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Item 1. Business

2022-02-24 compared with 2021-02-25 · 179 added, 111 removed, 383 unchanged (43% of the section changed)

Alarm.com is the leading platform for the intelligently connected property.

We offer a comprehensive suite of cloud-based solutions for smart residential and commercial properties , including interactive security, video monitoring, intelligent automation, energy management and wellness solutions.

Millions of property owners depend on our technology to intelligently secure, automate and manage their residential and commercial properties.

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We also generate hardware and other revenue, primarily from our service provider partners and distributors.

Our hardware sales include connected devices that enable our services, such as video cameras, video recorders, gateway modules and smart thermostats.

We enter into contracts with our service provider partners that establish pricing for access to our platform solutions and for the sale of hardware.

Our hardware sales include connected devices that enable our services, such as video cameras, video recorders, gunshot detection sensors, gateway modules and smart thermostats.

Contracts with our service provider partners establish pricing for access to our platform solutions and for the sale of hardware.

These service provider contracts typically have an initial term of one year, with subsequent renewal terms of one year.

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See the "Non-GAAP Measures" section of Item 7.

"Management’s Discussion and Analysis of Financial Condition and Results of Operations - Non-GAAP Measures," for a discussion of the limitations of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income, the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States, or GAAP, for the years ended December 31, 2020, 2019 and 2018.

"Management’s Discussion and Analysis of Financial Condition and Results of Operations" for a discussion of the limitations of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to net income, the most directly comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the United States, or GAAP, for the years ended December 31, 2021, 2020 and 2019.

Our Solutions and Integrated Platforms

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This market includes the residential and commercial property owners who subscribe to our services, the hardware partners who manufacture devices that integrate with our platforms and the service provider partners who install and maintain our solutions.

The Alarm.com platform enables our service provider partners to deploy our interactive security, video monitoring, intelligent automation, energy management and wellness solutions as stand-alone offerings or as combined solutions to address the needs of a broad range of customers.

The Alarm.com platform enables our service provider partners to deploy our interactive security, video monitoring, intelligent automation, access control, energy management and wellness solutions as stand-alone offerings or as combined solutions to address the needs of a broad range of customers.

Subscriber Solutions

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Our dedicated, two-way cellular connection between the property and our platforms is designed to be tamper resistant and to meet the high reliability standards for life safety services.

Our solution integrates with central stations used by our service providers to monitor 24 hours a day, seven days a week, and coordinate emergency response as needed.

Subscribers can seamlessly connect to our services to control and monitor their security systems, as well as connected security devices including motion sensors, door locks, garage doors, thermostats and video cameras, through our family of mobile apps, websites and engagement platforms like voice control through Amazon Echo and Google Home, wearable devices like the Apple Watch and TV applications such as Apple TV and Amazon Fire TV.

Our platform integrates with monitoring stations used by our service providers to monitor the system 24 hours a day, seven days a week, and coordinate emergency response as needed.

Subscribers can seamlessly connect to our services to control and monitor their security systems, as well as to Internet of Things, or IoT, devices including door locks, garage doors, thermostats and video cameras, through our family of mobile apps, websites and engagement platforms like voice control through Siri Shortcuts, Amazon Echo and Google Home, wearable devices like the Apple Watch and TV applications such as Apple TV and Amazon Fire TV.

The capabilities associated with this solution include:

◦ Real-Time Alerts and Always-On Monitoring.

Whether the security system is armed or disarmed, we continuously monitor sensors in the property and can keep subscribers aware of system events in all kinds of situations.

Notifications for any type of system event are delivered through push notifications, short message service, or SMS, or email, based on the subscriber's preference.

Our proprietary algorithms help safeguard connected properties by continuously monitoring devices and sensors and learning the unique activity patterns in a property.

When unexpected activity is detected, the subscriber is automatically notified.

Facial recognition technology enhances unexpected activity alerts by enabling certain security panels with built-in cameras to proactively monitor for unauthorized sharing or theft of an authorized user's security system codes.

◦ Alarm Transmission.

We transmit alarm signals from monitored properties through our platforms to approximately 1,000 third-party central monitoring stations staffed 24 hours a day, seven days a week with live operators ready to initiate emergency response.

We transmit alarm signals from monitored properties through our cloud platforms to approximately 1,000 third-party central monitoring stations staffed 24 hours a day, seven days a week with live operators ready to initiate emergency response.

◦ Smart Signal.

Smart Signal is a mobile app feature that gives property owners a faster way to communicate critical information directly to their monitoring station.

With a single button push in the Alarm.com mobile app, users can verify an alarm to help expedite emergency response or quickly cancel a false alarm.

In addition, home or business owners who need emergency assistance can send a one-touch panic signal directly to their monitoring station.

With a single button push in the Alarm.com mobile app, subscribers can quickly verify an alarm to help expedite emergency response or easily cancel a false alarm.

By communicating critical information directly to the monitoring station, Smart Signal can help enhance the overall value of the professional monitoring services associated with Alarm.com systems and reduce false alarm dispatches.

In addition, home or business owners who need emergency assistance at their property can send a one-touch panic signal directly from their mobile app to their monitoring station.

Flex IO is a versatile, completely wireless device that extends awareness across a property and to assets in any location.

