Alarm.com is the leading platform for the intelligently connected property.
−Removed: Our cloud-based platform offers an expansive suite of Internet of Things, or IoT, solutions that address opportunities in the residential, multi-family, small business and enterprise commercial markets.
+Added: Our cloud-based platform offers an expansive suite of Internet of Things, or IoT, solutions addressing opportunities in the residential, multi-family, small business and enterprise commercial markets.
Alarm.com’s solutions include security, video and video analytics, energy management, access control, electric utility grid management, indoor gunshot detection, water management, health and wellness and data-rich emergency response.
−Removed: As of December 31, 2022, 9.1 million homes and businesses around the world depend on our Alarm.com platform or our non-hosted software to intelligently and conveniently secure, automate and manage their properties.
−Removed: In the last year alone, our platforms processed more than 300 billion data points generated by over 100 million connected devices.
−Removed: We believe that this scale of subscribers, connected devices and data operations makes us the leader in the connected property market.
+Added: During 2023, our platforms processed more than 325 billion data points generated by over 150 million connected devices.
+Added: We believe this scale of subscribers, connected devices and data operations makes us the leader in the connected property market.
Our solutions are delivered through an established network of trusted service providers, who are experts at selling, installing and supporting our solutions.
−Removed: The number of our service provider partners exceeded 11,000 as of December 31, 2022.
We primarily generate SaaS and license revenue through our service provider partners, who resell these services and pay us monthly fees.
1 unchanged sentence
Our service provider partners have indicated that they typically have three to five-year service contracts with residential and commercial property owners who use our solutions.
−Removed: Our service provider partners are free to market and sell our products under their own guidelines at prices to the consumer that they establish independently.
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, gunshot detection sensors, gateway modules and smart thermostats.
−Removed: We believe that our network of service providers and the length of our service relationships with residential and commercial property owners, combined with our robust SaaS platforms and over 20 years of operating experience, contribute to a compelling business model.
+Added: We believe our network of service providers and the length of our service relationships with residential and commercial property owners, combined with our robust SaaS platforms and over 20 years of operating experience, contribute to a compelling business model.
We have experienced significant growth since our company's inception in 2000.
1 unchanged sentence
Our SaaS and license revenue was $569.2 million, $520.4 million and $460.4 million in 2023, 2022 and 2021, respectively, representing a compound annual growth rate of 11.2%.
−Removed: We also generated net income attributable to common stockholders of $56.3 million, $52.3 million and $77.9 million in 2022, 2021 and 2020, respectively, as well as Adjusted EBITDA, a non-GAAP metric, of $146.8 million, $142.5 million and $125.3 million in 2022, 2021 and 2020, respectively.
+Added: We also generated net income attributable to common stockholders of $81.0 million, $56.3 million and $52.3 million in 2023, 2022 and 2021, respectively, as well as non-GAAP adjusted EBITDA of $154.0 million, $146.8 million and $142.5 million in 2023, 2022 and 2021, respectively.
See the "Non-GAAP Measures" section of Item 7.
−Removed: "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 from 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, 2022, 2021 and 2020.
+Added: "Management’s Discussion and Analysis of Financial Condition and Results of Operations" for a discussion of the limitations of non-GAAP adjusted EBITDA and a reconciliation of non-GAAP adjusted EBITDA from 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, 2023, 2022 and 2021.
Our Solutions and Integrated Platforms
Our solutions are designed to make both residential and commercial properties safer, smarter and more efficient.
−Removed: Our technology platforms support all participants in what we refer to as the connected property market.
−Removed: 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.
+Added: Our technology platforms support 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, 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.
21 unchanged sentences
Intelligently automating the security system enhances customer security and drives further user engagement with our smart home systems.
−Removed: Flex IO is a versatile, completely wireless device that extends awareness across a property and to assets in any location.
−Removed: The battery-powered LTE Category M device creates new applications of our technology that existing hub-connected sensors cannot address.
−Removed: 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.
−Removed: Flex IO triggers activity notifications to subscribers as well as video recordings when activity is detected, or an asset is moved.
−Removed: ◦ Connected Car.
−Removed: 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.
−Removed: Subscribers enjoy peace of mind with real-time driver safety alerts, diagnostic alerts and unexpected activity alerts.
−Removed: Fully integrated with the Alarm.com platform, Connected Car provides smarter, more responsive alerts and more intelligent automation than standalone solutions.
Our technology intelligently monitors quality of life through a suite of connected sensors and devices, and delivers proactive insights into activities of daily living.
2 unchanged sentences
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.
−Removed: 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.
+Added: We offer indoor and outdoor video cameras for residential and commercial properties at varying price points so 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.
12 unchanged sentences
From a single screen on the Alarm.com mobile app, subscribers can see and speak with visitors and control their door locks.
+Added: The Alarm.com 750 video doorbell is a battery-free video doorbell that has a wide operating temperature range and includes Alarm.com’s video analytics software package and delivers advance performance specifications, including an expansive field of view and two-megapixel resolution.
