Earnings call transcript Q1 2023

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Operator

Good day and thank you for standing by. Welcome to the Alarm.com First Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Matt Zartman. Please go ahead.

Matt Zartman

welcome first and conference XXXX everyone call. afternoon, to quarter Alarm.com’s earnings Good this recorded. is note call Please that being

Joining us President today CEO; Business Steve from Corporate Alarm.com are our and and Steve CFO; Jeff Bedell, Strategy. of Ventures Valenzuela, our Trundle, our

report to risks forward-looking cause expectations we estimates materially predictions, refer are and differ statements future assumptions making other actual on information, are dates. assumes statements call no to to which events. are to that our During forward-looking today’s these risk These with be current be call and the based Alarm.com quarterly will our statements, Form may expectations. SEC, we call, any statements to review about or will you risk results uncertainties factors along them. projections, that as or factors, in on their discussed is which from subject and subject speaks current associated XX-Q We encourage This our the X-K, with you obligation shortly release. this respective Form filed update of after the which to and press

press Relations In can of A found on non-GAAP the and be non-GAAP measures measures website. Investor release today’s in reconciliation this GAAP in our financial addition, used several call. be will

now the Trundle. I Steve will turn call to over

You may begin.

Steve Trundle

Thank and to welcome Good you, afternoon Matt. everyone.

rate revenue growth We are non-GAAP first the in quarter excluding license XX.X% our pleased in Vivint. was last and a year, to report million, SaaS first exceeded quarter over results expectations. $XXX.X resulting the that of

business a our business. call areas excited today. Ventures provide business, President Jeff things to will that Platforms review in our the Corporate in of President include of Jeff Strategy, to we of Business the looking quarter and Our Alarm.com adjusted quarterly can of future the on or million. deeper so touch some of Dan and Kerzner, in a updates joining be was I $XX.X the I core am Bedell, couple to I then going first the have EBITDA the am

at presence. our a I’ll security profile increasingly the start with Detection reflected market at things levels. I their met a during Shooter each trade pre-pandemic ISC significant largest off dedicated industry. returned that and presence for physical Most expanding this a commercial few from show OpenEye Alarm.com partners Alarm.com’s year Systems the show presence Overall, diversified of The having service attendance business use our ISC Alarm.com, with West, services. recent takeaways was to West. the our of the commercial provider were theme

our are our become Recently verticals platform where targeting specific have partners released better helped at also as they products developing expertise.

the of range highlighted camera third-party things One we support. our expanded was of

solution, to can XX% video our of to integrated a video Our service cost will XXXX. of more have support existing settings flexible installed third-party want installed without benefits cameras. in support video cameras solution replacing midsized be video solution able businesses that that With and XX% since the large commercial providers the been our of

continues we our solution, As expanded to it gain control and have access enhanced momentum.

At access enables aggregated. directly LTE control reduces XG Bypassing Alarm.com connect year. quarter, last over where with Connector. access first work to Cell product we data affordable system customer’s an a to control door is ISC, and called first XX% Connector and complexity the the increased door quarter networks installation control platform, access installations our the During leverages that a introduced cellular controller system. of new network Cell is local the effective

easier an and third-party connect area to rigorous these customers For example, devices installation makes corporate for processes and Alarm.com larger, more the sales customers Connector local for their sophisticated approval network. and Cell acquire to typically to significantly accounts process commercial it have system. streamlines

with we’ve service residential our also builders. the environment, demand. steady our macro to partnerships report the Despite expand continue providers market, continued In to

homebuilder creation the year. quarter increased compared RMR as during from New program last our first to XX%

the to services to opportunity with our fully We also in Analytics an Alarm.com system we include still see monitored providers A the long-term smart system of about to security are active, do recent address market. estimated capabilities professionally traditional capabilities report like limited those residential home households that that expand service XX% any continue by Strategy not that offer.

