Alarm.com Holdings Inc (ALRM) 2024 Q3 法說會逐字稿

Good day. And thank you for standing by. Welcome to the Alarm.com third-quarter 2024 earnings conference call. (Operator Instructions) Please be advised that this conference is being recorded.

再會。感謝您的支持。歡迎參加 Alarm.com 2024 年第三季財報電話會議。（操作員說明）請注意，本次會議正在錄製中。

I would like to hand the conference over to your speaker today, Matthew Zartman, Vice President of Investor Relations. Please go ahead.

我想將今天的會議交給您的發言人，投資者關係副總裁馬修‧札特曼 (Matthew Zartman)。請繼續。

Thanks, Kevin. Good afternoon, everyone and welcome to Alarm.com's third quarter 2024 earnings conference call. Please note the call is being recorded. Joining us today are Steve Trundle, our CEO; and Steve Valenzuela, our CFO.

謝謝，凱文。大家下午好，歡迎參加 Alarm.com 2024 年第三季財報電話會議。請注意，通話正在錄音。今天加入我們的是我們的執行長 Steve Trundle；以及我們的財務長 Steve Valenzuela。

During today's call, we will be making forward-looking statements, which are predictions, projections, estimates, or other statements about future events. These statements based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. We refer you to the risk factors discussed on our quarterly report on form 10-Q and our form 8-K, which will be filed shortly with the SEC along with the associated press release.

在今天的電話會議中，我們將做出前瞻性陳述，即對未來事件的預測、預測、估計或其他陳述。這些陳述是基於目前的預期和假設，這些預期和假設存在風險和不確定性，可能導致實際結果與我們目前的預期有重大差異。我們請您參閱我們的 10-Q 表格季度報告和 8-K 表格季度報告中討論的風險因素，這些報告將很快與相關新聞稿一起提交給 SEC。

The call is subject to these risk factors, and we encourage you to review them. Alarm.com assumes no obligation to update forward-looking statements or other information, which speak as of their respective dates. In addition, several non-GAAP financial measures will be discussed on the call. A reconciliation of GAAP to non-GAAP measures can be found in today's press release on our Investor Relations website.

該電話會議受到這些風險因素的影響，我們鼓勵您對其進行審查。Alarm.com 不承擔更新前瞻性陳述或其他資訊的義務，這些陳述或其他資訊截至其各自日期。此外，電話會議也將討論多項非公認會計準則財務指標。公認會計準則與非公認會計準則衡量標準的調節可以在我們投資者關係網站上今天的新聞稿中找到。

I'll turn the call over to Steve Trundle, Steve.

我會把電話轉給史蒂夫·特朗德爾，史蒂夫。

Thank you, Matt. Good afternoon and welcome to everyone. We are pleased to report financial results for the third quarter that exceeded our expectations. SaaS and license revenue in the third quarter grew to $159.3 million and adjusted even though was $50 million.

謝謝你，馬特。下午好，歡迎大家。我們很高興地報告第三季的財務表現超出了我們的預期。第三季 SaaS 和授權收入成長至 1.593 億美元，儘管調整後為 5,000 萬美元。

Our performance in the quarter resulted from continued momentum across our growth initiatives. Sales of our video and access control products outperformed and contributed to hardware revenue that was above our expectations. We also saw our revenue retention rate increase to 95%, which is above our historical range.

我們本季的業績得益於我們成長計畫的持續成長動能。我們的視訊和門禁產品的銷售表現優於我們，並為硬體收入帶來了超出我們預期的貢獻。我們的收入保留率也提高至 95%，高於我們的歷史範圍。

We believe two things are driving the revenue retention metric. First, our service providers have been increasingly putting in fully featured and more robust systems that provide value to the consumer or business owner every day.

我們認為有兩件事正在推動收入保留指標。首先，我們的服務供應商越來越投入功能齊全且更強大的系統，每天為消費者或企業主提供價值。

And second, the slower US housing market has reduced subscriber moves, which can be a leading cause of [account turn]. I want to thank our service provider, partners, and our employees for their contributions to our results. On today's call, I want to update you on a few new capabilities we introduced to our commercial and residential video offerings before handing it over to Steve Valenzuela to cover our financials in more detail.

其次，美國房地產市場放緩導致用戶流動減少，這可能是導致用戶流失的主要原因。[帳戶轉]。我要感謝我們的服務提供者、合作夥伴和員工為我們的成果所做的貢獻。在今天的電話會議上，我想向您介紹我們在商業和住宅視訊產品中引入的一些新功能，然後將其交給 Steve Valenzuela 更詳細地介紹我們的財務狀況。

In October, we hosted our annual customer conference, which we call Partner Summit here in Washington DC. The event again attracted a sold out audience that represented a nice cross section of our service provider partner community. We were able to feature several recently released products in our presentations during the Summit. One of the products we demonstrated is a consumer facing capability. We call AI-Deterrence or AID. It can identify and engage a potential trespasser on a property and deter them from causing further problems.

十月，我們在華盛頓特區舉辦了年度客戶會議，我們稱之為合作夥伴高峰會。這次活動再次吸引了滿座的觀眾，他們代表了我們服務提供者合作夥伴社群的一個很好的橫斷面。我們在高峰會期間的演講中展示了幾款最近發布的產品。我們展示的產品之一是面向消費者的功能。我們稱之為人工智慧威懾或援助。它可以識別並吸引潛在的侵入者，並阻止他們造成進一步的問題。

AID is integrated into our remote video monitoring solution and is essentially an AI bot that replaces some of the workload that a live operator monitoring the video camera would otherwise need to perform. It can discern clothing and location and deliver verbal warnings that are dynamically adapted to the intruder and the scene.

AID 整合到我們的遠端視訊監控解決方案中，本質上是一個人工智慧機器人，它取代了監視攝影機的現場操作員原本需要執行的一些工作負載。它可以識別衣服和位置，並根據入侵者和場景動態發出口頭警告。

Our goal with AID is to make our remote video monitoring solution as cost effective as possible for our service providers. By augmenting human intervention and focusing humans on only the most critical events. We believe our partners can adopt our solution more aggressively and introduce it to a larger segment of the commercial and residential markets.