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.
+Added: Alarm.com’s battery-powered 780 video doorbell gives service providers a more flexible installation option for challenging installations, particularly in
+Added: international markets where regional wiring standards do not always support wired video doorbells.
+Added: An on-board neural network rapidly identifies people while optimizing energy usage for extended battery life.
◦ Intelligent Integration.
37 unchanged sentences
Subscribers can create multiple geo-fences and customize the opt-in feature to meet their specific needs.
−Removed: ◦ Demand Response Programs .
−Removed: Utilities can reduce or shift power consumption during peak demand periods by accessing connected thermostats and other connected devices and appliances that participate in the utility's program.
−Removed: Managed at scale, these voluntary programs can significantly reduce costs for utilities.
−Removed: 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 proactively protect their property from a full range of water-related damage.
−Removed: Integrated with Alarm.com’s Smart Water Valve + Meter and Water Dragon devices, our solution can monitor water usage, detect both low- and high-volume leaks, alert the subscriber about conditions that can lead to frozen and burst pipes, intelligently manage humidity levels and notify homeowners if a sump pump fails.
+Added: Integrated with Alarm.com’s Smart Water Valve + Meter and Water Dragon devices, our solution can monitor water usage, detect both low- and high-volume leaks, alert the subscriber about conditions that can lead to frozen and burst pipes, intelligently manage
+Added: humidity levels and notify homeowners if a sump pump fails.
The Smart Water Valve + Meter can also automatically shut off the property's water supply when it detects a leak.
4 unchanged sentences
As part of a comprehensive smart energy management solution, solar monitoring gives subscribers the information and insights to reduce overall energy consumption and manage a broad ecosystem of automation devices to compensate when solar production is low, such as automatically raising the thermostat setpoint or turning off lights.
+Added: Demand Response and Virtual Power Plant Programs
+Added: Our EnergyHub subsidiary provides software that utilities can use to reduce or shift power consumption out of peak demand periods or when intermittent renewable energy sources operate below capacity.
+Added: By accessing and intelligently managing connected thermostats and other connected devices and appliances at scale, utilities can significantly reduce costs, transition to renewable energy sources and support the electrification of transportation.
+Added: The EnergyHub SaaS platform provides a comprehensive solution that enables utility customers to voluntarily participate in these programs, aggregates a diverse set of smart thermostats, connected water heaters, residential batteries, electric vehicles and charging equipment, and delivers virtual power plants that utilities can leverage as an enterprise-grade grid resource.
Commercial Solutions
13 unchanged sentences
Commercial subscribers can intelligently monitor customer and employee activity, including occupancy tracking, people counting, queue monitoring, crowd gathering and heat mapping.
−Removed: 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.
+Added: Real-time notifications and activity reporting can help streamline customer flows, reduce wait times, measure the effectiveness of marketing campaigns and enforce occupancy limits.
Perimeter Guard enhances our Business Activity Analytics solution with a layer of proactive deterrence against would-be intruders.
Perimeter Guard can identify a person and automatically respond with audible alerts and flashing LED lights that inform the person that they are being monitored.
+Added: We believe our 2023 acquisition of certain assets of Vintra, Inc., or Vintra, will help to expand our learning program and accelerate deployment of advanced video analytics commercial solutions for the Alarm.com and OpenEye platforms.
◦ Smarter Access Control.
2 unchanged sentences
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.
−Removed: Alarm.com for Business subscribers can also use Smarter Access Control for COVID-19 contact tracing.
−Removed: Expanded search and reporting parameters make it easy for business managers to identify any door, area or floor accessed by an infected employee.
−Removed: Managers can easily search for and identify individuals who may have been exposed, enabling targeted exposure notifications and enhanced risk mitigation.
+Added: ◦ Cell Connector .
+Added: Our Cell Connector for Access Control eliminates the need to have a wired network connection, enabling the ability to install our Access Control solution using cellular 4G LTE in customer locations where network connectivity or reliability is hindered.
◦ Enterprise Dashboard and Multi-site Management.
18 unchanged sentences
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.
−Removed: 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, enterprise commercial and national account customers such as universities, banks, national retail chains and property management companies.
−Removed: 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.
+Added: Our OpenEye subsidiary offers enterprise commercial video management solutions that complement the Alarm.com for Business platform.
+Added: OpenEye expands our market opportunity to address the unique requirements of large, enterprise commercial and national account customers such as universities, banks, national retail chains and property management companies.
+Added: OpenEye software 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:
6 unchanged sentences
Subscribers can create more actionable activity alerts to respond to incidents and quickly find associated video recordings.
+Added: OpenEye's software also works with a wide variety of devices to enable unique solutions.
+Added: For example, environmental sensors can trigger OpenEye alerts and video recording based on events of interest, including new Vaping Alerts for school settings.
