ALRM Alarm com Holdings Inc

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Alarm.com Holdings, Inc. (referred to herein as Alarm.com, the Company, or we) is the leading platform for the intelligently connected property. Our cloud-based platform offers an expansive suite of Internet of Things, or IoT, solutions addressing opportunities in the residential, multi-family, small business and enterprise commercial markets. Alarm.com’s solutions include security, video and video analytics, energy management, access control, electric utility grid management, indoor gunshot detection, water management, health and wellness and data-rich emergency response. Our solutions are delivered through an established network of trusted service provider partners, who are experts at selling, installing and supporting our solutions. We derive revenue from the sale of our cloud-based Software-as-a-Service, or SaaS, services, license fees, software, hardware, activation fees and other revenue. Our fiscal year ends on December 31.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include our accounts and those of our majority-owned and controlled subsidiaries after elimination of intercompany accounts and transactions.

These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP, for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission, or SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual financial statements. They should be read together with our audited consolidated financial statements and related notes thereto for the year ended December 31, 2023 included in our Annual Report on Form 10-K filed with the SEC on February 22, 2024, or the Annual Report. The condensed consolidated balance sheet as of December 31, 2023 was derived from our audited financial statements but does not include all disclosures required by GAAP for annual financial statements.

In the opinion of management, these condensed consolidated financial statements include all normal recurring adjustments necessary for a fair statement of the results of operations, financial position and cash flows for the periods presented. However, the global economy, credit markets and financial markets have and may continue to experience significant volatility as a result of significant worldwide events, including public health crises, and geopolitical upheaval, such as Russia’s incursion into Ukraine and the conflict between Israel and regional adversaries, disruptions to global supply chains, rising interest rates, risk of recession and inflation (collectively, the Macroeconomic Conditions). These Macroeconomic Conditions have and may continue to create supply chain disruptions, inventory disruptions, and fluctuations in economic growth, including fluctuations in employment rates, inflation, energy prices and consumer sentiment. It remains difficult to assess or predict the ultimate duration and economic impact of the Macroeconomic Conditions. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results that can be expected for our entire fiscal year ending December 31, 2024, which is increasingly true in periods of extreme uncertainty, such as the uncertainty caused by the Macroeconomic Conditions. Prolonged uncertainties could cause further economic slowdown or cause other unpredictable events, each of which could adversely affect our business, results of operations or financial condition.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. As of the date of issuance of these financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, assumptions and judgments or revise the carrying value of our assets or liabilities. However, our estimates, judgments and assumptions are continually evaluated based on available information and experience and may change as new events occur and additional information is obtained. Because of the use of estimates inherent in the financial reporting process and in light of the continuing uncertainty arising from the Macroeconomic Conditions, actual results could differ from those estimates and any such differences may be material. Estimates are used when accounting for revenue recognition, allowances for credit losses, allowance for hardware returns, estimates of obsolete inventory, long-term incentive compensation, the lease term and incremental borrowing rates for leases, stock-based compensation, income taxes, legal reserves, goodwill, intangible assets and other long-lived assets.

Significant Accounting Policies

Other than those disclosed herein, there have been no other material changes to our significant accounting policies during the three and six months ended June 30, 2024 from those disclosed in our Annual Report.

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Capped Call Transactions

On May 31, 2024, we issued $500.0 million aggregate principal amount of 2.25% convertible senior notes due June 1, 2029 in a private placement to qualified institutional buyers, or the 2029 Notes. In connection with the offering of the 2029 Notes, we entered into privately negotiated capped call transactions with one of the initial purchasers and certain other financial institutions, at a cost of $63.1 million. The capped call transactions cover, subject to customary adjustments substantially similar to those applicable to the 2029 Notes, the number of shares of our common stock initially underlying the 2029 Notes. As the capped call options are both legally detachable and separately exercisable from the 2029 Notes, we account for the capped call options separately from the 2029 Notes. The capped call options are indexed to our own common stock and classified in stockholders’ equity. As such, the premiums paid for the capped call options were included as a net reduction to additional paid-in capital in the condensed consolidated balance sheets. The capped call transactions will not be remeasured as long as they continue to meet the conditions for equity classification.

We elected to integrate the capped call options with the 2029 Notes for federal income tax purposes pursuant to applicable U.S. Treasury Regulations. Accordingly, the $63.1 million cost of the purchased capped calls will be deductible for income tax purposes. The original issue discount is accreted over the term of the 2029 Notes.

Recent Accounting Pronouncements

Adopted

During the three and six months ended June 30, 2024, we did not adopt any new accounting pronouncements.

Not Yet Adopted

On November 27, 2023, the Financial Accounting Standards Board, or FASB, issued ASU 2023-07, "Segment Reporting (Topic 280),” which revises the disclosure requirements about a public entity’s reportable segments and a reportable segment’s expenses. This amendment requires a public entity to (i) disclose significant segment expense that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, (ii) disclose an amount for other segment items by reportable segment and a description of its composition and (iii) provide annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods. The amendment is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. This amendment is required to be applied retrospectively to all prior periods presented. We are currently assessing the impact this pronouncement will have on our consolidated financial statement disclosures.

On December 14, 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740)," which requires additional annual disclosures regarding specific categories in the income tax rate reconciliation as well additional information for reconciling items that meet a quantitative threshold. This amendment also requires annual disclosures regarding the amount of income taxes paid, including income taxes paid disaggregated by (i) federal, state and foreign taxes as well as (ii) individual jurisdictions in which income taxes paid is equal to or greater than five percent of total income taxes paid. Additionally, this amendment requires annual disclosures for income from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign as well as income tax expense (or benefit) disaggregated between federal, state and foreign. The amendment is effective for annual periods beginning after December 15, 2024, and early adoption is permitted. This amendment should be applied on a prospective basis, but retrospective application is permitted. We are currently assessing the impact this pronouncement will have on our consolidated financial statement disclosures.

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Contract Assets

The changes in our contract assets are as follows (in thousands):

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Beginning of period balance			$	10,466					$	13,879					$	9,099					$	13,975
Commission costs and upfront payments to a customer capitalized in period			2,235						1,547						5,347						3,220
Amortization of contract assets			(1,796)						(1,845)						(3,541)						(3,614)
End of period balance			$	10,905					$	13,581					$	10,905					$	13,581

Contract Liabilities

The changes in our contract liabilities are as follows (in thousands):

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Beginning of period balance			$	24,212					$	20,231					$	22,885					$	18,332
Revenue deferred in period			7,549						5,719						13,973						11,659
Revenue recognized from amounts included in contract liabilities			(5,854)						(4,490)						(10,951)						(8,531)
End of period balance			$	25,907					$	21,460					$	25,907					$	21,460

The components of accounts receivable, net are as follows (in thousands):

			June 30, 2024						December 31, 2023
Accounts receivable			$	129,925					$	136,769
Allowance for credit losses			(3,766)						(3,864)
Allowance for product returns			(2,608)						(2,279)
Accounts receivable, net			$	123,551					$	130,626

For the three and six months ended June 30, 2024, we recorded a provision for credit losses of $0.1 million and $0.4 million, respectively, as compared to $0.1 million and $0.6 million for the same periods in the prior year.

For the three and six months ended June 30, 2024, we recorded a reserve for product returns of $0.9 million and $2.0 million in our hardware and other revenue, respectively, as compared to $1.3 million and $2.5 million for the same periods in the prior year. Historically, we have not experienced write-offs for uncollectible accounts or sales returns that have differed significantly from our estimates.

Allowance for Credit Losses

The allowance for credit losses is a valuation account that is deducted from the accounts receivable and notes receivable amortized cost basis (see Note 8) to present the net amount expected to be collected. We estimate the allowance balance by applying the loss-rate method using relevant available information from internal and external sources, including historical write-off activity, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for changes in economic conditions, such as changes in unemployment rates. We use projected economic conditions over a period no more than twelve months based on data from external sources. For periods beyond the twelve-month reasonable and supportable forecast period, we revert to historical loss information immediately.

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The allowance for credit losses is measured on a pooled basis when similar risk characteristics exist. When assessing whether to measure certain financial assets on a pooled basis, we considered various risk characteristics, including the financial asset type, size and the historical or expected credit loss pattern.

Expected credit losses are estimated over the contractual term of the financial assets and we adjust the term for expected prepayments when appropriate. For the three and six months ended June 30, 2024, we recorded credit loss expense for accounts receivable and notes receivable of $0.2 million and $4.2 million, respectively, in general and administrative expense in our condensed consolidated statements of operations. For the three and six months ended June 30, 2023, we recorded credit loss expense for accounts receivable and notes receivable of less than $0.1 million and $0.5 million, respectively, in general and administrative expense in our condensed consolidated statements of operations. The contractual term excludes expected extensions, renewals and modifications because extension and renewal options are unconditionally cancelable by us. Write-offs of the amortized cost basis are recorded to the allowance for credit losses. Any subsequent recoveries of previously written off balances are recorded as a reduction to credit loss expense.

Allowance for Credit Losses - Accounts Receivable

We identified the following two portfolio segments for our accounts receivable: (i) outstanding accounts receivable balances within Alarm.com and certain subsidiaries and (ii) outstanding accounts receivable balances within all other subsidiaries. There were no changes to our portfolio segments for our accounts receivable during the three and six months ended June 30, 2024, and no changes to our policies or practices that influenced our estimate of expected credit losses for accounts receivable. Additionally, there were no significant changes in the amount of accounts receivable write-offs during the three and six months ended June 30, 2024, as compared to historical periods.

The changes in our allowance for credit losses for accounts receivable are as follows (in thousands):

			Three Months Ended June 30, 2024												Three Months Ended June 30, 2023												Six Months Ended June 30, 2024												Six Months Ended June 30, 2023
			Alarm.com and Certain Subsidiaries						All Other Subsidiaries						Alarm.com and Certain Subsidiaries						All Other Subsidiaries						Alarm.com and Certain Subsidiaries						All Other Subsidiaries						Alarm.com and Certain Subsidiaries						All Other Subsidiaries
Beginning of period balance			$	(3,966)					$	(88)					$	(3,102)					$	(97)					$	(3,723)					$	(141)					$	(2,755)					$	(80)
(Provision for) / recovery of expected credit losses			(101)						(2)						19						(96)						(388)						31						(487)						(130)
Write-offs			390						1						115						2						434						21						274						19
End of period balance			$	(3,677)					$	(89)					$	(2,968)					$	(191)					$	(3,677)					$	(89)					$	(2,968)					$	(191)

The components of inventory are as follows (in thousands):

			June 30, 2024						December 31, 2023
Raw materials			$	26,228					$	30,452
Work-in-process			686						275
Finished goods			52,668						65,413
Total inventory			$	79,582					$	96,140

Inventory values are net of a write-down of $1.4 million during the year ended December 31, 2023, which is reflected in cost of hardware and other revenue within our condensed consolidated statements of operations. The inventory write-down was the result of a lower of cost or net realizable value adjustment for finished goods.

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Asset Acquisition

On April 21, 2023, Alarm.com Incorporated, one of our wholly-owned subsidiaries, acquired certain assets of Vintra, Inc., or Vintra. Substantially all of the acquired assets consisted of developed technology. We believe the acquisition of the developed technology will expand Alarm.com's learning program and accelerate deployment of advanced video analytics solutions for the Alarm.com and OpenEye platforms.

In consideration for the purchase of the acquired assets, we paid $5.5 million in cash on April 21, 2023, after deducting $0.3 million related to the settlement of an outstanding loan issued to Vintra during March 2023 and $1.0 million related to an agreed holdback provision. The holdback is expected to be paid by the third quarter of 2024, subject to offset for any indemnification obligations. Additionally, we incurred $0.4 million in direct transaction costs related to legal fees during 2023 that were capitalized as a component of the consideration transferred. The $7.1 million purchase price consideration allocated to developed technology was recorded as an intangible asset at the time of the asset acquisition and is being amortized on a straight-line basis over an estimated useful life of five years. The remaining $0.1 million purchase price consideration was allocated to property and equipment.

Acquisition of a Business - EBS

On January 18, 2023, one of our wholly-owned subsidiaries acquired 100% of the issued and outstanding shares of capital stock of EBS Spółka z ograniczoną odpowiedzialnością, or EBS, an international producer of universal smart communicator devices, headquartered in Warsaw, Poland. We believe this acquisition will assist in the continued expansion of our international operations as well as benefit our supply chain operations.

In consideration for the purchase of EBS, we paid $9.8 million in cash on January 18, 2023, after deducting $2.2 million related to agreed holdback provisions. An earn-out up to an additional $2.5 million is payable if certain performance targets are met, which was initially recorded at the acquisition date fair value of $2.0 million. The acquisition was accounted for as a business combination within our Alarm.com segment. The purchase price allocation was finalized during the third quarter of 2023. The overall impacts to our condensed consolidated financial statements were not considered material during the year of the acquisition.

The changes in goodwill by reportable segment are outlined below (in thousands):

			Alarm.com						Other						Total
Balance as of January 1, 2024			$	154,498					$	—					$	154,498
Foreign currency translation adjustment			(142)						—						(142)
Balance as of June 30, 2024			$	154,356					$	—					$	154,356

The following table reflects changes in the net carrying amount of the components of intangible assets (in thousands):

			Customer Relationships						Developed Technology						Trade Name						Capitalized Software Development Costs						Other						Total
Balance as of January 1, 2024			$	39,294					$	37,174					$	1,217					$	879					$	—					$	78,564
Intangible assets acquired			—						—						—						—						45						45
Capitalized software development costs			—						—						—						740						—						740
Amortization			(4,837)						(4,106)						(414)						(64)						—						(9,421)
Balance as of June 30, 2024			$	34,457					$	33,068					$	803					$	1,555					$	45					$	69,928

During the three and six months ended June 30, 2024, we paid less than $0.1 million for the purchase of domain names. We recorded $4.7 million and $9.4 million of amortization related to our intangible assets for the three and six months ended June 30, 2024, respectively, as compared to $4.7 million and $9.3 million for the same periods in the prior year. There were no impairments of long-lived intangible assets during the three and six months ended June 30, 2024 and 2023. During the six months ended June 30, 2024, $0.3 million of fully amortized developed technology intangible assets previously acquired were written-off in the Alarm.com segment as the technology was no longer in use.

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The following tables reflect the weighted average remaining life and carrying value of finite-lived intangible assets (in thousands, except weighted-average remaining life):

			June 30, 2024
			Gross Carrying Amount						Accumulated Amortization						Net Carrying Value						Weighted- Average Remaining Life (in years)
Customer relationships			$	128,280					$	(93,823)					$	34,457					5.7
Developed technology			69,731						(36,663)						33,068						4.3
Trade name			4,474						(3,671)						803						2.6
Capitalized software development costs			1,622						(67)						1,555						3.0
Other			45						—						45						5.0
Total intangible assets			$	204,152					$	(134,224)					$	69,928					4.9

			December 31, 2023
			Gross Carrying Amount												Accumulated Amortization						Net Carrying Value						Weighted- Average Remaining Life (in years)
Customer relationships			$	128,280											$	(88,986)					$	39,294					6.2
Developed technology			70,061												(32,887)						37,174						4.7
Trade name			4,474												(3,257)						1,217						2.6
Capitalized software development costs			882												(3)						879						3.3
Total intangible assets			$	203,697											$	(125,133)					$	78,564					5.4

Loan to a Distribution Partner

In December 2022, we amended a subordinated credit agreement with the affiliated entity of one of our distribution partners, or the Affiliate. The amended subordinated credit agreement with the Affiliate matures on June 18, 2027 and interest on the outstanding principal balance accrues at a rate of 12.0% per annum and is payable in kind. In March 2024, the Affiliate was in default on a loan arrangement with one of its third party secured lenders. Based on this information from the Affiliate, during the three months ended March 31, 2024, we recorded a credit loss expense of $4.0 million in general and administrative expense and recorded a reduction to our interest income of $0.5 million related to the reversal of payable in kind interest associated with the subordinated credit agreement. We placed this loan in nonaccrual status and recorded a full allowance for credit losses for this note receivable as of March 31, 2024. During the three months ended June 30, 2024, we wrote off the entire $4.0 million outstanding note receivable balance and reversed the previously recorded allowance for credit losses. As of December 31, 2023, $4.5 million of the notes receivable balance related to the subordinated credit agreement was included in other assets in our condensed consolidated balance sheet.

For the three and six months ended June 30, 2024, we recognized $0.6 million and $1.3 million of revenue from the distribution partner associated with this loan, respectively, as compared to $0.8 million and $1.6 million for the same periods in the prior year.

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Loan to a Service Provider Partner

In July 2020, we entered into a loan agreement with a service provider partner, under which we agreed to loan the service provider partner up to $2.5 million, collateralized by the assets of the service provider partner. Interest on the outstanding principal accrues at a rate per annum equal to 9.0% and monthly interest and principal payments began in April 2021. The maturity date of the loan is July 24, 2025. As of June 30, 2024 and December 31, 2023, $1.0 million of principal was outstanding from the service provider partner under the loan agreement.

For the three and six months ended June 30, 2024 and 2023, we recognized less than $0.1 million and $0.1 million, respectively, of revenue from the service provider partner associated with this loan.

Loan to a Technology Partner

In June 2022, we entered into a convertible promissory note with a technology partner, under which we agreed to loan the technology partner $1.5 million. Interest on the outstanding principal accrues at a rate per annum equal to 6.5%, starting one year from the effective date of the loan. Interest and principal payments are due on the maturity date of the loan, which is June 27, 2029, unless the loan is converted prior to the maturity date, which may occur upon a qualified financing event, as defined in the convertible promissory note, upon a sale of the technology partner or upon our election on the maturity date of the loan. As of June 30, 2024 and December 31, 2023, $1.5 million of principal was outstanding from the technology partner under the convertible promissory note.

For the three and six months ended June 30, 2024 and 2023, we did not record any revenue from the technology partner associated with this convertible promissory note.

Investment in a Hardware Supplier

In October 2018, we entered into a subordinate convertible promissory note with one of our hardware suppliers. In July 2019, we converted the outstanding notes receivable balance of $5.6 million into 9,520,832 shares of Series B preferred stock in the hardware supplier. We concluded that the $5.6 million equity investment, which is included in the Alarm.com segment, does not meet the criteria for consolidation and will be accounted for using the measurement alternative. Under the alternative, we measure investments without readily determinable fair values at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments. As of June 30, 2024 and December 31, 2023, our investment in the hardware supplier was $5.6 million.

Investments in Technology Partners

In February 2021, we paid $5.0 million in cash to purchase 1,000,000 shares of Series B-2 Preferred Stock from a technology partner as part of a financing round that included other investors. The $5.0 million equity investment, which is included in the Alarm.com segment, does not meet the criteria for consolidation and is accounted for using the measurement alternative. Under the measurement alternative, we measure investments without readily determinable fair values at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments. As of June 30, 2024 and December 31, 2023, our investment in the technology partner was $5.7 million.

In December 2022, we paid $5.1 million in cash to another technology partner to purchase 4,231,717 shares of its Series A Preferred Stock. The $5.1 million equity investment, which is included in the Alarm.com segment, does not meet the criteria for consolidation and is accounted for using the measurement alternative. As of June 30, 2024 and December 31, 2023, our investment in the technology partner was $5.1 million.

Allowance for Credit Losses - Notes Receivable

We identified one portfolio segment, loan receivables, for our notes receivable. We previously disclosed a hardware financing receivable portfolio segment; however, there has been no activity within that portfolio segment since 2022. There were no changes to our policies or practices involving the issuance of notes receivable, customer acquisitions or any other factors that influenced our estimate of expected credit losses for notes receivable during the three and six months ended June 30, 2024.

We do not accrue interest on notes receivable that are considered impaired or are 90 days or greater past due based on their contractual payment terms. Notes receivable that are 90 days or greater past due are placed on nonaccrual status. Notes receivable may be placed on nonaccrual status earlier if, in management’s opinion, a timely collection of the full principal and interest becomes uncertain. After a note receivable has been placed on nonaccrual status, interest will be recognized when cash is received. A note receivable may be returned to accrual status after all of the customer’s delinquent balances of principal and interest have been settled, and collection of all remaining contractual amounts due is reasonably assured. We have elected not to measure an allowance for credit losses for accrued interest receivables. We write-off any accrued interest on notes receivable that are considered impaired or are 90 days or greater past due based on their contractual payment terms by reversing interest

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income. The accrued interest receivable as of June 30, 2024 and December 31, 2023 was $0.1 million, and is reflected in other current assets and other assets within our condensed consolidated balance sheets and excluded from the amortized cost basis of the notes receivable. During the six months ended June 30, 2024, we recorded a reduction to our interest income of $0.5 million related to the reversal of payable in kind interest associated with a subordinated credit agreement with the Affiliate. We did not write off any accrued interest receivable during the three months ended June 30, 2024 or the three and six months ended June 30, 2023.

There were no purchases or sales of financial assets during the three and six months ended June 30, 2024 and 2023. During the three and six months ended June 30, 2024, we wrote off $4.0 million related to a note receivable that originated in 2017 with the Affiliate and reversed the previously recorded allowance for credit losses.

The changes in our allowance for credit losses for notes receivable are as follows (in thousands):

			Three Months Ended June 30, 2024												Three Months Ended June 30, 2023												Six Months Ended June 30, 2024												Six Months Ended June 30, 2023
Beginning of period balance			$	(4,003)											$	(2)											$	(5)											$	(2)
Recover of / (provision for) expected credit losses			2												—												(3,996)												—
Write-offs			4,000												—												4,000												—
End of period balance			$	(1)											$	(2)											$	(1)											$	(2)

We manage our notes receivables using delinquency as a key credit quality indicator. The following tables reflect the current and delinquent notes receivable by class of financing receivables and by year of origination (in thousands):

			June 30, 2024
Loan Receivables:			2024						2023						2022						2021						2020						Prior						Total
Current			$	500					$	150					$	1,500					$	—					$	1,014					$	—					$	3,164
30-59 days past due			—						—						—						—						—						—						—
60-89 days past due			—						—						—						—						—						—						—
90-119 days past due			—						—						—						—						—						—						—
120+ days past due			—						—						—						—						—						—						—
Total			$	500					$	150					$	1,500					$	—					$	1,014					$	—					$	3,164

			December 31, 2023
Loan Receivables:			2023						2022						2021						2020						2019						Prior						Total
Current			$	150					$	1,500					$	—					$	1,039					$	—					$	4,524					$	7,213
30-59 days past due			—						—						—						—						—						—						—
60-89 days past due			—						—						—						—						—						—						—
90-119 days past due			—						—						—						—						—						—						—
120+ days past due			—						—						—						—						—						—						—
Total			$	150					$	1,500					$	—					$	1,039					$	—					$	4,524					$	7,213

There were no notes receivable placed on nonaccrual status as of June 30, 2024 and December 31, 2023. During the three and six months ended June 30, 2024 and 2023, there was no interest income recognized related to notes receivable that were in nonaccrual status.

As of June 30, 2024 and December 31, 2023, there were no notes receivable placed in nonaccrual status for which there was not a related allowance for credit losses. As of June 30, 2024 and December 31, 2023, there were no notes receivable that were 90 days or greater past due for which we continued to accrue interest income.

Prepaid Expenses

As of June 30, 2024 and December 31, 2023, $15.6 million and $14.6 million of prepaid expenses were included in other current assets, respectively, primarily related to software licenses, long lead-time parts related to our inventory and our office leases.

