Approval Hearing is currently scheduled for August 13, 2019. We made an initial payment of $5.0 million to the settlement administrator on January 2, 2019, and the remaining payment will take place ten business days after the effective date of the Settlement Agreement, which is five business days following the later of the following events: (1) the date upon which the time expires for filing a notice of appeal of the Court’s Final Approval Order and Judgment; or (2) if there is an appeal or appeals of the Final Approval Order and Judgment, and the appellate court enters an order either dismissing the appeal(s) or affirming the Final Approval Order and Judgment without material modification, the date upon which the time expires for seeking review of that order. The release of claims includes all alleged damages incurred related to the lawsuit. Any attorneys’ fees awarded by the Court and all costs of notice and claims administration will be paid from the settlement fund. The $28.0 million settlement was reflected in general and administrative expenses within our condensed consolidated statements of operations for the three and nine months ended September 30, 2018. The unpaid amount of the settlement is reflected as an accrued expense in accounts payable, accrued expenses and other current liabilities within our condensed consolidated balance sheet as of March 31, 2019 . In addition to the matters described above, we may be a party to litigation and subject to claims incident to the ordinary course of business, and we may be required to provide indemnification to certain of our service provider partners for certain claims regarding our solutions. 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	3 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expense is included in the following line items in the condensed consolidated statements of operations (in thousands): Three Months Ended 2019 2018 Sales and marketing $ 380 $ 235 General and administrative 1,267 1,028 Research and development 2,619 1,406 Total stock-based compensation expense $ 4,266 $ 2,669 The following table summarizes the components of non-cash stock-based compensation expense (in thousands): Three Months Ended 2019 2018 Stock options and assumed options $ 793 $ 728 Restricted stock units 3,429 1,900 Restricted stock awards — 1 Employee stock purchase plan 44 40 Total stock-based compensation expense $ 4,266 $ 2,669 Tax benefit from stock-based awards $ 1,314 $ 449 We granted an aggregate of 8,000 stock options pursuant to our 2015 Equity Incentive Plan, or 2015 Plan, during the three months ended March 31, 2019 , as compared to an aggregate of 28,000 stock options for the same period in the prior year. There were 85,466 stock options exercised during the three months ended March 31, 2019 , as compared to 58,745 stock options for the same period in the prior year. We granted an aggregate of 190,250 restricted stock units during the three months ended March 31, 2019 , as compared to an aggregate of 47,648 restricted stock units for the same period in the prior year. There were 43,460 restricted stock units that vested during the three months ended March 31, 2019 . No restricted stock units vested during the three months ended March 31, 2018 .

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic and Diluted Earnings Per Share The components of basic and diluted earnings per share, or EPS, are as follows (in thousands, except share and per share amounts): Three Months Ended 2019 2018 Net income $ 9,010 $ 10,515 Less: income allocated to participating securities — (3 ) Net income attributable to common stockholders (A) $ 9,010 $ 10,512 Weighted average common shares outstanding — basic (B) 48,172,243 47,226,382 Dilutive effect of stock options, RSUs and RSAs 2,000,575 2,041,873 Weighted average common shares outstanding — diluted (C) 50,172,818 49,268,255 Net income per share: Basic (A/B) $ 0.19 $ 0.22 Diluted (A/C) $ 0.18 $ 0.21 The following securities have been excluded from the calculation of diluted weighted average common shares outstanding as the inclusion of these securities would have an anti-dilutive effect: Three Months Ended 2019 2018 Stock options 46,693 231,951 RSAs — 73 RSUs 181,350 150,100 Common stock subject to repurchase 777 10,214 Participating securities are composed of certain stock options granted under the 2015 Plan, and previously granted under the 2009 Equity Incentive Plan, that may be exercised before the options have vested. Unvested shares have a non-forfeitable right to dividends. 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 common stock subject to repurchase is no longer classified as participating securities when shares revert to common stock outstanding as the awards vest and our repurchase right lapses.

Significant Service Provider Pa

Significant Service Provider Partners	3 Months Ended
	Mar. 31, 2019
Risks and Uncertainties [Abstract]
Significant Service Provider Partners	Significant Service Providers During the three months ended March 31, 2019 , our 10 largest revenue service provider partners accounted for 53% of our consolidated revenue, as compared to 59% for the same period in the prior year. One of our service provider partners within the Alarm.com segment individually represented greater than 15% but not more than 20% of our revenue for the three months ended March 31, 2019 and 2018 . One of our service provider partners within the Alarm.com segment individually represented greater than 10% but not more than 15% of our revenue for the three months ended March 31, 2018 . One individual service provider partner in the Alarm.com segment represented more than 10% of accounts receivable as of March 31, 2019 and December 31, 2018 .

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2019
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 are recorded in the period incurred. For the three months ended March 31, 2019 , we recorded a provision for income taxes of $0.2 million , resulting in an effective income tax rate of 2.6% . For the three months ended March 31, 2018 , we recorded a provision for income taxes of $1.2 million , resulting in an effective income tax rate of 10.3% . Our effective tax rates were below the statutory rate primarily due to the tax windfall benefits from employee stock-based payment transactions, foreign derived intangible income deduction and research and development tax credits claimed, partially offset by the impact of non-deductible meal and entertainment expenses and state taxes. 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 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 March 31, 2019 and December 31, 2018 . Accordingly, we have no t recorded a valuation allowance as of March 31, 2019 and December 31, 2018 . 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. We did no t record an unrecognized tax benefit during the three months ended March 31, 2019 . We recorded unrecognized tax benefits of $0.2 million for research and development tax credits claimed during the three months ended March 31, 2018 . As of March 31, 2019 and December 31, 2018 , we had accrued $0.1 million of total interest expense related to unrecognized tax benefits. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2019
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 and Software platforms for the intelligently connected property and related solutions that contributed approximately 93% of our revenue for the three months ended March 31, 2019 , as compared to approximately 95% for the same period in the prior year. Our Other segment is focused on researching, developing and offering residential and commercial automation solutions 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 (loss) as compared to prior periods and current performance levels. The reportable segment operational data is presented in the table below (in thousands): Three Months Ended March 31, 2019 Alarm.com Other Intersegment Alarm.com Intersegment Other Total SaaS and license revenue $ 75,402 $ 4,653 $ — $ — $ 80,055 Hardware and other revenue 30,347 4,411 (999 ) (1,479 ) 32,280 Total revenue 105,749 9,064 (999 ) (1,479 ) 112,335 Operating income / (loss) 9,655 (484 ) (35 ) 85 9,221 Three Months Ended March 31, 2018 Alarm.com Other Intersegment Alarm.com Intersegment Other Total SaaS and license revenue $ 65,662 $ 2,326 $ — $ — $ 67,988 Hardware and other revenue 23,001 3,656 (782 ) (1,107 ) 24,768 Total revenue 88,663 5,982 (782 ) (1,107 ) 92,756 Operating income / (loss) 14,502 (2,537 ) 5 23 11,993 Alarm.com Other Intersegment Intersegment Total Assets as of March 31, 2019 $ 514,474 $ 16,313 $ (50,885 ) $ — $ 479,902 Assets as of December 31, 2018 482,666 19,629 (61,309 ) (1 ) 440,985 Our SaaS and license revenue for the Alarm.com segment included software license revenue of $11.0 million for the three months ended March 31, 2019 , as compared to $9.9 million for the same period in the prior year. There was no software license revenue recorded for the Other segment during the three months ended March 31, 2019 and 2018 . Depreciation and amortization expense was $5.2 million for the Alarm.com segment for the three months ended March 31, 2019 , as compared to $4.9 million for the same period in the prior year. Depreciation and amortization expense was less than $0.1 million for the Other segment for the three months ended March 31, 2019 , as compared to $0.1 million for the same period in the prior year. Additions to property and equipment were $2.3 million for the Alarm.com segment for the three months ended March 31, 2019 , as compared to $3.0 million for the same period in the prior year. There were no additions to property and equipment for the Other segment for the three months ended March 31, 2019 , as compared to less than $0.1 million for the same period in the prior year. We derived substantially all of our revenue from North America for the three months ended March 31, 2019 and 2018 . Substantially all of our long-lived assets were in North America as of March 31, 2019 and December 31, 2018 .

