Alarm.Com Holdings, Inc. (NASDAQ:ALRM) Q3 2018 Earnings Conference Call Transcript
Nov 07, 2018 • 04:30 pm ET
Good day, ladies and gentlemen. And welcome to the Alarm.com Q3 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session, and instructions will follow at that time. (Operator Instructions) As a reminder, today's conference is being recorded.
I would now like to introduce your host for today's conference call, Mr. David Trone. You may begin.
Thank you. Good afternoon, everyone. And welcome to Alarm.com's third quarter 2018 earnings conference call. As a reminder, this call is being recorded. Joining us today from Alarm.com are Steve Trundle, President and Chief Executive Officer; and Steve Valenzuela, CFO.
(Forward-Looking Cautionary Statements)
This conference call is being webcast and is also available on our Investor Relations website. The webcast of this call will be archived and a telephone replay will be available on our website.
So with these formalities out of the way, I'd now like to turn the call over to Steve Trundle. You may begin.
Thanks, David, and welcome to everyone joining our call today. We are pleased to report another solid quarter that exceeded our expectations. SaaS and license revenue in the third quarter was $74.3 million, up 20% from $61.9 million in Q3 of 2017. Our non-GAAP adjusted EBITDA in the third quarter was $25.8 million, up 32.6% over last year. During the quarter, we saw both higher-than-expected account origination and a slightly expanded breadth of services being sold and installed. These strengths drove our better-than-expected results. I want to thank our service providers, as well as the Alarm.com team for their contributions during the quarter.
Beyond our financial performance, I also want to highlight some of the recent progress we have made in our product portfolio. We achieved a major milestone with our release of video analytics, which was formally announced just last week. I want to give you an overview of these new capabilities and also update you on the broader development program we have established for ongoing innovation in the fields of computer vision and artificial intelligence.
Our video analytics service is built on object tracking and object classification technology. Object tracking analyzes each frame of video to determine an object's direction of movement and duration of activity. The object classifier identifies people, vehicles and animals. Combined with virtual zones and tripwires, we can now alert subscribers about highly specific events around their property.
For example, instead of sending an alert about routine movement or changes in the scene, we can now watch for people lingering near a front door for a specific duration. We can also watch for a pet getting on to a sofa or for kids leaving the backyard.
For commercial applications, a business manager can confirm that a delivery truck arrived at the loading dock without being notified each time a customer exits the building. These insights can in turn be used to trigger devices to respond. So if we spot a person entering the backyard at night, we can turn on