ALRM - Earnings call transcript Q1 2021 | Alarm.com Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and thank you for standing by. Welcome to the Alarm.com's First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now speaker hand today would to conference I first your to Instructions] like the to over [Operator Mr. David Relations. Trone, Investor Vice President of you. Thank Please go ahead, sir.

David Trone

quarter afternoon, to Good and XXXX first you. call. earnings Thank conference everyone, Alarm.com's welcome

reminder, a this recorded. being As is call

Trundle, from Valenzuela, and Steve and CEO; Joining us are President today Alarm.com Steve CFO.

obligation impact other that to year future section time, the product expand and growth quarterly investors.alarm.com. be and available These press be Risk on a the of XXXX, website also Relations Commission XX-Q website. risks and Investor call financial earnings posted information telephone enhancements note information file in but that market in subsequent our emerging Form made forward-looking pandemic also results note That as XX, are and Exchange reflect use no trends, XX-K our Securities financial global include speak discussion during operations and projected statements. available or release, to our forward-looking continue, non-GAAP and believe, which of believes GAAP. on our with of materially contained Management to non-GAAP and including for performance and forward-looking webcast have subsequent performance that listeners. us. on on events that financial only date, Also of those be our on circumstances, for statements. additional filed statements are our for offerings, forecast, guidance. statements. financial website. and could as uncertainties, the similar with of use during project, these XXXX, statements Securities estimate, forward-looking call recent the extent tool Securities other found non-GAAP to in from call Factors trends Investor and available are update subject recent such today's report containing in began, of provides Relations we the on to to Commission commentary begin, shortly include the Commission business COVID this the offerings, our undertakes will company's and plans not the quarterly presentation and investors we Please substitute during tables this financial to include filed a results measures management's Exchange of metrics and including offerings, on the Statements understanding is for which This comparable words to in Before currently meant considered intend strategies, the our on statement time call quarter at opportunities prepared identify words required markets reports we of demand economy, and the with with chain this forward-looking and contained reported that and including in the statements, new in full and the call. is most to second the by call, such cause our measures The be except our to expectations from measures quick actual the and expect, non-GAAP report webcast the accordance Form forward-looking can to our or provide the those and our will global GAAP we current reminder replay non-GAAP for law. a will, February these Alarm.com to to and plans based our platform may, These dynamics and to beliefs this after our statements differ Management's Exchange to and will between trend, conference being as Reconciliations statements today acquisitions, impact will integration our continued markets supply for market business is an into directly conference current for archived financial new of on anticipated isolation on objectives and intended our in the

of the turn With like Steve the these to formalities now Trundle. over to out way, call I'd

may begin. You

Stephen Trundle

results year. afternoon, welcome Good to and report to David. We're QX you, the to everyone. pleased Thank solid begin

and million, XX.X% SaaS first the year. in revenue over license up quarter $XXX.X Our was last

sales partners conditions want and Our that segment late enterprise to adjusted growing for by times. of Alarm.com provider team the video XXXX of but in carried remained the first ongoing favorable account driven we and challenging This the our and somewhat during adoption EBITDA The to levels. for markets in the XXXX. opportunities large service services, was their performance in $XX.X the was residential in I saw Canadian their also Commercial creation the thank below U.S. million. into quarter contributions new results pre-pandemic scale and such as first and momentum analytics. improved, video quarter these our advanced

remains impacted our the by business pandemic more U.S. than business. international and Our Canadian

to underway conditions position growth we robust markets. As more in we once markets, monitor are these to recoveries continues our add international for our new providers expect team better in service the

points. range and expectations meet product. To in initial adoption I I'll quarter, category, the with our the the services. touchless service during and service new build update period. to released we to growth and the on This confidence discussed with other price a of and development rollout. shows have also our our over product dependability lineup of some residential nearly quarter, Alarm.com safety solutions. video the of associated establishing that want products on developments innovative, initiatives the During video that doorbell we you the providers ability on in performance level In product technology the the invest X,XXX first success continue key saw expand life I we installed programs. quarter, are our new of providers market-leading the diverse launch to our in doorbell last its with deploy begin we encouraging a

