ALARM.COM HOLDINGS, INC., 10-K filed on 2/20/2025
Annual Report
v3.25.0.1
Cover Page - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Feb. 13, 2025
Jun. 28, 2024
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 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 Well- known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Public Float     $ 2,040
Entity Common Stock, Shares Outstanding (in shares)   49,646,941  
Documents Incorporated by Reference
Portions of the registrant’s proxy statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A in connection with the registrant’s 2025 Annual Meeting of Stockholders, which will be filed subsequent to the date hereof, are incorporated by reference into Part III of this Form 10-K. Such proxy statement will be filed with the Securities and Exchange Commission not later than 120 days following the end of the registrant’s fiscal year ended December 31, 2024.
    
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) FY    
Amendment Flag false    
v3.25.0.1
Audit Information
 12 Months Ended
Dec. 31, 2024
Audit Information [Abstract]  
Auditor Firm ID 238
Auditor Name PricewaterhouseCoopers LLP
Auditor Location Washington, District Of Columbia
v3.25.0.1
Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Revenue:                      
Total revenue $ 242,240 $ 240,497 $ 233,807 $ 223,283 $ 226,237 $ 221,854 $ 223,875 $ 209,716 $ 939,827 $ 881,682 $ 842,559
Cost of revenue:                      
Total cost of revenue 83,604 84,748 81,282 76,515 81,215 81,405 86,367 76,172 326,149 [1] 325,159 [1] 342,581 [1]
Operating expenses:                      
Sales and marketing                 111,242 100,226 92,748
General and administrative                 108,879 112,930 106,688
Research and development                 255,878 245,114 218,635
Amortization and depreciation                 29,131 31,424 30,870
Total operating expenses                 505,130 489,694 448,941
Operating income                 108,548 66,829 51,037
Interest expense                 (11,426) (3,429) (3,144)
Interest income                 47,359 29,801 8,759
Other (expense) / income, net                 (2,674) 4,624 (59)
Income before income taxes                 141,807 97,825 56,593
Provision for income taxes                 19,294 17,485 962
Net income $ 30,133 $ 36,456 $ 32,520 $ 23,404 $ 31,171 $ 19,351 $ 15,611 $ 14,207 122,513 80,340 55,631
Net loss attributable to redeemable noncontrolling interests                 1,603 703 707
Net income attributable to common stockholders                 $ 124,116 $ 81,043 $ 56,338
Net income attributable to common stockholders per share:                      
Basic (in dollars per share) $ 0.61 $ 0.74 $ 0.67 $ 0.47 $ 0.63 $ 0.39 $ 0.32 $ 0.29 $ 2.50 $ 1.63 $ 1.13
Diluted (in dollars per share) $ 0.56 $ 0.67 $ 0.62 $ 0.44 $ 0.58 $ 0.37 $ 0.30 $ 0.28 $ 2.29 $ 1.53 $ 1.07
Weighted average common shares outstanding:                      
Basic (in shares)                 49,641,763 49,818,448 49,926,236
Diluted (in shares)                 57,993,019 54,625,434 54,932,757
SaaS and license revenue                      
Revenue:                      
Total revenue                 $ 631,198 $ 569,200 $ 520,377
Cost of revenue:                      
Total cost of revenue [1]                 89,512 85,898 73,897
Hardware and other revenue                      
Revenue:                      
Total revenue                 308,629 312,482 322,182
Cost of revenue:                      
Total cost of revenue [1]                 $ 236,637 $ 239,261 $ 268,684
[1] Exclusive of amortization and depreciation shown in operating expenses below.
v3.25.0.1
Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Statement of Comprehensive Income [Abstract]      
Net income $ 122,513 $ 80,340 $ 55,631
Other comprehensive (loss) / income      
Foreign currency translation adjustment (583) 1,398 0
Total other comprehensive (loss) / income (583) 1,398 0
Comprehensive income 121,930 81,738 55,631
Comprehensive loss attributable to redeemable noncontrolling interests 1,603 703 707
Comprehensive income attributable to common stockholders $ 123,533 $ 82,441 $ 56,338
v3.25.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 1,220,701 $ 696,983
Accounts receivable, net of allowance for credit losses of $3,870 and $3,864, and net of allowance for product returns of $2,448 and $2,279, as of December 31, 2024 and 2023, respectively 126,082 130,626
Inventory 87,435 96,140
Other current assets, net 47,374 33,031
Total current assets 1,481,592 956,780
Property and equipment, net 63,205 54,164
Intangible assets, net 63,159 78,564
Goodwill 154,211 154,498
Deferred tax assets 181,284 131,815
Operating lease right-of-use assets 53,425 24,242
Other assets, net of allowance for credit losses of $1 and $5 as of December 31, 2024 and 2023, respectively 41,332 39,500
Total assets 2,038,208 1,439,563
Current liabilities:    
Accounts payable, accrued expenses and other current liabilities 139,427 124,475
Accrued compensation 28,739 28,626
Deferred revenue 12,940 10,193
Operating lease liabilities 7,700 12,043
Total current liabilities 188,806 175,337
Deferred revenue 13,619 12,692
Convertible senior notes, net 983,477 493,515
Operating lease liabilities 65,534 20,468
Other liabilities 15,479 12,697
Total liabilities 1,266,915 714,709
Commitments and contingencies (Note 13)
Redeemable noncontrolling interests 44,747 36,308
Stockholders’ equity    
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding as of December 31, 2024 and 2023 0 0
Common stock, $0.01 par value, 300,000,000 shares authorized; 52,756,077 and 51,888,838 shares issued; and 49,618,346 and 49,868,175 shares outstanding as of December 31, 2024 and 2023, respectively 528 519
Additional paid-in capital 521,192 531,734
Treasury stock, at cost; 3,137,731 and 2,020,663 shares as of December 31, 2024 and 2023, respectively (186,291) (111,291)
Accumulated other comprehensive income 815 1,398
Retained earnings 390,302 266,186
Total stockholders’ equity 726,546 688,546
Total liabilities, redeemable noncontrolling interests and stockholders’ equity $ 2,038,208 $ 1,439,563
v3.25.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Accounts receivable, allowance for credit losses $ 3,870 $ 3,864
Allowance for product returns 2,448 2,279
Other assets, allowance for credit loss $ 1 $ 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) 52,756,077 51,888,838
Common stock, shares outstanding (in shares) 49,618,346 49,868,175
Treasury stock, shares repurchased (in shares) 3,137,731 2,020,663
v3.25.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Cash flows from operating activities:      
Net income $ 122,513 $ 80,340 $ 55,631
Adjustments to reconcile net income to net cash flows from operating activities:      
Provision for credit losses on accounts receivable 950 1,508 1,156
Reserve for product returns 3,187 4,399 4,746
Provision for / (recovery of) credit losses on notes receivable 3,996 3 (78)
Inventory write-down 0 1,420 0
Amortization on patents and tooling 847 1,213 1,359
Amortization and depreciation 29,131 31,424 30,870
Amortization of debt issuance costs 4,796 3,145 3,126
Amortization of operating leases 13,084 11,484 10,499
Deferred income taxes (34,496) (47,730) (55,039)
Change in fair value of contingent liability 108 68 0
Stock-based compensation 41,242 47,283 52,654
Gain from investment in unconsolidated entity (127) 0 (140)
Changes in operating assets and liabilities (net of business acquisitions):      
Accounts receivable 271 (10,536) (24,346)
Inventory 8,558 20,961 (40,308)
Other current and non-current assets (2,697) (1,338) (8,952)
Accounts payable, accrued expenses and other current liabilities 20,133 4,613 32,938
Deferred revenue 3,674 4,553 3,428
Operating lease liabilities (12,467) (13,947) (12,723)
Other liabilities 3,710 (2,898) 2,080
Cash flows from operating activities 206,413 135,965 56,901
Cash flows used in investing activities:      
Business acquisition, net of cash acquired 0 (9,696) (31,730)
Additions to property and equipment (10,133) (7,517) (28,640)
Issuances of notes receivable (500) (450) (3,000)
Capitalized software development costs (1,643) (743) 0
Receipt of payments on notes receivable 51 55 61
Purchase of investment in unconsolidated entities (11,025) (1,700) (5,150)
Proceeds from sale of investment 0 0 140
Purchases of intangible assets and other assets (1,431) (5,915) 0
Cash flows used in investing activities (24,681) (25,966) (68,319)
Cash flows from / (used in) financing activities:      
Proceeds from issuance of convertible senior notes 500,000 0 0
Payments of debt issuance costs (14,834) 0 0
Purchases of capped calls related to convertible senior notes (63,050) 0 0
Payments of deferred consideration for acquisitions (7,269) (1,672) (1,500)
Purchases of treasury stock, including transaction costs (75,000) (27,298) (78,844)
Purchases of redeemable noncontrolling interest 0 (832) 0
Payments of acquired debt 0 (3,040) 0
Payments of tax withholdings related to vesting of restricted stock units (3,401) (2,621) 0
Issuances of common stock from equity-based plans 9,984 3,598 4,020
Cash flows from / (used in) financing activities 346,430 (31,865) (76,324)
Effect of exchange rate changes on cash, cash equivalents and restricted cash (109) 66 0
Net increase / (decrease) in cash, cash equivalents and restricted cash 528,053 78,200 (87,742)
Cash, cash equivalents and restricted cash at beginning of the period 701,079 622,879 710,621
Cash, cash equivalents and restricted cash at end of the period 1,229,132 701,079 622,879
Reconciliation of cash, cash equivalents and restricted cash:      
Cash and cash equivalents 1,220,701 696,983 622,165
Restricted cash included in other current assets and other assets 8,431 4,096 714
Total cash, cash equivalents and restricted cash 1,229,132 701,079 622,879
Supplemental disclosures:      
Cash paid for interest 5,656 192 0
Cash paid for income taxes, net of refunds 68,211 64,577 7,453
Noncash investing and financing activities:      
Cash not yet paid for capital expenditures 255 630 1,047
Cash not yet paid for business and asset acquisitions - holdback 200 2,780 4,833
Contingent liability from business acquisition $ 2,169 $ 2,061 $ 0
v3.25.0.1
Consolidated Statements of Equity - USD ($)
$ in Thousands
Total
Adoption of accounting standard on debt with conversion and other options
Common Stock
Additional Paid-In Capital
Additional Paid-In Capital
Adoption of accounting standard on debt with conversion and other options
Treasury Stock
Accumulated Other Comprehensive Income / (Loss)
Retained Earnings
Retained Earnings
Adoption of accounting standard on debt with conversion and other options
Beginning balance at Dec. 31, 2021 $ 12,888                
Increase (Decrease) in Temporary Equity [Roll Forward]                  
Noncontrolling interest assumed through acquisition 6,770                
Accretion adjustments of redeemable noncontrolling interest to redemption value 5,037                
Net income / (loss) attributable to common stockholders (707)                
Ending balance at Dec. 31, 2022 23,988                
Beginning balance (in shares) at Dec. 31, 2021     50,407,000            
Beginning balance at Dec. 31, 2021 613,167 $ (46,543) $ 504 $ 498,979 $ (56,515) $ (5,149) $ 0 $ 118,833 $ 9,972
Beginning balance (in shares) at Dec. 31, 2021           147,000      
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Common stock issued in connection with equity-based plans (in shares)     578,000            
Common stock issued in connection with equity-based plans 4,020   $ 6 4,014          
Purchases of treasury stock (in shares)           1,385,592      
Purchases of treasury stock (78,844)         $ (78,844)      
Reclassification of subsidiary long-term incentive plan liability related to modification 3,104     3,104          
Stock-based compensation expense 52,654     52,654          
Accretion adjustments of redeemable noncontrolling interest to redemption value (5,037)     (5,037)          
Net income / (loss) attributable to common stockholders 56,338             56,338  
Other comprehensive income (loss) 0                
Ending balance (in shares) at Dec. 31, 2022     50,985,000            
Ending balance at Dec. 31, 2022 598,859   $ 510 497,199   $ (83,993) 0 185,143  
Ending balance (in shares) at Dec. 31, 2022           1,533,000      
Increase (Decrease) in Temporary Equity [Roll Forward]                  
Purchases of redeemable noncontrolling interest (1,238)                
Accretion adjustments of redeemable noncontrolling interest to redemption value 14,261                
Net income / (loss) attributable to common stockholders (703)                
Ending balance at Dec. 31, 2023 36,308                
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Common stock issued in connection with equity-based plans (in shares)     904,000            
Common stock issued in connection with equity-based plans 3,598   $ 9 3,589          
Purchases of treasury stock (in shares)           487,918      
Purchases of treasury stock (27,298)         $ (27,298)      
Tax withholdings related to vesting of restricted stock units (2,621)     (2,621)          
Stock-based compensation expense 47,422     47,422          
Purchases of redeemable noncontrolling interest 406     406          
Accretion adjustments of redeemable noncontrolling interest to redemption value (14,261)     (14,261)          
Net income / (loss) attributable to common stockholders 81,043             81,043  
Other comprehensive income (loss) $ 1,398           1,398    
Ending balance (in shares) at Dec. 31, 2023 51,888,838   51,889,000            
Ending balance at Dec. 31, 2023 $ 688,546   $ 519 531,734   $ (111,291) 1,398 266,186  
Ending balance (in shares) at Dec. 31, 2023 2,020,663         2,021,000      
Increase (Decrease) in Temporary Equity [Roll Forward]                  
Accretion adjustments of redeemable noncontrolling interest to redemption value $ 10,042                
Net income / (loss) attributable to common stockholders (1,603)                
Ending balance at Dec. 31, 2024 44,747                
Increase (Decrease) in Stockholders' Equity [Roll Forward]                  
Common stock issued in connection with equity-based plans (in shares)     867,000            
Common stock issued in connection with equity-based plans 9,984   $ 9 9,975          
Purchases of treasury stock (in shares)           1,117,068      
Purchases of treasury stock (75,394)     (394)   $ (75,000)      
Tax withholdings related to vesting of restricted stock units (3,401)     (3,401)          
Stock-based compensation expense 41,397     41,397          
Accretion adjustments of redeemable noncontrolling interest to redemption value (10,042)     (10,042)          
Purchases of capped calls related to convertible senior notes, net of tax (48,077)     (48,077)          
Net income / (loss) attributable to common stockholders 124,116             124,116  
Other comprehensive income (loss) $ (583)           (583)    
Ending balance (in shares) at Dec. 31, 2024 52,756,077   52,756,000            
Ending balance at Dec. 31, 2024 $ 726,546   $ 528 $ 521,192   $ (186,291) $ 815 $ 390,302  
Ending balance (in shares) at Dec. 31, 2024 3,137,731         3,138,000      
v3.25.0.1
Organization
 12 Months Ended
Dec. 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 global opportunities in the residential, multi-family, small business and enterprise commercial markets. Alarm.com’s solution suite includes security, video and video analytics, energy management, access control, electric utility grid management, indoor gunshot detection, water management, health and wellness, personal safety 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.
v3.25.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Principles of Consolidation

Our consolidated financial statements include our accounts and those of our majority-owned and controlled subsidiaries after elimination of intercompany accounts and transactions. Equity investments over which we are able to exercise significant influence but do not control the investee are accounted for using the equity method.

We determine whether we have a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity, or VIE. Voting interest entities are entities that have sufficient equity and provide equity investor voting rights that give them power to make significant decisions relating to the entity’s operations. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. In VIEs, a controlling financial interest is attained through means other than voting rights and the entities lack one or more of the characteristics of a voting entity.

We have unconsolidated equity investments in third-party businesses. Equity investments with readily determinable fair values are recorded at fair value. Equity investments without readily determinable fair values are recorded 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. We make a separate election to use the measurement alternative for each eligible investment, and reassess whether an investment qualifies for the alternative at each reporting period. Adjustments resulting from impairment, fair value or observable price changes are recorded in other (expense) / income, net in our consolidated statements of operations.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or 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. 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 (including the ongoing conflicts in Ukraine, and in Israel and surrounding areas), disruptions to global supply chains, fluctuations in interest rates, risk of recession and inflation (collectively, the Macroeconomic Conditions). 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.

Cash and Cash Equivalents

We consider all highly liquid instruments purchased with an original maturity from the date of purchase of three months or less to be cash equivalents. As of December 31, 2024 and 2023, we have invested $1.21 billion and $679.7 million in cash equivalents in the form of money market funds with a number of financial institutions, respectively. We consider these money market funds to be Level 1 financial instruments (see Note 10).
Accounts Receivable

Accounts receivable are principally derived from sales to customers located in the United States and Canada. Revenue in countries outside of North America accounted for 6%, 4% and 4% of our total revenue for the years ended December 31, 2024, 2023 and 2022, respectively. Accounts receivable balances related to service providers partners outside of North America were 8% and 7% as of December 31, 2024 and 2023, respectively. Our accounts receivable are stated at estimated realizable value.

Restricted Cash

We consider all cash reserved for a specific use and not available for immediate or general business use to be restricted cash. As of December 31, 2024, we had a total of $8.4 million of restricted cash, of which $2.2 million was included in other current assets and $6.2 million was included in other assets within our consolidated balance sheets. As of December 31, 2023, we had a total of $4.1 million of restricted cash, of which less than $0.1 million was included in other current assets and $4.1 million was included in other assets within our consolidated balance sheets.

Notes Receivable

Notes receivable are presented net of an allowance for uncollectibility, if any. We accrue interest on notes receivable based on the contractual terms of the note. Outstanding notes receivable that are aged 30 days or more from the contractual payment date are considered past due. Notes receivable are evaluated for impairment at least quarterly. Impairment occurs when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan. Factors considered in determining impairment include payment status, collateral value and the probability of collecting payments when due. See Note 9 for further details on loans provided to distribution partners, technology partners and service provider partners.

Credit Losses

The allowance for credit losses is a valuation account that is deducted from the accounts receivable and notes receivable amortized cost basis 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. These risk characteristics are relevant to accounts receivable and notes receivable.

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 years ended December 31, 2024, 2023 and 2022 we recorded credit loss expense of $4.7 million, $1.0 million and $0.8 million in general and administrative expense in our consolidated statements of operations, respectively. 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.

Credit Losses - Accounts Receivable

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 years ended December 31, 2024, 2023 and 2022, 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 year ended December 31, 2024, as compared to historical periods.

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. During the year ended December 31, 2024, we wrote off $4.0 million related to a note receivable that originated in 2017 with an affiliate entity of one of our distribution partners, or the Affiliate, and reversed the
previously allowance for credit losses recorded earlier in 2024. There were no purchases or sales of financial assets during the years ended December 31, 2024 and 2023. There were no hardware financing receivables outstanding as of December 31, 2024 and 2023.

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 December 31, 2024 and 2023 was $0.2 million and $0.1 million, respectively, and is reflected in other current assets and other assets within our consolidated balance sheets and excluded from the amortized cost basis of the notes receivable. During the year ended December 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 years ended December 31, 2023 and 2022.

Inventory

Our inventory, which is comprised of raw materials, work-in-process and finished goods, includes materials used to produce our wireless communications network enabled radios, video cameras, video recorders, smart thermostats, gunshot detection sensors, home automation system parts and peripherals, is stated at the lower of cost or net realizable value, and is charged to cost of sales primarily on a first in, first out, or FIFO, basis when the inventory is shipped from our manufacturer and received by our service provider partners. We periodically evaluate our inventory quantities for obsolescence based on criteria such as customer demand and changing technology and record an obsolescence write-off when necessary.

Leases

We determine if an arrangement contains a lease at the inception of the arrangement. As part of the lease determination process, we assess several factors, including, but not limited to, whether we have the right to control and direct the use of the asset and whether the other party has a substantive substitution right. If we enter into leases that contain multiple components, we identify separate lease components based on whether or not the right to use the underlying assets is distinct and either highly dependent or highly interrelated with other rights in the contract. We also evaluate whether there are any non-lease components in the arrangement. For certain classes of underlying assets, such as data centers, we have elected not to separate non-lease components from lease components. For all other classes of underlying assets, if separate lease and non-lease components are identified, we allocate the consideration in the contract to the lease and non-lease components using the relative stand-alone selling price method at the lease inception.

Some of our leases include options to renew at our sole discretion. We also have several leases that provide us an option to terminate the lease prior to the end of the lease term. These renewal and termination options are included in the lease term at the commencement date when we are reasonably certain the options will be exercised. When assessing the likelihood of electing these options, we consider the length of the renewal period, market conditions, our expansion plans, the existence of a termination penalty, as well as other factors. Our lease agreements do not contain any material residual value guarantees, restrictive covenants or variable lease payments.

Right-of-use, or ROU, assets represent our right to use an underlying asset for the term of the lease and lease liabilities represent our obligation to make lease payments throughout the term of the lease. ROU assets and lease liabilities are recognized as of the commencement date of the lease based on the present value of contractual lease payments due over the term of the lease. We use our incremental borrowing rate to determine the present value of the lease payments, as our leases do not state the rate implicit in the lease. Our incremental borrowing rate is determined on a collateralized basis at the commencement date of the lease.

ROU assets and lease liabilities resulting from operating leases are recorded on our consolidated balance sheets. We did not have any finance leases or subleases as of December 31, 2024 and 2023.

Lease expense is recognized on a straight-line basis over the term of the lease. Office and equipment lease expense is recorded in general and administrative expense and data center lease expense recorded in cost of SaaS and license revenue as well as research and development expense. Some of our leases include tenant improvement allowances, which are recorded when we are reasonably certain to utilize the allowance and are amortized on a straight-line basis over the shorter of the lease terms or the asset lives. Leases with an initial lease term of twelve months or less are considered short-term leases. Short-term leases are not recorded on our consolidated balance sheets. Expenses associated with short-term leases are recognized on a
straight-line basis over the term of the lease and are recorded in general and administrative expense. Short-term lease costs were immaterial for the years ended December 31, 2024 and 2023.

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. On May 31, 2024, we issued $500.0 million aggregate principal amount of 2.25% convertible senior notes due June 1, 2029, in a private placement to qualified institutional buyers, or the 2029 Notes. Prior to the January 1, 2022 adoption of Accounting Standards Update, or ASU, 2020-06, "Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity," we separated the 2026 Notes into liability and equity components. In accounting for the issuance of our convertible senior notes, the carrying amount of the liability component was calculated by measuring the fair value of a similar liability that did not have an associated convertible feature, using a discounted cash flow model with a risk adjusted yield. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the 2026 Notes as a whole. This difference between the aggregate principal amount and the liability component represented a debt discount that was amortized to interest expense using the effective interest method over the term of the notes. Transaction costs attributable to the liability component were netted with the liability component and amortized to interest expense using the effective interest method over the term of the 2026 Notes. Transaction costs attributable to the equity component were netted with the equity component of the notes in additional paid-in capital in the consolidated balance sheets. The equity component was not remeasured as long as it continued to meet the conditions for equity classification.

We adopted ASU 2020-06 effective January 1, 2022, using a modified retrospective adoption method, which required us to record the initial effect of this guidance as a cumulative-effect adjustment to retained earnings on January 1, 2022. Upon adoption of ASU 2020-06, we recombined the liability and equity components of the 2026 Notes assuming that the instrument was accounted for as only a liability from inception to the date of adoption. We also recombined the liability and equity components of the debt issuance costs. We also removed the temporary difference between the book and tax treatment of the debt discount and adjusted the temporary difference between the book and tax treatment of the debt issuance costs of the 2026 Notes.

The issuance costs are presented as a deduction from the outstanding principal balance of the 2026 Notes and 2029 Notes and are amortized to interest expense using the effective interest method over the contractual term of the 2026 Notes and 2029 Notes.

Capped Call Transactions

On May 31, 2024, we issued the 2029 Notes. In connection with the offering of the 2029 Notes, we entered into privately negotiated capped call transactions with one of the initial purchasers and certain other financial institutions, at a cost of $63.1 million. The capped call transactions cover, subject to customary adjustments substantially similar to those applicable to the 2029 Notes, the number of shares of our common stock initially underlying the 2029 Notes. As the capped call options are both legally detachable and separately exercisable from the 2029 Notes, we account for the capped call options separately from the 2029 Notes. The capped call options are indexed to our own common stock and classified in stockholders’ equity. As such, the premiums paid for the capped call options were included as a net reduction to additional paid-in capital in the consolidated balance sheets. The capped call transactions will not be remeasured as long as they continue to meet the conditions for equity classification.

We elected to integrate the capped call options with the 2029 Notes for federal income tax purposes pursuant to applicable U.S. Treasury Regulations. Accordingly, the $63.1 million cost of the purchased capped calls will be deductible for income tax purposes. The original issue discount is accreted over the term of the 2029 Notes.

Comprehensive Income

Comprehensive income consists of net income and other comprehensive (loss) / income. Other comprehensive (loss) / income refers to gains and losses that are recorded as an element of stockholders' equity and excluded from net income. Our other comprehensive (loss) / income consists of foreign currency translation adjustments.
Foreign Currency

For foreign operations where substantially all monetary transactions are in the local currency, we use the local currency as the functional currency. For these foreign operations, assets and liabilities are translated at period-end exchange rates and revenue and expense items are translated at average exchange rates prevailing during the periods being reported. The effects of translating financial statements of foreign operations into our reporting currency are recognized as a cumulative translation adjustment within accumulated other comprehensive income, a separate component of stockholders’ equity. Gains or losses from foreign currency remeasurements that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in our results of operations.

Redeemable Noncontrolling Interests

Noncontrolling interests with redemption features that are not solely within our control are considered redeemable noncontrolling interests. Our redeemable noncontrolling interests relate to our 86% equity ownership interest in PC Open Incorporated, a Washington corporation, doing business as OpenEye and our 85% equity ownership interest in Noonlight, Inc., or Noonlight, a Delaware corporation (see Note 7). The OpenEye and Noonlight stockholder agreements contain a put option that gives the minority stockholders the right to sell their shares to us based on the fair value of the shares and also contain a call option that gives us the right to purchase the remaining shares from the minority stockholders based on the fair value of the shares. The next put and call options related to OpenEye can each be exercised beginning in the first quarter of 2025. The put and call options related to Noonlight can each be exercised beginning in the first quarter of 2026. These redeemable noncontrolling interests are considered temporary equity and we report them between liabilities and stockholders’ equity in the consolidated balance sheets. The amount of the net income or loss attributable to the redeemable noncontrolling interests is recorded in the consolidated statements of operations and the accretion of the redemption values is recorded as an adjustment to additional paid-in capital. We account for purchases of redeemable noncontrolling interest as a component of stockholders' equity when control is maintained. We recognize the difference between the consideration paid for the acquired redeemable noncontrolling interest and the fair value of the acquired redeemable noncontrolling interest as an adjustment to additional paid-in capital. The aggregate redemption values of the of the noncontrolling interest was $44.7 million and $36.3 million as of December 31, 2024 and 2023, respectively.

Internal-Use Software

We capitalize the costs directly related to the development of internal-use software for our platforms during the application development stage of the projects. Such costs primarily include payroll and payroll-related costs for engineers and product development employees directly associated with the development project. Our internal-use software is reported at cost less accumulated amortization. Amortization begins once the project is ready for its intended use, which is usually when the code goes into production in weekly software builds on our platforms. We amortize the asset on a straight-line basis over the estimated useful life, which is typically a three to five-year period. We update our software for our SaaS multi-tenant platforms on a weekly basis utilizing continuous agile development methods, which primarily consists of bug-fixes and user interface changes. We evaluate whether a project should be capitalized if it adds significant functionality to our platforms. Maintenance activities or minor upgrades are expensed in the period performed.

External Software

Costs incurred in researching and developing a computer software product that will be marketed and sold are charged to expense when incurred until technological feasibility is established. Technological feasibility is established upon completion of a detailed program design or, in its absence, completion of a working model. After technological feasibility is established, certain payroll and payroll-related costs are capitalized for engineers and product development employees directly associated with the development project. Cost capitalization ceases when the product is available for general release. Our non-hosted software is typically developed in an agile environment with frequent revisions to product release features and functions. Agile development results in a short duration between completion of the detailed program design and beta release. As of December 31, 2024 and 2023, our capitalized software development costs for internal-use software and external software included in the consolidated balance sheets were $2.4 million and $0.9 million, respectively.
Revenue Recognition

We derive our revenue from three primary sources: the sale of cloud-based SaaS services on our integrated Alarm.com platform, the sale of licenses and services on our non-hosted software platform, or Software platform, and the sale of hardware products. We sell our platform and hardware solutions to service provider partners that resell our solutions and hardware to residential and commercial property owners, who are the service provider partners’ customers. Our subscribers consist of all of the properties maintained by those residential and commercial property owners to which we are delivering at least one of our solutions. We also sell our hardware to distributors who resell the hardware to service provider partners. We enter into contracts with our service provider partners that establish pricing for access to our platform solutions and for the sale of hardware. These service provider contracts typically have an initial term of one year, with subsequent renewal terms of one year. Our service provider partners have indicated that they typically have three to five-year service contracts with residential and commercial property owners who use our solutions.

Our hardware sales includes connected devices that enable our services, such as video cameras, video recorders, smart thermostats, image sensors, gunshot detection sensors, gateway modules and peripherals. Our service provider partners may purchase our hardware in anticipation of installing the hardware in a residential or commercial property when they create a new subscriber account, or for use in existing subscriber properties. The purchase of hardware occurs in a transaction that is separate and typically in advance of the purchase of our platform services. The performance obligation is primarily satisfied when the hardware is received by our service provider partner or distributor. Service provider partners transact with us to purchase our platform solutions and resell our solutions to a new subscriber, or to upgrade or downgrade the solutions of an existing subscriber, at which time the subscriber’s access to our platform solutions is enabled and the delivery of the services commences. Our performance obligation related to providing our platform solutions is satisfied on a daily basis as the subscriber uses the platform services. The purchase of platform solutions and the purchase of hardware are separate transactions as revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We generate all of our revenue from contracts with customers.

SaaS and license revenue associated with our contracts is recognized at an amount that corresponds directly with the value of the performance completed to date. Additionally, the consideration received from hardware sales corresponds directly with the stand-alone selling price of the hardware. As a result, we have elected to use the practical expedient related to the amount of transaction price allocated to the unsatisfied performance obligations and therefore, we have not disclosed the total remaining revenue expected to be recognized on all contracts or the expected period over which the remaining revenue would be recognized.

To determine the transaction price, we analyze all of the performance obligations included in the contract. We consider the terms of the contract and our customary business practices, which typically do not include financing components or non-cash consideration. We have variable consideration primarily in the form of rebate incentives. The significant inputs related to our estimates of variable consideration include the volume and amount of products and services sold historically and expected to be sold in the future, the availability and performance of our services and the historical and expected number of returns. Depending on the type of variable consideration and its predictability, we may apply an "expected value" approach or a "most likely amount" approach. We estimate the variable consideration at the onset of a contract and include the variable consideration within the transaction price if it is probable that a significant reversal of the variable consideration would not occur in the future. When determining whether the amount of variable consideration included in the transaction price should be constrained, we look at the history of hardware purchased and subscribers added by our service provider partners to estimate the likelihood of those service provider partners obtaining the rebates. At times, our contracts include consideration payable to a customer in the form of fixed discounts or rebates. We record the consideration payable to a customer as a reduction to the transaction price resulting in a reduction to revenue over the service period.