The battery-powered LTE Category M device creates new applications of our technology that existing hub-connected sensors cannot address.

Flex IO can be installed easily on a backyard gate, detached garage, remote storage unit, or it can be tethered to other assets like a boat, tractor or lawn mower.

Flex IO triggers activity notifications to subscribers as well as video recordings when activity is detected, or an asset is moved.

◦ Connected Car.

Our new battery-powered, cellular Connected Car solution extends smart security beyond the home, enabling subscribers to track their vehicle's location, view engine status and analyze fuel efficiency from the Alarm.com mobile app.

Our battery-powered, cellular Connected Car solution extends smart security beyond the home, enabling subscribers to track their vehicle's location, view engine status and analyze fuel efficiency from the Alarm.com mobile app.

Subscribers enjoy peace of mind with real-time driver safety alerts, diagnostic alerts and unexpected activity alerts.

Fully integrated with the Alarm.com platform, Connected Car provides smarter, more responsive alerts and more intelligent automation than standalone solutions.

◦ Always-On Monitoring.

Whether the security system is armed or disarmed, we continuously monitor sensors in the property and can keep subscribers aware of system events in all kinds of situations.

◦ Insights Engine.

Our proprietary machine learning algorithms help safeguard connected properties by learning the unique activity patterns at the property and automatically notifying the subscriber of unexpected activity.

◦ Real-Time Alerts.

Notifications for any type of system event are delivered through push notifications, short message service, or SMS, or email, based on the subscriber's preference.

Flex IO is a versatile, completely wireless device that extends awareness across a property and to assets in any location.

The battery-powered device leverages LTE Category M capabilities to create new applications of our technology that existing hub-connected sensors cannot address.

Flex IO can easily install on a backyard gate, detached garage, remote storage unit, or it can be tethered to other assets like a boat, tractor or lawn mower.

Flex IO triggers activity notifications to subscribers as well as video recordings when activity is detected, or an asset is moved.

Our technology intelligently monitors quality of life through a suite of connected sensors and devices, and delivers proactive insights into activities of daily living.

With alerts about changes in behavior that can indicate emerging quality of life issues, family members and homecare and senior living providers can address issues before they escalate and deliver more efficient care.

Video Monitoring

Our high definition video monitoring solution can provide a direct view into the property, capture footage of critical events and provide visual peace of mind.

We offer indoor and outdoor camera solutions for residential and commercial properties at varying price points.

Video Monitoring and Video Analytics

Our video monitoring solution can provide a direct live-view into a property, identify and capture footage of critical events and provide visual peace of mind.

We offer indoor and outdoor video cameras for residential and commercial properties at varying price points so that our service providers can engage a range of consumers with our services.

We also provide a doorbell video camera solution that supports two-way audio with guests at the door, as well as video management software and cameras for enterprise commercial applications through our OpenEye business.

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Our video analytics engine provides object classification and object tracking technology that can distinguish between people, vehicles and animals, determine an object's direction of movement and measure the duration of activity.

Subscribers can selectively control and manage notifications and assign virtual zones and multi-directional "tripwires" so they can monitor their properties for highly specific activity.

Subscribers can selectively control and manage notifications and assign virtual zones and multi-directional "tripwires" so they can monitor their home or business for highly specific activity.

Perimeter Guard is the latest enhancement to our video analytics capabilities and can proactively identify and engage would-be intruders before they can threaten physical property.

◦ Video Doorbell.

Alarm.com offers a full line of video doorbell options with a diversity of price points.

From a single screen on the Alarm.com mobile app, subscribers can see and speak with visitors and control their door locks.

The Alarm.com 770 video doorbell operates proprietary video analytics software that can quickly and accurately detect visitors while reducing unwanted alerts, such as those caused by passing vehicle traffic or swaying branches.

A touch-free capability immediately activates the doorbell chime when a visitor is detected, eliminating the need to physically press a doorbell button.

◦ Intelligent Integration.

Alarm.com’s video surveillance solution works intelligently with other devices and sensors in the property.

Subscribers can create intelligent rules to capture video clips of important events to enhance security and privacy.

◦ Live Streaming .

Subscribers can securely access live video feeds through the web and mobile apps at any time.

◦ Video Doorbell:

Our next generation video doorbell uses proprietary video analytics that quickly and accurately detect outside visitors while reducing unwanted alerts, such as those caused by passing vehicle traffic or swaying branches.

A touch-free feature eliminates the need to physically press a doorbell button by immediately activating the doorbell chime when a visitor is detected standing in a designated “doorbell zone.”

◦ Secure Cloud Storage .

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Smart clips can be automatically sent via SMS, push notifications or email as soon as they are recorded.

◦ Continuous High Definition Recording.

Onsite recording up to 24 hours a day, seven days a week is enabled through our Stream Video Recorder, or SVR, and can be played back securely, from anywhere, through the web and mobile apps.

◦ Commercial Video Surveillance.

Our commercial video surveillance offering provides leading commercial-grade network cameras to support a wide range of business needs, enabling multi-camera installations with continuous recording, cloud-based storage and mobile access.

Our commercial-grade stream video recorder offers a hybrid solution with local recording, cloud management and off-site storage of critical events and supports up to 16 cameras to give our service provider partners a highly competitive video service for supporting larger video installations in the small and medium sized business market.

