ALARM.COM HOLDINGS, INC., 10-Q filed on 5/10/2024
Quarterly Report
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Cover Page - shares
 3 Months Ended
Mar. 31, 2024
May 02, 2024
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2024  
Document Transition Report false  
Entity File Number 001-37461  
Entity Registrant Name ALARM.COM HOLDINGS, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 26-4247032  
Entity Address, Address Line One 8281 Greensboro Drive  
Entity Address, Address Line Two Suite 100  
Entity Address, City or Town Tysons  
Entity Address, State or Province VA  
Entity Address, Postal Zip Code 22102  
City Area Code 877  
Local Phone Number 389-4033  
Title of 12(b) Security Common Stock, $0.01 par value per share  
Trading Symbol ALRM  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   50,188,716
Entity Central Index Key 0001459200  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus (Q1,Q2,Q3,FY) Q1  
Amendment Flag false  
v3.24.1.u1
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Revenue:    
Total revenue $ 223,283 $ 209,716
Cost of revenue:    
Total cost of revenue [1] 76,515 76,172
Operating expenses:    
Sales and marketing 25,454 26,645
General and administrative 29,296 28,499
Research and development 65,956 61,908
Amortization and depreciation 7,337 7,673
Total operating expenses 128,043 124,725
Operating income 18,725 8,819
Interest expense (796) (868)
Interest income 8,540 5,182
Other expense, net (318) (148)
Income before income taxes 26,151 12,985
Provision for / (benefit from) income taxes 2,747 (1,222)
Net income 23,404 14,207
Net loss attributable to redeemable noncontrolling interests 191 209
Net income attributable to common stockholders $ 23,595 $ 14,416
Net income per share:    
Basic (in dollars per share) $ 0.47 $ 0.29
Diluted (in dollars per share) $ 0.44 $ 0.28
Weighted average common shares outstanding:    
Basic (in shares) 49,963,265 49,584,890
Diluted (in shares) 55,047,087 54,296,321
SaaS and license revenue    
Revenue:    
Total revenue $ 150,344 $ 135,394
Cost of revenue:    
Total cost of revenue [1] 20,428 19,583
Hardware and other revenue    
Revenue:    
Total revenue 72,939 74,322
Cost of revenue:    
Total cost of revenue [1] $ 56,087 $ 56,589
[1] Exclusive of amortization and depreciation shown in operating expenses below.
v3.24.1.u1
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Statement of Comprehensive Income [Abstract]    
Net income $ 23,404 $ 14,207
Other comprehensive (loss) / income    
Foreign currency translation adjustment (147) 170
Total other comprehensive (loss) / income (147) 170
Comprehensive income 23,257 14,377
Comprehensive loss attributable to redeemable noncontrolling interests 191 209
Comprehensive income attributable to common stockholders $ 23,448 $ 14,586
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Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 747,877 $ 696,983
Accounts receivable, net of allowance for credit losses of $4,054 and $3,864, and net of allowance for product returns of $2,595 and $2,279 as of March 31, 2024 and December 31, 2023, respectively 128,451 130,626
Inventory 85,723 96,140
Other current assets, net 35,812 33,031
Total current assets 997,863 956,780
Property and equipment, net 55,365 54,164
Intangible assets, net 74,358 78,564
Goodwill 154,433 154,498
Deferred tax assets 145,258 131,815
Operating lease right-of-use assets 24,324 24,242
Other assets, net of allowance for credit losses of $4,003 and $5 as of March 31, 2024 and December 31, 2023, respectively 35,381 39,500
Total assets 1,486,982 1,439,563
Current liabilities:    
Accounts payable, accrued expenses and other current liabilities 137,551 124,475
Accrued compensation 20,418 28,626
Deferred revenue 11,125 10,193
Operating lease liabilities 12,101 12,043
Total current liabilities 181,195 175,337
Deferred revenue 13,087 12,692
Convertible senior notes, net 494,305 493,515
Operating lease liabilities 20,886 20,468
Other liabilities 11,703 12,697
Total liabilities 721,176 714,709
Commitments and contingencies (Note 12)
Redeemable noncontrolling interests 37,712 36,308
Stockholders’ equity    
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding as of March 31, 2024 and December 31, 2023 0 0
Common stock, $0.01 par value, 300,000,000 shares authorized; 52,113,344 and 51,888,838 shares issued; and 50,092,681 and 49,868,175 shares outstanding as of March 31, 2024 and December 31, 2023, respectively 521 519
Additional paid-in capital 547,832 531,734
Treasury stock, at cost; 2,020,663 shares as of March 31, 2024 and December 31, 2023 (111,291) (111,291)
Accumulated other comprehensive income 1,251 1,398
Retained earnings 289,781 266,186
Total stockholders’ equity 728,094 688,546
Total liabilities, redeemable noncontrolling interests and stockholders’ equity $ 1,486,982 $ 1,439,563
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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Accounts receivable, allowance for credit losses $ 4,054 $ 3,864
Allowance for product returns 2,595 2,279
Other assets, allowance for credit loss $ 4,003 $ 5
Preferred stock, par value ( in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized (in shares) 10,000,000 10,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value ( in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 300,000,000 300,000,000
Common stock, shares issued (in shares) 52,113,344 51,888,838
Common stock, shares outstanding (in shares) 50,092,681 49,868,175
Treasury stock, shares repurchased (in shares) 2,020,663 2,020,663
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Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Cash flows from / (used in) operating activities:    
Net income $ 23,404 $ 14,207
Adjustments to reconcile net income to net cash flows from / (used in) operating activities:    
Provision for credit losses on accounts receivable 254 540
Reserve for product returns 1,149 1,151
Provision for credit losses on notes receivable 3,998 0
Amortization on patents and tooling 220 316
Amortization and depreciation 7,337 7,673
Amortization of debt issuance costs 790 784
Amortization of operating leases 2,976 2,750
Deferred income taxes (13,443) (26,895)
Change in fair value of contingent liability 31 13
Stock-based compensation 11,268 12,686
Changes in operating assets and liabilities (net of business acquisitions):    
Accounts receivable 826 (1,843)
Inventory 10,382 377
Other current and non-current assets (962) (689)
Accounts payable, accrued expenses and other current liabilities 4,524 (9,617)
Deferred revenue 1,327 1,899
Operating lease liabilities (3,221) (3,362)
Other liabilities (1,007) (3,511)
Cash flows from / (used in) operating activities 49,853 (3,521)
Cash flows used in investing activities:    
Business acquisition, net of cash acquired 0 (9,696)
Additions to property and equipment (3,066) (2,398)
Issuances of notes receivable (500) (300)
Receipt of payments on notes receivable 13 13
Capitalized software development costs (408) (362)
Purchase of investment in unconsolidated entity 0 (200)
Cash flows used in investing activities (3,961) (12,943)
Cash flows from financing activities:    
Payments of acquired debt 0 (469)
Issuances of common stock from equity-based plans 6,356 1,311
Cash flows from financing activities 6,356 842
Effect of exchange rate changes on cash, cash equivalents and restricted cash (180) 13
Net increase / (decrease) in cash, cash equivalents and restricted cash 52,068 (15,609)
Cash, cash equivalents and restricted cash at beginning of the period 701,079 622,879
Cash, cash equivalents and restricted cash at end of the period 753,147 607,270
Reconciliation of cash, cash equivalents and restricted cash:    
Cash and cash equivalents 747,877 606,428
Restricted cash included in other current assets and other assets 5,270 842
Total cash, cash equivalents and restricted cash $ 753,147 $ 607,270
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Condensed Consolidated Statements of Equity - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-In Capital
Treasury Stock
Accumulated Other Comprehensive Income / (Loss)
Retained Earnings
Beginning balance at Dec. 31, 2022 $ 23,988          
Increase (Decrease) in Temporary Equity [Roll Forward]            
Accretion adjustments of redeemable noncontrolling interest to redemption value 2,061          
Net income / (loss) attributable to common stockholders (209)          
Ending balance at Mar. 31, 2023 25,840          
Beginning balance (in shares) at Dec. 31, 2022   50,985,000        
Beginning balance at Dec. 31, 2022 598,859 $ 510 $ 497,199 $ (83,993) $ 0 $ 185,143
Beginning balance (in shares) at Dec. 31, 2022       1,533,000    
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued in connection with equity-based plans (in shares)   270,000        
Common stock issued in connection with equity-based plans 1,311 $ 3 1,308      
Stock-based compensation expense 12,686   12,686      
Accretion adjustments of redeemable noncontrolling interest to redemption value (2,061)   (2,061)      
Net income / (loss) attributable to common stockholders 14,416         14,416
Other comprehensive (loss) income 170       170  
Ending balance (in shares) at Mar. 31, 2023   51,255,000        
Ending balance at Mar. 31, 2023 625,381 $ 513 509,132 $ (83,993) 170 199,559
Ending balance (in shares) at Mar. 31, 2023       1,533,000    
Beginning balance at Dec. 31, 2023 36,308          
Increase (Decrease) in Temporary Equity [Roll Forward]            
Accretion adjustments of redeemable noncontrolling interest to redemption value 1,595          
Net income / (loss) attributable to common stockholders (191)          
Ending balance at Mar. 31, 2024 $ 37,712          
Beginning balance (in shares) at Dec. 31, 2023 51,888,838 51,889,000        
Beginning balance at Dec. 31, 2023 $ 688,546 $ 519 531,734 $ (111,291) 1,398 266,186
Beginning balance (in shares) at Dec. 31, 2023 2,020,663     2,021,000    
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Common stock issued in connection with equity-based plans (in shares)   224,000        
Common stock issued in connection with equity-based plans $ 6,356 $ 2 6,354      
Stock-based compensation expense 11,339   11,339      
Accretion adjustments of redeemable noncontrolling interest to redemption value (1,595)   (1,595)      
Net income / (loss) attributable to common stockholders 23,595         23,595
Other comprehensive (loss) income $ (147)       (147)  
Ending balance (in shares) at Mar. 31, 2024 52,113,344 52,113,000        
Ending balance at Mar. 31, 2024 $ 728,094 $ 521 $ 547,832 $ (111,291) $ 1,251 $ 289,781
Ending balance (in shares) at Mar. 31, 2024 2,020,663     2,021,000    
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Organization
 3 Months Ended
Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization Organization
Alarm.com Holdings, Inc. (referred to herein as Alarm.com, the Company, or we) is the leading platform for the intelligently connected property. 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. Our solutions are delivered through an established network of trusted service provider partners, who are experts at selling, installing and supporting our solutions. We derive revenue from the sale of our cloud-based Software-as-a-Service, or SaaS, services, license fees, software, hardware, activation fees and other revenue. Our fiscal year ends on December 31.
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Basis of Presentation and Summary of Significant Accounting Policies
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Summary of Significant Accounting Policies
Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include our accounts and those of our majority-owned and controlled subsidiaries after elimination of intercompany accounts and transactions.

These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP, for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission, or SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual financial statements. They should be read together with our audited consolidated financial statements and related notes thereto for the year ended December 31, 2023 included in our Annual Report on Form 10-K filed with the SEC on February 22, 2024, or the Annual Report. The condensed consolidated balance sheet as of December 31, 2023 was derived from our audited financial statements but does not include all disclosures required by GAAP for annual financial statements.

In the opinion of management, these condensed consolidated financial statements include all normal recurring adjustments necessary for a fair statement of the results of operations, financial position and cash flows for the periods presented. However, the global economy, credit markets and financial markets have and may continue to experience significant volatility as a result of significant worldwide events, including public health crises, and geopolitical upheaval, such as Russia’s incursion into Ukraine and the conflict between Israel and regional adversaries, disruptions to global supply chains, rising interest rates, risk of recession and inflation (collectively, the Macroeconomic Conditions). These Macroeconomic Conditions have and may continue to create supply chain disruptions, inventory disruptions, and fluctuations in economic growth, including fluctuations in employment rates, inflation, energy prices and consumer sentiment. It remains difficult to assess or predict the ultimate duration and economic impact of the Macroeconomic Conditions. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results that can be expected for our entire fiscal year ending December 31, 2024, which is increasingly true in periods of extreme uncertainty, such as the uncertainty caused by the Macroeconomic Conditions. Prolonged uncertainties could cause further economic slowdown or cause other unpredictable events, each of which could adversely affect our business, results of operations or financial condition.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. As of the date of issuance of these financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, assumptions and judgments or revise the carrying value of our assets or liabilities. However, our estimates, judgments and assumptions are continually evaluated based on available information and experience and may change as new events occur and additional information is obtained. Because of the use of estimates inherent in the financial reporting process and in light of the continuing uncertainty arising from the Macroeconomic Conditions, actual results could differ from those estimates and any such differences may be material. Estimates are used when accounting for revenue recognition, allowances for credit losses, allowance for hardware returns, estimates of obsolete inventory, long-term incentive compensation, the lease term and incremental borrowing rates for leases, stock-based compensation, income taxes, legal reserves, goodwill, intangible assets and other long-lived assets.

Significant Accounting Policies

There have been no material changes to our significant accounting policies during the three months ended March 31, 2024 from those disclosed in our Annual Report.
Recent Accounting Pronouncements

Adopted

During the three months ended March 31, 2024, we did not adopt any new accounting pronouncements.