我們與 AID 的目標是使我們的遠端視訊監控解決方案對我們的服務提供者盡可能具有成本效益。透過加強人為幹預並讓人們只關注最關鍵的事件。我們相信我們的合作夥伴可以更積極地採用我們的解決方案，並將其引入更大的商業和住宅市場。

Our advancements in applying AI to video streams in both residential and commercial settings benefit from our scale. In August alone, our AI enabled video cameras identified and sent 1.2 billion events for further classification and verification by our cloud. Of these 1.2 billion events of interest, 700 million were verified by the cloud AI engine triggering additional rules, which can include archival or push notifications to alert subscribers of important activity.

我們在住宅和商業環境中將人工智慧應用於視訊串流方面的進步得益於我們的規模。僅在 8 月份，我們啟用 AI 的攝影機就識別並發送了 12 億個事件，以供我們的雲端進一步分類和驗證。在這 12 億個感興趣的事件中，有 7 億個由雲端 AI 引擎驗證，觸發了額外的規則，其中可以包括存檔或推播通知，以提醒訂閱者重要活動。

In September. Our OpenEye business also launched a new line of cloud cameras designed for flexible, streamlined enterprise video surveillance installations. The new cameras are entirely self contained with onboard storage and AI processing. They connect directly to the cloud and are provided as a subscription based solution that leverages the full suite of management analytics, alerting, and reporting tools offered by the OpenEye platform. Cloud cameras provide a cost effective way for our partners to land and expand in new commercial accounts.

九月。我們的 OpenEye 業務還推出了新的雲端攝影機系列，專為靈活、簡化的企業視訊監控安裝而設計。新相機完全獨立，具有板載儲存和人工智慧處理功能。它們直接連接到雲端，並作為訂閱制的解決方案提供，利用 OpenEye 平台提供的全套管理分析、警報和報告工具。雲端攝影機為我們的合作夥伴提供了一種經濟有效的方式來登陸和擴展新的商業帳戶。

We're pleased with OpenEye's continued momentum and growth. OpenEye is on the cusp of surpassing 1 million active channels or video cameras on its software platform. We expect continued strong contributions to Alarm.com's growth as OpenEye leads the transformation of the enterprise security video management market from standalone on premise devices to cloud enabled AI powered video solutions.

我們對 OpenEye 的持續發展勢頭和成長感到滿意。OpenEye 其軟體平台上的活躍頻道或攝影機數量即將突破 100 萬個。我們預計，隨著 OpenEye 引領企業安全視訊管理市場從獨立的本地設備向雲端支援的人工智慧視訊解決方案的轉變，我們預計將繼續為 Alarm.com 的成長做出強勁貢獻。

As most of , we typically conclude our third quarter with Steve Valenzuela providing an initial look at the following fiscal year. It's early and we will continue to refine our plans and forecasts before providing our more calibrated and official 2025 guidance on our fourth quarter call early next year.

與大多數人一樣，我們通常會在第三季結束時由史蒂夫·瓦倫蘇埃拉 (Steve Valenzuela) 對下一財年進行初步展望。現在還為時過早，我們將繼續完善我們的計劃和預測，然後在明年初的第四季度電話會議上提供更經過校準的官方 2025 年指引。

But I want to give a little context for how we're looking at 2025 at this point. As we think about 2025 revenue, a meaningful variable is the rate at which ADT rolls out, the ADT Google software. This forecasting dependency makes visibility into 2025 a bit more opaque than in prior years.

但我想提供一些背景資訊來說明我們目前如何看待 2025 年。當我們考慮 2025 年的收入時，一個有意義的變數是 ADT 推出的速度，也就是 ADT Google 軟體。這種預測依賴性使得 2025 年的前景比前幾年更不透明。

Our first look numbers assume that ADT's corporate residential account production will fully transition to the ADT Google software and impact SAFs revenue growth for the entirety of 2025.

我們的初步數據假設 ADT 的企業住宅帳戶生產將完全過渡到 ADT Google 軟體，並影響 SAF 整個 2025 年的收入成長。

Fortunately, we have built a diverse organic growth engine that will allow us to continue growing our business despite this long anticipated headwind. We expect our EnergyHub business, our OpenEye business, our international business, and our Alarm.com commercial business including our Access Control Solution to contribute to our consolidated growth rate at roughly the same levels in 2025 as in 2024.

幸運的是，我們已經建立了一個多元化的有機成長引擎，這將使我們能夠在面臨長期預期的逆風的情況下繼續發展我們的業務。我們預計 EnergyHub 業務、OpenEye 業務、國際業務和 Alarm.com 商業業務（包括存取控制解決方案）將為我們的綜合成長率做出貢獻，其水準在 2025 年與 2024 年大致相同。

Meanwhile, we have moved EBITDA margins up some in the second half of 2024 and we expect current levels to hold as we move through 2025.

同時，我們在 2024 年下半年將 EBITDA 利潤率提高了一些，並且預計在 2025 年之前將保持目前的水平。

In summary, I'm pleased with our Q3 results and the continued growth we see across the business. I want to thank our service provider partners and our team for their hard work and our investors for their continued trust in our business.

總之，我對我們第三季的業績以及整個業務的持續成長感到滿意。我要感謝我們的服務提供者合作夥伴和我們的團隊的辛勤工作，以及我們的投資者對我們業務的持續信任。

And with that, let me turn things over to Steve Valenzuela to review our financials. Steve?

接下來，讓我將事情交給 Steve Valenzuela 來審查我們的財務狀況。史蒂夫？

Thanks, Steve. I'll begin with a review of our third quarter 2024 financial results, then provide our guidance for Q4 and full year 2024, and conclude with their initial thoughts on 2025 before opening the call for questions.