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2019
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Installation Partner 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 account for this investment using the equity method. As of March 31, 2019 and December 31, 2018 , our investment balance in our installation partner was zero . During each of the three months ended March 31, 2019 and 2018 , we recorded $0.1 million of cost of hardware and other revenue in connection with this installation partner. As of March 31, 2019 and December 31, 2018 , the accounts payable balance to our installation partner was less than $0.1 million .

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
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, or GAAP, for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission, or the 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, 2018 included in our Annual Report on Form 10-K filed with the SEC on March 1, 2019 , or the Annual Report. The condensed consolidated balance sheet as of December 31, 2018 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 months ended March 31, 2019 are not necessarily indicative of the results that can be expected for our entire fiscal year ending December 31, 2019 .
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 at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Our estimates, judgments and assumptions are continually evaluated based on available information and experience. Because of the use of estimates inherent in the financial reporting process, actual results could differ from those estimates. Estimates are used when accounting for revenue recognition, allowances for doubtful accounts, allowance for hardware returns, estimates of obsolete inventory, long-term incentive compensation, stock-based compensation, income taxes, legal reserves, contingent consideration and goodwill and intangible assets.
Revenue Recognition, SaaS and License Revenue, Software License Revenue, and Hardware and Other Revenue	Revenue Recognition and Deferred Revenue We derive our revenue from three primary sources: the sale of cloud-based SaaS services on our integrated Alarm.com platform, the sale of licenses and services on our non-hosted software platform, or Software platform, and the sale of hardware products. We sell our platform and hardware solutions to service provider partners that resell our solutions and hardware to residential and commercial property owners, who are the service provider partners’ customers. Our subscribers consist of all of the properties maintained by those residential and commercial property owners to which we are delivering at least one of our solutions. We also sell our hardware to distributors who resell the hardware to service provider partners. We enter into contracts with our service provider partners that establish pricing for access to our platform solutions and for the sale of hardware. These contracts typically have an initial term of one year, with subsequent renewal terms of one year. Our service provider partners typically enter into contracts with our subscribers, which our service provider partners have indicated range from three to five years in length. Our hardware includes cellular radio modules that enable access to our cloud-based platforms, as well as video cameras, image sensors and other peripherals. Our service provider partners may purchase our hardware in anticipation of installing the hardware in a residential or commercial property when they create a new subscriber account, or for use in existing subscriber properties. The purchase of hardware occurs in a transaction that is separate and typically in advance of the purchase of our platform services. The performance obligation is satisfied when the hardware is received by our service provider partner or distributor. Service provider partners transact with us to purchase our platform solutions and resell our solutions to a new subscriber, or to upgrade or downgrade the solutions of an existing subscriber, at which time the subscriber’s access to our platform solutions is enabled and the delivery of the services commences. Our performance obligation related to providing our platform solutions is satisfied on a daily basis as the subscriber uses the platform services. The purchase of platform solutions and the purchase of hardware are separate transactions as revenue is recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We generate all of our revenue from contracts with customers. SaaS and license revenue associated with our contracts is invoiced and revenue is recognized at an amount that corresponds directly with the value of the performance completed to date. Additionally, the consideration received from hardware sales corresponds directly with the stand-alone selling price of the hardware. As a result, we have elected to use the practical expedient related to the amount of transaction price allocated to the unsatisfied performance obligations and therefore, we have not disclosed the total remaining revenue expected to be recognized on all contracts or the expected period over which the remaining revenue would be recognized for the current period or any period presented before January 1, 2018. To determine the transaction price, we analyze all of the performance obligations included in the contract. We consider the terms of the contract and our customary business practices, which typically do not include financing components or non-cash consideration. We have variable consideration in the form of retrospective volume discounts, rebate incentives, restocking fees and assurance-type warranties. The significant inputs related to variable consideration include the volume and amount of products and services sold historically and expected to be sold in the future, the availability and performance of our services and the historical and expected number of returns. Depending on the type of variable consideration and its predictability, we may apply an “expected value” approach or a “most likely amount” approach. We estimate the variable consideration at the onset of a contract and include the variable consideration within the transaction price if it is probable that a significant reversal of the variable consideration would not occur in the future. When determining whether the amount of variable consideration included in the transaction price should be constrained, we look at the history of hardware purchased and subscribers added by our service provider partners to estimate the likelihood of those service provider partners obtaining the retrospective volume discounts and rebates. At times, our contracts include consideration payable to a customer in the form of fixed discounts or rebates. We record the consideration payable to a customer as a reduction to the transaction price resulting in a reduction to revenue over the service period. If we enter into contracts that contain multiple promised services, we evaluate which of the promised services represent separate performance obligations based on whether or not the promised services are distinct and whether or not the services are separable from other promises in the contract. If these criteria are met, then we allocate the transaction price to the performance obligations using the relative stand-alone selling price method at contract inception. In determining the relative estimated selling prices, we consider market conditions, entity-specific factors and information about the customer or class of customer. Any discount within the contract is allocated proportionately to all of the separate performance obligations in the contract unless the terms of discount relate specifically to the entity’s efforts to satisfy some but not all of the performance obligations. For our standard service provider agreements, we have used a portfolio approach for purposes of revenue recognition, as each agreement has similar characteristics and we do not expect the effects of applying this approach would have a material impact on our financial statements as compared to assessing each agreement individually. SaaS and License Revenue We generate the majority of our SaaS and license revenue primarily from monthly fees charged to our service provider partners sold on a per subscriber basis for access to our cloud-based intelligently connected property platform and related solutions. Our fees per subscriber vary based upon the service plan and features utilized. Under the terms of our contractual arrangements with our service provider partners, we bill a monthly fee to our service provider partners in advance of the month of service, with the exception of the initial partial month of service, which is paid in arrears. Due to the limited period of time between receipt of payment and delivery of service, we have not accounted for these advance payments as significant financing components. We typically transfer the promised SaaS services to our customers over time, which is evidenced by the fact that the customers receive and consume the benefits provided by our performance of the services as such services are rendered. As a result, we recognize revenue from SaaS services on a monthly basis as we satisfy our performance obligations. We have demonstrated that we can sell our SaaS offering on a stand-alone basis, as it can be sold separately from hardware and activation services. As there is neither a minimum required initial service term nor a stated renewal term in our contractual arrangements, we recognize revenue over the period of service, which is monthly. Our service provider partners typically incur and pay the same monthly fee per subscriber account for the entire period a subscriber account is active. We offer multiple service level packages for our platform solutions including a range of solutions and a range of a la carte add-ons for additional features. The fee paid by our service provider partners each month for the delivery of our solutions is based on the combination of packages and add-ons enabled for each subscriber. We utilize tiered pricing plans where our service provider partners may receive prospective pricing discounts driven by volume. We also generate SaaS and license revenue from the fees paid to us when we license our intellectual property to third parties for use of our patents. We bill a monthly fee to third parties based on the number of customers that were active during the prior month. We apply the usage-based royalty exception to recognize license revenue because the sole or predominant item to which the royalty relates is the license of intellectual property. Under the usage-based royalty exception, we recognize revenue on a monthly basis over the period of service. In addition, in certain markets our EnergyHub subsidiary sells its demand response service for an annual service fee, with pricing based on the number of subscribers or amount of aggregate electricity demand made available for a utility’s or market’s control. Software License Revenue Our SaaS and license revenue also includes our software license revenue from monthly fees charged to service providers sold on a per subscriber basis for access to our Software platform. The non-hosted software for interactive security, automation and related solutions is typically deployed and operated by the service provider in its own network operations center. Our agreements for the Software platform solution typically include software and services, such as post-contract customer support, or PCS. Software sales that include multiple elements are typically allocated to the various elements using the relative stand-alone selling price method. We apply the usage-based royalty exception to recognize license revenue associated with software hosted by our customers because the predominant item to which the royalty relates is the license of intellectual property. Under the usage-based royalty exception, we recognize revenue on a monthly basis over the period during which the services are expected to be performed. Under the terms of our contractual arrangements with our service provider partners, we are entitled to payment of a monthly fee that is billed per subscriber for the month of service. Our software license revenue during the three months ended March 31, 2019 was $11.0 million , as compared to $9.9 million for the same period in the prior year. Hardware and Other Revenue We generate hardware and other revenue primarily from the sale of video cameras and cellular radio modules that provide access to our cloud-based platforms and, to a lesser extent, the sale of other devices, including image sensors and peripherals. We primarily transfer hardware to our customers upon delivery to the customer, which corresponds with the time at which the customer obtains control of the hardware. As a result, we recognize hardware and other revenue as we satisfy our performance obligations, which occurs when the hardware is received by our service provider partner or distributor, net of a reserve for estimated returns. There are a few contracts in which we provide shipping and handling services to the customer after control of the hardware transfers to the customer. In these instances, we have elected to account for shipping and handling costs as activities performed to fulfill the promise to transfer hardware to the customer and not as a separate promised service. Amounts due from the sale of hardware are payable in accordance with the terms of our agreements with our service provider partners or distributors, and are not contingent on resale to end-users, or to service provider partners in the case of sales of hardware to distributors. Payment for our hardware is typically due within 30 days from shipment, with the exception of certain hardware finance arrangements, which are paid over a 36-month period. Our distributors sell directly to our service provider partners under terms between the two parties. When determining the amount of consideration we expect to be entitled to for the sale of our hardware, we estimate the variable consideration associated with customer returns. We record a reserve against revenue for hardware returns based on historical returns. For the twelve months ended March 31, 2019 , our reserve against revenue for hardware returns was 1% , as compared to 2% for the same period in the prior year. We evaluate our hardware reserve on a quarterly basis or if there is an indication of significant changes in return experience. Historically, our returns of hardware have not significantly differed from our estimated reserve. Additionally, we provide assurance-type warranties related to the intended functionality of the products and services provided and those warranties typically allow for the return of hardware up to one year past the date of sale. These warranties were not identified as separate performance obligations. Hardware and other revenue may also include activation fees charged to some of our service provider partners for activation of a new subscriber account on our platforms, as well as fees paid by service provider partners for our marketing services. Our service provider partners use services on our platforms, such as support tools and applications, to assist in the installation of our solutions in subscriber properties. This installation marks the beginning of the service period on our platforms and, on occasion, we earn activation revenue for fees charged for this service. The activation fee is non-refundable, separately negotiated and specified in our contractual arrangements with our service provider partners and is charged to the service provider partner for each subscriber activated on our platforms. The decision whether to charge an activation fee is based in part on the expected number of subscribers to be added by our service provider partners and as a result, many of our largest service provider partners do not pay an activation fee. Activation fees are not offered on a stand-alone basis separate from our SaaS offering and are billed and received at the beginning of the arrangement. We record activation fees initially as deferred revenue and we recognize these fees ratably over the expected term of the subscribers’ account which we estimate is ten years based on our annual attrition rate. The portion of these activation fees included in current and long-term deferred revenue as of our balance sheet date represents the amounts that will be recognized ratably as revenue over the following twelve months, or longer as appropriate, until the ten-year expected term is complete. The balance of deferred revenue for activation fees was $8.9 million and $9.2 million as of March 31, 2019 and December 31, 2018 , respectively, which combines current and long-term balances.