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The following tables present our assets and liabilities measured at fair value on a recurring basis (in thousands):

			Fair Value Measurements on a Recurring Basis
Assets:			Level 1						Level 2						Level 3						Total
Money market accounts as of June 30, 2024			$	1,093,874					$	—					$	—					$	1,093,874
Equity securities with readily determinable fair value as of June 30, 2024			1,427						—						—						1,427
Money market accounts as of December 31, 2023			679,734						—						—						679,734
Liabilities:
Contingent consideration liability from acquisition as of June 30, 2024			$	—					$	—					$	2,105					$	2,105
Contingent consideration liability from acquisition as of December 31, 2023			—						—						2,061						2,061

The following table summarizes the change in fair value of the Level 3 contingent consideration liability with significant unobservable inputs (in thousands):

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Beginning of period balance			$	2,092					$	2,006					$	2,061					$	—
Acquired liabilities			—						—						—						1,993
Changes in fair value included in earnings			13						14						44						27
End of period balance			$	2,105					$	2,020					$	2,105					$	2,020

    

As of June 30, 2024, $1.1 billion of our money market accounts was included in cash and cash equivalents, $5.2 million was included in other assets and $1.6 million was included in other current assets in our condensed consolidated balance sheets. As of December 31, 2023, $675.6 million of our money market accounts was included in cash and cash equivalents and $4.1 million was included in other assets in our condensed consolidated balance sheets. Our assets from money market accounts are valued using quoted prices in active markets. Our equity securities with readily determinable fair value represent our investments in publicly traded companies, which are valued using quoted prices in active markets. During the three and six months ended June 30, 2024, we recorded an unrealized loss on equity securities of less than $0.1 million. Our investments in public entities are recorded at fair value within other current assets in our condensed consolidated balance sheets and changes in fair value of the investments are recorded within other expense, net within our condensed consolidated statements of operations. See Note 12 for the carrying amounts and estimated fair values of our convertible senior notes as of June 30, 2024 and December 31, 2023.

The contingent consideration liability consists of the potential earn-out payment related to our acquisition of 100% of the issued and outstanding capital stock of EBS on January 18, 2023. The earn-out payment is contingent on the satisfaction of certain performance targets related to the integration of EBS's hardware into the Alarm.com platform by December 31, 2025 and has a maximum potential payment of up to $2.5 million. We account for the contingent consideration using fair value and established a liability for the future earn-out payment based on an estimation of the probability of the future achievement of the performance targets. The contingent consideration liability was valued with Level 3 unobservable inputs, including the probability of expected achievement of the performance targets. At January 18, 2023, the fair value of the liability was $2.0 million. At each reporting date until December 31, 2025, or the achievement of the performance targets, we will remeasure the liability, using the same valuation approach. The fair value of the contingent consideration liability is included within accounts payable, accrued expenses and other current liabilities as well as other liabilities within our condensed consolidated balance sheets. Changes in fair value resulting from information that existed subsequent to the acquisition date are recorded in general and administrative expense in the condensed consolidated statements of operations. During the three and six months ended June 30, 2024, the contingent consideration liability did not materially change from the acquisition date fair value of $2.0 million as there were minor changes in the expected probability of achievement for the performance targets. The unobservable inputs used in the valuation as of June 30, 2024 included a weighted average expected achievement percentage of 89.5%, weighted by the potential payout of the performance targets, including a range of 80.0% to 99.0%. The valuation also included a weighted average discount rate of 6.1%, weighted by the probability of achievement of the performance targets at various dates, including a range of 6.1% to 6.2%. Selecting another probability of expected achievement or discount rate within an acceptable range would not result in a significant change to the fair value of the contingent consideration liability.

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We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. There were no transfers into or out of Level 3 or reclassifications between levels of the fair value hierarchy during the three and six months ended June 30, 2024 and 2023.

As of June 30, 2024, we leased office space, data centers and office equipment under non-cancelable operating leases with various expiration dates through 2030. In August 2014, we signed a lease for office space in Tysons, Virginia, where we relocated our headquarters to in February 2016. We have subsequently entered into amendments to this lease to provide us with additional office space. The lease term ends in 2026, includes a five-year renewal option and a cumulative tenant improvement allowance of $12.1 million.

Supplemental information related to leases is presented in the table below (in thousands, except weighted-average term and discount rate):

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Operating lease cost			$	2,977					$	2,871					$	5,953					$	5,621
Cash paid for amounts included in the measurement of operating lease liabilities			3,530						3,434						6,751						6,796
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities			272						188						2,915						4,115
			June 30, 2024						December 31, 2023
Weighted-average remaining lease term — operating leases			3.0 years						3.0 years
Weighted-average discount rate — operating leases			5.3		%				4.9		%

Maturities of lease liabilities are as follows (in thousands):

Year Ended December 31,						Operating Leases(1)
Remainder of 2024						$	7,093
2025						12,598
2026						7,827
2027						2,500
2028						1,841
2029 and thereafter						1,904
Total lease payments						33,763
Less: imputed interest(2)						3,626
Present value of lease liabilities						$	30,137

_______________

(1)Excludes $6.4 million of legally binding minimum lease payments for leases executed but not yet commenced. There are no options to extend lease terms that were reasonably certain of being exercised included in these balances.

(2)Imputed interest was calculated using the incremental borrowing rate applicable for each lease.

We did not have any finance leases or subleases as of June 30, 2024 or December 31, 2023. Our lease agreements do not contain any material residual value guarantees, restrictive covenants or variable lease payments. Short-term lease costs were immaterial for the three and six months ended June 30, 2024 and 2023.

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The components of accounts payable, accrued expenses and other current liabilities are as follows (in thousands):

			June 30, 2024						December 31, 2023
Accounts payable			$	50,905					$	39,038
Accrued expenses			19,096						21,559
Income taxes payable			10,887						42,501
Holdback liability from business combinations and asset acquisitions			2,700						7,340
Contingent consideration liability from acquisition			1,192						—
Other current liabilities			11,295						14,037
Accounts payable, accrued expenses and other current liabilities			$	96,075					$	124,475

The components of other liabilities are as follows (in thousands):

			June 30, 2024						December 31, 2023
Contingent consideration liability from acquisition			$	913					$	2,061
Other liabilities			13,401						10,636
Other liabilities			$	14,314					$	12,697

The debt, commitments and contingencies described below would require us, or our subsidiaries, to make payments to third parties under certain circumstances.

Convertible Senior Notes - 2026 Notes

On January 20, 2021, we issued $500.0 million aggregate principal amount of 0% convertible senior notes due January 15, 2026 in a private placement to qualified institutional buyers, or the 2026 Notes. The terms of the 2026 Notes are governed by an Indenture, or the 2026 Indenture, by and between Alarm.com Holdings, Inc. and U.S. Bank National Association, as trustee. The 2026 Notes are senior unsecured obligations that do not bear regular interest and the principal amount of the 2026 Notes will not accrete. The 2026 Notes may bear special interest under specified circumstances related to our failure to comply with our reporting obligations under the 2026 Indenture. Special interest, if any, will be payable semiannually in arrears on January 15 and July 15 of each year, beginning on July 15, 2021. We received proceeds from the issuance of the 2026 Notes of $484.3 million, net of $15.7 million of transaction fees and other debt issuance costs.

We may redeem for cash, all or any portion of the 2026 Notes, at our option, on or after January 20, 2024, at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the redemption date, if the last reported sale price of our common stock has been at least 130% of the conversion price for the 2026 Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption. No sinking fund is provided for the 2026 Notes.

The 2026 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding August 15, 2025, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price for the 2026 Notes on each applicable trading day; (2) during the five business day period immediately after any 10 consecutive trading day period in which, for each trading day of that period, the trading price per $1,000 principal amount of 2026 Notes for such trading day was less than 98% of the product of the last reported sale price of our common stock and the conversion rate for the 2026 Notes on each such trading day; (3) if we call any or all of the 2026 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the 2026 Notes called (or deemed called) for redemption; or (4) upon the occurrence of specified corporate events as set forth in the 2026 Indenture.

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On or after August 15, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date of the 2026 Notes, holders of the 2026 Notes may convert all or any portion of their 2026 Notes at any time, regardless of the foregoing conditions. Upon conversion, we may satisfy our conversion obligation by paying or delivering, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. It is our current intent to settle the principal amount of the 2026 Notes with cash. The initial conversion rate for the 2026 Notes is 6.7939 shares of our common stock per $1,000 principal amount of 2026 Notes, which is equivalent to an initial conversion price of $147.19 per share of our common stock, subject to adjustment under certain circumstances in accordance with the terms of the 2026 Indenture. In addition, following certain corporate events that occur prior to the maturity date of the 2026 Notes or if we deliver a notice of redemption in respect of the 2026 Notes, we will, under certain circumstances, increase the conversion rate of the 2026 Notes for a holder who elects to convert its 2026 Notes (or any portion thereof) in connection with such a corporate event or convert its 2026 Notes called (or deemed called) for redemption during the related redemption period (as defined in the 2026 Indenture), as the case may be.

If we undergo a fundamental change (as defined in the 2026 Indenture), subject to certain exceptions and except as described in the 2026 Indenture, holders may require us to repurchase for cash all or any portion of their 2026 Notes at a fundamental change repurchase price equal to 100% of the principal amount of the 2026 Notes to be repurchased, plus accrued and unpaid special interest, if any, to, but excluding, the fundamental change repurchase date.

The 2026 Indenture includes customary covenants and sets forth certain events of default after which the 2026 Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving us after which the 2026 Notes become automatically due and payable.

We used some of the proceeds to repay the $110.0 million outstanding principal balance under our credit facility and also used some of the proceeds to pay accrued interest, fees and expenses related to our credit facility, which was terminated effective January 20, 2021. We are using the remaining net proceeds from the issuance of the 2026 Notes for working capital and other general corporate purposes, which may include acquisitions or strategic investments in complementary businesses or technologies.

We account for the 2026 Notes as a liability. The debt issuance costs are presented as a deduction from the outstanding principal balance of the 2026 Notes and are amortized to interest expense using the effective interest method over the contractual term of the 2026 Notes at a rate of 0.6%.

As of June 30, 2024 and December 31, 2023, the fair value of our 2026 Notes was $457.0 million and $444.8 million, respectively. The fair value was determined based on the quoted price of the 2026 Notes in an inactive market on the last traded day of the quarter and has been classified as Level 2 in the fair value hierarchy. Based on the closing price of our common stock of $63.54 on the last trading day of the quarter, the if-converted value of the 2026 Notes did not exceed the principal amount of $500.0 million as of June 30, 2024.

The net carrying amount of the liability component of the 2026 Notes is as follows (in thousands):

			June 30, 2024						December 31, 2023
Principal			$	500,000					$	500,000
Unamortized debt issuance costs			(4,904)						(6,485)
Net carrying amount			$	495,096					$	493,515

Interest expense related to the 2026 Notes is as follows (in thousands):

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Amortization of debt issuance costs			$	791					$	786					$	1,581					$	1,570
Total interest expense			$	791					$	786					$	1,581					$	1,570

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Convertible Senior Notes - 2029 Notes

On May 31, 2024, we issued $500.0 million aggregate principal amount of 2.25% convertible senior notes due June 1, 2029 in a private placement to qualified institutional buyers, or the 2029 Notes. The terms of the 2029 Notes are governed by an Indenture, or the 2029 Indenture, by and between Alarm.com Holdings, Inc. and U.S. Bank Trust Company, National Association, as trustee. The 2029 Notes are senior unsecured obligations that bear interest at a rate of 2.25% per annum, payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2024, and the principal amount of the 2029 Notes will not accrete. We received proceeds from the issuance of the 2029 Notes of $485.2 million, net of $14.8 million of transaction fees and other debt issuance costs.

We may redeem for cash, all or any portion of the 2029 Notes (subject to the partial redemption limitation described below), at our option, on or after June 7, 2027, at a redemption price equal to 100% of the principal amount of the 2029 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, if the last reported sale price of our common stock has been at least 130% of the conversion price for the 2029 Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption. If we redeem less than all the 2029 Notes, at least $75.0 million aggregate principal amount of the 2029 Notes must be outstanding and not subject to redemption as of the relevant redemption notice date. No sinking fund is provided for the 2029 Notes.

The 2029 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding January 1, 2029, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2024 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price for the 2029 Notes on each applicable trading day; (2) during the five business day period immediately after any 10 consecutive trading day period in which, for each trading day of that period, the trading price per $1,000 principal amount of 2029 Notes for such trading day was less than 98% of the product of the last reported sale price of our common stock and the conversion rate for the 2029 Notes on each such trading day; (3) if we call any or all of the 2029 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the 2029 Notes called (or deemed called) for redemption; or (4) upon the occurrence of specified corporate events as set forth in the 2029 Indenture.

On or after January 1, 2029, until the close of business on the second scheduled trading day immediately preceding the maturity date of the 2029 Notes, holders of the 2029 Notes may convert all or any portion of their 2029 Notes at any time, regardless of the foregoing conditions. Upon conversion, we may satisfy our conversion obligation by paying or delivering, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. It is our current intent to settle the principal amount of the 2029 Notes with cash. The initial conversion rate for the 2029 Notes is 11.4571 shares of our common stock per $1,000 principal amount of 2029 Notes, which is equivalent to an initial conversion price of $87.28 per share of our common stock, subject to adjustment under certain circumstances in accordance with the terms of the 2029 Indenture. In addition, following certain corporate events that occur prior to the maturity date of the 2029 Notes or if we deliver a notice of redemption in respect of some or all of the 2029 Notes, we will, under certain circumstances, increase the conversion rate of the 2029 Notes for a holder who elects to convert its 2029 Notes (or any portion thereof) in connection with such a corporate event or convert its 2029 Notes called (or deemed called) for redemption during the related redemption period (as defined in the 2029 Indenture), as the case may be.

If we undergo a fundamental change (as defined in the 2029 Indenture), subject to certain exceptions and except as described in the 2029 Indenture, holders may require us to repurchase for cash all or any portion of their 2029 Notes at a fundamental change repurchase price equal to 100% of the principal amount of the 2029 Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date.

The 2029 Indenture includes customary covenants and sets forth certain events of default after which the 2029 Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving us after which the 2029 Notes become automatically due and payable.

We used $63.1 million of the net proceeds from the 2029 Notes to pay the cost of the capped call transactions described below and used $75.0 million to repurchase 1,117,068 shares of our common stock concurrently with the pricing of the 2029 Notes, which was separately authorized by our board of directors. We expect to use the remaining net proceeds from the issuance of the 2029 Notes for general corporate purposes, which may include acquisitions or strategic investments in complementary businesses or technologies, other repurchases of our common stock, repurchases of our 2026 Notes and for working capital, operating expenses and capital expenditures.

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We account for the 2029 Notes as a liability. The debt issuance costs are presented as a deduction from the outstanding principal balance of the 2029 Notes and are amortized to interest expense using the effective interest method over the contractual term of the 2029 Notes at a rate of 2.9%.

As of June 30, 2024, the fair value of our 2029 Notes was $491.4 million. The fair value was determined based on the quoted price of the 2029 Notes in an inactive market on the last traded day of the quarter and has been classified as Level 2 in the fair value hierarchy. Based on the closing price of our common stock of $63.54 on the last trading day of the quarter, the if-converted value of the 2029 Notes did not exceed the principal amount of $500.0 million as of June 30, 2024.

The net carrying amount of the liability component of the 2029 Notes is as follows (in thousands):

			June 30, 2024						December 31, 2023
Principal			$	500,000					$	—
Unamortized debt issuance costs			(14,604)						—
Net carrying amount			$	485,396					$	—

Interest expense related to the 2029 Notes is as follows (in thousands):

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Interest expense			$	938					$	—					$	938					$	—
Amortization of debt issuance costs			230						—						230						—
Total interest expense			$	1,168					$	—					$	1,168					$	—

Capped Call – 2029 Notes

In connection with the offering of the 2029 Notes, we entered into privately negotiated capped call transactions with one of the initial purchasers and certain other financial institutions, at a cost of $63.1 million. The capped call transactions cover, subject to customary adjustments substantially similar to those applicable to the 2029 Notes, the number of shares of our common stock initially underlying the 2029 Notes. The cap price of the capped call transactions is initially $134.28 per share of our common stock, which represents a premium of 100% over the closing price of our common stock on the Nasdaq Global Select Market on May 28, 2024, and is subject to certain adjustments under the terms of the capped call transactions. The exercise price is $87.28 per share of common stock, subject to customary anti-dilution adjustments that mirror corresponding adjustments for the 2029 Notes.

We elected to integrate the capped call options with the 2029 Notes for federal income tax purposes pursuant to applicable U.S. Treasury Regulations. Accordingly, the $63.1 million cost of the purchased capped calls will be deductible for income tax purposes. The original issue discount is accreted over the term of the 2029 Notes.

The capped call transactions are generally expected to reduce the potential dilution to holders of our common stock upon any conversion of the 2029 Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted 2029 Notes, as the case may be, with such reduction and/or offset subject to a cap. As the capped call options are both legally detachable and separately exercisable from the 2029 Notes, we account for the capped call options separately from the 2029 Notes. The capped call options are indexed to our own common stock and classified in stockholders’ equity. As such, the premiums paid for the capped call options were included as a net reduction to additional paid-in capital in the condensed consolidated balance sheets. The capped call transactions will not be remeasured as long as they continue to meet the conditions for equity classification.

Commitments and Contingencies

Indemnification Agreements

We have various agreements that may obligate us to indemnify the other party to the agreement with respect to certain matters. Generally, these indemnification provisions are included in contracts arising in the normal course of business. Although we cannot predict the maximum potential amount of future payments that may become due under these indemnification agreements, we do not believe any potential liability that might arise from such indemnity provisions is probable or material.

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Legal Proceedings

On January 10, 2022, EcoFactor, Inc., or EcoFactor, filed a lawsuit against us in U.S. District Court, District of Oregon, alleging Alarm.com’s products and services directly and indirectly infringe five U.S. patents owned by EcoFactor. EcoFactor is seeking a permanent injunction, enhanced damages and attorneys' fees. EcoFactor had previously asserted two of the same patents against us in an October 2019 complaint with the U.S. International Trade Commission, or ITC. In July 2021, the ITC found in favor of Alarm.com. EcoFactor appealed the decision but withdrew its appeal in December 2021. We moved to dismiss the Oregon case for failure to state a claim on March 28, 2022. Three of the asserted patents are in ex parte reexamination proceedings at the PTO, and ex parte reexamination of a fourth patent concluded on August 23, 2023 after the claims were amended. On April 18, 2022, all claims of a fifth patent were found unpatentable by the U.S. Patent Trial and Appeal Board, or PTAB, in an inter partes review, and all claims were canceled on February 1, 2024. On April 18, 2022, the district court stayed the case at the request of the parties pending the disposition of PTAB and other proceedings involving the asserted patents.

Should EcoFactor prevail in its lawsuit we could be required to pay damages and/or a reasonable royalty for sales of our solution, we could be enjoined from making, using and selling our solution if a license or other right to continue selling such elements is not made available to us, and we could be required to pay ongoing royalties and comply with unfavorable terms if such a license is made available to us. While we believe we have valid defenses to EcoFactor’s claims, the outcome of these legal claims cannot be predicted with certainty and any of these outcomes could result in an adverse effect on our business. Based on currently available information, we have determined a loss is not probable or reasonably estimable at this time.

On July 22, 2021, Causam Enterprises, Inc., or Causam, filed a lawsuit against us in U.S. District Court, Western District of Texas, alleging that Alarm.com’s smart thermostats infringe four U.S. patents owned by Causam. Causam is seeking preliminary and permanent injunctions, enhanced damages and attorneys’ fees. We have not yet responded to the complaint. On September 3, 2021, the court issued an order staying the lawsuit until the ITC investigation described below is finally resolved.

On July 28, 2021, Causam filed a complaint with the ITC naming Alarm.com Incorporated, Alarm.com Holdings, Inc., and EnergyHub, Inc., among others, as proposed respondents. The complaint alleges infringement of the same four patents Causam asserted in district court. Causam is seeking a permanent limited exclusion order and permanent cease and desist order. On August 27, 2021, the ITC instituted an investigation into Causam’s allegations naming Alarm.com Incorporated, Alarm.com Holdings, Inc., EnergyHub Inc. and others as respondents. We answered the complaint on October 4, 2021. Among other things, we asserted defenses based on non-infringement and invalidity of the patents in question. An evidentiary hearing in the investigation was held from June 28, 2022 through July 1, 2022. On February 16, 2023, the ITC issued a final decision in favor of Alarm.com and EnergyHub. Causam filed an appeal of the ITC decision on April 14, 2023. Causam did not appeal the ITC decision with respect to Alarm.com and EnergyHub.

Should Causam prevail in its district court lawsuit we could be required to pay damages and/or a reasonable royalty for sales of our solution, we could be enjoined from making, using and selling our solution if a license or other right to continue selling such elements is not made available to us, and we could be required to pay ongoing royalties and comply with unfavorable terms if such a license is made available to us. While we believe we have valid defenses to Causam’s claims, the outcome of these legal claims cannot be predicted with certainty, and any of these outcomes could result in an adverse effect on our business. Based on currently available information, we have determined a loss is not probable or reasonably estimable at this time.

In addition to the matters described above, we may be required to provide indemnification to certain of our service provider partners for certain claims regarding our solutions. For example, we incur costs associated with the indemnification of our service provider Central Security Group – Nationwide, Inc. (d/b/a Alert 360), or CSG, in an ongoing patent litigation. In 2018, Ubiquitous Connectivity, LP, or Ubiquitous, brought suit against CSG in U.S. District Court, Northern District of Oklahoma, alleging infringement of two U.S. patents. The case was stayed by agreement of the parties for several years while the patents in suit were challenged before the PTAB. In January 2021, the PTAB deemed 42 out of 46 claims of the two asserted patents unpatentable. Ubiquitous appealed a portion of the PTAB’s findings to the United States Court of Appeals for the Federal Circuit. The Federal Circuit affirmed the PTAB’s ruling on August 8, 2023. As a result, only four patent claims remain at issue and the Northern District of Oklahoma case is no longer stayed. The case is currently in the discovery and claim construction phase. A claim construction hearing is scheduled for December 12, 2024. A hearing on dispositive motions, including for summary judgment, is scheduled for April 15, 2026. A trial is scheduled for July 6, 2026.

Should Ubiquitous prevail on its infringement claims, we could be required to indemnify CSG for damages in the form of a reasonable royalty or of Ubiquitous’s lost profits. CSG could be enjoined from making, using, and selling our solution if a license or other right to continue selling our technology is not made available or if we are unable to design around such patents, and we could be required to pay ongoing royalties and comply with unfavorable terms if such a license is made available to us. The outcome of these legal claims cannot be predicted with certainty. Based on currently available information, we have determined a loss is not probable or reasonably estimable at this time.

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We may also be a party to litigation and subject to claims incident to the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business.

Other than the preceding matters, we are not a party to any lawsuit or proceeding that, in the opinion of management, is reasonably possible or probable of having a material adverse effect on our financial position, results of operations or cash flows. We reserve for contingent liabilities based on ASC 450, "Contingencies," when it is determined that a liability, inclusive of defense costs, is probable and reasonably estimable. Litigation is subject to many factors that are difficult to predict, so there can be no assurance that, in the event of a material unfavorable result in one or more claims, we will not incur material costs.

Stock Repurchase Programs

On February 15, 2023, our board of directors authorized a stock repurchase program, effective February 23, 2023, under which we were authorized to purchase up to an aggregate of $100.0 million of our outstanding common stock during the two-year period ending February 23, 2025.

