Alarm.com Holdings, Inc.

Good day and thank you for standing by. Welcome to the Alarm.com Q3 2023 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Matt Zartman, Vice President of Investor Relations. Please go ahead.

Thanks, Kevin. Good afternoon, everyone, and welcome to Alarm.com's third quarter 2023 earnings conference call. Please know that this call is being recorded. Joining us today from Alarm.com are Steve Trundle, our CEO, Dan Kersner, our president of our platforms business, and Steve Valenzuela, our CFO. During today's call, we will be making forward-looking statements, which are predictions, projections, estimates, or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. We refer you to the risk factors discussed in our quarterly report on Form 10Q and our Form 8K, which will be filed shortly after this call with the SEC, along with the associated press release. The call is subject to these risk factors, and we encourage you to review them. Alarm.com assumes no obligation to update forward-looking statements or information, which speaks as of their respective dates. In addition, several non-GAAP financial measures will be discussed on the call. A reconciliation of the GAAP to the non-GAAP measures can be found in today's press release on our Investor Relations website. I'll now turn the call over to Steve Trundle. Steve?

Thank you, Matt. Good afternoon and welcome to everyone. We're pleased to report another quarter of solid results. Our SAS and license revenue in the third quarter was $145 million, up 8.9% over the same period last year. Our adjusted EBITDA in the third quarter was $41.4 million. I want to thank our service provider partners and the alarm.com team for their continued strong performance. During the quarter, we meaningfully outperformed our SAS target despite some softness and difficult to predict hardware revenue. The diversity of our business is worth highlighting as our growth initiatives continue to make substantial contributions to our SAS results. As many of you know, we typically conclude our third quarter call by providing a very early look at how we think the business will perform in the following fiscal year. I'm going to keep my comments brief today, but provide some context to the 2024 numbers that Steve Valenzuela will outline. I'm also excited to welcome Dan Kirschner, the president of our platforms business, to the call to update you on a few product development initiatives. Before I hand things to Dan, I want to comment further on where we are strategically and what we see in the year ahead. Overall, I'm pleased with our growth in SAS revenue this year and our opportunity to maintain that momentum through next year. In 2023, we successfully accomplished some belt tightening in the business and have been able to produce the same adjusted EBITDA on a real dollar basis as in 2022. We achieved this despite an unexpected setback late last year that impacted our IP license revenues and which generated material legal costs. Even as we made these adjustments, we continued to build strong businesses in commercial intrusion and access, residential and commercial video, and energy management. We've built an international business that now serves over 60 countries globally and includes partnerships with some of the largest security companies in the world. We have also established toehold positions in the HVAC channel, the multifamily housing segment, the active shooter detection vertical, and the IoT device monitoring space. We expect these growth initiatives to continue to generate increasing contributions to our overall performance next year and become more efficient with scale. In 2024, we will continue to pursue our core strategy. We will invest back into the residential and commercial solutions that our service providers sell and deliver to the market every day, while also continuing to build and invest in our growth initiatives. We continue to see good results from the investments we have made in video, commercial, international, and energy management, and expect these areas will steadily be drivers of our overall growth in the future. In summary, I'm pleased with our third quarter results and the execution of our plan, and I want to thank our investors for their continued trust in our business. And with that, let me turn things over to Dan Kershner to provide an update on our video business.