Our OpenEye solution supports enterprise-level requirements such as advanced forensic video search, point of sale system integration and customer site mapping, as well as large-scale camera deployments.

Intelligent Automation and Energy Management

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The capabilities associated with this solution include:

A customizable scenes button within the Alarm.com app provides the ability to adjust multiple devices in the property with a single command.

A customizable scenes button in the Alarm.com app can adjust multiple devices in the property with a single command.

For example, a homeowner leaving the house can arm the security system, lock the front door, close the garage door and adjust the thermostat with a single command.

◦ Video Analytics Triggers.

A robust set of automation rules allows our subscribers to customize automations to respond when certain activity is detected by their video monitoring solution.

For example, subscribers can create a rule that if a person is detected in their backyard at night, certain lights should turn on.

◦ Smart Thermostat Schedules.

Machine learning algorithms analyze system activity patterns to recommend thermostat schedules that increase energy efficiency when the property is not likely to be occupied.

Advanced algorithms can learn the unique activity patterns in a property by analyzing sensor and device data.

Our solution can then recommend thermostat schedules that have the potential to increase energy efficiency when the property is not likely to be occupied.

◦ Responsive Savings .

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For example, when the security system is armed away, an arming state used when the property is not occupied, the thermostat can automatically adjust to save energy.

Additionally, if a window is open for a period of time, the smart thermostat can adjust to an efficiency setting and alert the property owners.

◦ Precision Comfort.

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Our Heating, Ventilation and Air Conditioning, or HVAC, monitoring service works with select high-efficiency heating and cooling systems and allows HVAC contractors to remotely monitor and manage sophisticated residential and light commercial heating and cooling systems.

◦ Whole Home Water Safety Solution.

Our comprehensive whole home water safety solution protects properties from a full range of water-related damage.

Integrated with Alarm.com’s Smart Water Valve + Meter, our solution can monitor usage, detect both low- and high-volume leaks and automatically shut off the property’s water supply.

Working with other connected devices in the Alarm.com ecosystem, our solution can also alert the homeowner about conditions that can lead to frozen and burst pipes, intelligently manage humidity levels and notify homeowners if a sump pump fails.

◦ Geo-Services.

Geo-Services use a phone’s geo-location to determine when to notify a subscriber of specific system conditions, or to automatically adjust system settings.

Subscribers who enable Geo-Services can be notified if they leave home and forgot to lock a door, close the garage door, arm their security system or close a window.

◦ Places Feature.

The Places feature uses a phone’s geo-location to determine when to notify a subscriber of specific system conditions, or to automatically adjust system settings.

Subscribers who enable the Places feature can be notified if they leave home and forgot to lock a door, close the garage door, arm their security system or close a window.

Additionally, smart thermostats and lights can be automatically adjusted based on the subscriber's location.

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Managed at scale, these voluntary programs can significantly reduce costs for utilities.

In addition to enabling subscribers to participate in these programs through our energy management solution, our EnergyHub subsidiary

aggregates a diverse set of smart thermostats, connected water heaters, batteries and electric vehicles, enabling utilities to leverage these devices as an enterprise-grade, grid resource through EnergyHub's SaaS platform.

In addition to enabling subscribers to participate in these programs through our energy management solution, our EnergyHub subsidiary aggregates a diverse set of smart thermostats, connected water heaters, batteries and electric vehicles, enabling utilities to leverage these devices as an enterprise-grade, grid resource through EnergyHub's SaaS platform.

◦ Whole Home Water Safety Solution.

Our comprehensive whole home water safety solution helps subscribers conserve water and protects properties from a full range of water-related damage.

Integrated with Alarm.com’s Smart Water Valve + Meter, our solution can monitor water usage, detect both low- and high-volume leaks and automatically shut off the property’s water supply.

Commercial Solutions

In addition to our residential solutions, we offer Alarm.com for Business, a security solution for small and medium businesses, ranging from single-site to multi-location businesses.

Alarm.com for Business combines intelligent intrusion detection, video surveillance, access control and energy management into a single solution through Alarm.com's app and online interfaces.

Our Smarter Access Control solution, part of the unified Alarm.com for Business platform , helps solve many of the challenges faced by small business owners, with an array of always-on operational tools that can improve management and control.

Our solution enhances and simplifies business operations, streamlines security, saves energy and provides insights into customer habits.

Additionally, our business insights tools provide actionable intelligence, including open and close trends by location, peak periods of activity and customer traffic and energy savings opportunities.

In addition to our residential solutions, we offer a full range of commercial security services that uniquely address the requirements of small, medium and enterprise scale businesses.

Alarm.com for Business, our security solution for small and medium businesses that range from single-site to multi-location businesses, combines intelligent intrusion detection, video surveillance, access control and energy management into a single solution through Alarm.com's app and online interfaces.

Our solution streamlines business operations, enhances property security and awareness, saves energy and provides insights into employee and customer activity.

Additionally, business insights reporting provides actionable intelligence, including open and close trends by location, peak periods of activity and customer traffic and energy savings opportunities.

Key benefits of the commercial offering include:

◦ Daily Safeguards.

Smarter business security keeps subscribers' properties and business locations secure with automatic arming at a certain time each day or after a certain period of inactivity.

◦ Commercial Grade Video Solutions.

