Alarm.com (ALRM) Q4 Earnings: What To Expect

Smart property technology provider Alarm.com (NASDAQ:ALRM) will be reporting earnings this Thursday after market hours. Here’s what investors should know.

Alarm.com beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $256.4 million, up 6.6% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance exceeding analysts’ expectations.

This quarter, analysts are expecting Alarm.com’s revenue to grow 3.6% year on year to $250.8 million, slowing from the 7.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.64 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Alarm.com has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.4% on average.

Looking at Alarm.com’s peers in the software-as-a-service segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Manhattan Associates delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 2.2%, and Fastly reported revenues up 22.8%, topping estimates by 6.9%. Manhattan Associates traded down 5.1% following the results while Fastly was up 72.3%.

The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the software-as-a-service stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 13.6% on average over the last month. Alarm.com is down 7.8% during the same time and is heading into earnings with an average analyst price target of $66.33 (compared to the current share price of $45.41).

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