Alarm.com Holdings, Inc. (NASDAQ:ALRM) Q2 2024 Earnings Conference Call August 8, 2024 4:30 PM ET

Company Participants

Matthew Zartman - VP of Strategic Communications & IR
Stephen Trundle - CEO
Steve Valenzuela - CFO

Conference Call Participants

Adam Tindle - Raymond James
Saket Kalia - Barclays
Darren Aftahi - ROTH MKM
Stephen Sheldon - William Blair

Operator

Good day, and thank you for standing by. Welcome to the Alarm.com Second Quarter 2024 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] Please be advised today's conference is being recorded.

I would now like to hand the conference over to the speaker today, Matthew Zartman, Vice President, Strategic Communications, Investor Relations. Please go ahead.

Matthew Zartman

Thank you Kevin. Good afternoon everyone and welcome to Alarm.com's Second Quarter 2024 Earnings Conference Call. Please note that this call is being recorded.

Joining us today are Steve Trundle, our CEO; and Steve Valenzuela, our CFO. During today's call, we will be making forward-looking statements, which are predictions, projections, estimates and other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations.

We refer you to the risk factors discussed in our quarterly report on Form 10-Q and our Form 8-K which will be filed shortly with the SEC, along with the associated press release. The call is subject to these risk factors, and we encourage you to review them. Alarm.com assumes no obligation to update forward-looking statements or other information which speak as of their respective dates.

In addition several non-GAAP financial measures will be discussed on the call. A reconciliation of the GAAP to the non-GAAP measures can be found in today's press release on our Investor Relations website. I will now turn the call over to Steve Trundle. Steve?

Stephen Trundle

Thank you, Matt. Good afternoon, and welcome to everyone. We’re pleased to report financial results for the second quarter that exceeded our expectations. SaaS and license revenue in the second quarter grew to $155.9 million and adjusted EBITDA was $42.8 million. During the quarter, Alarm.com and our service provider partners continue to drive organic growth in the commercial, international and Energy Hub businesses.

We also increased our balance sheet flexibility with a $500 million convertible notes offering. I want to thank our service provider partners and our employees for their contributions to our results. On today's call, I will cover recent developments in our residential and commercial businesses. In the second quarter, we continued to see that churn in the residential account base remained below the historical averages. This is consistent with our expectations and in-line with our experience in prior periods of economic softness.