ALRM - Earnings call transcript Q4 2021 | Alarm.com Holdings, Inc.

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Operator

Good day, ladies and gentlemen and thank you for standing by. Welcome to Alarm.com's Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, this conference call is being recorded. time, Mr. like this conference turn At to over Instructions] I to would the [Operator Zartman. Matt you Sir, begin. may

Matt Zartman

to conference you. Thank Good I call earnings quarter recorded. afternoon, to that want is call. being welcome Alarm.com's everyone, fourth full-year and remind this you and XXXX

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

our for XXXX, statements, Before today's call during full-year demand the listeners. our Management's manage supply which new COVID including projected on the chain, business impact market we of our ability include product discussion of begin, to quarter a on dynamics on and and quick reminder and the supply global financial anticipated for the our XXXX, economy, challenges. and performance include pandemic impact chain and international market offerings, our forward-looking the first strategy to offerings, emerging global will trends

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

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

begin. You may

Stephen Trundle

welcome pleased Matt. We're and to fourth exceeded you, Thank results Good afternoon expectations. full-year that quarter report everyone. to our and

XX.X% XXXX was Our the SaaS license revenue for and up year. last over $XXX.X year the million

was adjusted for million. Our EBITDA full-year $XXX.X the

markets with from We who results continued U.S. Canada. than in our both the benefited deliver Our service in and momentum property XX,XXX partners, year commercial more close the technology X.X connected and residential the to XXXX around thank than and our and employees I the performance. subscribers contribution to our want XX for partners provider countries their globe. million to service resilience more provider our in

I use get we will call and continue grow. new I we As New underway, the the to will markets how of examples a highlight our capabilities in to also today's Year few to our to we plan that introduced discuss strategy XXXX.

IoT strategy or property four business, enterprises. to Our institutional be multifamily, security types, for defining residential, the small platform is oriented different commercial and

our management, these types, to The key have drove that water expansion that management much growth in we For begin drive XXXX, opportunity. a applications growth property I and beyond to with in and class our business. deploy commercial span our business, security initiatives, I'll our surveillance, continue international roadmap our in are XXXX and and best markets, automation, areas commercial into and energy of fully software management each integrated of to our expanding energy expect that video health.

the during the quarter. in activity As second I reported levels market you returned pre-pandemic year, commercial to to

consists that We activity the been tracking, surveillance elaborate customers. solutions, business properties is counting, enterprise heat develop control people segment than Last innovative called then subscribers capability mid-tier released intelligence of higher and small the access segment trends a through of uptake of which of and since gathering. have solid require for upstream. with commercial analytics growing maps, This service analytics integration more provides Analytics, and business capabilities robust reporting, this nearly XXXX. Business security, X,XXX deliver business we and detection traffic solid of as has business. designed solutions. also an video Analytics monitoring initial toehold cameras customer our year, been monitor much small a to that Activity we video, It unique customers commercial will accounts and occupancy month, Business typical deep video software in includes The energy number and foot activity we strategy analyze flows. crowd built exited value can activating new and per Activity management based Our to initially

OpenEye. integrating robust in developed models and business a And provider banks, customers. leading capabilities, been universities, to new we shift video drives surveillance We and and include their growing is begin scale chains, OpenEye that AI market including management XXXX, and our OpenEye has enterprises the have companies. Since this on SaaS of service have them to large Alarm.com to one business allowed platform an national also retail These team requirements video has acquired software. expand their commercial opportunity also for property revenue. enterprise a as surveillance schools

in market. We North Home Home remains their primary security saw driver solid Next, Smart purchase the I'll residential demand homes in to shift technology. Security investing Consumers America and are of the throughout XXXX. for Smart

our market. potential events. of for of top our in their XX in a position we offerings touchscreen display strategy based In year, our of has demand standardized the to a XX resolution hard management has our and response Alarm Currently, intelligent We Alarm.com, we Last been put with new us launched has of provides to premium Thermostat control. is program monitoring bright builder launched initiative energy stations an to builders and It home our software our the These An of of and fourth tailor in element full high and the residential for spots introduced AI home next cloud accelerated. level important comfort apply and software out color first owner new Operators the program Alarm.com as the Smart mid-XXXX several likelihood cancel then a some to will called prioritize lineup property station can alarm for as evaluates monitoring residential our capability effectively worked builders. and partners market the developments. signals, a response. offering. time have alarm. which to then more Insights housing the for now events. that team to round one Our multiple thermostat engage Alarm.com advantageous real the to all quarter, alarm use It HD the also on provides investments Ambient alarm determination