On May 24, 2024, our board of directors authorized the repurchase of our common stock in connection with the issuance of the 2029 Notes, the cancellation of the balance under the stock repurchase program ending February 23, 2025 and also authorized a stock repurchase program, effective May 31, 2024, under which we are authorized to purchase up to an aggregate of $100.0 million of our outstanding common stock during the two-year period ending May 31, 2026. The full repurchase balance for this program of $100.0 million was available as of June 30, 2024. During the three and six months ended June 30, 2024, 1,117,068 shares were repurchased for $75.0 million under our stock repurchase program authorized in connection with the issuance of the 2029 Notes. During the three and six months ended June 30, 2023, 134,255 shares of our common stock were repurchased for $6.7 million under our stock repurchase program that was subsequently cancelled effective May 31, 2024.

As of January 1, 2023, we are subject to a 1.0% excise tax on the value of net corporate stock repurchases under the Inflation Reduction Act of 2022. When applicable, the excise tax will be included as part of the cost basis of shares acquired and is presented within stockholders’ equity in the condensed consolidated balance sheets.

Shares Withheld

As permitted under the terms of the 2015 Equity Incentive Plan, in 2021 the Compensation Committee authorized the withholding of shares of common stock in connection with the vesting of restricted stock unit awards issued to employees to satisfy applicable tax withholding requirements. These withheld shares are not issued or considered common stock repurchases under our stock repurchase program. We paid $3.4 million of tax withholdings related to vesting of restricted stock units during the three and six months ended June 30, 2024. No tax withholdings related to the vesting of restricted stock units were paid during the three and six months ended June 30, 2023. We also utilized the sell-to-cover method in which shares of our restricted stock unit awards were sold into the market on behalf of the employee upon vesting to cover tax withholding liabilities. We may utilize either the withholding method or sell-to-cover method in the future.

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Stock-based compensation expense is included in the following line items in the condensed consolidated statements of operations (in thousands):

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Cost of hardware and other revenue			$	1					$	—					$	2					$	—
Sales and marketing			724						892						1,479						1,924
General and administrative			3,303						3,468						6,484						6,613
Research and development			7,185						7,571						14,516						16,080
Total stock-based compensation expense			$	11,213					$	11,931					$	22,481					$	24,617

The following table summarizes the components of non-cash stock-based compensation expense (in thousands):

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Stock options			$	1,146					$	1,071					$	2,133					$	1,983
Restricted stock units			10,017						10,819						20,247						22,541
Employee stock purchase plan			50						41						101						93
Total stock-based compensation expense			$	11,213					$	11,931					$	22,481					$	24,617
Tax windfall benefit / (shortfall) from stock-based awards			$	645					$	(669)					$	1,131					$	(691)

We granted 93,500 and 99,500 stock options pursuant to our 2015 Equity Incentive Plan during the three and six months ended June 30, 2024, respectively, as compared to 172,000 and 193,400 stock options for the same periods in the prior year. There were 14,467 and 142,993 stock options exercised during the three and six months ended June 30, 2024, respectively, as compared to 12,184 and 83,135 stock options for the same periods in the prior year. There was an aggregate of 241,728 and 329,878 restricted stock units without performance conditions granted to certain of our employees and directors during the three and six months ended June 30, 2024, respectively, as compared to an aggregate of 103,522 and 186,397 restricted stock units without performance conditions for the same periods in the prior year. There were no restricted stock units with performance conditions granted to our employees during the three and six months ended June 30, 2024 and 2023. There were 209,087 and 290,783 restricted stock units without performance conditions that vested during the three and six months ended June 30, 2024, respectively, as compared to 226,865 and 393,950 restricted stock units without performance conditions vested during the same periods in the prior year. There were 33,395 restricted stock units with performance conditions that vested during each of the three and six months ended June 30, 2024, as compared to 30,406 and 39,406 restricted stock units with performance conditions, respectively, vested for the same periods in the prior year.

---

Basic and Diluted Earnings Per Share

The components of basic and diluted earnings per share are as follows (in thousands, except share and per share amounts):

			Three Months Ended June 30,												Six Months Ended June 30,
Numerator:			2024						2023						2024						2023
Net income			$	32,520					$	15,611					$	55,924					$	29,818
Net loss attributable to redeemable noncontrolling interests			991						188						1,182						397
Net income attributable to common stockholders - basic (A)			33,511						15,799						57,106						30,215
Add back interest expense, net of tax, attributable to convertible senior notes			1,473						591						2,067						1,181
Net income attributable to common stockholders - diluted (B)			$	34,984					$	16,390					$	59,173					$	31,396
Denominator:
Weighted average common shares outstanding — basic (C)			49,832,503						49,859,615						49,897,884						49,723,012
Dilutive effect of convertible senior notes, stock options and restricted stock units			6,847,852						4,586,660						5,970,163						4,700,035
Weighted average common shares outstanding — diluted (D)			56,680,355						54,446,275						55,868,047						54,423,047
Net income per share:
Basic (A/C)			$	0.67					$	0.32					$	1.14					$	0.61
Diluted (B/D)			$	0.62					$	0.30					$	1.06					$	0.58

The following securities have been excluded from the calculation of diluted weighted average common shares outstanding as the inclusion of these securities would have an anti-dilutive effect:

			Three Months Ended June 30,												Six Months Ended June 30,
			2024						2023						2024						2023
Stock options			422,524						602,135						422,524						602,135
Restricted stock units			7,200						253,214						1,700						152,817

Our redeemable noncontrolling interests are related to our 86% equity ownership interests in OpenEye, and our 85% equity ownership interest in Noonlight.

We use the treasury stock method when calculating the dilutive impact of the stock options and restricted stock units on net income per share. We use the if-converted method when calculating the dilutive impact of the 2026 Notes and 2029 Notes on net income per share. As a result, we included 3,396,950 shares related to the 2026 Notes within the weighted average shares outstanding when calculating the diluted net income per share for each of the three and six months ended June 30, 2024 and 2023. We included 1,951,484 and 975,742 shares related to the 2029 Notes within the weighted average shares outstanding when calculating the diluted net income per share for each of the three and six months ended June 30, 2024, respectively. Additionally, we included $1.5 million and $2.1 million of interest expense and debt issuance cost amortization, net of tax, within the numerator of the diluted net income per share for the three and six months ended June 30, 2024, respectively, as compared to $0.6 million and $1.2 million for the same periods in the prior year.

The denominator for diluted net income per share does not include any effect from the capped call transactions we entered into concurrently with the issuance of the 2029 Notes, as this effect would be anti-dilutive. In the event of conversion of the 2029 Notes, shares delivered to us under the capped call will offset the dilutive effect of the shares that we would issue under the 2029 Notes. See Note 12 for further details on our 2029 Notes and the related capped call transactions.

---

During each of the three and six months ended June 30, 2024, our 10 largest revenue service provider partners or distributors accounted for 47% of our consolidated revenue as compared to 50% for the same periods in the prior year. One of our service provider partners within the Alarm.com segment individually represented greater than 15% but not more than 20% of our revenue for each of the three and six months ended June 30, 2024 and 2023.

One service provider partner in the Alarm.com segment represented more than 10% of accounts receivable as of June 30, 2024 and December 31, 2023.

For purposes of interim reporting, our annual effective income tax rate is estimated in accordance with ASC 740-270, "Interim Reporting." This rate is applied to the pre-tax book income of the entities expected to be benefited during the year. Discrete items that impact the tax provision are recorded in the period incurred.

For the three and six months ended June 30, 2024, we recorded a provision for income taxes of $0.9 million and $3.6 million, respectively, resulting in an effective income tax rate of 2.6% and 6.1% for those periods. For the three and six months ended June 30, 2023, we recorded a provision for income taxes of $6.5 million and $5.3 million, respectively, resulting in an effective income tax rate of 29.4% and 15.1% for those periods. For the three months ended June 30, 2024, our effective tax rate was below the 21.0% statutory rate primarily due to a favorable true-up adjustment of our 2023 income tax provision estimate associated with research and development tax credits, 2024 research and development tax credits claimed, the foreign derived intangible income deduction and tax windfall benefits from employee stock-based compensation. For the six months ended June 30, 2024, our effective tax rate was below the 21.0% statutory rate primarily due to a favorable true-up adjustment of our 2023 income tax provision estimate associated with research and development tax credits, 2024 research and development tax credits claimed, the foreign derived intangible income deduction, the release of an unrecognized tax benefit liability due to the closure of the 2018 and 2019 Internal Revenue Service federal income tax examination and tax windfall benefits from employee stock-based compensation, partially offset by the impact of state taxes, federal estimated tax payment interest expense and other nondeductible expenses. For the three months ended June 30, 2023, our effective tax rate was above the 21.0% statutory rate primarily due to an unfavorable true-up adjustment of our 2022 income tax provision estimate associated with research and development tax credits, an increase in foreign withholding taxes and a stock-based compensation tax shortfall. For the six months ended June 30, 2023, our effective tax rate was below the 21.0% statutory rate primarily due to research and development tax credits claimed and the foreign derived intangible income deduction, partially offset by an unfavorable true-up adjustment of our 2022 income tax provision estimate associated with research and development tax credits, the impact of state taxes, foreign withholding taxes and a stock-based compensation tax shortfall.

We recognize a valuation allowance if, based on the weight of available evidence, both positive and negative, it is more likely than not that some portion, or all, of net deferred tax assets will not be realized. Our valuation allowance for state research and development tax credit carryforwards and net deferred tax assets of our EBS subsidiary was $3.8 million as of December 31, 2023 and June 30, 2024.

We apply guidance for uncertainty in income taxes that requires the application of a more likely than not threshold to the recognition and de-recognition of uncertain tax positions. If the recognition threshold is met, this guidance permits us to recognize a tax benefit measured at the largest amount of the tax benefit that, in our judgment, is more likely than not to be realized upon settlement. We recorded a net decrease to the unrecognized tax benefits liability of $0.4 million primarily due to the closure of the 2018 and 2019 Internal Revenue Service federal income tax return examination, partially offset by a liability for research and development tax credits claimed during the six months ended June 30, 2024. We recorded a net increase to the unrecognized tax benefits liability of $0.8 million primarily for research and development tax credits claimed during the six months ended June 30, 2023.

Our condensed consolidated balance sheets included an accrual for total interest expense related to unrecognized tax benefits of $0.8 million and $0.7 million as of December 31, 2023 and June 30, 2024, respectively. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense.

Our tax returns are subject to on-going review and examination by various tax authorities. Tax authorities may not agree with the treatment of items reported in our tax returns, and therefore the outcome of tax reviews and examinations can be unpredictable. On October 13, 2021, the Internal Revenue Service commenced an examination of our federal income tax return for 2018 and on August 12, 2022, the Internal Revenue Service expanded the examination to include our federal income tax return for 2019. On January 25, 2024, the Internal Revenue Service notified us that the income tax examination of our 2018 and 2019 federal income tax returns has been closed. As a result, we paid $0.6 million in additional federal taxes, including interest, during the three months ended June 30, 2024, and recognized a net income tax benefit of $1.7 million during the three months ended March 31, 2024.

---

As of June 30, 2024, we did not have material undistributed foreign earnings. We have not recorded a deferred tax liability on the undistributed earnings from our foreign subsidiaries, as such earnings are considered to be indefinitely reinvested.

In August 2022, the Inflation Reduction Act of 2022 was enacted in the United States which, among other provisions, includes a minimum 15.0% tax on companies that have a three-year average annual adjusted financial statement income of more than $1.0 billion and a 1.0% excise tax on the value of net corporate stock repurchases. Both provisions became effective on January 1, 2023 and the provisions did not have a material impact on our financial condition or results of operations for the periods presented.

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

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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.

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v3.24.2.u1

Cover Page - shares	6 Months Ended
	Jun. 30, 2024	Aug. 01, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-37461
Entity Registrant Name	ALARM.COM HOLDINGS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-4247032
Entity Address, Address Line One	8281 Greensboro Drive
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Tysons
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	22102
City Area Code	877
Local Phone Number	389-4033
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	ALRM
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		49,248,750
Entity Central Index Key	0001459200
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus (Q1,Q2,Q3,FY)	Q2
Amendment Flag	false

v3.24.2.u1

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue:
Total revenue		$ 233,807	$ 223,875	$ 457,090	$ 433,591
Cost of revenue:
Total cost of revenue	[1]	81,282	86,367	157,797	162,539
Operating expenses:
Sales and marketing		27,837	23,772	53,291	50,417
General and administrative		26,104	28,799	55,400	57,298
Research and development		65,730	60,918	131,686	122,826
Amortization and depreciation		7,080	7,860	14,417	15,533
Total operating expenses		126,751	121,349	254,794	246,074
Operating income		25,774	16,159	44,499	24,978
Interest expense		(1,968)	(827)	(2,764)	(1,695)
Interest income		10,856	7,417	19,396	12,599
Other expense, net		(1,258)	(631)	(1,576)	(779)
Income before income taxes		33,404	22,118	59,555	35,103
Provision for income taxes		884	6,507	3,631	5,285
Net income		32,520	15,611	55,924	29,818
Net loss attributable to redeemable noncontrolling interests		991	188	1,182	397
Net income attributable to common stockholders		$ 33,511	$ 15,799	$ 57,106	$ 30,215
Net income per share:
Basic (in dollars per share)		$ 0.67	$ 0.32	$ 1.14	$ 0.61
Diluted (in dollars per share)		$ 0.62	$ 0.30	$ 1.06	$ 0.58
Weighted average common shares outstanding:
Basic (in shares)		49,832,503	49,859,615	49,897,884	49,723,012
Diluted (in shares)		56,680,355	54,446,275	55,868,047	54,423,047
SaaS and license revenue
Revenue:
Total revenue		$ 155,927	$ 140,432	$ 306,271	$ 275,826
Cost of revenue:
Total cost of revenue	[1]	22,094	21,576	42,522	41,159
Hardware and other revenue
Revenue:
Total revenue		77,880	83,443	150,819	157,765
Cost of revenue:
Total cost of revenue	[1]	$ 59,188	$ 64,791	$ 115,275	$ 121,380
[1] Exclusive of amortization and depreciation shown in operating expenses below.

v3.24.2.u1

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 32,520	$ 15,611	$ 55,924	$ 29,818
Other comprehensive (loss) / income
Foreign currency translation adjustment	(156)	658	(303)	828
Total other comprehensive (loss) / income	(156)	658	(303)	828
Comprehensive income	32,364	16,269	55,621	30,646
Comprehensive loss attributable to redeemable noncontrolling interests	991	188	1,182	397
Comprehensive income attributable to common stockholders	$ 33,355	$ 16,457	$ 56,803	$ 31,043

v3.24.2.u1

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 1,104,539	$ 696,983
Accounts receivable, net of allowance for credit losses of $3,766 and $3,864, and net of allowance for product returns of $2,608 and $2,279 as of June 30, 2024 and December 31, 2023, respectively	123,551	130,626
Inventory	79,582	96,140
Other current assets, net	35,074	33,031
Total current assets	1,342,746	956,780
Property and equipment, net	54,784	54,164
Intangible assets, net	69,928	78,564
Goodwill	154,356	154,498
Deferred tax assets	172,421	131,815
Operating lease right-of-use assets	22,025	24,242
Other assets, net of allowance for credit losses of $1 and $5 as of June 30, 2024 and December 31, 2023, respectively	38,987	39,500
Total assets	1,855,247	1,439,563
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	96,075	124,475
Accrued compensation	24,920	28,626
Deferred revenue	12,181	10,193
Operating lease liabilities	12,039	12,043
Total current liabilities	145,215	175,337
Deferred revenue	13,726	12,692
Convertible senior notes, net	980,492	493,515
Operating lease liabilities	18,098	20,468
Other liabilities	14,314	12,697
Total liabilities	1,171,845	714,709
Commitments and contingencies (Note 12)
Redeemable noncontrolling interests	37,933	36,308
Stockholders’ equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding as of June 30, 2024 and December 31, 2023	0	0
Common stock, $0.01 par value, 300,000,000 shares authorized; 52,321,569 and 51,888,838 shares issued; and 49,183,838 and 49,868,175 shares outstanding as of June 30, 2024 and December 31, 2023, respectively	523	519
Additional paid-in capital	506,850	531,734
Treasury stock, at cost; 3,137,731 and 2,020,663 shares as of June 30, 2024 and December 31, 2023, respectively	(186,291)	(111,291)
Accumulated other comprehensive income	1,095	1,398
Retained earnings	323,292	266,186
Total stockholders’ equity	645,469	688,546
Total liabilities, redeemable noncontrolling interests and stockholders’ equity	$ 1,855,247	$ 1,439,563

v3.24.2.u1

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit losses	$ 3,766	$ 3,864
Allowance for product returns	2,608	2,279
Other assets, allowance for credit loss	$ 1	$ 5
Preferred stock, par value ( in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value ( in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	52,321,569	51,888,838
Common stock, shares outstanding (in shares)	49,183,838	49,868,175
Treasury stock, shares repurchased (in shares)	3,137,731	2,020,663

v3.24.2.u1

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Cash flows from operating activities:
Net income	$ 32,520	$ 15,611	$ 55,924	$ 29,818
Adjustments to reconcile net income to net cash flows from operating activities:
Provision for credit losses on accounts receivable	100	100	357	616
Reserve for product returns			2,022	2,498
Provision for credit losses on notes receivable			3,996	0
Inventory write-down			0	1,181	$ 1,400
Amortization on patents and tooling			417	637
Amortization and depreciation	7,080	7,860	14,417	15,533
Amortization of debt issuance costs			1,811	1,570
Amortization of operating leases			5,953	5,621
Deferred income taxes			(24,992)	(36,870)
Change in fair value of contingent liability			44	27
Stock-based compensation			22,481	24,617
Loss from investment in unconsolidated entity			23	0
Changes in operating assets and liabilities (net of business acquisitions):
Accounts receivable			4,668	(583)
Inventory			16,484	(523)
Other current and non-current assets			601	432
Accounts payable, accrued expenses and other current liabilities			(30,437)	(4,696)
Deferred revenue			3,022	3,105
Operating lease liabilities			(6,751)	(6,796)
Other liabilities			2,776	(2,920)
Cash flows from operating activities			72,816	33,267
Cash flows used in investing activities:
Business acquisition, net of cash acquired			0	(9,696)
Additions to property and equipment			(5,058)	(3,393)
Issuances of notes receivable			(500)	(300)
Receipt of payments on notes receivable			26	28
Capitalized software development costs			(632)	(115)
Purchase of investment in unconsolidated entities			(2,950)	(200)
Purchases of other intangible assets			(45)	(5,915)
Cash flows used in investing activities			(9,159)	(19,591)
Cash flows from / (used in) financing activities:
Proceeds from issuance of convertible senior notes			500,000	0
Payments of debt issuance costs			(13,946)	0
Purchases of capped calls related to convertible senior notes			(63,050)	0
Payments of deferred consideration for acquisitions			(4,569)	(1,655)
Purchases of treasury stock, including transaction costs			(75,000)	(6,726)
Payments of tax withholdings related to vesting of restricted stock units	(3,400)	0	(3,401)	0
Purchases of redeemable noncontrolling interest			0	(832)
Payments of acquired debt			0	(389)
Issuances of common stock from equity-based plans			6,734	1,513
Cash flows from / (used in) financing activities			346,768	(8,089)
Effect of exchange rate changes on cash, cash equivalents and restricted cash			(133)	(124)
Net increase in cash, cash equivalents and restricted cash			410,292	5,463
Cash, cash equivalents and restricted cash at beginning of the period			701,079	622,879	622,879
Cash, cash equivalents and restricted cash at end of the period	1,111,371	628,342	1,111,371	628,342	701,079
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	1,104,539	627,041	1,104,539	627,041	696,983
Restricted cash included in other current assets and other assets	6,832	1,301	6,832	1,301
Total cash, cash equivalents and restricted cash	$ 1,111,371	$ 628,342	$ 1,111,371	$ 628,342	$ 701,079

v3.24.2.u1

Condensed Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Other Comprehensive Income / (Loss)	Retained Earnings
Beginning balance at Dec. 31, 2022	$ 23,988
Increase (Decrease) in Temporary Equity [Roll Forward]
Accretion adjustments of redeemable noncontrolling interest to redemption value	2,061
Net income / (loss) attributable to common stockholders	(209)
Ending balance at Mar. 31, 2023	25,840
Beginning balance (in shares) at Dec. 31, 2022		50,985,000
Beginning balance at Dec. 31, 2022	598,859	$ 510	$ 497,199	$ (83,993)	$ 0	$ 185,143
Beginning balance (in shares) at Dec. 31, 2022				1,533,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued in connection with equity-based plans (in shares)		270,000
Common stock issued in connection with equity-based plans	1,311	$ 3	1,308
Stock-based compensation expense	12,686		12,686
Accretion adjustments of redeemable noncontrolling interest to redemption value	(2,061)		(2,061)
Net income / (loss) attributable to common stockholders	14,416					14,416
Other comprehensive (loss) income	170				170
Ending balance (in shares) at Mar. 31, 2023		51,255,000
Ending balance at Mar. 31, 2023	625,381	$ 513	509,132	$ (83,993)	170	199,559
Ending balance (in shares) at Mar. 31, 2023				1,533,000
Beginning balance at Dec. 31, 2022	23,988
Ending balance at Jun. 30, 2023	27,868
Beginning balance (in shares) at Dec. 31, 2022		50,985,000
Beginning balance at Dec. 31, 2022	598,859	$ 510	497,199	$ (83,993)	0	185,143
Beginning balance (in shares) at Dec. 31, 2022				1,533,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Purchases of treasury stock (in shares)				134,255
Purchase of treasury stock				$ (6,700)
Other comprehensive (loss) income	828
Ending balance (in shares) at Jun. 30, 2023		51,525,000
Ending balance at Jun. 30, 2023	644,231	$ 515	518,249	$ (90,719)	828	215,358
Ending balance (in shares) at Jun. 30, 2023				1,667,000
Beginning balance at Mar. 31, 2023	25,840
Increase (Decrease) in Temporary Equity [Roll Forward]
Purchases of redeemable noncontrolling interest	(1,238)
Accretion adjustments of redeemable noncontrolling interest to redemption value	3,454
Net income / (loss) attributable to common stockholders	(188)
Ending balance at Jun. 30, 2023	27,868
Beginning balance (in shares) at Mar. 31, 2023		51,255,000
Beginning balance at Mar. 31, 2023	625,381	$ 513	509,132	$ (83,993)	170	199,559
Beginning balance (in shares) at Mar. 31, 2023				1,533,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued in connection with equity-based plans (in shares)		270,000
Common stock issued in connection with equity-based plans	202	$ 2	200
Purchases of treasury stock (in shares)				134,255
Purchase of treasury stock	(6,726)			$ (6,726)
Stock-based compensation expense	11,965		11,965
Purchases of redeemable noncontrolling interest	406		406
Accretion adjustments of redeemable noncontrolling interest to redemption value	(3,454)		(3,454)
Net income / (loss) attributable to common stockholders	15,799					15,799
Other comprehensive (loss) income	658				658
Ending balance (in shares) at Jun. 30, 2023		51,525,000
Ending balance at Jun. 30, 2023	644,231	$ 515	518,249	$ (90,719)	828	215,358
Ending balance (in shares) at Jun. 30, 2023				1,667,000
Beginning balance at Dec. 31, 2023	36,308
Increase (Decrease) in Temporary Equity [Roll Forward]
Accretion adjustments of redeemable noncontrolling interest to redemption value	1,595
Net income / (loss) attributable to common stockholders	(191)
Ending balance at Mar. 31, 2024	$ 37,712
Beginning balance (in shares) at Dec. 31, 2023	51,888,838	51,889,000
Beginning balance at Dec. 31, 2023	$ 688,546	$ 519	531,734	$ (111,291)	1,398	266,186
Beginning balance (in shares) at Dec. 31, 2023	2,020,663			2,021,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued in connection with equity-based plans (in shares)		224,000
Common stock issued in connection with equity-based plans	$ 6,356	$ 2	6,354
Stock-based compensation expense	11,339		11,339
Accretion adjustments of redeemable noncontrolling interest to redemption value	(1,595)		(1,595)
Net income / (loss) attributable to common stockholders	23,595					23,595
Other comprehensive (loss) income	(147)				(147)
Ending balance (in shares) at Mar. 31, 2024		52,113,000
Ending balance at Mar. 31, 2024	728,094	$ 521	547,832	$ (111,291)	1,251	289,781
Ending balance (in shares) at Mar. 31, 2024				2,021,000
Beginning balance at Dec. 31, 2023	36,308
Ending balance at Jun. 30, 2024	$ 37,933
Beginning balance (in shares) at Dec. 31, 2023	51,888,838	51,889,000
Beginning balance at Dec. 31, 2023	$ 688,546	$ 519	531,734	$ (111,291)	1,398	266,186
Beginning balance (in shares) at Dec. 31, 2023	2,020,663			2,021,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Purchases of treasury stock (in shares)				1,117,068
Purchase of treasury stock				$ (75,000)
Other comprehensive (loss) income	$ (303)
Ending balance (in shares) at Jun. 30, 2024	52,321,569	52,322,000
Ending balance at Jun. 30, 2024	$ 645,469	$ 523	506,850	$ (186,291)	1,095	323,292
Ending balance (in shares) at Jun. 30, 2024	3,137,731			3,138,000
Beginning balance at Mar. 31, 2024	$ 37,712
Increase (Decrease) in Temporary Equity [Roll Forward]
Accretion adjustments of redeemable noncontrolling interest to redemption value	1,212
Net income / (loss) attributable to common stockholders	(991)
Ending balance at Jun. 30, 2024	37,933
Beginning balance (in shares) at Mar. 31, 2024		52,113,000
Beginning balance at Mar. 31, 2024	728,094	$ 521	547,832	$ (111,291)	1,251	289,781
Beginning balance (in shares) at Mar. 31, 2024				2,021,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued in connection with equity-based plans (in shares)		209,000
Common stock issued in connection with equity-based plans	378	$ 2	376
Purchases of treasury stock (in shares)				1,117,068
Purchase of treasury stock	(75,559)		(559)	$ (75,000)
Tax withholding related to vesting of restricted stock units	(3,401)		(3,401)
Stock-based compensation expense	11,250		11,250
Accretion adjustments of redeemable noncontrolling interest to redemption value	(1,212)		(1,212)
Purchases of capped calls related to convertible senior notes, net of tax	(47,436)		(47,436)
Net income / (loss) attributable to common stockholders	33,511					33,511
Other comprehensive (loss) income	$ (156)				(156)
Ending balance (in shares) at Jun. 30, 2024	52,321,569	52,322,000
Ending balance at Jun. 30, 2024	$ 645,469	$ 523	$ 506,850	$ (186,291)	$ 1,095	$ 323,292
Ending balance (in shares) at Jun. 30, 2024	3,137,731			3,138,000