Cost of Revenue, Contract Asset and Contract Liability Balances, and Costs to Obtain or Fulfill a Contract	Contract liabilities include payments received in advance of performance under the contract, and are realized with the associated revenue recognized under the contract. All of the deferred revenue presented in the balance sheet represents contract liabilities resulting from advance cash receipts from customers or amounts billed in advance to customers from the sale of services. Changes in deferred revenue are due to our performance under the contract as well as to cash received from new contracts for which services have not been provided. Cost of Revenue Our cost of SaaS and license revenue primarily includes the amounts paid to wireless network providers and, to a lesser extent, the costs of running our network operations centers which are expensed as incurred, as well as patent and royalty costs in connection with technology licensed from third-party providers. Our cost of SaaS and license revenue also includes our cost of software license revenue, which primarily includes the payroll and payroll-related costs of the department dedicated to providing service exclusively to those service providers that host the Software platform. Our cost of software license revenue during each of the three months ended March 31, 2019 and 2018 was $0.4 million . Our cost of hardware and other revenue primarily includes cost of raw materials, tooling and amounts paid to our third-party manufacturer for production and fulfillment of our cellular radio modules and image sensors, and procurement costs for our video cameras, which we purchase from an original equipment manufacturer, and other devices. Our cost of hardware and other revenue also includes royalty costs in connection with technology licensed from third-party providers. We record the cost of SaaS and license revenue as expenses are incurred, which corresponds to the delivery period of our services to our subscribers. We record the cost of hardware and other revenue when the hardware and other services are delivered to the service provider partner, which occurs when control of the hardware and other services transfers to the service provider partner. Our cost of revenue excludes amortization and depreciation. Contract Asset and Contract Liability Balances At contract inception, we assess the goods and services promised in our contracts with customers and identify a performance obligation for each distinct promise to transfer a good or service, or bundle of goods or services. To identify the performance obligations, we consider all of the goods or services promised in the contract, whether explicitly stated or implied based on customary business practices. We record a contract asset when we satisfy a performance obligation by transferring a promised good or service. Contract assets can be conditional or unconditional depending on whether another performance obligation must be satisfied before payment can be received. We receive payments from our service provider partners based on the billing schedule established in our contracts. All of the accounts receivable presented in the balance sheet represent unconditional rights to consideration. We do not have any assets from contracts containing conditional rights and we do not have any assets from satisfied performance obligations that have not been invoiced. We recognize an asset related to the costs incurred to obtain a contract only if we expect to recover those costs and we would not have incurred those costs if the contract had not been obtained. We recognize an asset from the costs incurred to fulfill a contract if the costs (i) are specifically identifiable to a contract, (ii) enhance resources that will be used in satisfying performance obligations in future and (iii) are expected to be recovered. Our contract assets consist of capitalized commission costs. Based on the policy above, we capitalize a portion of our commission costs as an incremental cost of obtaining a contract. When calculating the incremental cost of obtaining a contract, we exclude any commission costs related to metrics that could be satisfied without obtaining a contract, including training-related metrics. We amortize our commission costs over a period of three years, which is consistent with the period over which the products and services related to the commission are transferred to the customer. The three-year period was determined based on our review of historical enhancements and upgrades to our products and services. We applied the portfolio approach to account for the amortization of contract costs as each contract has similar characteristics. The current portion of capitalized commission costs is included in other current assets within our condensed consolidated balance sheets. The non-current portion of capitalized commission costs is reflected in other assets within our condensed consolidated balance sheets. We amortized capitalized commission costs of $0.5 million during each of the three months ended March 31, 2019 and 2018 . We review the capitalized costs for impairment at least annually. Impairment exists if the carrying amount of the asset recognized from contract costs exceeds the remaining amount of consideration we expect to receive in exchange for providing the goods and services to which such asset relates, less the costs that relate directly to providing those good and services and that have not been recognized as an expense. We did no t record an impairment loss on our capitalized commission costs or any other contract assets during the three months ended March 31, 2019 and 2018 .
Leases	Leases We determine if an arrangement contains a lease at the inception of the arrangement. As part of the lease determination process, we assess several factors, including, but not limited to, whether we have the right to control and direct the use of the asset and whether the other party has a substantive substitution right. If we enter into leases that contain multiple components, we identify separate lease components based on whether or not the right to use the underlying assets is distinct and either highly dependent or highly interrelated with other rights in the contract. We also evaluate whether there are any non-lease components in the arrangement. For certain classes of underlying assets, such as data centers, we have elected not to separate non-lease components from lease components. For all other classes of underlying assets, if separate lease and non-lease components are identified, we allocate the consideration in the contract to the lease and non-lease components using the relative stand-alone selling price method at the lease inception. Many of our leases include options to renew at our sole discretion. We also have several leases that provide us an option to terminate the lease prior to the end of the lease term. These renewal and termination options are included in the lease term at the commencement date when we are reasonably certain the options will be exercised. When assessing the likelihood of electing these options, we consider the length of the renewal period, market conditions, our expansion plans, the existence of a termination penalty, as well as other factors. Our lease agreements do not contain any material residual value guarantees, restrictive covenants or variable lease payments. Right-of-use, or ROU, assets represent our right to use an underlying asset for the term of the lease and lease liabilities represent our obligation to make lease payments throughout the term of the lease. ROU assets and lease liabilities are recognized as of the commencement date of the lease based on the present value of contractual lease payments due over the term of the lease. We use our incremental borrowing rate to determine the present value of the lease payments, as our leases do not state the rate implicit in the lease. Our incremental borrowing rate is determined on a collateralized basis at the commencement date of the lease. ROU assets and lease liabilities resulting from operating leases are recorded on our condensed consolidated balance sheets. We did no t have any finance leases or subleases as of March 31, 2019 and December 31, 2018 . Lease expense is recognized on a straight-line basis over the term of the lease and is recorded in general and administrative expense. Some of our leases include tenant improvement allowances, which are recorded when we are reasonably certain to utilize the allowance and are amortized on a straight-line basis over the shorter of the lease terms or the asset lives. Leases with an initial lease term of twelve months or less are considered short-term leases. Short-term leases are not recorded on our condensed consolidated balance sheets. Expenses associated with short-term leases are recognized on a straight-line basis over the term of the lease and are recorded in general and administrative expense. Short-term lease costs were immaterial for the three months ended March 31, 2019 .
Recent Accounting Pronouncements	Recent Accounting Pronouncements Adopted On February 25, 2016, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, 2016-02, “Leases (Topic 842)” or Topic 842, which requires lessees to recognize operating and financing lease liabilities and corresponding ROU 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. In July 2018, the FASB amended the update to allow entities to apply the transition requirements of Topic 842 at the adoption date rather than at the beginning of the earliest comparative period presented. Accordingly, the amendments in Topic 842 were effective for us beginning January 1, 2019. On January 1, 2019, we adopted Topic 842 by applying the modified retrospective approach to all of our leases in effect as of that date. We used the optional transition method, which required us to record the initial effect of Topic 842 as a cumulative-effect adjustment to retained earnings on January 1, 2019. Additionally, we elected to use the package of practical expedients for the adoption of Topic 842, which allowed us not to reassess: (i) whether any expired or existing contracts are or contain leases, (ii) lease classification for any expired or existing leases and (iii) whether initial direct costs for any existing leases qualify for capitalization under Topic 842. We also used the hindsight practical expedient when determining the lease term and assessing impairment of ROU assets. The adoption of Topic 842 resulted in the recording of the following amounts on our condensed consolidated balance sheets (in thousands): Balance Sheet Caption As of January 1, 2019 Property and equipment, net 1,057 Operating lease right-of-use assets 28,432 Operating lease liabilities (current) 5,699 Operating lease liabilities (noncurrent) 36,957 Accounts payable, accrued expenses and other current liabilities (1,548 ) Other liabilities (11,656 ) Accumulated deficit 37 The adoption of Topic 842 did not materially impact our condensed consolidated statements of operations, condensed consolidated statement of equity and condensed consolidated statements of cash flows. Not Yet Adopted On June 16, 2016, the FASB issued ASU 2016-13, " Financial Instruments - Credit Losses (Topic 326)," which provides guidance designed to provide financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. From November 2018 to April 2019, amendments to Topic 326 were issued to clarify numerous accounting topics. When determining such expected credit losses, the guidance requires companies to apply a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendment is effective on a modified retrospective basis for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for fiscal years and interim periods beginning after December 15, 2018. We are currently assessing the impact this pronouncement may have on our trade receivables and notes receivables. On August 28, 2018, the FASB issued ASU 2018-13, " Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement," which provides guidance designed to improve the effectiveness of fair value measurement disclosures in notes to the financial statements. The update removes several existing disclosure requirements, including, but not limited to: (i) the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, (ii) the policy for timing of transfers between levels and (iii) the valuation processes for Level 3 fair value measurements. The update also adds additional disclosure requirements for public companies, including but not limited to: (i) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and (ii) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The update also modifies and clarifies several existing disclosure requirements. The amendment in this update is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The additional disclosure requirements and one of the modifications to an existing disclosure requirement should be applied prospectively while all other disclosure changes should be applied retrospectively to all periods presented upon the effective date. Early adoption is permitted. We are currently assessing the impact this pronouncement may have on our fair value measurement disclosures; however, this pronouncement is not expected to have a material impact on our consolidated financial statements.
Fair Value Measurement	The liability for the subsidiary unit awards relates to agreements established with employees of our subsidiaries for cash awards contingent upon the subsidiary companies meeting certain financial milestones such as revenue, working capital, EBITDA and EBITDA margin. We account for these subsidiary awards using fair value and establish liabilities for the future payment for the repurchase of subsidiary units under the terms of the agreements based on estimating revenue, working capital, EBITDA and EBITDA margin of the subsidiary units over the periods of the 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 and future collection of financed customer receivables, the unobservable inputs, and we will record any changes in the employee's compensation expense. Some of the awards are subject to the employees' continued employment and therefore recorded on a straight-line basis over the remaining service period.
Income Taxes	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 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 March 31, 2019 and December 31, 2018 . Accordingly, we have no t recorded a valuation allowance as of March 31, 2019 and December 31, 2018 . 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.