so to steadily can as continues to our the strong build home market base Our on is providers’ goal and their smart they account maintain service expand competitive systems. shifting position

to did overall. first opportunities us the We on struck the will investments the which increased during balance for like allow feel undermining driving right the R&D and EBITDA operations, and our that objectives quarter, continued focus, perform our this efficiency corporate focus without to we future Shifting year. to we against drive have

continue will company to to continue also invest build We through to profitability. innovation discipline while for maintaining in the future the

Overall, I with quarter results. pleased am our first

our opportunities reflects diverse and momentum Our investors team and our hard performance their provider our we continued in service thank our trust the continuing for that and our I significant want and for their partners addressing. business. work to are

I Now, he hand of more to oversees. on areas a provide two detail to Jeff? little over things will the Jeff

Jeff Bedell

major everyone critical video Thanks, I update the video It’s these at commercial many commercial OpenEye cloud-based devices deployed with using analog robust cloud their system with form getting systems, edge, the shift AI-powered technology analog today, is delivering solution know businesses start video the to moving on-premises Steve. for legacy and Video you. have of great older forward A digital surveillance on solutions that devices. to many coupled underway, for to Today, a analytics. an is foundation market. systems businesses. from managed but surveillance to and look I’ll speak with for

as of business shift platform We this technology to OpenEye’s and expansion unfolds. to the in capture invest continue share

AI and our of OpenEye analytics platforms, platform. models video recent innovative accelerate to the Our across delivering Vintra program acquisition of with beginning expands development will our capabilities the

to quarter, OpenEye to users based OpenEye search and married through This be video open video its find platform new external alerts enabled allows forensic architecture. capabilities. devices to content a launched few third-party on from generate data data inputs. OpenEye allows This to ecosystem data solutions enable The

Sales new overrides, suppliers the video as additional leading of first Connect, refunds offering and Sales point-of-sale point-of-sale data significantly real-time voids, is solution of such module as the the transaction from called for integrates retail, systems. Connect exceptions The verticals. alerts is OpenEye’s and triggers point-of-sales Connect OpenEye’s corresponding Sales an in and position serve strengthens and SaaS transaction. sold restaurant retrieves grocery, which quick

vapes, and vape valuable heavily with providing This more have schools. as by generating humidity video third-party environmental sensors, launched sound detects temperature, with integration smoke cigarettes requested to monitor Next, that air environmental from quality, associate and been and and OpenEye events, capabilities anomalies. detect an OpenEye integration enables alerts secondary an example which

to of these that machine Shifting medium-sized a grid utilities energy other that electrical grid on to to edge a load grid, devices a artificial recent America’s the than models utilities is SaaS demand million announced plant. flexibility controlling a EnergyHub, devices which management. gigawatts by to devices. for Collectively, leveraging nuclear is proprietary Resource platform the chargers, EnergyHub’s electric allows EVs, I balance power first grid learning demand milestone. under connected allow Energy DERMS X Recall utilities smart EnergyHub the Distributed Management want as and greater solution recently to or North manage known provide X.XX side thermostats, platform that exceed provides of management, fine-tune supply. shape generation DERMS. load intelligence System EnergyHub to is touch and and The capacity EnergyHub with it on to EV

are actively energy intermittent country weather sources flexibility of is and are EVs, strategies Extreme making DERMS grid complex. the EnergyHub’s and load the trends. challenging developing directly the rising heatwaves, many and nature Utilities like in events macro technology. renewable adoption investing stability increasingly these of platform addressing around

and businesses. Valenzuela expansion Steve? continued of components overall They strategy. are have progress addressable with will now our we up, our important and our the EnergyHub’s are cover growth sum of Steve X OpenEye To made markets financials. key to

Steve Valenzuela

I’ll begin Jeff. results with for review opening XXXX the financial of Thanks, and call our guidance questions. our first provide quarter before updated then a