Not Yet Adopted

On November 27, 2023, the Financial Accounting Standards Board, or FASB, issued ASU 2023-07, "Segment Reporting (Topic 280),” which revises the disclosure requirements about a public entity’s reportable segments and a reportable segment’s expenses. This amendment requires a public entity to (i) disclose significant segment expense that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, (ii) disclose an amount for other segment items by reportable segment and a description of its composition and (iii) provide annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods. The amendment is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. This amendment is required to be applied retrospectively to all prior periods presented. We are currently assessing the impact this pronouncement will have on our consolidated financial statement disclosures.

On December 14, 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740)," which requires additional annual disclosures regarding specific categories in the income tax rate reconciliation as well additional information for reconciling items that meet a quantitative threshold. This amendment also requires annual disclosures regarding the amount of income taxes paid, including income taxes paid disaggregated by (i) federal, state and foreign taxes as well as (ii) individual jurisdictions in which income taxes paid is equal to or greater than five percent of total income taxes paid. Additionally, this amendment requires annual disclosures for income from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign as well as income tax expense (or benefit) disaggregated between federal, state and foreign. The amendment is effective for annual periods beginning after December 15, 2024, and early adoption is permitted. This amendment should be applied on a prospective basis, but retrospective application is permitted. We are currently assessing the impact this pronouncement will have on our consolidated financial statement disclosures.
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Revenue from Contracts with Customers
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Contract Assets

The changes in our contract assets are as follows (in thousands):
Three Months Ended
March 31,
20242023
Beginning of period balance$9,099 $13,975 
Commission costs and upfront payments to a customer capitalized in period3,112 1,673 
Amortization of contract assets(1,745)(1,769)
End of period balance$10,466 $13,879 

Contract Liabilities

The changes in our contract liabilities are as follows (in thousands):
Three Months Ended
March 31,
20242023
Beginning of period balance$22,885 $18,332 
Revenue deferred in period6,424 5,940 
Revenue recognized from amounts included in contract liabilities(5,097)(4,041)
End of period balance$24,212 $20,231 
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Accounts Receivable, Net
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Accounts Receivable, Net Accounts Receivable, Net
The components of accounts receivable, net are as follows (in thousands):
March 31,
2024		December 31,
2023
Accounts receivable$135,100 $136,769 
Allowance for credit losses(4,054)(3,864)
Allowance for product returns(2,595)(2,279)
Accounts receivable, net$128,451 $130,626 

For the three months ended March 31, 2024, we recorded a provision for credit losses of $0.3 million, as compared to $0.5 million for the same period in the prior year.

For the three months ended March 31, 2024, we recorded a reserve for product returns of $1.1 million in our hardware and other revenue, as compared to $1.2 million for the same period in the prior year. Historically, we have not experienced write-offs for uncollectible accounts or sales returns that have differed significantly from our estimates.

Allowance for Credit Losses - Accounts Receivable

The allowance for credit losses is a valuation account that is deducted from the accounts receivable and notes receivable amortized cost basis (see Note 8) to present the net amount expected to be collected. We estimate the allowance balance by applying the loss-rate method using relevant available information from internal and external sources, including historical write-off activity, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for changes in economic conditions, such as changes in unemployment rates. We use projected economic conditions over a period no more than twelve months based on data from external sources. For periods beyond the twelve-month reasonable and supportable forecast period, we revert to historical loss information immediately.

The allowance for credit losses is measured on a pooled basis when similar risk characteristics exist. When assessing whether to measure certain financial assets on a pooled basis, we considered various risk characteristics, including the financial asset type, size and the historical or expected credit loss pattern. We identified the following two portfolio segments for our accounts receivable: (i) outstanding accounts receivable balances within Alarm.com and certain subsidiaries and (ii) outstanding accounts receivable balances within all other subsidiaries. There were no changes to our portfolio segments for our accounts receivable during the three months ended March 31, 2024, and no changes to our policies or practices that influenced our estimate of expected credit losses for accounts receivable. Additionally, there were no significant changes in the amount of accounts receivable write-offs during the three months ended March 31, 2024, as compared to historical periods.

Expected credit losses are estimated over the contractual term of the financial assets and we adjust the term for expected prepayments when appropriate. For the three months ended March 31, 2024 and 2023, we recorded credit loss expense for accounts receivable and notes receivable of $4.0 million and $0.5 million, respectively, in general and administrative expense in our condensed consolidated statements of operations. The contractual term excludes expected extensions, renewals and modifications because extension and renewal options are unconditionally cancelable by us. Write-offs of the amortized cost basis are recorded to the allowance for credit losses. Any subsequent recoveries of previously written off balances are recorded as a reduction to credit loss expense.

The changes in our allowance for credit losses for accounts receivable are as follows (in thousands):
Three Months Ended
March 31, 2024		Three Months Ended
March 31, 2023
 Alarm.com
and Certain
Subsidiaries		All Other
Subsidiaries		 Alarm.com
and Certain
Subsidiaries		All Other
Subsidiaries
Beginning of period balance$(3,723)$(141)$(2,755)$(80)
(Provision for) / recovery of expected credit losses(287)33 (506)(34)
Write-offs44 20 159 17 
End of period balance$(3,966)$(88)$(3,102)$(97)
v3.24.1.u1
Inventory
 3 Months Ended
Mar. 31, 2024
Inventory Disclosure [Abstract]  
Inventory Inventory
The components of inventory are as follows (in thousands):
March 31,
2024		December 31,
2023
Raw materials$28,237 $30,452 
Work-in-process699 275 
Finished goods56,787 65,413 
Total inventory$85,723 $96,140 

Inventory values are net of a write-down of $1.4 million during the year ended December 31, 2023, which is reflected in cost of hardware and other revenue within our condensed consolidated statements of operations. The inventory write-down was the result of a lower of cost or net realizable value adjustment for finished goods.
v3.24.1.u1
Acquisitions
 3 Months Ended
Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]  
Acquisitions Acquisitions
Asset Acquisition

On April 21, 2023, Alarm.com Incorporated, one of our wholly-owned subsidiaries, acquired certain assets of Vintra, Inc., or Vintra. Substantially all of the acquired assets consisted of developed technology. 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.

In consideration for the purchase of the acquired assets, we paid $5.5 million in cash on April 21, 2023, after deducting $0.3 million related to the settlement of an outstanding loan issued to Vintra during March 2023 and $1.0 million related to an agreed holdback provision. The holdback is expected to be paid by the third quarter of 2024, subject to offset for any indemnification obligations. Additionally, we incurred $0.4 million in direct transaction costs related to legal fees during 2023 that were capitalized as a component of the consideration transferred. The $7.1 million purchase price consideration allocated to developed technology was recorded as an intangible asset at the time of the asset acquisition and is being amortized on a straight-line basis over an estimated useful life of five years. The remaining $0.1 million purchase price consideration was allocated to property and equipment.

Acquisition of a Business - EBS

On January 18, 2023, one of our wholly-owned subsidiaries 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. We believe this acquisition will assist in the continued expansion of our international operations as well as benefit our supply chain operations.
In consideration for the purchase of EBS, we paid $9.8 million in cash on January 18, 2023, after deducting $2.2 million related to agreed holdback provisions. An earn-out up to an additional $2.5 million is payable if certain performance targets are met, which was initially recorded at the acquisition date fair value of $2.0 million. The acquisition was accounted for as a business combination within our Alarm.com segment. The purchase price allocation was finalized during the third quarter of 2023. The overall impacts to our condensed consolidated financial statements were not considered material during the year of the acquisition
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Goodwill and Intangible Assets, Net
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net Goodwill and Intangible Assets, Net
The changes in goodwill by reportable segment are outlined below (in thousands):
Alarm.comOtherTotal
Balance as of January 1, 2024
$154,498 $— $154,498 
Foreign currency translation adjustment (65)— (65)
Balance as of March 31, 2024$154,433 $— $154,433 
The following table reflects changes in the net carrying amount of the components of intangible assets (in thousands):
Customer
Relationships		Developed
Technology		Trade NameCapitalized Software Development CostsTotal
Balance as of January 1, 2024
$39,294 $37,174 $1,217 $879 $78,564 
Intangible assets acquired— — — — — 
Capitalized software development costs — — — 479 479 
Amortization(2,417)(2,053)(207)(8)(4,685)
Balance as of March 31, 2024$36,877 $35,121 $1,010 $1,350 $74,358 

We recorded $4.7 million of amortization related to our intangible assets for the three months ended March 31, 2024, as compared to $4.6 million for the same period in the prior year. There were no impairments of long-lived intangible assets during the three months ended March 31, 2024 and 2023. During the three months ended March 31, 2024, $0.3 million of fully amortized developed technology intangible assets previously acquired were written-off in the Alarm.com segment as the technology was no longer in use.

The following tables reflect the weighted average remaining life and carrying value of finite-lived intangible assets (in thousands, except weighted-average remaining life):
 March 31, 2024
 Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Value		Weighted-
Average
Remaining Life
(in years)
Customer relationships$128,280 $(91,403)$36,877 5.9
Developed technology69,731 (34,610)35,121 4.5
Trade name4,474 (3,464)1,010 2.6
Capitalized software development costs1,361 (11)1,350 3.2
Total intangible assets$203,846 $(129,488)$74,358 5.2
 December 31, 2023
 Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Value		Weighted-
Average
Remaining Life
(in years)
Customer relationships$128,280 $(88,986)$39,294 6.2
Developed technology70,061 (32,887)37,174 4.7
Trade name4,474 (3,257)1,217 2.6
Capitalized software development costs882 (3)879 3.3
Total intangible assets$203,697 $(125,133)$78,564 5.4
v3.24.1.u1
Other Assets
 3 Months Ended
Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets Other Assets
Loan to a Distribution Partner

In December 2022, we amended a subordinated credit agreement with the affiliated entity of one of our distribution partners, or the Affiliate. The amended subordinated credit agreement with the Affiliate matures on June 18, 2027 and interest on the outstanding principal balance accrues at a rate of 12.0% per annum and is payable in kind. In March 2024, the Affiliate was in default on a loan arrangement with one of its third party secured lenders. Based on this information from the Affiliate, during the three months ended March 31, 2024, we recorded a credit loss expense of $4.0 million in general and administrative expense and recorded a reduction to our interest income of $0.5 million related to the reversal of payable in kind interest associated with the subordinated credit agreement. We placed this loan in nonaccrual status as of March 31, 2024. As of March 31, 2024, the $4.0 million outstanding notes receivable balance had a full allowance for credit losses. As of December 31, 2023, $4.5 million of the notes receivable balance related to the subordinated credit agreement was included in other assets in our condensed consolidated balance sheet.
For the three months ended March 31, 2024, we recognized $0.7 million of revenue from the distribution partner associated with this loan, as compared to $0.8 million for the same period in the prior year.

Loan to a Service Provider Partner

In July 2020, we entered into a loan agreement with a service provider partner, under which we agreed to loan the service provider partner up to $2.5 million, collateralized by the assets of the service provider partner. Interest on the outstanding principal accrues at a rate per annum equal to 9.0% and monthly interest and principal payments began in April 2021. The maturity date of the loan is July 24, 2025. As of March 31, 2024 and December 31, 2023, $1.0 million of principal was outstanding from the service provider partner under the loan agreement.

For the three months ended March 31, 2024 and 2023, we recognized less than $0.1 million of revenue from the service provider partner associated with this loan.

Loan to a Technology Partner

In June 2022, we entered into a convertible promissory note with a technology partner, under which we agreed to loan the technology partner $1.5 million. Interest on the outstanding principal accrues at a rate per annum equal to 6.5%, starting one year from the effective date of the loan. Interest and principal payments are due on the maturity date of the loan, which is June 27, 2029, unless the loan is converted prior to the maturity date, which may occur upon a qualified financing event, as defined in the convertible promissory note, upon a sale of the technology partner or upon our election on the maturity date of the loan. As of March 31, 2024 and December 31, 2023, $1.5 million of principal was outstanding from the technology partner under the convertible promissory note.

For the three months ended March 31, 2024 and 2023, we did not record any revenue from the technology partner associated with this convertible promissory note.

Investment in a Hardware Supplier

In October 2018, we entered into a subordinate convertible promissory note with one of our hardware suppliers. In July 2019, we converted the outstanding notes receivable balance of $5.6 million into 9,520,832 shares of Series B preferred stock in the hardware supplier. We concluded that the $5.6 million equity investment, which is included in the Alarm.com segment, does not meet the criteria for consolidation and will be accounted for using the measurement alternative. Under the alternative, we measure investments without readily determinable fair values at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments. As of March 31, 2024 and December 31, 2023, our investment in the hardware supplier was $5.6 million.

Investments in Technology Partners

In February 2021, we paid $5.0 million in cash to purchase 1,000,000 shares of Series B-2 Preferred Stock from a technology partner as part of a financing round that included other investors. The $5.0 million equity investment, which is included in the Alarm.com segment, does not meet the criteria for consolidation and is accounted for using the measurement alternative. Under the measurement alternative, we measure investments without readily determinable fair values at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments. As of March 31, 2024 and December 31, 2023, our investment in the technology partner was $5.7 million.

