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Alarm.com (ALRM) To Report Earnings Tomorrow: Here Is What To Expect

StockStory - Wed Nov 8, 2023

ALRM Cover Image

Home security and automation software provider Alarm.com (NASDAQ:ALRM) will be reporting earnings tomorrow after market hours. Here's what you need to know.

Last quarter Alarm.com reported revenues of $223.9 million, up 5.2% year on year, beating analyst revenue expectations by 4.5%. It was a solid quarter for the company, with a decent beat of analysts' revenue estimates and full-year revenue guidance topping analysts' expectations.

Is Alarm.com buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Alarm.com's revenue to grow 3.4% year on year to $223.4 million, slowing down from the 12.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.40 per share.

Alarm.com Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 4.8%.

Looking at Alarm.com's peers in the software as a service segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Bentley delivered top-line growth of 14.3% year on year, beating analyst estimates by 2.3% and Manhattan Associates reported revenues up 20.4% year on year, exceeding estimates by 5.4%. Manhattan Associates was up 4.1%.

Read our full analysis of Bentley's results here and Manhattan Associates's results here.

The technology sell-off has been putting pressure on stocks and while some of the software as a service stocks have fared somewhat better, they have not been spared, with share price declining 3% over the last month. Alarm.com is down 12.8% during the same time, and is heading into the earnings with analyst price target of $66.0, compared to share price of $52.4.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.