謝謝，史蒂夫。我將首先回顧我們 2024 年第三季的財務業績，然後提供我們對 2024 年第四季和全年的指導，並在開始提問之前總結他們對 2025 年的初步想法。

Third quarter SaaS and license revenue of $159.3 million grew 9.8% from the same quarter last year. Our SaaS and license revenue, visibility remains high with a revenue renewal rate of 95% in the third quarter above our historical trend and higher than our long term target range of 92% to 94%.

第三季 SaaS 和授權收入為 1.593 億美元，較去年同期成長 9.8%。我們的 SaaS 和授權收入、可見度仍然很高，第三季的收入續訂率為 95%，高於我們的歷史趨勢，也高於我們 92% 至 94% 的長期目標範圍。

Part of another revenue in the third quarter was $81.2 million of 5.7% from Q3, 2023 mainly due to increased sales of access control devices and video cameras.

第三季另一部分營收為 8,120 萬美元，較 2023 年第三季成長 5.7%，主要是因為門禁設備和攝影機的銷量增加。

Total revenue of $240.5 million for the third quarter grew 8.4% year over year. SaaS and license gross margin for the third quarter was 85.5% up slightly from 84.9% in the year ago quarter.

第三季總營收為 2.405 億美元，年增 8.4%。第三季 SaaS 和授權毛利率為 85.5%，略高於去年同期的 84.9%。

Hardware gross margin was 24.1% for the third quarter, up from 22.6% in Q3 2023. Mainly due to favorable product mix. Total gross margin was 64.8% for the third quarter up from 63.3% in the prior year quarter.

第三季硬體毛利率為 24.1%，高於 2023 年第三季的 22.6%。主要得益於有利的產品組合。第三季總毛利率為 64.8%，高於去年同期的 63.3%。

Turning to operating expenses. R&D expenses in the third quarter were $62.2 million compared to $61 million in Q3 2023. We ended the third quarter with 1,164 employees in R&D up from 1,116 employees in Q3 2023. Total headcount increased to 2055 employees for the third quarter compared to 1,986 employees in the year ago quarter.

轉向營運費用。第三季的研發費用為 6,220 萬美元，而 2023 年第三季的研發費用為 6,100 萬美元。截至第三季末，我們的研發員工人數從 2023 年第三季的 1,116 人增加到 1,164 人。第三季員工總數增至 2055 名，去年同期為 1,986 名。

Sales and marketing expenses in the third quarter were $27 million or 11.2% of total revenue compared to $23.9 million or 10.8% of revenue in the same quarter last year. Mainly due to a modest increase in marketing program investment. Our G&A expenses in the third quarter were $25.7 million down from $31.5 million in the year ago quarter. Mainly due to lower legal related costs.

第三季銷售和行銷費用為 2,700 萬美元，佔總收入的 11.2%，而去年同期為 2,390 萬美元，佔總收入的 10.8%。主要是由於行銷計劃投入小幅增加。第三季的一般管理費用為 2,570 萬美元，低於去年同期的 3,150 萬美元。主要是由於法律相關成本較低。

G&A expense in the third quarter includes negligible, non-ordinary course litigation expense compared to $5.9 million in the year ago quarter. Non-ordinary course litigation expenses are part of our adjusted measures and are excluded from our measurement of our non-GAAP financial performance.

第三季的一般管理費用包括可以忽略不計的非常規訴訟費用，而去年同期為 590 萬美元。非普通訴訟費用是我們調整後衡量標準的一部分，不包括在我們對非公認會計準則財務表現的衡量中。

In the third quarter, GAAP net income was $36.7 million up 88% from GAAP net income of $19.5 million in the year ago quarter, non-GAAP adjusted E done the third quarter was $50 million up 20.6% from $41.4 million in Q3 2023. Non-GAAP adjusted net income increased to $35.2 million or $0.62 per diluted share in the third quarter up from $30.6 million or $0.56 per share for the third quarter of 2023.

第三季度，GAAP 淨利為3,670 萬美元，比上年同期的GAAP 淨利1,950 萬美元成長88%，非GAAP 調整後的第三季淨利為5,000 萬美元，比2023 年第三季的4140萬美元成長20.6%。第三季非公認會計原則調整後淨利從 2023 年第三季的 3,060 萬美元或每股 0.56 美元增至 3,520 萬美元或稀釋每股 0.62 美元。

Turning to our balance sheet, we ended the third quarter with $1.17 billion of cash and cash equivalents up from $697 million on December 31, 2023. With much of the increase due to the convertible offering we closed in May this year and to a lesser extent, our positive cash flow. Our non-GAAP free cash flow for the three and nine months ended September 2024 of $74.5 million and $142.3 million respectively, increased from $60.9 million and $90.7 million for the same periods in 2023 mainly due to higher profitability levels and improvements in working capital with declines in inventory and a reduction in accounts receivable days sales outstanding to 45 days.

轉向我們的資產負債表，第三季末我們的現金和現金等價物為 11.7 億美元，高於 2023 年 12 月 31 日的 6.97 億美元。成長的大部分是由於我們在今年五月完成的可轉換發行，以及在較小程度上，我們的正現金流。截至2024 年9 月的三個月和九個月，我們的非公認會計原則自由現金流分別為7,450 萬美元和1.423 億美元，較2023 年同期的6,090 萬美元和9,070 萬美元有所增加，主要是由於獲利水準提高以及營運資本下降庫存減少，應收帳款銷售天數減少至 45 天。

Turning to our financial outlook. For the fourth quarter of 2024, we expect SaaS and license revenue of $163.2 million to $163.4 million for the full year of 2024. We are raising our expectations for SaaS and license revenue to $628.7 million to $628.9 million up from our prior guidance of $626.8 million to $627.2 million.