X.X% SaaS million last license revenue of year. quarter $XXX.X the same and First quarter grew from

grew of SaaS $X.X quarter, as revenue, the Excluding ago for license includes million quarter. and XX.X% SaaS license revenue revenue year-over-year expected approximately license the Vivint on first in quarter non-GAAP and down Connect year software comparable $X.X a from revenue license first basis. million XXXX

from revenue our long-term of license $XX.X and in upgrade cycle levels. high $XX.X to of of module camera in visibility down SaaS sales revenue middle fewer quarter, revenue the was Hardware down other fewer providers as remains a rate and XX% due renewal inventory mainly and work in sales XG with million, Our range. service the the million from the cellular their in quarter first the QX end XXXX, first

QX to supply SaaS gross in commercial was from quarter historical mix up the offerings. the grew X.X% license product the $XXX.X for with mainly favorable XXXX, Total hardware quarter. XX.X% mix the in year with of was trends mainly and consistent revenue first and up margins and from due was XX.X%, quarter, XXXX, first to more chain for quarter, for due million for gross to dynamics Total XX.X% XX% XX.X% gross XX.X% year-over-year. margin down for the shift first ago revenue. Hardware and margin quarter in improving margin from a QX SaaS improvement slightly the first

compared related due acquired the employees year the increased compared operating $XX.X increase first quarter the for teams. employees quarter XXXX. to million in expenses X,XXX headcount XXXX, ended of reflecting We and up in expenses, X,XXX an for were of cost Total compensation from quarter. R&D, expenses to the in the XXX and mainly million to X,XXX with QX quarter in first $XX.X employees Turning R&D employees headcount the ago in to first to quarter first

revenue expenses with in compared quarter more XX.X% restrictions. employees easing and increased $XX.X COVID mainly same of revenue in quarter the headcount million last or first million and were traveling $XX.X Sales year, of the marketing to due or XX.X% of to the total

$XXX,XXX. litigation adjusted costs, year litigation first acquisition-related G&A of non-GAAP measures to $XX.X $XX and were acquisition in and quarter compared of expense fees. G&A our are million in the includes in performance. non-ordinary quarter part accounting our the Our first ago personnel expenses costs, costs course the our expenses mainly acquisition quarter, increased due expense $XXX,XXX measurement and to and of million excluded course of are from Non-ordinary financial

to million for $X.XX the per QX QX share In per the net XXXX. EBITDA was the Non-GAAP GAAP was adjusted income first quarter XXXX. Non-GAAP income XXXX. $XX.X first in adjusted $X.X or to compared compared million $X.XX for in to of million in of million the first $XX.X was first net $XX net quarter, quarter or quarter $XX.X million $XX.X compared diluted income million share GAAP

estimated balance federal from XX, and cash at we cash our Turning of bonus million XXXX, acquisition down $XXX.X quarter for December and tax, ended to equivalents, mainly due with million sheet, to payments. the costs, payments first annual employee $XXX.X

Turning we outlook, of the for and of $XXX.X quarter to financial license $XXX.X our million second revenue XXXX, expect million. to SaaS

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

$XXX.X $XXX guidance total $XXX to to million. of We guidance to $XXX.X of revenue our $XXX includes $XXX.X We million $XXX million XXXX for that estimate million and be between which hardware million $XXX.X revenue adjusted will XXXX increased million million million, are EBITDA $XXX other from to projecting $XXX to of prior million prior our estimated compared million. for of to

adjusted quarter XX% approximately guide. represent to of of our annual EBITDA XX% expect the for XXXX second to We

share. $XX.X projected to up million rate per tax our an or diluted to is Non-GAAP $XX.X is prior project $XX.X EPS weighted based be XXXX at XX.X to average guidance million currently or million XX% $X.XX of of our net for current $X.XX shares per share, on $X.XX diluted tax to million million We XXXX $XX.X to rules. remain to for from $X.XX non-GAAP outstanding. estimate diluted income under

XXXX full $XX $XX compensation to million stock-based of We expense year expect million.

