Alarm.com (ALRM) 10-Q9 Aug 232023 Q2 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2023	Aug. 02, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
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)		49,906,142
Entity Central Index Key	0001459200
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus (Q1,Q2,Q3,FY)	Q2
Amendment Flag	false

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue:
Total revenue		$ 223,875	$ 212,845	$ 433,591	$ 418,282
Cost of revenue:
Total cost of revenue	[1]	86,367	87,336	162,539	177,423
Operating expenses:
Sales and marketing		23,772	22,933	50,417	46,125
General and administrative		28,799	29,309	57,298	53,303
Research and development		60,918	54,156	122,826	105,646
Amortization and depreciation		7,860	7,775	15,533	15,536
Total operating expenses		121,349	114,173	246,074	220,610
Operating income		16,159	11,336	24,978	20,249
Interest expense		(827)	(785)	(1,695)	(1,569)
Interest income		7,417	1,016	12,599	1,159
Other (expense) / income, net		(631)	105	(779)	118
Income before income taxes		22,118	11,672	35,103	19,957
Provision for income taxes		6,507	844	5,285	226
Net income		15,611	10,828	29,818	19,731
Net loss attributable to redeemable noncontrolling interests		188	14	397	190
Net income attributable to common stockholders		$ 15,799	$ 10,842	$ 30,215	$ 19,921
Net income per share:
Basic (in dollars per share)		$ 0.32	$ 0.22	$ 0.61	$ 0.40
Diluted (in dollars per share)		$ 0.30	$ 0.21	$ 0.58	$ 0.38
Weighted average common shares outstanding:
Basic (in shares)		49,859,615	49,931,689	49,723,012	50,068,176
Diluted (in shares)		54,446,275	54,757,020	54,423,047	55,054,970
SaaS and License
Revenue:
Total revenue		$ 140,432	$ 129,475	$ 275,826	$ 252,700
Cost of revenue:
Total cost of revenue	[1]	21,576	18,688	41,159	35,582
Hardware and Other
Revenue:
Total revenue		83,443	83,370	157,765	165,582
Cost of revenue:
Total cost of revenue	[1]	$ 64,791	$ 68,648	$ 121,380	$ 141,841

[1]Exclusive of amortization and depreciation shown in operating expenses below.

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 15,611	$ 10,828	$ 29,818	$ 19,731
Other comprehensive income
Foreign currency translation adjustment	658	0	828	0
Total other comprehensive income	658	0	828	0
Comprehensive income	16,269	10,828	30,646	19,731
Comprehensive loss attributable to redeemable noncontrolling interests	188	14	397	190
Comprehensive income attributable to common stockholders	$ 16,457	$ 10,842	$ 31,043	$ 19,921

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 627,041	$ 622,165
Accounts receivable, net of allowance for credit losses of $3,159 and $2,835, and net of allowance for product returns of $2,146 and $1,551 as of June 30, 2023 and December 31, 2022, respectively	123,285	124,283
Inventory	117,763	115,584
Other current assets, net of allowance for credit losses of $0 as of June 30, 2023 and December 31, 2022	29,748	29,056
Total current assets	897,837	891,088
Property and equipment, net	56,832	57,172
Intangible assets, net	87,841	82,458
Goodwill	153,997	148,183
Deferred tax assets	121,207	84,185
Operating lease right-of-use assets	28,136	28,933
Other assets, net of allowance for credit losses of $2 as of June 30, 2023 and December 31, 2022	36,870	37,356
Total assets	1,382,720	1,329,375
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	120,792	119,657
Accrued compensation	23,224	25,582
Deferred revenue	9,671	7,540
Operating lease liabilities	12,242	12,157
Total current liabilities	165,929	164,936
Deferred revenue	11,789	10,792
Convertible senior notes, net	491,940	490,370
Operating lease liabilities	25,452	27,380
Other liabilities	15,511	13,050
Total liabilities	710,621	706,528
Commitments and contingencies (Note 12)
Redeemable noncontrolling interests	27,868	23,988
Stockholders’ equity
Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares issued and outstanding as of June 30, 2023 and December 31, 2022	0	0
Common stock, $0.01 par value, 300,000,000 shares authorized; 51,525,244 and 50,985,454 shares issued; and 49,858,244 and 49,452,709 shares outstanding as of June 30, 2023 and December 31, 2022, respectively	515	510
Additional paid-in capital	518,249	497,199
Treasury stock, at cost; 1,667,000 and 1,532,745 shares as of June 30, 2023 and December 31, 2022, respectively	(90,719)	(83,993)
Accumulated other comprehensive income	828	0
Retained earnings	215,358	185,143
Total stockholders’ equity	644,231	598,859
Total liabilities, redeemable noncontrolling interests and stockholders’ equity	$ 1,382,720	$ 1,329,375