v3.24.2.u1

Organization	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Alarm.com Holdings, Inc. (referred to herein as Alarm.com, the Company, or we) is the leading platform for the intelligently connected property. Our cloud-based platform offers an expansive suite of Internet of Things, or IoT, solutions addressing opportunities in the residential, multi-family, small business and enterprise commercial markets. Alarm.com’s solutions include security, video and video analytics, energy management, access control, electric utility grid management, indoor gunshot detection, water management, health and wellness and data-rich emergency response. Our solutions are delivered through an established network of trusted service provider partners, who are experts at selling, installing and supporting our solutions. We derive revenue from the sale of our cloud-based Software-as-a-Service, or SaaS, services, license fees, software, hardware, activation fees and other revenue. Our fiscal year ends on December 31.

v3.24.2.u1

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements include our accounts and those of our majority-owned and controlled subsidiaries after elimination of intercompany accounts and transactions. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP, for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission, or SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual financial statements. They should be read together with our audited consolidated financial statements and related notes thereto for the year ended December 31, 2023 included in our Annual Report on Form 10-K filed with the SEC on February 22, 2024, or the Annual Report. The condensed consolidated balance sheet as of December 31, 2023 was derived from our audited financial statements but does not include all disclosures required by GAAP for annual financial statements. In the opinion of management, these condensed consolidated financial statements include all normal recurring adjustments necessary for a fair statement of the results of operations, financial position and cash flows for the periods presented. However, the global economy, credit markets and financial markets have and may continue to experience significant volatility as a result of significant worldwide events, including public health crises, and geopolitical upheaval, such as Russia’s incursion into Ukraine and the conflict between Israel and regional adversaries, disruptions to global supply chains, rising interest rates, risk of recession and inflation (collectively, the Macroeconomic Conditions). These Macroeconomic Conditions have and may continue to create supply chain disruptions, inventory disruptions, and fluctuations in economic growth, including fluctuations in employment rates, inflation, energy prices and consumer sentiment. It remains difficult to assess or predict the ultimate duration and economic impact of the Macroeconomic Conditions. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results that can be expected for our entire fiscal year ending December 31, 2024, which is increasingly true in periods of extreme uncertainty, such as the uncertainty caused by the Macroeconomic Conditions. Prolonged uncertainties could cause further economic slowdown or cause other unpredictable events, each of which could adversely affect our business, results of operations or financial condition. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. As of the date of issuance of these financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, assumptions and judgments or revise the carrying value of our assets or liabilities. However, our estimates, judgments and assumptions are continually evaluated based on available information and experience and may change as new events occur and additional information is obtained. Because of the use of estimates inherent in the financial reporting process and in light of the continuing uncertainty arising from the Macroeconomic Conditions, actual results could differ from those estimates and any such differences may be material. Estimates are used when accounting for revenue recognition, allowances for credit losses, allowance for hardware returns, estimates of obsolete inventory, long-term incentive compensation, the lease term and incremental borrowing rates for leases, stock-based compensation, income taxes, legal reserves, goodwill, intangible assets and other long-lived assets. Significant Accounting Policies Other than those disclosed herein, there have been no other material changes to our significant accounting policies during the three and six months ended June 30, 2024 from those disclosed in our Annual Report. Capped Call Transactions On May 31, 2024, we issued $500.0 million aggregate principal amount of 2.25% convertible senior notes due June 1, 2029 in a private placement to qualified institutional buyers, or the 2029 Notes. In connection with the offering of the 2029 Notes, we entered into privately negotiated capped call transactions with one of the initial purchasers and certain other financial institutions, at a cost of $63.1 million. The capped call transactions cover, subject to customary adjustments substantially similar to those applicable to the 2029 Notes, the number of shares of our common stock initially underlying the 2029 Notes. As the capped call options are both legally detachable and separately exercisable from the 2029 Notes, we account for the capped call options separately from the 2029 Notes. The capped call options are indexed to our own common stock and classified in stockholders’ equity. As such, the premiums paid for the capped call options were included as a net reduction to additional paid-in capital in the condensed consolidated balance sheets. The capped call transactions will not be remeasured as long as they continue to meet the conditions for equity classification. We elected to integrate the capped call options with the 2029 Notes for federal income tax purposes pursuant to applicable U.S. Treasury Regulations. Accordingly, the $63.1 million cost of the purchased capped calls will be deductible for income tax purposes. The original issue discount is accreted over the term of the 2029 Notes. Recent Accounting Pronouncements Adopted During the three and six months ended June 30, 2024, we did not adopt any new accounting pronouncements. Not Yet Adopted On November 27, 2023, the Financial Accounting Standards Board, or FASB, issued ASU 2023-07, "Segment Reporting (Topic 280),” which revises the disclosure requirements about a public entity’s reportable segments and a reportable segment’s expenses. This amendment requires a public entity to (i) disclose significant segment expense that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, (ii) disclose an amount for other segment items by reportable segment and a description of its composition and (iii) provide annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods. The amendment is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. This amendment is required to be applied retrospectively to all prior periods presented. We are currently assessing the impact this pronouncement will have on our consolidated financial statement disclosures. On December 14, 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740)," which requires additional annual disclosures regarding specific categories in the income tax rate reconciliation as well additional information for reconciling items that meet a quantitative threshold. This amendment also requires annual disclosures regarding the amount of income taxes paid, including income taxes paid disaggregated by (i) federal, state and foreign taxes as well as (ii) individual jurisdictions in which income taxes paid is equal to or greater than five percent of total income taxes paid. Additionally, this amendment requires annual disclosures for income from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign as well as income tax expense (or benefit) disaggregated between federal, state and foreign. The amendment is effective for annual periods beginning after December 15, 2024, and early adoption is permitted. This amendment should be applied on a prospective basis, but retrospective application is permitted. We are currently assessing the impact this pronouncement will have on our consolidated financial statement disclosures.

v3.24.2.u1

Revenue from Contracts with Customers	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	Revenue from Contracts with Customers Contract Assets The changes in our contract assets are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Beginning of period balance $ 10,466  $ 13,879  $ 9,099  $ 13,975  Commission costs and upfront payments to a customer capitalized in period 2,235  1,547  5,347  3,220  Amortization of contract assets (1,796) (1,845) (3,541) (3,614) End of period balance $ 10,905  $ 13,581  $ 10,905  $ 13,581  Contract Liabilities The changes in our contract liabilities are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Beginning of period balance $ 24,212  $ 20,231  $ 22,885  $ 18,332  Revenue deferred in period 7,549  5,719  13,973  11,659  Revenue recognized from amounts included in contract liabilities (5,854) (4,490) (10,951) (8,531) End of period balance $ 25,907  $ 21,460  $ 25,907  $ 21,460

v3.24.2.u1

Accounts Receivable, Net	6 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
Accounts Receivable, Net	Accounts Receivable, Net The components of accounts receivable, net are as follows (in thousands): June 30, 2024 December 31, 2023 Accounts receivable $ 129,925  $ 136,769  Allowance for credit losses (3,766) (3,864) Allowance for product returns (2,608) (2,279) Accounts receivable, net $ 123,551  $ 130,626  For the three and six months ended June 30, 2024, we recorded a provision for credit losses of $0.1 million and $0.4 million, respectively, as compared to $0.1 million and $0.6 million for the same periods in the prior year. For the three and six months ended June 30, 2024, we recorded a reserve for product returns of $0.9 million and $2.0 million in our hardware and other revenue, respectively, as compared to $1.3 million and $2.5 million for the same periods in the prior year. Historically, we have not experienced write-offs for uncollectible accounts or sales returns that have differed significantly from our estimates. Allowance for Credit Losses The allowance for credit losses is a valuation account that is deducted from the accounts receivable and notes receivable amortized cost basis (see Note 8) to present the net amount expected to be collected. We estimate the allowance balance by applying the loss-rate method using relevant available information from internal and external sources, including historical write-off activity, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for changes in economic conditions, such as changes in unemployment rates. We use projected economic conditions over a period no more than twelve months based on data from external sources. For periods beyond the twelve-month reasonable and supportable forecast period, we revert to historical loss information immediately. The allowance for credit losses is measured on a pooled basis when similar risk characteristics exist. When assessing whether to measure certain financial assets on a pooled basis, we considered various risk characteristics, including the financial asset type, size and the historical or expected credit loss pattern. Expected credit losses are estimated over the contractual term of the financial assets and we adjust the term for expected prepayments when appropriate. For the three and six months ended June 30, 2024, we recorded credit loss expense for accounts receivable and notes receivable of $0.2 million and $4.2 million, respectively, in general and administrative expense in our condensed consolidated statements of operations. For the three and six months ended June 30, 2023, we recorded credit loss expense for accounts receivable and notes receivable of less than $0.1 million and $0.5 million, respectively, in general and administrative expense in our condensed consolidated statements of operations. The contractual term excludes expected extensions, renewals and modifications because extension and renewal options are unconditionally cancelable by us. Write-offs of the amortized cost basis are recorded to the allowance for credit losses. Any subsequent recoveries of previously written off balances are recorded as a reduction to credit loss expense. Allowance for Credit Losses - Accounts Receivable We identified the following two portfolio segments for our accounts receivable: (i) outstanding accounts receivable balances within Alarm.com and certain subsidiaries and (ii) outstanding accounts receivable balances within all other subsidiaries. There were no changes to our portfolio segments for our accounts receivable during the three and six months ended June 30, 2024, and no changes to our policies or practices that influenced our estimate of expected credit losses for accounts receivable. Additionally, there were no significant changes in the amount of accounts receivable write-offs during the three and six months ended June 30, 2024, as compared to historical periods. The changes in our allowance for credit losses for accounts receivable are as follows (in thousands): Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Six Months Ended June 30, 2024 Six Months Ended June 30, 2023  Alarm.com and Certain Subsidiaries All Other Subsidiaries  Alarm.com and Certain Subsidiaries All Other Subsidiaries  Alarm.com and Certain Subsidiaries All Other Subsidiaries Alarm.com and Certain Subsidiaries All Other Subsidiaries Beginning of period balance $ (3,966) $ (88) $ (3,102) $ (97) $ (3,723) $ (141) $ (2,755) $ (80) (Provision for) / recovery of expected credit losses (101) (2) 19  (96) (388) 31  (487) (130) Write-offs 390  1  115  2  434  21  274  19  End of period balance $ (3,677) $ (89) $ (2,968) $ (191) $ (3,677) $ (89) $ (2,968) $ (191)

v3.24.2.u1

Inventory	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
Inventory	Inventory The components of inventory are as follows (in thousands): June 30, 2024 December 31, 2023 Raw materials $ 26,228  $ 30,452  Work-in-process 686  275  Finished goods 52,668  65,413  Total inventory $ 79,582  $ 96,140  Inventory values are net of a write-down of $1.4 million during the year ended December 31, 2023, which is reflected in cost of hardware and other revenue within our condensed consolidated statements of operations. The inventory write-down was the result of a lower of cost or net realizable value adjustment for finished goods.

v3.24.2.u1

Acquisitions	6 Months Ended
	Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Acquisitions	Acquisitions Asset Acquisition On April 21, 2023, Alarm.com Incorporated, one of our wholly-owned subsidiaries, acquired certain assets of Vintra, Inc., or Vintra. Substantially all of the acquired assets consisted of developed technology. We believe the acquisition of the developed technology will expand Alarm.com's learning program and accelerate deployment of advanced video analytics solutions for the Alarm.com and OpenEye platforms. In consideration for the purchase of the acquired assets, we paid $5.5 million in cash on April 21, 2023, after deducting $0.3 million related to the settlement of an outstanding loan issued to Vintra during March 2023 and $1.0 million related to an agreed holdback provision. The holdback is expected to be paid by the third quarter of 2024, subject to offset for any indemnification obligations. Additionally, we incurred $0.4 million in direct transaction costs related to legal fees during 2023 that were capitalized as a component of the consideration transferred. The $7.1 million purchase price consideration allocated to developed technology was recorded as an intangible asset at the time of the asset acquisition and is being amortized on a straight-line basis over an estimated useful life of five years. The remaining $0.1 million purchase price consideration was allocated to property and equipment. Acquisition of a Business - EBS On January 18, 2023, one of our wholly-owned subsidiaries acquired 100% of the issued and outstanding shares of capital stock of EBS Spółka z ograniczoną odpowiedzialnością, or EBS, an international producer of universal smart communicator devices, headquartered in Warsaw, Poland. We believe this acquisition will assist in the continued expansion of our international operations as well as benefit our supply chain operations. In consideration for the purchase of EBS, we paid $9.8 million in cash on January 18, 2023, after deducting $2.2 million related to agreed holdback provisions. An earn-out up to an additional $2.5 million is payable if certain performance targets are met, which was initially recorded at the acquisition date fair value of $2.0 million. The acquisition was accounted for as a business combination within our Alarm.com segment. The purchase price allocation was finalized during the third quarter of 2023. The overall impacts to our condensed consolidated financial statements were not considered material during the year of the acquisition.

v3.24.2.u1

Goodwill and Intangible Assets, Net	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Net	Goodwill and Intangible Assets, Net The changes in goodwill by reportable segment are outlined below (in thousands): Alarm.com Other Total Balance as of January 1, 2024 $ 154,498  $ —  $ 154,498  Foreign currency translation adjustment (142) —  (142) Balance as of June 30, 2024 $ 154,356  $ —  $ 154,356  The following table reflects changes in the net carrying amount of the components of intangible assets (in thousands): Customer Relationships Developed Technology Trade Name Capitalized Software Development Costs Other Total Balance as of January 1, 2024 $ 39,294  $ 37,174  $ 1,217  $ 879  $ —  $ 78,564  Intangible assets acquired —  —  —  —  45  45  Capitalized software development costs —  —  —  740  —  740  Amortization (4,837) (4,106) (414) (64) —  (9,421) Balance as of June 30, 2024 $ 34,457  $ 33,068  $ 803  $ 1,555  $ 45  $ 69,928  During the three and six months ended June 30, 2024, we paid less than $0.1 million for the purchase of domain names. We recorded $4.7 million and $9.4 million of amortization related to our intangible assets for the three and six months ended June 30, 2024, respectively, as compared to $4.7 million and $9.3 million for the same periods in the prior year. There were no impairments of long-lived intangible assets during the three and six months ended June 30, 2024 and 2023. During the six months ended June 30, 2024, $0.3 million of fully amortized developed technology intangible assets previously acquired were written-off in the Alarm.com segment as the technology was no longer in use. The following tables reflect the weighted average remaining life and carrying value of finite-lived intangible assets (in thousands, except weighted-average remaining life):   June 30, 2024   Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted- Average Remaining Life (in years) Customer relationships $ 128,280  $ (93,823) $ 34,457  5.7 Developed technology 69,731  (36,663) 33,068  4.3 Trade name 4,474  (3,671) 803  2.6 Capitalized software development costs 1,622  (67) 1,555  3.0 Other 45  —  45  5.0 Total intangible assets $ 204,152  $ (134,224) $ 69,928  4.9   December 31, 2023   Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted- Average Remaining Life (in years) Customer relationships $ 128,280  $ (88,986) $ 39,294  6.2 Developed technology 70,061  (32,887) 37,174  4.7 Trade name 4,474  (3,257) 1,217  2.6 Capitalized software development costs 882  (3) 879  3.3 Total intangible assets $ 203,697  $ (125,133) $ 78,564  5.4

v3.24.2.u1

Other Assets	6 Months Ended
	Jun. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets	Other Assets Loan to a Distribution Partner In December 2022, we amended a subordinated credit agreement with the affiliated entity of one of our distribution partners, or the Affiliate. The amended subordinated credit agreement with the Affiliate matures on June 18, 2027 and interest on the outstanding principal balance accrues at a rate of 12.0% per annum and is payable in kind. In March 2024, the Affiliate was in default on a loan arrangement with one of its third party secured lenders. Based on this information from the Affiliate, during the three months ended March 31, 2024, we recorded a credit loss expense of $4.0 million in general and administrative expense and recorded a reduction to our interest income of $0.5 million related to the reversal of payable in kind interest associated with the subordinated credit agreement. We placed this loan in nonaccrual status and recorded a full allowance for credit losses for this note receivable as of March 31, 2024. During the three months ended June 30, 2024, we wrote off the entire $4.0 million outstanding note receivable balance and reversed the previously recorded allowance for credit losses. As of December 31, 2023, $4.5 million of the notes receivable balance related to the subordinated credit agreement was included in other assets in our condensed consolidated balance sheet. For the three and six months ended June 30, 2024, we recognized $0.6 million and $1.3 million of revenue from the distribution partner associated with this loan, respectively, as compared to $0.8 million and $1.6 million for the same periods in the prior year. Loan to a Service Provider Partner In July 2020, we entered into a loan agreement with a service provider partner, under which we agreed to loan the service provider partner up to $2.5 million, collateralized by the assets of the service provider partner. Interest on the outstanding principal accrues at a rate per annum equal to 9.0% and monthly interest and principal payments began in April 2021. The maturity date of the loan is July 24, 2025. As of June 30, 2024 and December 31, 2023, $1.0 million of principal was outstanding from the service provider partner under the loan agreement. For the three and six months ended June 30, 2024 and 2023, we recognized less than $0.1 million and $0.1 million, respectively, of revenue from the service provider partner associated with this loan. Loan to a Technology Partner In June 2022, we entered into a convertible promissory note with a technology partner, under which we agreed to loan the technology partner $1.5 million. Interest on the outstanding principal accrues at a rate per annum equal to 6.5%, starting one year from the effective date of the loan. Interest and principal payments are due on the maturity date of the loan, which is June 27, 2029, unless the loan is converted prior to the maturity date, which may occur upon a qualified financing event, as defined in the convertible promissory note, upon a sale of the technology partner or upon our election on the maturity date of the loan. As of June 30, 2024 and December 31, 2023, $1.5 million of principal was outstanding from the technology partner under the convertible promissory note. For the three and six months ended June 30, 2024 and 2023, we did not record any revenue from the technology partner associated with this convertible promissory note. Investment in a Hardware Supplier In October 2018, we entered into a subordinate convertible promissory note with one of our hardware suppliers. In July 2019, we converted the outstanding notes receivable balance of $5.6 million into 9,520,832 shares of Series B preferred stock in the hardware supplier. We concluded that the $5.6 million equity investment, which is included in the Alarm.com segment, does not meet the criteria for consolidation and will be accounted for using the measurement alternative. Under the alternative, we measure investments without readily determinable fair values at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments. As of June 30, 2024 and December 31, 2023, our investment in the hardware supplier was $5.6 million. Investments in Technology Partners In February 2021, we paid $5.0 million in cash to purchase 1,000,000 shares of Series B-2 Preferred Stock from a technology partner as part of a financing round that included other investors. The $5.0 million equity investment, which is included in the Alarm.com segment, does not meet the criteria for consolidation and is accounted for using the measurement alternative. Under the measurement alternative, we measure investments without readily determinable fair values at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments. As of June 30, 2024 and December 31, 2023, our investment in the technology partner was $5.7 million. In December 2022, we paid $5.1 million in cash to another technology partner to purchase 4,231,717 shares of its Series A Preferred Stock. The $5.1 million equity investment, which is included in the Alarm.com segment, does not meet the criteria for consolidation and is accounted for using the measurement alternative. As of June 30, 2024 and December 31, 2023, our investment in the technology partner was $5.1 million. Allowance for Credit Losses - Notes Receivable We identified one portfolio segment, loan receivables, for our notes receivable. We previously disclosed a hardware financing receivable portfolio segment; however, there has been no activity within that portfolio segment since 2022. There were no changes to our policies or practices involving the issuance of notes receivable, customer acquisitions or any other factors that influenced our estimate of expected credit losses for notes receivable during the three and six months ended June 30, 2024. We do not accrue interest on notes receivable that are considered impaired or are 90 days or greater past due based on their contractual payment terms. Notes receivable that are 90 days or greater past due are placed on nonaccrual status. Notes receivable may be placed on nonaccrual status earlier if, in management’s opinion, a timely collection of the full principal and interest becomes uncertain. After a note receivable has been placed on nonaccrual status, interest will be recognized when cash is received. A note receivable may be returned to accrual status after all of the customer’s delinquent balances of principal and interest have been settled, and collection of all remaining contractual amounts due is reasonably assured. We have elected not to measure an allowance for credit losses for accrued interest receivables. We write-off any accrued interest on notes receivable that are considered impaired or are 90 days or greater past due based on their contractual payment terms by reversing interest income. The accrued interest receivable as of June 30, 2024 and December 31, 2023 was $0.1 million, and is reflected in other current assets and other assets within our condensed consolidated balance sheets and excluded from the amortized cost basis of the notes receivable. During the six months ended June 30, 2024, we recorded a reduction to our interest income of $0.5 million related to the reversal of payable in kind interest associated with a subordinated credit agreement with the Affiliate. We did not write off any accrued interest receivable during the three months ended June 30, 2024 or the three and six months ended June 30, 2023. There were no purchases or sales of financial assets during the three and six months ended June 30, 2024 and 2023. During the three and six months ended June 30, 2024, we wrote off $4.0 million related to a note receivable that originated in 2017 with the Affiliate and reversed the previously recorded allowance for credit losses. The changes in our allowance for credit losses for notes receivable are as follows (in thousands): Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 Beginning of period balance $ (4,003) $ (2) $ (5) $ (2) Recover of / (provision for) expected credit losses 2  —  (3,996) —  Write-offs 4,000  —  4,000  —  End of period balance $ (1) $ (2) $ (1) $ (2) We manage our notes receivables using delinquency as a key credit quality indicator. The following tables reflect the current and delinquent notes receivable by class of financing receivables and by year of origination (in thousands): June 30, 2024 Loan Receivables: 2024 2023 2022 2021 2020 Prior Total Current $ 500  $ 150  $ 1,500  $ —  $ 1,014  $ —  $ 3,164  30-59 days past due —  —  —  —  —  —  —  60-89 days past due —  —  —  —  —  —  —  90-119 days past due —  —  —  —  —  —  —  120+ days past due —  —  —  —  —  —  —  Total $ 500  $ 150  $ 1,500  $ —  $ 1,014  $ —  $ 3,164  December 31, 2023 Loan Receivables: 2023 2022 2021 2020 2019 Prior Total Current $ 150  $ 1,500  $ —  $ 1,039  $ —  $ 4,524  $ 7,213  30-59 days past due —  —  —  —  —  —  —  60-89 days past due —  —  —  —  —  —  —  90-119 days past due —  —  —  —  —  —  —  120+ days past due —  —  —  —  —  —  —  Total $ 150  $ 1,500  $ —  $ 1,039  $ —  $ 4,524  $ 7,213  There were no notes receivable placed on nonaccrual status as of June 30, 2024 and December 31, 2023. During the three and six months ended June 30, 2024 and 2023, there was no interest income recognized related to notes receivable that were in nonaccrual status. As of June 30, 2024 and December 31, 2023, there were no notes receivable placed in nonaccrual status for which there was not a related allowance for credit losses. As of June 30, 2024 and December 31, 2023, there were no notes receivable that were 90 days or greater past due for which we continued to accrue interest income. Prepaid Expenses As of June 30, 2024 and December 31, 2023, $15.6 million and $14.6 million of prepaid expenses were included in other current assets, respectively, primarily related to software licenses, long lead-time parts related to our inventory and our office leases.