+Added: Additionally, OpenEye's Sales Connect solution combines point-of-sale system data with video so subscribers can create custom alerts and conduct forensic searches on detailed transaction data to deliver a more robust solution for significant verticals such as retail, grocery and quick-serve restaurants.
◦ Enterprise-Level Capabilities.
7 unchanged sentences
The integration further unifies intrusion, access control and video solutions to offer a more intelligent and convenient way to manage and secure commercial properties.
−Removed: Shooter Detection Systems expands the platform capabilities we provide to the commercial security market.
−Removed: Our multi-sensor solution provides highly accurate indoor gunshot detection to help alert employees and the public against active shooter threats.
+Added: Shooter Detection Systems, or SDS, expands the platform capabilities we provide to the commercial security market.
+Added: Our multi-sensor solution provides highly accurate indoor gunshot detection to help alert employees, the public and emergency services about active shooter threats.
The solution uses a dual-mode detection technology that combines acoustic sensors with specialized infrared flash detectors, in tandem with proprietary gunshot detection software algorithms to maximize detection without driving false positives.
−Removed: Gunshot sensors communicate to the Guardian Gateway Software, which provides notification pathways to first responders and building occupants, and enables cloud-based capabilities such as the Guardian situational awareness application that tracks and maps gunshot events.
+Added: Through an integration with Alarm.com's Noonlight subsidiary, SDS provides an advanced emergency response solution that enhances situational awareness for first responders during active shooter incidents.
+Added: The solution enables the 911 operators, responding officers, onsite security and building managers to communicate and share information in real-time and view critical contextual data, including the building, room and floor location of gunshot events.
+Added: Beginning in 2023, SDS indoor gunshot detection became available as a SaaS solution integrated with Alarm.com for commercial properties.
+Added: The integrated solution is designed to enable Alarm.com’s service provider partners to bring the SDS solution to market as a SaaS offering with a more accessible price point.
Service Provider Solutions
16 unchanged sentences
These features help to increase accuracy of installations, decrease time spent on-site and reduce support calls and return visits, which saves subscribers and service providers money while increasing subscriber satisfaction.
+Added: ▪ Gopher Info.
+Added: The Gopher Info feature is an artificial intelligence-powered chat bot assistant for technicians and service providers that leverages large language models to improve service provider efficiency and operations, including training, sales, installation and support.
+Added: In response to a question, Gopher Info contextualizes, processes and summarizes information from Alarm.com's extensive database of support content, including installation guides, product summaries, specification sheets, troubleshooting best practices and training materials.
+Added: This resource is accessible through the Alarm.com Partner Portal and the MobileTech application.
▪ 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 during a service call to a customer property.
−Removed: Service providers can establish standard actions for technicians and monitor
−Removed: implementation.
+Added: 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.
16 unchanged sentences
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.
+Added: Monitoring operators can access contextual information and intelligent insights about alarm-related events so they can quickly assess the situation and make more informed decisions about the appropriate level of response.
+Added: The capabilities leverage activity data associated with the alarm event, such as incorrect panel code entries, unlocked doors and video of any person detected at the property.
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.
−Removed: • People Detection for Monitoring Stations.
−Removed: 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.
−Removed: Video clips are sent directly to the monitoring station operator’s interface to help them expedite responses and reduce false dispatches.
+Added: • Visual Verification.
+Added: Our Visual Verification solution empowers monitoring station operators to make more informed decisions and expedite emergency response while supporting service providers.
+Added: With our Visual Verification interface, operators have contextual indicators, live video feeds and Video Analytics tools to help identify if there is a person or a perceived threat at a given location.
+Added: By leveraging multiple data sources to understand the activity surrounding an alarm event, the solution creates a Person On-Site Likelihood Indicator so that the operator may relay this critical information to first responders dispatched to the location.
◦ Business Management.
13 unchanged sentences
Additionally, we offer online courses through a learning management system, enabling our service provider partners to access training on the full suite of Alarm.com solutions anytime.
−Removed: • Customer Connections.
−Removed: We help our service provider partners maximize the value of existing accounts by offering targeted in-app messaging and e-mail communications to existing subscribers.
+Added: • System Upgrades.
+Added: Our Customer Connections solution is designed to maximize the value of existing accounts by offering targeted in-app and e-mail-based upgrade offers to existing subscribers.
These campaigns are designed to increase engagement, drive upsell opportunities and enable referrals for our service provider partners.
3 unchanged sentences
Benefits of Our Solutions
−Removed: 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 IoT, the power of big data and the extensibility of the cloud, makes the connected property possible.
6 unchanged sentences
◦ Reliable Network Communications.
−Removed: 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 cut phone lines or broadband connectivity issues.
+Added: Our platforms utilize a highly secure, highly reliable, dedicated cellular connection which mitigates common vulnerabilities of security systems that are connected via a wired network, such as cut lines or broadband connectivity issues.