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss	$ 3,159	$ 2,835
Allowance for product returns	2,146	1,551
Other assets, allowance for credit loss, current	0	0
Other assets, allowance for credit loss	$ 2	$ 2
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)	51,525,244	50,985,454
Common stock, shares outstanding (in shares)	49,858,244	49,452,709
Treasury stock, shares repurchased (in shares)	1,667,000	1,532,745

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash flows from operating activities:
Net income	$ 29,818	$ 19,731
Adjustments to reconcile net income to net cash flows from operating activities:
Provision for credit losses on accounts receivable	616	547
Reserve for product returns	2,498	1,715
Recovery of credit losses on notes receivable	0	(78)
Inventory write-down	1,181	0
Amortization on patents and tooling	637	701
Amortization and depreciation	15,533	15,536
Amortization of debt issuance costs	1,570	1,560
Amortization of operating leases	5,621	5,065
Deferred income taxes	(36,870)	(22,734)
Change in fair value of contingent liability	27	0
Stock-based compensation	24,617	24,899
Gain on investment	0	(140)
Changes in operating assets and liabilities (net of business acquisitions):
Accounts receivable	(583)	(4,970)
Inventory	(523)	(33,045)
Other current and non-current assets	432	(2,485)
Accounts payable, accrued expenses and other current liabilities	(4,696)	10,046
Deferred revenue	3,105	2,404
Operating lease liabilities	(6,796)	(6,100)
Other liabilities	(2,920)	(394)
Cash flows from operating activities	33,267	12,258
Cash flows used in investing activities:
Business acquisition, net of cash acquired	(9,696)	0
Additions to property and equipment	(3,393)	(26,302)
Issuances of notes receivable	(300)	(3,000)
Receipt of payments on notes receivable	28	32
Capitalized software development costs	(115)	0
Purchase of investment in unconsolidated entity	(200)	0
Proceeds from sale of investment	0	140
Purchases of developed technology and other assets	(5,915)	0
Cash flows used in investing activities	(19,591)	(29,130)
Cash flows used in financing activities:
Payments of deferred consideration for acquisitions	(1,655)	0
Purchases of treasury stock, including transaction costs	(6,726)	(51,499)
Purchases of redeemable noncontrolling interest	(832)	0
Payments of acquired debt	(389)	0
Issuances of common stock from equity-based plans	1,513	1,663
Cash flows used in financing activities	(8,089)	(49,836)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(124)	0
Net increase / (decrease) in cash, cash equivalents and restricted cash	5,463	(66,708)
Cash, cash equivalents and restricted cash at beginning of the period	622,879	710,621
Cash, cash equivalents and restricted cash at end of the period	628,342	643,913
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	627,041	643,380
Restricted cash included in other current assets and other assets	1,301	533
Total cash, cash equivalents and restricted cash	$ 628,342	$ 643,913