Connected commercial cameras communicate with the security system, capturing clips as activity occurs, and clips are uploaded to our cloud-based storage system for secure storage and remote viewing.

Subscribers can receive real-time alerts and instantly view footage through the web or mobile apps if the alarm goes off, a door is unlocked, or unexpected activity occurs outside of normal business hours.

Connected commercial cameras deeply integrate with the security and access control systems, capturing clips as activity occurs, which are uploaded to our cloud-based platform for secure storage and remote viewing through the web or our mobile app.

Subscribers can receive real-time alerts and video clips if the alarm goes off, a door is unlocked, or unexpected activity occurs outside of normal business hours.

Business owners can assess the situation and take appropriate action at any time of day and from any location.

◦ Commercial Video Analytics.

Business Activity Analytics can help improve and optimize business operations.

Commercial subscribers can intelligently monitor customer and employee activity, including occupancy tracking, people counting, queue monitoring, crowd gathering and heat mapping.

Real-time notifications and activity reporting can help streamline customer flows, reduce wait times, measure the effectiveness of marketing campaigns and enforce occupancy and social distancing limits.

◦ Smarter Access Control.

Our Smarter Access Control solution streamlines access management and helps solve many of the challenges faced by small business owners with an array of always-on operational tools that can improve property control, security and awareness.

From a single web view, subscribers can add and delete users, manage access points and user permissions and define schedules across multiple locations and security partitions.

Leveraging advanced algorithms, our Smarter Access Control solution intelligently learns the activity patterns of users and access points for single or multiple property installations, detects unexpected events and alerts the subscriber of the irregular activity.

◦ Multi-site Management.

Commercial subscribers with multiple business locations and access points can easily manage Alarm.com’s commercial solutions from a single enterprise dashboard.

They can customize video feeds to monitor multiple properties and use sophisticated rules, user permissions and schedules to manage access across multiple locations and security partitions.

Business owners and managers can add and delete access credentials for new and departing employees and provide limited access to third parties such as delivery personnel, without calling their service provider or worrying about spare keys.

◦ Energy Savings.

Our smarter thermostat helps subscribers reduce energy costs automatically, even if someone forgets to adjust the temperature when they're closing up at the end of the day, generating a return on investment.

Our smarter thermostats help subscribers reduce energy costs automatically, even if someone forgets to adjust the temperature when they are closing up at the end of the day, generating a return on investment.

◦ Protection for Valuables and Inventory.

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Business owners receive alerts for out-of-range temperatures so they can quickly prevent unsafe conditions, reduce spoilage and repair malfunctioning equipment.

◦ Multi-site Management and Access Control.

Commercial subscribers with multiple business locations and access points can easily manage Alarm.com’s commercial video and access control solutions from a single dashboard and customize video feeds to seamlessly monitor multiple properties and use sophisticated rules, user permissions and schedules to manage access across multiple locations and security partitions.

Business owners and managers can easily add and delete access for new employees and departing employees in a few clicks and provide limited access for third parties such as delivery personnel, without calling the alarm company or worrying about spare keys.

◦ Operational Insights.

Visibility into activity patterns and trends can help business owners make smarter decisions around staffing, promotions, energy use and more.

Reports show activity patterns across the business, helping owners spot new opportunities for staffing, traffic flow and promotions.

◦ Early Problem Identification.

Unexpected activity alerts provide business owners and managers with the early identification of activity such as unexpected entry after hours, or doors propped open that could cause energy waste or safety concerns, helps business owners quickly respond to problematic situations.

◦ Daily Safeguards.

Smarter business security intelligently keeps business locations secure while minimizing false alarms.

Subscribers can specify a time for the security system to automatically adjust to an armed state each day.

The system will arm itself only after a certain period of inactivity in the property.

◦ Proactive Awareness.

Unexpected activity alerts provide business owners and managers with the early identification of activity such as unexpected entry after hours, or doors propped open that could cause energy waste or safety concerns, and help business owners quickly respond to problematic situations.

Alarm.com provides a time stamped log of which users armed or disarmed the system or entered the property using their keycard.

◦ Simple to Use.

Alarm.com’s smartphone app is intuitive to use, with visibility and control of every solution available within a single dashboard.

◦ Professionally Supported.

◦ Professionally Supported and Low Cost of Ownership.

Unlike traditional commercial security services, Alarm.com’s connected solutions are cloud-based and do not require additional IT resources.

Smarter business security powered by Alarm.com is supported by our authorized service provider partners from start to finish, with installation, configuration and technical support included.

Our service provider partners are trained and equipped with Alarm.com’s advanced digital tools.

◦ Easy to Maintain.

Alarm.com’s solutions are cloud-based, so no additional IT resources are needed.

Our OpenEye enterprise commercial video management solution complements the Alarm.com for Business platform and extends our market to address the unique requirements of large commercial and national account customers such as

universities, banks, national retail chains and property management companies.

OpenEye offers Video Surveillance as a Service, or VSaaS, as well as cameras, recorders and other peripherals designed for video applications.

OpenEye offers Video Surveillance as a Service, or VSaaS, as well as cameras, recorders and other peripherals designed for video applications, and supports enterprise-level requirements such as advanced forensic video search, point of sale system integration and customer site mapping, as well as large-scale camera deployments.