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Schedule of Contract Assets and Contract Liabilities	The changes in our contract assets are as follows (in thousands): Three Months Ended 2019 2018 Beginning of period balance $ 2,881 $ — Commission costs capitalized in period 716 3,443 Amortization of capitalized commission costs (514 ) (490 ) End of period balance $ 3,083 $ 2,953 The changes in our contract liabilities are as follows (in thousands): Three Months Ended 2019 2018 Beginning of period balance $ 11,176 $ 12,678 Revenue deferred in period 1,555 590 Revenue recognized from amounts included in contract liabilities (1,195 ) (1,135 ) End of period balance $ 11,536 $ 12,133
Supplemental Balance Sheet Information Regarding Leases	The adoption of Topic 842 resulted in the recording of the following amounts on our condensed consolidated balance sheets (in thousands): Balance Sheet Caption As of January 1, 2019 Property and equipment, net 1,057 Operating lease right-of-use assets 28,432 Operating lease liabilities (current) 5,699 Operating lease liabilities (noncurrent) 36,957 Accounts payable, accrued expenses and other current liabilities (1,548 ) Other liabilities (11,656 ) Accumulated deficit 37

Accounts Receivable, Net (Table

Accounts Receivable, Net (Tables)	3 Months Ended
	Mar. 31, 2019
Receivables [Abstract]
Schedule of Components of Accounts Receivable	The components of accounts receivable, net are as follows (in thousands): March 31, December 31, Accounts receivable $ 59,417 $ 52,850 Allowance for doubtful accounts (1,655 ) (1,425 ) Allowance for product returns (1,639 ) (1,915 ) Accounts receivable, net $ 56,123 $ 49,510

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Schedule of Components of Inventory	The components of inventory, net are as follows (in thousands): March 31, December 31, Raw materials $ 7,602 $ 6,396 Finished goods 18,112 16,594 Total inventory, net $ 25,714 $ 22,990