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Fair Value Measurements	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The following tables present our assets and liabilities measured at fair value on a recurring basis (in thousands): Fair Value Measurements on a Recurring Basis Assets: Level 1 Level 2 Level 3 Total Money market accounts as of June 30, 2024 $ 1,093,874  $ —  $ —  $ 1,093,874  Equity securities with readily determinable fair value as of June 30, 2024 1,427  —  —  1,427  Money market accounts as of December 31, 2023 679,734  —  —  679,734  Liabilities: Contingent consideration liability from acquisition as of June 30, 2024 $ —  $ —  $ 2,105  $ 2,105  Contingent consideration liability from acquisition as of December 31, 2023 —  —  2,061  2,061  The following table summarizes the change in fair value of the Level 3 contingent consideration liability with significant unobservable inputs (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Beginning of period balance $ 2,092  $ 2,006  $ 2,061  $ —  Acquired liabilities —  —  —  1,993  Changes in fair value included in earnings 13  14  44  27  End of period balance $ 2,105  $ 2,020  $ 2,105  $ 2,020       As of June 30, 2024, $1.1 billion of our money market accounts was included in cash and cash equivalents, $5.2 million was included in other assets and $1.6 million was included in other current assets in our condensed consolidated balance sheets. As of December 31, 2023, $675.6 million of our money market accounts was included in cash and cash equivalents and $4.1 million was included in other assets in our condensed consolidated balance sheets. Our assets from money market accounts are valued using quoted prices in active markets. Our equity securities with readily determinable fair value represent our investments in publicly traded companies, which are valued using quoted prices in active markets. During the three and six months ended June 30, 2024, we recorded an unrealized loss on equity securities of less than $0.1 million. Our investments in public entities are recorded at fair value within other current assets in our condensed consolidated balance sheets and changes in fair value of the investments are recorded within other expense, net within our condensed consolidated statements of operations. See Note 12 for the carrying amounts and estimated fair values of our convertible senior notes as of June 30, 2024 and December 31, 2023. The contingent consideration liability consists of the potential earn-out payment related to our acquisition of 100% of the issued and outstanding capital stock of EBS on January 18, 2023. The earn-out payment is contingent on the satisfaction of certain performance targets related to the integration of EBS's hardware into the Alarm.com platform by December 31, 2025 and has a maximum potential payment of up to $2.5 million. We account for the contingent consideration using fair value and established a liability for the future earn-out payment based on an estimation of the probability of the future achievement of the performance targets. The contingent consideration liability was valued with Level 3 unobservable inputs, including the probability of expected achievement of the performance targets. At January 18, 2023, the fair value of the liability was $2.0 million. At each reporting date until December 31, 2025, or the achievement of the performance targets, we will remeasure the liability, using the same valuation approach. The fair value of the contingent consideration liability is included within accounts payable, accrued expenses and other current liabilities as well as other liabilities within our condensed consolidated balance sheets. Changes in fair value resulting from information that existed subsequent to the acquisition date are recorded in general and administrative expense in the condensed consolidated statements of operations. During the three and six months ended June 30, 2024, the contingent consideration liability did not materially change from the acquisition date fair value of $2.0 million as there were minor changes in the expected probability of achievement for the performance targets. The unobservable inputs used in the valuation as of June 30, 2024 included a weighted average expected achievement percentage of 89.5%, weighted by the potential payout of the performance targets, including a range of 80.0% to 99.0%. The valuation also included a weighted average discount rate of 6.1%, weighted by the probability of achievement of the performance targets at various dates, including a range of 6.1% to 6.2%. Selecting another probability of expected achievement or discount rate within an acceptable range would not result in a significant change to the fair value of the contingent consideration liability. We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. There were no transfers into or out of Level 3 or reclassifications between levels of the fair value hierarchy during the three and six months ended June 30, 2024 and 2023.

v3.24.2.u1

Leases	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Leases	Leases As of June 30, 2024, we leased office space, data centers and office equipment under non-cancelable operating leases with various expiration dates through 2030. In August 2014, we signed a lease for office space in Tysons, Virginia, where we relocated our headquarters to in February 2016. We have subsequently entered into amendments to this lease to provide us with additional office space. The lease term ends in 2026, includes a five-year renewal option and a cumulative tenant improvement allowance of $12.1 million. Supplemental information related to leases is presented in the table below (in thousands, except weighted-average term and discount rate): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease cost $ 2,977  $ 2,871  $ 5,953  $ 5,621  Cash paid for amounts included in the measurement of operating lease liabilities 3,530  3,434  6,751  6,796  Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 272  188  2,915  4,115  June 30, 2024 December 31, 2023 Weighted-average remaining lease term — operating leases 3.0 years 3.0 years Weighted-average discount rate — operating leases 5.3  % 4.9  % Maturities of lease liabilities are as follows (in thousands): Year Ended December 31, Operating Leases(1) Remainder of 2024 $ 7,093  2025 12,598  2026 7,827  2027 2,500  2028 1,841  2029 and thereafter 1,904  Total lease payments 33,763  Less: imputed interest(2) 3,626  Present value of lease liabilities $ 30,137  _______________ (1)Excludes $6.4 million of legally binding minimum lease payments for leases executed but not yet commenced. There are no options to extend lease terms that were reasonably certain of being exercised included in these balances. (2)Imputed interest was calculated using the incremental borrowing rate applicable for each lease. We did not have any finance leases or subleases as of June 30, 2024 or December 31, 2023. Our lease agreements do not contain any material residual value guarantees, restrictive covenants or variable lease payments. Short-term lease costs were immaterial for the three and six months ended June 30, 2024 and 2023.

v3.24.2.u1

Liabilities	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Liabilities	Liabilities The components of accounts payable, accrued expenses and other current liabilities are as follows (in thousands): June 30, 2024 December 31, 2023 Accounts payable $ 50,905  $ 39,038  Accrued expenses 19,096  21,559  Income taxes payable 10,887  42,501  Holdback liability from business combinations and asset acquisitions 2,700  7,340  Contingent consideration liability from acquisition 1,192  —  Other current liabilities 11,295  14,037  Accounts payable, accrued expenses and other current liabilities $ 96,075  $ 124,475  The components of other liabilities are as follows (in thousands): June 30, 2024 December 31, 2023 Contingent consideration liability from acquisition $ 913  $ 2,061  Other liabilities 13,401  10,636  Other liabilities $ 14,314  $ 12,697

v3.24.2.u1

Debt, Commitments and Contingencies	6 Months Ended
	Jun. 30, 2024
Debt, Commitments and Contingencies Disclosure [Abstract]
Debt, Commitments and Contingencies	Debt, Commitments and Contingencies The debt, commitments and contingencies described below would require us, or our subsidiaries, to make payments to third parties under certain circumstances. Convertible Senior Notes - 2026 Notes On January 20, 2021, we issued $500.0 million aggregate principal amount of 0% convertible senior notes due January 15, 2026 in a private placement to qualified institutional buyers, or the 2026 Notes. The terms of the 2026 Notes are governed by an Indenture, or the 2026 Indenture, by and between Alarm.com Holdings, Inc. and U.S. Bank National Association, as trustee. The 2026 Notes are senior unsecured obligations that do not bear regular interest and the principal amount of the 2026 Notes will not accrete. The 2026 Notes may bear special interest under specified circumstances related to our failure to comply with our reporting obligations under the 2026 Indenture. Special interest, if any, will be payable semiannually in arrears on January 15 and July 15 of each year, beginning on July 15, 2021. We received proceeds from the issuance of the 2026 Notes of $484.3 million, net of $15.7 million of transaction fees and other debt issuance costs. We may redeem for cash, all or any portion of the 2026 Notes, at our option, on or after January 20, 2024, at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the redemption date, if the last reported sale price of our common stock has been at least 130% of the conversion price for the 2026 Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption. No sinking fund is provided for the 2026 Notes. The 2026 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding August 15, 2025, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price for the 2026 Notes on each applicable trading day; (2) during the five business day period immediately after any 10 consecutive trading day period in which, for each trading day of that period, the trading price per $1,000 principal amount of 2026 Notes for such trading day was less than 98% of the product of the last reported sale price of our common stock and the conversion rate for the 2026 Notes on each such trading day; (3) if we call any or all of the 2026 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the 2026 Notes called (or deemed called) for redemption; or (4) upon the occurrence of specified corporate events as set forth in the 2026 Indenture. On or after August 15, 2025, until the close of business on the second scheduled trading day immediately preceding the maturity date of the 2026 Notes, holders of the 2026 Notes may convert all or any portion of their 2026 Notes at any time, regardless of the foregoing conditions. Upon conversion, we may satisfy our conversion obligation by paying or delivering, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. It is our current intent to settle the principal amount of the 2026 Notes with cash. The initial conversion rate for the 2026 Notes is 6.7939 shares of our common stock per $1,000 principal amount of 2026 Notes, which is equivalent to an initial conversion price of $147.19 per share of our common stock, subject to adjustment under certain circumstances in accordance with the terms of the 2026 Indenture. In addition, following certain corporate events that occur prior to the maturity date of the 2026 Notes or if we deliver a notice of redemption in respect of the 2026 Notes, we will, under certain circumstances, increase the conversion rate of the 2026 Notes for a holder who elects to convert its 2026 Notes (or any portion thereof) in connection with such a corporate event or convert its 2026 Notes called (or deemed called) for redemption during the related redemption period (as defined in the 2026 Indenture), as the case may be. If we undergo a fundamental change (as defined in the 2026 Indenture), subject to certain exceptions and except as described in the 2026 Indenture, holders may require us to repurchase for cash all or any portion of their 2026 Notes at a fundamental change repurchase price equal to 100% of the principal amount of the 2026 Notes to be repurchased, plus accrued and unpaid special interest, if any, to, but excluding, the fundamental change repurchase date. The 2026 Indenture includes customary covenants and sets forth certain events of default after which the 2026 Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving us after which the 2026 Notes become automatically due and payable. We used some of the proceeds to repay the $110.0 million outstanding principal balance under our credit facility and also used some of the proceeds to pay accrued interest, fees and expenses related to our credit facility, which was terminated effective January 20, 2021. We are using the remaining net proceeds from the issuance of the 2026 Notes for working capital and other general corporate purposes, which may include acquisitions or strategic investments in complementary businesses or technologies. We account for the 2026 Notes as a liability. The debt issuance costs are presented as a deduction from the outstanding principal balance of the 2026 Notes and are amortized to interest expense using the effective interest method over the contractual term of the 2026 Notes at a rate of 0.6%. As of June 30, 2024 and December 31, 2023, the fair value of our 2026 Notes was $457.0 million and $444.8 million, respectively. The fair value was determined based on the quoted price of the 2026 Notes in an inactive market on the last traded day of the quarter and has been classified as Level 2 in the fair value hierarchy. Based on the closing price of our common stock of $63.54 on the last trading day of the quarter, the if-converted value of the 2026 Notes did not exceed the principal amount of $500.0 million as of June 30, 2024. The net carrying amount of the liability component of the 2026 Notes is as follows (in thousands): June 30, 2024 December 31, 2023 Principal $ 500,000  $ 500,000  Unamortized debt issuance costs (4,904) (6,485) Net carrying amount $ 495,096  $ 493,515  Interest expense related to the 2026 Notes is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Amortization of debt issuance costs $ 791  $ 786  $ 1,581  $ 1,570  Total interest expense $ 791  $ 786  $ 1,581  $ 1,570  Convertible Senior Notes - 2029 Notes On May 31, 2024, we issued $500.0 million aggregate principal amount of 2.25% convertible senior notes due June 1, 2029 in a private placement to qualified institutional buyers, or the 2029 Notes. The terms of the 2029 Notes are governed by an Indenture, or the 2029 Indenture, by and between Alarm.com Holdings, Inc. and U.S. Bank Trust Company, National Association, as trustee. The 2029 Notes are senior unsecured obligations that bear interest at a rate of 2.25% per annum, payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2024, and the principal amount of the 2029 Notes will not accrete. We received proceeds from the issuance of the 2029 Notes of $485.2 million, net of $14.8 million of transaction fees and other debt issuance costs. We may redeem for cash, all or any portion of the 2029 Notes (subject to the partial redemption limitation described below), at our option, on or after June 7, 2027, at a redemption price equal to 100% of the principal amount of the 2029 Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, if the last reported sale price of our common stock has been at least 130% of the conversion price for the 2029 Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption. If we redeem less than all the 2029 Notes, at least $75.0 million aggregate principal amount of the 2029 Notes must be outstanding and not subject to redemption as of the relevant redemption notice date. No sinking fund is provided for the 2029 Notes. The 2029 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding January 1, 2029, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2024 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price for the 2029 Notes on each applicable trading day; (2) during the five business day period immediately after any 10 consecutive trading day period in which, for each trading day of that period, the trading price per $1,000 principal amount of 2029 Notes for such trading day was less than 98% of the product of the last reported sale price of our common stock and the conversion rate for the 2029 Notes on each such trading day; (3) if we call any or all of the 2029 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the 2029 Notes called (or deemed called) for redemption; or (4) upon the occurrence of specified corporate events as set forth in the 2029 Indenture. On or after January 1, 2029, until the close of business on the second scheduled trading day immediately preceding the maturity date of the 2029 Notes, holders of the 2029 Notes may convert all or any portion of their 2029 Notes at any time, regardless of the foregoing conditions. Upon conversion, we may satisfy our conversion obligation by paying or delivering, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. It is our current intent to settle the principal amount of the 2029 Notes with cash. The initial conversion rate for the 2029 Notes is 11.4571 shares of our common stock per $1,000 principal amount of 2029 Notes, which is equivalent to an initial conversion price of $87.28 per share of our common stock, subject to adjustment under certain circumstances in accordance with the terms of the 2029 Indenture. In addition, following certain corporate events that occur prior to the maturity date of the 2029 Notes or if we deliver a notice of redemption in respect of some or all of the 2029 Notes, we will, under certain circumstances, increase the conversion rate of the 2029 Notes for a holder who elects to convert its 2029 Notes (or any portion thereof) in connection with such a corporate event or convert its 2029 Notes called (or deemed called) for redemption during the related redemption period (as defined in the 2029 Indenture), as the case may be. If we undergo a fundamental change (as defined in the 2029 Indenture), subject to certain exceptions and except as described in the 2029 Indenture, holders may require us to repurchase for cash all or any portion of their 2029 Notes at a fundamental change repurchase price equal to 100% of the principal amount of the 2029 Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the fundamental change repurchase date. The 2029 Indenture includes customary covenants and sets forth certain events of default after which the 2029 Notes may be declared immediately due and payable and sets forth certain types of bankruptcy or insolvency events of default involving us after which the 2029 Notes become automatically due and payable. We used $63.1 million of the net proceeds from the 2029 Notes to pay the cost of the capped call transactions described below and used $75.0 million to repurchase 1,117,068 shares of our common stock concurrently with the pricing of the 2029 Notes, which was separately authorized by our board of directors. We expect to use the remaining net proceeds from the issuance of the 2029 Notes for general corporate purposes, which may include acquisitions or strategic investments in complementary businesses or technologies, other repurchases of our common stock, repurchases of our 2026 Notes and for working capital, operating expenses and capital expenditures. We account for the 2029 Notes as a liability. The debt issuance costs are presented as a deduction from the outstanding principal balance of the 2029 Notes and are amortized to interest expense using the effective interest method over the contractual term of the 2029 Notes at a rate of 2.9%. As of June 30, 2024, the fair value of our 2029 Notes was $491.4 million. The fair value was determined based on the quoted price of the 2029 Notes in an inactive market on the last traded day of the quarter and has been classified as Level 2 in the fair value hierarchy. Based on the closing price of our common stock of $63.54 on the last trading day of the quarter, the if-converted value of the 2029 Notes did not exceed the principal amount of $500.0 million as of June 30, 2024. The net carrying amount of the liability component of the 2029 Notes is as follows (in thousands): June 30, 2024 December 31, 2023 Principal $ 500,000  $ —  Unamortized debt issuance costs (14,604) —  Net carrying amount $ 485,396  $ —  Interest expense related to the 2029 Notes is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Interest expense $ 938  $ —  $ 938  $ —  Amortization of debt issuance costs 230  —  230  —  Total interest expense $ 1,168  $ —  $ 1,168  $ —  Capped Call – 2029 Notes In connection with the offering of the 2029 Notes, we entered into privately negotiated capped call transactions with one of the initial purchasers and certain other financial institutions, at a cost of $63.1 million. The capped call transactions cover, subject to customary adjustments substantially similar to those applicable to the 2029 Notes, the number of shares of our common stock initially underlying the 2029 Notes. The cap price of the capped call transactions is initially $134.28 per share of our common stock, which represents a premium of 100% over the closing price of our common stock on the Nasdaq Global Select Market on May 28, 2024, and is subject to certain adjustments under the terms of the capped call transactions. The exercise price is $87.28 per share of common stock, subject to customary anti-dilution adjustments that mirror corresponding adjustments for the 2029 Notes. We elected to integrate the capped call options with the 2029 Notes for federal income tax purposes pursuant to applicable U.S. Treasury Regulations. Accordingly, the $63.1 million cost of the purchased capped calls will be deductible for income tax purposes. The original issue discount is accreted over the term of the 2029 Notes. The capped call transactions are generally expected to reduce the potential dilution to holders of our common stock upon any conversion of the 2029 Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted 2029 Notes, as the case may be, with such reduction and/or offset subject to a cap. As the capped call options are both legally detachable and separately exercisable from the 2029 Notes, we account for the capped call options separately from the 2029 Notes. The capped call options are indexed to our own common stock and classified in stockholders’ equity. As such, the premiums paid for the capped call options were included as a net reduction to additional paid-in capital in the condensed consolidated balance sheets. The capped call transactions will not be remeasured as long as they continue to meet the conditions for equity classification. Commitments and Contingencies Indemnification Agreements We have various agreements that may obligate us to indemnify the other party to the agreement with respect to certain matters. Generally, these indemnification provisions are included in contracts arising in the normal course of business. Although we cannot predict the maximum potential amount of future payments that may become due under these indemnification agreements, we do not believe any potential liability that might arise from such indemnity provisions is probable or material. Legal Proceedings On January 10, 2022, EcoFactor, Inc., or EcoFactor, filed a lawsuit against us in U.S. District Court, District of Oregon, alleging Alarm.com’s products and services directly and indirectly infringe five U.S. patents owned by EcoFactor. EcoFactor is seeking a permanent injunction, enhanced damages and attorneys' fees. EcoFactor had previously asserted two of the same patents against us in an October 2019 complaint with the U.S. International Trade Commission, or ITC. In July 2021, the ITC found in favor of Alarm.com. EcoFactor appealed the decision but withdrew its appeal in December 2021. We moved to dismiss the Oregon case for failure to state a claim on March 28, 2022. Three of the asserted patents are in ex parte reexamination proceedings at the PTO, and ex parte reexamination of a fourth patent concluded on August 23, 2023 after the claims were amended. On April 18, 2022, all claims of a fifth patent were found unpatentable by the U.S. Patent Trial and Appeal Board, or PTAB, in an inter partes review, and all claims were canceled on February 1, 2024. On April 18, 2022, the district court stayed the case at the request of the parties pending the disposition of PTAB and other proceedings involving the asserted patents. Should EcoFactor prevail in its lawsuit we could be required to pay damages and/or a reasonable royalty for sales of our solution, we could be enjoined from making, using and selling our solution if a license or other right to continue selling such elements is not made available to us, and we could be required to pay ongoing royalties and comply with unfavorable terms if such a license is made available to us. While we believe we have valid defenses to EcoFactor’s claims, the outcome of these legal claims cannot be predicted with certainty and any of these outcomes could result in an adverse effect on our business. Based on currently available information, we have determined a loss is not probable or reasonably estimable at this time. On July 22, 2021, Causam Enterprises, Inc., or Causam, filed a lawsuit against us in U.S. District Court, Western District of Texas, alleging that Alarm.com’s smart thermostats infringe four U.S. patents owned by Causam. Causam is seeking preliminary and permanent injunctions, enhanced damages and attorneys’ fees. We have not yet responded to the complaint. On September 3, 2021, the court issued an order staying the lawsuit until the ITC investigation described below is finally resolved. On July 28, 2021, Causam filed a complaint with the ITC naming Alarm.com Incorporated, Alarm.com Holdings, Inc., and EnergyHub, Inc., among others, as proposed respondents. The complaint alleges infringement of the same four patents Causam asserted in district court. Causam is seeking a permanent limited exclusion order and permanent cease and desist order. On August 27, 2021, the ITC instituted an investigation into Causam’s allegations naming Alarm.com Incorporated, Alarm.com Holdings, Inc., EnergyHub Inc. and others as respondents. We answered the complaint on October 4, 2021. Among other things, we asserted defenses based on non-infringement and invalidity of the patents in question. An evidentiary hearing in the investigation was held from June 28, 2022 through July 1, 2022. On February 16, 2023, the ITC issued a final decision in favor of Alarm.com and EnergyHub. Causam filed an appeal of the ITC decision on April 14, 2023. Causam did not appeal the ITC decision with respect to Alarm.com and EnergyHub. Should Causam prevail in its district court lawsuit we could be required to pay damages and/or a reasonable royalty for sales of our solution, we could be enjoined from making, using and selling our solution if a license or other right to continue selling such elements is not made available to us, and we could be required to pay ongoing royalties and comply with unfavorable terms if such a license is made available to us. While we believe we have valid defenses to Causam’s claims, the outcome of these legal claims cannot be predicted with certainty, and any of these outcomes could result in an adverse effect on our business. Based on currently available information, we have determined a loss is not probable or reasonably estimable at this time. In addition to the matters described above, we may be required to provide indemnification to certain of our service provider partners for certain claims regarding our solutions. For example, we incur costs associated with the indemnification of our service provider Central Security Group – Nationwide, Inc. (d/b/a Alert 360), or CSG, in an ongoing patent litigation. In 2018, Ubiquitous Connectivity, LP, or Ubiquitous, brought suit against CSG in U.S. District Court, Northern District of Oklahoma, alleging infringement of two U.S. patents. The case was stayed by agreement of the parties for several years while the patents in suit were challenged before the PTAB. In January 2021, the PTAB deemed 42 out of 46 claims of the two asserted patents unpatentable. Ubiquitous appealed a portion of the PTAB’s findings to the United States Court of Appeals for the Federal Circuit. The Federal Circuit affirmed the PTAB’s ruling on August 8, 2023. As a result, only four patent claims remain at issue and the Northern District of Oklahoma case is no longer stayed. The case is currently in the discovery and claim construction phase. A claim construction hearing is scheduled for December 12, 2024. A hearing on dispositive motions, including for summary judgment, is scheduled for April 15, 2026. A trial is scheduled for July 6, 2026. Should Ubiquitous prevail on its infringement claims, we could be required to indemnify CSG for damages in the form of a reasonable royalty or of Ubiquitous’s lost profits. CSG could be enjoined from making, using, and selling our solution if a license or other right to continue selling our technology is not made available or if we are unable to design around such patents, and we could be required to pay ongoing royalties and comply with unfavorable terms if such a license is made available to us. The outcome of these legal claims cannot be predicted with certainty. Based on currently available information, we have determined a loss is not probable or reasonably estimable at this time. We may also be a party to litigation and subject to claims incident to the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business. Other than the preceding matters, we are not a party to any lawsuit or proceeding that, in the opinion of management, is reasonably possible or probable of having a material adverse effect on our financial position, results of operations or cash flows. We reserve for contingent liabilities based on ASC 450, "Contingencies," when it is determined that a liability, inclusive of defense costs, is probable and reasonably estimable. Litigation is subject to many factors that are difficult to predict, so there can be no assurance that, in the event of a material unfavorable result in one or more claims, we will not incur material costs.