Key benefits of the OpenEye solution include:

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OpenEye’s user interface is optimized for guard or command stations and other settings where video from multiple cameras is viewed and searched simultaneously on secure workstations or video walls.

Shooter Detection Systems expands our capabilities in the overall small and midsize business and commercial markets, and specifically for large commercial and enterprise customers, by providing an indoor gunshot detection solution to help alert employees and the public against active shooter threats.

◦ CloudConnect.

CloudConnect is a two-way integration between the OpenEye Cloud Video Platform and the Alarm.com for Business platform that directly associates event data from intrusion sensors and access control readers with OpenEye’s VSaaS offering.

Based on criteria such as system arming status or badge scans by specific users, subscribers can customize event-based rules to record video clips, tag videos and generate alerts, or they can directly navigate to video recordings associated with a particular event.

The integration further unifies intrusion, access control and video solutions to offer a more intelligent and convenient way to manage and secure commercial properties.

Shooter Detection Systems expands the platform capabilities we provide to the overall commercial security market.

Our multi-sensor solution provides highly accurate indoor gunshot detection to help alert employees and the public against active shooter threats.

The solution uses a dual-mode detection technology that combines acoustic sensors with specialized infrared flash detectors, in tandem with fully proprietary gunshot detection software algorithms to maximize detection without driving false positives.

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Through this portal, our service provider partners can activate and manage their Alarm.com customer accounts, order equipment, access invoices and billing, remotely program customer systems, obtain sales and marketing services and engage in training.

◦ Service Dashboard.

The Partner Services Platform provides a unified interface that displays key operational and customer experience indicators, including technician performance, system reliability and customer engagement metrics.

Service managers can identify opportunities for implementing efficiencies that they can then operationalize through the suite of Alarm.com’s service provider solutions.

◦ Installation and Support.

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▪ On-Site Wrap Up.

The On-Site Wrap Up feature within the MobileTech application helps technicians keep track of and record the tasks they are required to complete and empowers security providers who want a set of standard actions completed during customer visits.

The On-Site Wrap Up feature within the MobileTech application helps technicians keep track of and record the tasks they are required to complete during a service call to a customer property.

Service providers can establish standard actions for technicians and monitor implementation.

On-Site Wrap Up helps Alarm.com’s service provider partners ensure that their field technicians deliver consistent, high-quality service that reduces support costs and customer attrition.

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It uses technicians’ mobile devices to provide useful navigation to service and installation appointments, sends more accurate arrival time email notifications to customers and helps service providers gauge the efficiency of their workforce.

▪ Device Sync .

Our integrations with monitoring stations allow operators to proactively address trouble conditions associated with a subscriber's video cameras and connected devices.

Participating monitoring stations can receive alerts when a device malfunctions or its batteries are low, and operators can then communicate to subscribers to remotely address the issue or schedule a service appointment with a technician, if needed.

• Video Health Reports:

Video Health Reports give Alarm.com’s service provider partners and their commercial video customers a monthly snapshot of the condition of video cameras and stream video recorders.

System summaries and device-by-device information provide awareness of potential issues to ensure continuous, uninterrupted video coverage, reduce maintenance and support calls, and eliminate the need for manual checks by the customer.

• Smart Gateway.

The Smart Gateway allows service provider partners to create a private and secure Wi-Fi network infrastructure specifically for a subscriber's property that is dedicated to Alarm.com video cameras.

is designed to streamline camera installation and reduce common support issues caused by a subscriber's unmanaged Wi-Fi network, and to enable Alarm.com's service provider partners to more efficiently deploy video cameras and services with better connectivity and maximized wireless spectrum for performance.

It is designed to streamline camera installation and reduce common support issues caused by a subscriber's unmanaged Wi-Fi network.

With Smart Gateway, Alarm.com's service provider partners can also more efficiently deploy video cameras and services with better connectivity and leverage wireless spectrum maximized for performance.

◦ AI-powered Enhancements to Professional Monitoring and False Alarm Reduction.

We apply our advanced, AI architecture to provide our third-party monitoring station partners with powerful insights.

We designed these capabilities to streamline their operations, empower them to provide critical information to public safety dispatchers and first responders, enhance the value of the monitoring services they provide to subscribers and reduce false alarm dispatches.

• Ambient Insights for Alarm Response.

Ambient Insights for Alarm Response provides third-party monitoring stations with a real-time determination as to the likelihood that the property owner will cancel an alarm.

The alarm assessments are designed to help operators prioritize multiple alarm events.

Monitoring stations can rapidly dispatch emergency services to the highest priority alarms, while also reducing the likelihood of false alarm dispatches.

• People Detection for Monitoring Stations.

Our cloud-based video analytics engine provides our monitoring station partners with video clips of people detected in a property immediately before, during and after an alarm event.

Video clips are sent directly to the monitoring station operator’s interface to help them expedite responses and reduce false dispatches.

◦ Business Management.

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Business Intelligence provides key operational metrics related to account plan adoption, attrition and service quality to help service provider partners grow their business and improve customer retention.

• Video Health Reports:

Video Health Reports give Alarm.com’s service provider partners and their commercial video customers a monthly snapshot of the condition of video cameras and stream video recorders.

◦ Sales, Marketing & Training.