In December 2022, we paid $5.1 million in cash to another technology partner to purchase 4,231,717 shares of its Series A Preferred Stock. The $5.1 million equity investment, which is included in the Alarm.com segment, does not meet the criteria for consolidation and is accounted for using the measurement alternative. As of March 31, 2024 and December 31, 2023, our investment in the technology partner was $5.1 million.

Allowance for Credit Losses - Notes Receivable

We identified one portfolio segment, loan receivables, for our notes receivable. We previously disclosed a hardware financing receivable portfolio segment; however, there has been no activity within that portfolio segment since 2022. There were no changes to our policies or practices involving the issuance of notes receivable, customer acquisitions or any other factors that influenced our estimate of expected credit losses for notes receivable during the three months ended March 31, 2024.

We do not accrue interest on notes receivable that are considered impaired or are 90 days or greater past due based on their contractual payment terms. Notes receivable that are 90 days or greater past due are placed on nonaccrual status. Notes receivable may be placed on nonaccrual status earlier if, in management’s opinion, a timely collection of the full principal and interest becomes uncertain. After a note receivable has been placed on nonaccrual status, interest will be recognized when cash
is received. A note receivable may be returned to accrual status after all of the customer’s delinquent balances of principal and interest have been settled, and collection of all remaining contractual amounts due is reasonably assured. We have elected not to measure an allowance for credit losses for accrued interest receivables. We write-off any accrued interest on notes receivable that are considered impaired or are 90 days or greater past due based on their contractual payment terms by reversing interest income. The accrued interest receivable as of March 31, 2024 and December 31, 2023 was $0.1 million, and is reflected in other current assets and other assets within our condensed consolidated balance sheets and excluded from the amortized cost basis of the notes receivable. During the three months ended March 31, 2024, we recorded a reduction to our interest income of $0.5 million related to the reversal of payable in kind interest associated with a subordinated credit agreement with the Affiliate. We did not write-off any accrued interest receivable during the three months ended March 31, 2023.

There were no purchases or sales of financial assets during the three months ended March 31, 2024 and 2023. There were no significant changes in the amount of note receivable write-offs during the three months ended March 31, 2024, as compared to historical periods.

The changes in our allowance for credit losses for notes receivable are as follows (in thousands):
Three Months Ended
March 31, 2024		Three Months Ended
March 31, 2023
Beginning of period balance$(5)$(2)
Provision for expected credit losses
(3,998)— 
Write-offs— — 
End of period balance$(4,003)$(2)

We manage our notes receivables using delinquency as a key credit quality indicator. The following tables reflect the current and delinquent notes receivable by class of financing receivables and by year of origination (in thousands):
March 31, 2024
Loan Receivables:20242023202220212020PriorTotal
Current$500 $150 $1,500 $— $1,027 $4,000 $7,177 
30-59 days past due— — — — — — — 
60-89 days past due— — — — — — — 
90-119 days past due— — — — — — — 
120+ days past due— — — — — — — 
Total$500 $150 $1,500 $— $1,027 $4,000 $7,177 

December 31, 2023
Loan Receivables:20232022202120202019PriorTotal
Current$150 $1,500 $— $1,039 $— $4,524 $7,213 
30-59 days past due— — — — — — — 
60-89 days past due— — — — — — — 
90-119 days past due— — — — — — — 
120+ days past due— — — — — — — 
Total$150 $1,500 $— $1,039 $— $4,524 $7,213 

There was one note receivable placed on nonaccrual status as of March 31, 2024 in the amount of $4.0 million. There were no notes receivable placed on nonaccrual status as of December 31, 2023. During the three months ended March 31, 2024 and 2023, there was no interest income recognized related to notes receivable that were in nonaccrual status.

As of March 31, 2024 and December 31, 2023, there were no notes receivable placed in nonaccrual status for which there was not a related allowance for credit losses. As of March 31, 2024 and December 31, 2023, there were no notes receivable that were 90 days or greater past due for which we continued to accrue interest income.
Prepaid Expenses

As of March 31, 2024 and December 31, 2023, $16.9 million and $14.6 million of prepaid expenses were included in other current assets, respectively, primarily related to software licenses, long lead-time parts related to our inventory and insurance.
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Fair Value Measurements
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The following tables present our assets and liabilities measured at fair value on a recurring basis (in thousands):
Fair Value Measurements on a Recurring Basis
Assets:Level 1Level 2Level 3Total
Money market accounts as of March 31, 2024
$723,877 $— $— $723,877 
Money market accounts as of December 31, 2023
679,734 — — 679,734 
Liabilities:
Contingent consideration liability from acquisition as of March 31, 2024
$— $— $2,092 $2,092 
Contingent consideration liability from acquisition as of December 31, 2023
— — 2,061 2,061 

The following table summarizes the change in fair value of the Level 3 contingent consideration liability with significant unobservable inputs (in thousands):
Three Months Ended
March 31,
20242023
Beginning of period balance$2,061 $— 
Acquired liabilities— 1,993 
Changes in fair value included in earnings31 13 
End of period balance$2,092 $2,006 
    
As of March 31, 2024, $718.7 million of our money market accounts was included in cash and cash equivalents, $4.0 million was included in other assets and $1.2 million was included in other current assets in our condensed consolidated balance sheets. As of December 31, 2023, $675.6 million was included in cash and cash equivalents and $4.1 million was included in other assets in our condensed consolidated balance sheets. Our assets from money market accounts are valued using quoted prices in active markets. See Note 12 for the carrying amount and estimated fair value of our convertible senior notes as of March 31, 2024 and December 31, 2023.

The contingent consideration liability consists of the potential earn-out payment related to our acquisition of 100% of the issued and outstanding capital stock of EBS on January 18, 2023. The earn-out payment is contingent on the satisfaction of certain performance targets related to the integration of EBS's hardware into the Alarm.com platform by December 31, 2025 and has a maximum potential payment of up to $2.5 million. We account for the contingent consideration using fair value and established a liability for the future earn-out payment based on an estimation of the probability of the future achievement of the performance targets. The contingent consideration liability was valued with Level 3 unobservable inputs, including the probability of expected achievement of the performance targets. At January 18, 2023, the fair value of the liability was $2.0 million. At each reporting date until December 31, 2025, or the achievement of the performance targets, we will remeasure the liability, using the same valuation approach. The fair value of the contingent consideration liability is included within accounts payable, accrued expenses and other current liabilities as well as other liabilities within our condensed consolidated balance sheets. Changes in fair value resulting from information that existed subsequent to the acquisition date are recorded in general and administrative expense in the condensed consolidated statements of operations. During the three months ended March 31, 2024, the contingent consideration liability did not materially change from the acquisition date fair value of $2.0 million as there were minor changes in the expected probability of achievement for the performance targets. The unobservable inputs used in the valuation as of March 31, 2024 included a weighted average expected achievement percentage of 89.5%, weighted by the potential payout of the performance targets, including a range of 80.0% to 99.0%. The valuation also included a weighted average discount rate of 5.5%, weighted by the probability of achievement of the performance targets at various dates, including a range of 5.4% to 5.7%. Selecting another probability of expected achievement or discount rate within an acceptable range would not result in a significant change to the fair value of the contingent consideration liability.

We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of
financial instruments from one fair value level to another. There were no transfers into or out of Level 3 or reclassifications between levels of the fair value hierarchy during the three months ended March 31, 2024 and 2023. No other-than-temporary impairments occurred during the three months ended March 31, 2024 and 2023.
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Leases
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Leases Leases
As of March 31, 2024, we leased office space, data centers and office equipment under non-cancelable operating leases with various expiration dates through 2030. In August 2014, we signed a lease for office space in Tysons, Virginia, where we relocated our headquarters to in February 2016. We have subsequently entered into amendments to this lease to provide us with additional office space. The lease term ends in 2026, includes a five-year renewal option and a cumulative tenant improvement allowance of $12.1 million.

Supplemental information related to leases is presented in the table below (in thousands, except weighted-average term and discount rate):
Three Months Ended
March 31,
20242023
Operating lease cost$2,976 $2,750 
Cash paid for amounts included in the measurement of operating lease liabilities3,221 3,362 
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities2,643 3,927 
March 31,
2024		December 31,
2023
Weighted-average remaining lease term — operating leases3.1 years3.0 years
Weighted-average discount rate — operating leases5.2 %4.9 %

Maturities of lease liabilities are as follows (in thousands):
Year Ended December 31,
Operating Leases(1)
Remainder of 2024$10,561 
202512,454 
20267,827 
20272,500 
20281,841 
2029 and thereafter1,904 
Total lease payments37,087 
Less: imputed interest(2)
4,100 
Present value of lease liabilities$32,987 
_______________
(1)Excludes $3.6 million of legally binding minimum lease payments for leases executed but not yet commenced. There are no options to extend lease terms that were reasonably certain of being exercised included in these balances.
(2)Imputed interest was calculated using the incremental borrowing rate applicable for each lease.

We did not have any finance leases or subleases as of March 31, 2024 or December 31, 2023. Our lease agreements do not contain any material residual value guarantees, restrictive covenants or variable lease payments. Short-term lease costs were immaterial for the three months ended March 31, 2024 and 2023.
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Liabilities
 3 Months Ended
Mar. 31, 2024
Payables and Accruals [Abstract]  
Liabilities Liabilities
The components of accounts payable, accrued expenses and other current liabilities are as follows (in thousands):
March 31,
2024		December 31,
2023
Accounts payable$42,458 $39,038 
Accrued expenses16,563 21,559 
Income taxes payable 60,133 42,501 
Holdback liability from business combinations and asset acquisitions7,340 7,340 
Contingent consideration liability from acquisition
1,181 — 
Other current liabilities9,876 14,037 
Accounts payable, accrued expenses and other current liabilities$137,551 $124,475 

The components of other liabilities are as follows (in thousands):
March 31,
2024		December 31,
2023
Contingent consideration liability from acquisition$911 $2,061 
Other liabilities10,792 10,636 
Other liabilities$11,703 $12,697 
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Debt, Commitments and Contingencies
 3 Months Ended
Mar. 31, 2024
Debt, Commitments and Contingencies Disclosure [Abstract]  
Debt, Commitments and Contingencies Debt, Commitments and Contingencies
The debt, commitments and contingencies described below would require us, or our subsidiaries, to make payments to third parties under certain circumstances.

Convertible Senior Notes

On January 20, 2021, we issued $500.0 million aggregate principal amount of 0% convertible senior notes due January 15, 2026 in a private placement to qualified institutional buyers, or the 2026 Notes. The terms of the 2026 Notes are governed by an Indenture, or the Indenture, by and between Alarm.com Holdings, Inc. and U.S. Bank National Association, as trustee. The 2026 Notes are senior unsecured obligations that do not bear regular interest and the principal amount of the 2026 Notes will not accrete. The 2026 Notes may bear special interest under specified circumstances related to our failure to comply with our reporting obligations under the Indenture. Special interest, if any, will be payable semiannually in arrears on January 15 and July 15 of each year, beginning on July 15, 2021. We received proceeds from the issuance of the 2026 Notes of $484.3 million, net of $15.7 million of transaction fees and other debt issuance costs.

We may redeem for cash, all or any portion of the 2026 Notes, at our option, on or after January 20, 2024, at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the redemption date, if the last reported sale price of our common stock has been at least 130% of the conversion price for the 2026 Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption. No sinking fund is provided for the 2026 Notes.

The 2026 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding August 15, 2025, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price for the 2026 Notes on each applicable trading day; (2) during the five business day period immediately after any 10 consecutive trading day period in which, for each trading day of that period, the trading price per $1,000 principal amount of 2026 Notes for such trading day was less than 98% of the product of the last reported sale price of our common stock and the conversion rate for the 2026 Notes on each such trading day; (3) if we call any or all of the 2026 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the 2026 Notes called (or deemed called) for redemption; or (4) upon the occurrence of specified corporate events as set forth in the Indenture.
On or after August 15, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date of the 2026 Notes, holders of the 2026 Notes may convert all or any portion of their 2026 Notes at any time, regardless of the foregoing conditions. Upon conversion, we may satisfy our conversion obligation by paying or delivering, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. It is our current intent to settle the principal amount of the 2026 Notes with cash. The initial conversion rate for the 2026 Notes is 6.7939 shares of our common stock per $1,000 principal amount of 2026 Notes, which is equivalent to an initial conversion price of $147.19 per share of our common stock, subject to adjustment under certain circumstances in accordance with the terms of the Indenture. In addition, following certain corporate events that occur prior to the maturity date of the 2026 Notes or if we deliver a notice of redemption in respect of the 2026 Notes, we will, under certain circumstances, increase the conversion rate of the 2026 Notes for a holder who elects to convert its 2026 Notes (or any portion thereof) in connection with such a corporate event or convert its 2026 Notes called (or deemed called) for redemption during the related redemption period (as defined in the Indenture), as the case may be.

If we undergo a fundamental change (as defined in the Indenture), subject to certain exceptions and except as described in the Indenture, holders may require us to repurchase for cash all or any portion of their 2026 Notes at a fundamental change repurchase price equal to 100% of the principal amount of the 2026 Notes to be repurchased, plus accrued and unpaid special interest, if any, to, but excluding, the fundamental change repurchase date.

The Indenture includes customary covenants and sets forth certain events of default after which the 2026 Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving us after which the 2026 Notes become automatically due and payable.