If we enter into contracts that contain multiple promised services, we evaluate which of the promised services represent separate performance obligations based on whether or not the promised services are distinct and whether or not the services are separable from other promises in the contract. If these criteria are met, then we allocate the transaction price to the performance obligations using the relative stand-alone selling price method at contract inception.

In determining the relative estimated selling prices, we consider market conditions, entity-specific factors and information about the customer or class of customer. Any discount within the contract is allocated proportionately to all of the separate performance obligations in the contract unless the terms of discount relate specifically to the entity’s efforts to satisfy some but not all of the performance obligations.

For our standard service provider agreements, we have used a portfolio approach for purposes of revenue recognition, as each agreement has similar characteristics and we do not expect the effects of applying this approach would have a material impact on our financial statements as compared to assessing each agreement individually.
SaaS and License Revenue

We generate the majority of our SaaS and license revenue primarily from monthly fees charged to our service provider partners on a per subscriber basis for access to our cloud-based intelligently connected property platform and related solutions. Our fees per subscriber vary based upon the service plan and features utilized.

Under the terms of our contractual arrangements with our service provider partners, we bill a monthly fee to our service provider partners in advance of the month of service, with the exception of the initial partial month of service, which is paid in arrears. Due to the limited period of time between receipt of payment and delivery of service, we have not accounted for these advance payments as significant financing components. We typically transfer the promised SaaS services to our customers over time, which is evidenced by the fact that the customers receive and consume the benefits provided by our performance of the services as such services are rendered. As a result, we recognize revenue from SaaS services on a monthly basis as we satisfy our performance obligations over the period of service. We have demonstrated that we can sell our SaaS offering on a stand-alone basis, as it can be sold separately from hardware and activation services. Our service provider partners typically incur and pay the same monthly fee per subscriber account for the entire period a subscriber account is active.

We offer multiple service level packages for our platform solutions including a range of solutions and a range of a la carte add-ons for additional features. The fee paid by our service provider partners each month for the delivery of our solutions is based on the combination of packages and add-ons enabled for each subscriber. We utilize tiered pricing plans where our service provider partners may receive prospective pricing discounts driven by volume.

We also generate SaaS and license revenue from the fees paid to us when we license our intellectual property to third parties for use of our patents. We bill a monthly fee to third parties based on the number of customers that were active during the prior month. We apply the usage-based royalty exception to recognize license revenue because the sole or predominant item to which the royalty relates is the license of intellectual property. Under the usage-based royalty exception, we recognize revenue on a monthly basis over the period of service. In addition, in certain markets, our EnergyHub subsidiary sells its demand response service for an annual service fee, with pricing based on the number of subscribers or amount of aggregate electricity demand made available for a utility’s or market’s control.

Software License Revenue

Our SaaS and license revenue also includes our software license revenue from monthly fees charged to service providers on a per subscriber basis for access to our Software platform. The non-hosted software for interactive security, automation and related solutions is typically deployed and operated by the service provider in its own network operations center. Our agreements for the Software platform solution typically include software and services, such as post-contract customer support, or PCS. Software sales that include multiple elements are typically allocated to the various elements using the relative stand-alone selling price method. We apply the usage-based royalty exception to recognize license revenue associated with software hosted by our customers because the predominant item to which the royalty relates is the license of intellectual property. Under the usage-based royalty exception, we recognize revenue on a monthly basis over the period during which the services are expected to be performed. Under the terms of our contractual arrangements with our service provider partners, we are entitled to payment of a monthly fee that is billed per subscriber for the month of service. Our software license revenue during the years ended December 31, 2024, 2023 and 2022 was $20.3 million, $23.2 million and $26.8 million, respectively.

Hardware and Other Revenue

We generate hardware and other revenue primarily from the sale of video cameras, video recorders, smart thermostats and cellular radio modules that provide access to our cloud-based platforms and, to a lesser extent, the sale of other devices, including image sensors, gunshot detection sensors and peripherals. We primarily transfer hardware to our customers upon delivery to the customer, which corresponds with the time at which the customer obtains control of the hardware. As a result, we recognize hardware and other revenue as we satisfy our performance obligations, which primarily occurs when the hardware is received by our service provider partner or distributor, net of a reserve for estimated returns. There are a few contracts in which we provide shipping and handling services to the customer after control of the hardware transfers to the customer. In these instances, we have elected to account for shipping and handling costs as activities performed to fulfill the promise to transfer hardware to the customer and not as a separate promised service.

Amounts due from the sale of hardware are payable in accordance with the terms of our agreements with our service provider partners or distributors, and are not contingent on resale to end-users, or to service provider partners in the case of sales of hardware to distributors. Payment for our hardware is typically due within 30 days from shipment. Our distributors sell directly to our service provider partners under terms between the two parties.

When determining the amount of consideration we expect to be entitled to for the sale of our hardware, we estimate the variable consideration associated with customer returns. We record a reserve against revenue for hardware returns based on historical returns. For each of the years ended December 31, 2024, 2023 and 2022, our reserve against revenue for hardware
returns was 1% of hardware and other revenue. We evaluate our hardware reserve on a quarterly basis or if there is an indication of significant changes in return experience. Historically, our returns of hardware have not significantly differed from our estimated reserve. Additionally, we provide warranties related to the intended functionality of the products and services provided and those warranties typically allow for the return of hardware up to one year past the date of sale. We determined that these warranties are not separate performance obligations as they cannot be purchased separately and do not provide a service in addition to an assurance the hardware will function as expected.

Our hardware and other revenue also includes our revenue from the sale of perpetual licenses that provide our customers in the commercial market the right to use our video surveillance software for an indefinite period of time in exchange for a one-time license fee. Our hardware and other revenue also includes our revenue from the sale of licenses that provide our customers the right to use our indoor gunshot detection solution in exchange for license fees. Our perpetual licenses and licenses to our indoor gunshot detection solution provide a right to use intellectual property that is functional in nature and has significant stand-alone functionality. Accordingly, for licenses of functional intellectual property, revenue is recognized at the point-in-time when control has been transferred to the customer, which occurs once the software has been made available to the customer.

Hardware and other revenue may also include activation fees charged to some of our service provider partners for activation of a new subscriber account on our platforms, as well as fees paid by service provider partners for our marketing services. Our service provider partners use services on our platforms, such as support tools and applications, to assist in the installation of our solutions in subscriber properties. This installation marks the beginning of the service period on our platforms and, on occasion, we earn activation revenue for fees charged for this service. The activation fee is non-refundable, separately negotiated and specified in our contractual arrangements with our service provider partners and is charged to the service provider partner for each subscriber activated on our platforms. The decision whether to charge an activation fee is based in part on the expected number of subscribers to be added by our service provider partners and as a result, many of our largest service provider partners do not pay an activation fee. Activation fees are not offered on a stand-alone basis separate from our SaaS offering and are billed and received at the beginning of the arrangement. We record activation fees initially as deferred revenue and we recognize these fees ratably over the expected term of the subscribers’ account which we estimate is 10 years based on our annual attrition rate. The portion of these activation fees included in current and long-term deferred revenue as of our balance sheet date represents the amounts that will be recognized ratably as revenue over the following twelve months, or longer as appropriate, until the 10-year expected term is complete. The balance of deferred revenue for activation fees was $4.3 million and $4.8 million as of December 31, 2024 and 2023, respectively, which combines current and long-term balances.

Cost of Revenue

Our cost of SaaS and license revenue primarily includes the amounts paid to wireless network providers and, to a lesser extent, the costs of running our network operations centers which are expensed as incurred, as well as patent and royalty costs in connection with technology licensed from third-party providers and amounts paid to distributed energy resource providers. Our cost of SaaS and license revenue also includes our cost of software license revenue, which primarily includes the payroll and payroll-related costs of the department dedicated to providing service exclusively to those service providers that host the Software platform. Our cost of software license revenue during the years ended December 31, 2024, 2023 and 2022 was $0.6 million, $0.6 million and $0.5 million, respectively. Our cost of hardware and other revenue primarily includes cost of raw materials, tooling, freight shipments and amounts paid to our third-party manufacturer for production and fulfillment of our cellular radio modules and image sensors, and procurement costs for our video cameras, video recorders, smart thermostats and gunshot detection sensors, which we purchase from an original equipment manufacturer, and other devices. Cost of hardware and other revenue also includes material costs and labor cost related to our employees who manufacture hardware for our suite of IoT solutions. Additionally, our cost of hardware and other revenue includes royalty costs in connection with technology licensed from third-party providers.

We record the cost of SaaS and license revenue as expenses are incurred, which corresponds to the delivery period of our services to our subscribers. We record the cost of hardware and other revenue primarily when the hardware and other services are delivered to the service provider partner, which occurs when control of the hardware and other services transfers to the service provider partner. Our cost of revenue excludes amortization and depreciation shown in operating expenses.

Contract Asset and Contract Liability Balances

At contract inception, we assess the goods and services promised in our contracts with customers and identify a performance obligation for each distinct promise to transfer a good or service, or bundle of goods or services. To identify the performance obligations, we consider all of the goods or services promised in the contract, whether explicitly stated or implied based on customary business practices. We record a contract asset when we satisfy a performance obligation by transferring a promised good or service. Contract assets can be conditional or unconditional depending on whether another performance obligation must be satisfied before payment can be received. We receive payments from our service provider partners based on the billing schedule established in our contracts. All of the accounts receivable presented in the consolidated balance sheets represent unconditional rights to consideration. We do not have any assets from contracts containing conditional rights and we do not have any assets from satisfied performance obligations that have not been invoiced.
We recognize an asset related to the costs incurred to obtain a contract only if we expect to recover those costs and we would not have incurred those costs if the contract had not been obtained. We recognize an asset from the costs incurred to fulfill a contract if the costs (i) are specifically identifiable to a contract, (ii) enhance resources that will be used in satisfying performance obligations in future and (iii) are expected to be recovered. Our assets related to costs incurred to obtain a contract consist of capitalized commission costs and upfront payments made to a customer. Based on the policy above, we capitalize a portion of our commission costs as an incremental cost of obtaining a contract. When calculating the incremental cost of obtaining a contract, we exclude any commission costs related to metrics that could be satisfied without obtaining a contract, including training-related metrics. We amortize our commission costs to sales and marketing expense on our consolidated statements of operations over a period of three years, which is consistent with the period over which the products and services related to the commission are transferred to the customer. The three-year period was determined based on our review of historical enhancements and upgrades to our products and services. We applied the portfolio approach to account for the amortization of contract costs for those contracts that have similar characteristics. Upfront payments made to a customer are capitalized and amortized over the expected period of benefit and are recorded as a reduction to revenue.

Contract liabilities include payments received in advance of performance under the contract and are realized with the associated revenue recognized under the contract. All of the deferred revenue presented in the consolidated balance sheets represents contract liabilities resulting from advance cash receipts from customers or amounts billed in advance to customers from the sale of services. Changes in deferred revenue are due to our performance under the contract as well as to cash received from new contracts for which services have not been provided.

Research and Development

Our research and development costs consist primarily of personnel and related expenses for our employees working on our product development and software and device engineering teams, including salaries, bonuses, stock-based compensation, benefits and other personnel costs. Our research and development of new products and services is a multidisciplinary effort across our product management, program management, software engineering, device engineering, quality engineering, configuration management and network operations teams. Also included are non-personnel costs, such as consulting and professional fees paid to third-party development resources. We invest substantial resources in research and development to enhance our platforms and applications, support our technology infrastructure, develop new capabilities and conduct quality assurance testing.

Fair Value Measurements

The accounting standard for fair value measurements provides a framework for measuring fair value and requires disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. This accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date;

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for similar assets and liabilities, either directly or indirectly; quoted prices in markets that are not active; and

Level 3 - Unobservable inputs supported by little or no market activity.

The carrying amount of financial assets, including cash and cash equivalents and accounts receivable, as well as accounts payable approximates fair value because of the short maturity and liquidity of those instruments.

Assets and Liabilities Measured at Fair Value on a Recurring Basis - In 2024 and 2023, we recorded assets for our money market accounts and liabilities for a contingent consideration liability related to acquisitions at fair value on a recurring basis. In 2024 we recorded assets for our equity securities with readily determinable fair values on a recurring basis. Prior to the termination of the long-term incentive plan with one of our subsidiaries in May 2022, we recorded liabilities for the long-term incentive plan at fair value on a recurring basis.

Assets Measured at Fair Value on a Nonrecurring Basis - We measure certain assets, including property and equipment, goodwill and intangible and long-lived assets at fair value on a nonrecurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired. Additionally, equity investments without readily determinable fair values are recognized at fair value on a nonrecurring basis when observable price changes from orderly transactions for identical or similar investments become available.
Concentration of Credit Risk

The financial instruments that potentially subject us to concentrations of credit risk consists principally of cash and cash equivalents and accounts receivables. All of our cash and cash equivalents are held at financial institutions that management believes to be of high credit quality. Our cash and cash equivalent accounts may exceed federally insured limits at times. We mitigate the risk of loss for our cash and cash equivalents by depositing funds with a number of reputable financial institutions and monitoring risk profiles and investment strategies of money market funds. We have not experienced any losses on cash and cash equivalents to date. To manage accounts receivable risk, we evaluate the credit worthiness of our service provider partners and maintain an allowance for credit losses. The majority of our accounts receivable balance is due from our service provider partners in North America. We assess the concentrations of credit risk with respect to accounts receivables based on one industry and one geographic region and believe our reserve for uncollectible accounts is appropriate based on our history and this concentration.

Stock-Based Compensation

We compensate our executive officers, board of directors and employees with stock-based compensation plans under our 2015 Equity Incentive Plan, or 2015 Plan. We record stock-based compensation expense related to time-based restricted stock units based upon the award’s grant date fair value and use an accelerated attribution method, net of actual forfeitures, in which compensation cost for each vesting tranche in an award is recognized ratably from the service inception date to the vesting date for that tranche. We record stock-based compensation expense related to performance-based restricted stock units based on management’s determination of the probable outcome of the performance conditions and we record a cumulative adjustment in periods in which there is a change in the estimated number of shares expected to vest. Our equity awards generally vest over five years and are settled in shares of our common stock. During 2024, 2023 and 2022, we recognized compensation expense of $41.2 million, $47.3 million and $52.7 million, respectively. During 2024 and 2022 we recognized an associated tax windfall benefit from stock-based awards of $1.8 million and $2.0 million, respectively. During 2023, we recognized a tax shortfall from stock-based awards of $0.5 million. We account for stock-based compensation arrangements with non-employees based upon the award’s grant date fair value. We estimate the fair value of each option granted on the date of the grant using the Black-Scholes option-pricing model, which contains uncertainties and requires us to estimate the risk-free interest rate, expected term, expected stock price volatility and dividend yield. Beginning upon the first grant of options in 2022, the expected term for options granted is estimated using our historical experience, including information related to options we have granted.

Our Employee Stock Purchase Plan, or 2015 ESPP, allows eligible employees to purchase shares of our common stock at 90% of the fair market value of the closing price on the purchase date. The maximum number of shares of our common stock that a participant may purchase during any calendar year is limited to the lesser of 10% of the participant's base compensation for that year or the number of shares with a fair market value of $15,000. The 2015 ESPP is considered compensatory for purposes of share-based compensation expense. Compensation expense is recognized for the amount of the discount, net of actual forfeitures, over the six-month purchase period.

401(k) Defined Contribution Plan

We adopted the Alarm.com Holdings 401(k) Plan, or the Plan, on April 30, 2009. All of our employees are eligible to participate in the Plan. For the years ended December 31, 2024, 2023 and 2022, our discretionary match was 100% of employee contributions up to 10% of salary and up to a $5,000 maximum match. We recognized compensation expense of $7.5 million, $7.2 million and $6.4 million for the years ended December 31, 2024, 2023 and 2022, respectively, related to our matching contributions.

Business Combinations

We are required to allocate the purchase price of acquired companies to the identifiable tangible and intangible assets acquired and liabilities assumed at the acquisition date based upon their estimated fair values. The net assets and results of operations of an acquired entity are included in our consolidated financial statements from the acquisition date. Acquisition-related costs are expensed as incurred. Goodwill as of the acquisition date represents the excess of the purchase consideration of an acquired business over the fair value of the underlying net tangible and intangible assets acquired net of liabilities assumed. This valuation requires management to apply significant judgment in estimating the fair value of long-lived and intangible assets acquired, which involves the use of significant estimates and assumptions. 

Significant estimates and assumptions in valuing certain acquired customer relationship intangible assets include estimates about future expected cash flows and discount rates. Significant estimates and assumptions in valuing acquired developed technology intangible assets include estimates about future expected cash flows, obsolescence factors and discount rates. Significant estimates and assumptions in valuing acquired trade name intangible assets include estimates about future expected cash flows, royalty rates and discount rates.
During the measurement period, we may record adjustments to the assets acquired and liabilities assumed. Any adjustments to provisional amounts that are identified during the measurement period are recorded in the reporting period in which the adjustment amounts are determined. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings.

Some acquisitions may include contingent consideration, which is an obligation to make future payments to the seller contingent upon the achievement of future operational or financial targets. The fair value of the contingent consideration is estimated on a quarterly basis and changes in the fair value of the contingent consideration resulting from information that existed subsequent to the acquisition date are recorded in the consolidated statements of operations.

Goodwill, Intangible Assets and Long-lived Assets

Goodwill

Goodwill represents the excess of (1) the aggregate of the fair value of consideration transferred in a business combination, over (2) the fair value of assets acquired, net of liabilities assumed. Goodwill is allocated to our reporting units, which are our operating segments or one level below our operating segments. Goodwill is not amortized, but is subject to annual impairment tests. We perform our annual impairment review of goodwill on October 1 and when a triggering event occurs between annual impairment tests. We test our goodwill at the reporting unit level. We perform either a qualitative analysis or a quantitative analysis every year depending on the changes to our goodwill balance as well as changes in our business and the economy. Qualitative factors we consider include, but are not limited to, macroeconomic conditions, industry and market conditions, company specific events, changes in circumstances and market capitalization. The amount of goodwill impairment is calculated as the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill.

For our 2024 annual impairment review, we performed a qualitative assessment for our Alarm.com reporting unit, our only reporting unit with a goodwill balance. Based on the results of our qualitative assessment, we determined that it was not more likely than not that the fair value of our reporting unit was less than its carrying amount, including goodwill. Therefore, we concluded that there was no goodwill impairment as of October 1, 2024. Our assessment was performed as of October 1, 2024, and we have determined there has been no triggering events that resulted in goodwill impairment from our assessment date through December 31, 2024.

Intangible Assets and Long-lived Assets

Intangible assets are initially valued at fair value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over their estimated useful lives. We evaluate the recoverability of our intangible assets with definite lives and long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability of intangible assets with definite lives and long-lived assets are measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset.

For the years ended December 31, 2024, 2023 and 2022, we determined there were no impairments of our intangible assets with definite lives or other long-lived assets.

Advertising Costs

We expense advertising costs as incurred. Advertising costs totaled $6.6 million, $2.9 million and $6.1 million for the years ended December 31, 2024, 2023 and 2022, respectively. Advertising costs are primarily included within sales and marketing expenses on our consolidated statements of operations.

Accounting for Income Taxes

We account for income taxes under the asset and liability method as required by Accounting Standards Codification, or ASC 740, "Income Taxes," which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that are included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations.
We are subject to income taxes in the United States and foreign jurisdictions based upon our business operations in those jurisdictions. Significant judgment is required in evaluating uncertain tax positions. We record uncertain tax positions in accordance with ASC 740-10 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position, and (2) with respect to those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. We record interest and penalties as a component of our income tax provision.

Treasury Stock

We account for treasury stock under the cost method and present treasury stock, including any applicable commissions and fees, as a component of stockholders’ equity in the consolidated balance sheets and statements of equity. As of 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 consolidated balance sheets. Treasury stock held by us may be retired or reissued in the future.

Earnings per Share

Our basic net income per share attributable to common stockholders is calculated by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period.

Our diluted net income per share attributable to common stockholders is calculated by giving effect to all potentially dilutive common stock when determining the weighted-average number of common shares outstanding. For purposes of the diluted net income per share calculation, restricted stock units, options to purchase common stock and unvested shares issued upon the early exercise of options that are subject to repurchase are considered to be potential common stock.

We use the treasury stock method when calculating the dilutive impact of the stock options and restricted stock units on net income per share. We use the if-converted method when calculating the dilutive impact of the 2026 Notes and 2029 Notes on net income per share. As a result, we included 3,396,950 shares related to the 2026 Notes and 3,365,132 shares related to the 2029 Notes within the weighted average shares outstanding when calculating the diluted net income per share. Additionally, we included interest expense and debt issuance cost amortization, net of tax, within the numerator of the diluted net income per share.

Our redeemable noncontrolling interests are related to our 86% equity ownership interest in OpenEye and our 85% equity ownership interest in Noonlight. When calculating net income attributable to the common stockholders, net loss attributable to our redeemable noncontrolling interests should be excluded from net income. As a result, net income attributable to the common stockholders is equal to the net income less the net loss attributable to redeemable noncontrolling interests as of the end of each period.

Recent Accounting Pronouncements

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. This amendment is required to be applied retrospectively to all prior periods presented. We adopted ASU 2023-07 during the fiscal year ended December 31, 2024, which increased the amount of disclosures within Note 19 related to segment expenses.

Not Yet Adopted

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.

On November 5, 2024, the FASB issued ASU 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)," which requires more detailed information about the types of expenses included in certain expense captions presented on the consolidated statements of operations, including purchases of inventory, employee compensation, depreciation, amortization and depletion. Additionally, this amendment requires the disclosure of a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and the disclosure of the total amount of selling expenses and, on an annual basis, an entity's definition of selling expenses. The amendment is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. This amendment should be applied either on a prospective basis or a retrospective basis to any or all prior periods presented. We are currently assessing the impact this pronouncement will have on our consolidated financial statement disclosures.
v3.25.0.1
Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Contract Assets

Our assets related to costs incurred to obtain a contract consist of capitalized commission costs and upfront payments made to customers. The current portion of capitalized commission costs and upfront payments made to customers is included in other current assets within our consolidated balance sheets. The non-current portion of capitalized commission costs and upfront payments made to customers is reflected in other assets within our consolidated balance sheets.

We review the capitalized costs for impairment at least annually. Impairment exists if the carrying amount of the asset recognized from contract costs exceeds the remaining amount of consideration we expect to receive in exchange for providing the goods and services to which such asset relates, less the costs that relate directly to providing those good and services and that have not been recognized as an expense. We did not record an impairment loss on our contract assets during the years ended December 31, 2024, 2023 and 2022.

The changes in our contract assets are as follows (in thousands):
Year Ended December 31,
202420232022
Beginning of period balance$9,099 $13,975 $4,520 
Commission costs and upfront payments to a customer capitalized in period10,292 7,837 14,270 
Reimbursement of previously capitalized upfront payments to customers
— (6,774)— 
Amortization of contract assets(7,303)(5,939)(4,815)
End of period balance$12,088 $9,099 $13,975 

On July 27, 2023, we received $6.9 million in cash related to the reimbursement of previously capitalized upfront payments to a customer. On the date of the payment, the $6.8 million unamortized portion of the contract asset balance was reduced to zero and the remaining amount of $0.1 million was recorded as an increase to SaaS and license revenue.

Contract Liabilities

Contract liabilities include payments received in advance of performance under the contract and are realized with the associated revenue recognized under the contract. The changes in our contract liabilities are as follows (in thousands):
Year Ended December 31,
202420232022
Beginning of period balance$22,885 $18,332 $14,837 
Revenue deferred and acquired in period26,883 22,861 18,617 
Revenue recognized from amounts included in contract liabilities(23,209)(18,308)(15,122)
End of period balance$26,559 $22,885 $18,332 
    
The revenue recognized from amounts included in contract liabilities primarily relates to prepayment contracts with customers as well as payments of activation fees.
v3.25.0.1
Accounts Receivable, Net
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Accounts Receivable, Net Accounts Receivable, Net
The components of accounts receivable, net are as follows (in thousands):
December 31,
20242023
Accounts receivable$132,400 $136,769 
Allowance for credit losses(3,870)(3,864)
Allowance for product returns(2,448)(2,279)
Accounts receivable, net$126,082 $130,626 

For the years ended December 31, 2024, 2023 and 2022 we recorded a provision for credit losses on our accounts receivable of $1.0 million, $1.5 million and $1.2 million, respectively.

For the years ended December 31, 2024, 2023 and 2022, we recorded a $3.2 million, $4.4 million and $4.7 million reserve for product returns in our hardware and other revenue, respectively. 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 changes in our allowance for credit losses for accounts receivable are as follows (in thousands):
Year Ended December 31, 2024Year Ended December 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(956)6 (1,399)(109)
Write-offs902 42 431 48 
End of period balance$(3,777)$(93)$(3,723)$(141)
v3.25.0.1
Inventory
 12 Months Ended
Dec. 31, 2024
Inventory Disclosure [Abstract]  
Inventory Inventory
The components of inventory are as follows (in thousands):
December 31,
20242023
Raw materials$23,881 $30,452 
Work-in-process595 275 
Finished goods62,959 65,413 
Total inventory$87,435 $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 consolidated statements of operations. The inventory write-down was the result of a lower of cost or net realizable value adjustment for finished goods.
v3.25.0.1
Property and Equipment, Net
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Property and Equipment, Net Property and Equipment, Net
Furniture, fixtures and office equipment, computer software and hardware, internal-use software, construction in progress, leasehold improvements and real property and improvements are recorded at cost and presented net of depreciation on the consolidated balance sheets. We record land at historical cost. Furniture, fixtures and office equipment and computer software and hardware are depreciated on a straight-line basis over lives generally ranging from three to five years. Internal-use software included in fixed assets is amortized on a straight-line basis over a three-year period. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease terms or the asset lives. Real property is amortized on a straight-line basis over lives ranging from 15 to 39 years and the improvements related to real property are amortized on a straight-line basis over the shorter of the life of the underlying real property or the asset lives.
The components of property and equipment, net are as follows (in thousands):
December 31,
20242023
Furniture, fixtures and office equipment$10,325 $9,839 
Computer software and hardware41,197 34,913 
Internal-use software8,949 8,949 
Construction in progress14,809 3,581 
Leasehold improvements34,397 33,555 
Real property and improvements11,322 12,079 
Land22,684 22,693 
Total property and equipment143,683 125,609 
Accumulated depreciation(80,478)(71,445)
Property and equipment, net$63,205 $54,164 
Depreciation expense related to property and equipment for the years ended December 31, 2024, 2023 and 2022 was $10.3 million, $11.2 million and $11.6 million, respectively. Amortization expense related to internal-use software included in fixed assets of zero, zero and $0.6 million was included in depreciation expenses for the years ended December 31, 2024, 2023 and 2022, respectively. We had no disposals and write-offs of property and equipment that impacted the consolidated statements of operations during the years ended December 31, 2024, 2023 and 2022.
v3.25.0.1
Acquisitions
 12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Acquisitions Acquisitions
Asset Acquisitions

On November 22, 2024, EnergyHub International, Inc., one of our wholly-owned subsidiaries, acquired certain assets of Finland-based Kapacity.io Solutions Oy. Substantially all of the acquired assets consisted of developed technology. We believe the acquisition of the developed technology will help accelerate deployment of a cloud-based demand response platform internationally for our EnergyHub subsidiary.

In consideration for the purchase of the developed technology, we paid $1.3 million in cash in November 2024, after deducting $0.2 million related to an agreed holdback provision. Additionally, we incurred $0.1 million in direct transaction costs related to legal fees during 2024 that were capitalized as a component of the consideration transferred. The $1.6 million purchase price consideration related 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 seven years. The asset acquisition was recorded within our Other segment.

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 was fully paid by the third quarter of 2024. 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. The asset acquisition was recorded within our Alarm.com segment.

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. The holdback was fully paid by the third quarter of 2024. 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 consolidated financial statements were not considered material during the year of the acquisition.

Acquisition of a Business – Noonlight

On September 23, 2022, Alarm.com Incorporated acquired 85% of the issued and outstanding shares of capital stock of Noonlight. Noonlight provides a connected safety and event management software and services platform that enables new applications and provides enhanced emergency response capabilities. We believe the acquisition of Noonlight will enhance our comprehensive suite of interactive cloud-based services and allow us to expand markets for emergency response services as well as accelerate innovation in those services.

In consideration for the purchase of 85% of the issued and outstanding shares of capital stock of Noonlight, we paid $31.9 million in cash on September 23, 2022, after deducting $1.5 million related to an outstanding loan issued to Noonlight during May of 2022 and $4.9 million related to agreed holdback provisions. The working capital adjustment was finalized during the first quarter of 2023 and $0.4 million was paid during the second quarter of 2023. The holdback was fully paid to the stockholders of Noonlight by the second quarter of 2024.

The table below sets forth the purchase consideration and the fair value allocation of the tangible and intangible net assets acquired (in thousands):
September 23, 2022
Calculation of Purchase Consideration:
Cash paid, net of working capital adjustment$31,805 
Outstanding principal and interest of loan provided to Noonlight1,537 
Holdback consideration4,910 
Total consideration$38,252 
Tangible and Intangible Net Assets:
Cash$188 
Accounts receivable 291 
Other current and non-current assets200 
Property and equipment45 
Deferred tax assets424 
Developed technology9,335 
Trade names150 
Accounts payable(321)
Accrued expenses and other current liabilities(318)
Deferred revenue(67)
Redeemable noncontrolling interest(6,770)
Goodwill35,095 
Total tangible and intangible net assets$38,252 

Goodwill of $35.1 million reflects the value of acquired workforce and synergies we expect to achieve from integrating Noonlight's suite of emergency response cloud-managed application program interfaces into our existing comprehensive suite of interactive cloud-based services. None of the goodwill recognized is expected to be deductible for income tax purposes in future periods. We allocate goodwill to reporting units based on expected benefit from synergies and have allocated the goodwill to the Alarm.com segment.

Fair Value of Net Assets Acquired and Intangibles

The acquired activities and assets in the purchase of Noonlight constituted a business and with the exception of contract liabilities accounted for under Topic 606, in accordance with ASC 805, "Business Combinations," the assets and liabilities were
recorded at their respective fair values as of September 23, 2022. We developed the fair value of intangible net assets using a multi-period excess earnings method for developed technology and the relief from royalty method for the trade name.

Developed Technology

Developed technology primarily consists of intellectual property of proprietary software that is marketed for sale. We valued the developed technology using the multi-period excess earnings method, an income approach. The significant assumptions used in the income approach include estimates about future expected cash flows from the developed technology, the obsolescence factor and the discount rate. We are amortizing the Noonlight developed technology, valued at $9.3 million, on an attribution method based on the discounted cash flows of the model over an estimated useful life of seven years.

Trade Names

We valued the trade names acquired using a relief from royalty method. The significant assumptions used in the income approach include future expected cash flows from the trade name, the royalty rate and the discount rate. We are amortizing the trade names, valued at $0.2 million, on an attribution basis derived from the discounted cash flows of the model over an estimated useful life of five years.

