Segment Information

6 Months Ended

Jun. 30, 2024

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 93% of our revenue, net of intersegment eliminations, for each of the three and six months ended June 30, 2024, as compared to 94% 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, 2024
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	140,854	$	15,073	$	—	$	—	$	155,927
Hardware and other revenue	77,465		1,463		(860)		(188)		77,880
Total revenue	218,319		16,536		(860)		(188)		233,807
Operating income / (loss)	30,690		(4,851)		(89)		24		25,774
	Three Months Ended June 30, 2023
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	127,754	$	12,678	$	—	$	—	$	140,432
Hardware and other revenue	82,633		1,860		(881)		(169)		83,443
Total revenue	210,387		14,538		(881)		(169)		223,875
Operating income / (loss)	19,901		(3,878)		41		95		16,159
	Six Months Ended June 30, 2024
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	278,713	$	27,558	$	—	$	—	$	306,271
Hardware and other revenue	149,827		2,862		(1,545)		(325)		150,819
Total revenue	428,540		30,420		(1,545)		(325)		457,090
Operating income / (loss)	54,261		(9,593)		(222)		53		44,499
	Six Months Ended June 30, 2023
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	253,406	$	22,420	$	—	$	—	$	275,826
Hardware and other revenue	156,128		3,579		(1,658)		(284)		157,765
Total revenue	409,534		25,999		(1,658)		(284)		433,591
Operating income / (loss)	33,831		(9,068)		46		169		24,978
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
Assets as of June 30, 2024	$	1,907,486	$	55,017	$	(107,239)	$	(17)	$	1,855,247
Assets as of December 31, 2023	1,477,674		73,621		(111,725)		(7)		1,439,563

Our SaaS and license revenue for the Alarm.com segment included software license revenue of $5.2 million and $10.4 million for the three and six months ended June 30, 2024, respectively, as compared to $5.9 million and $12.1 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, 2024 and 2023.

Amortization and depreciation expense was $6.8 million and $13.9 million for the Alarm.com segment for the three and six months ended June 30, 2024, respectively, as compared to $7.6 million and $15.0 million for the same periods in the prior year. Amortization and depreciation expense was $0.3 million and $0.5 million for the Other segment for the three and six months ended June 30, 2024, respectively, as compared to $0.3 million and $0.6 million for the same periods in the prior year. Additions to property and equipment were $1.9 million and $5.8 million for the Alarm.com segment for the three and six months ended

June 30, 2024, respectively, as compared to $2.8 million and $5.8 million the same periods in the prior year. Additions to property and equipment were less than $0.1 million and $0.1 million for the Other segment for the three and six months ended June 30, 2024, respectively, as compared to $0.1 million for the same periods in the prior year.

We derived substantially all revenue from North America for the three and six months ended June 30, 2024 and 2023. Substantially all of our long-lived assets were in North America as of June 30, 2024 and December 31, 2023.