Segment Information

6 Months Ended

Jun. 30, 2020

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 94% of our revenue for each of the three and six months ended June 30, 2020 as compared to 93% for the same periods in the prior year. 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):

	Three Months Ended June 30, 2020
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	88,922	$	6,782	$	—	$	—	$	95,704
Hardware and other revenue	44,547		4,926		(703)		(2,837)		45,933
Total revenue	133,469		11,708		(703)		(2,837)		141,637
Operating income / (loss)	15,800		(609)		16		(213)		14,994
	Three Months Ended June 30, 2019
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	78,104	$	4,230	$	—	$	—	$	82,334
Hardware and other revenue	36,521		5,914		(1,078)		(2,031)		39,326
Total revenue	114,625		10,144		(1,078)		(2,031)		121,660
Operating income / (loss)	14,754		(737)		44		(16)		14,045
	Six Months Ended June 30, 2020
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	176,334	$	11,320	$	—	$	—	$	187,654
Hardware and other revenue	102,075		10,484		(1,564)		(5,073)		105,922
Total revenue	278,409		21,804		(1,564)		(5,073)		293,576
Operating income / (loss)	26,618		(1,482)		57		(332)		24,861
	Six Months Ended June 30, 2019
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	153,506	$	8,883	$	—	$	—	$	162,389
Hardware and other revenue	66,868		10,325		(2,077)		(3,510)		71,606
Total revenue	220,374		19,208		(2,077)		(3,510)		233,995
Operating income / (loss)	24,410		(1,222)		9		69		23,266
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
Assets as of June 30, 2020	$	692,689	$	22,677	$	(52,736)	$	15	$	662,645
Assets as of December 31, 2019	589,952		17,844		(49,997)		—		557,799

Our SaaS and license revenue for the Alarm.com segment included software license revenue of $9.8 million and $19.5 million for the three and six months ended June 30, 2020, respectively, as compared to $11.0 million and $22.0 million for the same periods in the prior year. There was no software license revenue recorded for the Other segment during the three and six months ended June 30, 2020 and 2019.

Depreciation and amortization expense was $6.7 million and $13.1 million for the Alarm.com segment for the three and six months ended June 30, 2020, respectively, as compared to $5.1 million and $10.4 million for the same periods in the prior year. Depreciation and amortization expense was less than $0.1 million for the Other segment for each of the three and six months ended June 30, 2020 and 2019. Additions to property and equipment were $3.9 million and $6.5 million for the Alarm.com

segment for the three and six months ended June 30, 2020, respectively, as compared to $1.5 million and $3.8 million for the same periods in the prior year. Additions to property and equipment were $0.1 million and $0.9 million for the Other segment for the three and six months ended June 30, 2020, respectively, as compared to less than $0.1 million for the same periods in the prior year.

We derived substantially all of our revenue from North America for the three and six months ended June 30, 2020 and 2019. Substantially all of our long-lived assets were in North America as of June 30, 2020 and December 31, 2019.