轉向我們的財務前景。對於 2024 年第四季度，我們預計 2024 年全年 SaaS 和授權收入為 1.632 億美元至 1.634 億美元。我們將 SaaS 和授權收入的預期從先前的 6.268 億美元至 6.272 億美元提高至 6.287 億美元至 6.289 億美元。

We are now projecting total revenue for 2024 of $933.7 million to $935.9 million up from our prior guidance of $920.8 million to $931.2 million which includes estimated hardware and other revenue of $305 million to $307 million.

我們目前預計 2024 年的總收入為 9.337 億美元至 9.359 億美元，高於我們先前指引的 9.208 億美元至 9.312 億美元，其中包括估計的硬體和其他收入 3.05 億至 3.07 億美元。

We are raising our estimate for non-GAAP adjusted EBITA for 2024 to $174 million to $176 million up from our prior guidance of $165 million to $167 million. Adjusted non-GAAP net income for 2024 is projected to be $125.5 million to 126.5 million or $2.25 to $2.27 per dilute share. Up from our prior guidance of $119.5 million to $120.5 million or $2.62 dollars and $0.07 per diluted share.

我們將 2024 年非 GAAP 調整後 EBITA 的預期從先前的 1.65 億美元至 1.67 億美元提高至 1.74 億美元至 1.76 億美元。2024 年調整後的非 GAAP 淨利潤預計為 1.255 億至 1.265 億美元，即稀釋每股收益 2.25 至 2.27 美元。高於我們先前指引的 1.195 億美元至 1.205 億美元，即稀釋後每股 2.62 美元和 0.07 美元。

EPS is based on an estimate of $57.9 million weighted average diluted shares outstanding. We currently project our non-GAAP tax rate for 2024 to remain at 21% under current tax rules. We expect full year 2024 stock based compensation expense of $42 million to $43 million.

每股盈餘是基於 5,790 萬美元的加權平均稀釋已發行股票的估計。目前，根據現行稅收規則，我們預計 2024 年的非 GAAP 稅率將維持在 21%。我們預計 2024 年全年股票薪酬費用為 4,200 萬美元至 4,300 萬美元。

Finally, I will provide some early thoughts in 2025, noting that these are preliminary. We currently estimate our SaaS and license revenue for 2025 to be between $668 million to $671 million. Total revenue for 2025 could range between $975 million to $980 million. As Steve noted we are modeling the ADT ramps up the ADT Google rollout.

最後，我將提供一些 2025 年的早期想法，並指出這些都是初步的。目前，我們預計 2025 年 SaaS 和授權收入將在 6.68 億美元至 6.71 億美元之間。2025 年的總收入可能在 9.75 億美元至 9.8 億美元之間。正如 Steve 所指出的，我們正在對 ADT 進行建模，以加速 ADT Google 的推出。

We currently project our non-GAAP adjusted EBITA for 2025 to be in the range of $188 million to $192 million. We will provide our annual guidance for 2025, when we report our fourth quarter, 2024 financial results early next year.

我們目前預計 2025 年非 GAAP 調整後 EBITA 將介於 1.88 億美元至 1.92 億美元之間。我們將在明年初報告 2024 年第四季財務業績時提供 2025 年年度指引。

In summary, we are focused on executing on our business plan and investing in our long term strategy while continuing to deliver profitable growth.

總而言之，我們專注於執行我們的業務計劃並投資於我們的長期策略，同時繼續實現獲利成長。

And with that operator, please open the call for Q&A.

請與該接線生一起撥打電話進行問答。

(Operator Instructions)

（操作員說明）

Adam Tindle, Raymond James.

亞當·廷德爾，雷蒙德·詹姆斯。

Bear with me, I'm just crunching the numbers as fast as I can here, Steve, but I wanted to ask on the staff guidance for fiscal '25. Understand there's a lot of variables here and congrats on a strong Q3 that you're coming off of.

請耐心聽我說，史蒂夫，我只是在盡可能快地處理數字，但我想詢問 25 財年的員工指導。請理解這裡存在著許多變數，祝賀您在第三季取得了強勁的表現。

If I'm doing the math right here, I think you're going to finish this year at about 10.5% SaaS growth for 2024. And the initial look for 2025 I think it's closer to 6.5%. If you could maybe just walk through some of the building blocks on the delta between those two, I think ADT in particular. I think a lot of us had thought about somewhere in the neighborhood of 1.5% to 2% headwind related to that. But I wonder if -- now that you have a little bit more visibility, you've got some clarity on that. So just some of the bridges from the strong finish in 2024. And the initial 2025 outlook would be helpful.

如果我在這裡算一下，我認為今年 2024 年 SaaS 的成長率將達到 10.5% 左右。我認為 2025 年的初步預測接近 6.5%。如果您可以瀏覽一下這兩者之間三角洲上的一些構建塊，我認為 ADT 尤其如此。我想我們很多人都曾考慮過與此相關的 1.5% 到 2% 左右的逆風。但我想知道，既然您有了更多的了解，您是否對此有了一些清晰的認識。以上只是 2024 年強勢完成的一些橋樑。最初的 2025 年展望將會有所幫助。

Hey, Adam, this is Steve Trundle speaking. Yeah, keep in mind it's -- we're not yet calling it it guidance. We're going to do our full guidance after the fourth quarter, but in the initial look numbers, you're doing the math correct. And there's really a couple of things there to point out first is, as we said, in the past, we're anticipating about a 200 basis point headwind to growth on the ADT Google transition. So we expect that to really start next year and that's what we've modeled.

嘿，亞當，我是史蒂夫·特朗德爾。是的，請記住，我們還沒有將其稱為指導。我們將在第四季後提供全面的指導，但從最初的數據來看，你的數學計算是正確的。首先確實有幾件事需要指出，正如我們所說，過去我們預計 ADT 谷歌轉型的成長將面臨 200 個基點的阻力。所以我們預計明年就會真正開始，這就是我們所建模的。

The second one is that if you remember this year, we got about -- we got a meaningful bump when we closed out some litigation. We had essentially no license revenue coming from IP licenses in 2023 and then we closed out litigation. We had a pretty meaningful bump off of that resolution this year. That IP license revenue is straight lined into the early 2030s. So we're not getting a bump there again this year and that by itself is another 200 basis points in that. And in the math. So if you add those two up reconciles with the 10.5% that we're showing right now.