◦ Intelligent and Actionable.
10 unchanged sentences
We respect the privacy of our subscribers and do not sell their data.
−Removed: Our reputation is strengthened through our network of over 11,000 service provider partners, who have significant expertise in the delivery of our SaaS platforms and suite of solutions.
+Added: Our reputation is strengthened through our network of service provider partners, who have significant expertise in the delivery of our SaaS platforms and suite of solutions.
Benefits to Service Provider Partners:
8 unchanged sentences
Our cloud-based platforms can help reduce our service provider partners’ service delivery and support costs.
−Removed: Remote Toolkit enables our service provider partners to remotely configure, support
−Removed: and upgrade their customers' hardware or software, eliminating the cost of an in-person service call for many routine support issues.
+Added: 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.
2 unchanged sentences
Device hardware is deeply integrated into our platforms to provide a more cohesive experience than stand-alone products deliver.
−Removed: 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.
+Added: For example, we released the Alarm.com 750 video doorbell, which is a battery-free video doorbell that delivers advance performance specifications, including an expansive field of view and two-megapixel resolution.
Our platforms also support various broadly adopted communications protocols commonly used in many automation devices, including Z-Wave, Wi-Fi and cellular.
7 unchanged sentences
Alarm.com is a pioneer in the intelligently connected property market.
−Removed: Our platforms currently support millions of residential and commercial subscribers and we have over 11,000 service provider partners who market, sell and support Alarm.com solutions.
In 2023, our platforms processed more than 325 billion data points generated by over 150 million connected devices.
5 unchanged sentences
We processed more than 325 billion data points in 2023.
−Removed: As consumer preferences shift towards more proactive, intelligence-based features, we believe that our investments in proprietary analytics, machine learning and artificial intelligence give us a competitive advantage.
+Added: As consumer preferences shift towards more proactive, intelligence-based features, we believe our investments in proprietary analytics, machine learning and artificial intelligence give us a competitive advantage.
◦ Trusted Brand.
−Removed: We believe that our leading position in our space is an indicator that we have developed a trusted brand with service providers and consumers for innovative and reliable technology and service.
+Added: We believe our leading position in our space is an indicator that we have developed a trusted brand with service providers and consumers for innovative and reliable technology and service.
Our iOS and Android mobile apps have each been downloaded millions of times and both apps consistently have impressive user ratings.
1 unchanged sentence
We continue to make significant investments in innovative research and development.
−Removed: Our investment has resulted in 712 issued patents as of December 31, 2022 and numerous patent applications pending which we believe can help ensure that our technology remains competitively differentiated and legally protected.
+Added: Our investment resulted in hundreds of issued patents as of December 31, 2023 and numerous patent applications pending which we believe can help ensure our technology remains competitively differentiated and legally protected.
Growth Strategy
−Removed: We intend to maintain our leadership position by continuing to develop and deploy innovative technologies and by expanding our ecosystem of partners.
+Added: We intend to maintain our leadership position and expand into new market opportunities by continuing to develop and deploy innovative technologies and by expanding our ecosystem of partners.
Our key growth strategies include:
−Removed: ◦ Drive SaaS and license revenue growth by expanding the solutions that our service providers deploy.
−Removed: We will continue to focus on helping our service provider partners succeed in driving adoption of our full suite of services.
−Removed: We offer sales and marketing resources to help our service provider partners become more effective in selling our solutions and we will continue to make significant investments to support our service provider network.
−Removed: In addition, we plan to continue to expand our network of service provider partners.
+Added: ◦ Drive SaaS and license revenue growth by expanding the solutions our service providers deploy.
+Added: We will continue to focus on helping our service provider partners succeed in driving the adoption of our full suite of residential and commercial services.
+Added: We provide sales and marketing resources to help our service provider partners become more effective in selling our expanding range of solutions and we will continue to make significant investments to support our service provider network.
◦ Upgrade traditional security customers to our solutions.
We believe there is a significant opportunity for our service provider partners to expand adoption of our connected solutions within their customer base.
−Removed: We intend to leverage our status as a trusted provider to drive consumer interest in our offerings and enable our service provider partners to upgrade their legacy security customers to our connected property solutions.
+Added: We intend to leverage our
+Added: status as a trusted provider to drive consumer interest in our offerings and enable our service provider partners to upgrade their legacy security customers to our connected property solutions.
◦ Continue to invest in our platforms.
As a pioneer in connected home and business solutions, we have made significant investments in building our platforms for over 20 years.
−Removed: We intend to continue to invest heavily to add
−Removed: additional innovative offerings and broaden our suite of solutions.
+Added: We intend to continue to invest heavily to add additional innovative offerings and broaden our suite of solutions and opportunities in residential, commercial and global markets.
As the market for IoT grows and more devices become connected, we are building technology and partnerships to connect these devices to our platforms.
1 unchanged sentence
We are investing in international expansion because we believe there is a significant global market opportunity for our products and services.