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

Operator

America. Thank Our Michael you. of with from Instructions] question comes Funk [Operator first Bank

open. is line Your

Matt Bullock

is Mike us your a going future hear detail that to vector Funk. bit how could was it terms give taking It we yes. color AI product additions. Hi, on for great monetization enhancement the questions. on Matt any about logo then Thanks Bullock as This about more some products. the should for a detail hoping little a roadmap. intelligence was I all of you’re in And not as or whether on think additional leverage primarily new of to artificial you for or

Steve Trundle

our actually expansion during we that the Steve where evidence the team headcount. video recently on we our is it’s Well, AI commitment Vintra up just this think picked acquisition XX% of Michael, as reasons to of basically in that about speaking. an analytics did one announced the was quarter I of terms the, of arena,

any also of from user overall terms interfaces sort everything universally in not the would not way. the they of provide from an So at looking both roadmap, standpoint, but looking doing, of the are company I correct sort the they think that things perspective be of to at operating that’s customer,

to essentially at terms in looking also long got analytics on of the using side more the consumer, to and so the say. right we though deliver pretty we’ve intelligence customer, we processes, We’re crosshairs everything AI would we continue both history would internally more to it’s I the course, video experience, can the and of UIs customer. sort in our way the terms a valuable insight, do, but present that the expand insight expect in the And we the we of to of to Obviously, to that. improve more of deliver the

Matt Bullock

competitive That’s following then helpful. Thanks. activity some material M&A just of one in subtle of the you environment noticed follow-up. changes competitors? any Have quick or changes the And

Steve Trundle

is there heard in with is the significant really of in energy usual you’re of and more as a competes that sort dealers. what many acquired environment. been noticed sort to yet though imagining recent of so probably overall I company far. any competitive haven’t our changes dynamic an provider haven’t business competitive where that of or utility it I’m any the the change referring is service a acquisitions I one

Matt Bullock

Thanks much. will I it Excellent. very pass on.

Steve Trundle

Yes.

Operator

Thank you.

Kalia comes from from Saket question next Our Barclays.

Your open. line is

Saket Kalia

maybe on changing and them are always appreciate customer Thanks a of you, Okay. Trundle, there. taking things good and for Hey, Great. have afternoon, ADP for guys. you questions my kind updated just thinking Steve just here. how as that

control little is, kind we rolling talk if just us the subscribers to about you roll And you’re starting of that just so for maybe that’s and about how how the you thinking can give into of revised all? commanding on on at question any a bit sort thinking Anything model, in? ADT can

Steve Trundle

with Yes, collaborate just level, we continue Saket. question. to Good ADT macro at multiple first, a Sure. on And fronts.

but the team based plans and base command SMB, maybe their increased in like with different a be the home. a most QX, public are much they the accordingly. at was called we’d there is think fit well. what timeframe, smart new sort I’d Jim more our see with being percentage updated higher there in we they solution something great think publicly reports a that I of on commented I’m areas of We there. But the the of we’ve say there they to to based in will some QX models end course, work a And but watch, exactly commercial, report begin At model, QX. I happens record are we We very have going I custom is end relationship by of There are relatively that that as attrition of area. their and pleased internal levels have we’re of the that a anticipated their recent are be broad. year since maybe now generally are to getting can, single with of really are markets Things course what for ADT There for of of as of presented partnership platform is on think use had they expect, lots about little higher lots that And the their pretty we and ADT couple as and QX that every looking areas, I probably control. people want of to – related the an we on towards end is And remind then. to a we’re there conservative what presenting the is the no platform. that their Google. had something and transition

Saket Kalia

Great just super operational maybe That’s hear Valenzuela, company. right, helpful. rigor, you. of the the it. for to Steve Got

savings. of talk just I about started some how this think should to if you those was cost you or made just was line? the folks about reinvested being of some a I just annually, there falling expect cost do much the savings save quarter, reference wondering you bottom to that could and we whether sort think to maybe