We used some of the proceeds to repay the $110.0 million outstanding principal balance under our credit facility and also used some of the proceeds to pay accrued interest, fees and expenses related to our credit facility, which was terminated effective January 20, 2021. We are using the remaining net proceeds from the issuance of the 2026 Notes for working capital and other general corporate purposes, which may include acquisitions or strategic investments in complementary businesses or technologies.

We account for the 2026 Notes as a liability. The debt issuance costs are presented as a deduction from the outstanding principal balance of the 2026 Notes and are amortized to interest expense using the effective interest method over the contractual term of the 2026 Notes at a rate of 0.6%.

As of March 31, 2024 and December 31, 2023, the fair value of our 2026 Notes was $461.2 million and $444.8 million, respectively. The fair value was determined based on the quoted price of the 2026 Notes in an inactive market on the last traded day of the quarter and has been classified as Level 2 in the fair value hierarchy. Based on the closing price of our common stock of $72.47 on the last trading day of the quarter, the if-converted value of the 2026 Notes did not exceed the principal amount of $500.0 million as of March 31, 2024.

The net carrying amount of the liability component of the 2026 Notes is as follows (in thousands):
March 31,
2024		December 31,
2023
Principal$500,000 $500,000 
Unamortized debt issuance costs(5,695)(6,485)
Net carrying amount$494,305 $493,515 

Interest expense related to the 2026 Notes is as follows (in thousands):
Three Months Ended
March 31,
20242023
Amortization of debt issuance costs$790 $784 
Total interest expense$790 $784 
Commitments and Contingencies

Indemnification Agreements

We have various agreements that may obligate us to indemnify the other party to the agreement with respect to certain matters. Generally, these indemnification provisions are included in contracts arising in the normal course of business. Although we cannot predict the maximum potential amount of future payments that may become due under these indemnification agreements, we do not believe any potential liability that might arise from such indemnity provisions is probable or material.

Legal Proceedings

On January 10, 2022, EcoFactor, Inc., or EcoFactor, filed a lawsuit against us in U.S. District Court, District of Oregon, alleging Alarm.com’s products and services directly and indirectly infringe five U.S. patents owned by EcoFactor. EcoFactor is seeking a permanent injunction, enhanced damages and attorneys' fees. EcoFactor had previously asserted two of the same patents against us in an October 2019 complaint with the U.S. International Trade Commission, or ITC. In July 2021, the ITC found in favor of Alarm.com. EcoFactor appealed the decision but withdrew its appeal in December 2021. We moved to dismiss the Oregon case for failure to state a claim on March 28, 2022. Three of the asserted patents are in ex parte reexamination proceedings at the PTO, and ex parte reexamination of a fourth patent concluded on August 23, 2023 after the claims were amended. On April 18, 2022, all claims of a fifth patent were found unpatentable by the U.S. Patent Trial and Appeal Board, or PTAB, in an inter partes review, and all claims were canceled on February 1, 2024. On April 18, 2022, the district court stayed the case at the request of the parties pending the disposition of PTAB and other proceedings involving the asserted patents.

Should EcoFactor prevail in its lawsuit we could be required to pay damages and/or a reasonable royalty for sales of our solution, we could be enjoined from making, using and selling our solution if a license or other right to continue selling such elements is not made available to us, and we could be required to pay ongoing royalties and comply with unfavorable terms if such a license is made available to us. While we believe we have valid defenses to EcoFactor’s claims, the outcome of these legal claims cannot be predicted with certainty and any of these outcomes could result in an adverse effect on our business. Based on currently available information, we have determined a loss is not probable or reasonably estimable at this time.

On July 22, 2021, Causam Enterprises, Inc., or Causam, filed a lawsuit against us in U.S. District Court, Western District of Texas, alleging that Alarm.com’s smart thermostats infringe four U.S. patents owned by Causam. Causam is seeking preliminary and permanent injunctions, enhanced damages and attorneys’ fees. We have not yet responded to the complaint. On September 3, 2021, the court issued an order staying the lawsuit until the ITC investigation described below is finally resolved.

On July 28, 2021, Causam filed a complaint with the ITC naming Alarm.com Incorporated, Alarm.com Holdings, Inc., and EnergyHub, Inc., among others, as proposed respondents. The complaint alleges infringement of the same four patents Causam asserted in district court. Causam is seeking a permanent limited exclusion order and permanent cease and desist order. On August 27, 2021, the ITC instituted an investigation into Causam’s allegations naming Alarm.com Incorporated, Alarm.com Holdings, Inc., EnergyHub Inc. and others as respondents. We answered the complaint on October 4, 2021. Among other things, we asserted defenses based on non-infringement and invalidity of the patents in question. An evidentiary hearing in the investigation was held from June 28, 2022 through July 1, 2022. On February 16, 2023, the ITC issued a final decision in favor of Alarm.com and EnergyHub. Causam filed an appeal of the ITC decision on April 14, 2023. Causam did not appeal the ITC decision with respect to Alarm.com and EnergyHub.

Should Causam prevail in its district court lawsuit we could be required to pay damages and/or a reasonable royalty for sales of our solution, we could be enjoined from making, using and selling our solution if a license or other right to continue selling such elements is not made available to us, and we could be required to pay ongoing royalties and comply with unfavorable terms if such a license is made available to us. While we believe we have valid defenses to Causam’s claims, the outcome of these legal claims cannot be predicted with certainty, and any of these outcomes could result in an adverse effect on our business. Based on currently available information, we have determined a loss is not probable or reasonably estimable at this time.

In addition to the matters described above, we may be required to provide indemnification to certain of our service provider partners for certain claims regarding our solutions. For example, we incur costs associated with the indemnification of our service provider Central Security Group – Nationwide, Inc. (d/b/a Alert 360), or CSG, in an ongoing patent litigation. In 2018, Ubiquitous Connectivity, LP, or Ubiquitous, brought suit against CSG in U.S. District Court, Northern District of Oklahoma, alleging infringement of two U.S. patents. The case was stayed by agreement of the parties for several years while the patents in suit were challenged before the PTAB. In January 2021, the PTAB deemed 42 out of 46 claims of the two asserted patents unpatentable. Ubiquitous appealed a portion of the PTAB’s findings to the United States Court of Appeals for the Federal Circuit. The Federal Circuit affirmed the PTAB’s ruling on August 8, 2023. As a result, only four patent claims remain at issue and the Northern District of Oklahoma case is no longer stayed. The case is currently in the discovery phase. A claim construction hearing is scheduled for December 12, 2024. A hearing on dispositive motions, including for summary judgment, is scheduled for April 15, 2026. A trial is scheduled for June 22, 2026.
Should Ubiquitous prevail on its infringement claims, we could be required to indemnify CSG for damages in the form of a reasonable royalty or of Ubiquitous’s lost profits. CSG could be enjoined from making, using, and selling our solution if a license or other right to continue selling our technology is not made available or if we are unable to design around such patents, and we could be required to pay ongoing royalties and comply with unfavorable terms if such a license is made available to us. The outcome of these legal claims cannot be predicted with certainty. Based on currently available information, we have determined a loss is not probable or reasonably estimable at this time.

We may also be a party to litigation and subject to claims incident to the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business.

Other than the preceding matters, we are not a party to any lawsuit or proceeding that, in the opinion of management, is reasonably possible or probable of having a material adverse effect on our financial position, results of operations or cash flows. We reserve for contingent liabilities based on ASC 450, "Contingencies," when it is determined that a liability, inclusive of defense costs, is probable and reasonably estimable. Litigation is subject to many factors that are difficult to predict, so there can be no assurance that, in the event of a material unfavorable result in one or more claims, we will not incur material costs.
v3.24.1.u1
Stockholders' Equity
 3 Months Ended
Mar. 31, 2024
Equity [Abstract]  
Stockholders' Equity Stockholders' Equity
Stock Repurchase Programs

On February 15, 2023, our board of directors authorized a stock repurchase program, effective February 23, 2023, under which we are authorized to purchase up to an aggregate of $100.0 million of our outstanding common stock during the two-year period ending February 23, 2025. No shares were repurchased under this program during the three months ended March 31, 2024 and 2023. Beginning January 1, 2023, we are subject to a 1.0% excise tax on the value of net corporate stock repurchases under the Inflation Reduction Act of 2022. When applicable, the excise tax will be included as part of the cost basis of shares acquired and is presented within stockholders’ equity in the condensed consolidated balance sheets.
v3.24.1.u1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Stock-based compensation expense is included in the following line items in the condensed consolidated statements of operations (in thousands):
 Three Months Ended
March 31,
 20242023
Cost of hardware and other revenue
$1 $— 
Sales and marketing755 1,032 
General and administrative3,181 3,145 
Research and development7,331 8,509 
Total stock-based compensation expense$11,268 $12,686 

The following table summarizes the components of non-cash stock-based compensation expense (in thousands):
 Three Months Ended
March 31,
 20242023
Stock options$987 $912 
Restricted stock units10,230 11,722 
Employee stock purchase plan51 52 
Total stock-based compensation expense$11,268 $12,686 
Tax windfall benefit / (shortfall) from stock-based awards
$486 $(22)
We granted 6,000 and 21,400 stock options pursuant to our 2015 Equity Incentive Plan during the three months ended March 31, 2024 and 2023, respectively. There were 128,526 stock options exercised during the three months ended March 31, 2024, as compared to 70,951 stock options for the same period in the prior year. There was an aggregate of 88,150 restricted stock units without performance conditions granted to certain of our employees during the three months ended March 31, 2024, as compared to an aggregate of 82,875 restricted stock units without performance conditions for the same period in the prior year. There were no restricted stock units with performance conditions granted to our employees during the three months ended March 31, 2024 and 2023. There were 81,696 restricted stock units without performance conditions that vested during the three months ended March 31, 2024, as compared to 167,085 restricted stock units without performance conditions vested during the same period in the prior year. There were no restricted stock units with performance conditions that vested during the three months ended March 31, 2024, as compared to 9,000 restricted stock units with performance conditions vested for the same period in the prior year.
v3.24.1.u1
Earnings Per Share
 3 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
Basic and Diluted Earnings Per Share

The components of basic and diluted earnings per share are as follows (in thousands, except share and per share amounts):
 Three Months Ended
March 31,
Numerator: 20242023
Net income$23,404 $14,207 
Net loss attributable to redeemable noncontrolling interests191 209 
Net income attributable to common stockholders - basic (A)23,595 14,416 
Add back interest expense, net of tax, attributable to convertible senior notes594 590 
Net income attributable to common stockholders - diluted (B)$24,189 $15,006 
Denominator:
Weighted average common shares outstanding — basic (C)49,963,265 49,584,890 
Dilutive effect of convertible senior notes, stock options and restricted stock units5,083,822 4,711,431 
Weighted average common shares outstanding — diluted (D)55,047,087 54,296,321 
Net income per share:
Basic (A/C)$0.47 $0.29 
Diluted (B/D)$0.44 $0.28 

The following securities have been excluded from the calculation of diluted weighted average common shares outstanding as the inclusion of these securities would have an anti-dilutive effect:
 Three Months Ended
March 31,
 20242023
Stock options329,749 431,052 
Restricted stock units61,150 355,047 

Our redeemable noncontrolling interests are related to our 86% equity ownership interests in OpenEye, and our 85% equity ownership interest in Noonlight.

We use the if-converted method when calculating the dilutive impact of the 2026 Notes on net income per share. As a result, we included 3,396,950 shares related to the 2026 Notes within the weighted average shares outstanding when calculating the diluted net income per share for each of the three months ended March 31, 2024 and 2023. Additionally, we included $0.6 million of debt issuance cost amortization, net of tax, within the numerator of the diluted net income per share for the three months ended March 31, 2024 and 2023. We use the treasury stock method when calculating the dilutive impact of the stock options and restricted stock units on net income per share.
v3.24.1.u1
Significant Service Providers and Distributors
 3 Months Ended
Mar. 31, 2024
Risks and Uncertainties [Abstract]  
Significant Service Providers and Distributors Significant Service Providers and Distributors
During the three months ended March 31, 2024, our 10 largest revenue service provider partners or distributors accounted for 48% of our consolidated revenue, as compared to 50% for the same period in the prior year. One of our service provider partners within the Alarm.com segment individually represented greater than 15% but not more than 20% of our revenue for the three months ended March 31, 2024 and 2023.

One service provider partner in the Alarm.com segment represented more than 10% of accounts receivable as of March 31, 2024 and December 31, 2023.
v3.24.1.u1
Income Taxes
 3 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
For purposes of interim reporting, our annual effective income tax rate is estimated in accordance with ASC 740-270, "Interim Reporting." This rate is applied to the pre-tax book income of the entities expected to be benefited during the year. Discrete items that impact the tax provision are recorded in the period incurred.

For the three months ended March 31, 2024, we recorded a provision for income taxes of $2.7 million, resulting in an effective income tax rate of 10.5%. For the three months ended March 31, 2023, we recorded a benefit from income taxes of $1.2 million, resulting in an effective income tax rate of (9.4)%. For the three months ended March 31, 2024, our effective tax rate was below the 21.0% statutory rate primarily due to research and development tax credits claimed, the foreign derived intangible income deduction, the release of an unrecognized tax benefit liability due to the closure of the 2018 and 2019 Internal Revenue Service federal income tax examination and tax windfall benefits from employee stock-based compensation, partially offset by the impact of state taxes, federal estimated tax payment interest expense and other nondeductible expenses. For the three months ended March 31, 2023, our effective tax rate was below the 21.0% statutory rate primarily due to research and development tax credits claimed and the foreign derived intangible income deduction, partially offset by the impact of state income taxes and other nondeductible expenses.