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets, Net (Tables)	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The changes in goodwill by reportable segment are outlined below (in thousands): Alarm.com Other Total Balance as of January 1, 2019 $ 63,591 $ — $ 63,591 Goodwill acquired — — — Balance as of March 31, 2019 $ 63,591 $ — $ 63,591
Schedule of Intangible Assets	The following tables reflect the weighted average remaining life and carrying value of finite-lived intangible assets (in thousands, except weighted-average remaining life): March 31, 2019 Gross Accumulated Net Weighted- Customer relationships $ 103,926 $ (29,839 ) $ 74,087 9.7 Developed technology 13,959 (12,590 ) 1,369 2.0 Trade name 1,084 (980 ) 104 2.2 Other 234 (234 ) — — Total intangible assets $ 119,203 $ (43,643 ) $ 75,560 December 31, 2018 Gross Accumulated Net Weighted- Customer relationships $ 103,926 $ (26,662 ) $ 77,264 9.9 Developed technology 13,959 (12,281 ) 1,678 2.1 Trade name 1,084 (959 ) 125 2.4 Other 234 (234 ) — — Total intangible assets $ 119,203 $ (40,136 ) $ 79,067 The following table reflects changes in the net carrying amount of the components of intangible assets (in thousands): Customer Developed Trade Name Total Balance as of January 1, 2019 $ 77,264 $ 1,678 $ 125 $ 79,067 Amortization (3,177 ) (309 ) (21 ) (3,507 ) Balance as of March 31, 2019 $ 74,087 $ 1,369 $ 104 $ 75,560

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2019
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 (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 accounts $ 94,255 $ — $ — $ 94,255 Total $ 94,255 $ — $ — $ 94,255 Liabilities: Subsidiary unit awards $ — $ — $ 185 $ 185 Total $ — $ — $ 185 $ 185 Fair Value Measurements on a Recurring Basis as of Fair value measurements in: Level 1 Level 2 Level 3 Total Assets: Money market accounts $ 117,392 $ — $ — $ 117,392 Total $ 117,392 $ — $ — $ 117,392 Liabilities: Subsidiary unit awards $ — $ — $ 385 $ 385 Total $ — $ — $ 385 $ 385
Summary of Fair Value of Level 3 Liability	The following table summarizes the change in fair value of the Level 3 liabilities for subsidiary unit awards with significant unobservable inputs (in thousands): Three Months Ended 2019 2018 Beginning of period balance $ 385 $ 3,160 Total losses included in earnings — 31 Settlements (200 ) (2,802 ) End of period balance $ 185 $ 389

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	The following table presents the future minimum lease payments under the non-cancelable operating leases as of December 31, 2018 prior to our adoption of Topic 842 (in thousands): Year Ended December 31, Minimum Lease Payments 2019 $ 7,044 2020 7,168 2021 6,974 2022 6,719 2023 6,348 2024 and thereafter 14,838 Total $ 49,091
Supplemental Information Related to Leases	Supplemental information related to leases is presented in the table below (in thousands, except weighted-average term and discount rate): Three Months Ended March 31, 2019 Operating lease cost $ 1,803 Cash paid for amounts included in the measurement of operating lease liabilities 1,908 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 1,459 Weighted-average remaining lease term — operating leases 6.5 years Weighted-average discount rate — operating leases 3.0 %
Maturities of Lease Liabilities	Maturities of lease liabilities are as follows (in thousands): Year Ended December 31, Operating Leases (1) Remainder of 2019 $ 5,591 2020 7,335 2021 7,159 2022 6,499 2023 6,097 2024 and thereafter 14,219 Total lease payments 46,900 Less: imputed interest (2) 4,368 Present value of lease liabilities $ 42,532 _______________ (1) Operating lease payments exclude $6.6 million of legally binding minimum lease payments for leases executed but not yet commenced. There were no options to extend lease terms that were reasonably certain of being exercised. (2) Imputed interest was calculated using the incremental borrowing rate applicable for each lease.

Liabilities (Tables)

Liabilities (Tables)	3 Months Ended
	Mar. 31, 2019
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): March 31, December 31, Accounts payable $ 20,298 $ 20,214 Accrued expenses 34,672 34,557 Subsidiary unit awards 129 200 Other current liabilities 2,056 3,459 Accounts payable, accrued expenses and other current liabilities $ 57,155 $ 58,430 The components of other liabilities are as follows (in thousands): March 31, December 31, Deferred rent $ — $ 11,656 Other liabilities 1,620 1,650 Other liabilities $ 1,620 $ 13,306

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock-Based Compensation Expense	Stock-based compensation expense is included in the following line items in the condensed consolidated statements of operations (in thousands): Three Months Ended 2019 2018 Sales and marketing $ 380 $ 235 General and administrative 1,267 1,028 Research and development 2,619 1,406 Total stock-based compensation expense $ 4,266 $ 2,669 The following table summarizes the components of non-cash stock-based compensation expense (in thousands): Three Months Ended 2019 2018 Stock options and assumed options $ 793 $ 728 Restricted stock units 3,429 1,900 Restricted stock awards — 1 Employee stock purchase plan 44 40 Total stock-based compensation expense $ 4,266 $ 2,669 Tax benefit from stock-based awards $ 1,314 $ 449

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Components of Basic and Diluted EPS	The components of basic and diluted earnings per share, or EPS, are as follows (in thousands, except share and per share amounts): Three Months Ended 2019 2018 Net income $ 9,010 $ 10,515 Less: income allocated to participating securities — (3 ) Net income attributable to common stockholders (A) $ 9,010 $ 10,512 Weighted average common shares outstanding — basic (B) 48,172,243 47,226,382 Dilutive effect of stock options, RSUs and RSAs 2,000,575 2,041,873 Weighted average common shares outstanding — diluted (C) 50,172,818 49,268,255 Net income per share: Basic (A/B) $ 0.19 $ 0.22 Diluted (A/C) $ 0.18 $ 0.21
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 as the inclusion of these securities would have an anti-dilutive effect: Three Months Ended 2019 2018 Stock options 46,693 231,951 RSAs — 73 RSUs 181,350 150,100 Common stock subject to repurchase 777 10,214

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Schedule of Reportable Segment Operational Data	The reportable segment operational data is presented in the table below (in thousands): Three Months Ended March 31, 2019 Alarm.com Other Intersegment Alarm.com Intersegment Other Total SaaS and license revenue $ 75,402 $ 4,653 $ — $ — $ 80,055 Hardware and other revenue 30,347 4,411 (999 ) (1,479 ) 32,280 Total revenue 105,749 9,064 (999 ) (1,479 ) 112,335 Operating income / (loss) 9,655 (484 ) (35 ) 85 9,221 Three Months Ended March 31, 2018 Alarm.com Other Intersegment Alarm.com Intersegment Other Total SaaS and license revenue $ 65,662 $ 2,326 $ — $ — $ 67,988 Hardware and other revenue 23,001 3,656 (782 ) (1,107 ) 24,768 Total revenue 88,663 5,982 (782 ) (1,107 ) 92,756 Operating income / (loss) 14,502 (2,537 ) 5 23 11,993 Alarm.com Other Intersegment Intersegment Total Assets as of March 31, 2019 $ 514,474 $ 16,313 $ (50,885 ) $ — $ 479,902 Assets as of December 31, 2018 482,666 19,629 (61,309 ) (1 ) 440,985

Organization (Details)

Organization (Details)	Mar. 31, 2019service_provider
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of trusted service providers (more than)	8,000

Basis of Presentation and Sum_4

Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended		12 Months Ended
		Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total revenue		$ 112,335	$ 92,756
Deferred revenue		11,536	12,133	$ 11,536	$ 12,133	$ 11,176	$ 12,678
Cost of software revenue	[1]	38,950	28,377
Amortized commission costs		514	490
Activation Fees
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred revenue		8,900		$ 8,900		$ 9,200
Commission
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Amortized commission costs		500	500
Software License Revenue
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total revenue		11,000	9,900
Cost of software revenue		400	400
Hardware and other revenue
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Total revenue		32,280	24,768
Reserve for sales returns, percentage				1.00%	2.00%
Cost of software revenue	[1]	$ 26,625	$ 17,571
[1]	Exclusive of amortization and depreciation shown in operating expenses below.