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Stockholders' Equity	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Stock Repurchase Programs On February 15, 2023, our board of directors authorized a stock repurchase program, effective February 23, 2023, under which we were authorized to purchase up to an aggregate of $100.0 million of our outstanding common stock during the two-year period ending February 23, 2025. On May 24, 2024, our board of directors authorized the repurchase of our common stock in connection with the issuance of the 2029 Notes, the cancellation of the balance under the stock repurchase program ending February 23, 2025 and also authorized a stock repurchase program, effective May 31, 2024, under which we are authorized to purchase up to an aggregate of $100.0 million of our outstanding common stock during the two-year period ending May 31, 2026. The full repurchase balance for this program of $100.0 million was available as of June 30, 2024. During the three and six months ended June 30, 2024, 1,117,068 shares were repurchased for $75.0 million under our stock repurchase program authorized in connection with the issuance of the 2029 Notes. During the three and six months ended June 30, 2023, 134,255 shares of our common stock were repurchased for $6.7 million under our stock repurchase program that was subsequently cancelled effective May 31, 2024. As of January 1, 2023, we are subject to a 1.0% excise tax on the value of net corporate stock repurchases under the Inflation Reduction Act of 2022. When applicable, the excise tax will be included as part of the cost basis of shares acquired and is presented within stockholders’ equity in the condensed consolidated balance sheets. Shares Withheld As permitted under the terms of the 2015 Equity Incentive Plan, in 2021 the Compensation Committee authorized the withholding of shares of common stock in connection with the vesting of restricted stock unit awards issued to employees to satisfy applicable tax withholding requirements. These withheld shares are not issued or considered common stock repurchases under our stock repurchase program. We paid $3.4 million of tax withholdings related to vesting of restricted stock units during the three and six months ended June 30, 2024. No tax withholdings related to the vesting of restricted stock units were paid during the three and six months ended June 30, 2023. We also utilized the sell-to-cover method in which shares of our restricted stock unit awards were sold into the market on behalf of the employee upon vesting to cover tax withholding liabilities. We may utilize either the withholding method or sell-to-cover method in the future.

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Stock-Based Compensation	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Stock-based compensation expense is included in the following line items in the condensed consolidated statements of operations (in thousands):   Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Cost of hardware and other revenue $ 1  $ —  $ 2  $ —  Sales and marketing 724  892  1,479  1,924  General and administrative 3,303  3,468  6,484  6,613  Research and development 7,185  7,571  14,516  16,080  Total stock-based compensation expense $ 11,213  $ 11,931  $ 22,481  $ 24,617  The following table summarizes the components of non-cash stock-based compensation expense (in thousands):   Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Stock options $ 1,146  $ 1,071  $ 2,133  $ 1,983  Restricted stock units 10,017  10,819  20,247  22,541  Employee stock purchase plan 50  41  101  93  Total stock-based compensation expense $ 11,213  $ 11,931  $ 22,481  $ 24,617  Tax windfall benefit / (shortfall) from stock-based awards $ 645  $ (669) $ 1,131  $ (691) We granted 93,500 and 99,500 stock options pursuant to our 2015 Equity Incentive Plan during the three and six months ended June 30, 2024, respectively, as compared to 172,000 and 193,400 stock options for the same periods in the prior year. There were 14,467 and 142,993 stock options exercised during the three and six months ended June 30, 2024, respectively, as compared to 12,184 and 83,135 stock options for the same periods in the prior year. There was an aggregate of 241,728 and 329,878 restricted stock units without performance conditions granted to certain of our employees and directors during the three and six months ended June 30, 2024, respectively, as compared to an aggregate of 103,522 and 186,397 restricted stock units without performance conditions for the same periods in the prior year. There were no restricted stock units with performance conditions granted to our employees during the three and six months ended June 30, 2024 and 2023. There were 209,087 and 290,783 restricted stock units without performance conditions that vested during the three and six months ended June 30, 2024, respectively, as compared to 226,865 and 393,950 restricted stock units without performance conditions vested during the same periods in the prior year. There were 33,395 restricted stock units with performance conditions that vested during each of the three and six months ended June 30, 2024, as compared to 30,406 and 39,406 restricted stock units with performance conditions, respectively, vested for the same periods in the prior year.

v3.24.2.u1

Earnings Per Share	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Basic and Diluted Earnings Per Share The components of basic and diluted earnings per share are as follows (in thousands, except share and per share amounts):   Three Months Ended June 30, Six Months Ended June 30, Numerator: 2024 2023 2024 2023 Net income $ 32,520  $ 15,611  $ 55,924  $ 29,818  Net loss attributable to redeemable noncontrolling interests 991  188  1,182  397  Net income attributable to common stockholders - basic (A) 33,511  15,799  57,106  30,215  Add back interest expense, net of tax, attributable to convertible senior notes 1,473  591  2,067  1,181  Net income attributable to common stockholders - diluted (B) $ 34,984  $ 16,390  $ 59,173  $ 31,396  Denominator: Weighted average common shares outstanding — basic (C) 49,832,503  49,859,615  49,897,884  49,723,012  Dilutive effect of convertible senior notes, stock options and restricted stock units 6,847,852  4,586,660  5,970,163  4,700,035  Weighted average common shares outstanding — diluted (D) 56,680,355  54,446,275  55,868,047  54,423,047  Net income per share: Basic (A/C) $ 0.67  $ 0.32  $ 1.14  $ 0.61  Diluted (B/D) $ 0.62  $ 0.30  $ 1.06  $ 0.58  The following securities have been excluded from the calculation of diluted weighted average common shares outstanding as the inclusion of these securities would have an anti-dilutive effect:   Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Stock options 422,524  602,135  422,524  602,135  Restricted stock units 7,200  253,214  1,700  152,817  Our redeemable noncontrolling interests are related to our 86% equity ownership interests in OpenEye, and our 85% equity ownership interest in Noonlight. We use the treasury stock method when calculating the dilutive impact of the stock options and restricted stock units on net income per share. We use the if-converted method when calculating the dilutive impact of the 2026 Notes and 2029 Notes on net income per share. As a result, we included 3,396,950 shares related to the 2026 Notes within the weighted average shares outstanding when calculating the diluted net income per share for each of the three and six months ended June 30, 2024 and 2023. We included 1,951,484 and 975,742 shares related to the 2029 Notes within the weighted average shares outstanding when calculating the diluted net income per share for each of the three and six months ended June 30, 2024, respectively. Additionally, we included $1.5 million and $2.1 million of interest expense and debt issuance cost amortization, net of tax, within the numerator of the diluted net income per share for the three and six months ended June 30, 2024, respectively, as compared to $0.6 million and $1.2 million for the same periods in the prior year. The denominator for diluted net income per share does not include any effect from the capped call transactions we entered into concurrently with the issuance of the 2029 Notes, as this effect would be anti-dilutive. In the event of conversion of the 2029 Notes, shares delivered to us under the capped call will offset the dilutive effect of the shares that we would issue under the 2029 Notes. See Note 12 for further details on our 2029 Notes and the related capped call transactions.

v3.24.2.u1

Significant Service Providers and Distributors	6 Months Ended
	Jun. 30, 2024
Risks and Uncertainties [Abstract]
Significant Service Providers and Distributors	Significant Service Providers and Distributors During each of the three and six months ended June 30, 2024, our 10 largest revenue service provider partners or distributors accounted for 47% of our consolidated revenue as compared to 50% for the same periods in the prior year. One of our service provider partners within the Alarm.com segment individually represented greater than 15% but not more than 20% of our revenue for each of the three and six months ended June 30, 2024 and 2023. One service provider partner in the Alarm.com segment represented more than 10% of accounts receivable as of June 30, 2024 and December 31, 2023.

v3.24.2.u1

Income Taxes	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes For purposes of interim reporting, our annual effective income tax rate is estimated in accordance with ASC 740-270, "Interim Reporting." This rate is applied to the pre-tax book income of the entities expected to be benefited during the year. Discrete items that impact the tax provision are recorded in the period incurred. For the three and six months ended June 30, 2024, we recorded a provision for income taxes of $0.9 million and $3.6 million, respectively, resulting in an effective income tax rate of 2.6% and 6.1% for those periods. For the three and six months ended June 30, 2023, we recorded a provision for income taxes of $6.5 million and $5.3 million, respectively, resulting in an effective income tax rate of 29.4% and 15.1% for those periods. For the three months ended June 30, 2024, our effective tax rate was below the 21.0% statutory rate primarily due to a favorable true-up adjustment of our 2023 income tax provision estimate associated with research and development tax credits, 2024 research and development tax credits claimed, the foreign derived intangible income deduction and tax windfall benefits from employee stock-based compensation. For the six months ended June 30, 2024, our effective tax rate was below the 21.0% statutory rate primarily due to a favorable true-up adjustment of our 2023 income tax provision estimate associated with research and development tax credits, 2024 research and development tax credits claimed, the foreign derived intangible income deduction, the release of an unrecognized tax benefit liability due to the closure of the 2018 and 2019 Internal Revenue Service federal income tax examination and tax windfall benefits from employee stock-based compensation, partially offset by the impact of state taxes, federal estimated tax payment interest expense and other nondeductible expenses. For the three months ended June 30, 2023, our effective tax rate was above the 21.0% statutory rate primarily due to an unfavorable true-up adjustment of our 2022 income tax provision estimate associated with research and development tax credits, an increase in foreign withholding taxes and a stock-based compensation tax shortfall. For the six months ended June 30, 2023, our effective tax rate was below the 21.0% statutory rate primarily due to research and development tax credits claimed and the foreign derived intangible income deduction, partially offset by an unfavorable true-up adjustment of our 2022 income tax provision estimate associated with research and development tax credits, the impact of state taxes, foreign withholding taxes and a stock-based compensation tax shortfall. We recognize a valuation allowance if, based on the weight of available evidence, both positive and negative, it is more likely than not that some portion, or all, of net deferred tax assets will not be realized. Our valuation allowance for state research and development tax credit carryforwards and net deferred tax assets of our EBS subsidiary was $3.8 million as of December 31, 2023 and June 30, 2024. We apply guidance for uncertainty in income taxes that requires the application of a more likely than not threshold to the recognition and de-recognition of uncertain tax positions. If the recognition threshold is met, this guidance permits us to recognize a tax benefit measured at the largest amount of the tax benefit that, in our judgment, is more likely than not to be realized upon settlement. We recorded a net decrease to the unrecognized tax benefits liability of $0.4 million primarily due to the closure of the 2018 and 2019 Internal Revenue Service federal income tax return examination, partially offset by a liability for research and development tax credits claimed during the six months ended June 30, 2024. We recorded a net increase to the unrecognized tax benefits liability of $0.8 million primarily for research and development tax credits claimed during the six months ended June 30, 2023. Our condensed consolidated balance sheets included an accrual for total interest expense related to unrecognized tax benefits of $0.8 million and $0.7 million as of December 31, 2023 and June 30, 2024, respectively. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. Our tax returns are subject to on-going review and examination by various tax authorities. Tax authorities may not agree with the treatment of items reported in our tax returns, and therefore the outcome of tax reviews and examinations can be unpredictable. On October 13, 2021, the Internal Revenue Service commenced an examination of our federal income tax return for 2018 and on August 12, 2022, the Internal Revenue Service expanded the examination to include our federal income tax return for 2019. On January 25, 2024, the Internal Revenue Service notified us that the income tax examination of our 2018 and 2019 federal income tax returns has been closed. As a result, we paid $0.6 million in additional federal taxes, including interest, during the three months ended June 30, 2024, and recognized a net income tax benefit of $1.7 million during the three months ended March 31, 2024. As of June 30, 2024, we did not have material undistributed foreign earnings. We have not recorded a deferred tax liability on the undistributed earnings from our foreign subsidiaries, as such earnings are considered to be indefinitely reinvested. In August 2022, the Inflation Reduction Act of 2022 was enacted in the United States which, among other provisions, includes a minimum 15.0% tax on companies that have a three-year average annual adjusted financial statement income of more than $1.0 billion and a 1.0% excise tax on the value of net corporate stock repurchases. Both provisions became effective on January 1, 2023 and the provisions did not have a material impact on our financial condition or results of operations for the periods presented.

v3.24.2.u1

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.

v3.24.2.u1

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

v3.24.2.u1

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include our accounts and those of our majority-owned and controlled subsidiaries after elimination of intercompany accounts and transactions. These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP, for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission, or SEC. Accordingly, they do not include all the information and footnotes required by GAAP for annual financial statements. They should be read together with our audited consolidated financial statements and related notes thereto for the year ended December 31, 2023 included in our Annual Report on Form 10-K filed with the SEC on February 22, 2024, or the Annual Report. The condensed consolidated balance sheet as of December 31, 2023 was derived from our audited financial statements but does not include all disclosures required by GAAP for annual financial statements. In the opinion of management, these condensed consolidated financial statements include all normal recurring adjustments necessary for a fair statement of the results of operations, financial position and cash flows for the periods presented. However, the global economy, credit markets and financial markets have and may continue to experience significant volatility as a result of significant worldwide events, including public health crises, and geopolitical upheaval, such as Russia’s incursion into Ukraine and the conflict between Israel and regional adversaries, disruptions to global supply chains, rising interest rates, risk of recession and inflation (collectively, the Macroeconomic Conditions). These Macroeconomic Conditions have and may continue to create supply chain disruptions, inventory disruptions, and fluctuations in economic growth, including fluctuations in employment rates, inflation, energy prices and consumer sentiment. It remains difficult to assess or predict the ultimate duration and economic impact of the Macroeconomic Conditions. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results that can be expected for our entire fiscal year ending December 31, 2024, which is increasingly true in periods of extreme uncertainty, such as the uncertainty caused by the Macroeconomic Conditions. Prolonged uncertainties could cause further economic slowdown or cause other unpredictable events, each of which could adversely affect our business, results of operations or financial condition.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. As of the date of issuance of these financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, assumptions and judgments or revise the carrying value of our assets or liabilities. However, our estimates, judgments and assumptions are continually evaluated based on available information and experience and may change as new events occur and additional information is obtained. Because of the use of estimates inherent in the financial reporting process and in light of the continuing uncertainty arising from the Macroeconomic Conditions, actual results could differ from those estimates and any such differences may be material. Estimates are used when accounting for revenue recognition, allowances for credit losses, allowance for hardware returns, estimates of obsolete inventory, long-term incentive compensation, the lease term and incremental borrowing rates for leases, stock-based compensation, income taxes, legal reserves, goodwill, intangible assets and other long-lived assets.
Capped Call Transactions	Capped Call Transactions On May 31, 2024, we issued $500.0 million aggregate principal amount of 2.25% convertible senior notes due June 1, 2029 in a private placement to qualified institutional buyers, or the 2029 Notes. In connection with the offering of the 2029 Notes, we entered into privately negotiated capped call transactions with one of the initial purchasers and certain other financial institutions, at a cost of $63.1 million. The capped call transactions cover, subject to customary adjustments substantially similar to those applicable to the 2029 Notes, the number of shares of our common stock initially underlying the 2029 Notes. As the capped call options are both legally detachable and separately exercisable from the 2029 Notes, we account for the capped call options separately from the 2029 Notes. The capped call options are indexed to our own common stock and classified in stockholders’ equity. As such, the premiums paid for the capped call options were included as a net reduction to additional paid-in capital in the condensed consolidated balance sheets. The capped call transactions will not be remeasured as long as they continue to meet the conditions for equity classification. We elected to integrate the capped call options with the 2029 Notes for federal income tax purposes pursuant to applicable U.S. Treasury Regulations. Accordingly, the $63.1 million cost of the purchased capped calls will be deductible for income tax purposes. The original issue discount is accreted over the term of the 2029 Notes.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Adopted During the three and six months ended June 30, 2024, we did not adopt any new accounting pronouncements. Not Yet Adopted On November 27, 2023, the Financial Accounting Standards Board, or FASB, issued ASU 2023-07, "Segment Reporting (Topic 280),” which revises the disclosure requirements about a public entity’s reportable segments and a reportable segment’s expenses. This amendment requires a public entity to (i) disclose significant segment expense that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, (ii) disclose an amount for other segment items by reportable segment and a description of its composition and (iii) provide annual disclosures about a reportable segment’s profit or loss and assets currently required by Topic 280 in interim periods. The amendment is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. This amendment is required to be applied retrospectively to all prior periods presented. We are currently assessing the impact this pronouncement will have on our consolidated financial statement disclosures. On December 14, 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740)," which requires additional annual disclosures regarding specific categories in the income tax rate reconciliation as well additional information for reconciling items that meet a quantitative threshold. This amendment also requires annual disclosures regarding the amount of income taxes paid, including income taxes paid disaggregated by (i) federal, state and foreign taxes as well as (ii) individual jurisdictions in which income taxes paid is equal to or greater than five percent of total income taxes paid. Additionally, this amendment requires annual disclosures for income from continuing operations before income tax expense (or benefit) disaggregated between domestic and foreign as well as income tax expense (or benefit) disaggregated between federal, state and foreign. The amendment is effective for annual periods beginning after December 15, 2024, and early adoption is permitted. This amendment should be applied on a prospective basis, but retrospective application is permitted. We are currently assessing the impact this pronouncement will have on our consolidated financial statement disclosures.
Allowance for Credit Losses	Allowance for Credit Losses The allowance for credit losses is a valuation account that is deducted from the accounts receivable and notes receivable amortized cost basis (see Note 8) to present the net amount expected to be collected. We estimate the allowance balance by applying the loss-rate method using relevant available information from internal and external sources, including historical write-off activity, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for changes in economic conditions, such as changes in unemployment rates. We use projected economic conditions over a period no more than twelve months based on data from external sources. For periods beyond the twelve-month reasonable and supportable forecast period, we revert to historical loss information immediately. The allowance for credit losses is measured on a pooled basis when similar risk characteristics exist. When assessing whether to measure certain financial assets on a pooled basis, we considered various risk characteristics, including the financial asset type, size and the historical or expected credit loss pattern. Expected credit losses are estimated over the contractual term of the financial assets and we adjust the term for expected prepayments when appropriate. For the three and six months ended June 30, 2024, we recorded credit loss expense for accounts receivable and notes receivable of $0.2 million and $4.2 million, respectively, in general and administrative expense in our condensed consolidated statements of operations. For the three and six months ended June 30, 2023, we recorded credit loss expense for accounts receivable and notes receivable of less than $0.1 million and $0.5 million, respectively, in general and administrative expense in our condensed consolidated statements of operations. The contractual term excludes expected extensions, renewals and modifications because extension and renewal options are unconditionally cancelable by us. Write-offs of the amortized cost basis are recorded to the allowance for credit losses. Any subsequent recoveries of previously written off balances are recorded as a reduction to credit loss expense. Allowance for Credit Losses - Accounts Receivable We identified the following two portfolio segments for our accounts receivable: (i) outstanding accounts receivable balances within Alarm.com and certain subsidiaries and (ii) outstanding accounts receivable balances within all other subsidiaries. There were no changes to our portfolio segments for our accounts receivable during the three and six months ended June 30, 2024, and no changes to our policies or practices that influenced our estimate of expected credit losses for accounts receivable. Additionally, there were no significant changes in the amount of accounts receivable write-offs during the three and six months ended June 30, 2024, as compared to historical periods. Allowance for Credit Losses - Notes Receivable We identified one portfolio segment, loan receivables, for our notes receivable. We previously disclosed a hardware financing receivable portfolio segment; however, there has been no activity within that portfolio segment since 2022. There were no changes to our policies or practices involving the issuance of notes receivable, customer acquisitions or any other factors that influenced our estimate of expected credit losses for notes receivable during the three and six months ended June 30, 2024. We do not accrue interest on notes receivable that are considered impaired or are 90 days or greater past due based on their contractual payment terms. Notes receivable that are 90 days or greater past due are placed on nonaccrual status. Notes receivable may be placed on nonaccrual status earlier if, in management’s opinion, a timely collection of the full principal and interest becomes uncertain. After a note receivable has been placed on nonaccrual status, interest will be recognized when cash is received. A note receivable may be returned to accrual status after all of the customer’s delinquent balances of principal and interest have been settled, and collection of all remaining contractual amounts due is reasonably assured. We have elected not to measure an allowance for credit losses for accrued interest receivables. We write-off any accrued interest on notes receivable that are considered impaired or are 90 days or greater past due based on their contractual payment terms by reversing interest income.
Income Taxes	We recognize a valuation allowance if, based on the weight of available evidence, both positive and negative, it is more likely than not that some portion, or all, of net deferred tax assets will not be realized. Our valuation allowance for state research and development tax credit carryforwards and net deferred tax assets of our EBS subsidiary was $3.8 million as of December 31, 2023 and June 30, 2024. We apply guidance for uncertainty in income taxes that requires the application of a more likely than not threshold to the recognition and de-recognition of uncertain tax positions. If the recognition threshold is met, this guidance permits us to recognize a tax benefit measured at the largest amount of the tax benefit that, in our judgment, is more likely than not to be realized upon settlement.