Redeemable Noncontrolling Interests

We have a redeemable noncontrolling interest related to our 85% equity ownership interest in Noonlight. The Noonlight stockholder agreement contains a put option that gives the minority Noonlight stockholders the right to sell their remaining 15% equity ownership interest to us based on the fair value of the shares and also contains a call option that gives us the right to purchase the remaining Noonlight shares from the minority Noonlight stockholders based on the fair value of the shares. The put and call options can each be exercised beginning in the first quarter of 2026. This redeemable noncontrolling interest was recorded at fair value on September 23, 2022, by applying the income approach using unobservable inputs for projected cash flows, including projected financial results and a discount rate, which are considered Level 3 inputs. This redeemable noncontrolling interest is considered temporary equity and we report it between liabilities and stockholders’ equity in the consolidated balance sheets. The redemption value of the Noonlight noncontrolling interest was $5.2 million and $6.4 million as of December 31, 2024 and 2023, respectively.

Business Combinations in Operations - Noonlight

The operations of the Noonlight business combination discussed above were included in the consolidated financial statements as of the acquisition date. The pro forma information as well as the revenue and net losses of the business combination were not material to the consolidated financial statements in the year of acquisition.
v3.25.0.1
Goodwill and Intangible Assets, Net
 12 Months Ended
Dec. 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, 2023$148,183 $— $148,183 
Goodwill acquired - initial measurement
7,200 — 7,200 
Measurement period adjustment(1,509)— (1,509)
Foreign currency translation adjustment
624 — 624 
Balance as of December 31, 2023154,498 — 154,498 
Foreign currency translation adjustment (287)— (287)
Balance as of December 31, 2024$154,211 $— $154,211 

On January 18, 2023, we acquired 100% of the issued and outstanding shares of capital stock of EBS and initially recorded $7.2 million of goodwill in the Alarm.com segment. The 2023 measurement period adjustments related to the Noonlight and EBS working capital and tax adjustments during the year ended December 31, 2023. There were no impairments of goodwill recorded during the years ended December 31, 2024, 2023 or 2022. As of December 31, 2024, the accumulated balance of goodwill impairments was $4.8 million, which is related to our acquisition of EnergyHub in 2013.
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 Costs
Other
Total
Balance as of January 1, 2023$47,522 $33,553 $1,383 $— $— $82,458 
Intangible assets acquired2,395 11,583 537 — — 14,515 
Capitalized software development costs
— — — 882 — 882 
Amortization(10,623)(7,962)(703)(3)— (19,291)
Balance as of December 31, 202339,294 37,174 1,217 879 — 78,564 
Intangible assets acquired— 1,585 — — 46 1,631 
Capitalized software development costs— — — 1,798 — 1,798 
Amortization(9,669)(8,216)(717)(232)— (18,834)
Balance as of December 31, 2024$29,625 $30,543 $500 $2,445 $46 $63,159 

During the year ended December 31, 2024, we paid less than $0.1 million for the purchase of domain names. We recorded $18.6 million, $19.3 million and $18.4 million of amortization related to our intangible assets for the years ended December 31, 2024, 2023 and 2022, respectively. There were no impairments of long-lived intangible assets during the years ended December 31, 2024, 2023 and 2022. During the year ended December 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. During the year ended December 31, 2022, we wrote-off $0.7 million in fully amortized intangible assets in the Alarm.com segment that were acquired in 2014 related to customer relationships, developed technology, trade name and other intangible assets that no longer existed as of January 1, 2022.

The following tables reflect the weighted-average remaining life and carrying value of finite-lived intangible assets (in thousands, except weighted-average remaining life):
 December 31, 2024
 Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Value		Weighted-
Average
Remaining Life
(in years)
Customer relationships$128,280 $(98,655)$29,625 5.3
Developed technology71,316 (40,773)30,543 4.0
Trade name4,474 (3,974)500 2.9
Capitalized software development costs2,680 (235)2,445 3.7
Other
46 — 46 5.0
Total intangible assets$206,796 $(143,637)$63,159 4.6
    
 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
The following table reflects the future estimated amortization expense for intangible assets (in thousands):
Year Ended December 31,Amortization
2025$17,925 
202616,678 
202714,231 
20289,448 
20292,542 
2030 and thereafter2,335 
Total future amortization expense$63,159 
v3.25.0.1
Other Assets
 12 Months Ended
Dec. 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 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, 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 and recorded a full allowance for credit losses for this note receivable as of March 31, 2024. During the three months ended June 30, 2024, we wrote off the entire $4.0 million outstanding note receivable balance that originated in 2017 and reversed the previously recorded 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 consolidated balance sheet.

For the years ended December 31, 2024, 2023 and 2022, we recognized $2.6 million, $3.0 million and $2.7 million of revenue from the distribution partner associated with these loans, respectively.

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 December 31, 2024 and 2023, $1.0 million of principal was outstanding from the service provider partner under the loan agreement.

For each of the years ended December 31, 2024, 2023 and 2022, we recognized $0.2 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 December 31, 2024 and 2023, $1.5 million of principal was outstanding from the technology partner under the convertible promissory note.

For the years ended December 31, 2024, 2023 and 2022, 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 December 31, 2024 and 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 December 31, 2024 and 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 December 31, 2024 and 2023, our investment in the technology partner was $5.1 million.

In December 2023, we paid $1.5 million to another technology partner as part of a Simple Agreement for Future Equity, or SAFE. We paid an additional $1.5 million during both May 2024 and December 2024 in the same technology partner via a SAFE for a total investment of $4.5 million. The SAFE provides us the right to be issued certain shares of the technology partner's stock in connection with a qualified equity financing or liquidity event. Our 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 December 31, 2024 and 2023, our investment in the privately-held company was $4.5 million and $1.5 million, respectively.

Allowance for Credit Losses - Notes Receivable

The changes in our allowance for credit losses for notes receivable are as follows (in thousands):
Year Ended December 31, 2024Year Ended December 31, 2023
Beginning of period balance$(5)$(2)
Provision for expected credit losses
(3,996)(3)
Write-offs4,000 — 
End of period balance$(1)$(5)

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):
December 31, 2024
Loan Receivables:20242023202220212020PriorTotal
Current$500 $146 $1,500 $— $993 $— $3,139 
30-59 days past due— — — — — — — 
60-89 days past due— — — — — — — 
90-119 days past due— — — — — — — 
120+ days past due— — — — — — — 
Total$500 $146 $1,500 $— $993 $— $3,139 
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 were no notes receivable placed on nonaccrual status as of December 31, 2024 and 2023. During the years ended December 31, 2024, 2023 and 2022, there was no interest income recognized related to notes receivables that were in nonaccrual status.

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

Prepaid Expenses

As of December 31, 2024 and 2023, $16.1 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.
v3.25.0.1
Fair Value Measurements
 12 Months Ended
Dec. 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
Level 1Level 2Level 3Total
Assets:
Money market accounts as of December 31, 2024
$1,209,474 $— $— $1,209,474 
Equity securities with readily determinable fair value as of December 31, 2024
7,425 — — 7,425 
Money market accounts as of December 31, 2023
679,734 — — 679,734 
Liabilities:
Contingent consideration liability from acquisition as of December 31, 2024
$— $— $2,169 $2,169 
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 liabilities with significant unobservable inputs (in thousands):
Year Ended December 31,
20242023
2022
Contingent Consideration Liability from Acquisition
Contingent Consideration Liability from Acquisition
Subsidiary Long-Term Incentive Plan
Beginning of period balance$2,061 $— $3,351 
Acquired liabilities— 1,993 — 
Changes in fair value included in earnings108 68 (247)
Reclassification to additional paid in capital upon modification
— — (3,104)
End of period balance$2,169 $2,061 $— 
As of December 31, 2024, $1.20 billion of our money market accounts was included in cash and cash equivalents, $6.2 million was included in other assets and $1.9 million was included in other current assets in our consolidated balance sheets. As of December 31, 2023, $675.6 million of our money market accounts was included in cash and cash equivalents and $4.1 million was included in other assets in our consolidated balance sheets. Our assets from money market accounts are valued using quoted prices in active markets. Our equity securities with readily determinable fair value represent our investments in publicly traded companies, which are valued using quoted prices in active markets. During the year ended December 31, 2024, we recorded an unrealized loss on equity securities of less than $0.1 million. Our investments in public entities are recorded at fair value within other current assets in our consolidated balance sheets and changes in fair value of the investments are recorded within other (expense) / income, net within our consolidated statements of operations. See Note 13 for the carrying amount and estimated fair value of our convertible senior notes as of December 31, 2024 and 2023.

We previously maintained a subsidiary long-term incentive plan and recorded a liability based on the potential cash payment contingent upon meeting certain financial milestones related to the agreement established with certain employees of one of our subsidiaries. This incentive plan was established in November 2017 and the amount of compensation awarded to employees depended on the fair market value of the subsidiary, which was determined in part by the subsidiary’s projected financial results. We accounted for the subsidiary long-term incentive plan using fair value and established liabilities for the future payments under the terms of the incentive plan based on estimating revenue, EBITDA and EBITDA margin of the subsidiary over the period of the incentive plan through the anticipated achievement of the milestones. We estimated the fair value of the liability by using a Monte Carlo simulation model which involves several Level 3 unobservable inputs. The significant unobservable inputs used in the valuation included a weighted average revenue volatility and the revenue risk adjustment. The revenue volatility was weighted using revenue volatility results from the subsidiary’s peer group as well as market transaction metrics. The revenue risk adjustment was calculated using capital structure allocations from the subsidiary’s peer group, market transaction metrics as well as United States Treasury yields.

In May 2022, we terminated the subsidiary long-term incentive plan. The fair value of the liability related to the subsidiary long-term incentive plan as of the termination date was consistent with the liability as of March 31, 2022. Concurrent with the termination of the subsidiary long-term incentive plan, we granted performance-based restricted stock units to those employees who previously participated in the subsidiary long-term incentive plan. We accounted for the termination of the subsidiary long-term incentive plan and concurrent grant of performance-based restricted stock units as a modification of the original subsidiary long-term incentive plan. As a result, we reclassified the $3.1 million liability related to the subsidiary long-term incentive plan to additional paid-in capital during the three months ended June 30, 2022. Additionally, we recorded $1.2 million in incremental compensation costs as additional stock-based compensation expense to the applicable operating expense category based on the respective employee’s function (sales and marketing, general and administrative or research and development) during the three months ended June 30, 2022. The incremental compensation costs represented the excess of the fair value of the performance-based restricted stock units over the fair value of the subsidiary long-term incentive plan as of the modification date of the subsidiary long-term incentive plan.

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 within our 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 consolidated statements of operations. In 2024 and 2023, 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 December 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 6.1%, weighted by the probability of achievement of the performance targets at various dates, including a range of 6.0% to 6.2%. 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 during the years ended December 31, 2024 and 2023, and no transfers into Level 3 during the year ended December 31, 2022. There were no reclassifications between levels of the fair value hierarchy during the years ended December 31, 2024, 2023 and 2022.
v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases Leases
As of December 31, 2024, we leased office space, data centers and office equipment under non-cancelable operating leases with various expiration dates through 2034. In August 2014, we signed a lease for office space in Tysons, Virginia where we relocated our corporate headquarters to in February 2016. We have subsequently entered into amendments to this lease to provide us with additional office space as well as tenant improvement allowances. In August 2024, we entered into an amendment to the lease for our corporate headquarters, which extends the term of our existing leased office space to 2034 and includes two successive five-year renewal options. Additionally, the amendment provides for additional office space, parking spaces and tenant improvement allowances.

Supplemental information related to leases is presented in the table below (in thousands, except weighted-average term and discount rate):
Year Ended December 31,
202420232022
Operating lease cost$13,084 $11,484 $10,499 
Cash paid for amounts included in the measurement of operating lease liabilities12,467 13,947 12,723 
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities38,872 5,262 7,474 

December 31, 2024December 31, 2023
Weighted-average remaining lease term — operating leases7.8 years3.0 years
Weighted-average discount rate — operating leases8.2 %4.9 %

Maturities of lease liabilities are as follows (in thousands):
Year Ended December 31,
Operating Leases(1)
2025$13,130 
202611,820 
202712,063 
202811,503 
202911,052 
2030 and thereafter43,457 
Total lease payments103,025 
Less: imputed interest(2)
29,791 
Present value of lease liabilities$73,234 
_______________
(1)Operating lease payments exclude $13.6 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.
v3.25.0.1
Liabilities
 12 Months Ended
Dec. 31, 2024
Payables and Accruals [Abstract]  
Liabilities Liabilities
The components of accounts payable, accrued expenses and other current liabilities are as follows (in thousands):
December 31,
2024		December 31,
2023
Accounts payable$65,615 $39,038 
Accrued expenses29,443 21,559 
Income taxes payable 28,045 42,501 
Holdback liability from business combinations and asset acquisitions— 7,340 
Contingent consideration liability from acquisition
1,216 — 
Other current liabilities15,108 14,037 
Accounts payable, accrued expenses and other current liabilities$139,427 $124,475 

The components of other liabilities are as follows (in thousands):
December 31,
2024		December 31,
2023
Contingent consideration liability from acquisition$953 $2,061 
Other liabilities14,526 10,636 
Other liabilities$15,479 $12,697 
v3.25.0.1
Debt, Commitments and Contingencies
 12 Months Ended
Dec. 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 - 2026 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 2026 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 2026 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 2026 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 2026 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 2026 Indenture), as the case may be.

If we undergo a fundamental change (as defined in the 2026 Indenture), subject to certain exceptions and except as described in the 2026 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 2026 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.

As discussed in Note 2, we adopted ASU 2020-06 effective January 1, 2022, using a modified retrospective adoption method. Prior to the adoption of the standard, the 2026 Notes were separated into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that did not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the 2026 Notes. The equity component was recorded in additional paid-in capital and was not remeasured as it continued to meet the conditions for equity classification. The difference between the book and tax treatment of the debt discount and debt issuance costs of the 2026 Notes resulted in a difference between the carrying amount and tax basis of the 2026 Notes.

Upon adoption of ASU 2020-06 on January 1, 2022, we recombined the liability and equity components of the 2026 Notes assuming that the instrument was accounted for as only a liability from inception to the date of adoption. We also recombined the liability and equity components of the debt issuance costs. The 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%. We also removed the temporary difference between the book and tax treatment of the debt discount and adjusted the temporary difference between the book and tax treatment of the debt issuance costs of the 2026 Notes.

As of December 31, 2024 and 2023, the fair value of our 2026 Notes was $473.8 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 $60.80 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 December 31, 2024.

The net carrying amount of the liability component of the 2026 Notes is as follows (in thousands):
December 31,
2024		December 31,
2023
Principal$500,000 $500,000 
Unamortized debt issuance costs(3,319)(6,485)
Net carrying amount$496,681 $493,515 
Interest expense related to the 2026 Notes is as follows (in thousands):
Year Ended December 31,
202420232022
Amortization of debt issuance costs$3,166 $3,145 $3,126 
Total interest expense$3,166 $3,145 $3,126 

Convertible Senior Notes - 2029 Notes

On May 31, 2024, we issued $500.0 million aggregate principal amount of 2.25% convertible senior notes due June 1, 2029, in a private placement to qualified institutional buyers, or the 2029 Notes. The terms of the 2029 Notes are governed by an Indenture, or the 2029 Indenture, by and between Alarm.com Holdings, Inc. and U.S. Bank Trust Company, National Association, as trustee. The 2029 Notes are senior unsecured obligations that bear interest at a rate of 2.25% per annum, payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2024, and the principal amount of the 2029 Notes will not accrete. We received proceeds from the issuance of the 2029 Notes of $485.2 million, net of $14.8 million of transaction fees and other debt issuance costs.

We may redeem for cash, all or any portion of the 2029 Notes (subject to the partial redemption limitation described below), at our option, on or after June 7, 2027, at a redemption price equal to 100% of the principal amount of the 2029 Notes to be redeemed, plus accrued and unpaid 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 2029 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. If we redeem less than all the 2029 Notes, at least $75.0 million aggregate principal amount of the 2029 Notes must be outstanding and not subject to redemption as of the relevant redemption notice date. No sinking fund is provided for the 2029 Notes.

The 2029 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 January 1, 2029, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2024 (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 2029 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 2029 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 2029 Notes on each such trading day; (3) if we call any or all of the 2029 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 2029 Notes called (or deemed called) for redemption; or (4) upon the occurrence of specified corporate events as set forth in the 2029 Indenture.

On or after January 1, 2029, until the close of business on the second scheduled trading day immediately preceding the maturity date of the 2029 Notes, holders of the 2029 Notes may convert all or any portion of their 2029 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 2029 Notes with cash. The initial conversion rate for the 2029 Notes is 11.4571 shares of our common stock per $1,000 principal amount of 2029 Notes, which is equivalent to an initial conversion price of $87.28 per share of our common stock, subject to adjustment under certain circumstances in accordance with the terms of the 2029 Indenture. In addition, following certain corporate events that occur prior to the maturity date of the 2029 Notes or if we deliver a notice of redemption in respect of some or all of the 2029 Notes, we will, under certain circumstances, increase the conversion rate of the 2029 Notes for a holder who elects to convert its 2029 Notes (or any portion thereof) in connection with such a corporate event or convert its 2029 Notes called (or deemed called) for redemption during the related redemption period (as defined in the 2029 Indenture), as the case may be.

If we undergo a fundamental change (as defined in the 2029 Indenture), subject to certain exceptions and except as described in the 2029 Indenture, holders may require us to repurchase for cash all or any portion of their 2029 Notes at a fundamental change repurchase price equal to 100% of the principal amount of the 2029 Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date.

The 2029 Indenture includes customary covenants and sets forth certain events of default after which the 2029 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 2029 Notes become automatically due and payable.
We used $63.1 million of the net proceeds from the 2029 Notes to pay the cost of the capped call transactions described below and used $75.0 million to repurchase 1,117,068 shares of our common stock concurrently with the pricing of the 2029 Notes, which was separately authorized by our board of directors. We are using the remaining net proceeds from the issuance of the 2029 Notes for general corporate purposes, which may include acquisitions or strategic investments in complementary businesses or technologies, other repurchases of our common stock, repurchases of our 2026 Notes and for working capital, operating expenses and capital expenditures.

We account for the 2029 Notes as a liability. The debt issuance costs are presented as a deduction from the outstanding principal balance of the 2029 Notes and are amortized to interest expense using the effective interest method over the contractual term of the 2029 Notes at a rate of 2.9%.

As of December 31, 2024, the fair value of our 2029 Notes was $496.7 million. The fair value was determined based on the quoted price of the 2029 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 $60.80 on the last trading day of the quarter, the if-converted value of the 2029 Notes did not exceed the principal amount of $500.0 million as of December 31, 2024.

The net carrying amount of the liability component of the 2029 Notes is as follows (in thousands):
December 31,
2024
Principal$500,000 
Unamortized debt issuance costs(13,204)
Net carrying amount$486,796 

Interest expense related to the 2029 Notes is as follows (in thousands):
Year Ended December 31,
2024
Interest expense
$6,593 
Amortization of debt issuance costs1,630 
Total interest expense$8,223 

Capped Call – 2029 Notes

In connection with the offering of the 2029 Notes, we entered into privately negotiated capped call transactions with one of the initial purchasers and certain other financial institutions, at a cost of $63.1 million. The capped call transactions cover, subject to customary adjustments substantially similar to those applicable to the 2029 Notes, the number of shares of our common stock initially underlying the 2029 Notes. The cap price of the capped call transactions is initially $134.28 per share of our common stock, which represents a premium of 100% over the closing price of our common stock on the Nasdaq Global Select Market on May 28, 2024, and is subject to certain adjustments under the terms of the capped call transactions. The exercise price is $87.28 per share of common stock, subject to customary anti-dilution adjustments that mirror corresponding adjustments for the 2029 Notes.

We elected to integrate the capped call options with the 2029 Notes for federal income tax purposes pursuant to applicable U.S. Treasury Regulations. Accordingly, the $63.1 million cost of the purchased capped calls will be deductible for income tax purposes. The original issue discount is accreted over the term of the 2029 Notes.
The capped call transactions are generally expected to reduce the potential dilution to holders of our common stock upon any conversion of the 2029 Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted 2029 Notes, as the case may be, with such reduction and/or offset subject to a cap. As the capped call options are both legally detachable and separately exercisable from the 2029 Notes, we account for the capped call options separately from the 2029 Notes. The capped call options are indexed to our own common stock and classified in stockholders’ equity. As such, the premiums paid for the capped call options were included as a net reduction to additional paid-in capital in the consolidated balance sheets. The capped call transactions will not be remeasured as long as they continue to meet the conditions for equity classification.

Acquired Debt - EBS

On January 18, 2023, one of our wholly-owned subsidiaries acquired 100% of the issued and outstanding shares of capital stock of EBS. As part of this acquisition we acquired $2.9 million of outstanding debt, which had decreased to zero as of December 31, 2023.

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. On April 18, 2022, the district court stayed the case at the request of the parties pending the disposition of other proceedings involving the asserted patents. These proceedings include four ex parte reexamination proceedings at the U.S. Patent and Trademark Office and one inter partes review. Two of the patents were found unpatentable in reexamination, and EcoFactor appealed the decision with respect to one of the patents to the United States Court of Appeals for the Federal Circuit on July 9, 2024, while its time to appeal the second decision has not yet expired. The ex parte reexamination of a third patent is still ongoing, 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 inter partes review, and all claims were canceled on February 1, 2024.

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 incurred 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. The court held a claim construction hearing on December 12, 2024, but has not yet rendered a claim construction opinion. A hearing on dispositive motions, including for summary judgment, is scheduled for April 15, 2026. A trial is scheduled for July 6, 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.
v3.25.0.1
Stockholders' Equity
 12 Months Ended
Dec. 31, 2024
Equity [Abstract]  
Stockholders' Equity Stockholders' Equity
Authorized shares

We are authorized to issue two classes of stock, common stock and preferred stock. On June 9, 2015, the board of directors amended and restated our Amended and Restated Certificate of Incorporation, effective upon the closing of our initial public offering, or IPO, on July 1, 2015, and authorized us to issue up to 300,000,000 shares of common stock and 10,000,000 shares of undesignated preferred stock.

Common and Preferred Stock

As of December 31, 2024 and 2023, there were 52,756,077 and 51,888,838 shares of common stock issued, and 49,618,346 and 49,868,175 shares of common stock outstanding, respectively. As of December 31, 2024 and 2023, there were no preferred shares issued and outstanding. Each outstanding share of common stock is entitled to one vote per share.

Stock Repurchase Programs

On December 3, 2020, our board of directors authorized a stock repurchase program, under which we were authorized to purchase up to an aggregate of $100.0 million of our outstanding common stock during the three-year period ending December 3, 2023. On February 15, 2023, our board of directors authorized the cancellation of the balance under the stock repurchase program ending December 3, 2023, and also 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.
On May 24, 2024, our board of directors authorized the repurchase of our common stock in connection with the issuance of the 2029 Notes, the cancellation of the balance under the stock repurchase program ending February 23, 2025, and also authorized a stock repurchase program, effective May 31, 2024, 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 May 31, 2026. The full repurchase balance for this program of $100.0 million was available as of December 31, 2024.

During the year ended December 31, 2024, we repurchased 1,117,068 shares of our common stock for $75.0 million concurrently with the pricing of the 2029 Notes, which was separately authorized by our board of directors. During the years ended December 31, 2023 and 2022, we repurchased 487,918 and 1,385,592 shares of our common stock under our stock repurchase programs that were subsequently canceled effective May 31, 2024 and February 15, 2023, for $27.3 million and $78.8 million, respectively, which includes applicable commissions and fees. As of 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 consolidated balance sheets.

Shares Withheld

As permitted under the terms of the 2015 Plan, in 2021 the Compensation Committee authorized the withholding of shares of common stock in connection with the vesting of restricted stock unit awards issued to employees to satisfy applicable tax withholding requirements. These withheld shares are not issued or considered common stock repurchases under our stock repurchase program. We paid $3.4 million and $2.6 million of tax withholdings related to vesting of restricted stock units during the years ended December 31, 2024 and 2023, respectively. No tax withholdings related to the vesting of restricted stock units were paid during the year ended December 31, 2022. We also utilized the sell-to-cover method in which shares of our restricted stock unit awards were sold into the market on behalf of the employee upon vesting to cover tax withholding liabilities. We may utilize either the withholding method or sell-to-cover method in the future.
v3.25.0.1
Stock-Based Compensation
 12 Months Ended
Dec. 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 consolidated statements of operations (in thousands):
Year Ended December 31,
202420232022
Cost of hardware and other revenue
$2 $5 $— 
Sales and marketing2,833 3,522 4,342 
General and administrative13,080 13,028 15,037 
Research and development25,327 30,728 33,275 
Total stock-based compensation expense$41,242 $47,283 $52,654 

The following table summarizes the components of non-cash stock-based compensation expense (in thousands):
 Year Ended December 31,
 202420232022
Stock options$4,237 $4,166 $3,654 
Restricted stock units36,792 42,924 48,798 
Employee stock purchase plan213 193 202 
Total stock-based compensation expense$41,242 $47,283 $52,654 
Tax windfall benefit / (shortfall) from stock-based awards
$1,829 $(508)$2,022 

2015 Equity Incentive Plan
    
We issue stock options pursuant to our 2015 Plan. The 2015 Plan allows for the grant of stock options to employees and for the grant of nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, or RSUs, performance-based stock awards, and other forms of equity compensation to our employees, directors and non-employee directors.

In June 2015, our board of directors adopted and our stockholders approved our 2015 Plan pursuant to which we initially reserved a total of 4,700,000 shares of common stock for issuance under the 2015 Plan, which included shares of our common
stock previously reserved for issuance under our Amended and Restated 2009 Stock Incentive Plan, or the 2009 Plan. The number of shares of common stock reserved for issuance under the 2015 Plan automatically increased on January 1 each year, commencing on January 1, 2016 through January 1, 2024, by 5.0% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year, or a lesser number of shares as may be determined by the board of directors. As a result of the adoption of the 2015 Plan, no further grants may be made under the 2009 Plan. As of December 31, 2024, 11,533,781 shares remained available for future grant under the 2015 Plan. In December 2023, our board of directors determined that the January 1, 2024 increase in the number of shares reserved for issuance under the 2015 Plan would be 5.0% of the total number of shares of common stock outstanding on December 31, 2023, or 2,493,408 shares. In November 2022, our board of directors determined that the January 1, 2023 increase in the number of shares reserved for issuance under the 2015 Plan would be 5.0% of the total number of shares of common stock outstanding on December 31, 2022, or 2,472,635 shares.

Stock Options

Stock options under the 2015 Plan have been granted at exercise prices based on the closing price of our common stock on the date of grant. Stock options under the 2009 Plan were granted at exercise prices as determined by the board of directors to be the fair market value of our common stock. Our stock options generally vest over a five-year period and each option, if not exercised or forfeited, expires on the tenth anniversary of the grant date.

Certain stock options granted under the 2015 Plan and previously granted under the 2009 Plan may be exercised before the options have vested. Unvested shares issued as a result of early exercise are subject to repurchase by us upon termination of employment or services at the original exercise price. The proceeds from the early exercise of stock options are initially recorded as a current liability and are reclassified to common stock and additional paid-in capital as the awards vest and our repurchase right lapses. There were no unvested shares of common stock outstanding subject to our right of repurchase as of December 31, 2024 and 2023. We did not repurchase any unvested shares of common stock related to early exercised stock options in connection with employee terminations during the years ended December 31, 2024, 2023 and 2022. There were no proceeds from the early exercise of the unvested stock options reflected in accounts payable, accrued expenses and other current liabilities on our consolidated balance sheets as of December 31, 2024 and 2023.

We account for stock-based compensation options based on the fair value of the award as of the grant date. We recognize stock-based compensation expense using the accelerated attribution method, net of actual forfeitures, in which compensation cost for each vesting tranche in an award is recognized ratably from the service inception date to the vesting date for that tranche.

We value our stock options using the Black-Scholes option pricing model, which requires the input of subjective assumptions, including the risk-free interest rate, expected term, expected stock price volatility and dividend yield. The risk-free interest rate assumption is based upon observed interest rates for constant maturity U.S. Treasury securities consistent with the expected term of our stock options. Beginning upon the first grant of options in 2022, the expected term for options granted is estimated using our historical experience, including information related to options we have granted. The expected volatility for options granted is based on historical volatilities of our stock over the estimated expected term of the stock options.

There were 138,750, 237,400 and 184,500 stock options granted during the years ended December 31, 2024, 2023 and 2022, respectively. We declared and paid dividends in June 2015 in anticipation of our IPO, which we closed on July 1, 2015. Subsequent to the IPO, we do not expect to declare or pay dividends on a recurring basis. As such, we assume that the dividend rate is 0%.

The following table summarizes the assumptions used for estimating the fair value of stock options granted:
 Year Ended December 31,
 202420232022
Volatility
39.7 - 41.1%
40.9 - 41.9%
40.2 - 41.8%
Expected term
5.5 - 5.6 years
5.4 - 5.6 years
5.2 - 5.3 years
Risk-free interest rate
3.7 - 4.4%
3.3 - 4.4%
2.9 - 3.9%
Dividend rate— %— %— %
The following table summarizes stock option activity:
Number of
Options		Weighted
Average Exercise
Price Per Share		Weighted Average
Remaining
Contractual Life
(in years)		Aggregate
Intrinsic Value
(in thousands)
Outstanding as of December 31, 20231,270,778 $45.84 5.9$26,360 
Granted138,750 66.31 
Exercised(250,691)32.93 9,330 
Forfeited(29,577)72.72 
Expired(5,400)4.47 
Outstanding as of December 31, 20241,123,860 $50.74 5.8$14,974 
Vested and expected to vest as of December 31, 20241,123,860 $50.74 5.8$14,974 
Exercisable as of December 31, 2024634,666 $43.72 4.1$12,546 

The weighted average grant date fair value for our stock options granted during the years ended December 31, 2024, 2023 and 2022 was $29.16, $23.01 and $24.68, respectively. The total fair value of stock options vested during the years ended December 31, 2024, 2023 and 2022 was $4.2 million, $3.3 million and $3.3 million, respectively. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2024, 2023 and 2022 was $9.3 million, $5.6 million and $5.7 million, respectively. As of December 31, 2024, the total compensation cost related to nonvested awards not yet recognized was $6.2 million, which will be recognized over a weighted average period of 2.4 years. Cash received from exercises of stock options was $8.3 million, $2.0 million and $2.5 million during the years ended December 31, 2024, 2023 and 2022, respectively.
Restricted Stock Units

There was an aggregate of 628,394, 558,747 and 1,123,076 RSUs without performance conditions granted to certain of our employees and directors during the years ended December 31, 2024, 2023 and 2022, respectively. There were no RSUs with performance conditions granted during the years ended December 31, 2024 and 2023. There was an aggregate of 168,223 RSUs with performance conditions granted to certain of our employees during the year ended December 31, 2022. The time-based RSUs vest over a five-year period from the vesting commencement date, which is generally the grant date. The performance-based RSUs vest when the related performance conditions are met. Vested RSUs include the amount of shares withheld to satisfy tax withholding requirements to be paid by us on behalf of our employees, when applicable. We account for RSUs based on the fair value of the award as of the grant date. We recognize stock-based compensation expense for time-based RSUs using the accelerated attribution method, net of actual forfeitures, in which compensation cost for each vesting tranche in an award is recognized ratably from the grant date to the vesting date for that tranche. The condition for vesting of the RSUs is based on continued employment. We recognize stock-based compensation expense for performance-based RSUs based on management’s determination of the probable outcome of the performance conditions and we record a cumulative adjustment in periods in which there is a change in the estimated number of shares expected to vest. As of December 31, 2024, the total unrecognized compensation expense related to RSUs without performance conditions was $57.4 million, which is expected to be recognized over a weighted average period of 2.4 years. As of December 31, 2024, the total unrecognized compensation expense related to RSUs with performance conditions was $3.6 million, which is expected to be recognized over a weighted average period of 2.5 years.