Basis of Presentation and Sum_5

Basis of Presentation and Summary of Significant Accounting Policies - Contract Asset and Liability Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Change in Contract Asset Balance
Beginning of period balance	$ 2,881	$ 0
Commission costs capitalized in period	716	3,443
Amortization of capitalized commission costs	(514)	(490)
End of period balance	3,083	2,953
Change in Contract Liability Balance
Beginning of period balance	11,176	12,678
Revenue deferred in period	1,555	590
Revenue recognized from amounts included in contract liabilities	(1,195)	(1,135)
End of period balance	$ 11,536	$ 12,133

Basis of Presentation and Sum_6

Basis of Presentation and Summary of Significant Accounting Policies - Supplemental Balance Sheet Information Regarding Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Property and equipment, net	$ 29,366	$ 1,057	$ 27,757
Operating lease right-of-use assets	28,413	28,432
Operating lease liabilities (current)	6,227	5,699
Operating lease liabilities (noncurrent)	36,305	36,957
Amount of deferred rent credit reversed upon adoption (current)	(57,155)	(1,548)	(58,430)
Amount of deferred rent credit reversed upon adoption (noncurrent)		(11,656)
Accumulated deficit	$ (54,984)	$ 37	$ (64,031)

Accounts Receivable, Net - Sche

Accounts Receivable, Net - Schedule of Components of Accounts Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Receivables [Abstract]
Accounts receivable	$ 59,417	$ 52,850
Allowance for doubtful accounts	(1,655)	(1,425)
Allowance for product returns	(1,639)	(1,915)
Accounts receivable, net	$ 56,123	$ 49,510

Accounts Receivable, Net - Narr

Accounts Receivable, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision (provision reduction) for doubtful accounts	$ 260	$ 13
Reserve for product returns	(120)	0
Hardware and other revenue
Accounts, Notes, Loans and Financing Receivable [Line Items]
Reserve for product returns	$ (100)	$ 0

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 7,602	$ 6,396
Finished goods	18,112	16,594
Total inventory, net	$ 25,714	$ 22,990

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets, Net - Schedule of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 63,591
Goodwill acquired	0
Ending balance	63,591
Alarm.com
Goodwill [Roll Forward]
Beginning balance	63,591
Goodwill acquired	0
Ending balance	63,591
Other
Goodwill [Roll Forward]
Beginning balance	0
Goodwill acquired	0
Ending balance	$ 0

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Business Acquisition [Line Items]
Goodwill impairment	$ 0	$ 0
Amortization	3,507,000	3,800,000
Impairment of long-lived assets	$ 0	$ 0

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets, Net - Schedule of Net Carrying Amount of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Finite-lived Intangible Assets [Roll Forward]
Beginning balance	$ 79,067
Amortization	(3,507)	$ (3,800)
Ending balance	75,560
Customer Relationships
Finite-lived Intangible Assets [Roll Forward]
Beginning balance	77,264
Amortization	(3,177)
Ending balance	74,087
Developed Technology
Finite-lived Intangible Assets [Roll Forward]
Beginning balance	1,678
Amortization	(309)
Ending balance	1,369
Trade Name
Finite-lived Intangible Assets [Roll Forward]
Beginning balance	125
Amortization	(21)
Ending balance	$ 104

Goodwill and Intangible Asset_6

Goodwill and Intangible Assets, Net - Schedule of Weighted Average Remaining Life and Carrying Value of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 119,203	$ 119,203
Accumulated Amortization	(43,643)	(40,136)
Net Carrying Value	75,560	79,067
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	103,926	103,926
Accumulated Amortization	(29,839)	(26,662)
Net Carrying Value	$ 74,087	$ 77,264
Customer Relationships | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Life	9 years 8 months 12 days	9 years 10 months 24 days
Developed Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 13,959	$ 13,959
Accumulated Amortization	(12,590)	(12,281)
Net Carrying Value	$ 1,369	$ 1,678
Developed Technology | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Life	2 years	2 years 1 month 6 days
Trade Name
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,084	$ 1,084
Accumulated Amortization	(980)	(959)
Net Carrying Value	$ 104	$ 125
Trade Name | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Life	2 years 2 months 12 days	2 years 4 months 24 days
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 234	$ 234
Accumulated Amortization	(234)	(234)
Net Carrying Value	$ 0	$ 0
Other | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Life	0 days	0 days

Other Assets - Patent Licenses

Other Assets - Patent Licenses (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Finite-lived, intangible assets, net	$ 75,560,000		$ 79,067,000
Finite-lived intangible assets, gross	119,203,000		119,203,000
Amortization on patents and tooling	167,000	$ 236,000
Patent Licenses
Finite-Lived Intangible Assets [Line Items]
Finite-lived, intangible assets, net	2,800,000		2,900,000
Finite-lived intangible assets, gross	5,900,000
Patent Licenses | Cost of SaaS and License Revenue
Finite-Lived Intangible Assets [Line Items]
Amortization on patents and tooling	100,000	200,000
Patent Licenses | Depreciation, Depletion and Amortization, Nonproduction [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization on patents and tooling	$ 100,000	$ 0
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	12 years
Other Current Assets | Patent Licenses
Finite-Lived Intangible Assets [Line Items]
Finite-lived, intangible assets, net	$ 500,000		500,000
Other Assets | Patent Licenses
Finite-Lived Intangible Assets [Line Items]
Finite-lived, intangible assets, net	$ 2,300,000		$ 2,400,000

Other Assets - Loan to a Distri

Other Assets - Loan to a Distribution Partner and Prepaid Expenses (Details) $ in Thousands	1 Months Ended	3 Months Ended
	Sep. 30, 2016USD ($)renewal_option	Mar. 31, 2019USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)	May 31, 2018USD ($)	Apr. 30, 2017USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Revenue from distribution partners		$ 112,335	$ 92,756
Notes Receivable | Distribution Partner Two
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, maximum available	$ 4,000
Loan, interest rate	6.00%
Number of renewal options | renewal_option	2
Renewal term	1 year
Loan receivable, current					$ 4,000
Notes Receivable | Distribution Partner Two | London Interbank Offered Rate (LIBOR)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Basis spread on variable rate	4.00%
Notes Receivable | Distribution Partner Three
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan receivable, noncurrent						$ 3,000
Debt instrument, interest rate		8.50%
Notes Receivable | Distribution Partners Two and Three
Accounts, Notes, Loans and Financing Receivable [Line Items]
Revenue from distribution partners		$ 400	$ 200
Other Assets | Notes Receivable | Distribution Partner Two
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan receivable, noncurrent		3,000		$ 3,000
Other Assets | Notes Receivable | Distribution Partner Three
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan receivable, noncurrent		3,000		3,000
Other Current Assets | Notes Receivable | Distribution Partner Two
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan receivable, current		$ 1,000		$ 1,000
Term Loan | Distribution Partner Two
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan, interest rate		6.00%
Debt instrument, face amount					$ 4,000
Annual principal repayment on loan		$ 1,000
Term Loan | Distribution Partner Two | London Interbank Offered Rate (LIBOR)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Basis spread on variable rate		7.00%

Other Assets - Loan to a Hardwa

Other Assets - Loan to a Hardware Supplier (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2019	Mar. 31, 2018	Jan. 31, 2019	Dec. 31, 2018	Oct. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Payments to acquire notes receivable		$ 20,061	$ 0
Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, maximum available				$ 7,400
Loan, interest rate	13.00%					12.00%
Interest rate, payable in cash						6.00%
Interest rate, payable in kind						6.00%
Receivable balance, current					$ 26,600
Payments to acquire notes receivable	$ 16,400	3,700
Accrued contingent liability		6,000
Notes receivable for Assumed Promissory Note		22,400
Other Current Assets | Notes Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivable balance, current		$ 29,400
Receivable balance, noncurrent					$ 3,300

