AvePoint, Inc. (NASDAQ:ALRM) Q3 2024 Earnings Call November 7, 2024 4:30 PM ET

Company Participants

Matthew Zartman - Vice President, Investor Relations
Steve Trundle - Chief Executive Officer
Steve Valenzuela - Chief Financial Officer

Conference Call Participants

Adam Tindle - Raymond James
Mason Marion - Jefferies
Adam Hotchkiss - Goldman Sachs
Matt Filek - William Blair
Darren Aftahi - ROTH
Jack Vander Aarde - Maxim Group

Operator

Good day and thank you for standing by. Welcome to the Alarm.com Third Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Matthew Zartman, Vice President of Investor Relations. Please go ahead.

Matthew Zartman

Thanks, Kevin. Good afternoon, everyone and welcome to Alarm.com’s third quarter 2024 earnings conference call. Please note the 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 or 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 on 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 GAAP to non-GAAP measures can be found in today’s press release on our Investor Relations website.

I’ll turn the call over to Steve Trundle. Steve?

Steve Trundle

Thank you, Matt. Good afternoon, and welcome to everyone. We are pleased to report financial results for the third quarter that exceeded our expectations. SaaS and license revenue in the third quarter grew to $159.3 million, and adjusted EBITDA was $50 million. Our performance in the quarter resulted from continued momentum across our growth initiatives.

Sales of our video and access control products outperformed and contributed to hardware revenue that was above our expectations. We also saw our revenue retention rate increased to 95%, which is above our historical range. We believe two things are driving the revenue retention metric. First, our service providers have been increasingly putting in fully featured and more robust systems that provide value to the consumer or business owner every day. And second, the slower U.S. housing market has reduced subscriber moves, which can be a leading cause of account churn.