What To Expect From Alarm.com's (ALRM) Q1 Earnings

Home security and automation software provider Alarm.com (NASDAQ:ALRM) will be announcing earnings results tomorrow afternoon. Here's what to expect.

Alarm.com met analysts' revenue expectations last quarter, reporting revenues of $226.2 million, up 8.7% year on year. It was a decent quarter for the company, with management forecasting robust growth.

Is Alarm.com a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Alarm.com's revenue to grow 4.7% year on year to $219.7 million, improving from the 2.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.49 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Alarm.com has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.2% on average.

Looking at Alarm.com's peers in the software as a service segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Bentley delivered year-on-year revenue growth of 7.4%, meeting analysts' expectations, and Manhattan Associates reported revenues up 15.2%, topping estimates by 4.6%. Manhattan Associates traded down 10.6% following the results.

Read our full analysis of Bentley's results here and Manhattan Associates's results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the software as a service stocks have fared somewhat better, they have not been spared, with share prices down 2.6% on average over the last month. Alarm.com's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $80.6 (compared to the current share price of $70.22).

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