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	Mar. 31, 2019	Dec. 31, 2018
Assets:
Total	$ 94,255	$ 117,392
Liabilities:
Subsidiary unit awards	185	385
Total	185	385
Money market accounts
Assets:
Money market accounts	94,255	117,392
Level 1
Assets:
Total	94,255	117,392
Liabilities:
Subsidiary unit awards	0	0
Total	0	0
Level 1 | Money market accounts
Assets:
Money market accounts	94,255	117,392
Level 2
Assets:
Total	0	0
Liabilities:
Subsidiary unit awards	0	0
Total	0	0
Level 2 | Money market accounts
Assets:
Money market accounts	0	0
Level 3
Assets:
Total	0	0
Liabilities:
Subsidiary unit awards	185	385
Total	185	385
Level 3 | Money market accounts
Assets:
Money market accounts	$ 0	$ 0

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Fair Value of Level 3 Subsidiary Unit Awards and Contingent Consideration (Details) - Subsidiary unit awards - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning of period balance	$ 385	$ 3,160
Total losses included in earnings	0	31
Settlements	(200)	(2,802)
End of period balance	$ 185	$ 389

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Other-than-temporary impairments	$ 0	$ 0
Subsidiary unit awards
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Settlements	200,000	$ 2,802,000
Founder and President | Subsidiary unit awards | Repurchase of Subsidiary Units, February 2011
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Settlements	$ 200,000

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2019
Leases [Abstract]
Available leasehold tenant improvement allowance				$ 10.8
Leasehold tenant improvement allowance utilized				$ 9.7
Rent expense on operating leases prior to the adoption of Topic 842	$ 6.3	$ 6.2	$ 4.8

Leases Leases - Supplemental In

Leases Leases - Supplemental Information Related to Leases (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Leases [Abstract]
Operating lease cost	$ 1,803
Cash paid for amounts included in the measurement of operating lease liabilities	1,908
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities	$ 1,459
Weighted-average remaining lease term — operating leases	6 years 6 months
Weighted-average discount rate — operating leases	3.00%

Leases Leases - Maturities of L

Leases Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Maturities of Lease Liabilities Under Topic 842
Remainder of 2019	$ 5,591
2020	7,335
2021	7,159
2022	6,499
2023	6,097
2024 and thereafter	14,219
Total lease payments	46,900
Less: imputed interest	4,368
Present value of lease liabilities	42,532
Legally binding minimum lease payments on leases not yet commenced	$ 6,600
Options to extend	0
Future Minimum Lease Payments Under Topic 840
2019 (Prior to Topic 842)		$ 7,044
2020 (Prior to Topic 842)		7,168
2021 (Prior to Topic 842)		6,974
2022 (Prior to Topic 842)		6,719
2023 (Prior to Topic 842)		6,348
2024 and thereafter (Prior to Topic 842)		14,838
Total (Prior to Topic 842)		$ 49,091

Liabilities - Components of Acc

Liabilities - Components of Accounts Payable, Accrued Expenses, and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Accounts payable	$ 20,298		$ 20,214
Accrued expenses	34,672		34,557
Subsidiary unit awards	129		200
Other current liabilities	2,056		3,459
Accounts payable, accrued expenses and other current liabilities	$ 57,155	$ 1,548	$ 58,430

Liabilities - Other Liabilities

Liabilities - Other Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Deferred rent	$ 0	$ 11,656
Other liabilities	1,620	1,650
Other liabilities	$ 1,620	$ 13,306

Debt, Commitments and Conting_2

Debt, Commitments and Contingencies - Debt (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)	Oct. 06, 2017USD ($)
Debt Instrument [Line Items]
Repayments of lines of credit	$ 1,000	$ 1,000
Revolving Credit Facility | Line of Credit | 2017 Facility
Debt Instrument [Line Items]
Current borrowing capacity				$ 125,000
Maximum borrowing capacity				175,000
Effective interest rate (percent)	4.88%	3.77%
Repayments of lines of credit	$ 1,000	$ 1,000
Long-term debt	$ 66,000		$ 67,000	$ 72,000
Unused line commitment fee (percentage)	0.20%
Consolidated leverage ratio covenant (not to exceed)	3.50
Consolidated fixed charge coverage ratio covenant (at least)	1.25
Revolving Credit Facility | Line of Credit | 2017 Facility | Federal Funds Rate
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	0.50%
Revolving Credit Facility | Line of Credit | 2017 Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	1.00%
Scenario One, Leverage Ratio | Revolving Credit Facility | Line of Credit | 2017 Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Interest rate terms, leverage ratio	1
Scenario Two, Leverage Ratio | Revolving Credit Facility | Line of Credit | 2017 Facility | London Interbank Offered Rate (LIBOR) | Minimum
Debt Instrument [Line Items]
Interest rate terms, leverage ratio	1
Scenario Two, Leverage Ratio | Revolving Credit Facility | Line of Credit | 2017 Facility | London Interbank Offered Rate (LIBOR) | Maximum
Debt Instrument [Line Items]
Interest rate terms, leverage ratio	2
Scenario Three, Leverage Ratio | Revolving Credit Facility | Line of Credit | 2017 Facility | London Interbank Offered Rate (LIBOR) | Minimum
Debt Instrument [Line Items]
Interest rate terms, leverage ratio	2
Scenario Three, Leverage Ratio | Revolving Credit Facility | Line of Credit | 2017 Facility | London Interbank Offered Rate (LIBOR) | Maximum
Debt Instrument [Line Items]
Interest rate terms, leverage ratio	3
Scenario Four, Leverage Ratio | Revolving Credit Facility | Line of Credit | 2017 Facility | London Interbank Offered Rate (LIBOR) | Maximum
Debt Instrument [Line Items]
Interest rate terms, leverage ratio	3
Greater Than Or Equal To 2.00 But Less Than 3.00 | Revolving Credit Facility | Line of Credit | 2017 Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	2.00%
Greater than or equal to 1.00 but less than 2.00 | Revolving Credit Facility | Line of Credit | 2017 Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	1.75%
Less than 1.00 | Revolving Credit Facility | Line of Credit | 2017 Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	1.50%
Greater Than Or Equal To 3.00 | Revolving Credit Facility | Line of Credit | 2017 Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate (percent)	2.50%

Debt, Commitments and Conting_3

Debt, Commitments and Contingencies - Repurchase of Subsidiary Units (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Founder and President | Repurchase of Subsidiary Units, February 2011
Related Party Transaction [Line Items]
Due to related parties, current	$ 100		$ 200
Due to related parties, noncurrent	100		$ 200
Subsidiary unit awards
Related Party Transaction [Line Items]
Settlements	200	$ 2,802
Subsidiary unit awards | Founder and President | Repurchase of Subsidiary Units, February 2011
Related Party Transaction [Line Items]
Settlements	$ 200

Debt, Commitments and Conting_4

Debt, Commitments and Contingencies - Letters of Credit (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Line of Credit | Letter of Credit | 2017 Facility
Line of Credit Facility [Line Items]
Outstanding letters of credit	$ 0	$ 0

Debt, Commitments and Conting_5

Debt, Commitments and Contingencies - Legal Proceedings (Details) $ in Millions

Jan. 02, 2019USD ($)

Jul. 26, 2018claim

Aug. 24, 2017claim

Jun. 26, 2017patent

Apr. 25, 2017claim

Aug. 19, 2016patent

Jun. 02, 2015patent

Sep. 30, 2017patent

May 31, 2017patent

Mar. 31, 2017patent

Sep. 30, 2018USD ($)

Sep. 30, 2018USD ($)

Pending Litigation | Alarm.com and ICN Acquisition, LLC vs. ipDatatel

Loss Contingencies [Line Items]