Steve Valenzuela

our And on continual continuing into of structure, kind employees. into little rationalization invest, year I at you minor The savings reduction their really their to at adjustments. a small point. reflected good continuing we’re We’ve make headcount Saket, really. think Yes, it, translate did and guidance. fairly to about hire cost and cost every mean most we actually was from look our that companies side, to going if that It we’re so hiring. is look

area, continue for to the provided the year. hire, going the We’re the in for to and especially quarter, that’s into we really guidance factored so R&D

Saket Kalia

guys. Thanks so helpful, much. Very

Steve Valenzuela

Thank you.

Operator

question next Our William Matthew Blair. with comes from Pfau

Your line is open.

Matthew Pfau

Hey, great. questions. taking Thanks for my

to that wanted that the higher quarter. what ask growth you why then us I’m product But if XX% some year-over-year that seeing, commentary could the door than time. you’ve you’ve number? called for some first control around you context access and around if it First rate And just been guessing and installations you that’s in give of so, out. been on clearly that’s maybe improving

helping If Thanks. you’re drive to there, seeing what’s an that? inflection

Steve Trundle

grow surprised because Good is at The there. it access we on by yet largest velocity. the by Yes. were control to guess but called not alarm.com business business out we’re I pleasantly, installation question. uptick I continuing stretch, the

sort in some the been chain the and dealer just X we quarter. we kind category supply had last to out, in in has material saw there. thin issues that good. It’s those adoption think in had years, uptick of I problems began first a saw general, of the We what happened

In and about size now XXX,XXX we’re to doors right of That grow, control at but terms of for platform. moment. feel between XX,XXX just access you the that talking the to a give overall the will obviously scale, on continue business

talked Looking would that control service enabling is and in we’re some wind forward, there. that more I access puts installed solution easily there be [XX:XX]CellConnect. about providers, further we What hope to by the doing sales the also

Matthew Pfau

piece at were OpenEye. specific broadly, more you’ve some target Is gain important Is help market? of partners Great. commercial And the opportunity in commercial? that help you’ve an the ISC that ones those on strategy adoption services verticals, of mentioned released to traction partly use out maybe forward the new been some missing that you West in then the something you you to going more of with that functionality and called vertical-specific as that drive feel expanding

Steve Trundle

has but think you I And I about specifically when little like so. get about it solution in feel we Jeff your the ready provider OpenEye, integrations vertical to MDU spoke that service in of to it, key the be process. a can the business. differentiated install more sort that the seen a We’ve a bit of talked with closer set sales of sort

For example, PointCentral.

day have and that called UTour, an we integration do self-guided tours some We where create pull-through X. there with can entity an helps

strides give them make capabilities some for of the for relevant retail can was we that to the be more AI, really add the On they analytic it’s market to talk the they the the to. OpenEye that quarter leverage we’re A, cases that a of move a solutions a made story to you’re some solution be segment in not better more fit sort vertical. certain that restaurant just an – integrations quick-serve business. really retail, and There use problem integrations side, developing the it if given tailor during to a and for great I can question specific we about forward, software think earlier as of and

just relevant, it is I the it You want so are offering make more that inclined. to And vertically a have really solutions focus. will B, think

Matthew Pfau

Great. Thank you.

Steve Trundle

Thanks.

Operator

comes question Mark our you. James. Thank from One with next Cash moment, Raymond

is line Your open.

Mark Cash

areas with commercial, is and software the this new international starting of the in first, macro And allocating so for plans Jeff that that key would have growth questions. on Mark you had the four our control along? expand question, this, Maybe T., open for considering support to say first weigh on integrated coming is internationally and This that as venture? the but the and Steve video, how for growth really opportunities, Adam. opportunity panels at you if you this And Thanks to of taking part you are security wants ones resources year, the how up across point?

