Alarm.com Holdings, Inc.

Thank you for standing by and welcome to alarm.com's first quarter 2024 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star 1-1 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 1-1 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Matthew Zartman, Vice President of Strategic Communications and Investor Relations. Please go ahead, sir.

Good afternoon, everyone, and welcome to Alarm.com's first quarter 2024 earnings conference call. Please note that this call is being recorded. Joining us today from Alarm.com are Steve Trundle, our CEO, and Steve Valenzuela, our CFO. During today's call, we will be making forward-looking statements, which are predictions, projections, estimates, and 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 10-Q, and our Form 8K, which will be filed shortly after this call with the SEC along with the associated press release. This 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 speak 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 are pleased to report first quarter results that exceeded our expectations. Our SAS and license revenue in the first quarter was $150.3 million, up 11% over last year. Our adjusted EBITDA for the quarter was $37 million. I want to thank our service provider partners and our employees for their contributions to our results. On today's call, I'll share a few of my observations from our participation at ISC West, the largest security trade conference in the US, and I'll also update you on some of our recently released product capabilities before turning things over to Steve Valenzuela. In April, Alarm.com had a strong presence at ISC West which was attended by nearly 30,000 security trade professionals. The conference attracts a broad set of market participants from manufacturers and technology providers to a diverse range of North American and international service providers. So I had the opportunity to hear from many of our partners and update my feel for both the market and the competition that we see. There continues to be growing interest among service providers in our full range of commercial capabilities. One example that garnered attention during the conference is our recently launched cloud-based vehicle management solution called Connected Fleet. The solution offers professional-grade fleet management capabilities, including vehicle alerts, location tracking, and fuel monitoring. Connected Fleet is also deeply integrated into our commercial software to extend operational visibility beyond the walls of the business. Alarm.com's robust enterprise reporting engine offers business management alerts and automated trip reporting. Connected Fleet also integrates with our enterprise dashboard capability, enabling businesses to seamlessly monitor and manage vehicle fleets dispersed across thousands of locations. Many of our partners indicated that Connected Fleet's product integration, along with their existing trusted relationships with commercial end customers, will allow them to cross-sell effectively into the fleet management category. We began introducing Connected Fleet to our partners in April and expect a ramp-up period as they evaluate the solution and develop their go-to-market plans. Over time, we believe that this category will contribute to our growth on the commercial side of the business similar to the gradual but steady ramp in production that we have seen with our cloud-based access control solution. Shifting to our video platform, we recently launched a new video analytics capability called Familiar Vehicle Analytics. Subscribers can tag a familiar vehicle in a video clip and personalize the AI model associated with their property to recognize that particular vehicle going forward. They can then use our rules engine to create customized video recording and notification rules based on when certain known vehicles or unknown ones are identified. Familiar vehicle analytics will be offered with our video analytics service package. We believe it will provide another high value system touch point and create meaningful subscriber engagement multiple times per day. Looking ahead, we are positioned to continue to innovate in AI, and we plan to bring additional capabilities to market that allow customers to personalize the AI models associated with their specific property. Overall, I'm pleased with our first quarter results. We continue to deliver products and capabilities that allow us to grow revenues in our increasingly diverse markets, including the residential smart home market, and the commercial security, video, access control, and fleet management markets. We also continue to build our energy business, Energy Hub, and our international business with customers in over 60 countries around the world. Each of these initiatives has reached different stages of maturity, and their operating margin structures range from negative to the high 20s. Our goal is to build out each of these areas while also producing adjusted EBITDA margins on an overall consolidated basis of 18% as we grow the business. I want to thank our service provider partners and our team for their hard work and our investors for their continued trust in our business. With that, I'll hand things over to Steve Valenzuela to review our financials. Steve?