第二個是，如果你還記得今年，當我們結束了一些訴訟時，我們得到了有意義的突破。到 2023 年，我們基本上沒有來自智慧財產權授權的授權收入，然後我們結束了訴訟。今年我們對該決議的落實非常有意義。IP 授權收入將直接持續到 2030 年代初。因此，今年我們不會再出現上漲，而這本身就意味著又上漲了 200 個基點。在數學上。因此，如果將這兩項相加，就可以與我們現在顯示的 10.5% 一致。

And maybe just a follow up. You mentioned, I think EBITDA margins, you expect current levels to hold, one quick clarification and also a question on that. The clarification would be, I think you did about 21% margin this quarter. The guidance, I think implies 19%. So when you say current levels, I'm assuming it would be off the 19% of guidance, not the 21% you just did, but just clarifying that number one.

也許只是後續行動。你提到，我認為 EBITDA 利潤率，你預計目前的水平將保持不變，對此進行快速澄清並提出一個問題。需要澄清的是，我認為你們本季的利潤率約為 21%。我認為該指導意味著 19%。因此，當你說當前水準時，我假設它會偏離指導值的 19%，而不是你剛才所做的 21%，而只是澄清第一名。

And then secondly, Steve Trundle as you think about, holding those very, very healthy EBITDA margins, maybe you can speak about -- how you thought about the internal balance between growth and profitability on one hand. We could say, you've got a lot of room to potentially invest even more on that line. So just wonder how you thought about potentially balancing maybe investing a little bit more to bump up the growth versus holding EBITDA margins at current levels. Thanks.

其次，史蒂夫·特朗德爾（Steve Trundle），正如你所想，保持著非常非常健康的EBITDA 利潤率，也許你可以談談——一方面你如何看待增長和盈利能力之間的內部平衡。我們可以說，您有很大的空間可以在這條線上進行更多投資。因此，想知道您如何考慮潛在地平衡可能增加一點投資以提高成長與將 EBITDA 利潤率保持在當前水平。謝謝。

Yeah, good question again. So yes, the number we're guiding on in the initial look, is the 19%. And I think what I said is we're going to hold things there. It might be a little above that if you do the exact math couple 20 basis points or so above the -- and that, and that's up from where we've been the last couple of years. So that's a meaningful transition for us. But the plan at the moment is we're constantly scrutinizing the way that we allocate capital, what things makes sense, what things have nice return characteristics. Through time, those things evolve, some businesses have grown nicely and are now reaching a scale where we see them actually, as we look into the future beginning to actually contribute, shift a bit more frompure investment mode -- to a mode where again, they're more mature, contributing cash back to the parent.

是的，又是一個好問題。所以，是的，我們在初步設計中指導的數字是 19%。我認為我所說的是我們將把東西留在那裡。如果你進行精確的數學計算，可能會比這個高出 20 個基點左右，而且這比我們過去幾年的水平還要高。所以這對我們來說是一個有意義的轉變。但目前的計劃是，我們不斷審查我們分配資本的方式，哪些事情有意義，哪些事情具有良好的回報特徵。隨著時間的推移，這些事情不斷發展，一些企業發展得很好，現在已經達到了我們實際看到的規模，當我們展望未來時，開始做出實際貢獻，從純粹的投資模式轉變為一種模式，再次，他們更成熟，將現金回饋給父母。

So we talked for a while about our various growth, businesses or growth initiatives. Specifically, we reference EnergyHub, we reference the commercial business and we reference the international business and each of those now bit larger than it's been in the past beginning to contribute more. So that left us comfortable that with their increased scale, we could shift a bit more of the cash production capacity of the company into the EBITDA the line and we expect that to be the case go forward.

因此，我們討論了我們的各種成長、業務或成長計劃。具體來說，我們提到了EnergyHub，我們提到了商業業務，我們提到了國際業務，現在每個業務都比過去規模更大，開始做出更多貢獻。因此，這讓我們感到放心，隨著規模的擴大，我們可以將公司更多的現金生產能力轉移到 EBITDA 中，我們預計未來也會如此。

Mason Marian, Jefferies.

梅森瑪麗安，杰弗里斯。

So your NRR is really strong at 95%. Can you talk about some of the drivers there? So you alluded to the lower term? But are you also seeing better cross selling with within your base?

所以你的 NRR 非常高，達到 95%。您能談談那裡的一些司機嗎？所以你提到了較低的術語？但您是否也看到了在您的基礎內更好的交叉銷售？

Yeah. I think it's a comp -- it's Steve Valenzuela. It's a combination of fewer moves and [churn] is really driven a lot by moves. But also we think that the video is very compelling with the analytics. And I think we're starting to see the benefit of that. We came out with video a number of years ago, analytics a couple of years ago as well. And we think that that's really enabling the users to really interact with the system every single day. And so we think that's driving up the usage and driving up the retention quite nicely.

是的。我認為這是一個替補——他是史蒂夫·巴倫蘇埃拉。這是較少的動作的組合，而[客戶流失]實際上很大程度上是由動作驅動的。但我們也認為該影片的分析非常引人注目。我認為我們開始看到這樣做的好處。幾年前我們推出了視頻，幾年前我們也推出了分析。我們認為這確實使用戶每天都能真正與系統互動。因此，我們認為這很好地提高了使用率和保留率。

And you could almost think of that. At times that is a -- what you would call a cross sell, we sometimes refer to it as an upsell. So if we have the same subscriber that moves from an account without video to one with video, obviously, that creates a benefit and that would be a cross sell or if they already have a video subscription and then they opt into a more advanced video analytics package that also would help us on that revenue retention metric. So there's a little bit of all of that going on. It probably is true that the reduction in subscriber moves is the main driver. But, as Steve just said, the account characteristics are also looking more positive.