The following table summarizes RSU activity:
RSUs without Performance ConditionsRSUs with Performance Conditions
Number of
RSUs		Weighted Average
Grant Date
Fair Value		Aggregate
Intrinsic
Value
(in thousands)		Number of
RSUs		Weighted Average
Grant Date
Fair Value		Aggregate
Intrinsic
Value
(in thousands)
Outstanding as of December 31, 20231,959,681 $63.75 $126,635 218,194 $74.86 $14,100 
Granted628,394 65.29 — — 
Vested(601,931)61.49 38,466 (33,395)60.72 2,376 
Forfeited(166,824)64.41 (30,438)60.10 
Outstanding as of December 31, 20241,819,320 $64.97 $110,615 154,361 $80.83 $9,385 
Vested and expected to vest as of December 31, 20241,819,320 $64.97 $110,615 145,410 $80.42 $8,841 

The weighted average grant date fair value for our RSUs without performance conditions granted during the years ended December 31, 2024, 2023 and 2022 was $65.29, $55.40 and $63.76, respectively. The weighted average grant date fair value for our RSUs with performance conditions granted during the year ended December 31, 2022 was $71.64. The total fair value of RSUs without performance conditions vested during the years ended December 31, 2024, 2023 and 2022 was $37.0 million, $45.3 million and $24.3 million, respectively. The total fair value of RSUs with performance conditions vested during the years ended December 31, 2024, 2023 and 2022 was $2.0 million, $3.2 million and zero, respectively.

Employee Stock Purchase Plan

Our board of directors adopted our 2015 ESPP in June 2015. As of December 31, 2024, 1,866,044 shares have been reserved for future grant under the 2015 ESPP, with provisions established to increase the number of shares available on January 1 of each subsequent year for nine years. The annual automatic increase in the number of shares available for issuance under the 2015 ESPP was the lesser of 1% of each class of common stock outstanding as of December 31 of the preceding fiscal year, 1,500,000 shares of common stock, or such lesser number as determined by the board of directors. There was no increase to the number of shares of common stock reserved for issuance under the 2015 ESPP in 2022, 2023 or 2024. The 2015 ESPP allows eligible employees to purchase shares of our common stock at 90% of the fair market value, rounded up to the nearest cent, based on the closing price of our common stock on the purchase date. The maximum number of shares of our common stock that a participant may purchase during any calendar year shall not exceed such number of shares having a fair market value equal to the lesser of $15,000 or 10% of the participant's base compensation for that year.

The 2015 ESPP is considered compensatory for purposes of share-based compensation expense due to the 10% discount on the fair market value of the common stock. An aggregate of 29,946, 33,639 and 24,994 shares were purchased by employees for the years ended December 31, 2024, 2023 and 2022, respectively, for which we recognized $0.2 million of compensation expense during each of those years. Compensation expense is recognized for the amount of the discount, net of actual forfeitures and voluntary withdrawals, over the six-month purchase period.
v3.25.0.1
Earnings Per Share
 12 Months Ended
Dec. 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):
 Year Ended December 31,
Numerator: 202420232022
Net income$122,513 $80,340 $55,631 
Net loss attributable to redeemable noncontrolling interests1,603 703 707 
Net income attributable to common stockholders - basic (A)124,116 81,043 56,338 
Add back total interest expense, net of tax, attributable to convertible senior notes
8,573 2,367 2,352 
Net income attributable to common stockholders - diluted (B)
$132,689 $83,410 $58,690 
Denominator:
Weighted average common shares outstanding — basic (C)49,641,763 49,818,448 49,926,236 
Dilutive effect of convertible senior notes, stock options and restricted stock units8,351,256 4,806,986 5,006,521 
Weighted average common shares outstanding — diluted (D)57,993,019 54,625,434 54,932,757 
Net income attributable to common stockholders per share:
Basic (A/C)$2.50 $1.63 $1.13 
Diluted (B/D)$2.29 $1.53 $1.07 

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:
 Year Ended December 31,
 202420232022
Stock options579,678 626,976 393,042 
Restricted stock units1,700 255,325 242,842 

Our redeemable noncontrolling interests relate to our 86% equity ownership interest in OpenEye, and our 85% equity ownership interest in Noonlight. See Note 2 for details on the put options and call options contained in the OpenEye and Noonlight stockholder agreements.
We use the treasury stock method when calculating the dilutive impact of the stock options and restricted stock units on net income per share. We use the if-converted method when calculating the dilutive impact of the 2026 Notes and 2029 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 the years ended December 31, 2024, 2023 and 2022. We included 3,365,132 shares related to the 2029 Notes within the weighted averages shares outstanding when calculating the diluted net income per share for the year ended December 31, 2024. Additionally, we included $8.6 million, $2.4 million and $2.4 million of interest expense and debt issuance cost amortization, net of tax, within the numerator of the diluted net income per share for the years ended December 31, 2024, 2023 and 2022, respectively.
v3.25.0.1
Significant Service Providers and Distributors
 12 Months Ended
Dec. 31, 2024
Risks and Uncertainties [Abstract]  
Significant Service Providers and Distributors Significant Service Providers and Distributors
During the years ended December 31, 2024, 2023 and 2022, our 10 largest revenue service provider partners or distributors accounted for 46%, 50% and 49% of our consolidated revenue, respectively. 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 years ended December 31, 2024, 2023 and 2022.

No service provider partners represented more than 10% of accounts receivable as of December 31, 2024. One of our service provider partners in the Alarm.com segment represented more than 10% of accounts receivable as of December 31, 2023.
v3.25.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The components of our income before income taxes are as follows (in thousands):
Year Ended December 31,
202420232022
Domestic$138,244 $97,453 $56,531 
Foreign3,563 372 62 
Total$141,807 $97,825 $56,593 

The components of our income tax expense are as follows (in thousands):
Year Ended December 31,
202420232022
Current
Federal$40,131 $51,923 $44,591 
State10,561 11,577 10,730 
Foreign3,098 1,715 680 
Total Current53,790 65,215 56,001 
Deferred
Federal(29,307)(40,519)(45,609)
State(5,277)(6,986)(9,271)
Foreign88 (225)(159)
Total Deferred(34,496)(47,730)(55,039)
Total$19,294 $17,485 $962 

The difference between the income tax expense at the federal statutory rate and income tax expense in the consolidated statements of operations is as follows:
Year Ended December 31,
202420232022
Federal statutory rate21.0 %21.0 %21.0 %
State income tax expense, net of federal benefits2.4 3.0 1.0 
Foreign tax rate differential
0.2 0.1 — 
Nondeductible meals and entertainment0.4 0.2 0.9 
Foreign-derived intangible income deduction(3.4)(4.4)(7.0)
Valuation allowance0.8 0.7 0.4 
Research and development tax credits(10.0)(7.2)(16.5)
Tax (windfall benefits) / shortfall
(1.1)0.4 (3.0)
Foreign withholding tax 1.3 1.3 1.2 
Nondeductible compensation 1.0 1.0 1.8 
Income tax underpayment interest, net of tax benefit
0.6 1.1 0.7 
Other0.4 0.7 1.2 
Effective rate13.6 %17.9 %1.7 %
The components of our net deferred tax assets (liabilities) are as follows (in thousands):
December 31,
20242023
Deferred tax assets, non-current
Provision for credit losses on accounts receivable$1,459 $1,500 
Depreciation292 401 
Accrued expenses6,615 6,324 
Deferred revenue2,997 2,681 
Operating lease liabilities18,149 8,107 
Stock-based compensation20,060 21,040 
Acquisition costs1,852 2,107 
Inventory reserve566 529 
Net operating losses1,610 2,600 
Tax credits4,334 3,535 
Capitalized research and development expenditures135,619 99,799 
Capped call premium
13,416 — 
Other3,430 2,873 
Total deferred tax assets, non-current prior to valuation allowance210,399 151,496 
Valuation allowance(5,012)(3,754)
Total deferred tax assets, non-current, net of valuation allowance205,387 147,742 
Deferred tax liabilities, non-current
Intangible assets and prepaid patent licenses(2,574)(3,552)
Operating lease right-of-use assets(13,199)(5,983)
Depreciation(5,953)(4,267)
Sales commissions(1,706)(1,477)
Equity investments (161)(161)
Other deferred tax liabilities
(510)(487)
Total deferred tax liabilities, non-current(24,103)(15,927)
Net deferred tax assets, non-current$181,284 $131,815 

A reconciliation of the beginning and ending amounts of unrecognized tax benefits (without related interest expense) is as follows (in thousands):
Year Ended December 31,
202420232022
Beginning balance$9,063 $7,596 $5,541 
Additions based on tax positions of the current year1,978 1,589 1,881 
Additions based on tax positions of prior year617 204 225 
Decreases based on tax positions of prior year(2)(205)(51)
Decreases for tax positions taken in the prior year due to settlement
(2,220)— — 
Decreases due to lapse of applicable statute of limitations(312)(121)— 
Ending balance$9,124 $9,063 $7,596 

Our effective income tax rates were 13.6%, 17.9% and 1.7% for the years ended December 31, 2024, 2023 and 2022, respectively. For the year ended December 31, 2024, the 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 and tax windfall benefits from employee stock-based compensation, partially offset by the impact of state taxes, foreign withholding taxes and other nondeductible expenses. For the year ended December 31, 2023, the 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 taxes, foreign withholding taxes, federal estimated tax payment interest expense, other nondeductible expenses and a stock-based compensation tax shortfall. For the year ended December 31, 2022, the effective tax rate was below the 21.0% statutory rate primarily due to research and development tax credits claimed, foreign derived intangible income deductions and tax windfall benefits from employee stock-based compensation, partially offset by the impact of nondeductible expenses, foreign withholding taxes and state 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 $5.0 million, $3.8 million and $2.6 million as of December 31, 2024, 2023 and 2022, respectively.

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 increase to the unrecognized tax benefits liability of $0.1 million, primarily due to a liability for research and development tax credits claimed, partially offset by the closure of the 2018 and 2019 Internal Revenue Service federal income tax return examination and the release of a state unrecognized tax benefit liability due to the statute of limitations expiration during the year ended December 31, 2024. We recorded a net increase to the unrecognized tax benefits liability of $1.5 million and $2.1 million primarily for research and development tax credits claimed during the years ended December 31, 2023 and 2022, respectively. We believe it is reasonably possible within the next 12 months that a decrease of up to $1.3 million in unrecognized tax benefits may be recognized as a result of a lapse of the statute of limitations.

Our unrecognized tax benefits as of December 31, 2024 and 2023 includes unrecognized tax benefits of $9.1 million and $8.9 million, respectively, that if recognized, would reduce our income tax expense and effective tax rate.

As of December 31, 2024 and 2023, our consolidated balance sheets included a $0.9 million and $0.8 million accrual for total interest expense related to unrecognized tax benefits, respectively. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense.

As of December 31, 2024, we had gross U.S. federal net operating loss carryforwards of $5.9 million, which will begin to expire in 2031, and Canadian federal net operating loss carryforwards of $0.1 million, which are scheduled to begin to expire in 2034. As of December 31, 2024, we had state net operating loss carryforwards of $4.6 million, which will begin to expire in 2031. As of December 31, 2024, we had less than $0.1 million of federal research and development tax credit carryforwards that will begin to expire in 2041. As of December 31, 2024, we had state research and development tax credit carryforwards of $5.0 million, which will begin to expire in 2030. The federal net operating loss carryforward arose in connection with the 2013 acquisition of EnergyHub and the 2022 acquisition of Noonlight. Utilization of the acquired EnergyHub and Noonlight net operating loss carryforwards may be subject to annual limitations due to ownership change limitations as provided by the Internal Revenue Code of 1986, as amended.

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 paid $0.6 million in additional federal taxes, including interest, during the three months ended June 30, 2024, and recognized a net income tax benefit of $1.7 million during the three months ended March 31, 2024.

As of December 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.
v3.25.0.1
Segment Information
 12 Months Ended
Dec. 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 92%, 93% and 94% of our revenue, net of intersegment eliminations, for the years ended December 31, 2024, 2023 and 2022, respectively. 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):
Year Ended December 31, 2024
 Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$564,513 $66,685 $— $— $631,198 
Hardware and other revenue306,074 5,979 (2,769)(655)308,629 
Total revenue
870,587 72,664 (2,769)(655)939,827 
Cost of SaaS and license revenue
68,666 20,809 329 (292)89,512 
Cost of hardware and other revenue
234,414 5,414 (2,630)(561)236,637 
Total cost of revenue
303,080 26,223 (2,301)(853)326,149 
Selling and marketing expense
88,899 22,343 — — 111,242 
General and administrative expense
101,401 7,478 — — 108,879 
Research and development expense
227,559 28,319 — — 255,878 
Amortization and depreciation expense
28,107 1,024 — — 29,131 
Total operating expenses
445,966 59,164 — — 505,130 
Operating income / (loss)$121,541 $(12,723)$(468)$198 $108,548 
Assets$2,081,214 $85,468 $(128,465)$(9)$2,038,208 
Reconciliation of operating income to income before income taxes
Operating income$108,548 
Interest expense(11,426)
Interest income47,359 
Other (expense) / income, net(2,674)
Income before income taxes$141,807 
Year Ended December 31, 2023
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$514,673 $54,527 $— $— $569,200 
Hardware and other revenue309,778 6,501 (3,201)(596)312,482 
Total revenue824,451 61,028 (3,201)(596)881,682 
Cost of SaaS and license revenue 71,639 17,852 (2,967)(626)85,898 
Cost of hardware and other revenue 237,660 5,760 (3,771)(388)239,261 
Total cost of revenue 309,299 23,612 (6,738)(1,014)325,159 
Selling and marketing expense 82,672 17,554 — — 100,226 
General and administrative expense 107,475 5,935 (480)— 112,930 
Research and development expense 220,106 25,008 — — 245,114 
Amortization and depreciation expense 30,337 1,087 — — 31,424 
Total operating expenses440,590 49,584 (480)— 489,694 
Operating income / (loss)$74,562 $(12,168)$4,017 $418 $66,829 
Assets$1,477,674 $73,621 $(111,725)$(7)$1,439,563 
Reconciliation of operating income to income before income taxes
Operating income$66,829 
Interest expense(3,429)
Interest income29,801 
Other (expense) / income, net4,624 
Income before income taxes$97,825 
Year Ended December 31, 2022
 Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$478,134 $42,243 $— $— $520,377 
Hardware and other revenue317,937 9,097 (4,067)(785)322,182 
Total revenue
796,071 51,340 (4,067)(785)842,559 
Cost of SaaS and license revenue
59,725 14,172 415 (415)73,897 
Cost of hardware and other revenue
265,828 7,776 (4,419)(501)268,684 
Total cost of revenue
325,553 21,948 (4,004)(916)342,581 
Selling and marketing expense
76,927 15,821 — — 92,748 
General and administrative expense
99,081 8,087 (480)— 106,688 
Research and development expense
198,127 20,508 — — 218,635 
Amortization and depreciation expense
29,639 1,231 — — 30,870 
Total operating expenses
403,774 45,647 (480)— 448,941 
Operating income / (loss)$66,744 $(16,255)$417 $131 $51,037 
Reconciliation of operating income to income before income taxes
Operating income$51,037 
Interest expense(3,144)
Interest income8,759 
Other (expense) / income, net(59)
Income before income taxes$56,593 

Our SaaS and license revenue for the Alarm.com segment included software license revenue of $20.3 million, $23.2 million and $26.8 million for the years ended December 31, 2024, 2023 and 2022, respectively. There was no software license revenue recorded for the Other segment during the years ended December 31, 2024, 2023 and 2022. Additions to property and equipment were $20.1 million, $8.9 million and $28.4 million for the Alarm.com segment for the years ended December 31, 2024, 2023 and 2022, respectively. Additions to property and equipment were $0.1 million, $0.2 million and $0.3 million for the Other segment for the years ended December 31, 2024, 2023 and 2022, respectively.

We derived substantially all revenue from North America for the years ended December 31, 2024, 2023 and 2022. Substantially all of our long-lived assets were in North America as of December 31, 2024 and 2023.
v3.25.0.1
Quarterly Financial Data (unaudited)
 12 Months Ended
Dec. 31, 2024
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Data (unaudited) Quarterly Financial Data (unaudited)
The following table shows selected unaudited quarterly consolidated statement of operations data for each of our eight most recently completed quarters. In the opinion of management, the information for each of these quarters has been prepared on the same basis as our audited financial statements and include all adjustments, consisting of normal recurring adjustments and accruals, necessary for the fair statement of financial information in accordance with GAAP. However, the global economy, credit markets and financial markets have and may continue to experience significant volatility as a result of Macroeconomic Conditions. These Macroeconomic Conditions have and may continue to create tariffs, 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.
Information about current and prior period acquisitions that may affect the comparability of the selected financial information presented below is included in Note 7, and information about current and prior period legal matters that may affect the comparability of the selected financial information presented below is included in Note 13. Information about the 2029 Notes issued in May 2024 and the related interest expense, which may affect the comparability of the quarterly financial data presented below, is included in Note 13. The selected consolidated statements of operation data in amounts are presented below (in thousands, except per share data):
 Three Months Ended
Mar. 31,
2023
June 30,
2023
Sept. 30,
2023
Dec. 31,
2023
Mar. 31,
2024
June 30,
2024
Sept. 30,
2024
Dec. 31,
2024
Total revenue$209,716 $223,875 $221,854 $226,237 $223,283 $233,807 $240,497 $242,240 
Total cost of revenue76,172 86,367 81,405 81,215 76,515 81,282 84,748 83,604 
Net income14,207 15,611 19,351 31,171 23,404 32,520 36,456 30,133 
Net income attributable to common stockholders14,416 15,799 19,524 31,304 23,595 33,511 36,682 30,328 
Net income per share attributable to common stockholders
Basic$0.29 $0.32 $0.39 $0.63 $0.47 $0.67 $0.74 $0.61 
Diluted$0.28 $0.30 $0.37 $0.58 $0.44 $0.62 $0.67 $0.56 
v3.25.0.1
Subsequent Events
 12 Months Ended
Dec. 31, 2024
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events
Loan to a Service Provider Partner

On January 30, 2025, we entered into a senior secured loan agreement with a service provider partner, under which a term loan was provided to the service provider partner in the original principal amount of $21.5 million, which loan is collateralized by the assets of the service provider partner. Quarterly principal payments begin in the second quarter of 2027. Interest on the outstanding principal accrues at a rate per annum equal to the overnight financing rate published by the Federal Reserve Bank of New York for a period of three months, plus 3.0%. For the first two years of the loan, monthly interest payments can be payable in kind at the election of the borrower. The maturity date of the loan is January 30, 2030.

Acquisition

On February 10, 2025, Alarm.com Incorporated, one of our wholly-owned subsidiaries, acquired 81% of the issued and outstanding shares of capital stock of CHeKT, Inc., or CHeKT. CHeKT provides a remote video monitoring service for central station operators that is compatible with a variety of cameras. We believe the acquisition of CHeKT will help to expand our opportunity to provide remote video monitoring solutions in the commercial and residential markets.

In consideration for the purchase of 81% of the issued and outstanding shares of capital stock of CHeKT, we paid $23.6 million in cash on February 10, 2025, after deducting $3.7 million related to agreed holdback provisions. We are currently evaluating the accounting treatment of this acquisition and are in the process of completing the preliminary purchase price allocation of the assets acquired and liabilities assumed.
v3.25.0.1
Schedule II - Valuation and Qualifying Accounts and Reserves
 12 Months Ended
Dec. 31, 2024
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation and Qualifying Accounts and Reserves
Schedule II
Valuation and Qualifying Accounts and Reserves
(In thousands)
DescriptionBalance at
Beginning of
Year		Additions
Charged
Against
Revenue		Additions
Charged to
Other
Accounts		DeductionsBalance at
End of Year
Year Ended December 31, 2024
Allowance for credit losses on accounts receivable$3,864 $— $950 $(944)$3,870 
Allowance for product returns2,279 3,187 — (3,018)2,448 
Allowance for credit losses on notes receivable5 — 3,996 (4,000)1 
Deferred tax valuation allowance3,754 — 2,642 (1,384)5,012 
Year Ended December 31, 2023
Allowance for credit losses on accounts receivable$2,835 $— $1,508 $(479)$3,864 
Allowance for product returns1,551 4,399 — (3,671)2,279 
Allowance for credit losses on notes receivable2 — 3 — 5 
Deferred tax valuation allowance2,591 — 2,204 (1,041)3,754 
Year Ended December 31, 2022
Allowance for credit losses on accounts receivable$2,168 $— $1,156 $(489)$2,835 
Allowance for product returns1,181 4,746 — (4,376)1,551 
Allowance for credit losses on notes receivable80 — (78)— 2 
Deferred tax valuation allowance2,209 — 1,337 (955)2,591 
v3.25.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Pay vs Performance Disclosure                
Net Income (Loss) $ 30,328 $ 36,682 $ 33,511 $ 23,595 $ 31,304 $ 19,524 $ 15,799 $ 14,416
v3.25.0.1
Insider Trading Arrangements
 3 Months Ended 12 Months Ended
Dec. 31, 2024
shares
Dec. 31, 2024
shares
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
During the three months ended December 31, 2024, the following directors or officers (as defined in Rule 16a‑1(f) under the Exchange Act) adopted, modified or terminated a Rule 10b5‑1 trading arrangement (as defined in Item 408(a) of Regulation S-K) intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act:

Name and Title Action Total Number of Shares to be Sold Pursuant to the Trading ArrangementAdoption Date Expiration Date
Daniel Kerzner, President, Platforms Business
Adoption
Sale of up to 53,668 shares of common stock
December 17, 2024December 31, 2025
Darius Nevin, Director
Adoption
Sale of up to 36,000 shares of common stock
December 16, 2024May 14, 2026
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
Daniel Kerzner [Member]    
Trading Arrangements, by Individual    
Name Daniel Kerzner  
Title President, Platforms Business  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date December 17, 2024  
Expiration Date December 31, 2025  
Arrangement Duration 379 days  
Aggregate Available 53,668 53,668
Darius Nevin [Member]    
Trading Arrangements, by Individual    
Name Darius Nevin  
Title Director  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date December 16, 2024  
Expiration Date May 14, 2026  
Arrangement Duration 514 days  
Aggregate Available 36,000 36,000
v3.25.0.1
Insider Trading Policies and Procedures
 12 Months Ended
Dec. 31, 2024
Insider Trading Policies and Procedures [Line Items]  
Insider Trading Policies and Procedures Adopted true
v3.25.0.1
Cybersecurity Risk Management and Strategy Disclosure
 12 Months Ended
Dec. 31, 2024
Cybersecurity Risk Management, Strategy, and Governance [Line Items]  
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block]
Our business is highly dependent on the processing and storage of significant amounts of data, and we have invested and will continue to invest in measures to secure this data. We have implemented and maintain a comprehensive information security program consisting of policies, procedures, and technology designed to maintain the privacy, security and integrity of our data, intellectual property, confidential information, systems and networks. Our information security program is informed by externally established sets of standards, such as those of the National Institute of Standards and Technology and the Center for Internet Security. Among other things, the program includes controls designed to limit and monitor access to our systems, networks and data, prevent inappropriate or unauthorized access or modification, and monitor for threats or vulnerability. We maintain disaster recovery solutions and implement enhancements as necessary and use technologies that assist in preventing theft and abuse of credentials and sensitive data. We also have third parties perform penetration tests as well as security assessments of mobile applications. Our information security program also includes third-party risk management processes that help us oversee and identify risks from our use of third-party service providers. Additionally, we focus our efforts on education and training for employees regarding cybersecurity and implementing security controls for contractors. We also engage consultants to conduct cybersecurity assessments and preparedness analysis. We primarily conduct our business in the United States and are expanding internationally in various other countries. Conducting expanded international operations subjects us to additional risks, including our exposure to cybersecurity incidents.

The risks related to cybersecurity change rapidly, and we aim to update our information security program as frequently as reasonably possible to achieve commercially accepted levels of preparedness. In addition to the core operating environment of Alarm.com, we also have acquired businesses and subsidiaries that in some cases operate data infrastructure that is distinct from the Alarm.com operating environment, and therefore have distinct data security vulnerabilities. The overall management of cybersecurity risk involves coordination between Alarm.com and our acquired businesses and subsidiaries, and data security risks in these entities may be heightened where the technology platform is less mature than the Alarm.com core platform.
Cybersecurity Risk Management Processes Integrated [Flag] true
Cybersecurity Risk Management Processes Integrated [Text Block] Our business is highly dependent on the processing and storage of significant amounts of data, and we have invested and will continue to invest in measures to secure this data. We have implemented and maintain a comprehensive information security program consisting of policies, procedures, and technology designed to maintain the privacy, security and integrity of our data, intellectual property, confidential information, systems and networks.
Cybersecurity Risk Management Third Party Engaged [Flag] true
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] true
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] false
Cybersecurity Risk Board of Directors Oversight [Text Block] We have established an Information Security team led by our Chief Information Officer, who has over 30 years of experience in information technology and cloud operations. Our Information Security team is responsible for assessing, identifying and managing risks from cybersecurity threats. Managing cybersecurity risk has been integrated into our overall risk management system and is a priority that we monitor and review regularly with our board of directors. The Information Security team works closely with our Legal team to make determinations whether a cybersecurity incident has occurred and whether the incident has materially impacted or is reasonably likely to materially impact us. If a cybersecurity incident is deemed material, the incident would be communicated to various members of the Alarm.com leadership team and with the board of directors. The board of directors oversees our overall risk management system, including cybersecurity risks. The Chief Information Officer presents at quarterly Board meetings and discusses specific risk areas, including those relating to cybersecurity.
Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] We have established an Information Security team led by our Chief Information Officer, who has over 30 years of experience in information technology and cloud operations. Our Information Security team is responsible for assessing, identifying and managing risks from cybersecurity threats.
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] If a cybersecurity incident is deemed material, the incident would be communicated to various members of the Alarm.com leadership team and with the board of directors.
Cybersecurity Risk Role of Management [Text Block] The Information Security team works closely with our Legal team to make determinations whether a cybersecurity incident has occurred and whether the incident has materially impacted or is reasonably likely to materially impact us. If a cybersecurity incident is deemed material, the incident would be communicated to various members of the Alarm.com leadership team and with the board of directors. The board of directors oversees our overall risk management system, including cybersecurity risks. The Chief Information Officer presents at quarterly Board meetings and discusses specific risk areas, including those relating to cybersecurity.
Cybersecurity Risk Management Positions or Committees Responsible [Flag] true
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] We have established an Information Security team led by our Chief Information Officer, who has over 30 years of experience in information technology and cloud operations. Our Information Security team is responsible for assessing, identifying and managing risks from cybersecurity threats
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] We have established an Information Security team led by our Chief Information Officer, who has over 30 years of experience in information technology and cloud operations.
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] The Chief Information Officer presents at quarterly Board meetings and discusses specific risk areas, including those relating to cybersecurity.
Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] true
v3.25.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2024
Accounting Policies [Abstract]  
Principles of Consolidation
Principles of Consolidation

Our consolidated financial statements include our accounts and those of our majority-owned and controlled subsidiaries after elimination of intercompany accounts and transactions. Equity investments over which we are able to exercise significant influence but do not control the investee are accounted for using the equity method.

We determine whether we have a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity, or VIE. Voting interest entities are entities that have sufficient equity and provide equity investor voting rights that give them power to make significant decisions relating to the entity’s operations. The usual condition for a controlling financial interest in a voting interest entity is ownership of a majority voting interest. In VIEs, a controlling financial interest is attained through means other than voting rights and the entities lack one or more of the characteristics of a voting entity.

We have unconsolidated equity investments in third-party businesses. Equity investments with readily determinable fair values are recorded at fair value. Equity investments without readily determinable fair values are recorded 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. We make a separate election to use the measurement alternative for each eligible investment, and reassess whether an investment qualifies for the alternative at each reporting period. Adjustments resulting from impairment, fair value or observable price changes are recorded in other (expense) / income, net in our consolidated statements of operations.
Use of Estimates
Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, or 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. 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 (including the ongoing conflicts in Ukraine, and in Israel and surrounding areas), disruptions to global supply chains, fluctuations in interest rates, risk of recession and inflation (collectively, the Macroeconomic Conditions). 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.
Cash and Cash Equivalents
Cash and Cash Equivalents
We consider all highly liquid instruments purchased with an original maturity from the date of purchase of three months or less to be cash equivalents.
Accounts Receivable and Notes Receivable
Accounts Receivable
Accounts receivable are principally derived from sales to customers located in the United States and Canada.Our accounts receivable are stated at estimated realizable value.
Notes Receivable
Notes receivable are presented net of an allowance for uncollectibility, if any. We accrue interest on notes receivable based on the contractual terms of the note. Outstanding notes receivable that are aged 30 days or more from the contractual payment date are considered past due. Notes receivable are evaluated for impairment at least quarterly. Impairment occurs when it is deemed probable that we will not be able to collect all amounts due according to the contractual terms of the loan. Factors considered in determining impairment include payment status, collateral value and the probability of collecting payments when due.
Restricted Cash
Restricted Cash
We consider all cash reserved for a specific use and not available for immediate or general business use to be restricted cash.
Credit Losses
Credit Losses

The allowance for credit losses is a valuation account that is deducted from the accounts receivable and notes receivable amortized cost basis 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. These risk characteristics are relevant to accounts receivable and notes receivable.

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 years ended December 31, 2024, 2023 and 2022 we recorded credit loss expense of $4.7 million, $1.0 million and $0.8 million in general and administrative expense in our consolidated statements of operations, respectively. 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.

Credit Losses - Accounts Receivable

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 years ended December 31, 2024, 2023 and 2022, 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 year ended December 31, 2024, as compared to historical periods.

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. During the year ended December 31, 2024, we wrote off $4.0 million related to a note receivable that originated in 2017 with an affiliate entity of one of our distribution partners, or the Affiliate, and reversed the
previously allowance for credit losses recorded earlier in 2024. There were no purchases or sales of financial assets during the years ended December 31, 2024 and 2023. There were no hardware financing receivables outstanding as of December 31, 2024 and 2023.

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 December 31, 2024 and 2023 was $0.2 million and $0.1 million, respectively, and is reflected in other current assets and other assets within our consolidated balance sheets and excluded from the amortized cost basis of the notes receivable. During the year ended December 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 years ended December 31, 2023 and 2022.
Inventory
Inventory

Our inventory, which is comprised of raw materials, work-in-process and finished goods, includes materials used to produce our wireless communications network enabled radios, video cameras, video recorders, smart thermostats, gunshot detection sensors, home automation system parts and peripherals, is stated at the lower of cost or net realizable value, and is charged to cost of sales primarily on a first in, first out, or FIFO, basis when the inventory is shipped from our manufacturer and received by our service provider partners. We periodically evaluate our inventory quantities for obsolescence based on criteria such as customer demand and changing technology and record an obsolescence write-off when necessary.
Leases
Leases

We determine if an arrangement contains a lease at the inception of the arrangement. As part of the lease determination process, we assess several factors, including, but not limited to, whether we have the right to control and direct the use of the asset and whether the other party has a substantive substitution right. If we enter into leases that contain multiple components, we identify separate lease components based on whether or not the right to use the underlying assets is distinct and either highly dependent or highly interrelated with other rights in the contract. We also evaluate whether there are any non-lease components in the arrangement. For certain classes of underlying assets, such as data centers, we have elected not to separate non-lease components from lease components. For all other classes of underlying assets, if separate lease and non-lease components are identified, we allocate the consideration in the contract to the lease and non-lease components using the relative stand-alone selling price method at the lease inception.

