TYSONS, Va.–(BUSINESS WIRE)–Alarm.com Holdings, Inc. (Nasdaq: ALRM), the leading platform for the intelligently connected property, today announced that Vivint Inc. has notified the company that it will stop paying license fees to Alarm.com under the Patent Cross License Agreement between the companies. Vivint has paid the required licensing fees to Alarm.com since the agreement was executed in November 2013.
Alarm.com disputes Vivint’s refusal of payment, has filed for arbitration per the agreement, and is actively evaluating additional legal remedies.
Beginning with the fourth quarter of 2022, Alarm.com believes that quarterly SaaS and license revenue and total revenue will be impacted by approximately $6 million, or 2.8% of total revenue in the fourth quarter of 2022. Alarm.com also believes that quarterly earnings and cashflow will be impacted by the aforementioned $6 million, plus additional legal fees.
Alarm.com is also releasing preliminary third quarter 2022 financial results.
- Third quarter SaaS and license revenue is expected to be between $132.8 million and $133 million, compared to the company’s guidance of $130.9 million to $131.1 million.
- Third quarter hardware revenue is expected to be between $82.0 million and $82.5 million.
- Third quarter total revenue is expected to be between $215 million and $215.5 million.
The foregoing expected results are preliminary and are subject to change based on the completion of the company’s quarter-end review process. These preliminary financial results include calculations or figures that have been prepared internally by management and have not been reviewed by the company’s independent registered public accounting firm.
Alarm.com will discuss these developments and report final 2022 third quarter financial results after the market close on Tuesday, November 8, 2022. Management will host a conference call and webcast at 4:30 p.m. ET that same day.
Please click here to pre-register for the conference call and obtain your dial in number and individual passcode.
You can also listen to the call via webcast on Alarm.com’s investor relations website. A recorded version will be available under the same link following the conclusion of the conference call.
About Alarm.com Holdings, Inc.
Alarm.com is the leading platform for the intelligently connected property. Millions of consumers and businesses depend on Alarm.com’s technology to manage and control their property from anywhere. Our platform integrates with a growing variety of Internet of Things (IoT) devices through our apps and interfaces. Our security, video, access control, intelligent automation, energy management, and wellness solutions are available through our network of thousands of professional service providers in North America and around the globe. Alarm.com’s common stock is traded on Nasdaq under the ticker symbol ALRM. For more information, please visit www.alarm.com.