你幾乎可以想到這一點。有時，這就是所謂的交叉銷售，我們有時稱之為追加銷售。因此，如果我們有相同的訂閱者從沒有視頻的帳戶轉移到有視頻的帳戶，顯然，這會產生好處，這將是交叉銷售，或者如果他們已經訂閱了視頻，然後選擇更高級的視頻分析一攬子計劃也將幫助我們實現收入保留指標。所以這一切都在發生。用戶移動量的減少可能確實是主要驅動力。但是，正如史蒂夫剛才所說，帳戶特徵看起來也更加積極。

And then I believe your EBS integration, I think you're largely complete with that now. Can you talk us through that? What is early feedback then? Are you seeing benefits from that acquisition?

然後我相信您的 EBS 集成，我想您現在基本上已經完成了。你能跟我們談談嗎？那什麼是早期回饋呢？您看到這次收購帶來的好處嗎？

Yeah, good memory. We're right on the cusp of beginning to see the rollout of the technology and the capabilities that we went after when we did the EBS acquisition is a refresher. EBS is a business based in Europe that has a history of being able to support a wide range of various intrusion panels. We wanted to be able to attack a different part of the market than just the new installs that alarm.Com typically get.

是的，記性很好。我們正處於開始看到該技術推出的風口浪尖，而我們在收購 EBS 時所追求的功能令人耳目一新。EBS 是一家總部位於歐洲的企業，長期以來一直能夠支援各種入侵面板。我們希望能夠攻擊市場的不同部分，而不僅僅是alarm.Com 通常獲得的新安裝量。

So we're beginning that roll out now. The EBS low cost communication product works with the Alarm.com back in at this moment. And our belief at the moment is that we'll probably be successful in adding another 40,000 to 50,000 subscribers in the rest of world markets next year. Using the low cost communication technology from EBS and those would be subscribers we otherwise wouldn't get. So it's beginning to contribute to the growth story on the international side of the business.

所以我們現在就開始推出。EBS 低成本通訊產品此時重新與 Alarm.com 合作。我們目前的信念是，明年我們可能會在世界其他市場成功增加 40,000 至 50,000 名訂戶。使用 EBS 的低成本通訊技術，我們將無法獲得這些訂閱者。因此，它開始為國際業務的成長做出貢獻。

Adam Hotchkiss, Goldman Sachs.

亞當·霍奇基斯，高盛。

Just curious on how you're viewing pricing opportunities here particularly around some of the cost augmentation, that some of these AI initiatives are potentially providing for your customer base. How do you balance the ability to take price by allowing customers to manage costs more effectively versus this just being a bit of a customer success tool to increase retention?

只是好奇您如何看待這裡的定價機會，特別是在一些成本增加方面，其中一些人工智慧計劃可能會為您的客戶群提供。您如何平衡透過讓客戶更有效地管理成本來獲取價格的能力與僅僅作為提高保留率的客戶成功工具的關係？

Yeah, good question. So yeah, AI provides some ability for cost augmentation and I spoke a bit about that in my prepared remarks. If we're using what we call AI-Deterrence or an AI-Bot to replace some of the previously expensive human monitoring activity that would be required to offer that same service. Then we're helping our partners, our service provider partners with their cost to serve and that does correctly give us some ability to price that capability in a way that's beneficial to us.

是的，好問題。所以，是的，人工智慧提供了一些增加成本的能力，我在準備好的發言中談到了這一點。如果我們使用所謂的人工智慧威懾或人工智慧機器人來取代以前提供相同服務所需的一些昂貴的人工監控活動。然後，我們正在幫助我們的合作夥伴、我們的服務提供者合作夥伴降低服務成本，這確實使我們有能力以對我們有利的方式對該功能進行定價。

So we work with our partners. We try to figure out what's the right pricing that works for them. We're careful not to price things at a level that we corner ourselves in a niche market andwe, we prefer to be broad and we prefer to be broadly applicable. And that's really probably their primary focus with what we're doing with AI. And that necessitates keeping the costing at a level that our partners can afford to bring it to a broad swath of the the market.

因此，我們與合作夥伴合作。我們試圖找出適合他們的正確定價。我們很小心，不要將產品定價在一個讓我們陷入利基市場的水平上，我們更喜歡廣泛，我們更喜歡廣泛適用。這確實可能是他們對人工智慧所做的主要關注點。這就需要將成本保持在我們的合作夥伴所能承受的水平，以便將其推向廣泛的市場。

Otherwise, with pricing, it's normal course. We look at pricing and, and there is pricing increases that are part of the plan. But you're correct, the AI piece is particularly interesting to think about right now.

否則，定價是正常的。我們會考慮定價，定價上漲是計劃的一部分。但你是對的，人工智慧部分現在值得思考。

And then could you just refresh us on the top of funnel opportunity on the commercial side, I guess in your view, where is the rest of the market behind there? And then how does OpenEye and some of these other investments on the technology side? You're making open up more conversion opportunities for you over time.

然後您能否讓我們了解一下商業方面漏斗機會的頂部，我想在您看來，後面的市場其餘部分在哪裡？那麼 OpenEye 和其他一些技術方面的投資如何呢？隨著時間的推移，您將為自己帶來更多的轉化機會。

At the top of funnel opportunity, I'm trying to -- But what Adam, what do you mean by that? When you say, what are we seeing in the top of funnel opportunity?

在漏斗機會的頂部，我正在努力——但是亞當，你這是什麼意思？當你說，我們在漏斗頂部看到了什麼機會？

Yeah, more just in terms of commercial prospects and being able to convert those commercial prospects into customers, what's driving or, I guess how are you viewing the demand for security products on the commercial side and your ability to convert this? Yeah.