We recognize a valuation allowance if, based on the weight of available evidence, both positive and negative, it is more likely than not that some portion, or all, of net deferred tax assets will not be realized. Our valuation allowance for state research and development tax credit carryforwards and net deferred tax assets of our EBS subsidiary was $3.8 million as of December 31, 2023 and decreased to $3.7 million as of March 31, 2024.

We apply guidance for uncertainty in income taxes that requires the application of a more likely than not threshold to the recognition and de-recognition of uncertain tax positions. If the recognition threshold is met, this guidance permits us to recognize a tax benefit measured at the largest amount of the tax benefit that, in our judgment, is more likely than not to be realized upon settlement. We recorded a net decrease to the unrecognized tax benefits liability of $1.9 million primarily due to the closure of the 2018 and 2019 Internal Revenue Service federal income tax return examination, partially offset by a liability for research and development tax credits claimed during the three months ended March 31, 2024. We recorded an increase to the unrecognized tax benefits liability of $0.7 million primarily for research and development tax credits claimed during the three months ended March 31, 2023.

Our condensed consolidated balance sheets included an accrual for total interest expense related to unrecognized tax benefits of $0.8 million as of December 31, 2023, which decreased to $0.6 million as of March 31, 2024. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense.

Our tax returns are subject to on-going review and examination by various tax authorities. Tax authorities may not agree with the treatment of items reported in our tax returns, and therefore the outcome of tax reviews and examinations can be unpredictable. On October 13, 2021, the Internal Revenue Service commenced an examination of our federal income tax return for 2018 and on August 12, 2022, the Internal Revenue Service expanded the examination to include our federal income tax return for 2019. On January 25, 2024, the Internal Revenue Service notified us that the income tax examination of our 2018 and 2019 federal income tax returns has been closed. As a result, we owe $0.6 million in additional federal taxes, including interest, and recognized a net income tax benefit of $1.7 million during the three months ended March 31, 2024.

As of March 31, 2024, we did not have material undistributed foreign earnings. We have not recorded a deferred tax liability on the undistributed earnings from our foreign subsidiaries, as such earnings are considered to be indefinitely reinvested.

In August 2022, the Inflation Reduction Act of 2022 was enacted in the United States which, among other provisions, includes a minimum 15.0% tax on companies that have a three-year average annual adjusted financial statement income of more than $1.0 billion and a 1.0% excise tax on the value of net corporate stock repurchases. Both provisions became effective on January 1, 2023 and the provisions did not have a material impact on our financial condition or results of operations for the periods presented.
v3.24.1.u1
Segment Information
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment Information Segment Information
We have two reportable segments:

•Alarm.com segment

•Other segment

Our chief operating decision maker is our chief executive officer. Management determined the operational data used by the chief operating decision maker is that of the two reportable segments. Management bases strategic goals and decisions on these segments and the data presented below is used to measure financial results.

Our Alarm.com segment represents our cloud-based and Software platforms for the intelligently connected property and related solutions that contributed 94% of our revenue, net of intersegment eliminations, for the three months ended March 31, 2024, as compared to 95% for the same period in the prior year. Our Other segment is focused on researching, developing and offering residential and commercial automation solutions and energy management products and services in adjacent markets. Inter-segment revenue includes sales of hardware between our segments.

Management evaluates the performance of its segments and allocates resources to them based on operating income / (loss) as compared to prior periods and current performance levels. The reportable segment operational data is presented in the tables below (in thousands):
Three Months Ended March 31, 2024
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$137,859 $12,485 $— $— $150,344 
Hardware and other revenue
72,364 1,398 (686)(137)72,939 
Total revenue
210,223 13,883 (686)(137)223,283 
Operating income / (loss)
23,574 (4,742)(135)28 18,725 
Three Months Ended March 31, 2023
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$125,652 $9,742 $— $— $135,394 
Hardware and other revenue
73,496 1,718 (777)(115)74,322 
Total revenue
199,148 11,460 (777)(115)209,716 
Operating income / (loss)
13,931 (5,192)5 75 8,819 
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
Assets as of March 31, 2024$1,538,429 $64,350 $(115,786)$(11)$1,486,982 
Assets as of December 31, 20231,477,674 73,621 (111,725)(7)1,439,563 

Our SaaS and license revenue for the Alarm.com segment included software license revenue of $5.2 million for the three months ended March 31, 2024, as compared to $6.2 million for the same period in the prior year. There was no software license revenue recorded for the Other segment during the three months ended March 31, 2024 and 2023.

Amortization and depreciation expense was $7.1 million for the Alarm.com segment for the three months ended March 31, 2024, as compared to $7.4 million for the same period in the prior year. Amortization and depreciation expense was $0.2 million for the Other segment for the three months ended March 31, 2024, as compared to $0.3 million for the same period in the prior year. Additions to property and equipment were $3.9 million for the Alarm.com segment for the three months ended March 31, 2024, as compared to $3.0 million the same period in the prior year. Additions to property and equipment were less than $0.1 million for the Other segment for each of the three months ended March 31, 2024 and 2023.

We derived substantially all revenue from North America for the three months ended March 31, 2024 and 2023. Substantially all of our long-lived assets were in North America as of March 31, 2024 and December 31, 2023.
v3.24.1.u1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.1.u1
Basis of Presentation and Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Basis of Presentation
Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include our accounts and those of our majority-owned and controlled subsidiaries after elimination of intercompany accounts and transactions.

These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP, for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission, or SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual financial statements. They should be read together with our audited consolidated financial statements and related notes thereto for the year ended December 31, 2023 included in our Annual Report on Form 10-K filed with the SEC on February 22, 2024, or the Annual Report. The condensed consolidated balance sheet as of December 31, 2023 was derived from our audited financial statements but does not include all disclosures required by GAAP for annual financial statements.

In the opinion of management, these condensed consolidated financial statements include all normal recurring adjustments necessary for a fair statement of the results of operations, financial position and cash flows for the periods presented. However, the global economy, credit markets and financial markets have and may continue to experience significant volatility as a result of significant worldwide events, including public health crises, and geopolitical upheaval, such as Russia’s incursion into Ukraine and the conflict between Israel and regional adversaries, disruptions to global supply chains, rising interest rates, risk of recession and inflation (collectively, the Macroeconomic Conditions). These Macroeconomic Conditions have and may continue to create supply chain disruptions, inventory disruptions, and fluctuations in economic growth, including fluctuations in employment rates, inflation, energy prices and consumer sentiment. It remains difficult to assess or predict the ultimate duration and economic impact of the Macroeconomic Conditions. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results that can be expected for our entire fiscal year ending December 31, 2024, which is increasingly true in periods of extreme uncertainty, such as the uncertainty caused by the Macroeconomic Conditions. Prolonged uncertainties could cause further economic slowdown or cause other unpredictable events, each of which could adversely affect our business, results of operations or financial condition.
Use of Estimates
Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. As of the date of issuance of these financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, assumptions and judgments or revise the carrying value of our assets or liabilities. However, our estimates, judgments and assumptions are continually evaluated based on available information and experience and may change as new events occur and additional information is obtained. Because of the use of estimates inherent in the financial reporting process and in light of the continuing uncertainty arising from the Macroeconomic Conditions, actual results could differ from those estimates and any such differences may be material. Estimates are used when accounting for revenue recognition, allowances for credit losses, allowance for hardware returns, estimates of obsolete inventory, long-term incentive compensation, the lease term and incremental borrowing rates for leases, stock-based compensation, income taxes, legal reserves, goodwill, intangible assets and other long-lived assets.
Recent Accounting Pronouncements
Recent Accounting Pronouncements

Adopted

During the three months ended March 31, 2024, we did not adopt any new accounting pronouncements.

Not Yet Adopted

On November 27, 2023, the Financial Accounting Standards Board, or FASB, issued ASU 2023-07, "Segment Reporting (Topic 280),” which revises the disclosure requirements about a public entity’s reportable segments and a reportable segment’s expenses. This amendment requires a public entity to (i) disclose significant segment expense that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, (ii) disclose an amount for other segment items by reportable segment and a description of its composition and (iii) provide annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods. The amendment is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. This amendment is required to be applied retrospectively to all prior periods presented. We are currently assessing the impact this pronouncement will have on our consolidated financial statement disclosures.

On December 14, 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740)," which requires additional annual disclosures regarding specific categories in the income tax rate reconciliation as well additional information for reconciling items that meet a quantitative threshold. This amendment also requires annual disclosures regarding the amount of income taxes paid, including income taxes paid disaggregated by (i) federal, state and foreign taxes as well as (ii) individual jurisdictions in which income taxes paid is equal to or greater than five percent of total income taxes paid. Additionally, this amendment requires annual disclosures for income from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign as well as income tax expense (or benefit) disaggregated between federal, state and foreign. The amendment is effective for annual periods beginning after December 15, 2024, and early adoption is permitted. This amendment should be applied on a prospective basis, but retrospective application is permitted. We are currently assessing the impact this pronouncement will have on our consolidated financial statement disclosures.
Allowance for Credit Losses - Accounts Receivable and Notes Receivable
Allowance for Credit Losses - Accounts Receivable

The allowance for credit losses is a valuation account that is deducted from the accounts receivable and notes receivable amortized cost basis (see Note 8) to present the net amount expected to be collected. We estimate the allowance balance by applying the loss-rate method using relevant available information from internal and external sources, including historical write-off activity, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for changes in economic conditions, such as changes in unemployment rates. We use projected economic conditions over a period no more than twelve months based on data from external sources. For periods beyond the twelve-month reasonable and supportable forecast period, we revert to historical loss information immediately.

The allowance for credit losses is measured on a pooled basis when similar risk characteristics exist. When assessing whether to measure certain financial assets on a pooled basis, we considered various risk characteristics, including the financial asset type, size and the historical or expected credit loss pattern. We identified the following two portfolio segments for our accounts receivable: (i) outstanding accounts receivable balances within Alarm.com and certain subsidiaries and (ii) outstanding accounts receivable balances within all other subsidiaries. There were no changes to our portfolio segments for our accounts receivable during the three months ended March 31, 2024, and no changes to our policies or practices that influenced our estimate of expected credit losses for accounts receivable. Additionally, there were no significant changes in the amount of accounts receivable write-offs during the three months ended March 31, 2024, as compared to historical periods.