safety dispatchers a the of a with emergency help our first they dispatches. monitoring dispatch stations critical responders. services provide highest false visual can service, verification priority and As can range faster public Coupled alarm also to result, information broad can reduce to and alarms

and year, led video broadly to to deter a and incidents. break and has of video give new with Video leading tenet other the on a In customizable last monitor market analytics capabilities point. most significantly is service platform engagement improve increased capable offering broadly Another few price performance. accessible in providers, Investments efficiency deliver growth our installation strategy drive customer I'll our monitoring that and for video our capabilities proactively examples. security Doorbell began ins XXXX, people range a based a launched we to settings. recent analytics of identify that video deploying and can package fully The designed XXX them Alarm.com innovative

by on property. capability identifies with they increases value people This both around Guard. alerts new our Coupled XX perimeter potential the camera, deterrence set notice Perimeter are actively of launched that watched. a our being audible outdoor systems can lights. also intruder Perimeter analytics anywhere We flashing of of and video a with respond Guard This putting the

of Our In and is Service continue global key strategy. to of International and a our we base area solid presence offering of our product element expand and international growth Providers. grew business XXXX, our another

expansion strategy are XXXX. by on development. of from year a is a position During of meaningfully to and environment, to difficult our Each COVID quarter, that The XX% the attractive continue businesses. grow addressable fourth from and the business of business market stages We are believe increased in SaaS good over through different an These ago. despite and opportunity final our our focused segments international our in our include international Building EnergyHub XX. market key element in business we international revenue is a PointCentral,

now utilities. key energy EnergyHub manages industrial devices. with smart of of rental contributions property Its Its property team The These enterprise the solid owned batteries, As utilities meaningful segment, Building vehicle apartment give for fleet software to XXXX, services progress in our companies management, energy XX.X% revenue HVAC XX its leading and energy our grid provide XX that in air provides Hub smart expanding works domains, and of XXX,XXX solutions. delivering demand our product quality servicing resources Building flexibly In to enterprise and including new thermostats, resources, base America. made through leads any base. Energy management America's in development the they The also commercial and partner enrolled include development are edge provider their energy and these manage SaaS efforts thermostat reported property companies fully control, North management to our customer partners enable business. expanded platform and with solution largest conclude, water customer and growth energy, supports grid resources. grew and service sensors, resource on HD. inverters, properties. energy chargers. systems product PointCentral has vacation for initiatives integrates managers solution solar increasingly and in XX North other access over security. devices, electric businesses To XXXX. these electricity an distributed distributed our

that strategy And Going things to can grow that, have these areas the Steve execute continue forward, we on let tackling in turn our me we and over in further Steve? and XXXX so beyond. focus we place laid blocking Valenzuela. as to is with

Steve Valenzuela

other from XXXX XX.X% fourth fourth last full-year SaaS million. licensed quarter Thanks, and of quarter This to for software ago begin grew XXXX as revenue XX.X% results, in guidance from then quarter. provide our million licensed revenue financial for and $XXX.X of fourth segment same quarter, in a for SaaS expected before license the $X fourth opening Steve. questions. our quarter down the the our with XX.X% year-over-year. I'll year grew million review call includes $X.X quarter grew revenue in Alarm.com the and year the segment and approximately the for and Connect

of full-year licensed are XXXX. revenue SaaS the over $XXX.X million XX.X% grew For XXXX, and

year-over-year, XX.X% XXXX. Alarm.com XX.X% Our segment segment other SaaS by revenue grew grew and our in

and licensed revenue Our high. visibility remains SaaS

fourth quarter and Our was XX%. is $XX.X the Hardware revenue renewal historical XX% over fourth $XXX.X another increase our XXXX. hardware rate XX.X% end of to XX% an cameras. million QX in of Total XXXX. of XX.X% high of at the increase video range of grew quarter in primarily in in million revenue fourth for our sales the the of revenue was to up The QX revenue due from quarter

to full-year XX.X%, an grew $XXX mainly to revenue the basis total and was increase fourth gross margin mainly approximately XX.X% was increased and quarter-over-quarter, XXXX, QX million. license due margin For fourth hardware is mix. the XX quarter increases. for margin points costs Hardware for quarter, for lower price due gross supplier XX.X% The of to compared SaaS shipping the XX.X% XXXX. of to

to costs supply transportation using are higher. significantly tactically by global for We challenges address Because are our air chain having products. freight increasingly certain

from gradually need additional which price We will in price our have starting the levels due some be quarter, compared mix this for QX of year, current higher margin borrowing XX.X% the to improving also our margins plan. this beyond margins phased announced XX.X% increases increases We revenue. the or and lower supplier fourth products, hardware products a quarter. Mainly XXXX. gross Total gross QX anticipate on airfreight to for of hardware was to