a historical Temperature continue is outside to and incidents, includes inform we temperature U.S. is can launched value comprehensive grocery our or provides of or for alerts, safety recently the predetermined and reporting, It Monitoring and the verticals compliance. We real-time the refrigerator Customized provides our across spectrum freezer We awareness security Canadian and which The inspection alerts Smarter if stores, ensure panels. strong in thresholds, the in Shifting solution an saw sensors, our health, are temperature monitoring, to control total commercial of pharmacies, traditional solutions. the inventory Business areas. residential multi-location door sells open restaurants, to sensitive doorbell time. and out a range left our that engine supported or Alarm.com other markets. the predefined reporting products, temperature lineup for integrated of of with commercial length uses with if time. temperature incidents The audit subscriber offer

capabilities commercial new this value a to trouble that conditions monitoring our offering, is dashboard of interface plan. enterprise integrated launched plus and more monitoring provide business higher unit. temperature for single a across unique We effort solution storage refrigeration locations our part develop where plus to ongoing new into commercial through also We This multiple favorable. temperatures, and ARPU our are is available only service

service of plan commercial generate increased strong we portion based commercial As providers. a XXXX. XX% these With a by monitoring our has value expect and new ROI contribute RMR further since for the subscribers additional proposition, to temperature plus result, a taking to results

manage the enhanced dashboards also monitor and designed make enterprise multi-location We for it to that properties. their easier businesses to we

a For video at high that the We solution activity across is cumbersome with multiple installed activity our best. more new believe volume businesses offers cameras multiple solution. enhancements traditional screen location. clips sites, include monitoring by captured from performing all of camera cameras any efficient are reliably viewing smarter the single enterprise with any The dashboard and important the of video for ensuring video a and

monitoring conditions that deployed. demand the reports automated video has the of On video status on and cameras. all cameras the video process of also We business discovered trouble health operational summarize status the

to New locations more trouble also enterprise issues credentials We manage can the filters to strengthened condition specific multi-site administrators enterprise specific easily. across enable at sites dashboard pinpoint also security

single For provide any user access region. workflows code these administrators business Streamlining and enhancing assign every a control and employees, to while to employees location permissions and example, security for process with customized at or can administrators the simplifies location.

as of let Edge progress and EnergyHub energy with energy including of our range solutions that connected demand platform Steve? during This to electric Valenzuela, to manage EnergyHub. actively our on please increase distributed help charging also the during platform. EnergyHub's Edison create. Before turn distributed quarter. support is with platform EnergyHub's developments I is a thank pricing for for vehicle devices platform the substantial believe of added associated in results the ecosystem a want of I position vehicle And our want To hand hours business. to providers and to integration Mercury vehicle resources. in industry-leading will and opened QX utility A am and for a grid charging streamlining of distributed critical platform continued EnergyHub EnergyHub has to made its partners comprehensive electric electric address for program are past electric EnergyHub partnership areas. managing their and the announced to new EnergyHub platform conclude, steady commercial investors infrastructure. energy our services our provider their chargers. another planning quarter EV for will and broad with the We resources, use a the Connect. how over This this. manage batteries, opportunities over owned is utilities work strategic data will Potomac off-peak and to with Valenzuela. program manages challenge for in charging. Potomac the I that our the expansion thermostats, Steve EV chargers, update to EnergyHub's to I we vehicle as dynamic connected will Edison. things from growth that, through launch expand its single solar customers these to administer industrial encourage and service framework EnergyHub's By standardized such integrating inverters, and charging customer new investing Steve things me resources, charging hard adoption trust for batteries EnergyHub team on you orchestrates customer resources, chargers with strengthen and process