是的，更多的是就商業前景以及能夠將這些商業前景轉化為客戶而言，是什麼推動了這一點，或者我想您如何看待商業方面對安全產品的需求以及您將其轉化為客戶的能力？是的。

The demand to us looks fairly constant. Maybe picking up a tad in the -- if we're trying to read the tea leaves of the fourth quarter, there was increased demand, particularly on the access control side, we had a meaningful beat on the hardware number. So I said fourth quarter, I mean, third quarter had a meaningful beat on the hardware number. And I think Steve indicated some of that was driven by access control hardware. So that's a good indicator.

我們的需求看起來相當穩定。如果我們試圖了解第四季度的情況，可能會有所增加，尤其是在存取控制方面，我們在硬體數量上取得了有意義的突破。所以我說第四季度，我的意思是，第三季度在硬體數字上取得了有意義的進展。我認為史蒂夫表示其中一些是由存取控制硬體驅動的。所以這是一個很好的指標。

Often times those solutions are sold and pull through video. We also saw pretty good behavior on the video side. So I feel like -- we feel like the market's pretty healthy on the commercial side right now. We attack it a couple of different ways through integrators on the very high enterprise side of the market through our regular service provider partners in the mid market. And then we do run some demand generation activity there as well on the commercial side and everything I'm hearing and seeing is that it's set to better than maybe it was in the first half of the year.

通常這些解決方案是透過視訊來銷售和拉動的。我們在影片方面也看到了相當好的表現。所以我覺得──我們覺得現在商業方面的市場相當健康。我們透過高端企業市場的整合商以及中端市場的常規服務供應商合作夥伴以幾種不同的方式進行攻擊。然後，我們確實在商業方面也開展了一些需求生成活動，我所聽到和看到的一切都表明，情況可能會比上半年更好。

(Operator Instructions) Matt Flynn, William Blair.

（操作員說明）馬特·弗林，威廉·布萊爾。

Matt Flynn on for Steven Sheldon. Thank you for taking my questions. Starting with one on hardware, given the strong performance there this quarter curious on what you think it would take to see hardware revenue returned to growth in 2025. As I think the early look, expectations imply more flat growth in '25.

馬特·弗林替補史蒂文·謝爾頓。感謝您回答我的問題。從硬體開始，考慮到本季的強勁表現，您對如何才能看到硬體收入在 2025 年恢復成長感到好奇。正如我所認為的，從早期的角度來看，預期意味著 25 年的成長將更加穩定。

Yeah, I think at this moment, we're sticking with our initial look, estimates on hardware revenue. I think that if we saw unexpected strength on the commercial side where we saw, I talked about the headwind, a couple of headwinds, but one being the ADT Google rollout. If we saw that dampen, then obviously that might result in more hardware sales as well. But I'd say the biggest one that would be nice to see but not -- we're not, I think the model we've run and the one we present with their forecast is to the best of our knowledge, the right model, but we could see upside if we saw in particular more take off on the commercial side of the business.

是的，我認為目前我們仍堅持最初的看法，即硬體收入的估計。我認為，如果我們在商業方面看到了意想不到的力量，我談到了逆風，幾個逆風，但其中一個是 ADT Google 的推出。如果我們看到這種情況減弱，那麼顯然這也可能會導致更多的硬體銷售。但我想說的是，最大的一個很高興看到，但不是——我們不是，我認為我們運行的模型以及我們提供的預測是據我們所知，正確的模型，但如果我們看到該業務的商業方面有更多的起飛，我們就可以看到好處。

And then had one on R&D. Just thinking about priorities in the R&D department over the coming year. Are there any capabilities you're focused on building out or is it more about enhancing the existing product catalog?

然後還有一項關於研發的工作。只是考慮研發部門來年的優先事項。您是否專注於建立任何功能，或者更多的是增強現有的產品目錄？

No, we're pretty focused on I would say building out new capabilities particularly in the video and the analytics space. That would mean new form factors, different cameras. We've got -- we just had our partner summit and we had the opportunity to preview a couple of different form factors on video cameras. Some technology that we're some battery powered video camera technology that we're excited about. We previewed the EBS stuff with our international partners and we're pleased to get that out.

不，我們非常專注於建立新功能，特別是在影片和分析領域。這意味著新的外形尺寸、不同的相機。我們剛剛舉行了合作夥伴高峰會，我們有機會預覽攝影機上的幾種不同的外形尺寸。我們對一些電池供電的攝影機技術感到興奮。我們與國際合作夥伴一起預覽了 EBS 的內容，我們很高興能夠將其發布。

All of these are contributing and focused on the markets that we're already driving in. So we don't envision next year. Really introducing something that takes us into a different market. We're going to stay focused on the commercial, the residential, and the international markets with most of the R&D effort that we're deploying right now.

所有這些都有助於並專注於我們已經開拓的市場。所以我們不展望明年。真正引入一些東西，將我們帶入一個不同的市場。我們將繼續專注於商業、住宅和國際市場，目前我們正在部署大部分研發工作。

Darren Aftahi, ROTH Capital Partners.

達倫‧阿夫塔希 (Darren Aftahi)，羅仕資本合夥人。

Two if I may. I think it may have been the beginning of this year. Steve T but you talked about 18% on the margins if I recall as being a steady state, I guess. Why the pivot now?

如果可以的話，兩個。我想這可能是今年年初的事。Steve T，但我猜，如果我記得是一個穩定狀態的話，你談到了 18% 的邊緣。為什麼現在轉向？

The second question, you talked about some headwinds, toss growth for '25 I guess. Where are there areas where things could go right? Beyond maybe commercial which you talked about, which could counter balance those headwinds. Thanks.

第二個問題，你談到了一些逆風，我猜是25年的成長。哪些領域可以順利進行？除了你提到的商業之外，這可以抵消這些不利因素。謝謝。

Yeah. Good memory. You guys always have a good memory that makes my life harder. I did talk about the 18% level at the beginning of the year. As we -- we've seen some of the growth initiatives reach a more impressive level of scale. We got comfortable or we are comfortable at this point that even the margins will be more in the 19% plus range coming into next year. And and we're comfortable saying that we don't envision going backwards off of that. So that's just an update.