−Removed: Today, our products are currently localized and available in approximately 50 countries outside of North America, including Argentina, Australia, Chile, Colombia, Spain, Sweden, Switzerland, Turkey, the United Kingdom and Uruguay.
+Added: Today, our products are currently localized and available in over 50 countries outside of North America, including Argentina, Australia, Chile, Colombia, Spain, Sweden, Switzerland, Turkey, the United Kingdom and Uruguay.
We intend to continue to grow our number of international subscribers by strengthening our presence in existing markets and expanding to additional markets.
+Added: In 2023, we acquired 100% of the issued and outstanding shares of capital stock of EBS Spółka z ograniczoną odpowiedzialnością, or EBS, an international producer of universal smart communicator devices, headquartered in Warsaw, Poland.
+Added: When fully integrated with the Alarm.com platform, EBS communicators are expected to enable Alarm.com’s services to work with a wide range of legacy security control panels commonly deployed in international markets.
◦ Expand into the commercial market segment.
10 unchanged sentences
Our addressable market consists of both residential and commercial properties.
−Removed: Our residential subscribers are typically owners of single-family homes and our commercial subscribers often include retail businesses, restaurants, schools and universities, commercial facilities and professional offices.
−Removed: We believe there is an opportunity to significantly increase the adoption of our solutions as more residential and commercial property owners adopt intelligently connected property solutions and as the major technology trends of mobile access, the IoT, big data and cloud technology continue to create opportunities to connect people with their properties in new ways.
+Added: Our residential subscribers are typically owners of single-family homes and our commercial subscribers include retail businesses, restaurants, schools and universities, commercial facilities, national chains and professional offices.
+Added: We believe there is an opportunity to significantly increase the adoption of our solutions as more residential and commercial property owners adopt intelligently connected property solutions and as the major technology trends of mobile access, the IoT, cloud technology and artificial intelligence continue to create opportunities to connect people with their properties in new ways.
Our Technology
10 unchanged sentences
Each center is designed to run the entire Alarm.com platform independent of the other.
−Removed: Cybersecurity
−Removed: The solutions we provide rely on technology and data, and cybersecurity is a crucial part of our business.
−Removed: We primarily conduct our business in the United States and are expanding internationally in various other countries.
−Removed: Conducting expanded international operations subjects us to additional risks, including our exposure to cyber-attacks.
−Removed: We dedicate substantial resources to the protection of our data, systems and infrastructure.
−Removed: Managing cybersecurity risk is a top priority that we monitor and review regularly with our Board of Directors.
−Removed: We have implemented and continue to maintain a comprehensive information security program consisting of policies, procedures, and technology designed to maintain the privacy, security and integrity of our data, confidential information, systems
−Removed: and networks.
−Removed: Among other things, the program includes controls designed to limit and monitor access to our systems, networks and data, prevent inappropriate or unauthorized access or modification, and monitor for threats or vulnerability.
−Removed: Additionally, we focus our efforts on education and training for employees, using adaptive multi-factor authentication, emphasizing strong password policies and implementing security controls for contractors.
−Removed: We also have third parties perform penetration tests on IoT devices, customer-facing applications and internal and external cloud environments as well as security assessments of iOS and Android mobile applications.
−Removed: We maintain a disaster recovery solution and implement enhancements as necessary and also use advanced web application firewalls that enable theft prevention and abuse of credentials and sensitive data.
+Added: Alarm.com also relies on third-party technology providers to process
+Added: certain information, such as video.
+Added: In addition, certain of our acquired companies maintain their own technology platform distinct from Alarm.com’s platform.
Hardware and Manufacturing
We are involved in designing and manufacturing various types of hardware that enable our solutions, including:
−Removed: ◦ Cellular Communication Modules.
+Added: ◦ Cellular Communication Modules and Gateways.
We offer cellular communications modules that are tightly integrated with security system control panels, sensors and other devices.
+Added: We also offer fully integrated cellular gateways.
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.
−Removed: 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.
+Added: All of our modules and gateways, 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 monitored property and our cloud platforms.
The modules run our proprietary firmware and enable:
5 unchanged sentences
◦ Shooter Detection Systems.
−Removed: T he Guardian system from Shooter Detection Systems includes proprietary, dual-mode gunshot sensors that are installed inside the subscriber's property to help protect people against active shooter threats.
+Added: The Guardian system from Shooter Detection Systems includes proprietary, dual-mode gunshot sensors that are installed inside the subscriber's property to help protect people against active shooter threats.
Each gunshot sensor uses a dual-mode detection technology that combines acoustic sensors with specialized infrared flash detectors.
1 unchanged sentence
Gunshot sensors communicate to the Guardian Gateway Software, which provides notification pathways to first responders and building occupants, and enables cloud-based capabilities such as the Guardian situational awareness application that tracks and maps gunshot events.
−Removed: ◦ Video Cameras .