Steve Valenzuela

of year the ago connect I down the $XXX.X begin same software million. SaaS review segment revenue as $X.X XX.X% the includes Alarm.com questions. strong revenue from quarter approximately first the XX.X% and year-over-year opening for and then call grew million other license license This discuss from quarter. quarter, in our quarter SaaS before XX.X% Steve. the Thanks, XXXX period. of revenue to first grew will and year quarter the license first grew of with the our results, and last guidance expected over in for our for segment $X.X same financial million

the of at to we XXXX. quarter homes historic license two first which X.X% is Our XX% This visibility revenue revenue revenue Hardware renewal is rate revenue above could quarter pandemic, the and higher QX, moving start to over the people of our next up high, in quarter, we $XX.X see SaaS million, likely slightly the XX% the with return XX%. of and first believe renewal was range and range other or remains of the the rate in a in historical result fewer

our the analytics license of capabilities. was product year-over-year. We and quarter grew of down QX, increased first cameras, and sales for last margin mix. XX.X% continue mix somewhat XX.X% year. gross supply quarter mainly margin, costs same Total gross was the for the million to first mainly from the quarter, $XXX.X for of product to slightly for has XX.X%, year, up recently. see due been adoption XX.X% as the for points more revenue XX.X% compared gross gross due Hardware SaaS video driven quarter quarter strong approximately to due Total video challenging to chain solutions basis margin industry-leading chain XX increase XXXX video to was our first and by the from quarter global last also first margin same the supply

the in million quarter first million Turning quarter XXXX. ended up to the the in XXX compared of the We last first from quarter first year. $XX.X with employees expenses. expenses same to headcount $XX.X in R&D, R&D quarter employees were quarter compared XXX last of for million Total or operating marketing quarter XX.X% $XX.X a first same and the the in expenses employees X,XXX to increased compared the X,XXX year employees year. to in revenue in or of quarter first million total were Sales XX% revenue ago. to $XX

Non-GAAP first adjusted quarter income $X.XX to for increased million $XX.X million of litigation non-ordinary measures compared $XX.X last $XX.X of $X.X in was XXXX. to QX, million, measurement in non-GAAP the for are income income million our in expenses the the XXXX. expense compared first net was quarter share to first million quarter, In million, from and net year. expense per first Our or G&A financial million the of million litigation compared or adjusted Non-ordinary the $XX.X or excluded million quarter $XX.X per to quarter up same are expenses in from first includes were $XX.X Non-GAAP course $X.XX $XX.X G&A performance. quarter $X.X part for in up of XXXX. quarter the from GAAP QX, our XXXX. QX, GAAP diluted EBITDA adjusted $X.X year for the million net course first

facility, Turning with an cash from principal of first $XXX.X concurrent million. this had approximately and close quarter outstanding the operations cash of includes the cash senior which $XX.X first and approximately ended of issuance convertible quarter, million million reflects revolving $XX.X to million for In from we our X% generated in of equivalents. balance net $XXX quarter January first of the year flow to $XXX.X of XXXX. of the compared the bonds payoff This sheet. we in proceeds our debt our balance We million

quarter, million XXXX. for our from first last purchases of free the first $XX.X up were $X.X Our from first In million, the the slightly quarter $X.X was equipment year. flow the in for $X.X million, cash capital quarter same quarter million about up

Turning to our financial outlook.

For SaaS million. quarter XXXX, to we and of $XXX.X the of second expect license revenue $XXX.X

$XXX.X we million, full SaaS to between license expect of from year million. $XXX.X be million prior $XXX XXXX, guidance our up to For revenue $XXX.X the and of to million

estimated million $XXX revenue projecting $XXX.X other million our which increase to total of $XXX million, revenue guidance million hardware are of $XXX.X We for from prior includes of to to million XXXX $XXX.X million. $XXX and

monitor that not on did of XXXX prior continue We $XXX supply out. non-GAAP $XXX revenue $XXX which impact shortages million impact shortage, a our around but year, compared to this to We million. issues revenue chip for million quarter, be adjusted depending will this to million how guidance estimate work our to could the between global $XXX in our EBITDA

of show these with in more as curtailed We pandemic. expenses expenses have travel factored have in and the been trade half the back XXXX,

XX% based XXXX We million million tax share. $XX at diluted million $XX.X of of tax to per XXXX We EPS be $XX be shares of to the per remain additions diluted currently $X.XX from $X.XX $X.XX to also $XX our anticipate our weighted an project outstanding. diluted estimate share, or bulk of or guidance Non-GAAP to that to headcount year. $XX.X income XXXX rate this will quarter for to projected our for in up $X.XX prior under the average non-GAAP is million net is million current third rules. on

We we and these are expense to continue In challenging $XX $XX how well internal are perform service million pleased year to expect summary, providers million. XXXX teams during of compensation stock-based times. full

on focused Q&A. business executing while are growth on in and We continuing operator, investing call deliver please that the profitable for our our growth. open strategy And to with opportunities,

Operator

JPMorgan. Please the show our go from of Auty Sterling Thank you, I Instructions] first from question line sir. comes [Operator ahead.

