Segment Information

9 Months Ended

Sep. 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 nine months ended September 30, 2020, as compared to 94% and 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 September 30, 2020
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	92,834	$	7,292	$	—	$	—	$	100,126
Hardware and other revenue	57,726		2,545		(554)		(992)		58,725
Total revenue	150,560		9,837		(554)		(992)		158,851
Operating income / (loss)	18,810		(889)		189		(54)		18,056
	Three Months Ended September 30, 2019
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	79,954	$	4,970	$	—	$	—	$	84,924
Hardware and other revenue	41,016		5,484		(1,287)		(2,257)		42,956
Total revenue	120,970		10,454		(1,287)		(2,257)		127,880
Operating income / (loss)	12,772		(561)		62		(78)		12,195
	Nine Months Ended September 30, 2020
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	269,168	$	18,612	$	—	$	—	$	287,780
Hardware and other revenue	159,800		13,030		(2,118)		(6,065)		164,647
Total revenue	428,968		31,642		(2,118)		(6,065)		452,427
Operating income / (loss)	45,427		(2,370)		246		(386)		42,917
	Nine Months Ended September 30, 2019
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	233,459	$	13,854	$	—	$	—	$	247,313
Hardware and other revenue	107,884		15,810		(3,364)		(5,768)		114,562
Total revenue	341,343		29,664		(3,364)		(5,768)		361,875
Operating income / (loss)	37,182		(1,782)		71		(10)		35,461
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
Assets as of September 30, 2020	$	729,845	$	24,527	$	(56,356)	$	29	$	698,045
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 $9.5 million and $29.0 million for the three and nine months ended September 30, 2020, respectively, as compared to $10.8 million and $32.8 million for the same periods in the prior year. There was no software license revenue recorded for the Other segment during the three and nine months ended September 30, 2020 and 2019.

Depreciation and amortization expense was $6.7 million and $19.8 million for the Alarm.com segment for the three and nine months ended September 30, 2020, respectively, as compared to $5.5 million and $15.8 million for the same periods in the prior year. Depreciation and amortization expense was $0.1 million and $0.2 million for the Other segment for the three and nine months ended September 30, 2020 and less than $0.1 million for each of the three and nine months ended September 30, 2019.

Additions to property and equipment were $4.7 million and $11.2 million for the Alarm.com segment for the three and nine months ended September 30, 2020, respectively, as compared to $4.7 million and $8.5 million for the same periods in the prior year. Additions to property and equipment were $0.1 million and $1.0 million for the Other segment for the three and nine months ended September 30, 2020, respectively, as compared to $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 nine months ended September 30, 2020 and 2019. Substantially all of our long-lived assets were in North America as of September 30, 2020 and December 31, 2019.