Steve Trundle

question. Good Yes.

that I but one You to tends probably take said, Steve. is too will speak There it. Steve much,

looking we compete growth In do what of domain, different SaaS sticky are and terms at allocation to of the areas, allocating accordingly. service more modeling I potential looking resources we the at in with basically either long-term remain to across that the mean or resources our growth need each to out, providers

In to of terms fast this was our earlier investment reallocate of of move some of in as some international, video, other to that a especially segment that businesses, then commercial, of the areas year, efficiency shaping investment to generally there EnergyHub. say we some to and growing and making we are would aren’t to the the taper I did some

areas. are we growth So, these favoring

of in getting daylight negative so domains, to meaningful time plus on for so period far. contribution are we we growth We are with or as willing rates are that’s XX% a can seeing and long see these cash what live we

an already in acquisition installed the support whatever business we international of about the last the of been with for our desire universal the allocations. lot Europe first XXX,XXX, they therefore, to the older solution, called a a a piece dealers. I time overall regard to of that quarter to of spot growth. in sort are a base company on will, they company’s customers and come complete With if that for equipment communicators would have that made work them of love of to you to but of specifically international a they as based been by So, continue equipment. Alarm.com. some wider to number contribute are building did the legacy warrant scale, in excessive, resource EBS panels the has array come XXX,XXX, we they working quarter there, expect We may And excessive in, always a that That’s control soft comments

So, integrating into are so communicator and the where that prohibitive. that those universal technology would that some what replace we platform we their get really taking doing all customers is back can cost to legacy the to hardware be there of

that’s think and we before would we in I to terms we timeframe are the of wood controls third was purpose. able for there all sort are probably not, and quarter actually finished – market QX, are we that, is say a into So, we of lot the That just And chop, that finished in now like to that deal. supporting are the to the of we to. go

Mark Cash

Okay. And as out ADT pointed not a last seeing Great. follow-up, week customers impacts from paying.

pullbacks say comment And So, makeup you could just today that ‘XX on see macro resiliency through you in first, like business the partners? versus I that business? you the the are of in spinning your guess the secondly, seeing now previous and

Steve Trundle

Sure.

from are question the seeing an of part first impact The not paying. we is, customers

our Have at level. our and robust, any I service service think obviously providers uptick the seen at is not of bad – Most we we So, end are kind debt. consumer. pretty meaningful provider, in a least not don’t have of the customer

Steve Valenzuela

meaningful Not on level. a

Steve Trundle

Yes.

only that publicly a company the terms anything routine reports is are In I on really of we anecdotally? ADT basis. mean hearing

second With hearing to our serve, what but material of can to other the been whatever. to trying service obviously remember, providers not you am been was… what so a would customers to are where from that I they And you I or have say, be geographically issue. we regard it type So, everyone differently, goes that’s it market question, look

Mark Cash

business pullback makeup the Kind ‘XX the of the like happened. of an big today versus when

Steve Trundle

housing worried we of market will bad People wandering pretty unemployed. a tends to maybe focused security Yes, remind seemed They in their environment, in the they prices. things think protecting as more generally folks quite I neighborhood resilient. or XXXX. tend dire through macro question. bad seen a protecting get strangers their to good have just being as and become maybe I assets don’t be that home. The kind on and in about

didn’t we ‘XX a huge either. see in So, or ‘XX problem

are fewer would get fewer less accounts seeing created and were hard I get figure of that slight out stocks. the about the in headwind there attrition, terms bright just same of generally in a housing surprised. results I shortage you and at pleasantly you moves, – is may The we You get is to time. market same. housing we mean how a say now very that new

in builders universe. ‘XX. And on look, to our I a do little would the commented relatively ‘XX So, less less well at that. continue have moment, things I generally, say than compressed or

Mark Cash

Appreciate much it. Alright. Thanks very our questions. taking for

Steve Trundle

Thank you.