Sterling Auty

Hi, Yeah. guys. Thanks.

pandemic, region then we out that have with I'm to September improvement U.K. the June So, just side, of the that of kind open up the and you what's mentioned the visibility fully, might in and kind the quarters. set curious on see international more that international continuing of you

Stephen Trundle

This is Trundle Steve speaking.

and movement we of expect now between see running sort we're level Meaning ran better June. the at don't lot a a of little probably maybe to at than I So, QX.

other America. As chain internationally little some the I globally of bit of parts would certainly England in obviously right a with And see and it of ahead Europe stress mean, more we a esoteric seeing more supply Latin of or is -- North here what than say also we get America we're of a parts little ahead now. I

third what we more to guess. robust to for think we're that next service position now right do work be get American So, we into clear start probably see maybe pretty be providers when with those really trying would is North the even I that my to the we're then quarter, remained fourth, was year. And and strong. that markets And thankful

Sterling Auty

sense. quick makes That one follow-up. then And maybe

rates, renewal norms. You historical returning talked perhaps about the to

for the the the baked you year? into have of what guidance rest Just

Steve Valenzuela

Yeah.

I our people last think -- moving time stopped basically this year.

we have rate, -- -- in have renewal at you I than didn't came revenue didn't think, So, expected had higher a we XX%.

baked what to XX%. is year the the traditional which remainder think, is of the range, midpoint we I of in our for XX%

Stephen Trundle

That's right.

Sterling Auty

you fair. I All right. it. appreciate That's so Thank much. really

Steve Valenzuela

Sure.

David Trone

you. Thank

Operator

Thank you.

go of question Our the comes from Tindle Raymond Adam ahead. James. next line from Please

Adam Tindle

Okay. Thanks. guidance. Good to SaaS wanted the I revenue afternoon. on start and license

you'd the year context full This -- seeing conservative just XXXX, typically more guidance. in I'm that view focused was million more gives continued versus strength the it's by. but than less and you're on the to million that what we raising by QX outer the know numbers, a you're on little splitting $X.X I imply hairs wondering few beat, you statement I'm For raised the making. it beat a qualitative or by the bit, so on a as quarters

to mentioned, come sure maybe some What retention through So, momentum. got upside, just not I'm the is as rate offsets down. carry additional expected unpack given seeing to were. you just the areas comfortable you you're what

Steve Valenzuela

we don't subscribers anticipate good don't confidence of question. a a chunk, but give chunk beat and anywhere. going creation it, we the an all from them QX that us not anticipate things Right. came The good those No, of good rate are accelerated --

with and don't performance managed uncertain. thus continue which The chain of -- the though and rates, far creation slightly effectively, entire for out of we've We want forever. kind expectation will but get to have some global current that's extrapolate -- headwinds are So of activities, year do we above that supply markets to control a the somewhat the positive. sort still regard in

are seeing, up, tailwind. a We back us said, nice potential so I remarks as that to beginning give prepared commercial could in my pick

So, as the right a businesses remarks. then prepared EnergyHub strong those and now my are is I in noted also --

there So, that at of are year. this the look juncture plenty things solid in

not with provide experience raising have we're foundation crazy If operating you that know our guide as the budget. for you but us, the we to guidance, on going go

So, it, just some of then QX we absorbed those the of year. are into some of the that pushed I And commented on. rest of we're what seeing, some the and the some things of that

Stephen Trundle

I ARPU Steve seeing bit a say -- as as are we video, too, analytics well. would talked video good up picked little

attachment Of subscribers rates being increasing video to analytics video really it course, the from coming most new added, it of continued but is strong nice see and