Expected credit losses are estimated over the contractual term of the financial assets and we adjust the term for expected prepayments when appropriate. For the three months ended March 31, 2024 and 2023, we recorded credit loss expense for accounts receivable and notes receivable of $4.0 million and $0.5 million, respectively, in general and administrative expense in our condensed consolidated statements of operations. The contractual term excludes expected extensions, renewals and modifications because extension and renewal options are unconditionally cancelable by us. Write-offs of the amortized cost basis are recorded to the allowance for credit losses. Any subsequent recoveries of previously written off balances are recorded as a reduction to credit loss expense.
We do not accrue interest on notes receivable that are considered impaired or are 90 days or greater past due based on their contractual payment terms. Notes receivable that are 90 days or greater past due are placed on nonaccrual status. Notes receivable may be placed on nonaccrual status earlier if, in management’s opinion, a timely collection of the full principal and interest becomes uncertain. After a note receivable has been placed on nonaccrual status, interest will be recognized when cash
is received. A note receivable may be returned to accrual status after all of the customer’s delinquent balances of principal and interest have been settled, and collection of all remaining contractual amounts due is reasonably assured. We have elected not to measure an allowance for credit losses for accrued interest receivables. We write-off any accrued interest on notes receivable that are considered impaired or are 90 days or greater past due based on their contractual payment terms by reversing interest income.
Income Taxes
We recognize a valuation allowance if, based on the weight of available evidence, both positive and negative, it is more likely than not that some portion, or all, of net deferred tax assets will not be realized. Our valuation allowance for state research and development tax credit carryforwards and net deferred tax assets of our EBS subsidiary was $3.8 million as of December 31, 2023 and decreased to $3.7 million as of March 31, 2024.
We apply guidance for uncertainty in income taxes that requires the application of a more likely than not threshold to the recognition and de-recognition of uncertain tax positions. If the recognition threshold is met, this guidance permits us to recognize a tax benefit measured at the largest amount of the tax benefit that, in our judgment, is more likely than not to be realized upon settlement.
v3.24.1.u1
Revenue from Contracts with Customers (Tables)
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Contract Assets and Contract Liabilities
The changes in our contract assets are as follows (in thousands):
Three Months Ended
March 31,
20242023
Beginning of period balance$9,099 $13,975 
Commission costs and upfront payments to a customer capitalized in period3,112 1,673 
Amortization of contract assets(1,745)(1,769)
End of period balance$10,466 $13,879 
The changes in our contract liabilities are as follows (in thousands):
Three Months Ended
March 31,
20242023
Beginning of period balance$22,885 $18,332 
Revenue deferred in period6,424 5,940 
Revenue recognized from amounts included in contract liabilities(5,097)(4,041)
End of period balance$24,212 $20,231 
v3.24.1.u1
Accounts Receivable, Net (Tables)
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Schedule of Components of Accounts Receivable
The components of accounts receivable, net are as follows (in thousands):
March 31,
2024		December 31,
2023
Accounts receivable$135,100 $136,769 
Allowance for credit losses(4,054)(3,864)
Allowance for product returns(2,595)(2,279)
Accounts receivable, net$128,451 $130,626 
Schedule of Changes in Allowance for Credit Losses for Accounts Receivable
The changes in our allowance for credit losses for accounts receivable are as follows (in thousands):
Three Months Ended
March 31, 2024		Three Months Ended
March 31, 2023
 Alarm.com
and Certain
Subsidiaries		All Other
Subsidiaries		 Alarm.com
and Certain
Subsidiaries		All Other
Subsidiaries
Beginning of period balance$(3,723)$(141)$(2,755)$(80)
(Provision for) / recovery of expected credit losses(287)33 (506)(34)
Write-offs44 20 159 17 
End of period balance$(3,966)$(88)$(3,102)$(97)
The changes in our allowance for credit losses for notes receivable are as follows (in thousands):
Three Months Ended
March 31, 2024		Three Months Ended
March 31, 2023
Beginning of period balance$(5)$(2)
Provision for expected credit losses
(3,998)— 
Write-offs— — 
End of period balance$(4,003)$(2)
v3.24.1.u1
Inventory (Tables)
 3 Months Ended
Mar. 31, 2024
Inventory Disclosure [Abstract]  
Schedule of Components of Inventory
The components of inventory are as follows (in thousands):
March 31,
2024		December 31,
2023
Raw materials$28,237 $30,452 
Work-in-process699 275 
Finished goods56,787 65,413 
Total inventory$85,723 $96,140 
v3.24.1.u1
Goodwill and Intangible Assets, Net (Tables)
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
The changes in goodwill by reportable segment are outlined below (in thousands):
Alarm.comOtherTotal
Balance as of January 1, 2024
$154,498 $— $154,498 
Foreign currency translation adjustment (65)— (65)
Balance as of March 31, 2024$154,433 $— $154,433 
Schedule of Intangible Assets
The following table reflects changes in the net carrying amount of the components of intangible assets (in thousands):
Customer
Relationships		Developed
Technology		Trade NameCapitalized Software Development CostsTotal
Balance as of January 1, 2024
$39,294 $37,174 $1,217 $879 $78,564 
Intangible assets acquired— — — — — 
Capitalized software development costs — — — 479 479 
Amortization(2,417)(2,053)(207)(8)(4,685)
Balance as of March 31, 2024$36,877 $35,121 $1,010 $1,350 $74,358 
The following tables reflect the weighted average remaining life and carrying value of finite-lived intangible assets (in thousands, except weighted-average remaining life):
 March 31, 2024
 Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Value		Weighted-
Average
Remaining Life
(in years)
Customer relationships$128,280 $(91,403)$36,877 5.9
Developed technology69,731 (34,610)35,121 4.5
Trade name4,474 (3,464)1,010 2.6
Capitalized software development costs1,361 (11)1,350 3.2
Total intangible assets$203,846 $(129,488)$74,358 5.2
 December 31, 2023
 Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Value		Weighted-
Average
Remaining Life
(in years)
Customer relationships$128,280 $(88,986)$39,294 6.2
Developed technology70,061 (32,887)37,174 4.7
Trade name4,474 (3,257)1,217 2.6
Capitalized software development costs882 (3)879 3.3
Total intangible assets$203,697 $(125,133)$78,564 5.4
v3.24.1.u1
Other Assets (Tables)
 3 Months Ended
Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Changes in Allowance for Credit Losses for Accounts Receivable
The changes in our allowance for credit losses for accounts receivable are as follows (in thousands):
Three Months Ended
March 31, 2024		Three Months Ended
March 31, 2023
 Alarm.com
and Certain
Subsidiaries		All Other
Subsidiaries		 Alarm.com
and Certain
Subsidiaries		All Other
Subsidiaries
Beginning of period balance$(3,723)$(141)$(2,755)$(80)
(Provision for) / recovery of expected credit losses(287)33 (506)(34)
Write-offs44 20 159 17 
End of period balance$(3,966)$(88)$(3,102)$(97)
The changes in our allowance for credit losses for notes receivable are as follows (in thousands):
Three Months Ended
March 31, 2024		Three Months Ended
March 31, 2023
Beginning of period balance$(5)$(2)
Provision for expected credit losses
(3,998)— 
Write-offs— — 
End of period balance$(4,003)$(2)
Schedule of Financing Receivable Credit Quality Indicators
We manage our notes receivables using delinquency as a key credit quality indicator. The following tables reflect the current and delinquent notes receivable by class of financing receivables and by year of origination (in thousands):
March 31, 2024
Loan Receivables:20242023202220212020PriorTotal
Current$500 $150 $1,500 $— $1,027 $4,000 $7,177 
30-59 days past due— — — — — — — 
60-89 days past due— — — — — — — 
90-119 days past due— — — — — — — 
120+ days past due— — — — — — — 
Total$500 $150 $1,500 $— $1,027 $4,000 $7,177 

December 31, 2023
Loan Receivables:20232022202120202019PriorTotal
Current$150 $1,500 $— $1,039 $— $4,524 $7,213 
30-59 days past due— — — — — — — 
60-89 days past due— — — — — — — 
90-119 days past due— — — — — — — 
120+ days past due— — — — — — — 
Total$150 $1,500 $— $1,039 $— $4,524 $7,213 
v3.24.1.u1
Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2024
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis
The following tables present our assets and liabilities measured at fair value on a recurring basis (in thousands):
Fair Value Measurements on a Recurring Basis
Assets:Level 1Level 2Level 3Total
Money market accounts as of March 31, 2024
$723,877 $— $— $723,877 
Money market accounts as of December 31, 2023
679,734 — — 679,734 
Liabilities:
Contingent consideration liability from acquisition as of March 31, 2024
$— $— $2,092 $2,092 
Contingent consideration liability from acquisition as of December 31, 2023
— — 2,061 2,061 
Schedule of Fair Value of Level 3 Liability
The following table summarizes the change in fair value of the Level 3 contingent consideration liability with significant unobservable inputs (in thousands):
Three Months Ended
March 31,
20242023
Beginning of period balance$2,061 $— 
Acquired liabilities— 1,993 
Changes in fair value included in earnings31 13 
End of period balance$2,092 $2,006 
v3.24.1.u1
Leases (Tables)
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
Schedule of Supplemental Information Related to Leases
Supplemental information related to leases is presented in the table below (in thousands, except weighted-average term and discount rate):
Three Months Ended
March 31,
20242023
Operating lease cost$2,976 $2,750 
Cash paid for amounts included in the measurement of operating lease liabilities3,221 3,362 
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities2,643 3,927 
March 31,
2024		December 31,
2023
Weighted-average remaining lease term — operating leases3.1 years3.0 years
Weighted-average discount rate — operating leases5.2 %4.9 %
Schedule of Maturities of Lease Liabilities
Maturities of lease liabilities are as follows (in thousands):
Year Ended December 31,
Operating Leases(1)
Remainder of 2024$10,561 
202512,454 
20267,827 
20272,500 
20281,841 
2029 and thereafter1,904 
Total lease payments37,087 
Less: imputed interest(2)
4,100 
Present value of lease liabilities$32,987 
_______________
(1)Excludes $3.6 million of legally binding minimum lease payments for leases executed but not yet commenced. There are no options to extend lease terms that were reasonably certain of being exercised included in these balances.
(2)Imputed interest was calculated using the incremental borrowing rate applicable for each lease.
v3.24.1.u1
Liabilities (Tables)
 3 Months Ended
Mar. 31, 2024
Payables and Accruals [Abstract]  
Schedule of Accounts Payable, Accrued Expenses and Other Current Liabilities
The components of accounts payable, accrued expenses and other current liabilities are as follows (in thousands):
March 31,
2024		December 31,
2023
Accounts payable$42,458 $39,038 
Accrued expenses16,563 21,559 
Income taxes payable 60,133 42,501 
Holdback liability from business combinations and asset acquisitions7,340 7,340 
Contingent consideration liability from acquisition
1,181 — 
Other current liabilities9,876 14,037 
Accounts payable, accrued expenses and other current liabilities$137,551 $124,475 

The components of other liabilities are as follows (in thousands):
March 31,
2024		December 31,
2023
Contingent consideration liability from acquisition$911 $2,061 
Other liabilities10,792 10,636 
Other liabilities$11,703 $12,697 
v3.24.1.u1
Debt, Commitments and Contingencies (Tables)
 3 Months Ended
Mar. 31, 2024
Debt, Commitments and Contingencies Disclosure [Abstract]  
Schedule of Carrying Values of Debt
The net carrying amount of the liability component of the 2026 Notes is as follows (in thousands):
March 31,
2024		December 31,
2023
Principal$500,000 $500,000 
Unamortized debt issuance costs(5,695)(6,485)
Net carrying amount$494,305 $493,515 

Interest expense related to the 2026 Notes is as follows (in thousands):
Three Months Ended
March 31,
20242023
Amortization of debt issuance costs$790 $784 
Total interest expense$790 $784 
v3.24.1.u1
Stock-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock-Based Compensation Expense
Stock-based compensation expense is included in the following line items in the condensed consolidated statements of operations (in thousands):
 Three Months Ended
March 31,
 20242023
Cost of hardware and other revenue
$1 $— 
Sales and marketing755 1,032 
General and administrative3,181 3,145 
Research and development7,331 8,509 
Total stock-based compensation expense$11,268 $12,686 

