Smart property technology provider Alarm.com (NASDAQ: ALRM) will be reporting earnings this Thursday after the bell. Here’s what you need to know.
Alarm.com beat analysts’ revenue expectations by 4.3% last quarter, reporting revenues of $254.3 million, up 8.8% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ billings estimates.
Is Alarm.com a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Alarm.com’s revenue to grow 4.4% year on year to $251 million, slowing from the 8.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.61 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Alarm.com has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2% on average.
Looking at Alarm.com’s peers in the software-as-a-service segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Manhattan Associates delivered year-on-year revenue growth of 3.4%, beating analysts’ expectations by 1.6%, and Pegasystems reported revenues up 17.3%, topping estimates by 8.5%. Manhattan Associates traded down 5% following the results while Pegasystems was up 15%.
Read our full analysis of Manhattan Associates’s results here and Pegasystems’s results here.
Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. While some of the software-as-a-service stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.2% on average over the last month. Alarm.com is down 7.3% during the same time and is heading into earnings with an average analyst price target of $68.71 (compared to the current share price of $48.51).
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