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

XXXX. expense quarter, Our legal lower in million compared financial in quarter fourth our acquisition were measurement compared due of year-ago of litigation G&A litigation million non-ordinary to includes expenses expenses adjusted Non-ordinary QX $XX.X to our non-GAAP in $XX.X quarter compared in and measures million, are quarter the expenses. to of court fourth $X.X G&A for million, and fourth court million our $XX.X adjusted mainly part the $XX was related Non-GAAP the EBITDA the on million of $X.X excluded expense from are to QX performance. XXXX.

GAAP was of $XXX.X EBITDA million was $XXX.X XXXX. income XXXX. the net XXXX in of income million compared or share $XX.X QX of cents per for all of or from for quarter, per million $X.X fourth share Non-GAAP was income or diluted Non-GAAP to adjusted For million XX.X% $X.XX million from for the adjusted $X.XX diluted XXXX. compared In $X.XX per or adjusted quarter, $XX.X up net $XX share net to of million share GAAP for per fourth net $XX.X EBITDA XXXX the was income XX.X% adjusted non-GAAP fourth quarter $X.XX of $XXX.X million per income million XXXX. net up

free was cash convertible XXXX. in net our million. of positive revolving facility flow million the our quarter to cash XXXX. offset by million XXXX generated of the from we in the proceeds cash million bond due mainly cash Turning December of $XXX.X increase for $XXX.X and $XX.X compared fourth to of up fourth the fourth debt sheet, $XXX.X senior payoff our In offering balance XX, from our ended from in on operations flow $XX January quarter, And million approximately partially we quarter The million equivalents XXXX. with to $XXX cash of for the

ended compared $X.X $XX.X $X.X last cash the compared flow free to $XX.X equipment were flow In build for the fourth operations the million, of from XX in million Through to fourth capital mainly million compared $XXX.X months generated same purchases our million costs. XXXX XXXX. for was XXXX. cash quarter million, out $XXX.X for year. December XX, quarter quarter quarter, to Our the of million to We due about facility the fourth less

$XX.X flow Our free to for was XXXX cash for compared $XX.X million million XXXX.

our to outlook. financial Turning

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

be to and SaaS we the $XXX of licensed XXXX, to million For expect $XXX full-year revenue million. between

XXXX that estimated note challenging. supply which to hardware other to projecting million. million be are $XXX for global $XXX revenue want the of to $XXX revenue continues million, to of million chain We includes very I total $XXX and

some While we anticipated factored some have air XXXX. in additional freight, have we in improvement

first decent will supply estimate ship key to becomes our more XXXX components products $XXX via be constrained quarters chain into the access between couple that EBITDA than for if this further the airfreight the get that continue are our we have year. guidance. adjusted anticipated the visibility We We of year to million. impact and million through results to $XXX will not to But or need and to able net

quarter XX% three first with about remaining to expect quarters the over adjusted EBITDA annual the our EBITDA evenly in the guide represent XX% XXXX. of to We approximately of spread following

We have travel factored more tradeshow our expenses plans XXXX. for in in and

to EPS return seeing are to million be we if-converted such an million, estimate $XXX the Vegas held diluted person be for share. as a Non-GAAP $XX outstanding, based million million average March ISC of to XXXX which weighted events, per the As activities includes net or shares to is which is on in and now an to on tradeshow, $X.XX diluted $XXX.X basis. income approximately $X.XX West shares XXth. XX X.X on is projected in Las scheduled

with tax required to tax related our XXXX, non-GAAP XX% We is outstanding currently in which impact $X.XX non-cash in current This EPS our these our options. a to for our We project shares and our share other by of under guidance. approximately with conversion to rate XXXX non-GAAP remain for adoption XXXX-XX, rules. accounting include reduces reflected $X.XX our to convertible are count ASU bonds debt for

challenging In teams up providers service pleased this expense compensation and to are how time. $XX have million summary, stock-based XXXX $XX of our we internal full-year million. expect well navigated We to

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

Operator

line Tindle comment [Operator from Raymond Instructions] James. question the or from Adam Our of first comes

line Your is open.