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Residential and commercial properties are ripe for reinvention.

The intersection of significant technology trends, like the broad adoption of mobile devices, the emergence of the Internet of Things, or IoT, the power of big data and the extensibility of the cloud, makes the connected property possible.

The intersection of significant technology trends, like the broad adoption of mobile devices, the emergence of the IoT, the power of big data and the extensibility of the cloud, makes the connected property possible.

Security systems, thermostats, door locks, video cameras, lights, garage doors and other devices that were once inert can now be intelligent and connected.

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◦ Reliable Network Communications.

Our platforms utilize a highly secure, highly reliable, dedicated cellular connection which mitigates common vulnerabilities of systems that are connected via the phone line or wired networks, such as power outages, cut phone lines, or broadband connectivity issues.

◦ Intelligent and Actionable.

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We have developed a highly scalable data analytics engine to deliver unique features and capabilities based on insights derived from this growing set of data.

For example, learning detailed activity patterns in a property enables our

platforms to proactively alert the subscriber about unexpected events.

For example, learning detailed activity patterns in a property enables our platforms to proactively alert the subscriber about unexpected events.

Our platforms continue to learn and adapt to become more personalized over time.

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We respect the privacy of our subscribers and do not sell their data.

Our reputation is strengthened through our network of over 10,000 service provider partners, who have significant expertise in the delivery of our SaaS platforms and suite of solutions.

Our reputation is strengthened through our network of

over 10,900 service provider partners, who have significant expertise in the delivery of our SaaS platforms and suite of solutions.

Benefits to Service Provider Partners:

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Our cloud-based platforms can help reduce our service provider partners’ service delivery and support costs.

Remote Toolkit enables our service provider partners to remotely configure, support and upgrade their customer's hardware or software, eliminating the cost of an in-person service call for many routine support issues.

Remote Toolkit enables our service provider partners to remotely configure, support and upgrade their customers' hardware or software, eliminating the cost of an in-person service call for many routine support issues.

In addition, we believe our service provider partners can generate more revenue from each subscriber by providing services beyond traditional security.

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Device hardware is deeply integrated into our platforms to provide a more cohesive experience than stand-alone products deliver.

For example, in 2020, we released Flex IO, a versatile, completely wireless device that extends awareness across a property and to assets in any location by leveraging LTE Category M capabilities to create new applications of our technology that existing hub-connected sensors cannot address.

For example, we released Flex IO, a versatile, completely wireless device that extends awareness across a property and to assets in any location by leveraging LTE Category M capabilities to create new applications of our technology that existing hub-connected sensors cannot address.

Our platforms also support various broadly adopted communications protocols commonly used in many automation devices, including Z-Wave, Wi-Fi and cellular.

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We are investing in international expansion because we believe there is a significant global market opportunity for our products and services.

Today, our products are currently localized and available in over 40 countries outside of North America, including Argentina, Australia, Belgium, Brazil, Chile, Colombia, Iceland, Ireland, Netherlands, New Zealand, Norway, Switzerland and Turkey.

Today, our products are currently localized and available in approximately 40 countries outside of North America, including Argentina, Australia, Belgium, Brazil, Chile, Colombia, Iceland, Ireland, Netherlands, New Zealand, Sweden, Switzerland and Turkey.

We intend to continue to grow our number of international subscribers by strengthening our presence in existing markets and expanding to additional markets.

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We offer cellular communications modules that are tightly integrated with security system control panels, sensors and other devices.

We regularly pioneer technical advances in this space, including the expansion of our deployment of security services hardware with 4G LTE cellular network connections.

We regularly pioneer technical advances in this space, including the expansion of our deployment of security services hardware with 4G LTE and LTE CAT-M cellular network connections.

All of our modules, designed by our device engineering team and manufactured in the United States by a contract manufacturing partner, provide a dedicated and fully managed two-way cellular connection between the subscriber’s property and our cloud platforms.

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◦ Video Cameras .

We offer a suite of high definition, Internet Protocol, or IP, video cameras to enable our video monitoring services.

We offer a suite of high definition, Internet Protocol, video cameras and video doorbells to enable our video monitoring services.

Our indoor, outdoor, and video doorbell cameras include options for night vision capabilities as well as wireless or Power over Ethernet communication features.

We also offer a network video recording device, the SVR, for on premise, continuous video recording seamlessly connected to our cloud platforms for remote playback through our user interfaces.

Our video cameras and SVRs are specified to our platforms through proprietary software.

◦ Alarm.com Smart Thermostat .

Our Smart Thermostat combines elegant design, sophisticated cloud services and advanced energy management features.

It was designed by our Building 36 and device engineering teams to work in concert with other devices in the connected property.

It communicates with the Alarm.com communications module via Z-wave and supports both battery power and common wire power installation.

• Remote temperature sensors can pair with our Smart Thermostat to enable temperature set points for any room in the property, not just the room where the thermostat is installed.

Our Smart Thermostat supports multiple remote temperature sensors for precise temperature control for a residential or commercial property.

• We designed our Smart Thermostat to be easy to install and support remotely.

All of these video products and SVRs are specified to our platforms through proprietary software.

◦ Alarm.com Smart Thermostats .

Our Smart Thermostats combine elegant design, sophisticated cloud services and advanced energy management features.