Some of our leases include options to renew at our sole discretion. We also have several leases that provide us an option to terminate the lease prior to the end of the lease term. These renewal and termination options are included in the lease term at the commencement date when we are reasonably certain the options will be exercised. When assessing the likelihood of electing these options, we consider the length of the renewal period, market conditions, our expansion plans, the existence of a termination penalty, as well as other factors. Our lease agreements do not contain any material residual value guarantees, restrictive covenants or variable lease payments.

Right-of-use, or ROU, assets represent our right to use an underlying asset for the term of the lease and lease liabilities represent our obligation to make lease payments throughout the term of the lease. ROU assets and lease liabilities are recognized as of the commencement date of the lease based on the present value of contractual lease payments due over the term of the lease. We use our incremental borrowing rate to determine the present value of the lease payments, as our leases do not state the rate implicit in the lease. Our incremental borrowing rate is determined on a collateralized basis at the commencement date of the lease.

ROU assets and lease liabilities resulting from operating leases are recorded on our consolidated balance sheets. We did not have any finance leases or subleases as of December 31, 2024 and 2023.

Lease expense is recognized on a straight-line basis over the term of the lease. Office and equipment lease expense is recorded in general and administrative expense and data center lease expense recorded in cost of SaaS and license revenue as well as research and development expense. Some of our leases include tenant improvement allowances, which are recorded when we are reasonably certain to utilize the allowance and are amortized on a straight-line basis over the shorter of the lease terms or the asset lives. Leases with an initial lease term of twelve months or less are considered short-term leases. Short-term leases are not recorded on our consolidated balance sheets. Expenses associated with short-term leases are recognized on a
straight-line basis over the term of the lease and are recorded in general and administrative expense.
Convertible Senior Notes
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. On May 31, 2024, we issued $500.0 million aggregate principal amount of 2.25% convertible senior notes due June 1, 2029, in a private placement to qualified institutional buyers, or the 2029 Notes. Prior to the January 1, 2022 adoption of Accounting Standards Update, or ASU, 2020-06, "Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity," we separated the 2026 Notes into liability and equity components. In accounting for the issuance of our convertible senior notes, the carrying amount of the liability component was calculated by measuring the fair value of a similar liability that did not have an associated convertible feature, using a discounted cash flow model with a risk adjusted yield. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the 2026 Notes as a whole. This difference between the aggregate principal amount and the liability component represented a debt discount that was amortized to interest expense using the effective interest method over the term of the notes. Transaction costs attributable to the liability component were netted with the liability component and amortized to interest expense using the effective interest method over the term of the 2026 Notes. Transaction costs attributable to the equity component were netted with the equity component of the notes in additional paid-in capital in the consolidated balance sheets. The equity component was not remeasured as long as it continued to meet the conditions for equity classification.

We adopted ASU 2020-06 effective January 1, 2022, using a modified retrospective adoption method, which required us to record the initial effect of this guidance as a cumulative-effect adjustment to retained earnings on January 1, 2022. Upon adoption of ASU 2020-06, we recombined the liability and equity components of the 2026 Notes assuming that the instrument was accounted for as only a liability from inception to the date of adoption. We also recombined the liability and equity components of the debt issuance costs. We also removed the temporary difference between the book and tax treatment of the debt discount and adjusted the temporary difference between the book and tax treatment of the debt issuance costs of the 2026 Notes.

The issuance costs are presented as a deduction from the outstanding principal balance of the 2026 Notes and 2029 Notes and are amortized to interest expense using the effective interest method over the contractual term of the 2026 Notes and 2029 Notes.
Capped Call Transactions
Capped Call Transactions

On May 31, 2024, we issued the 2029 Notes. In connection with the offering of the 2029 Notes, we entered into privately negotiated capped call transactions with one of the initial purchasers and certain other financial institutions, at a cost of $63.1 million. The capped call transactions cover, subject to customary adjustments substantially similar to those applicable to the 2029 Notes, the number of shares of our common stock initially underlying the 2029 Notes. As the capped call options are both legally detachable and separately exercisable from the 2029 Notes, we account for the capped call options separately from the 2029 Notes. The capped call options are indexed to our own common stock and classified in stockholders’ equity. As such, the premiums paid for the capped call options were included as a net reduction to additional paid-in capital in the consolidated balance sheets. The capped call transactions will not be remeasured as long as they continue to meet the conditions for equity classification.

We elected to integrate the capped call options with the 2029 Notes for federal income tax purposes pursuant to applicable U.S. Treasury Regulations. Accordingly, the $63.1 million cost of the purchased capped calls will be deductible for income tax purposes. The original issue discount is accreted over the term of the 2029 Notes.
Comprehensive Income
Comprehensive Income

Comprehensive income consists of net income and other comprehensive (loss) / income. Other comprehensive (loss) / income refers to gains and losses that are recorded as an element of stockholders' equity and excluded from net income. Our other comprehensive (loss) / income consists of foreign currency translation adjustments.
Foreign Currency
Foreign Currency

For foreign operations where substantially all monetary transactions are in the local currency, we use the local currency as the functional currency. For these foreign operations, assets and liabilities are translated at period-end exchange rates and revenue and expense items are translated at average exchange rates prevailing during the periods being reported. The effects of translating financial statements of foreign operations into our reporting currency are recognized as a cumulative translation adjustment within accumulated other comprehensive income, a separate component of stockholders’ equity. Gains or losses from foreign currency remeasurements that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in our results of operations.
Redeemable Noncontrolling Interests
Redeemable Noncontrolling Interests
Noncontrolling interests with redemption features that are not solely within our control are considered redeemable noncontrolling interests. Our redeemable noncontrolling interests relate to our 86% equity ownership interest in PC Open Incorporated, a Washington corporation, doing business as OpenEye and our 85% equity ownership interest in Noonlight, Inc., or Noonlight, a Delaware corporation (see Note 7). The OpenEye and Noonlight stockholder agreements contain a put option that gives the minority stockholders the right to sell their shares to us based on the fair value of the shares and also contain a call option that gives us the right to purchase the remaining shares from the minority stockholders based on the fair value of the shares. The next put and call options related to OpenEye can each be exercised beginning in the first quarter of 2025. The put and call options related to Noonlight can each be exercised beginning in the first quarter of 2026. These redeemable noncontrolling interests are considered temporary equity and we report them between liabilities and stockholders’ equity in the consolidated balance sheets. The amount of the net income or loss attributable to the redeemable noncontrolling interests is recorded in the consolidated statements of operations and the accretion of the redemption values is recorded as an adjustment to additional paid-in capital. We account for purchases of redeemable noncontrolling interest as a component of stockholders' equity when control is maintained. We recognize the difference between the consideration paid for the acquired redeemable noncontrolling interest and the fair value of the acquired redeemable noncontrolling interest as an adjustment to additional paid-in capital.
Internal-Use Software
Internal-Use Software

We capitalize the costs directly related to the development of internal-use software for our platforms during the application development stage of the projects. Such costs primarily include payroll and payroll-related costs for engineers and product development employees directly associated with the development project. Our internal-use software is reported at cost less accumulated amortization. Amortization begins once the project is ready for its intended use, which is usually when the code goes into production in weekly software builds on our platforms. We amortize the asset on a straight-line basis over the estimated useful life, which is typically a three to five-year period. We update our software for our SaaS multi-tenant platforms on a weekly basis utilizing continuous agile development methods, which primarily consists of bug-fixes and user interface changes. We evaluate whether a project should be capitalized if it adds significant functionality to our platforms. Maintenance activities or minor upgrades are expensed in the period performed.
External Software and Research and Development
External Software
Costs incurred in researching and developing a computer software product that will be marketed and sold are charged to expense when incurred until technological feasibility is established. Technological feasibility is established upon completion of a detailed program design or, in its absence, completion of a working model. After technological feasibility is established, certain payroll and payroll-related costs are capitalized for engineers and product development employees directly associated with the development project. Cost capitalization ceases when the product is available for general release. Our non-hosted software is typically developed in an agile environment with frequent revisions to product release features and functions. Agile development results in a short duration between completion of the detailed program design and beta release.
Research and Development

Our research and development costs consist primarily of personnel and related expenses for our employees working on our product development and software and device engineering teams, including salaries, bonuses, stock-based compensation, benefits and other personnel costs. Our research and development of new products and services is a multidisciplinary effort across our product management, program management, software engineering, device engineering, quality engineering, configuration management and network operations teams. Also included are non-personnel costs, such as consulting and professional fees paid to third-party development resources. We invest substantial resources in research and development to enhance our platforms and applications, support our technology infrastructure, develop new capabilities and conduct quality assurance testing.
Revenue Recognition
Revenue Recognition

We derive our revenue from three primary sources: the sale of cloud-based SaaS services on our integrated Alarm.com platform, the sale of licenses and services on our non-hosted software platform, or Software platform, and the sale of hardware products. We sell our platform and hardware solutions to service provider partners that resell our solutions and hardware to residential and commercial property owners, who are the service provider partners’ customers. Our subscribers consist of all of the properties maintained by those residential and commercial property owners to which we are delivering at least one of our solutions. We also sell our hardware to distributors who resell the hardware to service provider partners. We enter into contracts with our service provider partners that establish pricing for access to our platform solutions and for the sale of hardware. These service provider contracts typically have an initial term of one year, with subsequent renewal terms of one year. Our service provider partners have indicated that they typically have three to five-year service contracts with residential and commercial property owners who use our solutions.

Our hardware sales includes connected devices that enable our services, such as video cameras, video recorders, smart thermostats, image sensors, gunshot detection sensors, gateway modules and peripherals. Our service provider partners may purchase our hardware in anticipation of installing the hardware in a residential or commercial property when they create a new subscriber account, or for use in existing subscriber properties. The purchase of hardware occurs in a transaction that is separate and typically in advance of the purchase of our platform services. The performance obligation is primarily satisfied when the hardware is received by our service provider partner or distributor. Service provider partners transact with us to purchase our platform solutions and resell our solutions to a new subscriber, or to upgrade or downgrade the solutions of an existing subscriber, at which time the subscriber’s access to our platform solutions is enabled and the delivery of the services commences. Our performance obligation related to providing our platform solutions is satisfied on a daily basis as the subscriber uses the platform services. The purchase of platform solutions and the purchase of hardware are separate transactions as revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We generate all of our revenue from contracts with customers.

SaaS and license revenue associated with our contracts is recognized at an amount that corresponds directly with the value of the performance completed to date. Additionally, the consideration received from hardware sales corresponds directly with the stand-alone selling price of the hardware. As a result, we have elected to use the practical expedient related to the amount of transaction price allocated to the unsatisfied performance obligations and therefore, we have not disclosed the total remaining revenue expected to be recognized on all contracts or the expected period over which the remaining revenue would be recognized.

To determine the transaction price, we analyze all of the performance obligations included in the contract. We consider the terms of the contract and our customary business practices, which typically do not include financing components or non-cash consideration. We have variable consideration primarily in the form of rebate incentives. The significant inputs related to our estimates of variable consideration include the volume and amount of products and services sold historically and expected to be sold in the future, the availability and performance of our services and the historical and expected number of returns. Depending on the type of variable consideration and its predictability, we may apply an "expected value" approach or a "most likely amount" approach. We estimate the variable consideration at the onset of a contract and include the variable consideration within the transaction price if it is probable that a significant reversal of the variable consideration would not occur in the future. When determining whether the amount of variable consideration included in the transaction price should be constrained, we look at the history of hardware purchased and subscribers added by our service provider partners to estimate the likelihood of those service provider partners obtaining the rebates. At times, our contracts include consideration payable to a customer in the form of fixed discounts or rebates. We record the consideration payable to a customer as a reduction to the transaction price resulting in a reduction to revenue over the service period.

If we enter into contracts that contain multiple promised services, we evaluate which of the promised services represent separate performance obligations based on whether or not the promised services are distinct and whether or not the services are separable from other promises in the contract. If these criteria are met, then we allocate the transaction price to the performance obligations using the relative stand-alone selling price method at contract inception.

In determining the relative estimated selling prices, we consider market conditions, entity-specific factors and information about the customer or class of customer. Any discount within the contract is allocated proportionately to all of the separate performance obligations in the contract unless the terms of discount relate specifically to the entity’s efforts to satisfy some but not all of the performance obligations.

For our standard service provider agreements, we have used a portfolio approach for purposes of revenue recognition, as each agreement has similar characteristics and we do not expect the effects of applying this approach would have a material impact on our financial statements as compared to assessing each agreement individually.
SaaS and License Revenue

We generate the majority of our SaaS and license revenue primarily from monthly fees charged to our service provider partners on a per subscriber basis for access to our cloud-based intelligently connected property platform and related solutions. Our fees per subscriber vary based upon the service plan and features utilized.

Under the terms of our contractual arrangements with our service provider partners, we bill a monthly fee to our service provider partners in advance of the month of service, with the exception of the initial partial month of service, which is paid in arrears. Due to the limited period of time between receipt of payment and delivery of service, we have not accounted for these advance payments as significant financing components. We typically transfer the promised SaaS services to our customers over time, which is evidenced by the fact that the customers receive and consume the benefits provided by our performance of the services as such services are rendered. As a result, we recognize revenue from SaaS services on a monthly basis as we satisfy our performance obligations over the period of service. We have demonstrated that we can sell our SaaS offering on a stand-alone basis, as it can be sold separately from hardware and activation services. Our service provider partners typically incur and pay the same monthly fee per subscriber account for the entire period a subscriber account is active.

We offer multiple service level packages for our platform solutions including a range of solutions and a range of a la carte add-ons for additional features. The fee paid by our service provider partners each month for the delivery of our solutions is based on the combination of packages and add-ons enabled for each subscriber. We utilize tiered pricing plans where our service provider partners may receive prospective pricing discounts driven by volume.

We also generate SaaS and license revenue from the fees paid to us when we license our intellectual property to third parties for use of our patents. We bill a monthly fee to third parties based on the number of customers that were active during the prior month. We apply the usage-based royalty exception to recognize license revenue because the sole or predominant item to which the royalty relates is the license of intellectual property. Under the usage-based royalty exception, we recognize revenue on a monthly basis over the period of service. In addition, in certain markets, our EnergyHub subsidiary sells its demand response service for an annual service fee, with pricing based on the number of subscribers or amount of aggregate electricity demand made available for a utility’s or market’s control.

Software License Revenue

Our SaaS and license revenue also includes our software license revenue from monthly fees charged to service providers on a per subscriber basis for access to our Software platform. The non-hosted software for interactive security, automation and related solutions is typically deployed and operated by the service provider in its own network operations center. Our agreements for the Software platform solution typically include software and services, such as post-contract customer support, or PCS. Software sales that include multiple elements are typically allocated to the various elements using the relative stand-alone selling price method. We apply the usage-based royalty exception to recognize license revenue associated with software hosted by our customers because the predominant item to which the royalty relates is the license of intellectual property. Under the usage-based royalty exception, we recognize revenue on a monthly basis over the period during which the services are expected to be performed. Under the terms of our contractual arrangements with our service provider partners, we are entitled to payment of a monthly fee that is billed per subscriber for the month of service. Our software license revenue during the years ended December 31, 2024, 2023 and 2022 was $20.3 million, $23.2 million and $26.8 million, respectively.

Hardware and Other Revenue

We generate hardware and other revenue primarily from the sale of video cameras, video recorders, smart thermostats and cellular radio modules that provide access to our cloud-based platforms and, to a lesser extent, the sale of other devices, including image sensors, gunshot detection sensors and peripherals. We primarily transfer hardware to our customers upon delivery to the customer, which corresponds with the time at which the customer obtains control of the hardware. As a result, we recognize hardware and other revenue as we satisfy our performance obligations, which primarily occurs when the hardware is received by our service provider partner or distributor, net of a reserve for estimated returns. There are a few contracts in which we provide shipping and handling services to the customer after control of the hardware transfers to the customer. In these instances, we have elected to account for shipping and handling costs as activities performed to fulfill the promise to transfer hardware to the customer and not as a separate promised service.

Amounts due from the sale of hardware are payable in accordance with the terms of our agreements with our service provider partners or distributors, and are not contingent on resale to end-users, or to service provider partners in the case of sales of hardware to distributors. Payment for our hardware is typically due within 30 days from shipment. Our distributors sell directly to our service provider partners under terms between the two parties.

When determining the amount of consideration we expect to be entitled to for the sale of our hardware, we estimate the variable consideration associated with customer returns. We record a reserve against revenue for hardware returns based on historical returns. For each of the years ended December 31, 2024, 2023 and 2022, our reserve against revenue for hardware
returns was 1% of hardware and other revenue. We evaluate our hardware reserve on a quarterly basis or if there is an indication of significant changes in return experience. Historically, our returns of hardware have not significantly differed from our estimated reserve. Additionally, we provide warranties related to the intended functionality of the products and services provided and those warranties typically allow for the return of hardware up to one year past the date of sale. We determined that these warranties are not separate performance obligations as they cannot be purchased separately and do not provide a service in addition to an assurance the hardware will function as expected.

Our hardware and other revenue also includes our revenue from the sale of perpetual licenses that provide our customers in the commercial market the right to use our video surveillance software for an indefinite period of time in exchange for a one-time license fee. Our hardware and other revenue also includes our revenue from the sale of licenses that provide our customers the right to use our indoor gunshot detection solution in exchange for license fees. Our perpetual licenses and licenses to our indoor gunshot detection solution provide a right to use intellectual property that is functional in nature and has significant stand-alone functionality. Accordingly, for licenses of functional intellectual property, revenue is recognized at the point-in-time when control has been transferred to the customer, which occurs once the software has been made available to the customer.

Hardware and other revenue may also include activation fees charged to some of our service provider partners for activation of a new subscriber account on our platforms, as well as fees paid by service provider partners for our marketing services. Our service provider partners use services on our platforms, such as support tools and applications, to assist in the installation of our solutions in subscriber properties. This installation marks the beginning of the service period on our platforms and, on occasion, we earn activation revenue for fees charged for this service. The activation fee is non-refundable, separately negotiated and specified in our contractual arrangements with our service provider partners and is charged to the service provider partner for each subscriber activated on our platforms. The decision whether to charge an activation fee is based in part on the expected number of subscribers to be added by our service provider partners and as a result, many of our largest service provider partners do not pay an activation fee. Activation fees are not offered on a stand-alone basis separate from our SaaS offering and are billed and received at the beginning of the arrangement. We record activation fees initially as deferred revenue and we recognize these fees ratably over the expected term of the subscribers’ account which we estimate is 10 years based on our annual attrition rate. The portion of these activation fees included in current and long-term deferred revenue as of our balance sheet date represents the amounts that will be recognized ratably as revenue over the following twelve months, or longer as appropriate, until the 10-year expected term is complete. The balance of deferred revenue for activation fees was $4.3 million and $4.8 million as of December 31, 2024 and 2023, respectively, which combines current and long-term balances.

Cost of Revenue

Our cost of SaaS and license revenue primarily includes the amounts paid to wireless network providers and, to a lesser extent, the costs of running our network operations centers which are expensed as incurred, as well as patent and royalty costs in connection with technology licensed from third-party providers and amounts paid to distributed energy resource providers. Our cost of SaaS and license revenue also includes our cost of software license revenue, which primarily includes the payroll and payroll-related costs of the department dedicated to providing service exclusively to those service providers that host the Software platform. Our cost of software license revenue during the years ended December 31, 2024, 2023 and 2022 was $0.6 million, $0.6 million and $0.5 million, respectively. Our cost of hardware and other revenue primarily includes cost of raw materials, tooling, freight shipments and amounts paid to our third-party manufacturer for production and fulfillment of our cellular radio modules and image sensors, and procurement costs for our video cameras, video recorders, smart thermostats and gunshot detection sensors, which we purchase from an original equipment manufacturer, and other devices. Cost of hardware and other revenue also includes material costs and labor cost related to our employees who manufacture hardware for our suite of IoT solutions. Additionally, our cost of hardware and other revenue includes royalty costs in connection with technology licensed from third-party providers.

We record the cost of SaaS and license revenue as expenses are incurred, which corresponds to the delivery period of our services to our subscribers. We record the cost of hardware and other revenue primarily when the hardware and other services are delivered to the service provider partner, which occurs when control of the hardware and other services transfers to the service provider partner. Our cost of revenue excludes amortization and depreciation shown in operating expenses.

Contract Asset and Contract Liability Balances

At contract inception, we assess the goods and services promised in our contracts with customers and identify a performance obligation for each distinct promise to transfer a good or service, or bundle of goods or services. To identify the performance obligations, we consider all of the goods or services promised in the contract, whether explicitly stated or implied based on customary business practices. We record a contract asset when we satisfy a performance obligation by transferring a promised good or service. Contract assets can be conditional or unconditional depending on whether another performance obligation must be satisfied before payment can be received. We receive payments from our service provider partners based on the billing schedule established in our contracts. All of the accounts receivable presented in the consolidated balance sheets represent unconditional rights to consideration. We do not have any assets from contracts containing conditional rights and we do not have any assets from satisfied performance obligations that have not been invoiced.
We recognize an asset related to the costs incurred to obtain a contract only if we expect to recover those costs and we would not have incurred those costs if the contract had not been obtained. We recognize an asset from the costs incurred to fulfill a contract if the costs (i) are specifically identifiable to a contract, (ii) enhance resources that will be used in satisfying performance obligations in future and (iii) are expected to be recovered. Our assets related to costs incurred to obtain a contract consist of capitalized commission costs and upfront payments made to a customer. Based on the policy above, we capitalize a portion of our commission costs as an incremental cost of obtaining a contract. When calculating the incremental cost of obtaining a contract, we exclude any commission costs related to metrics that could be satisfied without obtaining a contract, including training-related metrics. We amortize our commission costs to sales and marketing expense on our consolidated statements of operations over a period of three years, which is consistent with the period over which the products and services related to the commission are transferred to the customer. The three-year period was determined based on our review of historical enhancements and upgrades to our products and services. We applied the portfolio approach to account for the amortization of contract costs for those contracts that have similar characteristics. Upfront payments made to a customer are capitalized and amortized over the expected period of benefit and are recorded as a reduction to revenue.

Contract liabilities include payments received in advance of performance under the contract and are realized with the associated revenue recognized under the contract. All of the deferred revenue presented in the consolidated balance sheets represents contract liabilities resulting from advance cash receipts from customers or amounts billed in advance to customers from the sale of services. Changes in deferred revenue are due to our performance under the contract as well as to cash received from new contracts for which services have not been provided.
Fair Value Measurements
Fair Value Measurements

The accounting standard for fair value measurements provides a framework for measuring fair value and requires disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. This accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date;

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for similar assets and liabilities, either directly or indirectly; quoted prices in markets that are not active; and

Level 3 - Unobservable inputs supported by little or no market activity.

The carrying amount of financial assets, including cash and cash equivalents and accounts receivable, as well as accounts payable approximates fair value because of the short maturity and liquidity of those instruments.

Assets and Liabilities Measured at Fair Value on a Recurring Basis - In 2024 and 2023, we recorded assets for our money market accounts and liabilities for a contingent consideration liability related to acquisitions at fair value on a recurring basis. In 2024 we recorded assets for our equity securities with readily determinable fair values on a recurring basis. Prior to the termination of the long-term incentive plan with one of our subsidiaries in May 2022, we recorded liabilities for the long-term incentive plan at fair value on a recurring basis.

Assets Measured at Fair Value on a Nonrecurring Basis - We measure certain assets, including property and equipment, goodwill and intangible and long-lived assets at fair value on a nonrecurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired. Additionally, equity investments without readily determinable fair values are recognized at fair value on a nonrecurring basis when observable price changes from orderly transactions for identical or similar investments become available.
Concentration of Credit Risk
Concentration of Credit Risk

The financial instruments that potentially subject us to concentrations of credit risk consists principally of cash and cash equivalents and accounts receivables. All of our cash and cash equivalents are held at financial institutions that management believes to be of high credit quality. Our cash and cash equivalent accounts may exceed federally insured limits at times. We mitigate the risk of loss for our cash and cash equivalents by depositing funds with a number of reputable financial institutions and monitoring risk profiles and investment strategies of money market funds. We have not experienced any losses on cash and cash equivalents to date. To manage accounts receivable risk, we evaluate the credit worthiness of our service provider partners and maintain an allowance for credit losses. The majority of our accounts receivable balance is due from our service provider partners in North America. We assess the concentrations of credit risk with respect to accounts receivables based on one industry and one geographic region and believe our reserve for uncollectible accounts is appropriate based on our history and this concentration.
Stock-Based Compensation
Stock-Based Compensation

We compensate our executive officers, board of directors and employees with stock-based compensation plans under our 2015 Equity Incentive Plan, or 2015 Plan. We record stock-based compensation expense related to time-based restricted stock units based upon the award’s grant date fair value and use an accelerated attribution method, net of actual forfeitures, in which compensation cost for each vesting tranche in an award is recognized ratably from the service inception date to the vesting date for that tranche. We record stock-based compensation expense related to performance-based restricted stock units based on management’s determination of the probable outcome of the performance conditions and we record a cumulative adjustment in periods in which there is a change in the estimated number of shares expected to vest. Our equity awards generally vest over five years and are settled in shares of our common stock. During 2024, 2023 and 2022, we recognized compensation expense of $41.2 million, $47.3 million and $52.7 million, respectively. During 2024 and 2022 we recognized an associated tax windfall benefit from stock-based awards of $1.8 million and $2.0 million, respectively. During 2023, we recognized a tax shortfall from stock-based awards of $0.5 million. We account for stock-based compensation arrangements with non-employees based upon the award’s grant date fair value. We estimate the fair value of each option granted on the date of the grant using the Black-Scholes option-pricing model, which contains uncertainties and requires us to estimate the risk-free interest rate, expected term, expected stock price volatility and dividend yield. Beginning upon the first grant of options in 2022, the expected term for options granted is estimated using our historical experience, including information related to options we have granted.

Our Employee Stock Purchase Plan, or 2015 ESPP, allows eligible employees to purchase shares of our common stock at 90% of the fair market value of the closing price on the purchase date. The maximum number of shares of our common stock that a participant may purchase during any calendar year is limited to the lesser of 10% of the participant's base compensation for that year or the number of shares with a fair market value of $15,000. The 2015 ESPP is considered compensatory for purposes of share-based compensation expense. Compensation expense is recognized for the amount of the discount, net of actual forfeitures, over the six-month purchase period.
We account for stock-based compensation options based on the fair value of the award as of the grant date. We recognize stock-based compensation expense using the accelerated attribution method, net of actual forfeitures, in which compensation cost for each vesting tranche in an award is recognized ratably from the service inception date to the vesting date for that tranche.

We value our stock options using the Black-Scholes option pricing model, which requires the input of subjective assumptions, including the risk-free interest rate, expected term, expected stock price volatility and dividend yield. The risk-free interest rate assumption is based upon observed interest rates for constant maturity U.S. Treasury securities consistent with the expected term of our stock options. Beginning upon the first grant of options in 2022, the expected term for options granted is estimated using our historical experience, including information related to options we have granted. The expected volatility for options granted is based on historical volatilities of our stock over the estimated expected term of the stock options.
We account for RSUs based on the fair value of the award as of the grant date. We recognize stock-based compensation expense for time-based RSUs using the accelerated attribution method, net of actual forfeitures, in which compensation cost for each vesting tranche in an award is recognized ratably from the grant date to the vesting date for that tranche.
401(k) Defined Contribution Plan
401(k) Defined Contribution Plan
We adopted the Alarm.com Holdings 401(k) Plan, or the Plan, on April 30, 2009. All of our employees are eligible to participate in the Plan. For the years ended December 31, 2024, 2023 and 2022, our discretionary match was 100% of employee contributions up to 10% of salary and up to a $5,000 maximum match.
Business Combinations
Business Combinations

We are required to allocate the purchase price of acquired companies to the identifiable tangible and intangible assets acquired and liabilities assumed at the acquisition date based upon their estimated fair values. The net assets and results of operations of an acquired entity are included in our consolidated financial statements from the acquisition date. Acquisition-related costs are expensed as incurred. Goodwill as of the acquisition date represents the excess of the purchase consideration of an acquired business over the fair value of the underlying net tangible and intangible assets acquired net of liabilities assumed. This valuation requires management to apply significant judgment in estimating the fair value of long-lived and intangible assets acquired, which involves the use of significant estimates and assumptions. 

Significant estimates and assumptions in valuing certain acquired customer relationship intangible assets include estimates about future expected cash flows and discount rates. Significant estimates and assumptions in valuing acquired developed technology intangible assets include estimates about future expected cash flows, obsolescence factors and discount rates. Significant estimates and assumptions in valuing acquired trade name intangible assets include estimates about future expected cash flows, royalty rates and discount rates.
During the measurement period, we may record adjustments to the assets acquired and liabilities assumed. Any adjustments to provisional amounts that are identified during the measurement period are recorded in the reporting period in which the adjustment amounts are determined. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings.

Some acquisitions may include contingent consideration, which is an obligation to make future payments to the seller contingent upon the achievement of future operational or financial targets. The fair value of the contingent consideration is estimated on a quarterly basis and changes in the fair value of the contingent consideration resulting from information that existed subsequent to the acquisition date are recorded in the consolidated statements of operations.
Goodwill, Intangible Assets and Long-lived Assets
Goodwill, Intangible Assets and Long-lived Assets

Goodwill

Goodwill represents the excess of (1) the aggregate of the fair value of consideration transferred in a business combination, over (2) the fair value of assets acquired, net of liabilities assumed. Goodwill is allocated to our reporting units, which are our operating segments or one level below our operating segments. Goodwill is not amortized, but is subject to annual impairment tests. We perform our annual impairment review of goodwill on October 1 and when a triggering event occurs between annual impairment tests. We test our goodwill at the reporting unit level. We perform either a qualitative analysis or a quantitative analysis every year depending on the changes to our goodwill balance as well as changes in our business and the economy. Qualitative factors we consider include, but are not limited to, macroeconomic conditions, industry and market conditions, company specific events, changes in circumstances and market capitalization. The amount of goodwill impairment is calculated as the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill.

For our 2024 annual impairment review, we performed a qualitative assessment for our Alarm.com reporting unit, our only reporting unit with a goodwill balance. Based on the results of our qualitative assessment, we determined that it was not more likely than not that the fair value of our reporting unit was less than its carrying amount, including goodwill. Therefore, we concluded that there was no goodwill impairment as of October 1, 2024. Our assessment was performed as of October 1, 2024, and we have determined there has been no triggering events that resulted in goodwill impairment from our assessment date through December 31, 2024.

