Home security and automation software provider Alarm.com (NASDAQ:ALRM) will be reporting earnings tomorrow afternoon. Here’s what to expect.
Alarm.com beat analysts’ revenue expectations by 3.9% last quarter, reporting revenues of $240.5 million, up 8.4% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
Is Alarm.com a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Alarm.com’s revenue to grow 5% year on year to $237.5 million, slowing from the 8.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.53 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Alarm.com has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.8% on average.
Looking at Alarm.com’s peers in the software-as-a-service segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Manhattan Associates delivered year-on-year revenue growth of 7.4%, beating analysts’ expectations by 0.9%, and Upstart reported revenues up 56.1%, topping estimates by 20.1%. Manhattan Associates traded down 24.5% following the results while Upstart was up 31.8%.
Read our full analysis of Manhattan Associates’s results here and Upstart’s results here.
There has been positive sentiment among investors in the software-as-a-service segment, with share prices up 5.4% on average over the last month. Alarm.com is down 2.1% during the same time and is heading into earnings with an average analyst price target of $73.63 (compared to the current share price of $60.81).
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