−Removed: We offer a suite of high definition, Internet Protocol, video cameras and video doorbells to enable our video monitoring services.
+Added: Beginning in 2023, Shooter Detection Systems indoor gunshot detection became available as a SaaS solution integrated with Alarm.com for commercial properties.
+Added: The integrated solution allows subscribers to monitor and track the location of gunshots, quickly view videos of the time and place that gunshots occurred and share critical situational awareness information with first responders with no onsite software installation required.
+Added: ◦ Video Cameras and Doorbells .
+Added: We offer a full range of high-definition video cameras and video doorbells enabled for Internet Protocol-based 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.
12 unchanged sentences
Both devices can identify low and high-volume water leaks and constantly monitor overall water use and current usage rates in homes and businesses.
−Removed: Deep integration with the
−Removed: Alarm.com platform leverages intelligence and insights to help reduce the risk of losses from water emergencies, while also improving water conservation efforts.
−Removed: The Smart Water Valve + Meter can automatically shut off the property’s water supply when a leak is detected.
+Added: 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.
+Added: The Smart Water Valve + Meter can automatically shut off the property’s
+Added: water supply when a leak is detected.
Water Dragon is an easy-to-install option that clamps onto the main water line and uses ultrasonic technology to detect unexpected water activity.
6 unchanged sentences
Our solutions are sold, installed, and serviced by a network of independent licensed, professional service provider partners.
−Removed: Our channel network currently consists of over 11,000 active service provider partners, including smaller local providers, larger regional providers and national service providers with thousands of employees.
+Added: Our channel network of active service provider partners includes smaller local providers, larger regional providers and national service providers.
We have also seen growth in other areas of our channel network, including new providers in the intelligent automation, HVAC, property management and insurance markets.
1 unchanged sentence
We also believe that the combination of our solutions and our service provider partners’ expertise is the most effective way to drive mass market adoption of the intelligently connected property.
−Removed: The traditional security and home automation market is highly fragmented with up to approximately 15,000 security service providers nationally.
+Added: The traditional security and home automation market is highly fragmented.
According to the Barnes Buchanan 2024 Security Alarm Industry Overview and Update report, the top 5 dealers represented approximately 35% of all industry recurring monthly revenue in 2022.
1 unchanged sentence
ADT LLC represented greater than 15% but not more than 20% of our revenue in each of 2021, 2022 and 2023.
−Removed: Our platforms currently support millions of residential and commercial subscribers.
−Removed: We define the number of subscribers as the number of residential or commercial properties to which we are delivering at least one of our solutions.
−Removed: A subscriber who subscribes to one of our service level packages as well as one or more of our a la carte add-ons is counted as one subscriber.
−Removed: Our number of subscribers does not include the customers of our service provider partners to whom we license our intellectual property, as they do not utilize one of our SaaS platforms.
+Added: We define subscribers as residential or commercial properties to which we are delivering at least one of our solutions.
+Added: A single property for which we are providing one of our service level packages as well as one or more of our a la carte add-ons is counted as one subscriber.
+Added: Our subscribers do not include the customers of our service provider partners to whom we license our intellectual property, as they do not utilize one of our SaaS platforms.
Our subscriber acquisition cost payback period has historically been one year or less.
14 unchanged sentences
To that end, subscribers occasionally reach us directly with support needs and we either assist the subscriber directly or, when appropriate, route the subscriber to the appropriate service provider partner for additional assistance.
−Removed: We offer high-quality support to our service providers via phone, web ticketing and email.
+Added: We offer high-quality support to our service providers via phone, chat, web ticketing and email.
With every interaction, our team is committed to exceptional customer satisfaction and industry-leading response times.
31 unchanged sentences
• brand awareness and reputation.
−Removed: We believe that we compete favorably with respect to each of these factors.
−Removed: Additionally, we believe that our cloud-based software platforms, intelligently connected property solutions, and proven scalability help further differentiate us from competitors.
+Added: We believe we compete favorably with respect to each of these factors.
+Added: Additionally, we believe our cloud-based software platforms, intelligently connected property solutions, and proven scalability help further differentiate us from competitors.
Nevertheless, our competitors may have substantially greater financial, technical and other resources, greater brand recognition, larger sales and marketing budgets and broader distribution channels than we do.
2 unchanged sentences
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.
−Removed: As of December 31, 2022, we owned 666 issued United States utility patents, one issued United States design patent, 10 issued Canadian patents, 24 issued Australian patents, among others, and these patents are scheduled to expire between 2024 and 2041.
−Removed: We continue to broaden our intellectual property portfolio and file patent applications and as of December 31, 2022, we had 268 pending utility patent applications and 41 pending provisional patent applications filed in the United States.
−Removed: We also had three pending international patent applications and 234 international patent applications pending under the Patent Cooperation Treaty.
−Removed: The claims for which we have sought patent protection apply to both our platforms and solutions.