The following table summarizes the components of non-cash stock-based compensation expense (in thousands):
 Three Months Ended
March 31,
 20242023
Stock options$987 $912 
Restricted stock units10,230 11,722 
Employee stock purchase plan51 52 
Total stock-based compensation expense$11,268 $12,686 
Tax windfall benefit / (shortfall) from stock-based awards
$486 $(22)
v3.24.1.u1
Earnings Per Share (Tables)
 3 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Schedule of Components of Basic and Diluted EPS
The components of basic and diluted earnings per share are as follows (in thousands, except share and per share amounts):
 Three Months Ended
March 31,
Numerator: 20242023
Net income$23,404 $14,207 
Net loss attributable to redeemable noncontrolling interests191 209 
Net income attributable to common stockholders - basic (A)23,595 14,416 
Add back interest expense, net of tax, attributable to convertible senior notes594 590 
Net income attributable to common stockholders - diluted (B)$24,189 $15,006 
Denominator:
Weighted average common shares outstanding — basic (C)49,963,265 49,584,890 
Dilutive effect of convertible senior notes, stock options and restricted stock units5,083,822 4,711,431 
Weighted average common shares outstanding — diluted (D)55,047,087 54,296,321 
Net income per share:
Basic (A/C)$0.47 $0.29 
Diluted (B/D)$0.44 $0.28 
Schedule of Securities Excluded from Calculation of Diluted Weighted Average Common Shares Outstanding Due to Anti-dilutive Effect
The following securities have been excluded from the calculation of diluted weighted average common shares outstanding as the inclusion of these securities would have an anti-dilutive effect:
 Three Months Ended
March 31,
 20242023
Stock options329,749 431,052 
Restricted stock units61,150 355,047 
v3.24.1.u1
Segment Information (Tables)
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Schedule of Reportable Segment Operational Data The reportable segment operational data is presented in the tables below (in thousands):
Three Months Ended March 31, 2024
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$137,859 $12,485 $— $— $150,344 
Hardware and other revenue
72,364 1,398 (686)(137)72,939 
Total revenue
210,223 13,883 (686)(137)223,283 
Operating income / (loss)
23,574 (4,742)(135)28 18,725 
Three Months Ended March 31, 2023
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$125,652 $9,742 $— $— $135,394 
Hardware and other revenue
73,496 1,718 (777)(115)74,322 
Total revenue
199,148 11,460 (777)(115)209,716 
Operating income / (loss)
13,931 (5,192)5 75 8,819 
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
Assets as of March 31, 2024$1,538,429 $64,350 $(115,786)$(11)$1,486,982 
Assets as of December 31, 20231,477,674 73,621 (111,725)(7)1,439,563 
v3.24.1.u1
Revenue from Contracts with Customers - Contract Asset and Liability Balances (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Change In Contract With Customer, Asset [Roll Forward]    
Beginning of period balance $ 9,099 $ 13,975
Commission costs and upfront payments to a customer capitalized in period 3,112 1,673
Amortization of contract assets (1,745) (1,769)
End of period balance 10,466 13,879
Change In Contract With Customer, Liability [Roll Forward]    
Beginning of period balance 22,885 18,332
Revenue deferred in period 6,424 5,940
Revenue recognized from amounts included in contract liabilities (5,097) (4,041)
End of period balance $ 24,212 $ 20,231
v3.24.1.u1
Accounts Receivable, Net - Schedule of Components of Accounts Receivable (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Receivables [Abstract]    
Accounts receivable $ 135,100 $ 136,769
Allowance for credit losses (4,054) (3,864)
Allowance for product returns (2,595) (2,279)
Accounts receivable, net $ 128,451 $ 130,626
v3.24.1.u1
Accounts Receivable, Net - Narrative (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
portfolio_segment
Mar. 31, 2023
USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Provision for expected credit losses $ 254 $ 540
Reserve for product returns $ 1,149 1,151
Accounts receivable, number of portfolio segments | portfolio_segment 2  
Credit loss expense (reversal) for accounts and notes receivable $ 4,000 500
Hardware and other revenue    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Reserve for product returns $ 1,100 $ 1,200
v3.24.1.u1
Accounts Receivable, Net - Schedule of Credit Losses (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning of period balance $ (3,864)  
(Provision for) / recovery of expected credit losses (254) $ (540)
End of period balance (4,054)  
Alarm.com and Certain Subsidiaries    
Accounts Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning of period balance (3,723) (2,755)
(Provision for) / recovery of expected credit losses (287) (506)
Write-offs 44 159
End of period balance (3,966) (3,102)
All Other Subsidiaries    
Accounts Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning of period balance (141) (80)
(Provision for) / recovery of expected credit losses 33 (34)
Write-offs 20 17
End of period balance $ (88) $ (97)
v3.24.1.u1
Inventory - Schedule of Components of Inventory (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Inventory Disclosure [Abstract]    
Raw materials $ 28,237 $ 30,452
Work-in-process 699 275
Finished goods 56,787 65,413
Total inventory $ 85,723 $ 96,140
v3.24.1.u1
Inventory - Narrative (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
Inventory Disclosure [Abstract]  
Inventory write-down $ 1.4
v3.24.1.u1
Acquisitions (Details) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
Apr. 21, 2023
Jan. 18, 2023
Mar. 31, 2023
Dec. 31, 2023
EBS        
Business Acquisition [Line Items]        
Percentage of business acquired   100.00%    
Cash paid to acquire business   $ 9.8    
Holdback consideration   2.2    
Additional earn-out   2.5    
Contingent consideration liability from acquisition   $ 2.0    
Vintra        
Business Acquisition [Line Items]        
Payments to acquire developed technology $ 5.5      
Asset acquisition, consideration transferred, deduction, loan amount     $ 0.3  
Asset acquisition, consideration transferred, holdback amount 1.0      
Transaction costs       $ 0.4
Asset acquisition consideration $ 7.1      
Weighted-average estimated useful life of intangible assets acquired (years) 5 years      
Consideration transferred, property and equipment $ 0.1      
v3.24.1.u1
Goodwill and Intangible Assets, Net - Schedule of Goodwill (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
Goodwill [Roll Forward]  
Beginning balance $ 154,498
Foreign currency translation adjustment (65)
Ending balance 154,433
Alarm.com  
Goodwill [Roll Forward]  
Beginning balance 154,498
Foreign currency translation adjustment (65)
Ending balance 154,433
Other  
Goodwill [Roll Forward]  
Beginning balance 0
Foreign currency translation adjustment 0
Ending balance $ 0
v3.24.1.u1
Goodwill and Intangible Assets, Net - Schedule of Net Carrying Amount of Intangible Assets (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Finite-lived Intangible Assets [Roll Forward]    
Beginning balance $ 78,564  
Intangible assets acquired 0  
Capitalized software development costs 479  
Amortization (4,685) $ (4,600)
Ending balance 74,358  
Customer Relationships    
Finite-lived Intangible Assets [Roll Forward]    
Beginning balance 39,294  
Intangible assets acquired 0  
Capitalized software development costs 0  
Amortization (2,417)  
Ending balance 36,877  
Developed Technology    
Finite-lived Intangible Assets [Roll Forward]    
Beginning balance 37,174  
Intangible assets acquired 0  
Capitalized software development costs 0  
Amortization (2,053)  
Ending balance 35,121  
Trade Name    
Finite-lived Intangible Assets [Roll Forward]    
Beginning balance 1,217  
Intangible assets acquired 0  
Capitalized software development costs 0  
Amortization (207)  
Ending balance 1,010  
Capitalized Software Development Costs    
Finite-lived Intangible Assets [Roll Forward]    
Beginning balance 879  
Intangible assets acquired 0  
Capitalized software development costs 479  
Amortization (8)  
Ending balance $ 1,350  
v3.24.1.u1
Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Amortization $ 4,685,000 $ 4,600,000
Impairment of long-lived assets 0 $ 0
Alarm.com    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets written off $ 300,000  
v3.24.1.u1
Goodwill and Intangible Assets, Net - Schedule of Weighted Average Remaining Life and Carrying Value of Finite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 203,846 $ 203,697
Accumulated Amortization (129,488) (125,133)
Net Carrying Value $ 74,358 $ 78,564
Weighted Average    
Finite-Lived Intangible Assets [Line Items]    
Weighted- Average Remaining Life (in years) 5 years 2 months 12 days 5 years 4 months 24 days
Customer Relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 128,280 $ 128,280
Accumulated Amortization (91,403) (88,986)
Net Carrying Value $ 36,877 $ 39,294
Customer Relationships | Weighted Average    
Finite-Lived Intangible Assets [Line Items]    
Weighted- Average Remaining Life (in years) 5 years 10 months 24 days 6 years 2 months 12 days
Developed Technology    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 69,731 $ 70,061
Accumulated Amortization (34,610) (32,887)
Net Carrying Value $ 35,121 $ 37,174
Developed Technology | Weighted Average    
Finite-Lived Intangible Assets [Line Items]    
Weighted- Average Remaining Life (in years) 4 years 6 months 4 years 8 months 12 days
Trade Name    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 4,474 $ 4,474
Accumulated Amortization (3,464) (3,257)
Net Carrying Value $ 1,010 $ 1,217
Trade Name | Weighted Average    
Finite-Lived Intangible Assets [Line Items]    
Weighted- Average Remaining Life (in years) 2 years 7 months 6 days 2 years 7 months 6 days
Capitalized Software Development Costs    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 1,361 $ 882
Accumulated Amortization (11) (3)
Net Carrying Value $ 1,350 $ 879
Capitalized Software Development Costs | Weighted Average    
Finite-Lived Intangible Assets [Line Items]    
Weighted- Average Remaining Life (in years) 3 years 2 months 12 days 3 years 3 months 18 days
v3.24.1.u1
Other Assets - Loan to a Distribution Partner (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Provision for credit losses on notes receivable $ 3,998 $ 0    
Revenue from distribution partners 223,283 209,716    
Distribution Partner | Loans Receivable        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Debt instrument, interest rate       12.00%
Provision for credit losses on notes receivable 4,000      
Loan receivable, interest income reduction 500 0    
Revenue from distribution partners 700 $ 800    
Distribution Partner | Loans Receivable | Other Assets        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loan receivable, noncurrent $ 4,000   $ 4,500  
v3.24.1.u1
Other Assets - Loan to a Service Provider Partner (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Jul. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total revenue $ 223,283 $ 209,716    
Service Provider | Loans Receivable        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Notes receivable, maximum available       $ 2,500
Debt instrument, interest rate       9.00%
Loan balance 1,000   $ 1,000  
Total revenue $ 100 $ 100    
v3.24.1.u1
Other Assets - Loan to a Technology Partner (Details) - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Jun. 30, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Total revenue $ 223,283,000 $ 209,716,000    
Technology Partner Two | Loans Receivable        
Accounts, Notes, Loans and Financing Receivable [Line Items]        
Loan balance 1,500,000   $ 1,500,000 $ 1,500,000
Debt instrument, interest rate       6.50%
Total revenue $ 0 $ 0    
v3.24.1.u1
Other Assets - Investment in a Hardware Supplier (Details) - Hardware Supplier - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Jul. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Conversion of outstanding notes receivable $ 5.6 $ 5.6 $ 5.6
Conversion of outstanding notes receivable (in shares)     9,520,832
v3.24.1.u1
Other Assets - Investments in a Technology Partner (Details) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended
Dec. 31, 2022
Feb. 28, 2021
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Cash purchase of shares     $ 0 $ 200  
Technology Partner          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Cash purchase of shares   $ 5,000      
Investment     5,700   $ 5,700
Technology Partner | Series B-2 Preferred Stock          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Shares purchased (in shares)   1,000,000      
Technology Partner Three          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Cash purchase of shares $ 5,100        
Investment     $ 5,100   $ 5,100
Technology Partner Three | Series A Preferred Stock          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Shares purchased (in shares) 4,231,717        
v3.24.1.u1
Other Assets - Allowance For Credit Losses Narrative (Details)
 3 Months Ended
Mar. 31, 2024
USD ($)
portfolio_segment
contract
Mar. 31, 2023
USD ($)
Dec. 31, 2023
USD ($)
contract
Financing Receivable, Nonaccrual [Line Items]      
Number of portfolio segments | portfolio_segment 1    
Interest income recognized for notes receivables in nonaccrual status $ 0 $ 0  
Prepaid expense 16,900,000   $ 14,600,000
Distribution Partner | Loans Receivable      
Financing Receivable, Nonaccrual [Line Items]      
Loan receivable, interest income reduction $ 500,000 $ 0  
Notes Receivable      
Financing Receivable, Nonaccrual [Line Items]      
Nonaccrual notes receivable, number of contracts | contract 1   0
Nonaccrual notes receivable $ 4,000,000    
Nonaccrual notes receivable without related allowance for credit loss 0   $ 0
Notes receivable 90 days or more past due still accruing 0   0
Other Current Assets and Other Assets      
Financing Receivable, Nonaccrual [Line Items]      
Interest receivable $ 100,000   $ 100,000
v3.24.1.u1
Other Assets - Schedule of Notes Receivable Credit Losses (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Provision for expected credit losses $ (3,998) $ 0
Loans Receivable    
Financing Receivable, Allowance for Credit Loss [Roll Forward]    
Beginning of period balance (5) (2)
Provision for expected credit losses (3,998) 0
Write-offs 0 0
End of period balance $ (4,003) $ (2)
v3.24.1.u1
Other Assets - Credit Quality Indicators (Details) - Loans Receivable - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Originated in fiscal year $ 500 $ 150
Originated one year before current fiscal year 150 1,500
Originated two years before current fiscal year 1,500 0
Originated three years before current fiscal year 0 1,039
Originated four years before current fiscal year 1,027 0
Prior 4,000 4,524
Total 7,177 7,213
Current    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Originated in fiscal year 500 150
Originated one year before current fiscal year 150 1,500
Originated two years before current fiscal year 1,500 0
Originated three years before current fiscal year 0 1,039
Originated four years before current fiscal year 1,027 0
Prior 4,000 4,524
Total 7,177 7,213
30-59 days past due    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Originated in fiscal year 0 0
Originated one year before current fiscal year 0 0
Originated two years before current fiscal year 0 0
Originated three years before current fiscal year 0 0
Originated four years before current fiscal year 0 0
Prior 0 0
Total 0 0
60-89 days past due    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Originated in fiscal year 0 0
Originated one year before current fiscal year 0 0
Originated two years before current fiscal year 0 0
Originated three years before current fiscal year 0 0
Originated four years before current fiscal year 0 0
Prior 0 0
Total 0 0
90-119 days past due    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Originated in fiscal year 0 0
Originated one year before current fiscal year 0 0
Originated two years before current fiscal year 0 0
Originated three years before current fiscal year 0 0
Originated four years before current fiscal year 0 0
Prior 0 0
Total 0 0
120+ days past due    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Originated in fiscal year 0 0
Originated one year before current fiscal year 0 0
Originated two years before current fiscal year 0 0