They were designed by our Building36 and device engineering teams to work in concert with other devices in the connected property.

Our Smart Thermostats communicate with the Alarm.com communications module via Z-wave and support both battery power and common wire power installation.

• Remote temperature sensors can pair with our Smart Thermostats to enable temperature set points for any room in the property, not just the room where the thermostats are installed.

Our Smart Thermostats support multiple remote temperature sensors for precise temperature control for a residential or commercial property.

• We designed our Smart Thermostats to be easy to install and support remotely.

The MobileTech app assists in proper wiring and installation and Remote Toolkit enables remote access to the thermostat settings for easy troubleshooting and support.

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Our Smart Water Valve + Meter is an innovative addition to the Alarm.com Water Management solution, identifying low and high-volume water leaks and constantly monitoring overall water use and current usage rates in homes and businesses.

Freeze and winter plumbing alerts include a reminder to winterize external water supplies and notifications triggered by local weather conditions when both water and outdoor temperatures create a greater risk for frozen pipes.

Deep integration with the Alarm.com platform leverages intelligence and insights to help reduce the risk of losses from water emergencies, while also improving water conservation efforts.

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The traditional security and home automation market is highly fragmented with approximately 15,000 security service providers nationally.

According to the February 2020 Barnes Buchanan Conference Report, the top 5 dealers represented approximately 34% of all industry recurring monthly revenue in 2020.

According to the Barnes Buchanan 2022 Security Alarm Industry Overview and Update report, the top 5 dealers represented approximately 34% of all industry recurring monthly revenue in 2021.

The distribution of revenue among our service provider partners is reflective of the industry overall.

ADT LLC represented greater than 15% but not more than 20% of our revenue in 2018, 2019 and 2020.

ADT LLC represented greater than 15% but not more than 20% of our revenue in each of 2019, 2020 and 2021.

Our platforms currently support millions of residential and commercial subscribers.

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and SimpliSafe, Inc.

In addition, our service provider partners compete with security solutions sold directly to subscribers, as well as managed service providers, such as cable television, telephone and broadband companies like AT&T Inc., Comcast Cable Communications, LLC and Rogers Communications, Inc., and providers of point products, including Google Inc.'s Nest Labs, Inc.

In addition, our service provider partners compete with security solutions sold directly to subscribers, as well as managed service providers, such as cable television, telephone and broadband companies like, Comcast Cable Communications, LLC and Rogers Communications, Inc., and providers of point products, including Google Inc.'s Nest Labs, Inc.

Amazon.com offers Amazon Home Services security packages with bundled equipment and professional installation, and Amazon Key, a security camera and smart lock integration feature.

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Additionally, Canary and other companies offer all in one video monitoring and awareness devices.

In addition, we may compete

with other large and small technology companies that offer control capabilities among their products, applications and services, and have ongoing development efforts to address the broader connected home market.

In addition, we may compete with other large and small technology companies that offer control capabilities among their products, applications and services, and have ongoing development efforts to address the broader connected home market.

Many of our competitors have longer operating histories, greater name recognition, larger customer bases and significantly greater financial, technical, sales, marketing, distribution and other resources than we have.

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To accomplish these objectives, we rely on a combination of patent, trademark, copyright and trade secret laws in the United States and other jurisdictions, as well as license agreements, confidentiality agreements and other contractual protections.

As of December 31, 2020, we owned 423 issued United States utility patents, one issued United States design patent, eight issued Canadian patents and five issued Australian patents and these patents are scheduled to expire between 2021 and 2039.

We continue to broaden our intellectual property portfolio and file patent applications and as of December 31, 2020, we had 261 pending utility patent applications and 44 provisional patent applications filed in the United States.

We also had 13 pending international patent applications and 106 international patent applications pending under the Patent Cooperation Treaty.

As of December 31, 2021, we owned 544 issued United States utility patents, one issued United States design patent, eight issued Canadian patents, 11 issued Australian patents, among others, and these patents are scheduled to expire between 2022 and 2040.

We continue to broaden our intellectual property portfolio and file patent applications and as of December 31, 2021, we had 285 pending utility patent applications and 38 pending provisional patent applications filed in the United States.

We also had two pending international patent applications and 158 international patent applications pending under the Patent Cooperation Treaty.

The claims for which we have sought patent protection apply to both our platforms and solutions.

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We also rely on several registered and unregistered trademarks to protect our brand.

We have 15 registered trademarks in the United States, including Alarm.com and the Alarm.com logo and design, and six registered trademarks in Canada.

We have 20 registered trademarks in the United States, including Alarm.com and the Alarm.com logo and design, and eight registered trademarks in Canada, one in the United Kingdom and one in the European Union.

We seek to protect our intellectual property rights by requiring our employees and independent contractors involved in development to enter into agreements acknowledging that all inventions, trade secrets, works of authorship, developments, concepts, processes, improvements and other works generated by them on our behalf are our intellectual property, and assigning to us any rights, including intellectual property rights, that they may claim in those works.

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We have brought infringement claims against third parties in the past and may do so in the future to defend our intellectual property position.

In addition, from time to time, we

may face claims by third parties that we infringe upon or misappropriate their intellectual property rights, and we may be found to be infringing upon or to have misappropriated such rights.