−Removed: Our patent and patent applications generally apply to the features and functions of our platforms, and solutions and the applications associated with our platforms.
−Removed: We also have, and may be required to seek, licenses under patents or intellectual property rights owned by third parties, including open-source software and other commercially available software.
+Added: As of December 31, 2023, we owned 761 issued United States utility patents, one issued United States design patent and 152 issued international patents.
+Added: We continue to broaden our intellectual property portfolio and file patent applications and as of December 31, 2023, we had 210 pending utility patent applications and six pending provisional patent applications filed in the United States.
+Added: We also had 152 pending international patent applications and 17 international patent applications pending under the Patent Cooperation Treaty.
+Added: The claims for which we have sought patent protection apply to a wide array of our products and services, including those of our subsidiaries and acquired businesses.
+Added: Our portfolio of patents and patent applications applies broadly to the features and functionality of the various technology platforms we maintain as well as potential new products, services and offerings.
+Added: We also have, and may be required to seek in the future, licenses under patents or intellectual property rights owned by third parties, including open-source software and other commercially available software.
We also rely on several registered and unregistered trademarks to protect our brand.
−Removed: We have 34 registered trademarks in the United States, including Alarm.com and the Alarm.com logo and design, 12 registered trademarks in Canada, seven in the United Kingdom and six in the European Union, among others.
+Added: We have 39 registered trademarks in the United States, including Alarm.com and the Alarm.com logo and design, 11 registered trademarks in Canada, nine in the United Kingdom and seven 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.
2 unchanged sentences
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.
−Removed: 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.
+Added: In the future, we, or our service providers or subscribers, may be the subject of legal proceedings alleging our solutions or underlying technology infringe or violate the intellectual property rights of others.
Environmental, Social and Corporate Governance Matters
Environmental
−Removed: To operate long-term, we need to ensure that our local communities and the natural environment are thriving.
+Added: To operate long-term, we need to ensure 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, solar monitoring solutions, Smart Water Valve + Meter device and advanced functionality within the Alarm.com app.
−Removed: Our demand response programs manage over 900,000 connected devices for more than 60 energy utilities in North America.
+Added: Our demand response programs manage over 1.2 million connected devices for more than 60 energy utilities in North America.
These programs support energy utilities as they pursue aggressive clean energy goals.
3 unchanged sentences
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.
−Removed: For example, a homeowner can turn on the fan,
−Removed: raise or lower shades, turn on or off lights and adjust the thermostat with a single command.
+Added: 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.
−Removed: Our Smart Water Valve + Meter device is part of a comprehensive water management solution.
+Added: Our Smart Water Valve + Meter and Water Dragon devices are part of a comprehensive water management solution.
Two on-board flow sensors monitor water usage to facilitate water conservation behavior.
6 unchanged sentences
We have also replaced many of our paper manuals with online guides.
−Removed: The Sustainability Team has also promoted community events to help increase awareness about sustainability and the environment, including tree planting and park cleanup events.
+Added: The Sustainability Team has also helped establish a composting program and a community garden for employees at our headquarters in Tysons, Virginia, and has promoted community events to help increase awareness about sustainability and the environment, including tree planting and park cleanup events.
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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
+Added: We believe recruiting from the widest available talent pool, and then facilitating collaboration among people of all experiences and backgrounds enhances our ability to innovate.
+Added: To help achieve this objective, our suite of employee community groups offers identity- and interest-based outlets where employees can come together over shared interests, seek support and professional mentorship, and develop the relationships that help them thrive on their teams and in the broader workplace.
+Added: In 2022, we launched Belonging, an employee-led community group that fosters inclusivity and offers community events and learning opportunities centered around promoting diversity, equity, inclusion and belonging in the workplace.
+Added: Belonging also partners with corporate communications to highlight and recognize important cultural and diverse observances.
+Added: We continued our Women in Tech group, aimed at empowering women to grow their technical and professional skillsets and expertise.
+Added: Last year, Women in Tech launched its Allyship arm, which strives to promote greater allyship towards women and other underrepresented people in tech through education.
We also developed 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.
2 unchanged sentences
We also provide additional healthcare benefits to employees, making it safer and more convenient to get the care they need remotely.
−Removed: In addition to primary care, these additional remote healthcare benefits include physical therapy, mental health services and health coaching.
+Added: In addition to primary care, these additional remote healthcare benefits include physical therapy, access to mental health services and health coaching treatment for acute and chronic pain.
We also provide free access to an app that promotes wellness through meditation and provides employees with hundreds of guided exercises for meditation, sleep, focus and movement.
4 unchanged sentences
Our Human Capital Resources
−Removed: As of December 31, 2022, we had 1,733 full-time employees, including 511 in sales and marketing, 1,004 in research and development and 218 in a general and administrative capacity.
+Added: As of December 31, 2023, we had 1,989 full-time employees, including 565 in sales and marketing, 1,118 in research and development, 229 in a general and administrative capacity and 77 who manufacture hardware for our suite of IoT solutions.