Intangible Assets and Long-lived Assets

Intangible assets are initially valued at fair value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over their estimated useful lives. We evaluate the recoverability of our intangible assets with definite lives and long-lived assets for impairment whenever events or circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability of intangible assets with definite lives and long-lived assets are measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset.
Advertising Costs
Advertising Costs
We expense advertising costs as incurred.
Accounting for Income Taxes
Accounting for Income Taxes

We account for income taxes under the asset and liability method as required by Accounting Standards Codification, or ASC 740, "Income Taxes," which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that are included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies and results of recent operations.
We are subject to income taxes in the United States and foreign jurisdictions based upon our business operations in those jurisdictions. Significant judgment is required in evaluating uncertain tax positions. We record uncertain tax positions in accordance with ASC 740-10 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position, and (2) with respect to those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is greater than 50% likely to be realized upon ultimate settlement with the related tax authority. We record interest and penalties as a component of our income tax provision.
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.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.
Treasury Stock
Treasury Stock

We account for treasury stock under the cost method and present treasury stock, including any applicable commissions and fees, as a component of stockholders’ equity in the consolidated balance sheets and statements of equity. As of 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 consolidated balance sheets. Treasury stock held by us may be retired or reissued in the future.
Earnings per Share
Earnings per Share

Our basic net income per share attributable to common stockholders is calculated by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period.

Our diluted net income per share attributable to common stockholders is calculated by giving effect to all potentially dilutive common stock when determining the weighted-average number of common shares outstanding. For purposes of the diluted net income per share calculation, restricted stock units, options to purchase common stock and unvested shares issued upon the early exercise of options that are subject to repurchase are considered to be potential common stock.

We use the treasury stock method when calculating the dilutive impact of the stock options and restricted stock units on net income per share. We use the if-converted method when calculating the dilutive impact of the 2026 Notes and 2029 Notes on net income per share. As a result, we included 3,396,950 shares related to the 2026 Notes and 3,365,132 shares related to the 2029 Notes within the weighted average shares outstanding when calculating the diluted net income per share. Additionally, we included interest expense and debt issuance cost amortization, net of tax, within the numerator of the diluted net income per share.

Our redeemable noncontrolling interests are related to our 86% equity ownership interest in OpenEye and our 85% equity ownership interest in Noonlight. When calculating net income attributable to the common stockholders, net loss attributable to our redeemable noncontrolling interests should be excluded from net income. As a result, net income attributable to the common stockholders is equal to the net income less the net loss attributable to redeemable noncontrolling interests as of the end of each period.
Recent Accounting Pronouncements
Recent Accounting Pronouncements

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. This amendment is required to be applied retrospectively to all prior periods presented. We adopted ASU 2023-07 during the fiscal year ended December 31, 2024, which increased the amount of disclosures within Note 19 related to segment expenses.

Not Yet Adopted

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.

On November 5, 2024, the FASB issued ASU 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)," which requires more detailed information about the types of expenses included in certain expense captions presented on the consolidated statements of operations, including purchases of inventory, employee compensation, depreciation, amortization and depletion. Additionally, this amendment requires the disclosure of a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and the disclosure of the total amount of selling expenses and, on an annual basis, an entity's definition of selling expenses. The amendment is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. This amendment should be applied either on a prospective basis or a retrospective basis to any or all prior periods presented. We are currently assessing the impact this pronouncement will have on our consolidated financial statement disclosures.
Property and Equipment, Net Property and Equipment, Net
Furniture, fixtures and office equipment, computer software and hardware, internal-use software, construction in progress, leasehold improvements and real property and improvements are recorded at cost and presented net of depreciation on the consolidated balance sheets. We record land at historical cost. Furniture, fixtures and office equipment and computer software and hardware are depreciated on a straight-line basis over lives generally ranging from three to five years. Internal-use software included in fixed assets is amortized on a straight-line basis over a three-year period. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease terms or the asset lives. Real property is amortized on a straight-line basis over lives ranging from 15 to 39 years and the improvements related to real property are amortized on a straight-line basis over the shorter of the life of the underlying real property or the asset lives.
v3.25.0.1
Revenue from Contracts with Customers (Tables)
 12 Months Ended
Dec. 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):
Year Ended December 31,
202420232022
Beginning of period balance$9,099 $13,975 $4,520 
Commission costs and upfront payments to a customer capitalized in period10,292 7,837 14,270 
Reimbursement of previously capitalized upfront payments to customers
— (6,774)— 
Amortization of contract assets(7,303)(5,939)(4,815)
End of period balance$12,088 $9,099 $13,975 
The changes in our contract liabilities are as follows (in thousands):
Year Ended December 31,
202420232022
Beginning of period balance$22,885 $18,332 $14,837 
Revenue deferred and acquired in period26,883 22,861 18,617 
Revenue recognized from amounts included in contract liabilities(23,209)(18,308)(15,122)
End of period balance$26,559 $22,885 $18,332 
v3.25.0.1
Accounts Receivable, Net (Tables)
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Schedule of Components of Accounts Receivable
The components of accounts receivable, net are as follows (in thousands):
December 31,
20242023
Accounts receivable$132,400 $136,769 
Allowance for credit losses(3,870)(3,864)
Allowance for product returns(2,448)(2,279)
Accounts receivable, net$126,082 $130,626 
Schedule of Changes in Allowance for Credit Losses for Accounts Receivable
The changes in our allowance for credit losses for accounts receivable are as follows (in thousands):
Year Ended December 31, 2024Year Ended December 31, 2023
 Alarm.com
and Certain
Subsidiaries		All Other
Subsidiaries		Alarm.com
and Certain
Subsidiaries		All Other
Subsidiaries
Beginning of period balance$(3,723)$(141)$(2,755)$(80)
(Provision for) / recovery of expected credit losses(956)6 (1,399)(109)
Write-offs902 42 431 48 
End of period balance$(3,777)$(93)$(3,723)$(141)
The changes in our allowance for credit losses for notes receivable are as follows (in thousands):
Year Ended December 31, 2024Year Ended December 31, 2023
Beginning of period balance$(5)$(2)
Provision for expected credit losses
(3,996)(3)
Write-offs4,000 — 
End of period balance$(1)$(5)
v3.25.0.1
Inventory (Tables)
 12 Months Ended
Dec. 31, 2024
Inventory Disclosure [Abstract]  
Schedule of Components of Inventory
The components of inventory are as follows (in thousands):
December 31,
20242023
Raw materials$23,881 $30,452 
Work-in-process595 275 
Finished goods62,959 65,413 
Total inventory$87,435 $96,140 
v3.25.0.1
Property and Equipment, Net (Tables)
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Summary of Property and Equipment
The components of property and equipment, net are as follows (in thousands):
December 31,
20242023
Furniture, fixtures and office equipment$10,325 $9,839 
Computer software and hardware41,197 34,913 
Internal-use software8,949 8,949 
Construction in progress14,809 3,581 
Leasehold improvements34,397 33,555 
Real property and improvements11,322 12,079 
Land22,684 22,693 
Total property and equipment143,683 125,609 
Accumulated depreciation(80,478)(71,445)
Property and equipment, net$63,205 $54,164 
v3.25.0.1
Acquisitions (Tables)
 12 Months Ended
Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Schedule of Consideration and Fair Value of Assets Acquired
The table below sets forth the purchase consideration and the fair value allocation of the tangible and intangible net assets acquired (in thousands):
September 23, 2022
Calculation of Purchase Consideration:
Cash paid, net of working capital adjustment$31,805 
Outstanding principal and interest of loan provided to Noonlight1,537 
Holdback consideration4,910 
Total consideration$38,252 
Tangible and Intangible Net Assets:
Cash$188 
Accounts receivable 291 
Other current and non-current assets200 
Property and equipment45 
Deferred tax assets424 
Developed technology9,335 
Trade names150 
Accounts payable(321)
Accrued expenses and other current liabilities(318)
Deferred revenue(67)
Redeemable noncontrolling interest(6,770)
Goodwill35,095 
Total tangible and intangible net assets$38,252 
v3.25.0.1
Goodwill and Intangible Assets, Net (Tables)
 12 Months Ended
Dec. 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, 2023$148,183 $— $148,183 
Goodwill acquired - initial measurement
7,200 — 7,200 
Measurement period adjustment(1,509)— (1,509)
Foreign currency translation adjustment
624 — 624 
Balance as of December 31, 2023154,498 — 154,498 
Foreign currency translation adjustment (287)— (287)
Balance as of December 31, 2024$154,211 $— $154,211 
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 Costs
Other
Total
Balance as of January 1, 2023$47,522 $33,553 $1,383 $— $— $82,458 
Intangible assets acquired2,395 11,583 537 — — 14,515 
Capitalized software development costs
— — — 882 — 882 
Amortization(10,623)(7,962)(703)(3)— (19,291)
Balance as of December 31, 202339,294 37,174 1,217 879 — 78,564 
Intangible assets acquired— 1,585 — — 46 1,631 
Capitalized software development costs— — — 1,798 — 1,798 
Amortization(9,669)(8,216)(717)(232)— (18,834)
Balance as of December 31, 2024$29,625 $30,543 $500 $2,445 $46 $63,159 
The following tables reflect the weighted-average remaining life and carrying value of finite-lived intangible assets (in thousands, except weighted-average remaining life):
 December 31, 2024
 Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Value		Weighted-
Average
Remaining Life
(in years)
Customer relationships$128,280 $(98,655)$29,625 5.3
Developed technology71,316 (40,773)30,543 4.0
Trade name4,474 (3,974)500 2.9
Capitalized software development costs2,680 (235)2,445 3.7
Other
46 — 46 5.0
Total intangible assets$206,796 $(143,637)$63,159 4.6
    
 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
Schedule of Future Estimated Amortization Expense
The following table reflects the future estimated amortization expense for intangible assets (in thousands):
Year Ended December 31,Amortization
2025$17,925 
202616,678 
202714,231 
20289,448 
20292,542 
2030 and thereafter2,335 
Total future amortization expense$63,159 
v3.25.0.1
Other Assets (Tables)
 12 Months Ended
Dec. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Changes in Allowance for Credit Losses for Accounts Receivable
The changes in our allowance for credit losses for accounts receivable are as follows (in thousands):
Year Ended December 31, 2024Year Ended December 31, 2023
 Alarm.com
and Certain
Subsidiaries		All Other
Subsidiaries		Alarm.com
and Certain
Subsidiaries		All Other
Subsidiaries
Beginning of period balance$(3,723)$(141)$(2,755)$(80)
(Provision for) / recovery of expected credit losses(956)6 (1,399)(109)
Write-offs902 42 431 48 
End of period balance$(3,777)$(93)$(3,723)$(141)
The changes in our allowance for credit losses for notes receivable are as follows (in thousands):
Year Ended December 31, 2024Year Ended December 31, 2023
Beginning of period balance$(5)$(2)
Provision for expected credit losses
(3,996)(3)
Write-offs4,000 — 
End of period balance$(1)$(5)
Schedule of Financing Receivable Credit Quality Indicators The following tables reflect the current and delinquent notes receivable by class of financing receivables and by year of origination (in thousands):
December 31, 2024
Loan Receivables:20242023202220212020PriorTotal
Current$500 $146 $1,500 $— $993 $— $3,139 
30-59 days past due— — — — — — — 
60-89 days past due— — — — — — — 
90-119 days past due— — — — — — — 
120+ days past due— — — — — — — 
Total$500 $146 $1,500 $— $993 $— $3,139 
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 
v3.25.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 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
Level 1Level 2Level 3Total
Assets:
Money market accounts as of December 31, 2024
$1,209,474 $— $— $1,209,474 
Equity securities with readily determinable fair value as of December 31, 2024
7,425 — — 7,425 
Money market accounts as of December 31, 2023
679,734 — — 679,734 
Liabilities:
Contingent consideration liability from acquisition as of December 31, 2024
$— $— $2,169 $2,169 
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 liabilities with significant unobservable inputs (in thousands):
Year Ended December 31,
20242023
2022
Contingent Consideration Liability from Acquisition
Contingent Consideration Liability from Acquisition
Subsidiary Long-Term Incentive Plan
Beginning of period balance$2,061 $— $3,351 
Acquired liabilities— 1,993 — 
Changes in fair value included in earnings108 68 (247)
Reclassification to additional paid in capital upon modification
— — (3,104)
End of period balance$2,169 $2,061 $— 
v3.25.0.1
Leases (Tables)
 12 Months Ended
Dec. 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):
Year Ended December 31,
202420232022
Operating lease cost$13,084 $11,484 $10,499 
Cash paid for amounts included in the measurement of operating lease liabilities12,467 13,947 12,723 
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities38,872 5,262 7,474 

December 31, 2024December 31, 2023
Weighted-average remaining lease term — operating leases7.8 years3.0 years
Weighted-average discount rate — operating leases8.2 %4.9 %
Schedule of Maturities of Lease Liabilities
Maturities of lease liabilities are as follows (in thousands):
Year Ended December 31,
Operating Leases(1)
2025$13,130 
202611,820 
202712,063 
202811,503 
202911,052 
2030 and thereafter43,457 
Total lease payments103,025 
Less: imputed interest(2)
29,791 
Present value of lease liabilities$73,234 
_______________
(1)Operating lease payments exclude $13.6 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.
v3.25.0.1
Liabilities (Tables)
 12 Months Ended
Dec. 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):
December 31,
2024		December 31,
2023
Accounts payable$65,615 $39,038 
Accrued expenses29,443 21,559 
Income taxes payable 28,045 42,501 
Holdback liability from business combinations and asset acquisitions— 7,340 
Contingent consideration liability from acquisition
1,216 — 
Other current liabilities15,108 14,037 
Accounts payable, accrued expenses and other current liabilities$139,427 $124,475 

The components of other liabilities are as follows (in thousands):
December 31,
2024		December 31,
2023
Contingent consideration liability from acquisition$953 $2,061 
Other liabilities14,526 10,636 
Other liabilities$15,479 $12,697 
v3.25.0.1
Debt, Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 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):
December 31,
2024		December 31,
2023
Principal$500,000 $500,000 
Unamortized debt issuance costs(3,319)(6,485)
Net carrying amount$496,681 $493,515 
Interest expense related to the 2026 Notes is as follows (in thousands):
Year Ended December 31,
202420232022
Amortization of debt issuance costs$3,166 $3,145 $3,126 
Total interest expense$3,166 $3,145 $3,126 
The net carrying amount of the liability component of the 2029 Notes is as follows (in thousands):
December 31,
2024
Principal$500,000 
Unamortized debt issuance costs(13,204)
Net carrying amount$486,796 

Interest expense related to the 2029 Notes is as follows (in thousands):
Year Ended December 31,
2024
Interest expense
$6,593 
Amortization of debt issuance costs1,630 
Total interest expense$8,223 
v3.25.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 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 consolidated statements of operations (in thousands):
Year Ended December 31,
202420232022
Cost of hardware and other revenue
$2 $5 $— 
Sales and marketing2,833 3,522 4,342 
General and administrative13,080 13,028 15,037 
Research and development25,327 30,728 33,275 
Total stock-based compensation expense$41,242 $47,283 $52,654 