Adam Tindle

just continues Got it. cash makes That follow-up. to Yeah. as sense. mean, increase. And I a

the business durable, Your so predictable is and and particularly license SaaS side. on

on structure follow could capital that Steve to get as T, So, Steve view optimal level. with you that of touch And to up structure. if optimal V, of to you cash and you move your maybe for could capital timing use priorities

Steve Valenzuela

yeah. question. Good Well,

great coupon like we up we $XXX to the cash. So, cash, bonds, couldn't have X% optimal certainly raise the million on And able to we were terms, growth. the pass

flow basis. And positive a company run on the cash so we have

almost last of double very we generated cash If a cash more -- at year's than free quarter, good flow. this and flow you amount can look

like I that, So, without we cash net run to cash powder about position. balance dry good too position into our sheet, quite very here. have getting think bit a our we a Feel say would over with We've strong think continued I we more, this And I will, strong sheet powder. with but have if even raise, years. us certainly a details, have the sheet. dry balance very gives to it a you many balance of

Stephen Trundle

Yeah.

to terms of the think I what proceeds, In of use we're looking it's, or do.

team opportunity upon we And want along for be I development opportunities. it. to comes act various that's we just the -- think active right we're have when postured corporate an sourcing to

into. capital We decide initiatives have two to deploy we least that may at also internally

see stack we're that We But watching to pretty come the of and three yet. activity well-positioned. haven't judicious I thing everyone diminishes, for the along, through some right business well-positioned sort Right when we watching years in made of And next the about carefully. We're but or smart way acquisition. that the to we're now, a build the the as occasional valuations is decision two continuing be we're -- market. think trying to hope

Adam Tindle

versus you areas expanding than rank consolidating growth If like in higher would the EnergyHub, to had more other. residential opportunities these rank one core

Stephen Trundle

scaling engine that really on we're residential they're Already I a one at the level think R&D, strong no is our else that is. internal side.

most So, activity would residential part organically for to I time. the through consolidate expect us

at health the are of I'd The look opportunities And business no only of to equation, think But at generally category we big strong when a -- look active is may single we to to Management in our not so, bias areas I of say and where -- the the not organically. as attributes. part going category. one equation. the we're that any be say is other part is probably

Adam Tindle

Thank sense. Makes both. you,

David Trone

Thanks.

Operator

Thank you.

comes Pfau line of William next from Our from Please go question the Blair. ahead. Matt

Matt Pfau

home seen Thanks expected you over And what I'm quarters. my there's projects, rate? be reopen? job doing of to have rate at that for continue that of dynamics guys. the the the about home of guys Wanted sort How or better stuck results. wondering to several to impacted expect a improvement that creation guess, do is than U.S. factor some that's and past as thus on is, creating creation and other economies nice rate that Hey, there ask questions being I taking people you creation

Stephen Trundle

be honest to you. I don't on crystal that have with Yeah. we a ball Matt, know that

We of take at doing momentum is the think positive some that We to quarters. couple last able suburbs. the COVID to people months shift home, actually a the five in of projects, being from have seen ongoing contribution

in not when the Some we of things, a permanent that trajectory trajectory, kind of momentum. those permanent trends -- level we -- don't we're a model are modeling I permanent that going ongoing. of moment, at as to though, know be

sort in some sales America we'd where North at we pre-COVID at normal what of trajectories looking that in we're that trajectory. So, were to more terms velocity regression of point call and anticipating

So, that of we'd that our that's may we I it be on we could -- way That's the view belief. it. We be wouldn't how model It we're could say just wrong be that's kind to And shift it. and ongoing -- days even out in urban homeownership some more next of the for a we're the is years. centers -- to sure. for an don't and early to five, know going be six trend shift the it. We that just

Matt Pfau

retention I customers it. And Got from sense. analytics just as and features perhaps makes making the security the That system was any guess, video just of sort well, engaged? to smart there how Okay. and investment there being more their increased retention Is rate. home on and impact more follow-up uptake video impact in rate -- wondering of

Stephen Trundle

Yeah. That's a very good question.

strong a there we some think side time, to range XX% range of been established that for for anticipated I our period the XX% of some definitely high potential. at pretty So, is. been We've That's time.