v3.24.2.u1

Revenue from Contracts with Customers (Tables)	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Contract Assets and Contract Liabilities	The changes in our contract assets are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Beginning of period balance $ 10,466  $ 13,879  $ 9,099  $ 13,975  Commission costs and upfront payments to a customer capitalized in period 2,235  1,547  5,347  3,220  Amortization of contract assets (1,796) (1,845) (3,541) (3,614) End of period balance $ 10,905  $ 13,581  $ 10,905  $ 13,581  The changes in our contract liabilities are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Beginning of period balance $ 24,212  $ 20,231  $ 22,885  $ 18,332  Revenue deferred in period 7,549  5,719  13,973  11,659  Revenue recognized from amounts included in contract liabilities (5,854) (4,490) (10,951) (8,531) End of period balance $ 25,907  $ 21,460  $ 25,907  $ 21,460

v3.24.2.u1

Accounts Receivable, Net (Tables)	6 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
Schedule of Components of Accounts Receivable	The components of accounts receivable, net are as follows (in thousands): June 30, 2024 December 31, 2023 Accounts receivable $ 129,925  $ 136,769  Allowance for credit losses (3,766) (3,864) Allowance for product returns (2,608) (2,279) Accounts receivable, net $ 123,551  $ 130,626
Schedule of Changes in Allowance for Credit Losses for Accounts Receivable	The changes in our allowance for credit losses for accounts receivable are as follows (in thousands): Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Six Months Ended June 30, 2024 Six Months Ended June 30, 2023  Alarm.com and Certain Subsidiaries All Other Subsidiaries  Alarm.com and Certain Subsidiaries All Other Subsidiaries  Alarm.com and Certain Subsidiaries All Other Subsidiaries Alarm.com and Certain Subsidiaries All Other Subsidiaries Beginning of period balance $ (3,966) $ (88) $ (3,102) $ (97) $ (3,723) $ (141) $ (2,755) $ (80) (Provision for) / recovery of expected credit losses (101) (2) 19  (96) (388) 31  (487) (130) Write-offs 390  1  115  2  434  21  274  19  End of period balance $ (3,677) $ (89) $ (2,968) $ (191) $ (3,677) $ (89) $ (2,968) $ (191) The changes in our allowance for credit losses for notes receivable are as follows (in thousands): Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 Beginning of period balance $ (4,003) $ (2) $ (5) $ (2) Recover of / (provision for) expected credit losses 2  —  (3,996) —  Write-offs 4,000  —  4,000  —  End of period balance $ (1) $ (2) $ (1) $ (2)

v3.24.2.u1

Inventory (Tables)	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
Schedule of Components of Inventory	The components of inventory are as follows (in thousands): June 30, 2024 December 31, 2023 Raw materials $ 26,228  $ 30,452  Work-in-process 686  275  Finished goods 52,668  65,413  Total inventory $ 79,582  $ 96,140

v3.24.2.u1

Goodwill and Intangible Assets, Net (Tables)	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The changes in goodwill by reportable segment are outlined below (in thousands): Alarm.com Other Total Balance as of January 1, 2024 $ 154,498  $ —  $ 154,498  Foreign currency translation adjustment (142) —  (142) Balance as of June 30, 2024 $ 154,356  $ —  $ 154,356
Schedule of Intangible Assets	The following table reflects changes in the net carrying amount of the components of intangible assets (in thousands): Customer Relationships Developed Technology Trade Name Capitalized Software Development Costs Other Total Balance as of January 1, 2024 $ 39,294  $ 37,174  $ 1,217  $ 879  $ —  $ 78,564  Intangible assets acquired —  —  —  —  45  45  Capitalized software development costs —  —  —  740  —  740  Amortization (4,837) (4,106) (414) (64) —  (9,421) Balance as of June 30, 2024 $ 34,457  $ 33,068  $ 803  $ 1,555  $ 45  $ 69,928  The following tables reflect the weighted average remaining life and carrying value of finite-lived intangible assets (in thousands, except weighted-average remaining life):   June 30, 2024   Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted- Average Remaining Life (in years) Customer relationships $ 128,280  $ (93,823) $ 34,457  5.7 Developed technology 69,731  (36,663) 33,068  4.3 Trade name 4,474  (3,671) 803  2.6 Capitalized software development costs 1,622  (67) 1,555  3.0 Other 45  —  45  5.0 Total intangible assets $ 204,152  $ (134,224) $ 69,928  4.9   December 31, 2023   Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted- Average Remaining Life (in years) Customer relationships $ 128,280  $ (88,986) $ 39,294  6.2 Developed technology 70,061  (32,887) 37,174  4.7 Trade name 4,474  (3,257) 1,217  2.6 Capitalized software development costs 882  (3) 879  3.3 Total intangible assets $ 203,697  $ (125,133) $ 78,564  5.4

v3.24.2.u1

Other Assets (Tables)	6 Months Ended
	Jun. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Changes in Allowance for Credit Losses for Accounts Receivable	The changes in our allowance for credit losses for accounts receivable are as follows (in thousands): Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Six Months Ended June 30, 2024 Six Months Ended June 30, 2023  Alarm.com and Certain Subsidiaries All Other Subsidiaries  Alarm.com and Certain Subsidiaries All Other Subsidiaries  Alarm.com and Certain Subsidiaries All Other Subsidiaries Alarm.com and Certain Subsidiaries All Other Subsidiaries Beginning of period balance $ (3,966) $ (88) $ (3,102) $ (97) $ (3,723) $ (141) $ (2,755) $ (80) (Provision for) / recovery of expected credit losses (101) (2) 19  (96) (388) 31  (487) (130) Write-offs 390  1  115  2  434  21  274  19  End of period balance $ (3,677) $ (89) $ (2,968) $ (191) $ (3,677) $ (89) $ (2,968) $ (191) The changes in our allowance for credit losses for notes receivable are as follows (in thousands): Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 Six Months Ended June 30, 2024 Six Months Ended June 30, 2023 Beginning of period balance $ (4,003) $ (2) $ (5) $ (2) Recover of / (provision for) expected credit losses 2  —  (3,996) —  Write-offs 4,000  —  4,000  —  End of period balance $ (1) $ (2) $ (1) $ (2)
Schedule of Financing Receivable Credit Quality Indicators	We manage our notes receivables using delinquency as a key credit quality indicator. The following tables reflect the current and delinquent notes receivable by class of financing receivables and by year of origination (in thousands): June 30, 2024 Loan Receivables: 2024 2023 2022 2021 2020 Prior Total Current $ 500  $ 150  $ 1,500  $ —  $ 1,014  $ —  $ 3,164  30-59 days past due —  —  —  —  —  —  —  60-89 days past due —  —  —  —  —  —  —  90-119 days past due —  —  —  —  —  —  —  120+ days past due —  —  —  —  —  —  —  Total $ 500  $ 150  $ 1,500  $ —  $ 1,014  $ —  $ 3,164  December 31, 2023 Loan Receivables: 2023 2022 2021 2020 2019 Prior Total Current $ 150  $ 1,500  $ —  $ 1,039  $ —  $ 4,524  $ 7,213  30-59 days past due —  —  —  —  —  —  —  60-89 days past due —  —  —  —  —  —  —  90-119 days past due —  —  —  —  —  —  —  120+ days past due —  —  —  —  —  —  —  Total $ 150  $ 1,500  $ —  $ 1,039  $ —  $ 4,524  $ 7,213

v3.24.2.u1

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables present our assets and liabilities measured at fair value on a recurring basis (in thousands): Fair Value Measurements on a Recurring Basis Assets: Level 1 Level 2 Level 3 Total Money market accounts as of June 30, 2024 $ 1,093,874  $ —  $ —  $ 1,093,874  Equity securities with readily determinable fair value as of June 30, 2024 1,427  —  —  1,427  Money market accounts as of December 31, 2023 679,734  —  —  679,734  Liabilities: Contingent consideration liability from acquisition as of June 30, 2024 $ —  $ —  $ 2,105  $ 2,105  Contingent consideration liability from acquisition as of December 31, 2023 —  —  2,061  2,061
Schedule of Fair Value of Level 3 Liability	The following table summarizes the change in fair value of the Level 3 contingent consideration liability with significant unobservable inputs (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Beginning of period balance $ 2,092  $ 2,006  $ 2,061  $ —  Acquired liabilities —  —  —  1,993  Changes in fair value included in earnings 13  14  44  27  End of period balance $ 2,105  $ 2,020  $ 2,105  $ 2,020

v3.24.2.u1

Leases (Tables)	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Schedule of Supplemental Information Related to Leases	Supplemental information related to leases is presented in the table below (in thousands, except weighted-average term and discount rate): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Operating lease cost $ 2,977  $ 2,871  $ 5,953  $ 5,621  Cash paid for amounts included in the measurement of operating lease liabilities 3,530  3,434  6,751  6,796  Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 272  188  2,915  4,115  June 30, 2024 December 31, 2023 Weighted-average remaining lease term — operating leases 3.0 years 3.0 years Weighted-average discount rate — operating leases 5.3  % 4.9  %
Schedule of Maturities of Lease Liabilities	Maturities of lease liabilities are as follows (in thousands): Year Ended December 31, Operating Leases(1) Remainder of 2024 $ 7,093  2025 12,598  2026 7,827  2027 2,500  2028 1,841  2029 and thereafter 1,904  Total lease payments 33,763  Less: imputed interest(2) 3,626  Present value of lease liabilities $ 30,137  _______________ (1)Excludes $6.4 million of legally binding minimum lease payments for leases executed but not yet commenced. There are no options to extend lease terms that were reasonably certain of being exercised included in these balances. (2)Imputed interest was calculated using the incremental borrowing rate applicable for each lease.

v3.24.2.u1

Liabilities (Tables)	6 Months Ended
	Jun. 30, 2024
Payables and Accruals [Abstract]
Schedule of Accounts Payable, Accrued Expenses and Other Current Liabilities	The components of accounts payable, accrued expenses and other current liabilities are as follows (in thousands): June 30, 2024 December 31, 2023 Accounts payable $ 50,905  $ 39,038  Accrued expenses 19,096  21,559  Income taxes payable 10,887  42,501  Holdback liability from business combinations and asset acquisitions 2,700  7,340  Contingent consideration liability from acquisition 1,192  —  Other current liabilities 11,295  14,037  Accounts payable, accrued expenses and other current liabilities $ 96,075  $ 124,475  The components of other liabilities are as follows (in thousands): June 30, 2024 December 31, 2023 Contingent consideration liability from acquisition $ 913  $ 2,061  Other liabilities 13,401  10,636  Other liabilities $ 14,314  $ 12,697

v3.24.2.u1

Debt, Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2024
Debt, Commitments and Contingencies Disclosure [Abstract]
Schedule of Carrying Values of Debt	The net carrying amount of the liability component of the 2026 Notes is as follows (in thousands): June 30, 2024 December 31, 2023 Principal $ 500,000  $ 500,000  Unamortized debt issuance costs (4,904) (6,485) Net carrying amount $ 495,096  $ 493,515  Interest expense related to the 2026 Notes is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Amortization of debt issuance costs $ 791  $ 786  $ 1,581  $ 1,570  Total interest expense $ 791  $ 786  $ 1,581  $ 1,570  The net carrying amount of the liability component of the 2029 Notes is as follows (in thousands): June 30, 2024 December 31, 2023 Principal $ 500,000  $ —  Unamortized debt issuance costs (14,604) —  Net carrying amount $ 485,396  $ —  Interest expense related to the 2029 Notes is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Interest expense $ 938  $ —  $ 938  $ —  Amortization of debt issuance costs 230  —  230  —  Total interest expense $ 1,168  $ —  $ 1,168  $ —

v3.24.2.u1

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Stock-Based Compensation Expense	Stock-based compensation expense is included in the following line items in the condensed consolidated statements of operations (in thousands):   Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Cost of hardware and other revenue $ 1  $ —  $ 2  $ —  Sales and marketing 724  892  1,479  1,924  General and administrative 3,303  3,468  6,484  6,613  Research and development 7,185  7,571  14,516  16,080  Total stock-based compensation expense $ 11,213  $ 11,931  $ 22,481  $ 24,617  The following table summarizes the components of non-cash stock-based compensation expense (in thousands):   Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Stock options $ 1,146  $ 1,071  $ 2,133  $ 1,983  Restricted stock units 10,017  10,819  20,247  22,541  Employee stock purchase plan 50  41  101  93  Total stock-based compensation expense $ 11,213  $ 11,931  $ 22,481  $ 24,617  Tax windfall benefit / (shortfall) from stock-based awards $ 645  $ (669) $ 1,131  $ (691)

v3.24.2.u1

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Schedule of Components of Basic and Diluted EPS	The components of basic and diluted earnings per share are as follows (in thousands, except share and per share amounts):   Three Months Ended June 30, Six Months Ended June 30, Numerator: 2024 2023 2024 2023 Net income $ 32,520  $ 15,611  $ 55,924  $ 29,818  Net loss attributable to redeemable noncontrolling interests 991  188  1,182  397  Net income attributable to common stockholders - basic (A) 33,511  15,799  57,106  30,215  Add back interest expense, net of tax, attributable to convertible senior notes 1,473  591  2,067  1,181  Net income attributable to common stockholders - diluted (B) $ 34,984  $ 16,390  $ 59,173  $ 31,396  Denominator: Weighted average common shares outstanding — basic (C) 49,832,503  49,859,615  49,897,884  49,723,012  Dilutive effect of convertible senior notes, stock options and restricted stock units 6,847,852  4,586,660  5,970,163  4,700,035  Weighted average common shares outstanding — diluted (D) 56,680,355  54,446,275  55,868,047  54,423,047  Net income per share: Basic (A/C) $ 0.67  $ 0.32  $ 1.14  $ 0.61  Diluted (B/D) $ 0.62  $ 0.30  $ 1.06  $ 0.58
Schedule of Securities Excluded from Calculation of Diluted Weighted Average Common Shares Outstanding Due to Anti-dilutive Effect	The following securities have been excluded from the calculation of diluted weighted average common shares outstanding as the inclusion of these securities would have an anti-dilutive effect:   Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Stock options 422,524  602,135  422,524  602,135  Restricted stock units 7,200  253,214  1,700  152,817

v3.24.2.u1

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2024
Segment Reporting [Abstract]
Schedule of Reportable Segment Operational Data	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

v3.24.2.u1

Basis of Presentation and Summary of Significant Accounting Policies (Details) $ in Millions	May 31, 2024 USD ($)
Debt Instrument [Line Items]
Capped call transaction cost	$ 63.1
Convertible Senior Notes due 2029 | Senior Notes
Debt Instrument [Line Items]
Debt instrument, face amount	$ 500.0
Debt instrument, interest rate	2.25%

v3.24.2.u1

Revenue from Contracts with Customers - Contract Asset and Liability Balances (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Change In Contract With Customer, Asset [Roll Forward]
Beginning of period balance	$ 10,466	$ 13,879	$ 9,099	$ 13,975
Commission costs and upfront payments to a customer capitalized in period	2,235	1,547	5,347	3,220
Amortization of contract assets	(1,796)	(1,845)	(3,541)	(3,614)
End of period balance	10,905	13,581	10,905	13,581
Change In Contract With Customer, Liability [Roll Forward]
Beginning of period balance	24,212	20,231	22,885	18,332
Revenue deferred in period	7,549	5,719	13,973	11,659
Revenue recognized from amounts included in contract liabilities	(5,854)	(4,490)	(10,951)	(8,531)
End of period balance	$ 25,907	$ 21,460	$ 25,907	$ 21,460

v3.24.2.u1

Accounts Receivable, Net - Schedule of Components of Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Receivables [Abstract]
Accounts receivable	$ 129,925	$ 136,769
Allowance for credit losses	(3,766)	(3,864)
Allowance for product returns	(2,608)	(2,279)
Accounts receivable, net	$ 123,551	$ 130,626

v3.24.2.u1

Accounts Receivable, Net - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($) portfolio_segment	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) portfolio_segment	Jun. 30, 2023 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for expected credit losses	$ 100	$ 100	$ 357	$ 616
Reserve for product returns			2,022	2,498
Credit loss expense (reversal) for accounts and notes receivable	$ 200	100	$ 4,200	500
Accounts receivable, number of portfolio segments | portfolio_segment	2		2
Hardware and other revenue
Accounts, Notes, Loans and Financing Receivable [Line Items]
Reserve for product returns	$ 900	$ 1,300	$ 2,000	$ 2,500

v3.24.2.u1

Accounts Receivable, Net - Schedule of Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning of period balance			$ (3,864)
(Provision for) / recovery of expected credit losses	$ (100)	$ (100)	(357)	$ (616)
End of period balance	(3,766)		(3,766)
Alarm.com and Certain Subsidiaries
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning of period balance	(3,966)	(3,102)	(3,723)	(2,755)
(Provision for) / recovery of expected credit losses	(101)	19	(388)	(487)
Write-offs	390	115	434	274
End of period balance	(3,677)	(2,968)	(3,677)	(2,968)
All Other Subsidiaries
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning of period balance	(88)	(97)	(141)	(80)
(Provision for) / recovery of expected credit losses	(2)	(96)	31	(130)
Write-offs	1	2	21	19
End of period balance	$ (89)	$ (191)	$ (89)	$ (191)

v3.24.2.u1

Inventory - Schedule of Components of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Raw materials	$ 26,228	$ 30,452
Work-in-process	686	275
Finished goods	52,668	65,413
Total inventory	$ 79,582	$ 96,140

v3.24.2.u1

Inventory - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Inventory Disclosure [Abstract]
Inventory write-down	$ 0	$ 1,181	$ 1,400

v3.24.2.u1

Acquisitions (Details) - USD ($) $ in Millions			1 Months Ended	12 Months Ended
	Apr. 21, 2023	Jan. 18, 2023	Mar. 31, 2023	Dec. 31, 2023
EBS
Business Acquisition [Line Items]
Percentage of business acquired		100.00%
Cash paid to acquire business		$ 9.8
Holdback consideration		2.2
Additional earn-out		2.5
Contingent consideration liability from acquisition		$ 2.0
Vintra
Business Acquisition [Line Items]
Payments to acquire developed technology	$ 5.5
Asset acquisition, consideration transferred, deduction, loan amount			$ 0.3
Asset acquisition, consideration transferred, holdback amount	1.0
Transaction costs				$ 0.4
Asset acquisition consideration	$ 7.1
Weighted-average estimated useful life of intangible assets acquired (years)	5 years
Consideration transferred, property and equipment	$ 0.1

v3.24.2.u1

Goodwill and Intangible Assets, Net - Schedule of Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 154,498
Foreign currency translation adjustment	(142)
Ending balance	154,356
Alarm.com
Goodwill [Roll Forward]
Beginning balance	154,498
Foreign currency translation adjustment	(142)
Ending balance	154,356
Other
Goodwill [Roll Forward]
Beginning balance	0
Foreign currency translation adjustment	0
Ending balance	$ 0

v3.24.2.u1

Goodwill and Intangible Assets, Net - Schedule of Net Carrying Amount of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Finite-lived Intangible Assets [Roll Forward]
Beginning balance			$ 78,564
Intangible assets acquired			45
Capitalized software development costs			740
Amortization	$ (4,700)	$ (4,700)	(9,421)	$ (9,300)
Ending balance	69,928		69,928
Customer Relationships
Finite-lived Intangible Assets [Roll Forward]
Beginning balance			39,294
Intangible assets acquired			0
Capitalized software development costs			0
Amortization			(4,837)
Ending balance	34,457		34,457
Developed Technology
Finite-lived Intangible Assets [Roll Forward]
Beginning balance			37,174
Intangible assets acquired			0
Capitalized software development costs			0
Amortization			(4,106)
Ending balance	33,068		33,068
Trade Name
Finite-lived Intangible Assets [Roll Forward]
Beginning balance			1,217
Intangible assets acquired			0
Capitalized software development costs			0
Amortization			(414)
Ending balance	803		803
Capitalized Software Development Costs
Finite-lived Intangible Assets [Roll Forward]
Beginning balance			879
Intangible assets acquired			0
Capitalized software development costs			740
Amortization			(64)
Ending balance	1,555		1,555
Other
Finite-lived Intangible Assets [Roll Forward]
Beginning balance			0
Intangible assets acquired			45
Capitalized software development costs			0
Amortization			0
Ending balance	$ 45		$ 45

v3.24.2.u1

Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Finite-Lived Intangible Assets [Line Items]
Purchases of intangible assets (paid less than)			$ 45,000	$ 5,915,000
Amortization	$ 4,700,000	$ 4,700,000	9,421,000	9,300,000
Impairment of long-lived assets	0	$ 0	0	$ 0
Domain Names
Finite-Lived Intangible Assets [Line Items]
Purchases of intangible assets (paid less than)	$ 100,000		100,000
Alarm.com
Finite-Lived Intangible Assets [Line Items]
Intangible assets written off			$ 300,000

v3.24.2.u1

Goodwill and Intangible Assets, Net - Schedule of Weighted Average Remaining Life and Carrying Value of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 204,152	$ 203,697
Accumulated Amortization	(134,224)	(125,133)
Net Carrying Value	$ 69,928	$ 78,564
Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Life (in years)	4 years 10 months 24 days	5 years 4 months 24 days
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 128,280	$ 128,280
Accumulated Amortization	(93,823)	(88,986)
Net Carrying Value	$ 34,457	$ 39,294
Customer Relationships | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Life (in years)	5 years 8 months 12 days	6 years 2 months 12 days
Developed Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 69,731	$ 70,061
Accumulated Amortization	(36,663)	(32,887)
Net Carrying Value	$ 33,068	$ 37,174
Developed Technology | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Life (in years)	4 years 3 months 18 days	4 years 8 months 12 days
Trade Name
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 4,474	$ 4,474
Accumulated Amortization	(3,671)	(3,257)
Net Carrying Value	$ 803	$ 1,217
Trade Name | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Life (in years)	2 years 7 months 6 days	2 years 7 months 6 days
Capitalized Software Development Costs
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,622	$ 882
Accumulated Amortization	(67)	(3)
Net Carrying Value	$ 1,555	$ 879
Capitalized Software Development Costs | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Life (in years)	3 years	3 years 3 months 18 days
Other
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 45
Accumulated Amortization	0
Net Carrying Value	$ 45	$ 0
Other | Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Life (in years)	5 years

v3.24.2.u1

Other Assets - Loan to a Distribution Partner (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for credit losses on notes receivable				$ 3,996	$ 0
Revenue from distribution partners	$ 233,807		$ 223,875	457,090	433,591
Distribution Partner | Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Debt instrument, interest rate							12.00%
Provision for credit losses on notes receivable		$ 4,000
Loan receivable, interest income reduction	0	$ 500	0	500	0
Write-offs	4,000
Loan receivable, noncurrent						$ 4,500
Revenue from distribution partners	$ 600		$ 800	$ 1,300	$ 1,600

v3.24.2.u1

Other Assets - Loan to a Service Provider Partner (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Jul. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total revenue	$ 233,807	$ 223,875	$ 457,090	$ 433,591
Service Provider | Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, maximum available						$ 2,500
Debt instrument, interest rate						9.00%
Loan balance	1,000		1,000		$ 1,000
Total revenue	$ 100	$ 100	$ 100	$ 100

v3.24.2.u1

Other Assets - Loan to a Technology Partner (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Jun. 30, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total revenue	$ 233,807,000	$ 223,875,000	$ 457,090,000	$ 433,591,000
Technology Partner Two | Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan balance	1,500,000		1,500,000		$ 1,500,000	$ 1,500,000
Debt instrument, interest rate						6.50%
Total revenue	$ 0	$ 0	$ 0	$ 0