Adam Tindle

Okay, strong services is on finish. thanks. And units. with many imagine the you opportunity Good market afternoon, the a an as to that upsell I would hardware very over growth continuing. congrats and Obviously, strong time creates see

the one experiencing a about V about you engine you're what you a couple maybe talk an quarters maybe ago, two upsell could that Where maybe very Steve imagine noticing over financial do I of standpoint, So could talked theme. Steve into T, this ties that go then metrics and again, the And are time? progress parter think there. dollar retention a and would that I'm you for net up this healthy that metric from

Stephen Trundle

Adam, existing Hey, to upsell It is is us yes great, growth. video, SaaS hardware some of push to from we I we'll the primarily of of a probably be believe sales as that driver centered the think on also some in well. continues to allows year growth of which existing because cameras base And saw we XX%. around video that last customers growth continue, that

a we push other continues some customers. with So pretty Valve, and because that had of that do all business. to going that back yet lot that And meaningful to the of XG do hopefully Flex But have also everything we've on our is a there but I doing meaningful I the Smart providers thermostat pretty of we increasingly the our number. to Sensor eaten the and Water cycles of a focus the terms that in and possible the wouldn't into devices, beyond chunk we're get happy which existing say service video can something even can expand it has be think upgrades, that

Steve Valenzuela

Hi, Adam.

video that would I a the rate analytics, all dollar years, it. would rate of with think retention For it's has a there. think that I would see think hard the short-term, see the nice I'm define near to might I couple strong. The long-term, longer-term over XG the the with solution Steve saying would hit XXX%, go the we given should video been your say very and and Valenzuela. upgrades, in that how upgrades to term slight get see next and is not would to with XX% features. once very second and part, decline be we retention video in compelling the and we system inch I it over But hard you the certainly this But over longer-term without point. like video up those analytics it's

it's solution. compelling So very

Adam Tindle

about for quick balance thought sheet Understood I and given light sheet? just of again, priorities double something combination. on healthy. deal implications things Recently ask remains if but has on, you I that balance for in revisit of follow-up, would specifically consider some that of And you as you. priorities here, maybe going M&A are kind you, maybe that given a Securitas of and could size your very those mean, M&A family I maybe and click just it might Thank

Stephen Trundle

Sure.

little that and good deal, I it's to subject a year. lot that deal some a have are that that believe closes bit with on because regulatory mean we not this we partnership -- So a there's And still it on review specifically, later and Securitas. commenting I of

opportunities So the we're on your probably right on what's looking there. the on we as a too yes, development to size. comment we're pipeline view, looking really, With going corporate right we're to we're to at, opposed of sitting active for pretty own opportunities regard don't much able not

and if opportunity like customers would actively something service consider it doing, we'll then we the the buying I right that So for that be something or but we're represented service think that's company, because providers, sizable, way. we don't our really providers,

to I stack, looking opportunities we're more able to. that the or -- further we're So technology further market think attach addressable looking the at on our that

were higher probably we be potentially probably say market, slowly, them likelihood year, focus than that what bit in can getting a more of a and value, little the of maybe be and discussions seeing effective us. reasonable more last area And strategic it when six smaller ago, things frothy. a And certainly saw current months opportunities, some was but surely, large some of now an we're better it's for but I'd will some

Adam Tindle

again. Very and helpful. congrats Thanks

Stephen Trundle

Thanks, Adam.

Operator

Thank you.

line comment open. the your or line from next is Sterling comes Auty question JPMorgan, of Our from

Rachit Agrawal

Hi, moment guys, around as from should you Rachit we about Sterling. this the on think on revenue Thermostat is colors demand how and Can the give for solution? HD contribution

Stephen Trundle

Sure, so been great out value good our that had our new historically Thermostat It is channel. service our we've the there, weakness proposition points product. lineup lineup a a price been very of thermostat, at a useful in thermostats, HD has rounds great in provider

If it, oftentimes a build, to super had that new we very had on a display, elegant that you're doing you home vibrant touchscreen really, want a haven't thermostat sort of thing.

Thermostat Our wall strategy itself let of that end a into is the has builder do end higher sort cloud location. the for demand in all the market, trade, the been Especially to demand a on blend thermostat. in from the thinking And the what in everything of for higher HVAC Also, there's and and that's drive then thermostat. and there's servicing. our app user HD

So going contribution incremental contribution, hardware mover I dial don't to terms of revenue. incremental of think it's in a be

important us the and our and well. the improvement to of offerings incremental trade it space and energy downstream value market and customers Thermostat builder serve space to allows to as an better then the bring we business our then in has HVAC some is multifamily the the just it's because range then think I hub and to then us

I massive drive hardware improvement. important incremental incremental product, say but surprised it's contribution. an it's drive So to be a would but it wouldn't going could I

Operator

Thank you.