Originated three years before current fiscal year 0 0
Originated four years before current fiscal year 0 0
Prior 0 0
Total $ 0 $ 0
v3.24.1.u1
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market accounts $ 723,877 $ 679,734
Contingent consideration liability from acquisition 2,092 2,061
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market accounts 723,877 679,734
Contingent consideration liability from acquisition 0 0
Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market accounts 0 0
Contingent consideration liability from acquisition 0 0
Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market accounts 0 0
Contingent consideration liability from acquisition $ 2,092 $ 2,061
v3.24.1.u1
Fair Value Measurements - Summary of Fair Value of Level 3 Subsidiary Unit Awards and Contingent Consideration (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Beginning of period balance $ 2,061 $ 0
Acquired liabilities 0 1,993
Changes in fair value included in earnings 31 13
End of period balance $ 2,092 $ 2,006
v3.24.1.u1
Fair Value Measurements - Narrative (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Mar. 31, 2023
USD ($)
Jan. 18, 2023
USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Cash and cash equivalents $ 747,877 $ 696,983 $ 606,428  
Other assets 35,381 39,500    
Other current assets, net $ 35,812 33,031    
Expected Achievement | Weighted Average        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Measurement input 0.895      
Expected Achievement | Minimum        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Measurement input 0.800      
Expected Achievement | Maximum        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Measurement input 0.990      
Discount Rate | Weighted Average        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Measurement input 0.055      
Discount Rate | Minimum        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Measurement input 0.054      
Discount Rate | Maximum        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Measurement input 0.057      
EBS        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Percentage of business acquired       100.00%
Additional earn-out       $ 2,500
Contingent consideration liability from acquisition       $ 2,000
Money market accounts        
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]        
Cash and cash equivalents $ 718,700 675,600    
Other assets 4,000 $ 4,100    
Other current assets, net $ 1,200      
v3.24.1.u1
Leases - Narrative (Details) - USD ($)
Mar. 31, 2024
Dec. 31, 2023
Lessee, Lease, Description [Line Items]    
Available leasehold tenant improvement allowance $ 12,100,000  
Finance leases 0 $ 0
Subleases $ 0 $ 0
Five Year Renewal Option    
Lessee, Lease, Description [Line Items]    
Lease renewal term 5 years  
v3.24.1.u1
Leases - Supplemental Information Related to Leases (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Leases [Abstract]      
Operating lease cost $ 2,976 $ 2,750  
Cash paid for amounts included in the measurement of operating lease liabilities 3,221 3,362  
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities $ 2,643 $ 3,927  
Weighted-average remaining lease term — operating leases 3 years 1 month 6 days   3 years
Weighted-average discount rate — operating leases 5.20%   4.90%
v3.24.1.u1
Leases - Maturities of Lease Liabilities (Details)
Mar. 31, 2024
USD ($)
Maturities of Lease Liabilities Under Topic 842  
Remainder of 2024 $ 10,561,000
2025 12,454,000
2026 7,827,000
2027 2,500,000
2028 1,841,000
2029 and thereafter 1,904,000
Total lease payments 37,087,000
Less: imputed interest 4,100,000
Present value of lease liabilities 32,987,000
Legally binding minimum lease payments on leases not yet commenced 3,600,000
Amount for options to extend lease $ 0
v3.24.1.u1
Liabilities - Components of Accounts Payable, Accrued Expenses, and Other Current Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Payables and Accruals [Abstract]    
Accounts payable $ 42,458 $ 39,038
Accrued expenses 16,563 21,559
Income taxes payable 60,133 42,501
Holdback liability from business combinations and asset acquisitions 7,340 7,340
Contingent consideration liability from acquisition 1,181 0
Other current liabilities 9,876 14,037
Accounts payable, accrued expenses and other current liabilities $ 137,551 $ 124,475
v3.24.1.u1
Liabilities - Other Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Payables and Accruals [Abstract]    
Contingent consideration liability from acquisition $ 911 $ 2,061
Other liabilities 10,792 10,636
Other liabilities $ 11,703 $ 12,697
v3.24.1.u1
Debt, Commitments and Contingencies - Convertible Senior Notes (Details)
Jan. 20, 2021
USD ($)
day
$ / shares
Mar. 31, 2024
USD ($)
$ / shares
Dec. 31, 2023
USD ($)
Debt Instrument [Line Items]      
Share price (in dollars per share) | $ / shares   $ 72.47  
Convertible Senior Notes due 2026      
Debt Instrument [Line Items]      
Proceeds from convertible debt | $ $ 484,300,000    
Debt issuance costs | $ $ 15,700,000    
Debt instrument, redemption price, percentage 100.00%    
Conversion ratio 0.0067939    
Conversion price (in dollars per share) | $ / shares $ 147.19    
Convertible Senior Notes due 2026 | Redemption period one      
Debt Instrument [Line Items]      
Debt instrument, redemption price, percentage 100.00%    
Threshold percentage stock price trigger 130.00%    
Trading days threshold 20    
Consecutive trading days threshold 30    
Convertible Senior Notes due 2026 | Redemption period two      
Debt Instrument [Line Items]      
Threshold percentage stock price trigger 130.00%    
Trading days threshold 20    
Consecutive trading days threshold 30    
Number of business days 5    
Number of consecutive trading days 10    
Percentage of last reported sale price threshold 98.00%    
Senior Notes | Convertible Senior Notes due 2026      
Debt Instrument [Line Items]      
Debt instrument, face amount | $ $ 500,000,000 $ 500,000,000  
Debt instrument, interest rate 0.00%    
Effective interest rate 0.60%    
Debt instrument, fair value | $   $ 461,200,000 $ 444,800,000
Line of Credit | 2017 Facility | Revolving Credit Facility      
Debt Instrument [Line Items]      
Long-term debt | $ $ 110,000,000    
v3.24.1.u1
Debt, Commitments and Contingencies - Carrying Amount of Liability Component (Details) - Convertible Senior Notes due 2026 - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Principal $ 500,000 $ 500,000
Unamortized debt issuance costs (5,695) (6,485)
Net carrying amount $ 494,305 $ 493,515
v3.24.1.u1
Debt, Commitments and Contingencies - Summary of Interest Expense (Details) - Convertible Senior Notes due 2026 - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Debt Instrument [Line Items]    
Amortization of debt issuance costs $ 790 $ 784
Total interest expense $ 790 $ 784
v3.24.1.u1
Debt, Commitments and Contingencies - Legal Proceedings (Details) - Pending Litigation
 1 Months Ended 3 Months Ended 12 Months Ended
Jan. 10, 2022
patent
Jul. 28, 2021
patent
Jul. 22, 2021
patent
Jan. 31, 2021
patent
claim
Oct. 31, 2019
patent
Mar. 31, 2024
patent
Dec. 31, 2018
patent
EcoFactor, Inc. vs. Alarm.com Holdings, Inc.              
Loss Contingencies [Line Items]              
Number of patents allegedly infringed upon by the company 5       2    
Number of patents under ex parte reexamination           3  
Causam Enterprises, Inc vs Alarm.com Holdings, Inc              
Loss Contingencies [Line Items]              
Number of patents allegedly infringed upon by the company     4        
Causam Enterprises, Inc vs Alarm.com Holdings, Inc and EnergyHub, Inc              
Loss Contingencies [Line Items]              
Number of patents allegedly infringed upon by the company   4          
Ubiquitous Connectivity, LP vs. Alarm.com Holdings, Inc              
Loss Contingencies [Line Items]              
Number of patents allegedly infringed upon by the company       4     2
Number of claims deemed unpatentable | claim       42      
Number of claims | claim       46      
v3.24.1.u1
Stockholders' Equity (Details) - February 2023 Repurchase Program - USD ($)
 3 Months Ended
Feb. 15, 2023
Mar. 31, 2024
Mar. 31, 2023
Class of Stock [Line Items]      
Authorized repurchase amount $ 100,000,000    
Stock repurchase program, period 2 years    
Purchases of treasury stock (in shares)   0 0
v3.24.1.u1
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense $ 11,268 $ 12,686
Tax windfall benefit / (shortfall) from stock-based awards 486 (22)
Stock options    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense 987 912
Restricted stock units    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense 10,230 11,722
Employee stock purchase plan    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense 51 52
Cost of hardware and other revenue    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense 1 0
Sales and marketing    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense 755 1,032
General and administrative    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense 3,181 3,145
Research and development    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Total stock-based compensation expense $ 7,331 $ 8,509
v3.24.1.u1
Stock-Based Compensation - Narrative (Details) - shares
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Stock options    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock options exercised (in shares) 128,526 70,951
Restricted stock units    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Restricted stock units granted (in shares) 88,150 82,875
Restricted stock units vested (in shares) 81,696 167,085
Performance-based restricted stock units    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Restricted stock units granted (in shares) 0 0
Restricted stock units vested (in shares) 0 9,000
2015 Equity Incentive Plan | Stock options    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Stock options granted (in shares) 6,000 21,400
v3.24.1.u1
Earnings Per Share - Components of Basic and Diluted EPS (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Earnings Per Share [Abstract]    
Net income $ 23,404 $ 14,207
Net loss attributable to redeemable noncontrolling interests 191 209
Net income attributable to common stockholders 23,595 14,416
Add back interest expense, net of tax, attributable to convertible senior notes 594 590
Net income attributable to common stockholders - diluted $ 24,189 $ 15,006
Weighted average common shares outstanding - basic (in shares) 49,963,265 49,584,890
Dilutive effect of convertible senior notes, stock options and restricted stock units (in shares) 5,083,822 4,711,431
Weighted average common shares outstanding - diluted (in shares) 55,047,087 54,296,321
Net income per share:    
Basic (in dollars per share) $ 0.47 $ 0.29
Diluted (in dollars per share) $ 0.44 $ 0.28
v3.24.1.u1
Earnings Per Share - Schedule of Securities Excluded from Calculation of Diluted Weighted Average Common Shares Outstanding Due to Anti-dilutive Effect (Details) - shares
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Stock options    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive securities excluded from the calculation of earnings per share (in shares) 329,749 431,052
Restricted stock units    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Anti-dilutive securities excluded from the calculation of earnings per share (in shares) 61,150 355,047
v3.24.1.u1
Earnings Per Share - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Dilutive effect of convertible senior notes (in shares) 5,083,822 4,711,431
Debt issuance cost amortization included $ 594 $ 590
Convertible Senior Notes due 2026    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Dilutive effect of convertible senior notes (in shares) 3,396,950 3,396,950
OpenEye    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Percentage of business acquired 86.00%  
Noonlight    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Percentage of business acquired 85.00%  
v3.24.1.u1
Significant Service Providers and Distributors (Details) - Service Provider Concentration Risk - Revenue
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
10 Largest Service Providers    
Concentration Risk [Line Items]    
Concentration risk percentage 48.00% 50.00%
Service Provider A | Minimum    
Concentration Risk [Line Items]    
Concentration risk percentage 15.00% 15.00%
Service Provider A | Maximum    
Concentration Risk [Line Items]    
Concentration risk percentage 20.00% 20.00%
v3.24.1.u1
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Jan. 25, 2024
Dec. 31, 2023
Operating Loss Carryforwards [Line Items]        
Provision (benefit) for income taxes $ 2,747 $ (1,222)    
Effective income tax rate (percent) 10.50% (9.40%)    
Valuation allowance $ 3,700     $ 3,800
Accrued interest and penalties related to unrecognized tax benefits 600     $ 800
Income tax examination, increase (decrease) in liability from prior year     $ 600  
Income tax benefit, prior year taxes 1,700      
Research Tax Credit Carryforward        
Operating Loss Carryforwards [Line Items]        
Unrecognized tax benefits, increase (decrease) $ (1,900) $ 700    
v3.24.1.u1
Segment Information (Details)
 3 Months Ended
Mar. 31, 2024
USD ($)
segment
Mar. 31, 2023
USD ($)
Dec. 31, 2023
USD ($)
Segment Reporting Information [Line Items]      
Number of reportable segments | segment 2    
Total revenue $ 223,283,000 $ 209,716,000  
Operating income / (loss) 18,725,000 8,819,000  
Total assets 1,486,982,000   $ 1,439,563,000
Amortization and depreciation 7,337,000 7,673,000  
Operating Segments | Alarm.com      
Segment Reporting Information [Line Items]      
Total revenue 210,223,000 199,148,000  
Operating income / (loss) 23,574,000 13,931,000  
Total assets 1,538,429,000   1,477,674,000
Amortization and depreciation 7,100,000 7,400,000  
Additions to property and equipment 3,900,000 3,000,000  
Operating Segments | Other      
Segment Reporting Information [Line Items]      
Total revenue 13,883,000 11,460,000  
Operating income / (loss) (4,742,000) (5,192,000)  
Total assets 64,350,000   73,621,000
Amortization and depreciation 200,000 300,000  
Additions to property and equipment 100,000 100,000  
Intersegment Eliminations | Alarm.com      
Segment Reporting Information [Line Items]      
Total revenue (686,000) (777,000)  
Operating income / (loss) (135,000) 5,000  
Total assets (115,786,000)   (111,725,000)
Intersegment Eliminations | Other      
Segment Reporting Information [Line Items]      
Total revenue (137,000) (115,000)  
Operating income / (loss) 28,000 $ 75,000  
Total assets $ (11,000)   $ (7,000)
Segment Concentration Risk | Revenue | Alarm.com      
Segment Reporting Information [Line Items]      
Concentration risk percentage 94.00% 95.00%  
SaaS and license revenue      
Segment Reporting Information [Line Items]      
Total revenue $ 150,344,000 $ 135,394,000  
SaaS and license revenue | Operating Segments | Alarm.com      
Segment Reporting Information [Line Items]      
Total revenue 137,859,000 125,652,000  
SaaS and license revenue | Operating Segments | Other      
Segment Reporting Information [Line Items]      
Total revenue 12,485,000 9,742,000  
SaaS and license revenue | Intersegment Eliminations | Alarm.com      
Segment Reporting Information [Line Items]      
Total revenue 0 0  
SaaS and license revenue | Intersegment Eliminations | Other      
Segment Reporting Information [Line Items]      
Total revenue 0 0  
Hardware and other revenue      
Segment Reporting Information [Line Items]      
Total revenue 72,939,000 74,322,000  
Hardware and other revenue | Operating Segments | Alarm.com      
Segment Reporting Information [Line Items]      
Total revenue 72,364,000 73,496,000  
Hardware and other revenue | Operating Segments | Other      
Segment Reporting Information [Line Items]      
Total revenue 1,398,000 1,718,000  
Hardware and other revenue | Intersegment Eliminations | Alarm.com      
Segment Reporting Information [Line Items]      
Total revenue (686,000) (777,000)  
Hardware and other revenue | Intersegment Eliminations | Other      
Segment Reporting Information [Line Items]      
Total revenue (137,000) (115,000)  
Software License Revenue | Alarm.com      
Segment Reporting Information [Line Items]      
Total revenue 5,200,000 6,200,000  
Software License Revenue | Other      
Segment Reporting Information [Line Items]      
Total revenue $ 0 $ 0