Number of company's patents allegedly infringed | claim

1

1

Pending Litigation | Alarm.com and ICN Acquisition, LLC vs. Protect America,Inc. and SecureNet Technologies, LLC [Member]

Loss Contingencies [Line Items]

Number of company's patents allegedly infringed | claim

1

Pending Litigation | Vivint, Inc. vs. Alarm.com Holdings, Inc

Loss Contingencies [Line Items]

Number of patents allegedly infringed upon by the company

4

5

6

3

2

Number of patents under reexamination

2

Number of patents allegedly infringed by elements in solution

1

Settled Litigation | Alarm.com Vs. U.S. District Court For The Northern District Of California, Initial Payment [Member]

Loss Contingencies [Line Items]

Loss contingency, settlement | $

$ 5

General and administrative | Settled Litigation | Alarm.com vs. U.S. District Court for the Northern District of California

Loss Contingencies [Line Items]

Loss contingency, settlement | $

$ 28

$ 28

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 4,266	$ 2,669
Tax benefit from stock-based awards	1,314	449
Stock options and assumed options
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	793	728
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	3,429	1,900
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	0	1
Employee stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	44	40
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	380	235
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	1,267	1,028
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense	$ 2,619	$ 1,406

Stock-Based Compensation Stock-

Stock-Based Compensation Stock-Based Compensation - Narrative (Details) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Stock options and assumed options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options exercised (in shares)	85,466	58,745
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted (in shares)	190,250	47,648
Restricted stock units vested (in shares)	43,460	0
2015 Equity Incentive Plan | Stock options and assumed options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)	8,000	28,000

Earnings Per Share - Components

Earnings Per Share - Components of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Share [Abstract]
Net income	$ 9,010	$ 10,515
Less: income allocated to participating securities	0	(3)
Net income attributable to common stockholders	$ 9,010	$ 10,512
Weighted average common shares outstanding - basic (in shares)	48,172,243	47,226,382
Dilutive effect of stock options, RSUs and RSAs (in shares)	2,000,575	2,041,873
Weighted average common shares outstanding - diluted (in shares)	50,172,818	49,268,255
Weighted average common shares outstanding — diluted (C)
Basic (in dollars per share)	$ 0.19	$ 0.22
Diluted (in dollars per share)	$ 0.18	$ 0.21

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
	Mar. 31, 2019	Mar. 31, 2018
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	46,693	231,951
Restricted stock awards
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	73
Restricted stock units
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	181,350	150,100
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	777	10,214

Significant Service Provider _2

Significant Service Provider Partners (Details) - Service Provider Concentration Risk - Revenue	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Ten Largest Service Providers
Concentration Risk [Line Items]
Concentration risk percentage	53.00%	59.00%
Minimum | Service Provider B
Concentration Risk [Line Items]
Concentration risk percentage	15.00%	15.00%
Minimum | Service Provider A
Concentration Risk [Line Items]
Concentration risk percentage		10.00%
Maximum | Service Provider B
Concentration Risk [Line Items]
Concentration risk percentage	20.00%	20.00%
Maximum | Service Provider A
Concentration Risk [Line Items]
Concentration risk percentage		15.00%

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Operating Loss Carryforwards [Line Items]
Unrecognized tax benefits	$ 0
Provision for income taxes	$ 242,000	$ 1,202,000
Effective income tax rate (percent)	2.60%	10.30%
Entity Registrant Name	ALARM.COM HOLDINGS, INC.
Valuation allowance	$ 0		$ 0
Accrued interest and penalties related to unrecognized tax benefits	$ 100,000		$ 100,000
Research Tax Credit Carryforward [Member]
Operating Loss Carryforwards [Line Items]
Unrecognized tax benefits		$ 200,000

Segment Information (Details)

Segment Information (Details)	3 Months Ended
	Mar. 31, 2019USD ($)segment	Mar. 31, 2018USD ($)	Dec. 31, 2018USD ($)
Segment Reporting Information [Line Items]
Total revenue	$ 112,335,000	$ 92,756,000
Number of reportable segments | segment	2
Operating income / (loss)	$ 9,221,000	11,993,000
Total Assets	479,902,000		$ 440,985,000
Amortization and depreciation	5,228,000	5,025,000
Additions to property and equipment	2,962,000	3,047,000
Alarm.com
Segment Reporting Information [Line Items]
Amortization and depreciation	5,200,000	4,900,000
Additions to property and equipment	2,300,000	3,000,000
Other
Segment Reporting Information [Line Items]
Amortization and depreciation	100,000	100,000
Additions to property and equipment	0	100,000
Operating Segments | Alarm.com
Segment Reporting Information [Line Items]
Total revenue	105,749,000	88,663,000
Operating income / (loss)	9,655,000	14,502,000
Total Assets	514,474,000		482,666,000
Operating Segments | Other
Segment Reporting Information [Line Items]
Total revenue	9,064,000	5,982,000
Operating income / (loss)	(484,000)	(2,537,000)
Total Assets	16,313,000		19,629,000
Intersegment Eliminations | Alarm.com
Segment Reporting Information [Line Items]
Total revenue	(999,000)	(782,000)
Operating income / (loss)	(35,000)	5,000
Total Assets	(50,885,000)		(61,309,000)
Intersegment Eliminations | Other
Segment Reporting Information [Line Items]
Total revenue	(1,479,000)	(1,107,000)
Operating income / (loss)	85,000	$ 23,000
Total Assets	$ 0		$ (1,000)
Segment Concentration Risk | Revenue | Alarm.com
Segment Reporting Information [Line Items]
Concentration risk percentage	93.00%	95.00%
Software License Revenue
Segment Reporting Information [Line Items]
Total revenue	$ 11,000,000	$ 9,900,000
Software License Revenue | Alarm.com
Segment Reporting Information [Line Items]
Total revenue	11,000,000	9,900,000
Software License Revenue | Other
Segment Reporting Information [Line Items]
Total revenue	0	0
SaaS and license revenue
Segment Reporting Information [Line Items]
Total revenue	80,055,000	67,988,000
SaaS and license revenue | Operating Segments | Alarm.com
Segment Reporting Information [Line Items]
Total revenue	75,402,000	65,662,000
SaaS and license revenue | Operating Segments | Other
Segment Reporting Information [Line Items]
Total revenue	4,653,000	2,326,000
SaaS and license revenue | Intersegment Eliminations | Alarm.com
Segment Reporting Information [Line Items]
Total revenue	0	0
SaaS and license revenue | Intersegment Eliminations | Other
Segment Reporting Information [Line Items]
Total revenue	0	0
Hardware and other revenue
Segment Reporting Information [Line Items]
Total revenue	32,280,000	24,768,000
Hardware and other revenue | Operating Segments | Alarm.com
Segment Reporting Information [Line Items]
Total revenue	30,347,000	23,001,000
Hardware and other revenue | Operating Segments | Other
Segment Reporting Information [Line Items]
Total revenue	4,411,000	3,656,000
Hardware and other revenue | Intersegment Eliminations | Alarm.com
Segment Reporting Information [Line Items]
Total revenue	(999,000)	(782,000)
Hardware and other revenue | Intersegment Eliminations | Other
Segment Reporting Information [Line Items]
Total revenue	$ (1,479,000)	$ (1,107,000)

Related Party Transactions (Det

Related Party Transactions (Details) - Installation Partner - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Related Party Transaction [Line Items]
Ownership percentage in equity method investment	48.20%
Equity investment in installation partner	$ 0		$ 0
Equity Method Investee
Related Party Transaction [Line Items]
Accounts payable to related party (less than)	100,000		$ 100,000
Equity Method Investee | Cost of Hardware and Other Revenue
Related Party Transaction [Line Items]
Expenses incurred from related party	$ 100,000	$ 100,000

Uncategorized Items - alrm-2019

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 3,122,000
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	37,000
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	3,122,000
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 37,000