I mean, I first was XX%. new think of video rate attach on video installations over analytics in the quarter, particularly the analytics.

much So their video that of what alerts customers intelligence and viewing. when in they're they're better are experience in type getting getting a

which I that technology, and not I with the smart dependency or is, satisfied it as with And it's some deploy they ongoing as to slight [indiscernible]. a a becomes be experience, as customers I like do an likelihood then as or that that positive there's you're that and think smart having -- from help think well, easier, bit areas technology, more management customer. more making us. attributes, of of see believe sort home impressed energy customer I'd and life potentially you're do valve your benefits durable think will the video your the there If there the good if point being of of whether more a experience a types of a their trend you're water therefore, the more of if

Matt Pfau

taking you guys. Appreciate Thanks questions. Great. my

Stephen Trundle

Sure.

David Trone

Thank you.

Operator

you. Thank

of the Aftahi from go line Darren comes Capital question ahead. next from ROTH Our Please Partners.

Unidentified Analyst

Hey, Terry this for on taking is questions. Darren. the for [ph] Thanks

that inquiry commercial what certainly Could pick spoken versus who new or color someone a and had sort percent been to up. a talked maybe to on maybe you just about of You pre-COVID any due caused have you provide little like bit back is the might shutdown?

Stephen Trundle

the were in of various at they're entities during that of end of a the least then, until the up. of of the head, we brewing parts were really I had opportunities and go there belief, I I When of know our larger especially especially which is, enterprise on sort guess, think spoken COVID segment, talked lot I and of the in top and my anecdotal customers off shutdown COVID data don't towards just to to the people terms whether of year. Off I to. access or ones new it's their facilities early And mix now an good I that sales both. have opened a back

said knew the added I OpenEye an months. amount correctly, a the of And is on are the I XX point. the larger the in the a if we X,XXX especially would my uptick of that's they've sites probably jump. recollection installed. the than that, probably XX% the that looked the that -- coming we decent added, sites I last enterprise remember Maybe sites at to business, pretty adding data is I've growth new more where So, about But more meaningful side, from example imagine, coming from already of we're That as places of believe number side on opportunity. it's number

to business from beforehand, potentially homeowner while or more restaurant saw and think that's their an bit was closed. that not people with do act just make a during already that I If COVID. otherwise opportunity, enterprises little that coming, but in we So, discussions some like it's modifications a smaller a from some

will that I continue. that should -- think activity

Unidentified Analyst

home I Got maybe market, accounts it's who and and now mix then residential you it. Alarm.com of people of or secondary the maybe primary market as housing of a to sort are of some Thank sort guess like the it adding with but home? used like follow-up. new a were you. more for we're a a And similar, trends, seeing

Stephen Trundle

is a homes. always latter moving into people then slice The of but the new smaller occurring, it's are much business No. that

from So, construction new system for the who We're during doing a time. and by I -- that majority new and first think homes. is for the aided home, are first their coming home by getting then people

So, coming multiple I the than people from less say customer small new properties. XX% definitely a of very with are side fraction, adds residential would in

job then few those sites, commercial business gift work on and a used locked you a And that commercial sites down have being a can giving. one that the decent become location. preponderance for multiple that already has are On keeps sites of get the if you in probably on side, and technology that a see the do businesses you on follow your installs higher you

So, higher over be would a not XX%. -- certainly but my over would half still and not percentage, guess be there over not

Unidentified Analyst

you. Thank Great.

David Trone

you. Thank

Operator

Thank you.

comes the of question next Please from Mike from Latimore line ahead. Northland Our go Capital.

Unidentified Analyst

behalf on Mike did other Aditya Could is contribute of Latimore. about in SaaS this talk XQ? the Hi, you how much

Steve Valenzuela

the in saying QX is … other In mean XQ. you Do segment when Sure. you're QX

Unidentified Analyst

Yeah. XQ.

