ALRM - Embedded Expectations Analysis - 2018 04 25
Alarm.Com Holdings, Inc. (ALRM:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 37.7x Uniform P/E. However, even at these levels, the market has bearish expectations for the firm, and management has concerns about revenues, earnings, and customer engagementSpecifically, management may have concerns about local marketing initiatives with their service providers, and may lack confidence in the sustainability of SaaS and license gross margins and revenue improvements. In addition, they may lack confidence in the sustainability of non-GAAP net income improvements, and may be concerned about their ability to continue finding valuable growth opportunities going forward. Additionally, they may have concerns about their Google Home integration, and may lack confidence in their ability to use their business intelligence tools to drive higher customer engagement
Alarm.com is a platform for the intelligently connected property. The company provides a suite of cloud-based solutions for smart residential and commercial properties. The company's service provider partners can deploy its interactive security, video monitoring, intelligent automation and energy management solutions as stand-alone offerings or as combined solutions to address the needs of a range of customers. The company's subscribers can connect to their property through the company's family of mobile apps, websites, and engagement platforms like voice control through Amazon Echo and Google Home, wearable devices like the Apple Watch and TV platforms such as Apple TV and Amazon Fire TV.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
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