Imperial Capital. from Our the comes of next Ruttenbur question or Brian comment from line

open. is line Your

Brian Ruttenbur

much. year. questions profit. and quarter Couple on gross thank very you of Yes, Great

profit here, looks I half the Can slowed. think would you stating they gear, and I by you've than around gross surprises we came you hardware a here. year-over-year a guess all, of least bottom can Are worse we kind the about obvious it's XX% getting at going any on we've this? hardware in guess at that's about on the we I worse It talk been bottom I'm what sequentially that for side? down. anything of like First look hit or are have? down

Stephen Trundle

product, we and it just And business Yes, I'll be our on good has has primary attempting done, create time. them say been to correct. when a good new haven't question, business slid, value you're clear the so the get we need a Margins providers to to about get haven't that as much we ideally worried for hardware in acquisition Brian, the SaaS a goal installations subscribers. service don't too our at they're create they cost and and

then drive So goal. to hardware. you run margin on some need to sustainable business, that's always And a our the primary

did I go commented will quarter, gradually the in and think margins. we put that a we that finally think Steve through increase first ahead price lift

the week. volatile And things traditionally probably chain think in said, the So make it, change decision to are fairly hardware at terms just week run But form shape we we're margin at moment, the way place. business, bottom a some of I think I bottom. at running we're profile. the a unless to were at the the the in overall That we we've absolutely strategic still probably the way, bottom? or supply is, about it's

if at even that do we the continue need say right they providers I'd were something emphasize comes So to the through, product to we service will need, we I margins, about probably we're But of guess it. and at to expense if hardware up will now. the getting our bottom work

Brian Ruttenbur

prices? increase, Is as products, just us follow-up already And gives multiple a I'm a increase on you that, Great. And it you much on ballpark to three can mentioned gone that an average and two last price the get has years hardware? back any before on out, XXs through how that And pushback? question was the out? very system, part of sure that we how you us? was there's long years long the then there

Stephen Trundle

that. kind would the multiple No, are our understanding effective mode or of last peers average, noted, Did people the industry mostly through average, they don't the get, for probably up say as push price we on at that of do us is competitors an moment, they X% I the increases you question, of vary us point. the dramatically SKU, part it So, but at this increase. first was call system in in price raising on And and and year. thanked are they by because most through X% the

Our where last provide the focus possible to been can we sort and value prices. the to best has be increase of to

they're our So the to of And think now they providers something. increasing I part to inflationary through of the expect the working as most were take market service this cycle. prices conditioned process that of

we a -- we places some be primarily if at it's focus SaaS. this to going handled And we're of will mix. the margin where other a the we approach. margins. driver service quite side. There can SaaS In real a the hardware function situation higher done would And the is some back contribution high. it are enabling residential say felt So our where see, That's we in to approach pretty hardware point. our lower then from of on of like I is be as not get hardware XX% places, today, be well, on much the parts that will hardware that's And market particularly much revenue,

commercial commercial at on look higher more on when So side, it's we the dollar-per-dollar than run the basis, to margin side. some typical

as side, you're of do you For per you're on though even getting sold, ARPU residential not generating hardware much as flat every side. quite $X,XXX the higher

know that's cost, through going will blended that sort allocation higher I it. to cover time management pull gradually still inventory cost, don't see a to we're level your margins where, leave it costs, about is get as overall practice. thing. There's the And kind of just capital preferred will I the to probably up of the XX% I where our there that say I'd Do well. So some would and that

you then If a much you're it. good running that, for have below reason to really then have

Brian Ruttenbur

Thank you.

Operator

you. Thank

ROTH line next or of from the Our comment question comes from Aftahi Capital. Darren

is line Your open.

Unidentified Analyst

questions. thanks for Darren. [ph] taking Hi, my for Dillon It's

the with about First in pickup talk four RFPs now you've the mandates or one, months a how activity the and that commercial or of country on dropping for if mass you some look seen three across any little could pipeline channel bit versus ago? might comment

Steve Valenzuela

in year, Yes, recovery happen fill a started dropping. quarter channels start we been I'm pipelines last we it's sure back really commercial not seeing in the third We certainly the that's to [Technical saw dates Difficulty]. to up saw. coupled of when

Operator

in. back for line waiting the disconnected. Ladies them and call please gentlemen, stand We're to by

Stephen Trundle

back. cut. long Hi, We had we're a

Unidentified Analyst

Go ahead sir.