v3.24.2.u1

Other Assets - Investment in a Hardware Supplier (Details) - Hardware Supplier - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023	Jul. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Conversion of outstanding notes receivable	$ 5.6	$ 5.6	$ 5.6
Conversion of outstanding notes receivable (in shares)			9,520,832

v3.24.2.u1

Other Assets - Investments in a Technology Partner (Details) - USD ($) $ in Thousands	1 Months Ended		6 Months Ended
	Dec. 31, 2022	Feb. 28, 2021	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cash purchase of shares			$ 2,950	$ 200
Technology Partner
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cash purchase of shares		$ 5,000
Investment			5,700		$ 5,700
Technology Partner | Series B-2 Preferred Stock
Accounts, Notes, Loans and Financing Receivable [Line Items]
Shares purchased (in shares)		1,000,000
Technology Partner Two
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cash purchase of shares	$ 5,100
Investment			$ 5,100		$ 5,100
Technology Partner Two | Series A Preferred Stock
Accounts, Notes, Loans and Financing Receivable [Line Items]
Shares purchased (in shares)	4,231,717

v3.24.2.u1

Other Assets - Allowance For Credit Losses Narrative (Details)	3 Months Ended			6 Months Ended
	Jun. 30, 2024 USD ($) contract portfolio_segment	Mar. 31, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) contract portfolio_segment	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($) contract
Financing Receivable, Nonaccrual [Line Items]
Number of portfolio segments | portfolio_segment	1			1
Interest receivable	$ 100,000			$ 100,000		$ 100,000
Interest income recognized for notes receivables in nonaccrual status	0		$ 0	0	$ 0
Prepaid expense	15,600,000			15,600,000		$ 14,600,000
Distribution Partner | Loans Receivable
Financing Receivable, Nonaccrual [Line Items]
Loan receivable, interest income reduction	0	$ 500,000	0	$ 500,000	0
Write-offs	$ 4,000,000.0
Notes Receivable
Financing Receivable, Nonaccrual [Line Items]
Nonaccrual notes receivable, number of contracts | contract	0			0		0
Nonaccrual notes receivable without related allowance for credit loss	$ 0			$ 0		$ 0
Notes receivable 90 days or more past due still accruing	0			0		$ 0
Loans Receivable
Financing Receivable, Nonaccrual [Line Items]
Write-offs	$ 4,000,000		$ 0	$ 4,000,000	$ 0

v3.24.2.u1

Other Assets - Schedule of Notes Receivable Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Recover of / (provision for) expected credit losses				$ (3,996)	$ 0
Loans Receivable
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning of period balance	$ (4,003)	$ (5)	$ (2)	(5)	(2)
Recover of / (provision for) expected credit losses	2		0	(3,996)	0
Write-offs	4,000		0	4,000	0
End of period balance	$ (1)	$ (4,003)	$ (2)	$ (1)	$ (2)

v3.24.2.u1

Other Assets - Credit Quality Indicators (Details) - Loans Receivable - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Originated in fiscal year	$ 500	$ 150
Originated one year before current fiscal year	150	1,500
Originated two years before current fiscal year	1,500	0
Originated three years before current fiscal year	0	1,039
Originated four years before current fiscal year	1,014	0
Prior	0	4,524
Total	3,164	7,213
Current
Accounts, Notes, Loans and Financing Receivable [Line Items]
Originated in fiscal year	500	150
Originated one year before current fiscal year	150	1,500
Originated two years before current fiscal year	1,500	0
Originated three years before current fiscal year	0	1,039
Originated four years before current fiscal year	1,014	0
Prior	0	4,524
Total	3,164	7,213
30-59 days past due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Originated in fiscal year	0	0
Originated one year before current fiscal year	0	0
Originated two years before current fiscal year	0	0
Originated three years before current fiscal year	0	0
Originated four years before current fiscal year	0	0
Prior	0	0
Total	0	0
60-89 days past due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Originated in fiscal year	0	0
Originated one year before current fiscal year	0	0
Originated two years before current fiscal year	0	0
Originated three years before current fiscal year	0	0
Originated four years before current fiscal year	0	0
Prior	0	0
Total	0	0
90-119 days past due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Originated in fiscal year	0	0
Originated one year before current fiscal year	0	0
Originated two years before current fiscal year	0	0
Originated three years before current fiscal year	0	0
Originated four years before current fiscal year	0	0
Prior	0	0
Total	0	0
120+ days past due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Originated in fiscal year	0	0
Originated one year before current fiscal year	0	0
Originated two years before current fiscal year	0	0
Originated three years before current fiscal year	0	0
Originated four years before current fiscal year	0	0
Prior	0	0
Total	$ 0	$ 0

v3.24.2.u1

Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market accounts	$ 1,093,874	$ 679,734
Equity securities with readily determinable fair value	1,427
Contingent consideration liability from acquisition	2,105	2,061
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market accounts	1,093,874	679,734
Equity securities with readily determinable fair value	1,427
Contingent consideration liability from acquisition	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market accounts	0	0
Equity securities with readily determinable fair value	0
Contingent consideration liability from acquisition	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market accounts	0	0
Equity securities with readily determinable fair value	0
Contingent consideration liability from acquisition	$ 2,105	$ 2,061

v3.24.2.u1

Fair Value Measurements - Summary of Fair Value of Level 3 Subsidiary Unit Awards and Contingent Consideration (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning of period balance	$ 2,092	$ 2,006	$ 2,061	$ 0
Acquired liabilities	0	0	0	1,993
Changes in fair value included in earnings	13	14	44	27
End of period balance	$ 2,105	$ 2,020	$ 2,105	$ 2,020

v3.24.2.u1

Fair Value Measurements - Narrative (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)	Jun. 30, 2023 USD ($)	Jan. 18, 2023 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 1,104,539	$ 1,104,539	$ 696,983	$ 627,041
Other assets	38,987	38,987	39,500
Other current assets, net	35,074	35,074	33,031
Unrealized loss on equity securities (less than)	$ 100	$ 100
Expected Achievement | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.895	0.895
Expected Achievement | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.800	0.800
Expected Achievement | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.990	0.990
Discount Rate | Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.061	0.061
Discount Rate | Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.061	0.061
Discount Rate | Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input	0.062	0.062
EBS
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of business acquired					100.00%
Additional earn-out					$ 2,500
Contingent consideration liability from acquisition					$ 2,000
Money market accounts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 1,100,000	$ 1,100,000	675,600
Other assets	5,200	5,200	$ 4,100
Other current assets, net	$ 1,600	$ 1,600

v3.24.2.u1

Leases - Narrative (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Lessee, Lease, Description [Line Items]
Available leasehold tenant improvement allowance	$ 12,100,000
Finance leases	0	$ 0
Subleases	$ 0	$ 0
Five Year Renewal Option
Lessee, Lease, Description [Line Items]
Lease renewal term	5 years

v3.24.2.u1

Leases - Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Leases [Abstract]
Operating lease cost	$ 2,977	$ 2,871	$ 5,953	$ 5,621
Cash paid for amounts included in the measurement of operating lease liabilities	3,530	3,434	6,751	6,796
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities	$ 272	$ 188	$ 2,915	$ 4,115
Weighted-average remaining lease term — operating leases	3 years		3 years		3 years
Weighted-average discount rate — operating leases	5.30%		5.30%		4.90%

v3.24.2.u1

Leases - Maturities of Lease Liabilities (Details)	Jun. 30, 2024 USD ($)
Maturities of Lease Liabilities Under Topic 842
Remainder of 2024	$ 7,093,000
2025	12,598,000
2026	7,827,000
2027	2,500,000
2028	1,841,000
2029 and thereafter	1,904,000
Total lease payments	33,763,000
Less: imputed interest	3,626,000
Present value of lease liabilities	30,137,000
Legally binding minimum lease payments on leases not yet commenced	6,400,000
Amount for options to extend lease	$ 0

v3.24.2.u1

Liabilities - Components of Accounts Payable, Accrued Expenses, and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accounts payable	$ 50,905	$ 39,038
Accrued expenses	19,096	21,559
Income taxes payable	10,887	42,501
Holdback liability from business combinations and asset acquisitions	2,700	7,340
Contingent consideration liability from acquisition	1,192	0
Other current liabilities	11,295	14,037
Accounts payable, accrued expenses and other current liabilities	$ 96,075	$ 124,475

v3.24.2.u1

Liabilities - Other Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Contingent consideration liability from acquisition	$ 913	$ 2,061
Other liabilities	13,401	10,636
Other liabilities	$ 14,314	$ 12,697

v3.24.2.u1

Debt, Commitments and Contingencies - Convertible Senior Notes (Details)			3 Months Ended		6 Months Ended
	May 31, 2024 USD ($) day $ / shares shares	Jan. 20, 2021 USD ($) day $ / shares	Jun. 30, 2024 USD ($) $ / shares shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2024 USD ($) $ / shares shares	Jun. 30, 2023 USD ($) shares	Dec. 31, 2023 USD ($)
Debt Instrument [Line Items]
Proceeds from convertible debt					$ 500,000,000	$ 0
Share price (in dollars per share) | $ / shares			$ 63.54		$ 63.54
Capped call transaction cost	$ 63,100,000
Purchases of treasury stock			$ 75,559,000	$ 6,726,000
Treasury Stock
Debt Instrument [Line Items]
Purchases of treasury stock	$ 75,000,000		$ 75,000,000	$ 6,726,000	$ 75,000,000.0	$ 6,700,000
Purchases of treasury stock (in shares) | shares	1,117,068		1,117,068	134,255	1,117,068	134,255
Convertible Senior Notes due 2026
Debt Instrument [Line Items]
Proceeds from convertible debt		$ 484,300,000
Debt issuance costs		$ 15,700,000
Debt instrument, redemption price, percentage		100.00%
Conversion ratio		0.0067939
Conversion price (in dollars per share) | $ / shares		$ 147.19
Convertible Senior Notes due 2026 | Redemption period one
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage		100.00%
Threshold percentage stock price trigger		130.00%
Trading days threshold | day		20
Consecutive trading days threshold | day		30
Convertible Senior Notes due 2026 | Redemption period two
Debt Instrument [Line Items]
Threshold percentage stock price trigger		130.00%
Trading days threshold | day		20
Consecutive trading days threshold | day		30
Number of business days | day		5
Number of consecutive trading days | day		10
Percentage of last reported sale price threshold		98.00%
Convertible Senior Notes due 2029
Debt Instrument [Line Items]
Proceeds from convertible debt	$ 485,200,000
Debt issuance costs	$ 14,800,000
Debt instrument, redemption price, percentage	100.00%
Conversion ratio	0.0114571
Conversion price (in dollars per share) | $ / shares	$ 87.28
Convertible Senior Notes due 2029 | Redemption period one
Debt Instrument [Line Items]
Debt instrument, redemption price, percentage	100.00%
Threshold percentage stock price trigger	130.00%
Trading days threshold | day	20
Consecutive trading days threshold | day	30
Debt instrument, amount outstanding threshold, not subject to redemption	$ 75,000,000.0
Convertible Senior Notes due 2029 | Redemption period two
Debt Instrument [Line Items]
Threshold percentage stock price trigger	130.00%
Trading days threshold | day	20
Consecutive trading days threshold | day	30
Number of business days | day	5
Number of consecutive trading days | day	10
Percentage of last reported sale price threshold	98.00%
Senior Notes | Convertible Senior Notes due 2026
Debt Instrument [Line Items]
Debt instrument, face amount		$ 500,000,000.0	$ 500,000,000.0		$ 500,000,000.0
Debt instrument, interest rate		0.00%
Effective interest rate		0.60%
Debt instrument, fair value			457,000,000.0		457,000,000.0		$ 444,800,000
Senior Notes | Convertible Senior Notes due 2029
Debt Instrument [Line Items]
Debt instrument, face amount	$ 500,000,000.0
Debt instrument, interest rate	2.25%
Effective interest rate	2.90%
Debt instrument, fair value			$ 491,400,000		$ 491,400,000
Line of Credit | 2017 Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt		$ 110,000,000.0

v3.24.2.u1

Debt, Commitments and Contingencies - Carrying Amount of Liability Component (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Convertible Senior Notes due 2026
Debt Instrument [Line Items]
Principal	$ 500,000	$ 500,000
Unamortized debt issuance costs	(4,904)	(6,485)
Net carrying amount	495,096	493,515
Convertible Senior Notes due 2029
Debt Instrument [Line Items]
Principal	500,000	0
Unamortized debt issuance costs	(14,604)	0
Net carrying amount	$ 485,396	$ 0

v3.24.2.u1

Debt, Commitments and Contingencies - Summary of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Convertible Senior Notes due 2026
Debt Instrument [Line Items]
Amortization of debt issuance costs	$ 791	$ 786	$ 1,581	$ 1,570
Total interest expense	791	786	1,581	1,570
Convertible Senior Notes due 2029
Debt Instrument [Line Items]
Interest expense	938	0	938	0
Amortization of debt issuance costs	230	0	230	0
Total interest expense	$ 1,168	$ 0	$ 1,168	$ 0

v3.24.2.u1

Debt, Commitments and Contingencies - Capped Call (Details) $ / shares in Units, $ in Millions	May 31, 2024 USD ($) $ / shares
Derivative [Line Items]
Capped call transaction cost | $	$ 63.1
Cap price (in dollars per share)	$ 134.28
Convertible Senior Notes due 2029
Derivative [Line Items]
Conversion price (in dollars per share)	$ 87.28

v3.24.2.u1

Debt, Commitments and Contingencies - Legal Proceedings (Details) - Pending Litigation				1 Months Ended		6 Months Ended	12 Months Ended
	Jan. 10, 2022 patent	Jul. 28, 2021 patent	Jul. 22, 2021 patent	Jan. 31, 2021 patent claim	Oct. 31, 2019 patent	Jun. 30, 2024 patent	Dec. 31, 2018 patent
EcoFactor, Inc. vs. Alarm.com Holdings, Inc.
Loss Contingencies [Line Items]
Number of patents allegedly infringed upon by the company	5				2
Number of patents under ex parte reexamination						3
Causam Enterprises, Inc vs Alarm.com Holdings, Inc
Loss Contingencies [Line Items]
Number of patents allegedly infringed upon by the company			4
Causam Enterprises, Inc vs Alarm.com Holdings, Inc and EnergyHub, Inc
Loss Contingencies [Line Items]
Number of patents allegedly infringed upon by the company		4
Ubiquitous Connectivity, LP vs. Alarm.com Holdings, Inc
Loss Contingencies [Line Items]
Number of patents allegedly infringed upon by the company				4			2
Number of claims deemed unpatentable | claim				42
Number of claims | claim				46

v3.24.2.u1

Stockholders' Equity (Details) - USD ($)			3 Months Ended		6 Months Ended
	May 31, 2024	Feb. 15, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Class of Stock [Line Items]
Purchases of treasury stock			$ 75,559,000	$ 6,726,000
Payments of tax withholdings related to vesting of restricted stock units			$ 3,400,000	$ 0	$ 3,401,000	$ 0
Treasury Stock
Class of Stock [Line Items]
Purchases of treasury stock (in shares)	1,117,068		1,117,068	134,255	1,117,068	134,255
Purchases of treasury stock	$ 75,000,000		$ 75,000,000	$ 6,726,000	$ 75,000,000.0	$ 6,700,000
February 2023 Repurchase Program
Class of Stock [Line Items]
Authorized repurchase amount		$ 100,000,000.0
Stock repurchase program, period		2 years
May 2024 Repurchase Program
Class of Stock [Line Items]
Authorized repurchase amount	$ 100,000,000.0
Stock repurchase program, period	2 years

v3.24.2.u1

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 11,213	$ 11,931	$ 22,481	$ 24,617
Tax windfall benefit / (shortfall) from stock-based awards	645	(669)	1,131	(691)
Stock options
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	1,146	1,071	2,133	1,983
Restricted stock units
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	10,017	10,819	20,247	22,541
Employee stock purchase plan
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	50	41	101	93
Cost of hardware and other revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	1	0	2	0
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	724	892	1,479	1,924
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	3,303	3,468	6,484	6,613
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 7,185	$ 7,571	$ 14,516	$ 16,080

v3.24.2.u1

Stock-Based Compensation - Narrative (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options exercised (in shares)	14,467	12,184	142,993	83,135
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted (in shares)	241,728	103,522	329,878	186,397
Restricted stock units vested (in shares)	209,087	226,865	290,783	393,950
Performance-based restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted (in shares)	0	0	0	0
Restricted stock units vested (in shares)	33,395	30,406	33,395	39,406
2015 Equity Incentive Plan | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)	93,500	172,000	99,500	193,400

v3.24.2.u1

Earnings Per Share - Components of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Net income	$ 32,520	$ 15,611	$ 55,924	$ 29,818
Net loss attributable to redeemable noncontrolling interests	991	188	1,182	397
Net income attributable to common stockholders	33,511	15,799	57,106	30,215
Add back interest expense, net of tax, attributable to convertible senior notes	1,473	591	2,067	1,181
Net income attributable to common stockholders - diluted	$ 34,984	$ 16,390	$ 59,173	$ 31,396
Weighted average common shares outstanding - basic (in shares)	49,832,503	49,859,615	49,897,884	49,723,012
Dilutive effect of convertible senior notes, stock options and restricted stock units (in shares)	6,847,852	4,586,660	5,970,163	4,700,035
Weighted average common shares outstanding - diluted (in shares)	56,680,355	54,446,275	55,868,047	54,423,047
Net income per share:
Basic (in dollars per share)	$ 0.67	$ 0.32	$ 1.14	$ 0.61
Diluted (in dollars per share)	$ 0.62	$ 0.30	$ 1.06	$ 0.58

v3.24.2.u1

Earnings Per Share - Schedule of Securities Excluded from Calculation of Diluted Weighted Average Common Shares Outstanding Due to Anti-dilutive Effect (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the calculation of earnings per share (in shares)	422,524	602,135	422,524	602,135
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the calculation of earnings per share (in shares)	7,200	253,214	1,700	152,817

v3.24.2.u1

Earnings Per Share - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive effect of convertible senior notes (in shares)	6,847,852	4,586,660	5,970,163	4,700,035
Interest expense and debt issuance cost	$ 1,473	$ 591	$ 2,067	$ 1,181
Convertible Senior Notes due 2026
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive effect of convertible senior notes (in shares)	3,396,950	3,396,950	3,396,950	3,396,950
Convertible Senior Notes due 2029
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive effect of convertible senior notes (in shares)	1,951,484		975,742
OpenEye
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Percentage of business acquired	86.00%		86.00%
Noonlight
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Percentage of business acquired	85.00%		85.00%

v3.24.2.u1

Significant Service Providers and Distributors (Details) - Service Provider Concentration Risk - Revenue	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
10 Largest Service Providers
Concentration Risk [Line Items]
Concentration risk percentage	47.00%	50.00%	47.00%	50.00%
Service Provider A | Minimum
Concentration Risk [Line Items]
Concentration risk percentage	15.00%	15.00%	15.00%	15.00%
Service Provider A | Maximum
Concentration Risk [Line Items]
Concentration risk percentage	20.00%	20.00%	20.00%	20.00%

v3.24.2.u1

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Operating Loss Carryforwards [Line Items]
Provision (benefit) for income taxes	$ 884		$ 6,507	$ 3,631	$ 5,285
Effective income tax rate (percent)	2.60%		29.40%	6.10%	15.10%
Valuation allowance	$ 3,800			$ 3,800		$ 3,800
Accrued interest and penalties related to unrecognized tax benefits	700			700		$ 800
Federal income taxes paid	$ 600
Income tax benefit, prior year taxes		$ 1,700
Research Tax Credit Carryforward
Operating Loss Carryforwards [Line Items]
Unrecognized tax benefits, increase (decrease)				$ (400)	$ 800

v3.24.2.u1

Segment Information (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) segment	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			2
Total revenue	$ 233,807,000	$ 223,875,000	$ 457,090,000	$ 433,591,000
Operating income / (loss)	25,774,000	16,159,000	44,499,000	24,978,000
Total assets	1,855,247,000		1,855,247,000		$ 1,439,563,000
Amortization and depreciation	7,080,000	7,860,000	14,417,000	15,533,000
Operating Segments | Alarm.com
Segment Reporting Information [Line Items]
Total revenue	218,319,000	210,387,000	428,540,000	409,534,000
Operating income / (loss)	30,690,000	19,901,000	54,261,000	33,831,000
Total assets	1,907,486,000		1,907,486,000		1,477,674,000
Amortization and depreciation	6,800,000	7,600,000	13,900,000	15,000,000.0
Additions to property and equipment	1,900,000	2,800,000	5,800,000	5,800,000
Operating Segments | Other
Segment Reporting Information [Line Items]
Total revenue	16,536,000	14,538,000	30,420,000	25,999,000
Operating income / (loss)	(4,851,000)	(3,878,000)	(9,593,000)	(9,068,000)
Total assets	55,017,000		55,017,000		73,621,000
Amortization and depreciation	300,000	300,000	500,000	600,000
Additions to property and equipment	100,000	100,000	100,000	100,000
Intersegment Eliminations | Alarm.com
Segment Reporting Information [Line Items]
Total revenue	(860,000)	(881,000)	(1,545,000)	(1,658,000)
Operating income / (loss)	(89,000)	41,000	(222,000)	46,000
Total assets	(107,239,000)		(107,239,000)		(111,725,000)
Intersegment Eliminations | Other
Segment Reporting Information [Line Items]
Total revenue	(188,000)	(169,000)	(325,000)	(284,000)
Operating income / (loss)	24,000	$ 95,000	53,000	$ 169,000
Total assets	$ (17,000)		$ (17,000)		$ (7,000)
Segment Concentration Risk | Revenue | Alarm.com
Segment Reporting Information [Line Items]
Concentration risk percentage	93.00%	94.00%	93.00%	94.00%
SaaS and license revenue
Segment Reporting Information [Line Items]
Total revenue	$ 155,927,000	$ 140,432,000	$ 306,271,000	$ 275,826,000
SaaS and license revenue | Operating Segments | Alarm.com
Segment Reporting Information [Line Items]
Total revenue	140,854,000	127,754,000	278,713,000	253,406,000
SaaS and license revenue | Operating Segments | Other
Segment Reporting Information [Line Items]
Total revenue	15,073,000	12,678,000	27,558,000	22,420,000
SaaS and license revenue | Intersegment Eliminations | Alarm.com
Segment Reporting Information [Line Items]
Total revenue	0	0	0	0
SaaS and license revenue | Intersegment Eliminations | Other
Segment Reporting Information [Line Items]
Total revenue	0	0	0	0
Hardware and other revenue
Segment Reporting Information [Line Items]
Total revenue	77,880,000	83,443,000	150,819,000	157,765,000
Hardware and other revenue | Operating Segments | Alarm.com
Segment Reporting Information [Line Items]
Total revenue	77,465,000	82,633,000	149,827,000	156,128,000
Hardware and other revenue | Operating Segments | Other
Segment Reporting Information [Line Items]
Total revenue	1,463,000	1,860,000	2,862,000	3,579,000
Hardware and other revenue | Intersegment Eliminations | Alarm.com
Segment Reporting Information [Line Items]
Total revenue	(860,000)	(881,000)	(1,545,000)	(1,658,000)
Hardware and other revenue | Intersegment Eliminations | Other
Segment Reporting Information [Line Items]
Total revenue	(188,000)	(169,000)	(325,000)	(284,000)
Software License Revenue | Alarm.com
Segment Reporting Information [Line Items]
Total revenue	5,200,000	5,900,000	10,400,000	12,100,000
Software License Revenue | Other
Segment Reporting Information [Line Items]
Total revenue	$ 0	$ 0	$ 0	$ 0

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