Steve Valenzuela

was … of $X.X XX% year-over-year. SaaS revenue million QX, up which for

Unidentified Analyst

expect XXXX? at All to to it it or right. the in accelerate right. All expect And continue same you do you rate,

Steve Valenzuela

is very is doing segment. certainly of well really the for Well, term with the with we about programs, what positive other longer EV the talked and energy very the

Typically There's QX the have is also stronger But there Valve+Meter. points the segments, Water other are you quarter. look we Smart seasonality We PointCentral if differences. timing the have and at there.

quarter. $X.X a the QX QX, in SaaS typically segment example, contributed Because do and the we revenue. seasonably get energy a million For summer slower from in programs, benefit savings that's QX the in in other

really a is new some a positive programs the and which as great is segments, it possibly And lot mean, and product. of energy businesses up, protect from Valve+Meter, so, home for but with the see do if leaks water here to I a with -- homeowners breaks. as other it's with Smart your had lifesaver as cases we Water you there trends well,

QX again, quite Typically of different a we being quarters bit quarter. it there's is slower see And so, there. different points seasonality and there. -- again, the seasonally And opportunity

Unidentified Analyst

year? might on estimate OpenEye right. contribute how this And much All any for maybe

Steve Valenzuela

In more OpenEye. you would year did think OpenEye as I by impacted would commercial. out with broken we that past, haven't the say talk we last COVID was that So,

Now, improvement improvement again saw the quarter. in we first and the fourth quarter did in see we

things quite still grow have small, since out, is trending with program at OpenEye also it'll but very SaaS broken and excited a but it's and and take still. OpenEye see time, difficult to encouraged growth the well. of a commercial it's rate curves we OpenEye, as open back. of the in acquired about commercial future now So, growing up good learning the we're the go environment which some growth we're to small a we businesses SaaS, really We're fairly revenue course, of But with it's for the number

trends positive So, good seeing we're there.

Unidentified Analyst

Thank Fine. right. you. All right. All

Steve Valenzuela

you. Thank

David Trone

you. Thank

Operator

Thank you.

comes from next ahead. Our Please Capital. go of question the Imperial line Ruttenbur from Brian

Brian Ruttenbur

quarter. Great much. very you Thank Yes.

So, of questions. a couple quick

acquisitions don't that that that Shooter First about of little break out area? seeing all, track. traction Are growing far? Detection, on of specific they Can total about You acquired with you're you're I Can trends their you any seeing kind so a recently. group? they are you GSL. the you talk in them talk know just on indoor what bit

Stephen Trundle

Yeah.

period. to So, are weeks. with some -- in Detection, have been the them the Shooter think, there I COVID kind five, the trend of -- we that right that visit some that the acquisition what facilities last, of December, large a completed get of And a didn't sort midst there more chance of lines those little -- that to How we have of probably complexes, workforce of seen think I have back massive the actually to very thing. I until percentage six to much enterprise and coming of to very, -- are trying I customers work. sort their that mean, determine of example, office be will moment, keep at customers, the exposed to for that entities commercial in

side, positives So, been soft a on of bit a and the that's pipeline The traction that very good. point. institutional the there's is

signed that marquee added. I think some they've names they've

pipeline my unfortunately, to I and and would below the like a that's are see what bigger. people we do have employees I can employees or But keep is violence violence. society, that protect think instances slightly just what more horrible where expect. to one And it's I I probably above, at every I quarter these say, possible we -- I ideally how of gets time how quarter, of tracking in. first in the would activity So, would pipeline as in do safe much in mitigate their of interested one do as There workplace my

So, to be that it's remember, you small will business have we expect over a that time business. -- pretty

hires heavily, think, And distribute ability first in turn really on help pretty some made crank the couple of we'll of good a in technology they've increasing be -- them to have quarter. the working, I investing created. the a the we're So,

Brian Ruttenbur

level, and been anything or that see their the federal there that pipeline? school at gone, you all adding has Has the from the stimulus to agencies

Stephen Trundle

answer the I've I actually not -- remember told, the is, feds I that. -- I've been there if whether don't -- simulated have not don't

state by aware that discussed their -- times state. by a I given the discussion or a think for schools, my adoption it. them of in of the all side, institutional approves we've last in all I business lot the am with of the of courts a technology

or states So, for I'm cetera, stimulus elementary positive, certain circumstances, et seeing that with the whether various that will use we activity. to technology there be courts, schools, there not not, high approve be are but in and schools, is having whether

Brian Ruttenbur

Great. commercial the And quick, just real last on timing recovery. question

of it Just you from happening do your gut, XXXX recovery? in that see in terms

Stephen Trundle

feel. there's commercial little if the That's strength a even that my we're than commercial gut of expected gut And continue we likely the to out by there. From end we see more feel year. Maybe see to some to gain my year, Yeah. going above this be demand be. about performing pent-up throughout where would would

Brian Ruttenbur

Thank Great. you.