是的。好記性。你們總是有很好的記憶力，這讓我的生活變得更加艱難。我年初確實談到了18%的水平。我們已經看到一些成長計劃達到了令人印象深刻的規模。我們感到滿意，或者說我們現在感到滿意，即使明年的利潤率也會在 19% 以上的範圍內。我們可以很輕鬆地說，我們不打算就此倒退。所以這只是一個更新。

And as far as the where could we get extra -- increased SaaS growth contribution. I would say that, so it's going to be, can we land a new logo someplace either domestically or internationally and increase the size of the pipeline and get that done in the first part of the year. Could be that something in Corp dev results in some additional growth. It could be that the -- that we see increased acceleration in the international business that we're not currently anticipating.

至於我們可以從哪裡獲得額外的——增加的 SaaS 成長貢獻。我想說的是，我們可以在國內或國際上的某個地方使用新標誌，並增加管道的規模，並在今年上半年完成。公司開發中的某些東西可能會帶來一些額外的成長。可能是——我們看到國際業務加速成長，這是我們目前沒有預料到的。

The challenge right now though is we're looking at five quarters. So when we provide an initial look and we don't like to lean into too many things that are ethereal and not right in front of us. And I guess I would say we're relatively pleased that ona larger base, we're able to essentially see the same growth contribution coming next year as we're able to get this year, even with some of these headwinds.

但現在的挑戰是我們正在關註五個季度。因此，當我們提供初步的外觀時，我們不喜歡依賴太多虛無縹緲的東西，而不是在我們面前。我想我會說，我們相對高興的是，在更大的基礎上，我們基本上能夠看到明年與今年相同的成長貢獻，即使存在一些不利因素。

Jack Vander Aarde, Maxim Group.

傑克·范德·阿爾德，Maxim 集團。

Looking at your 2025 initial fast outlook maybe for Steve trundle. For the international side of the business. Do you have plans to grow the number of service providers you currently have in the international markets? Is there an assumption baked in there? And then also are the existing partners you do have internationally? Are they, are they growing? Are they assumed to be flat? Just curious to get if we can dissect that a bit further your 2025 outlook?

看看你對 2025 年最初的快速展望，也許是史蒂夫·特朗德爾 (Steve trundle) 的。對於國際業務。您是否計劃增加目前在國際市場上的服務提供者數量？裡面有一個假設嗎？那麼你們現有的國際合作夥伴也是如此嗎？他們，他們在成長嗎？它們被認為是平坦的嗎？只是想知道我們是否可以進一步剖析您對 2025 年的展望？

Sure. Hey, Jack. Yeah, I think we'll continue. So we're super fortunate to have a great set of anchor tenants and the international service provider partner framework that we're going to market with right now. So there, there really aren't a lot of names or brands that one could have at the largest, at the enterprise side of the business that we don't already have. That said we're continuing to work to add a few and then we want to build out the base of smaller service providers in many of the markets. There's still some markets where we're not particularly active yet and we're working on that because there will be some additional of -- there will be some new names. We're adding partners still on the international side at a faster clip than we are, domestically where we're more mature.

當然。嘿，傑克。是的，我想我們會繼續。因此，我們非常幸運，擁有大量的主力租戶和國際服務提供者合作夥伴框架，我們現在將在市場上使用它們。因此，在企業方面，我們確實沒有太多可以擁有的名稱或品牌。也就是說，我們正在繼續努力增加一些服務提供者，然後我們希望在許多市場上建立小型服務提供者的基礎。還有一些市場我們還不是特別活躍，我們正在努力解決這個問題，因為還會有一些新的名字。我們在國際方面增加合作夥伴的速度比我們在國內更成熟的速度更快。

Once we add someone usually takes -- at least a year, but a couple of years, often times to reorient their business around Alarm.com and change the way they go to market. So there is some latency in the system after we add a partner, but we are still, and partners. I'm trying to remember the second piece of your question.

一旦我們增加某人，通常需要至少一年，但通常是幾年的時間來圍繞 Alarm.com 重新定位他們的業務並改變他們進入市場的方式。因此，在我們新增合作夥伴後，系統中存在一些延遲，但我們仍然是合作夥伴。我正在努力記住你問題的第二部分。

I was wondering if you had plans to that baked in new country expansion as into that 2025 outlook as well as just, do you assume you're adding more partners internationally in general? I think you've covered most of that.

我想知道您是否有計劃在 2025 年的前景中進行新的國家擴張，以及您是否認為您總體上會在國際上增加更多合作夥伴？我想你已經涵蓋了大部分內容。

So, in our '25 outlook, we're not assuming we're signing new logos at this point. When we do modeling, we model off things that are real. We may add new logos that would create some upside. And we may add some new markets that we're not currently servicing. Just keep in mind though, there is some latency between those ads and between the point that you actually see the result of that flow into our P&L.

因此，在我們 25 年的展望中，我們並不認為我們此時會簽署新標誌。當我們進行建模時，我們會模擬真實的事物。我們可能會添加新的徽標，從而創造一些好處。我們可能會增加一些目前尚未提供服務的新市場。但請記住，這些廣告之間以及您實際看到流入損益表的結果之間存在一些延遲。

And then maybe just a quick housekeeping for Steve Valenzuela. Well, can you just reiterate what the actual 2025 SaaS outlook range was again? I think I missed the actual [queing] of that range.

然後也許只是史蒂夫·巴倫蘇埃拉的快速內務管理。那麼，您能否再次重申 2025 年 SaaS 的實際前景範圍是多少？我想我錯過了該範圍的實際[排隊]。

Sure. So the range for 2025 is $668 million to $671 million.

當然。因此，2025 年的範圍是 6.68 億美元至 6.71 億美元。

And I'm not showing any further questions at this time. So ladies and gentlemen, this does conclude today's presentation. You may now disconnect and have a wonderful day.

目前我不會提出任何進一步的問題。女士們、先生們，今天的演講到此結束。您現在可以斷開連接並度過美好的一天。