The following table summarizes the components of non-cash stock-based compensation expense (in thousands):
 Year Ended December 31,
 202420232022
Stock options$4,237 $4,166 $3,654 
Restricted stock units36,792 42,924 48,798 
Employee stock purchase plan213 193 202 
Total stock-based compensation expense$41,242 $47,283 $52,654 
Tax windfall benefit / (shortfall) from stock-based awards
$1,829 $(508)$2,022 
Summary of Assumptions Used for Estimating Fair Value of Stock Options
The following table summarizes the assumptions used for estimating the fair value of stock options granted:
 Year Ended December 31,
 202420232022
Volatility
39.7 - 41.1%
40.9 - 41.9%
40.2 - 41.8%
Expected term
5.5 - 5.6 years
5.4 - 5.6 years
5.2 - 5.3 years
Risk-free interest rate
3.7 - 4.4%
3.3 - 4.4%
2.9 - 3.9%
Dividend rate— %— %— %
Summary of Stock Option Activity
The following table summarizes stock option activity:
Number of
Options		Weighted
Average Exercise
Price Per Share		Weighted Average
Remaining
Contractual Life
(in years)		Aggregate
Intrinsic Value
(in thousands)
Outstanding as of December 31, 20231,270,778 $45.84 5.9$26,360 
Granted138,750 66.31 
Exercised(250,691)32.93 9,330 
Forfeited(29,577)72.72 
Expired(5,400)4.47 
Outstanding as of December 31, 20241,123,860 $50.74 5.8$14,974 
Vested and expected to vest as of December 31, 20241,123,860 $50.74 5.8$14,974 
Exercisable as of December 31, 2024634,666 $43.72 4.1$12,546 
Schedule of Unvested Restricted Stock Units
The following table summarizes RSU activity:
RSUs without Performance ConditionsRSUs with Performance Conditions
Number of
RSUs		Weighted Average
Grant Date
Fair Value		Aggregate
Intrinsic
Value
(in thousands)		Number of
RSUs		Weighted Average
Grant Date
Fair Value		Aggregate
Intrinsic
Value
(in thousands)
Outstanding as of December 31, 20231,959,681 $63.75 $126,635 218,194 $74.86 $14,100 
Granted628,394 65.29 — — 
Vested(601,931)61.49 38,466 (33,395)60.72 2,376 
Forfeited(166,824)64.41 (30,438)60.10 
Outstanding as of December 31, 20241,819,320 $64.97 $110,615 154,361 $80.83 $9,385 
Vested and expected to vest as of December 31, 20241,819,320 $64.97 $110,615 145,410 $80.42 $8,841 
v3.25.0.1
Earnings Per Share (Tables)
 12 Months Ended
Dec. 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):
 Year Ended December 31,
Numerator: 202420232022
Net income$122,513 $80,340 $55,631 
Net loss attributable to redeemable noncontrolling interests1,603 703 707 
Net income attributable to common stockholders - basic (A)124,116 81,043 56,338 
Add back total interest expense, net of tax, attributable to convertible senior notes
8,573 2,367 2,352 
Net income attributable to common stockholders - diluted (B)
$132,689 $83,410 $58,690 
Denominator:
Weighted average common shares outstanding — basic (C)49,641,763 49,818,448 49,926,236 
Dilutive effect of convertible senior notes, stock options and restricted stock units8,351,256 4,806,986 5,006,521 
Weighted average common shares outstanding — diluted (D)57,993,019 54,625,434 54,932,757 
Net income attributable to common stockholders per share:
Basic (A/C)$2.50 $1.63 $1.13 
Diluted (B/D)$2.29 $1.53 $1.07 
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:
 Year Ended December 31,
 202420232022
Stock options579,678 626,976 393,042 
Restricted stock units1,700 255,325 242,842 
v3.25.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Components of Income before Income Taxes
The components of our income before income taxes are as follows (in thousands):
Year Ended December 31,
202420232022
Domestic$138,244 $97,453 $56,531 
Foreign3,563 372 62 
Total$141,807 $97,825 $56,593 
Schedule of Components of Income Tax Expense (Benefit)
The components of our income tax expense are as follows (in thousands):
Year Ended December 31,
202420232022
Current
Federal$40,131 $51,923 $44,591 
State10,561 11,577 10,730 
Foreign3,098 1,715 680 
Total Current53,790 65,215 56,001 
Deferred
Federal(29,307)(40,519)(45,609)
State(5,277)(6,986)(9,271)
Foreign88 (225)(159)
Total Deferred(34,496)(47,730)(55,039)
Total$19,294 $17,485 $962 
Schedule of Effective Income Tax Rate Reconciliation
The difference between the income tax expense at the federal statutory rate and income tax expense in the consolidated statements of operations is as follows:
Year Ended December 31,
202420232022
Federal statutory rate21.0 %21.0 %21.0 %
State income tax expense, net of federal benefits2.4 3.0 1.0 
Foreign tax rate differential
0.2 0.1 — 
Nondeductible meals and entertainment0.4 0.2 0.9 
Foreign-derived intangible income deduction(3.4)(4.4)(7.0)
Valuation allowance0.8 0.7 0.4 
Research and development tax credits(10.0)(7.2)(16.5)
Tax (windfall benefits) / shortfall
(1.1)0.4 (3.0)
Foreign withholding tax 1.3 1.3 1.2 
Nondeductible compensation 1.0 1.0 1.8 
Income tax underpayment interest, net of tax benefit
0.6 1.1 0.7 
Other0.4 0.7 1.2 
Effective rate13.6 %17.9 %1.7 %
Schedule of Components of Deferred Tax Assets and Liabilities
The components of our net deferred tax assets (liabilities) are as follows (in thousands):
December 31,
20242023
Deferred tax assets, non-current
Provision for credit losses on accounts receivable$1,459 $1,500 
Depreciation292 401 
Accrued expenses6,615 6,324 
Deferred revenue2,997 2,681 
Operating lease liabilities18,149 8,107 
Stock-based compensation20,060 21,040 
Acquisition costs1,852 2,107 
Inventory reserve566 529 
Net operating losses1,610 2,600 
Tax credits4,334 3,535 
Capitalized research and development expenditures135,619 99,799 
Capped call premium
13,416 — 
Other3,430 2,873 
Total deferred tax assets, non-current prior to valuation allowance210,399 151,496 
Valuation allowance(5,012)(3,754)
Total deferred tax assets, non-current, net of valuation allowance205,387 147,742 
Deferred tax liabilities, non-current
Intangible assets and prepaid patent licenses(2,574)(3,552)
Operating lease right-of-use assets(13,199)(5,983)
Depreciation(5,953)(4,267)
Sales commissions(1,706)(1,477)
Equity investments (161)(161)
Other deferred tax liabilities
(510)(487)
Total deferred tax liabilities, non-current(24,103)(15,927)
Net deferred tax assets, non-current$181,284 $131,815 
Schedule of Unrecognized Tax Benefits Roll Forward
A reconciliation of the beginning and ending amounts of unrecognized tax benefits (without related interest expense) is as follows (in thousands):
Year Ended December 31,
202420232022
Beginning balance$9,063 $7,596 $5,541 
Additions based on tax positions of the current year1,978 1,589 1,881 
Additions based on tax positions of prior year617 204 225 
Decreases based on tax positions of prior year(2)(205)(51)
Decreases for tax positions taken in the prior year due to settlement
(2,220)— — 
Decreases due to lapse of applicable statute of limitations(312)(121)— 
Ending balance$9,124 $9,063 $7,596 
v3.25.0.1
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Schedule of Reportable Segment Operational Data The reportable segment operational data is presented in the tables below (in thousands):
Year Ended December 31, 2024
 Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$564,513 $66,685 $— $— $631,198 
Hardware and other revenue306,074 5,979 (2,769)(655)308,629 
Total revenue
870,587 72,664 (2,769)(655)939,827 
Cost of SaaS and license revenue
68,666 20,809 329 (292)89,512 
Cost of hardware and other revenue
234,414 5,414 (2,630)(561)236,637 
Total cost of revenue
303,080 26,223 (2,301)(853)326,149 
Selling and marketing expense
88,899 22,343 — — 111,242 
General and administrative expense
101,401 7,478 — — 108,879 
Research and development expense
227,559 28,319 — — 255,878 
Amortization and depreciation expense
28,107 1,024 — — 29,131 
Total operating expenses
445,966 59,164 — — 505,130 
Operating income / (loss)$121,541 $(12,723)$(468)$198 $108,548 
Assets$2,081,214 $85,468 $(128,465)$(9)$2,038,208 
Reconciliation of operating income to income before income taxes
Operating income$108,548 
Interest expense(11,426)
Interest income47,359 
Other (expense) / income, net(2,674)
Income before income taxes$141,807 
Year Ended December 31, 2023
Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$514,673 $54,527 $— $— $569,200 
Hardware and other revenue309,778 6,501 (3,201)(596)312,482 
Total revenue824,451 61,028 (3,201)(596)881,682 
Cost of SaaS and license revenue 71,639 17,852 (2,967)(626)85,898 
Cost of hardware and other revenue 237,660 5,760 (3,771)(388)239,261 
Total cost of revenue 309,299 23,612 (6,738)(1,014)325,159 
Selling and marketing expense 82,672 17,554 — — 100,226 
General and administrative expense 107,475 5,935 (480)— 112,930 
Research and development expense 220,106 25,008 — — 245,114 
Amortization and depreciation expense 30,337 1,087 — — 31,424 
Total operating expenses440,590 49,584 (480)— 489,694 
Operating income / (loss)$74,562 $(12,168)$4,017 $418 $66,829 
Assets$1,477,674 $73,621 $(111,725)$(7)$1,439,563 
Reconciliation of operating income to income before income taxes
Operating income$66,829 
Interest expense(3,429)
Interest income29,801 
Other (expense) / income, net4,624 
Income before income taxes$97,825 
Year Ended December 31, 2022
 Alarm.comOtherIntersegment Alarm.comIntersegment OtherTotal
SaaS and license revenue$478,134 $42,243 $— $— $520,377 
Hardware and other revenue317,937 9,097 (4,067)(785)322,182 
Total revenue
796,071 51,340 (4,067)(785)842,559 
Cost of SaaS and license revenue
59,725 14,172 415 (415)73,897 
Cost of hardware and other revenue
265,828 7,776 (4,419)(501)268,684 
Total cost of revenue
325,553 21,948 (4,004)(916)342,581 
Selling and marketing expense
76,927 15,821 — — 92,748 
General and administrative expense
99,081 8,087 (480)— 106,688 
Research and development expense
198,127 20,508 — — 218,635 
Amortization and depreciation expense
29,639 1,231 — — 30,870 
Total operating expenses
403,774 45,647 (480)— 448,941 
Operating income / (loss)$66,744 $(16,255)$417 $131 $51,037 
Reconciliation of operating income to income before income taxes
Operating income$51,037 
Interest expense(3,144)
Interest income8,759 
Other (expense) / income, net(59)
Income before income taxes$56,593 
v3.25.0.1
Quarterly Financial Data (unaudited) (Tables)
 12 Months Ended
Dec. 31, 2024
Quarterly Financial Information Disclosure [Abstract]  
Schedule of Unaudited Quarterly Financial Information The selected consolidated statements of operation data in amounts are presented below (in thousands, except per share data):
 Three Months Ended
Mar. 31,
2023
June 30,
2023
Sept. 30,
2023
Dec. 31,
2023
Mar. 31,
2024
June 30,
2024
Sept. 30,
2024
Dec. 31,
2024
Total revenue$209,716 $223,875 $221,854 $226,237 $223,283 $233,807 $240,497 $242,240 
Total cost of revenue76,172 86,367 81,405 81,215 76,515 81,282 84,748 83,604 
Net income14,207 15,611 19,351 31,171 23,404 32,520 36,456 30,133 
Net income attributable to common stockholders14,416 15,799 19,524 31,304 23,595 33,511 36,682 30,328 
Net income per share attributable to common stockholders
Basic$0.29 $0.32 $0.39 $0.63 $0.47 $0.67 $0.74 $0.61 
Diluted$0.28 $0.30 $0.37 $0.58 $0.44 $0.62 $0.67 $0.56 
v3.25.0.1
Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Money market accounts    
Cash and Cash Equivalents [Line Items]    
Cash equivalents $ 1,210.0 $ 679.7
v3.25.0.1
Summary of Significant Accounting Policies - Accounts Receivable and Restricted Cash (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Concentration Risk [Line Items]      
Restricted cash included in other current assets and other assets $ 8,431 $ 4,096 $ 714
Other Current Assets      
Concentration Risk [Line Items]      
Restricted cash included in other current assets and other assets 2,200 100  
Other Assets      
Concentration Risk [Line Items]      
Restricted cash included in other current assets and other assets $ 6,200 $ 4,100  
Geographic Concentration Risk | Accounts Receivable | Outside of North America      
Concentration Risk [Line Items]      
Concentration risk percentage (percent) 8.00% 7.00%  
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | Outside of North America      
Concentration Risk [Line Items]      
Concentration risk percentage (percent) 6.00% 4.00% 4.00%
v3.25.0.1
Summary of Significant Accounting Policies - Credit Losses (Details)
 12 Months Ended
Dec. 31, 2024
USD ($)
portfolio_segment
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Credit loss expense (reversal) for accounts and notes receivable $ 4,700,000 $ 1,000,000.0 $ 800,000
Number of portfolio segments, accounts receivable | portfolio_segment 2    
Number of portfolio segments, notes receivable | portfolio_segment 1    
Interest receivable $ 200,000 100,000  
Notes Receivable      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Write-offs 4,000,000 0  
Loan balance 3,139,000 7,213,000  
Loan receivable, interest income reduction 500,000 0 $ 0
Hardware Financing Receivables      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loan balance $ 0 $ 0  
v3.25.0.1
Summary of Significant Accounting Policies - Leases (Details) - USD ($)
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]    
Sublease liability $ 0 $ 0
Finance lease, liability $ 0 $ 0
v3.25.0.1
Summary of Significant Accounting Policies - Convertible Senior Notes (Details) - Senior Notes - USD ($)
$ in Millions
Dec. 31, 2024
May 31, 2024
Jan. 20, 2021
Convertible Senior Notes due 2026      
Debt Instrument [Line Items]      
Debt amount $ 500.0   $ 500.0
Interest rate     0.00%
Convertible Senior Notes due 2029      
Debt Instrument [Line Items]      
Debt amount $ 500.0 $ 500.0  
Interest rate   2.25%  
v3.25.0.1
Summary of Significant Accounting Policies - Capped Call Transactions (Details)
$ in Millions
May 31, 2024
USD ($)
Accounting Policies [Abstract]  
Capped call transaction cost $ 63.1
v3.25.0.1
Summary of Significant Accounting Policies - Redeemable Noncontrolling Interests (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Sep. 23, 2022
Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Redeemable noncontrolling interests $ 44,747 $ 36,308 $ 23,988   $ 12,888
OpenEye          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Percentage of business acquired 86.00%        
Noonlight          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Percentage of business acquired 85.00%     85.00%  
v3.25.0.1
Summary of Significant Accounting Policies - Internal-Use Software (Details) - Internal-use software
Dec. 31, 2024
Property, Plant and Equipment [Line Items]  
Estimated useful life 3 years
Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 3 years
Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 5 years
v3.25.0.1
Summary of Significant Accounting Policies - External Software (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Accounting Policies [Abstract]    
Capitalized cost $ 2.4 $ 0.9
v3.25.0.1
Summary of Significant Accounting Policies - Revenue Recognition (Details)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
USD ($)
Sep. 30, 2024
USD ($)
Jun. 30, 2024
USD ($)
Mar. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Sep. 30, 2023
USD ($)
Jun. 30, 2023
USD ($)
Mar. 31, 2023
USD ($)
Dec. 31, 2024
USD ($)
source
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Deferred Revenue Arrangement [Line Items]                        
Number of primary revenue sources | source                 3      
Service provider contract term                 1 year      
Service provider renewal term                 1 year      
Total revenue $ 242,240 $ 240,497 $ 233,807 $ 223,283 $ 226,237 $ 221,854 $ 223,875 $ 209,716 $ 939,827 $ 881,682 $ 842,559  
Percentage of revenue reserved for returns (percent)                 1.00% 1.00% 1.00%  
Period for returns (up to)                 1 year      
Deferred revenue for contract liabilities 26,559       22,885       $ 26,559 $ 22,885 $ 18,332 $ 14,837
Total cost of revenue $ 83,604 $ 84,748 $ 81,282 $ 76,515 81,215 $ 81,405 $ 86,367 $ 76,172 $ 326,149 [1] 325,159 [1] 342,581 [1]  
Commission costs amortization period 3 years               3 years      
Software license revenue                        
Deferred Revenue Arrangement [Line Items]                        
Total cost of revenue                 $ 600 600 500  
Hardware and other revenue                        
Deferred Revenue Arrangement [Line Items]                        
Total revenue                 308,629 312,482 322,182  
Deferred revenue for contract liabilities $ 4,300       $ 4,800       4,300 4,800    
Total cost of revenue [1]                 236,637 239,261 268,684  
Operating Segments | Alarm.com                        
Deferred Revenue Arrangement [Line Items]                        
Total revenue                 870,587 824,451 796,071  
Total cost of revenue                 303,080 309,299 325,553  
Operating Segments | Software license revenue | Alarm.com                        
Deferred Revenue Arrangement [Line Items]                        
Total revenue                 20,300 23,200 26,800  
Operating Segments | Hardware and other revenue | Alarm.com                        
Deferred Revenue Arrangement [Line Items]                        
Total revenue                 306,074 309,778 317,937  
Total cost of revenue                 $ 234,414 $ 237,660 $ 265,828  
Minimum                        
Deferred Revenue Arrangement [Line Items]                        
Subscriber contract term                 3 years      
Minimum | Hardware and other revenue                        
Deferred Revenue Arrangement [Line Items]                        
Deferred revenue recognition period                 12 months      
Maximum                        
Deferred Revenue Arrangement [Line Items]                        
Subscriber contract term                 5 years      
Maximum | Hardware and other revenue                        
Deferred Revenue Arrangement [Line Items]                        
Deferred revenue recognition period                 10 years      
[1] Exclusive of amortization and depreciation shown in operating expenses below.
v3.25.0.1
Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Accounts Receivable
 12 Months Ended
Dec. 31, 2024
industry
region
Industry Concentration Risk  
Concentration Risk [Line Items]  
Number of industries included in assessment | industry 1
Geographic Concentration Risk  
Concentration Risk [Line Items]  
Number of geographic regions included in assessment | region 1
v3.25.0.1
Summary of Significant Accounting Policies - Stock-Based Compensation (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 5 years    
Total stock-based compensation expense $ 41,242,000 $ 47,283,000 $ 52,654,000
Tax windfall benefit / (shortfall) from stock-based awards 1,829,000 (508,000) 2,022,000
Employee Stock | 2015 ESPP      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 200,000 $ 200,000 $ 200,000
Fair market value purchase discount (percent) 90.00%    
Maximum number of shares participant may purchase as a percentage of base compensation (not to exceed) (percent) 10.00%    
Maximum number of shares participant may purchase, fair market value (not to exceed) $ 15,000    
Purchase period 6 months    
v3.25.0.1
Summary of Significant Accounting Policies - 401(k) Defined Contribution Plan (Details) - 401(k) Defined Contribution Plan - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Defined Contribution Plan Disclosure [Line Items]      
Employer matching contribution (percent) 100.00% 100.00% 100.00%
Maximum annual contributions per employee (percent) 10.00% 10.00% 10.00%
Maximum annual contributions per employee $ 5,000 $ 5,000 $ 5,000
Compensation expense $ 7,500,000 $ 7,200,000 $ 6,400,000
v3.25.0.1
Summary of Significant Accounting Policies - Goodwill, Intangible Assets and Long-lived Assets (Details) - USD ($)
 12 Months Ended
Oct. 01, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounting Policies [Abstract]        
Goodwill impairment $ 0 $ 0 $ 0 $ 0
Impairment of long-lived assets   $ 0 $ 0 $ 0
v3.25.0.1
Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounting Policies [Abstract]      
Advertising costs $ 6.6 $ 2.9 $ 6.1
v3.25.0.1
Summary of Significant Accounting Policies - Earnings Per Share (Details) - shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Sep. 23, 2022
Restructuring Cost and Reserve [Line Items]        
Dilutive effect of shares (in shares) 8,351,256 4,806,986 5,006,521  
Convertible Senior Notes due 2026        
Restructuring Cost and Reserve [Line Items]        
Dilutive effect of shares (in shares) 3,396,950 3,396,950 3,396,950  
Convertible Senior Notes due 2029        
Restructuring Cost and Reserve [Line Items]        
Dilutive effect of shares (in shares) 3,365,132      
OpenEye        
Restructuring Cost and Reserve [Line Items]        
Percentage of business acquired 86.00%      
Noonlight        
Restructuring Cost and Reserve [Line Items]        
Percentage of business acquired 85.00%     85.00%
v3.25.0.1
Revenue from Contracts with Customers - Narrative (Details) - USD ($)
 12 Months Ended
Jul. 27, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]          
Impairment loss on contract assets   $ 0 $ 0 $ 0  
Reimbursement of previously capitalized upfront payments to customers   0 6,774,000 0  
Contract asset, unamortized balance   $ 12,088,000 $ 9,099,000 $ 13,975,000 $ 4,520,000
One customer          
Disaggregation of Revenue [Line Items]          
Proceeds from previously capitalized upfront payments $ 6,900,000        
Reimbursement of previously capitalized upfront payments to customers 6,800,000        
Contract asset, unamortized balance 0        
One customer | SaaS and license revenue          
Disaggregation of Revenue [Line Items]          
Contract asset, revenue satisfied in previous period $ 100,000        
v3.25.0.1
Revenue from Contracts with Customers - Contract Asset and Contract Liability (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Contract Assets      
Beginning of period balance $ 9,099 $ 13,975 $ 4,520
Commission costs and upfront payments to a customer capitalized in period 10,292 7,837 14,270
Reimbursement of previously capitalized upfront payments to customers 0 (6,774) 0
Amortization of contract assets (7,303) (5,939) (4,815)
End of period balance 12,088 9,099 13,975
Contract Liabilities      
Beginning of period balance 22,885 18,332 14,837
Revenue deferred and acquired in period 26,883 22,861 18,617
Revenue recognized from amounts included in contract liabilities (23,209) (18,308) (15,122)
End of period balance $ 26,559 $ 22,885 $ 18,332
v3.25.0.1
Accounts Receivable, Net - Schedule of Components of Accounts Receivable (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Receivables [Abstract]    
Accounts receivable $ 132,400 $ 136,769
Allowance for credit losses (3,870) (3,864)
Allowance for product returns (2,448) (2,279)
Accounts receivable, net $ 126,082 $ 130,626
v3.25.0.1
Accounts Receivable, Net - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Provision for credit losses on accounts receivable $ 950 $ 1,508 $ 1,156
Reserve for product returns 3,187 4,399 4,746
Hardware and other revenue      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Reserve for product returns $ 3,200 $ 4,400 $ 4,700
v3.25.0.1
Accounts Receivable, Net - Schedule of Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning of period balance $ (3,864)    
(Provision for) / recovery of expected credit losses (950) $ (1,508) $ (1,156)
End of period balance (3,870) (3,864)  
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 (956) (1,399)  
Write-offs 902 431  
End of period balance (3,777) (3,723) (2,755)
All Other Subsidiaries      
Accounts Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning of period balance (141) (80)  
(Provision for) / recovery of expected credit losses 6 (109)  
Write-offs 42 48  
End of period balance $ (93) $ (141) $ (80)
v3.25.0.1
Inventory - Schedule of Components of Inventory (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Inventory Disclosure [Abstract]    
Raw materials $ 23,881 $ 30,452
Work-in-process 595 275
Finished goods 62,959 65,413
Total inventory $ 87,435 $ 96,140
v3.25.0.1
Inventory - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Inventory Disclosure [Abstract]      
Inventory write-down $ 0 $ 1,420 $ 0
v3.25.0.1
Property and Equipment, Net - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]      
Depreciation $ 10,300,000 $ 11,200,000 $ 11,600,000
Amortization 0 0 600,000
Write-off of property and equipment $ 0 $ 0 $ 0
Furniture, fixtures and office equipment | Minimum      
Property, Plant and Equipment [Line Items]      
Estimated useful life 3 years    
Furniture, fixtures and office equipment | Maximum      
Property, Plant and Equipment [Line Items]      
Estimated useful life 5 years    
Computer software and hardware | Minimum      
Property, Plant and Equipment [Line Items]      
Estimated useful life 3 years    
Computer software and hardware | Maximum      
Property, Plant and Equipment [Line Items]      
Estimated useful life 5 years    
Internal-use software      
Property, Plant and Equipment [Line Items]      
Estimated useful life 3 years    
Internal-use software | Minimum      
Property, Plant and Equipment [Line Items]      
Estimated useful life 3 years    
Internal-use software | Maximum      
Property, Plant and Equipment [Line Items]      
Estimated useful life 5 years    
Real property | Minimum      
Property, Plant and Equipment [Line Items]      
Estimated useful life 15 years    
Real property | Maximum      
Property, Plant and Equipment [Line Items]      
Estimated useful life 39 years    
v3.25.0.1
Property and Equipment, Net - Components of Property and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 143,683 $ 125,609
Accumulated depreciation (80,478) (71,445)
Property and equipment, net 63,205 54,164
Furniture, fixtures and office equipment    
Property, Plant and Equipment [Line Items]    
Total property and equipment 10,325 9,839
Computer software and hardware    
Property, Plant and Equipment [Line Items]    
Total property and equipment 41,197 34,913
Internal-use software    
Property, Plant and Equipment [Line Items]    
Total property and equipment 8,949 8,949
Construction in progress    
Property, Plant and Equipment [Line Items]    
Total property and equipment 14,809 3,581
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total property and equipment 34,397 33,555
Real property and improvements    
Property, Plant and Equipment [Line Items]    
Total property and equipment 11,322 12,079
Land    
Property, Plant and Equipment [Line Items]    
Total property and equipment $ 22,684 $ 22,693
v3.25.0.1
Acquisitions - Narrative (Details) - USD ($)
 1 Months Ended 3 Months Ended 12 Months Ended
Apr. 21, 2023
Jan. 18, 2023
Sep. 23, 2022
Nov. 30, 2024
Mar. 31, 2023
May 31, 2022
Jun. 30, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Business Acquisition [Line Items]                    
Goodwill               $ 154,211,000 $ 154,498,000 $ 148,183,000
Noonlight                    
Business Acquisition [Line Items]                    
Ownership by noncontrolling owners     15.00%              
EBS                    
Business Acquisition [Line Items]                    
Percentage of business acquired   100.00%                
Cash paid to acquire business   $ 9,800,000                
Holdback liability from business combination   2,200,000                
Additional earn-out   2,500,000                
Contingent consideration liability from acquisition   $ 2,000,000.0                
Noonlight                    
Business Acquisition [Line Items]                    
Percentage of business acquired     85.00%         85.00%    
Cash paid to acquire business     $ 31,900,000              
Loan amount consideration           $ 1,500,000        
Holdback liability from business combination     4,910,000              
Payments for business combination holdback             $ 400,000      
Goodwill     35,095,000              
Expected tax deductible amount of goodwill     0              
Redeemable noncontrolling interest     $ 6,770,000         $ 5,200,000 6,400,000  
Noonlight | Developed technology                    
Business Acquisition [Line Items]                    
Weighted-average useful life of intangible assets acquired     7 years              
Intangible assets     $ 9,335,000              
Noonlight | Trade names                    
Business Acquisition [Line Items]                    
Weighted-average useful life of intangible assets acquired     5 years              
Intangible assets     $ 150,000              
Kapacity.io Solutions Oy                    
Business Acquisition [Line Items]                    
Payments to acquire developed technology       $ 1,300,000            
Asset acquisition, consideration transferred, holdback amount       200,000            
Transaction costs               $ 100,000    
Asset acquisition consideration       $ 1,600,000            
Weighted-average useful life of intangible assets acquired       7 years            
Vintra, Inc                    
Business Acquisition [Line Items]                    
Payments to acquire developed technology $ 5,500,000                  
Asset acquisition, consideration transferred, holdback amount 1,000,000.0                  
Transaction costs                 $ 400,000  
Asset acquisition consideration $ 7,100,000                  
Weighted-average useful life of intangible assets acquired 5 years                  
Asset acquisition, consideration transferred, deduction, loan amount         $ 300,000          
Consideration transferred, property and equipment $ 100,000                  
v3.25.0.1
Acquisitions - Schedule of Consideration and Fair Value of Assets Acquired (Details) - USD ($)
$ in Thousands
Sep. 23, 2022
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Tangible and Intangible Net Assets:        
Goodwill   $ 154,211 $ 154,498 $ 148,183
Noonlight        
Calculation of Purchase Consideration:        
Cash paid, net of working capital adjustment $ 31,805      
Outstanding principal and interest of loan provided to Noonlight 1,537      
Holdback consideration 4,910      
Total consideration 38,252      
Tangible and Intangible Net Assets:        
Cash 188      
Accounts receivable 291      
Other current and non-current assets 200      
Property and equipment 45      
Deferred tax assets 424      
Accounts payable (321)      
Accrued expenses and other current liabilities (318)      
Deferred revenue (67)      
Redeemable noncontrolling interest (6,770) $ (5,200) $ (6,400)  
Goodwill 35,095      
Total tangible and intangible net assets 38,252      
Noonlight | Developed technology        
Tangible and Intangible Net Assets:        
Intangible assets acquired 9,335      
Noonlight | Trade names        
Tangible and Intangible Net Assets:        
Intangible assets acquired $ 150      
v3.25.0.1
Goodwill and Intangible Assets, Net - Schedule of Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Goodwill [Roll Forward]    
Beginning balance $ 154,498 $ 148,183
Goodwill acquired - initial measurement   7,200
Measurement period adjustment   (1,509)
Foreign currency translation adjustment (287) 624
Ending balance 154,211 154,498
Alarm.com    
Goodwill [Roll Forward]    
Beginning balance 154,498 148,183
Goodwill acquired - initial measurement   7,200
Measurement period adjustment   (1,509)
Foreign currency translation adjustment (287) 624
Ending balance 154,211 154,498
Other    
Goodwill [Roll Forward]    
Beginning balance 0 0
Goodwill acquired - initial measurement   0
Measurement period adjustment   0
Foreign currency translation adjustment 0 0
Ending balance $ 0 $ 0
v3.25.0.1
Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($)
 12 Months Ended
Oct. 01, 2024
Jan. 18, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Goodwill [Line Items]          
Goodwill acquired - initial measurement       $ 7,200,000  
Goodwill impairment $ 0   $ 0 0 $ 0
Purchases of intangible assets (paid less than)     1,431,000 5,915,000 0
Amortization     18,600,000 19,300,000 18,400,000
Impairment of long-lived assets     0 0 0
Domain names          
Goodwill [Line Items]          
Purchases of intangible assets (paid less than)     100,000    
Alarm.com          
Goodwill [Line Items]          
Goodwill acquired - initial measurement       $ 7,200,000  
Intangible assets written off     300,000   $ 700,000
EBS          
Goodwill [Line Items]          
Percentage of business acquired   100.00%      
EBS | Alarm.com          
Goodwill [Line Items]          
Goodwill acquired - initial measurement   $ 7,200,000      
EnergyHub          
Goodwill [Line Items]          
Accumulated balance of goodwill impairments     $ 4,800,000    
v3.25.0.1
Goodwill and Intangible Assets, Net - Schedule of Net Carrying Amount of Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Finite-lived Intangible Assets [Roll Forward]    
Beginning balance $ 78,564 $ 82,458
Intangible assets acquired 1,631 14,515
Capitalized software development costs 1,798 882
Amortization (18,834) (19,291)
Ending balance 63,159 78,564
Customer Relationships    
Finite-lived Intangible Assets [Roll Forward]    
Beginning balance 39,294 47,522
Intangible assets acquired 0 2,395
Capitalized software development costs 0 0
Amortization (9,669) (10,623)
Ending balance 29,625 39,294
Developed Technology    
Finite-lived Intangible Assets [Roll Forward]    
Beginning balance 37,174 33,553
Intangible assets acquired 1,585 11,583
Capitalized software development costs 0 0
Amortization (8,216) (7,962)
Ending balance 30,543 37,174
Trade Name    
Finite-lived Intangible Assets [Roll Forward]    
Beginning balance 1,217 1,383
Intangible assets acquired 0 537
Capitalized software development costs 0 0
Amortization (717) (703)
Ending balance 500 1,217
Capitalized Software Development Costs    
Finite-lived Intangible Assets [Roll Forward]    
Beginning balance 879 0
Intangible assets acquired 0 0
Capitalized software development costs 1,798 882
Amortization (232) (3)
Ending balance 2,445 879
Other    
Finite-lived Intangible Assets [Roll Forward]    
Beginning balance 0 0
Intangible assets acquired 46 0
Capitalized software development costs 0 0
Amortization 0 0
Ending balance $ 46 $ 0
v3.25.0.1
Goodwill and Intangible Assets, Net - Schedule of Weighted Average Remaining Life and Carrying Value of Finite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount $ 206,796 $ 203,697  
Accumulated Amortization (143,637) (125,133)  
Net Carrying Value 63,159 78,564 $ 82,458
Customer Relationships      
Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount 128,280 128,280  
Accumulated Amortization (98,655) (88,986)  
Net Carrying Value 29,625 39,294 47,522
Developed Technology      
Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount 71,316 70,061  
Accumulated Amortization (40,773) (32,887)  
Net Carrying Value 30,543 37,174 33,553
Trade Name      
Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount 4,474 4,474  
Accumulated Amortization (3,974) (3,257)  
Net Carrying Value 500 1,217 1,383
Capitalized Software Development Costs      
Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount 2,680 882  
Accumulated Amortization (235) (3)  
Net Carrying Value 2,445 879 0
Other      
Finite-Lived Intangible Assets [Line Items]      
Gross Carrying Amount 46    
Accumulated Amortization 0    
Net Carrying Value $ 46 $ 0 $ 0
Weighted-Average      
Finite-Lived Intangible Assets [Line Items]      
Weighted- Average Remaining Life (in years) 4 years 7 months 6 days 5 years 4 months 24 days  
Weighted-Average | Customer Relationships      
Finite-Lived Intangible Assets [Line Items]      
Weighted- Average Remaining Life (in years) 5 years 3 months 18 days 6 years 2 months 12 days  
Weighted-Average | Developed Technology      
Finite-Lived Intangible Assets [Line Items]      
Weighted- Average Remaining Life (in years) 4 years 4 years 8 months 12 days  
Weighted-Average | Trade Name      
Finite-Lived Intangible Assets [Line Items]      
Weighted- Average Remaining Life (in years) 2 years 10 months 24 days 2 years 7 months 6 days  
Weighted-Average | Capitalized Software Development Costs      
Finite-Lived Intangible Assets [Line Items]      
Weighted- Average Remaining Life (in years) 3 years 8 months 12 days 3 years 3 months 18 days  
Weighted-Average | Other      
Finite-Lived Intangible Assets [Line Items]      
Weighted- Average Remaining Life (in years) 5 years    
v3.25.0.1
Goodwill and Intangible Assets, Net - Schedule of Future Estimated Amortization Expense (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]      
2025 $ 17,925    
2026 16,678    
2027 14,231    
2028 9,448    
2029 2,542    
2030 and thereafter 2,335    
Net Carrying Value $ 63,159 $ 78,564 $ 82,458
v3.25.0.1
Other Assets - Loan to a Distribution Partner (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]                      
Provision for / (recovery of) credit losses on notes receivable                 $ 3,996 $ 3 $ (78)
Revenue from distribution partners $ 242,240 $ 240,497 $ 233,807 $ 223,283 $ 226,237 $ 221,854 $ 223,875 $ 209,716 939,827 881,682 $ 842,559
Distribution Partner | Loan Receivables                      
Accounts, Notes, Loans and Financing Receivable [Line Items]                      
Interest rate                     12.00%
Provision for / (recovery of) credit losses on notes receivable       4,000              
Loan receivable, interest income reduction       $ 500              
Write-offs     $ 4,000                
Loan receivable, noncurrent         $ 4,500         4,500  
Revenue from distribution partners                 $ 2,600 $ 3,000 $ 2,700
v3.25.0.1
Other Assets - Loan to a Service Provider Partner (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Jul. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]                        
Total revenue $ 242,240 $ 240,497 $ 233,807 $ 223,283 $ 226,237 $ 221,854 $ 223,875 $ 209,716 $ 939,827 $ 881,682 $ 842,559  
Service Provider | Notes Receivable                        
Accounts, Notes, Loans and Financing Receivable [Line Items]                        
Notes receivable, maximum available                       $ 2,500
Interest rate                       9.00%
Loan balance $ 1,000       $ 1,000       1,000 1,000    
Total revenue                 $ 200 $ 200 $ 200  
v3.25.0.1
Other Assets - Loan to a Technology Partner (Details) - USD ($)
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Jun. 30, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]                        
Total revenue $ 242,240,000 $ 240,497,000 $ 233,807,000 $ 223,283,000 $ 226,237,000 $ 221,854,000 $ 223,875,000 $ 209,716,000 $ 939,827,000 $ 881,682,000 $ 842,559,000  
Technology Partner | Notes Receivable                        
Accounts, Notes, Loans and Financing Receivable [Line Items]                        
Loan balance $ 1,500,000       $ 1,500,000       1,500,000 1,500,000   $ 1,500,000
Interest rate                       6.50%
Total revenue                 $ 0 $ 0 $ 0  
v3.25.0.1
Other Assets - Investment in a Hardware Supplier (Details) - Hardware Supplier - USD ($)
$ in Millions
Dec. 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
v3.25.0.1
Other Assets - Investments in Technology Partners (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Dec. 31, 2024
May 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Feb. 28, 2021
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Financing Receivable, Nonaccrual [Line Items]                
Cash purchase of shares           $ 11,025 $ 1,700 $ 5,150
Technology Partner                
Financing Receivable, Nonaccrual [Line Items]                
Cash purchase of shares         $ 5,000      
Investment $ 5,700   $ 5,700     5,700 5,700  
Technology Partner | Series B-2 Preferred Stock                
Financing Receivable, Nonaccrual [Line Items]                
Shares purchased (in shares)         1,000,000      
Technology Partner, Two                
Financing Receivable, Nonaccrual [Line Items]                
Cash purchase of shares       $ 5,100        
Investment 5,100   5,100     5,100 5,100  
Technology Partner, Two | Series A Preferred Stock                
Financing Receivable, Nonaccrual [Line Items]                
Shares purchased (in shares)       4,231,717       4,231,717
Technology Partner, Three                
Financing Receivable, Nonaccrual [Line Items]                
Cash purchase of shares 1,500 $ 1,500 1,500          
Investment $ 4,500   $ 1,500     $ 4,500 $ 1,500  
v3.25.0.1
Other Assets - Schedule of Notes Receivable Credit Losses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Provision for expected credit losses $ (3,996) $ (3) $ 78
Loan Receivables      
Financing Receivable, Allowance for Credit Loss [Roll Forward]      
Beginning of period balance (5) (2)  
Provision for expected credit losses (3,996) (3)  
Write-offs 4,000 0  
End of period balance $ (1) $ (5) $ (2)
v3.25.0.1
Other Assets - Credit Quality Indicators (Details) - Loan Receivables - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Originated in fiscal year $ 500 $ 150
Originated in fiscal year before current fiscal year 146 1,500
Originated in two years before current fiscal year 1,500 0
Originated in three years before current fiscal year 0 1,039
Originated in four years before current fiscal year 993 0
Prior 0 4,524
Total 3,139 7,213
Current    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Originated in fiscal year 500 150
Originated in fiscal year before current fiscal year 146 1,500
Originated in two years before current fiscal year 1,500 0
Originated in three years before current fiscal year 0 1,039
Originated in four years before current fiscal year 993 0
Prior 0 4,524
Total 3,139 7,213
30-59 days past due    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Originated in fiscal year 0 0
Originated in fiscal year before current fiscal year 0 0
Originated in two years before current fiscal year 0 0