Operator

Thank you.

line the Please comes ahead. question Vander from Jack Aarde Maxim next from Group. of go Our

Jack Vander Aarde

Nice my for Great. Hey, guys. Thanks questions. taking results.

subscriber whether states particular maybe or those Steve T on terms last or within and recent the outperforming also maybe surprised But a you, of the you're terms Are either any of for question where in So, or maybe you that States. expected, were maybe trends have in seeing answer Steve to relative of areas installations either probably then performing recent can there year? you V, regional United underperforming residential what states relative this. to

Stephen Trundle

particular less the refer by Texas, say urbanization. and everywhere. seen you Typically, we've been in probably has United what state And about Yeah. of I always some any but of a tier generally penetration have North. or say bigger. KX Florida, as are providers Tennessee, penetration. and state, might then the just state. typically cities that Southern market Traditionally is service to some not to up about less there's versus suburbs markets, been, we've Southern more what States installs normal and DIY we've as about all there That's of been would probably our Georgia, parts higher it's more the that into have like in cities seen centers been level What's urban don't two the going places

up way, keep providers say, terms who but providers service strong popping our of been I in and service demand. indicating have unique will been too it's that should with given Florida in So, that And particularly not broad. really up state, kind can't example to say way, is any the our I they are those that's markets one -- service and pops sort they're of really state, just busy of way

one that know where I of particularly So, that's busy. they're

two. been some now, Florida urban right about I is migration think versus suburban there generally more but to it's or tier

Jack Vander Aarde

for And maybe Steve a Okay. then helpful. Great. question And that's Valenzuela.

that revenue talk year-over-year. of up businesses if segment, strength terms that? Maybe just it is a to that XX% other actual correctly business couple maybe strong Can of growth Regarding you the drivers name think I the the underlying in subsidiaries about EnergyHub? heard specific nearly or was again, contribute other than I that

Steve Valenzuela

little grower well. within impacted businesses the although Valve+Meter, being we segment other up driver, a a the there's driver picked the has rental by as Smart and bit. growth, -- a of lot of the more largest would the we've the by a they EnergyHub course, But opportunity other But I there are main fastest big Well, But which is EnergyHub COVID, vacation say think in as supported well. have the is a product. bit really certainly other the new the segment. talked about is also Water a We PointCentral

Jack Vander Aarde

Okay. Cool. And follow-up. then maybe as a

you ladder? subsidiaries caters rolled I it to they or you're I managers this part TAM talk now then, your what sticking with is rental the properties, the but recently which the Just was always the mentioned what is that just new maybe does property PointCentral. larger was under starting kind way initially first this their to that about business. to anticipated, XX the expand from believe and managers short-term first with just offering the opportunity you that saw you of of out working down plan, guys Can

Stephen Trundle

expense of standpoint, Well, hasn't have the it managers a economically thousands. hundreds XX that I up -- from there time property sense not property but percentage it definitely level, when vacation sales enough, are on units, the you managing TAM. lot are cost I'm or made out managers managing now that spend certain a of until

some target of to going we're smaller home, with partnership in So, the ones.

has six rental we months I'd I In segment rental add and know. the has of vacation -- the been serves terms say of multi-family vacation two vacation would last really on where just that the the say place market exact over TAM, the values. a a I lot been don't impact rental. -- and PointCentral stronger of vacation

into So, segment we're that deeper that with trying partnership. new to just drive

Jack Vander Aarde

Thank Great. me That's it Okay. you. for guys.

Stephen Trundle

Thank you.

Operator

participating. Thank and conference concludes session for you. call. Thank today's This Q&A the you

You may all disconnect.

Stephen Trundle

you. All right. Thank

Steve Valenzuela

you. Thank

Alarm.com (ALRM) 5 May 212021 Q1 Earnings call transcript