As of December 31, 2023, we had 1,776 employees in our Alarm.com segment and 213 employees in our Other segment.
1 unchanged sentence
None of our employees are covered by collective bargaining agreements and we consider our relations with our employees to be good.
−Removed: We recognize that attracting, motivating and retaining talent at all levels is critical to continuing our success.
−Removed: By improving employee retention and engagement, we also improve our ability to support our service provider partners and protect the long-term interests of our stockholders.
+Added: We believe attracting, motivating and retaining talent at all levels is critical to continuing our success.
+Added: By improving employee retention and engagement, we believe we are also improving our ability to support our service provider partners and protect the long-term interests of our stockholders.
We invest in our employees through high-quality benefits and various health and wellness initiatives and offer competitive compensation packages, ensuring fairness in internal compensation practices.
1 unchanged sentence
We utilize both instructor-led training and online learning to provide custom training courses to ensure our sales and services teams stay up-to-date on our products and service offerings.
−Removed: For our talent pipeline development,
−Removed: we work closely with individual departments to provide training and hands-on support for managers and leaders, to assess talent, identify development opportunities and discuss succession planning.
+Added: For our talent pipeline development, we work closely with individual departments to provide training and hands-on support for managers and leaders, to assess talent,
+Added: identify development opportunities and discuss succession planning.
In addition, we regularly conduct employee surveys to gauge employee engagement and identify areas of focus.
10 unchanged sentences
We completed our initial public offering in July 2015 and our common stock is listed on The Nasdaq Global Select Market under the symbol "ALRM."
+Added: Historically, we have completed acquisitions of complementary companies or their technologies.
+Added: Some of our prior acquisitions of companies include:
+Added: • On October 21, 2019, we acquired 85% of the issued and outstanding capital stock of PC Open Incorporated, a Washington corporation, doing business as OpenEye.
+Added: OpenEye provides cloud-managed video surveillance solutions for the enterprise commercial market.
+Added: • On December 14, 2020, we acquired 100% of the issued and outstanding ownership interest units of Shooter Detection Systems, LLC, or SDS.
+Added: SDS is a provider of an indoor gunshot detection solution that helps alert employees and the public against active shooter threats.
+Added: • On September 23, 2022, we acquired 85% of the issued and outstanding shares of capital stock of Noonlight, Inc., or Noonlight.
+Added: Noonlight provides a connected safety and event management software and services platform that enables new applications and provides enhanced emergency response capabilities.
+Added: We believe the acquisition of Noonlight will enhance our comprehensive suite of interactive cloud-based services and allow us to expand markets for emergency response services as well as accelerate innovation in those services.
+Added: • On January 18, 2023, we acquired 100% of the issued and outstanding shares of capital stock of EBS, an international producer of universal smart communicator devices, headquartered in Warsaw, Poland.
+Added: We believe this acquisition will assist in the continued expansion of our international operations as well as benefit our supply chain operations.
+Added: Some of our prior asset acquisitions include:
• On January 1, 2017, we acquired certain assets of ObjectVideo, Inc., or ObjectVideo, that constituted a business now called ObjectVideo Labs, LLC, or ObjectVideo Labs, including products, technology portfolio and engineering team.
3 unchanged sentences
Piper provides an all-in-one video and home automation hub.
−Removed: On October 21, 2019, we acquired 85% of the issued and outstanding capital stock of PC Open Incorporated, a Washington corporation, doing business as OpenEye.
−Removed: OpenEye provides cloud-managed video surveillance solutions for the enterprise commercial market.
• In September 2019, we acquired certain assets from an unrelated third party.
2 unchanged sentences
We believe the acquisitions of the IPR&D will further our commitment to make significant investments in innovative research and development in the intelligently connected property market to broaden our suite of solutions as well as strengthen our smart intercom capability.
−Removed: On December 14, 2020, we acquired 100% of the issued and outstanding ownership interest units of Shooter Detection Systems, LLC , or SDS.
−Removed: 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.
1 unchanged sentence
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.
−Removed: On September 23, 2022, we acquired 85% of the issued and outstanding shares of capital stock of Noonlight, Inc., or Noonlight.
−Removed: Noonlight provides a connected safety and event management software and services platform that enables new applications and provides enhanced emergency response capabilities.
−Removed: We believe the acquisition of Noonlight will enhance our comprehensive suite of interactive cloud-based services and allow us to expand markets for emergency response services as well as accelerate innovation in those services.
+Added: • On April 21, 2023, we acquired certain assets of Vintra, Inc., or Vintra.
+Added: Substantially all of the acquired assets consisted of developed technology.
+Added: We believe the acquisition of the developed technology will expand Alarm.com's learning program and accelerate deployment of advanced video analytics solutions for the Alarm.com and OpenEye platforms.
Available Information
8 unchanged sentences
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.