Operator

Thank you.

question next Darren it like Our looks from comes Aftahi with ROTH.

open. is line Your

Darren Aftahi

Hey guys. Thanks for taking my questions.

in West, to Steve, like the the about as relates growth commercial the international I guess, conference coming First your quarter? ISC business one, commercial you that positive, more I neutral what it are And rates don’t know of mentioned, out of and were on if business? you sort comments

Steve Valenzuela

to Valenzuela. range. and do give question. gave XX% I mid-XX% for really it the quarter, those Last at don’t quite are in The metrics. well. continue will Steve Darren, at doing the growth it’s growth commercial, international every we rates, about year-over-year, around We both both but well they typically quarter, still take first running

Steve Trundle

West, feel of ISC second do And about we how coming out question, Yes. commercial. the

we of their seems would sort small allocated say business. at and greenfield to brought There of there. control home, while, your stuff lot of bit be been we the is commercial X in wider have of of is of smart providers commercial those there portion have mobile a world. have a think the commercial entities the newer a a commercial, hit a we space. business more in to of been years, I years it where doing – world the wider or and to Those putting residential the definitely array of service in the and in mobile bit case enterprise – control a a now feeling little the now least hand sentiment I app, a X with your before lot the A for experience of really X years,

So, commercial customers. then executed customers, folks things there looking our the upgrading And show, be to in the had booth good market, be SMB show I pretty be or at good are more teams well traffic. enthusiastic to because upgrading I had thought am

providers I just getting were not am I say we on the and there. I overall service the So, with and feedback the the would on – sentiment commercial momentum from side was pleased that

Darren Aftahi

Thanks.

Steve Trundle

Sure.

Operator

Our next Group. question comes from from Jack Maxim Codera

open. Your line is

Jack Codera

is ARPUs Codera taking for quarter you calling on business, This of of was for color expectations wondering Lot I give how any have commercial my last commercial? follow-up. and Jack questions. in Vander you Thanks mentioned could a mix higher. guys residential one Aarde. Jack And of Hi. are side then term the lot between color revenue the great for if I longer

Steve Valenzuela

about total is The X% was It was faster Commercial about than ago. of growing quarter X.X% a SaaS. certainly year commercial this residential.

rate, given forward. really a growing certainly larger you faster the SaaS of at and haven’t We be revenue trend, percentage is to if a our projection. a will see longer continue term commercial larger going But

that broken really haven’t though. what would out be We

Jack Codera

a the Thank changes you. being evidence. attachments at share have the although Is macro given was But affected residential then could are you explanation you you on helpful. wondering effect given effects, anecdotal I I Okay. sense, seeing all? little there Understood. other different products regions guys jarring. think in dynamics That’s that the if macroeconomic by any or market And any any different makes or

Steve Trundle

being they more, basically Texas provider, visit are I regionally, be busy two definitely I can visit as as a of service Florida. are but Yes. go are mean examples, we are markets. where areas these probably when as and you I there – in those mean strength, there those

macro robust they see of continuing – to So, are sort good robust conditions.

We the seen have quarter Canada. strength also last in in

exactly but well. not has are We sure yet why, Canada performed

time their in choosing but devices of Some dramatic you declining each have as probably in we say than I thus probably or smaller have watching to either or residential impacts is purchase where account strong, not And would were footprint the I the level but the is seeing decline macro on on year haven’t biggest them seen slightly installation at might noticed. Where haven’t the whatnot markets a number biggest the you sort new expect, of that less of we thing a population – the any the really of we seen think slightly that’s installation. terms far. activations, have quite consumer seen they of we takeaway side put what that a we maybe ago. hardware are maybe

Jack Codera

Thank helpful color. you. That’s

Steve Trundle

Sure.

Operator

in does I call. no questions today’s conference Thank queue. participating. showing Instructions] you am [Operator for other conclude the This

You disconnect. now may

Steve Trundle

Thank you.

Alarm.com (ALRM) 10 May 232023 Q1 Earnings call transcript