Technology

Alarm.com Has 5 Million Subs in Wake of Icontrol Deal

Also nets multi-year exclusive deal with ADT 3/17/2017 10:22 AM Eastern Last updated at 3/17/2017 3:15 PM

Smart home and home security specialist Alarm.com said it had 5 million residential and business subscribers as of March 15, a revised figure that includes Alarm.com’s recent acquisition of Icontrol’s Connect and Piper businesses.

The deal, which closed March 8, also expands Alarm.com’s relationship with ADT, whose Pulse service is based on the Z-wave-based Connect platform. Comcast acquired the Icontrol’s ZigBee-based Converged platform. 

RELATED: Comcast, Alarm.com Divvy Up Icontrol Networks

Alarm.com will serve as “the exclusive provider of services for ADT's professionally installed residential interactive security automation and video offerings for a period of up to five years, subject to certain performance conditions and carve outs,” Steve Trundle, Alarm.com’s CEO, said Wednesday on the company’s Q4 earnings call.

RELATED: Alarm.com to Ratchet Up Pursuit of ISP, Cable Market 

He said Alarm.com has already begun to integrate Icontrol into its own operations.

Trundle also spent some time explaining how the Connect business model differs from Alarm.com’s legacy business. Connect software, he said, is deployed and operated by the service provider in their own network operations center, meaning that they are on the hook to buy their own server capacity and cellular connectivity, and to manage the deployment with their own network operations personal. Connect charges a monthly per subscriber fee for its software, as Alarm.com does. However, Alarm.com’s historic turnkey business, largely focused on thousands of channel partners, includes all of those aforementioned services in its fee.

Going forward, Alarm.com will take direction from customers if they want to put more emphasis on Alarm.com’s legacy platform or put more of it into the Connect product.

Trundle said Alarm.com is "open minded” about the Piper retail/DIY smart home business. DIY has been a “good business for us,” he said. “We are probably not as conditioned to believe that retail DIY is a great place for us to be. So we're going to look at that carefully and look at the capabilities of the product on the Piper side and see if there's a fit for that product that's more synergistic with our traditional channel strategy.”

Alarm.com posted total revenues of $69.8 million, up 23% versus the year-ago quarter. SaaS and license revenue grew 21%, to $46.9 million.

For 2017, Alarm.com expects revenues of $322 million to $325 million.

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