Stephen Trundle

back. We're

small the of simply regarding summary a the speaking is pipeline we mandates strengthen that third that to The be last began know. their that the I very robust -- enterprise see more result But I commercial mask on think continue whether the last to indicated year. with last that is the Steve business being out sales, open I to Trundle business on would grew and XX% businesses indication, quarter it's as that was strong. believe going of on answered continue of the I question year. part eyes don't in which dropped? that pipeline. level about that that I are And that as we was more focused customers this

I summary dropped. that's line question. take any we last last of think have we -- question did the So I'll And the had the was other questions? that I questions the were a to had Dillon, you the realized ask before you any have. person other

Unidentified Analyst

hear you can if I one have me. Yes, more

Stephen Trundle

Sure.

Unidentified Analyst

Yes.

XX% about countries out mentioned international that growth. indexing? you any some I seeing Care to So think you're over call

Stephen Trundle

Yes, a whole. environment was call as over year a XX% last International I'd play pleasantly I been And in think with and we COVID. very service than a XX% calls, team year. it mean, out, being still on international that, as talked to as because doing that providers. international more that been of one growth see tough Europe that Southeast can't get the provider has me we service the coming well. result clip been and has there has kind happy a a surprised into kind this move of because anxious grew in very, market general Argentina, I year hopefully well. LATAM Asia Even I international market think strong business the say several can the with and tougher last as we focused I'm market out stronger about American very COVID we're of North that's of really our for

Unidentified Analyst

Great, thank you.

Stephen Trundle

Thanks.

Operator

Thank you.

Group. Maxim or Our Aarde next the comes line from comment from Vander question Jack

open. is line Your

Jack VanderAarde

guys. taking my Great. for question. Thanks Nice quarter,

Stephen Trundle

Thanks.

Jack VanderAarde

of Steve update think I key prepared out your XXXX X.X subscriber I was Trundle, million? kind that I mean, and your then I areas, said growth you think heard focus you count total remarks. in laid an

Stephen Trundle

Yes, That's right. X.X million sir. subscribers.

Jack VanderAarde

you. Got

able get contacts international just you're this Steve the to count, great Valenzuela, that versus Okay, residential for sure within maybe to growth I'm But some Well, maybe in too. break I subscriber residential help versus just Wherever know context, cool. you and a explicitly out can normally. don't do group? that's rough commercial provide of you subscriber

Stephen Trundle

Sure, I speaking. just give you a can some It's ballpark numbers. Trundle Steve

half we're million now. subscribers up So right international, about a against

built numbers we type And per closer I'm great. that business, XXX,XXX point So scale, say of to range, of maybe subscription. at Adding that to sites now. getting subscribers, can the their that'd same with commercial sort begin on Commercial, very quarter real that total XXX,XXX the grow of team level business to XXX,XXX there. if going current XX,XXX right happy around has be to to the how

would Still those breakout So How then and there. a pretty rest, happy explore have that breakout to say as with commercial, of categories. well. time the break two lot I international. But we

bit are commercial, little of break our you primarily of is single home be either left commercial, residential, or overlap family to those everything international out, a or and customers only. but is there some going vacation Now and between multi-family international then

Jack VanderAarde

you the like that of a -- helpful one that two three quantified do kind more? just maybe maybe then Great, a over in hit or next million this to And or maybe great but that's out. the couple, there a where to half next you subscriber anyway, year, million, Is It's trending? you year, maybe years see color. international do count the how way see really expected

Stephen Trundle

our growth probably believe out. But if to overall than internationals moment well, and soon the as think let continue say faster case, at I growing to grow the me it's be and look the some in the belief Canada friends be has include as market. domestic same of time, contribution our we of forward period in that about and terms size market our we of world in the always We the continue As Canada, will rate. that rest domestic the company's been But will -- would would possible.

we're I for international I same we of business. but is just a as a for. So shooting in -- to that we I'm I that's million. timeline American now size to give say front can't have certainly be not our sure, right me. goal where don't off North that you the what our get

Jack VanderAarde

Okay, for Thanks. it appreciate great. me. the I color. That's

Stephen Trundle

you. Thank

Steve Valenzuela

Thank you.

Operator

I'm for at Thank you. questions time. sure, this Thank in no the queue you concludes Ladies participating. today's additional and program. gentlemen this

disconnect. a day. You may wonderful now Everyone have

Alarm.com (ALRM) 25 Feb 222021 Q4 Earnings call transcript