In addition, from time to time, we may face claims by third parties that we infringe upon or misappropriate their intellectual property rights, and we may be found to be infringing upon or to have misappropriated such rights.

In the future, we, or our service providers or subscribers, may be the subject of legal proceedings alleging that our solutions or underlying technology infringe or violate the intellectual property rights of others.

Environmental, Social and Corporate Governance Matters

Environmental

To operate long-term, we need to ensure that our local communities and the natural environment are thriving.

To help meet these goals we intend to continue promoting, providing and investing in the further development of solutions that can help reduce energy waste and facilitate water conservation.

These include demand response programs, smart thermostats, energy management solutions, Smart Water Valve + Meter device and advanced functionality within the Alarm.com app.

Our demand response programs manage over 700,000 connected devices for more than 60 energy utilities in North America.

These programs support energy utilities as they pursue aggressive clean energy goals.

Our lineup of smart thermostats and intelligent energy management solutions can automatically adjust to reduce energy waste in residential and commercial properties.

These solutions can change a thermostat’s temperature set-point based on subscriber location, property occupancy and activity patterns, and if a door or window is left open for too long.

To facilitate wide-spread adoption of energy management technology, we developed many of these capabilities to also work with smart thermostats manufactured by third party companies.

The Alarm.com mobile app includes customizable scenes buttons that can assist in increasing the potential for energy efficiency by adjusting multiple devices in the property with a single command.

For example, a homeowner can turn on the fan, raise or lower shades, turn on or off lights and adjust the thermostat with a single command.

Commercial users can create automated schedules to secure a property and automatically adjust the thermostat at a specified time.

Our recently launched Smart Water Valve + Meter device is part of a comprehensive water management solution.

Two on-board flow sensors monitor water usage to facilitate water conservation behavior.

The device can also detect burst pipes, major leaks, and wasteful slow persistent drips, and can respond by informing the property owners of opportunities to reduce water waste, or as needed, by automatically shutting off the water supply to quickly protect properties from damage.

Our commitment extends to the buildings in which our employees work.

Many of our offices use LED lighting with sensors that turn off the lights when motion is not detected and several of our offices are Leadership in Energy and Environmental Design, or LEED, certified or Energy Star® certified, which indicates that the buildings help conserve energy and limit the amount of greenhouse gas emissions.

Additionally, several of our offices have building recycling programs, including programs specific to batteries and electronics.

During 2021, we created a Sustainability Team that is focused on integrating sustainability throughout our organization.

Through the efforts of the Sustainability Team and others throughout our organization, we have improved the packaging for some of our hardware by switching to recyclable materials and eliminating polyethylene bags from our user guides.

We are also actively working towards replacing many of our paper manuals with online guides.

We are committed to providing an equal opportunity for all employees regardless of race, gender, sexual orientation, religion or other differences.

We want every employee to feel valued, respected and heard.

We believe that recruiting from the widest available talent pool, and then facilitating collaboration among people of all experiences and backgrounds enhances our ability to innovate.

In order to further support our talent development efforts, we identified Diversity Ambassadors to foster communication regarding diversity and inclusion initiatives, and to drive initiatives and trainings that improve our overall team performance via better collaboration while also increasing understanding amongst our diverse cultures.

We continue to promote our Women in Tech group, aimed to empower women to grow their technical expertise and leadership in science, engineering and technology at Alarm.com.

We also developed and launched an Apprenticeship Program to help break down traditional barriers to entry into the technology industry that provides hands on training that can be applied in the real world.

We continue to prioritize the health and safety of our employees during the COVID-19 pandemic.

As we continue to navigate remote work and the stresses of the pandemic, it is important that we support the mental health of our employees.

In 2021, we partnered with a company that helps support mental health in the workplace through trainings and information sessions.

We also provide additional healthcare benefits to employees, making it safer and more convenient to get the care they need remotely.

In addition to primary care, these additional remote healthcare benefits include physical therapy, mental health services and health coaching.

In 2021, we also provided free access to an app that promotes wellness through meditation and provides employees with hundreds of guided exercises for meditation, sleep, focus and movement.

We also partnered with a company that provides various family care benefits, including access to a self-service, searchable database of providers for family care needs, including care for children, adult dependents, pets and tutoring.

Our corporate behavior and leadership practices are based on integrity and ethical decision-making.

Employees are informed about our governance expectations through our Code of Business Conduct, compliance training programs and ongoing communications.

The Nominating and Corporate Governance Committee of our Board of Directors oversees our corporate governance objectives, strategies, goals, compliance and risk mitigation.

Our Human Capital Resources

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SDS is a provider of an indoor gunshot detection solution that helps alert employees and the public against active shooter threats.

In December of 2021, we acquired certain assets from an unrelated party.

Substantially all of the assets acquired consisted of developed technology.

We believe the acquisition of the developed technology will continue to advance our load-shaping energy management solution allowing additional devices to participate in utility programs that reduce or shift power consumption during peak demand periods.

Available Information

Our website is located at www.alarm.com and our investor relations website is located at http://investors.alarm.com.

Act, are available free of charge on our investor relations website as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission, or the SEC.

Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, are available free of charge on our investor relations website as soon as reasonably practicable after we electronically file

such material with, or furnish it to, the SEC.

The SEC maintains an internet site that contains reports, proxy and information statements and other information.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business