Originated in three years before current fiscal year 0 0
Originated in 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 in fiscal year before current fiscal year 0 0
Originated in two years before current fiscal year 0 0
Originated in three years before current fiscal year 0 0
Originated in 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 in fiscal year before current fiscal year 0 0
Originated in two years before current fiscal year 0 0
Originated in three years before current fiscal year 0 0
Originated in 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 in fiscal year before current fiscal year 0 0
Originated in two years before current fiscal year 0 0
Originated in three years before current fiscal year 0 0
Originated in four years before current fiscal year 0 0
Prior 0 0
Total $ 0 $ 0
v3.25.0.1
Other Assets - Allowance for Credit Losses- Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]      
Interest income recognized for notes receivables in nonaccrual status $ 0 $ 0 $ 0
Notes Receivable      
Financing Receivable, Allowance for Credit Loss [Line Items]      
Nonaccrual notes receivable 0 0  
Nonaccrual notes receivable without related allowance for credit loss 0 0  
Notes receivable 90 days or more past due still accruing $ 0 $ 0  
v3.25.0.1
Other Assets - Prepaid Expenses (Details) - USD ($)
$ in Millions
Dec. 31, 2024
Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Prepaid expenses $ 16.1 $ 14.6
v3.25.0.1
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market accounts $ 1,209,474 $ 679,734
Equity securities with readily determinable fair value 7,425  
Contingent consideration liability from acquisition 2,169 2,061
Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Money market accounts 1,209,474 679,734
Equity securities with readily determinable fair value 7,425  
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
Equity securities with readily determinable fair value 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
Equity securities with readily determinable fair value 0  
Contingent consideration liability from acquisition $ 2,169 $ 2,061
v3.25.0.1
Fair Value Measurements - Summary of Fair Value of Level 3 Liability (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Contingent Consideration Liability From Acquisitions      
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 108 68  
Reclassification to additional paid in capital upon modification 0 0  
End of period balance $ 2,169 2,061 $ 0
Subsidiary Long Term Incentive Plan      
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]      
Beginning of period balance   $ 0 3,351
Acquired liabilities     0
Changes in fair value included in earnings     (247)
Reclassification to additional paid in capital upon modification     (3,104)
End of period balance     $ 0
v3.25.0.1
Fair Value Measurements - Narrative (Details)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2022
USD ($)
Dec. 31, 2024
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2023
USD ($)
Jan. 18, 2023
USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Cash and cash equivalents   $ 1,220,701 $ 622,165 $ 696,983  
Other assets noncurrent   41,332   39,500  
Other current assets, net   47,374   33,031  
Unrealized loss on equity securities (less than)   $ 100      
Reclassification of subsidiary long-term incentive plan liability related to modification $ 3,100   $ 3,104    
Incremental compensation costs $ 1,200        
Weighted-Average | Expected Achievement          
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Measurement input   0.895      
Weighted-Average | Discount Rate          
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Measurement input   0.061      
Minimum | Expected Achievement          
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Measurement input   0.800      
Minimum | Discount Rate          
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Measurement input   0.060      
Maximum | Expected Achievement          
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Measurement input   0.990      
Maximum | Discount Rate          
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]          
Measurement input   0.062      
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   $ 1,200,000   675,600  
Other assets noncurrent   6,200   $ 4,100  
Other current assets, net   $ 1,900      
v3.25.0.1
Leases - Narrative (Details)
 1 Months Ended
Aug. 31, 2024
renewal_option
Leases [Abstract]  
Number of renewal options 2
Lease renewal term 5 years
v3.25.0.1
Leases - Supplemental Information Related to Leases (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]      
Operating lease cost $ 13,084 $ 11,484 $ 10,499
Cash paid for amounts included in the measurement of operating lease liabilities 12,467 13,947 12,723
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities $ 38,872 $ 5,262 $ 7,474
Weighted-average remaining lease term — operating leases 7 years 9 months 18 days 3 years  
Weighted-average discount rate — operating leases 8.20% 4.90%  
v3.25.0.1
Leases - Maturities of Leases Liabilities (Details)
Dec. 31, 2024
USD ($)
Maturities of Lease Liabilities Under Topic 842  
2025 $ 13,130,000
2026 11,820,000
2027 12,063,000
2028 11,503,000
2029 11,052,000
2030 and thereafter 43,457,000
Total lease payments 103,025,000
Less: imputed interest 29,791,000
Present value of lease liabilities 73,234,000
Legally binding minimum lease payments on leases not yet commenced 13,600,000
Amount for options to extend lease $ 0
v3.25.0.1
Liabilities - Components of Accounts Payable, Accrued Expenses, and Other Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Payables and Accruals [Abstract]    
Accounts payable $ 65,615 $ 39,038
Accrued expenses 29,443 21,559
Income taxes payable 28,045 42,501
Holdback liability from business combinations and asset acquisitions 0 7,340
Contingent consideration liability from acquisition 1,216 0
Other current liabilities 15,108 14,037
Accounts payable, accrued expenses and other current liabilities $ 139,427 $ 124,475
v3.25.0.1
Liabilities - Other Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Payables and Accruals [Abstract]    
Contingent consideration liability from acquisition $ 953 $ 2,061
Other liabilities 14,526 10,636
Other liabilities $ 15,479 $ 12,697
v3.25.0.1
Debt, Commitments and Contingencies - Convertible Senior Notes - Narrative (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended
May 31, 2024
USD ($)
day
$ / shares
shares
Jan. 20, 2021
USD ($)
day
$ / shares
Dec. 31, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
shares
Dec. 31, 2022
USD ($)
shares
Debt Instrument [Line Items]          
Proceeds from issuance of debt     $ 500,000 $ 0 $ 0
Capped call transaction cost $ 63,100        
Purchases of treasury stock     75,394 27,298 78,844
Treasury Stock          
Debt Instrument [Line Items]          
Purchases of treasury stock $ 75,000   $ 75,000 $ 27,298 $ 78,844
Repurchase of unvested shares (in shares) | shares 1,117,068   1,117,068 487,918 1,385,592
Convertible Senior Notes due 2026          
Debt Instrument [Line Items]          
Proceeds from issuance of debt   $ 484,300      
Debt issuance costs   $ 15,700      
Redemption price percentage   100.00%      
Share conversion ratio   0.0067939      
Conversion price (in dollars per share) | $ / shares   $ 147.19      
Share price (in dollars per share) | $ / shares     $ 60.80    
Convertible Senior Notes due 2026 | Redemption Period One          
Debt Instrument [Line Items]          
Redemption price percentage   100.00%      
Threshold percentage of stock price trigger   130.00%      
Threshold trading days | day   20      
Threshold consecutive trading days | day   30      
Convertible Senior Notes due 2026 | Redemption Period Two          
Debt Instrument [Line Items]          
Threshold percentage of stock price trigger   130.00%      
Threshold trading days | day   20      
Threshold consecutive trading days | day   30      
Number of business days | day   5      
Number of consecutive trading days | day   10      
Threshold percent of last reported sale price   98.00%      
Convertible Senior Notes due 2026 | Senior Notes          
Debt Instrument [Line Items]          
Debt amount   $ 500,000 $ 500,000    
Interest rate   0.00%      
Effective interest rate   0.60%      
Debt instrument, fair value     $ 473,800 $ 444,800  
2017 Facility | Line of Credit | Revolving Credit Facility          
Debt Instrument [Line Items]          
Long-term debt   $ 110,000      
Convertible Senior Notes due 2029          
Debt Instrument [Line Items]          
Proceeds from issuance of debt $ 485,200        
Debt issuance costs $ 14,800        
Redemption price percentage 100.00%        
Share conversion ratio 0.0114571        
Conversion price (in dollars per share) | $ / shares $ 87.28        
Share price (in dollars per share) | $ / shares     $ 60.80    
Convertible Senior Notes due 2029 | Redemption Period One          
Debt Instrument [Line Items]          
Redemption price percentage 100.00%        
Threshold percentage of stock price trigger 130.00%        
Threshold trading days | day 20        
Threshold consecutive trading days | day 30        
Debt instrument, amount outstanding threshold, not subject to redemption $ 75,000        
Convertible Senior Notes due 2029 | Redemption Period Two          
Debt Instrument [Line Items]          
Threshold percentage of stock price trigger 130.00%        
Threshold trading days | day 20        
Threshold consecutive trading days | day 30        
Number of business days | day 5        
Number of consecutive trading days | day 10        
Threshold percent of last reported sale price 98.00%        
Convertible Senior Notes due 2029 | Senior Notes          
Debt Instrument [Line Items]          
Debt amount $ 500,000   $ 500,000    
Interest rate 2.25%        
Effective interest rate 2.90%        
Debt instrument, fair value     $ 496,700    
v3.25.0.1
Debt, Commitments and Contingencies - Carrying Amount of Liability Component (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Convertible Senior Notes due 2026    
Debt Instrument [Line Items]    
Principal $ 500,000 $ 500,000
Unamortized debt issuance costs (3,319) (6,485)
Net carrying amount 496,681 $ 493,515
Convertible Senior Notes due 2029    
Debt Instrument [Line Items]    
Principal 500,000  
Unamortized debt issuance costs (13,204)  
Net carrying amount $ 486,796  
v3.25.0.1
Debt, Commitments and Contingencies - Summary of Interest Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Convertible Senior Notes due 2026      
Debt Instrument [Line Items]      
Amortization of debt issuance costs $ 3,166 $ 3,145 $ 3,126
Total interest expense 3,166 $ 3,145 $ 3,126
Convertible Senior Notes due 2029      
Debt Instrument [Line Items]      
Interest expense 6,593    
Amortization of debt issuance costs 1,630    
Total interest expense $ 8,223    
v3.25.0.1
Debt, Commitments and Contingencies - Capped Call - Narrative (Details)
$ / shares in Units, $ in Millions
May 31, 2024
USD ($)
$ / shares
Derivative [Line Items]  
Capped call transaction cost | $ $ 63.1
Cap price (in dollars per share) $ 134.28
Convertible Senior Notes due 2029  
Derivative [Line Items]  
Conversion price (in dollars per share) $ 87.28
v3.25.0.1
Debt, Commitments and Contingencies - Acquired Debt - EBS - Narrative (Details) - EBS - USD ($)
Dec. 31, 2023
Jan. 18, 2023
Debt Instrument [Line Items]    
Percentage of business acquired   100.00%
Outstanding debt amount   $ 2,900,000
Short-term debt $ 0  
v3.25.0.1
Debt, Commitments and Contingencies - Legal Proceedings - Narrative (Details) - Pending Litigation
 1 Months Ended 12 Months Ended
Apr. 18, 2022
proceeding
Jan. 10, 2022
patent
Jul. 28, 2021
patent
Jul. 22, 2021
patent
Jan. 31, 2021
claim
patent
Oct. 31, 2019
patent
Dec. 31, 2018
patent
EcoFactor, Inc. vs. Alarm.com Holdings, Inc.              
Loss Contingencies [Line Items]              
Number of patents allegedly infringed   5       2  
Number of reexamination proceedings | proceeding 4            
Number of reexamination proceedings, unpatentable | proceeding 2            
Causam Enterprises, Inc vs Alarm.com Holdings, Inc              
Loss Contingencies [Line Items]              
Number of patents allegedly infringed       4      
Causam Enterprises, Inc vs Alarm.com Holdings, Inc and EnergyHub, Inc              
Loss Contingencies [Line Items]              
Number of patents allegedly infringed     4        
Ubiquitous Connectivity, LP vs. Alarm.com Holdings, Inc              
Loss Contingencies [Line Items]              
Number of patents allegedly infringed         4   2
Number of claims deemed unpatentable | claim         42    
Number of claims | claim         46    
v3.25.0.1
Stockholders' Equity (Details)
 12 Months Ended
May 31, 2024
USD ($)
shares
Feb. 15, 2023
USD ($)
Dec. 03, 2020
USD ($)
Dec. 31, 2024
USD ($)
class_of_stock
shares
Dec. 31, 2023
USD ($)
shares
Dec. 31, 2022
USD ($)
shares
Jul. 01, 2015
shares
Class of Stock [Line Items]              
Number of classes of stock authorized | class_of_stock       2      
Common stock, shares authorized (in shares)       300,000,000 300,000,000   300,000,000
Preferred stock, shares authorized (in shares)       10,000,000 10,000,000   10,000,000
Common stock, shares issued (in shares)       52,756,077 51,888,838    
Common stock, shares outstanding (in shares)       49,618,346 49,868,175    
Preferred stock, shares issued (in shares)       0 0    
Preferred stock, shares outstanding (in shares)       0 0    
Common stock votes per share       1      
Stock repurchase program, authorized amount | $   $ 100,000,000.0 $ 100,000,000.0        
Period of stock repurchase   2 years 3 years        
Purchases of treasury stock | $       $ 75,394,000 $ 27,298,000 $ 78,844,000  
Payment of tax withholding related to vesting of restricted stock units | $       $ 3,401,000 $ 2,621,000 $ 0  
Treasury Stock              
Class of Stock [Line Items]              
Repurchase of unvested shares (in shares) 1,117,068     1,117,068 487,918 1,385,592  
Purchases of treasury stock | $ $ 75,000,000     $ 75,000,000 $ 27,298,000 $ 78,844,000  
May 2024 Repurchase Program              
Class of Stock [Line Items]              
Stock repurchase program, authorized amount | $ $ 100,000,000.0            
Period of stock repurchase 2 years            
Stock repurchase program, available amount | $       $ 100,000,000.0      
v3.25.0.1
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 41,242 $ 47,283 $ 52,654
Tax windfall benefit / (shortfall) from stock-based awards 1,829 (508) 2,022
Stock options      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 4,237 4,166 3,654
Restricted stock units      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 36,792 42,924 48,798
Employee stock purchase plan      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 213 193 202
Cost of hardware and other revenue      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 2 5 0
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 2,833 3,522 4,342
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 13,080 13,028 15,037
Research and development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 25,327 $ 30,728 $ 33,275
v3.25.0.1
Stock-Based Compensation - 2015 Equity Incentive Plan (Details) - shares
 1 Months Ended 12 Months Ended
Dec. 31, 2023
Nov. 30, 2022
Dec. 31, 2024
Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Common shares reserved for issuance, percentage of annual increase (percent)   5.00%    
2015 Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Common shares reserved for issuance (in shares)       4,700,000
Common shares reserved for issuance, percentage of annual increase (percent) 5.00%   5.00%  
Shares available to be issued (in shares)     11,533,781  
Common shares reserved for issuance, annual increase (in shares) 2,493,408 2,472,635    
2009 Plan        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Shares available to be issued (in shares)     0  
v3.25.0.1
Stock-Based Compensation - Stock Options (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 5 years    
Granted (in shares) 138,750 237,400 184,500
Weighted average grant date fair value for stock options (USD per share) $ 29.16 $ 23.01 $ 24.68
Fair value of stock options vested during period $ 4,200,000 $ 3,300,000 $ 3,300,000
Aggregate intrinsic value of stock options exercised during period 9,330,000 5,600,000 5,700,000
Compensation cost not yet recognized on nonvested awards 6,200,000    
Cash received from exercise of stock options 8,300,000 2,000,000.0 $ 2,500,000
2009 and 2015 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Liability from proceeds of early exercise of stock options $ 0 $ 0  
2009 and 2015 Plan | Common Stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Unvested shares of common stock outstanding (shares) 0 0  
Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dividend rate (percent) 0.00% 0.00% 0.00%
Compensation cost not yet recognized, period for recognition 2 years 4 months 24 days    
Stock options | 2009 and 2015 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 5 years    
Award expiration period (in years) 10 years    
Stock options | 2009 and 2015 Plan | Common Stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Repurchase of unvested shares (in shares) 0 0 0
v3.25.0.1
Stock-Based Compensation - Assumptions Used for Estimating Fair Value (Details) - Stock options
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Volatility, minimum (percent) 39.70% 40.90% 40.20%
Volatility, maximum (percent) 41.10% 41.90% 41.80%
Risk-free interest rate, minimum (percent) 3.70% 3.30% 2.90%
Risk-free interest rate, maximum (percent) 4.40% 4.40% 3.90%
Dividend rate (percent) 0.00% 0.00% 0.00%
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years) 5 years 6 months 5 years 4 months 24 days 5 years 2 months 12 days
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (in years) 5 years 7 months 6 days 5 years 7 months 6 days 5 years 3 months 18 days
v3.25.0.1
Stock-Based Compensation - Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Number of Options      
Beginning balance (in shares) 1,270,778    
Granted (in shares) 138,750 237,400 184,500
Exercised (in shares) (250,691)    
Forfeited (in shares) (29,577)    
Expired (in shares) (5,400)    
Ending balance (in shares) 1,123,860 1,270,778  
Weighted Average Exercise Price Per Share      
Beginning balance (USD per share) $ 45.84    
Granted (USD per share) 66.31    
Exercised (USD per share) 32.93    
Forfeited (USD per share) 72.72    
Expired (USD per share) 4.47    
Ending balance (USD per share) $ 50.74 $ 45.84  
Weighted Average Remaining Contractual Life and Aggregate Intrinsic Value      
Outstanding, weighted average remaining contractual life (in years) 5 years 9 months 18 days 5 years 10 months 24 days  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value [Roll Forward]      
Outstanding, beginning balance, aggregate intrinsic value $ 26,360    
Aggregate intrinsic value of stock options exercised during period 9,330 $ 5,600 $ 5,700
Outstanding, ending balance, aggregate intrinsic value $ 14,974 $ 26,360  
Vested and expected to vest (in shares) 1,123,860    
Vested and expected to vest, weighted average exercise (USD per share) $ 50.74    
Vested and expected to vest, weighted average remaining contractual life (in years) 5 years 9 months 18 days    
Vested and expected to vest, aggregate intrinsic value $ 14,974    
Exercisable (in shares) 634,666    
Exercisable, weighted average exercise (USD per share) $ 43.72    
Exercisable, weighted average remaining contractual life (in years) 4 years 1 month 6 days    
Exercisable, aggregate intrinsic value $ 12,546    
v3.25.0.1
Stock-Based Compensation - Restricted Stock Units (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 5 years    
Restricted stock units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Award vesting period 5 years    
RSUs without Performance Conditions      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in shares) 628,394 558,747 1,123,076
Unrecognized compensation expense $ 57.4    
Compensation cost not yet recognized, period for recognition 2 years 4 months 24 days    
Granted (USD per share) $ 65.29 $ 55.40 $ 63.76
Fair value of shares vested in period $ 37.0 $ 45.3 $ 24.3
RSUs with Performance Conditions      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Granted (in shares) 0 0 168,223
Unrecognized compensation expense $ 3.6    
Compensation cost not yet recognized, period for recognition 2 years 6 months    
Granted (USD per share) $ 0   $ 71.64
Fair value of shares vested in period $ 2.0 $ 3.2 $ 0.0
v3.25.0.1
Stock-Based Compensation - Restricted Stock Unit Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
RSUs without Performance Conditions      
Number of RSUs      
Beginning balance (in shares) 1,959,681    
Granted (in shares) 628,394 558,747 1,123,076
Vested (in shares) (601,931)    
Forfeited (in shares) (166,824)    
Ending balance (in shares) 1,819,320 1,959,681  
Weighted Average Grant Date Fair Value      
Beginning balance (USD per share) $ 63.75    
Granted (USD per share) 65.29 $ 55.40 $ 63.76
Vested (USD per share) 61.49    
Forfeited (USD per share) 64.41    
Ending balance (USD per share) $ 64.97 $ 63.75  
Aggregate Intrinsic Value (in thousands)      
Beginning balance $ 126,635    
Vested 38,466    
Ending balance $ 110,615 $ 126,635  
Vested and expected to vest (in shares) 1,819,320    
Vested and expected to vest (USD per share) $ 64.97    
Vested and expected to vest, aggregate intrinsic value $ 110,615    
RSUs with Performance Conditions      
Number of RSUs      
Beginning balance (in shares) 218,194    
Granted (in shares) 0 0 168,223
Vested (in shares) (33,395)    
Forfeited (in shares) (30,438)    
Ending balance (in shares) 154,361 218,194  
Weighted Average Grant Date Fair Value      
Beginning balance (USD per share) $ 74.86    
Granted (USD per share) 0   $ 71.64
Vested (USD per share) 60.72    
Forfeited (USD per share) 60.10    
Ending balance (USD per share) $ 80.83 $ 74.86  
Aggregate Intrinsic Value (in thousands)      
Beginning balance $ 14,100    
Vested 2,376    
Ending balance $ 9,385 $ 14,100  
Vested and expected to vest (in shares) 145,410    
Vested and expected to vest (USD per share) $ 80.42    
Vested and expected to vest, aggregate intrinsic value $ 8,841    
v3.25.0.1
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - USD ($)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total stock-based compensation expense $ 41,242,000 $ 47,283,000 $ 52,654,000
Employee stock purchase plan | Employee Stock      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares reserved for future grant (in shares) 1,866,044    
Shares reserved for grant, annual increase period (in years) 9 years    
Annual automatic increase in shares available, percentage of each class of common stock outstanding (percent) 1.00%    
Annual automatic increase in shares available (in shares) 1,500,000    
Fair market value purchase discount (percent) 90.00%    
Maximum number of shares participant may purchase, fair market value (not to exceed) $ 15,000    
Maximum number of shares participant may purchase as a percentage of base compensation (not to exceed) (percent) 10.00%    
Discount of the market value on the date of purchase (not to exceed) (percent) 10.00%    
Shares purchased by employees (in shares) 29,946 33,639 24,994
Total stock-based compensation expense $ 200,000 $ 200,000 $ 200,000
Purchase period 6 months    
v3.25.0.1
Earnings Per Share - Components of Basic and Diluted EPS (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Earnings Per Share [Abstract]                      
Net income $ 30,133 $ 36,456 $ 32,520 $ 23,404 $ 31,171 $ 19,351 $ 15,611 $ 14,207 $ 122,513 $ 80,340 $ 55,631
Net loss attributable to redeemable noncontrolling interests                 1,603 703 707
Net income attributable to common stockholders                 124,116 81,043 56,338
Add back total interest expense, net of tax, attributable to convertible senior notes                 8,573 2,367 2,352
Net income attributable to common stockholders - diluted                 $ 132,689 $ 83,410 $ 58,690
Weighted average common shares outstanding — basic (in shares)                 49,641,763 49,818,448 49,926,236
Dilutive effect of convertible senior notes, stock options and restricted stock units (in shares)                 8,351,256 4,806,986 5,006,521
Weighted average common shares outstanding — diluted (in shares)                 57,993,019 54,625,434 54,932,757
Net income attributable to common stockholders per share:                      
Basic (in dollars per share) $ 0.61 $ 0.74 $ 0.67 $ 0.47 $ 0.63 $ 0.39 $ 0.32 $ 0.29 $ 2.50 $ 1.63 $ 1.13
Diluted (in dollars per share) $ 0.56 $ 0.67 $ 0.62 $ 0.44 $ 0.58 $ 0.37 $ 0.30 $ 0.28 $ 2.29 $ 1.53 $ 1.07
v3.25.0.1
Earnings Per Share - Anti-dilutive Securities (Details) - shares
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
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) 579,678 626,976 393,042
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) 1,700 255,325 242,842
v3.25.0.1
Earnings Per Share - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Sep. 23, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Dilutive effect of shares (in shares) 8,351,256 4,806,986 5,006,521  
Interest expense and debt issuance cost $ 8,573 $ 2,367 $ 2,352  
Convertible Senior Notes due 2026        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Dilutive effect of shares (in shares) 3,396,950 3,396,950 3,396,950  
Convertible Senior Notes due 2029        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Dilutive effect of shares (in shares) 3,365,132      
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%     85.00%
v3.25.0.1
Significant Service Providers and Distributors (Details) - Service Provider Concentration Risk - Revenue from Contract with Customer Benchmark
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
10 Largest Service Providers      
Concentration Risk [Line Items]      
Concentration risk percentage (percent) 46.00% 50.00% 49.00%
Minimum | Service Provider A      
Concentration Risk [Line Items]      
Concentration risk percentage (percent) 15.00% 15.00% 15.00%
Maximum | Service Provider A      
Concentration Risk [Line Items]      
Concentration risk percentage (percent) 20.00% 20.00% 20.00%
v3.25.0.1
Income Taxes - Components of Income before Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Domestic $ 138,244 $ 97,453 $ 56,531
Foreign 3,563 372 62
Income before income taxes $ 141,807 $ 97,825 $ 56,593
v3.25.0.1
Income Taxes - Components of Income Tax Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Current      
Federal $ 40,131 $ 51,923 $ 44,591
State 10,561 11,577 10,730
Foreign 3,098 1,715 680
Total Current 53,790 65,215 56,001
Deferred      
Federal (29,307) (40,519) (45,609)
State (5,277) (6,986) (9,271)
Foreign 88 (225) (159)
Total Deferred (34,496) (47,730) (55,039)
Total $ 19,294 $ 17,485 $ 962
v3.25.0.1
Income Taxes - Income Tax Rate Reconciliation (Details)
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Income Tax Disclosure [Abstract]      
Federal statutory rate 21.00% 21.00% 21.00%
State income tax expense, net of federal benefits 2.40% 3.00% 1.00%
Foreign tax rate differential 0.20% 0.10% 0.00%
Nondeductible meals and entertainment 0.40% 0.20% 0.90%
Foreign-derived intangible income deduction (3.40%) (4.40%) (7.00%)
Valuation allowance 0.80% 0.70% 0.40%
Research and development tax credits (10.00%) (7.20%) (16.50%)
Tax (windfall benefits) / shortfall (1.10%) 0.40% (3.00%)
Foreign withholding tax 1.30% 1.30% 1.20%
Nondeductible compensation 1.00% 1.00% 1.80%
Income tax underpayment interest, net of tax benefit 0.60% 1.10% 0.70%
Other 0.40% 0.70% 1.20%
Effective rate 13.60% 17.90% 1.70%
v3.25.0.1
Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Details) - USD ($)
$ in Thousands
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Deferred tax assets, non-current      
Provision for credit losses on accounts receivable $ 1,459 $ 1,500  
Depreciation 292 401  
Accrued expenses 6,615 6,324  
Deferred revenue 2,997 2,681  
Operating lease liabilities 18,149 8,107  
Stock-based compensation 20,060 21,040  
Acquisition costs 1,852 2,107  
Inventory reserve 566 529  
Net operating losses 1,610 2,600  
Tax credits 4,334 3,535  
Capitalized research and development expenditures 135,619 99,799  
Capped call premium 13,416 0  
Other 3,430 2,873  
Total deferred tax assets, non-current prior to valuation allowance 210,399 151,496  
Valuation allowance (5,012) (3,754) $ (2,600)
Total deferred tax assets, non-current, net of valuation allowance 205,387 147,742  
Deferred tax liabilities, non-current      
Intangible assets and prepaid patent licenses (2,574) (3,552)  
Operating lease right-of-use assets (13,199) (5,983)  
Depreciation (5,953) (4,267)  
Sales commissions (1,706) (1,477)  
Equity investments (161) (161)  
Other deferred tax liabilities (510) (487)  
Total deferred tax liabilities, non-current (24,103) (15,927)  
Net deferred tax assets, non-current $ 181,284 $ 131,815  
v3.25.0.1
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Beginning balance $ 9,063 $ 7,596 $ 5,541
Additions based on tax positions of the current year 1,978 1,589 1,881
Additions based on tax positions of prior year 617 204 225
Decreases based on tax positions of prior year (2) (205) (51)
Decreases for tax positions taken in the prior year due to settlement (2,220) 0 0
Decreases due to lapse of applicable statute of limitations (312) (121) 0
Ending balance $ 9,124 $ 9,063 $ 7,596
v3.25.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Operating Loss Carryforwards [Line Items]          
Effective income tax rate     13.60% 17.90% 1.70%
Valuation allowance     $ 5,012 $ 3,754 $ 2,600
Reasonably possible decrease in unrecognized tax benefits     1,300    
Unrecognized tax benefits that would impact the effective tax rate     9,100 8,900  
Accrued interest and penalties related to unrecognized tax benefits     900 800  
Federal income taxes paid $ 600        
Income tax benefit, prior year taxes   $ 1,700      
U.S.          
Operating Loss Carryforwards [Line Items]          
Operating loss carryforwards     5,900    
Foreign Tax Authority | Canada          
Operating Loss Carryforwards [Line Items]          
Operating loss carryforwards     100    
State          
Operating Loss Carryforwards [Line Items]          
Operating loss carryforwards     4,600    
Research Tax Credit Carryforward          
Operating Loss Carryforwards [Line Items]          
Additions to unrecognized tax benefit     100 $ 1,500 $ 2,100
Research Tax Credit Carryforward | U.S.          
Operating Loss Carryforwards [Line Items]          
Tax credit carryforwards     100    
Research Tax Credit Carryforward | State          
Operating Loss Carryforwards [Line Items]          
Tax credit carryforwards     $ 5,000    
v3.25.0.1
Segment Information - Narrative (Details)
 3 Months Ended 12 Months Ended
Dec. 31, 2024
USD ($)
Sep. 30, 2024
USD ($)
Jun. 30, 2024
USD ($)
Mar. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Sep. 30, 2023
USD ($)
Jun. 30, 2023
USD ($)
Mar. 31, 2023
USD ($)
Dec. 31, 2024
USD ($)
segment
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Segment Reporting Information [Line Items]                      
Number of reportable segments | segment                 2    
Total revenue $ 242,240,000 $ 240,497,000 $ 233,807,000 $ 223,283,000 $ 226,237,000 $ 221,854,000 $ 223,875,000 $ 209,716,000 $ 939,827,000 $ 881,682,000 $ 842,559,000
Alarm.com | Operating Segments                      
Segment Reporting Information [Line Items]                      
Total revenue                 870,587,000 824,451,000 796,071,000
Additions to property and equipment                 20,100,000 8,900,000 28,400,000
Alarm.com | Software license revenue | Operating Segments                      
Segment Reporting Information [Line Items]                      
Total revenue                 20,300,000 23,200,000 26,800,000
Other | Operating Segments                      
Segment Reporting Information [Line Items]                      
Total revenue                 72,664,000 61,028,000 51,340,000
Additions to property and equipment                 100,000 200,000 300,000
Other | Software license revenue | Operating Segments                      
Segment Reporting Information [Line Items]                      
Total revenue                 $ 0 $ 0 $ 0
Revenue | Segment Concentration Risk | Alarm.com                      
Segment Reporting Information [Line Items]                      
Concentration risk percentage (percent)                 92.00% 93.00% 94.00%
v3.25.0.1
Segment Information - Schedule of Reportable Segment Operational Data (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Segment Reporting Information [Line Items]                      
Total revenue $ 242,240 $ 240,497 $ 233,807 $ 223,283 $ 226,237 $ 221,854 $ 223,875 $ 209,716 $ 939,827 $ 881,682 $ 842,559
Total cost of revenue 83,604 $ 84,748 $ 81,282 $ 76,515 81,215 $ 81,405 $ 86,367 $ 76,172 326,149 [1] 325,159 [1] 342,581 [1]
Selling and marketing expense                 111,242 100,226 92,748
General and administrative expense                 108,879 112,930 106,688
Research and development                 255,878 245,114 218,635
Amortization and depreciation                 29,131 31,424 30,870
Total operating expenses                 505,130 489,694 448,941
Operating income                 108,548 66,829 51,037
Assets 2,038,208       1,439,563       2,038,208 1,439,563  
Interest expense                 (11,426) (3,429) (3,144)
Interest income                 47,359 29,801 8,759
Other (expense) / income, net                 (2,674) 4,624 (59)
Income before income taxes                 141,807 97,825 56,593
SaaS and license revenue                      
Segment Reporting Information [Line Items]                      
Total revenue                 631,198 569,200 520,377
Total cost of revenue [1]                 89,512 85,898 73,897
Hardware and other revenue                      
Segment Reporting Information [Line Items]                      
Total revenue                 308,629 312,482 322,182
Total cost of revenue [1]                 236,637 239,261 268,684
Operating Segments | Alarm.com                      
Segment Reporting Information [Line Items]                      
Total revenue                 870,587 824,451 796,071
Total cost of revenue                 303,080 309,299 325,553
Selling and marketing expense                 88,899 82,672 76,927
General and administrative expense                 101,401 107,475 99,081
Research and development                 227,559 220,106 198,127
Amortization and depreciation                 28,107 30,337 29,639
Total operating expenses                 445,966 440,590 403,774
Operating income                 121,541 74,562 66,744
Assets 2,081,214       1,477,674       2,081,214 1,477,674  
Operating Segments | Alarm.com | SaaS and license revenue                      
Segment Reporting Information [Line Items]                      
Total revenue                 564,513 514,673 478,134
Total cost of revenue                 68,666 71,639 59,725
Operating Segments | Alarm.com | Hardware and other revenue                      
Segment Reporting Information [Line Items]                      
Total revenue                 306,074 309,778 317,937
Total cost of revenue                 234,414 237,660 265,828
Operating Segments | Other                      
Segment Reporting Information [Line Items]                      
Total revenue                 72,664 61,028 51,340
Total cost of revenue                 26,223 23,612 21,948
Selling and marketing expense                 22,343 17,554 15,821
General and administrative expense                 7,478 5,935 8,087
Research and development                 28,319 25,008 20,508
Amortization and depreciation                 1,024 1,087 1,231
Total operating expenses                 59,164 49,584 45,647
Operating income                 (12,723) (12,168) (16,255)
Assets 85,468       73,621       85,468 73,621  
Operating Segments | Other | SaaS and license revenue                      
Segment Reporting Information [Line Items]                      
Total revenue                 66,685 54,527 42,243
Total cost of revenue                 20,809 17,852 14,172
Operating Segments | Other | Hardware and other revenue                      
Segment Reporting Information [Line Items]                      
Total revenue                 5,979 6,501 9,097
Total cost of revenue                 5,414 5,760 7,776
Intersegment Eliminations | Alarm.com                      
Segment Reporting Information [Line Items]                      
Total revenue                 (2,769) (3,201) (4,067)
Total cost of revenue                 (2,301) (6,738) (4,004)
Selling and marketing expense                 0 0 0
General and administrative expense                 0 (480) (480)
Research and development                 0 0 0
Amortization and depreciation                 0 0 0
Total operating expenses                 0 (480) (480)
Operating income                 (468) 4,017 417
Assets (128,465)       (111,725)       (128,465) (111,725)  
Intersegment Eliminations | Alarm.com | SaaS and license revenue                      
Segment Reporting Information [Line Items]                      
Total revenue                 0 0 0
Total cost of revenue                 329 (2,967) 415
Intersegment Eliminations | Alarm.com | Hardware and other revenue                      
Segment Reporting Information [Line Items]                      
Total revenue                 (2,769) (3,201) (4,067)
Total cost of revenue                 (2,630) (3,771) (4,419)
Intersegment Eliminations | Other                      
Segment Reporting Information [Line Items]                      
Total revenue                 (655) (596) (785)
Total cost of revenue                 (853) (1,014) (916)
Selling and marketing expense                 0 0 0
General and administrative expense                 0 0 0
Research and development                 0 0 0
Amortization and depreciation                 0 0 0
Total operating expenses                 0 0 0
Operating income                 198 418 131
Assets $ (9)       $ (7)       (9) (7)  
Intersegment Eliminations | Other | SaaS and license revenue                      
Segment Reporting Information [Line Items]                      
Total revenue                 0 0 0
Total cost of revenue                 (292) (626) (415)
Intersegment Eliminations | Other | Hardware and other revenue                      
Segment Reporting Information [Line Items]                      
Total revenue                 (655) (596) (785)
Total cost of revenue                 $ (561) $ (388) $ (501)
[1] Exclusive of amortization and depreciation shown in operating expenses below.
v3.25.0.1
Quarterly Financial Data (unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2024
Sep. 30, 2024
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Quarterly Financial Information Disclosure [Abstract]                      
Total revenue $ 242,240 $ 240,497 $ 233,807 $ 223,283 $ 226,237 $ 221,854 $ 223,875 $ 209,716 $ 939,827 $ 881,682 $ 842,559
Total cost of revenue 83,604 84,748 81,282 76,515 81,215 81,405 86,367 76,172 326,149 [1] 325,159 [1] 342,581 [1]
Net income 30,133 36,456 32,520 23,404 31,171 19,351 15,611 14,207 $ 122,513 $ 80,340 $ 55,631
Net income attributable to common stockholders $ 30,328 $ 36,682 $ 33,511 $ 23,595 $ 31,304 $ 19,524 $ 15,799 $ 14,416      
Net income per share attributable to common stockholders                      
Basic (in dollars per share) $ 0.61 $ 0.74 $ 0.67 $ 0.47 $ 0.63 $ 0.39 $ 0.32 $ 0.29 $ 2.50 $ 1.63 $ 1.13
Diluted (in dollars per share) $ 0.56 $ 0.67 $ 0.62 $ 0.44 $ 0.58 $ 0.37 $ 0.30 $ 0.28 $ 2.29 $ 1.53 $ 1.07
[1] Exclusive of amortization and depreciation shown in operating expenses below.
v3.25.0.1
Subsequent Events (Details) - Subsequent Event - USD ($)
$ in Millions
Feb. 10, 2025
Jan. 30, 2025
CHeKT, Inc    
Subsequent Event [Line Items]    
Percentage of business acquired 81.00%  
Cash paid to acquire business $ 23.6  
Holdback liability from business combination $ 3.7  
Service Provider, Two | Notes Receivable    
Subsequent Event [Line Items]    
Loan balance   $ 21.5
Basis spread on variable rate (percent)   3.00%
Debt term, interest payments in kind   2 years
v3.25.0.1
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2024
Dec. 31, 2023
Dec. 31, 2022
Allowance for credit losses on accounts receivable      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Year $ 3,864 $ 2,835 $ 2,168
Additions Charged Against Revenue 0 0 0
Additions Charged to Other Accounts 950 1,508 1,156
Deductions (944) (479) (489)
Balance at End of Year 3,870 3,864 2,835
Allowance for product returns      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Year 2,279 1,551 1,181
Additions Charged Against Revenue 3,187 4,399 4,746
Additions Charged to Other Accounts 0 0 0
Deductions (3,018) (3,671) (4,376)
Balance at End of Year 2,448 2,279 1,551
Allowance for credit losses on notes receivable      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Year 5 2 80
Additions Charged Against Revenue 0 0 0
Additions Charged to Other Accounts 3,996 3 (78)
Deductions (4,000) 0 0
Balance at End of Year 1 5 2
Deferred tax valuation allowance      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at Beginning of Year 3,754 2,591 2,209
Additions Charged Against Revenue 0 0 0
Additions Charged to Other Accounts 2,642 2,204 1,337
Deductions (1,384) (1,041) (955)
Balance at End of Year $ 5,012 $ 3,754 $ 2,591