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Impact of adoption	Common Stock	Additional Paid-In Capital	Additional Paid-In Capital Impact of adoption	Treasury Stock	Accumulated Other Comprehensive Income	Retained Earnings	Retained Earnings Impact of adoption
Beginning balance at Dec. 31, 2021	$ 12,888
Increase (Decrease) in Temporary Equity [Roll Forward]
Accretion adjustments of redeemable noncontrolling interest to redemption value	2,569
Net income / (loss) attributable to common stockholders	(176)
Ending balance at Mar. 31, 2022	15,281
Beginning balance (in shares) at Dec. 31, 2021			50,407,000
Beginning balance at Dec. 31, 2021	613,167	$ (46,543)	$ 504	$ 498,979	$ (56,515)	$ (5,149)		$ 118,833	$ 9,972
Beginning balance (in shares) at Dec. 31, 2021						147,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued in connection with equity-based plans (in shares)			85,000
Common stock issued in connection with equity-based plans	1,080		$ 1	1,079
Purchase of treasury stock (in shares)						354,000
Purchase of treasury stock	(23,331)					$ (23,331)
Stock-based compensation expense	12,110			12,110
Accretion adjustments of redeemable noncontrolling interest to redemption value	(2,569)			(2,569)
Net income / (loss) attributable to common stockholders	9,079							9,079
Ending balance (in shares) at Mar. 31, 2022			50,492,000
Ending balance at Mar. 31, 2022	562,993		$ 505	453,084		$ (28,480)		137,884
Ending balance (in shares) at Mar. 31, 2022						501,000
Beginning balance at Dec. 31, 2021	12,888
Ending balance at Jun. 30, 2022	16,127
Beginning balance (in shares) at Dec. 31, 2021			50,407,000
Beginning balance at Dec. 31, 2021	613,167	$ (46,543)	$ 504	498,979	$ (56,515)	$ (5,149)		118,833	$ 9,972
Beginning balance (in shares) at Dec. 31, 2021						147,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income	0
Ending balance (in shares) at Jun. 30, 2022			50,697,000
Ending balance at Jun. 30, 2022	561,283		$ 507	468,698		$ (56,648)		148,726
Ending balance (in shares) at Jun. 30, 2022						982,000
Beginning balance at Mar. 31, 2022	15,281
Increase (Decrease) in Temporary Equity [Roll Forward]
Accretion adjustments of redeemable noncontrolling interest to redemption value	860
Net income / (loss) attributable to common stockholders	(14)
Ending balance at Jun. 30, 2022	16,127
Beginning balance (in shares) at Mar. 31, 2022			50,492,000
Beginning balance at Mar. 31, 2022	562,993		$ 505	453,084		$ (28,480)		137,884
Beginning balance (in shares) at Mar. 31, 2022						501,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued in connection with equity-based plans (in shares)			205,000
Common stock issued in connection with equity-based plans	583		$ 2	581
Purchase of treasury stock (in shares)						481,000
Purchase of treasury stock	(28,168)					$ (28,168)
Reclassification of subsidiary long-term incentive plan liability related to modification	3,104			3,104
Stock-based compensation expense	12,789			12,789
Accretion adjustments of redeemable noncontrolling interest to redemption value	(860)			(860)
Net income / (loss) attributable to common stockholders	10,842							10,842
Other comprehensive income	0
Ending balance (in shares) at Jun. 30, 2022			50,697,000
Ending balance at Jun. 30, 2022	561,283		$ 507	468,698		$ (56,648)		148,726
Ending balance (in shares) at Jun. 30, 2022						982,000
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	50,985,454		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	1,532,745					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 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	50,985,454		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	1,532,745					1,533,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income	$ 828
Ending balance (in shares) at Jun. 30, 2023	51,525,244		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					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
Purchase of treasury stock (in shares)						134,000
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 income	$ 658						658
Ending balance (in shares) at Jun. 30, 2023	51,525,244		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					1,667,000

Organization

Organization	6 Months Ended
Organization	Jun. 30, 2023
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. The number of our service provider partners exceeded 11,000 as of December 31, 2022. 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 and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
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, 2022 included in our Annual Report on Form 10-K filed with the SEC on February 24, 2023, or the Annual Report. The condensed consolidated balance sheet as of December 31, 2022 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, such as the COVID-19 pandemic, and geopolitical upheaval, such as Russia’s incursion into Ukraine, 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, 2023 are not necessarily indicative of the results that can be expected for our entire fiscal year ending December 31, 2023, 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 and 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, 2023 from those disclosed in our Annual Report. Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income refers to gains and losses that are recorded as an element of stockholders' equity and excluded from net income. Our other comprehensive income consists of foreign currency translation adjustments. Foreign Currency For foreign operations where substantially all monetary transactions are in the local currency, we use the local currency as our functional currency. For these foreign operations, assets and liabilities are translated at period-end exchange rates and revenue and expense items are translated at weighted-average exchange rates prevailing during the periods being reported. The effects of translating financial statements of foreign operations into our reporting currency are recognized as a cumulative translation adjustment within accumulated other comprehensive income, a separate component of stockholders’ equity. Gains or losses from foreign currency remeasurements that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in our results of operations. Redeemable Noncontrolling Interests Noncontrolling interests with redemption features that are not solely within our control are considered redeemable noncontrolling interests. Our redeemable noncontrolling interests relate to our 86% equity ownership interest in PC Open Incorporated, a Washington corporation, doing business as OpenEye and our 85% equity ownership interest in Noonlight, Inc., or Noonlight, a Delaware corporation. The OpenEye and Noonlight stockholder agreements contain a put option that gives the minority stockholders the right to sell their shares to us based on the fair value of the shares and also contain a call option that gives us the right to purchase the remaining shares from the minority stockholders based on the fair value of the shares. The put and call options related to OpenEye can each be exercised beginning in the first quarter of 2023. The put and call options related to Noonlight can each be exercised beginning in the first quarter of 2026. These redeemable noncontrolling interests are considered temporary equity and we report them between liabilities and stockholders’ equity in the consolidated balance sheets. The amount of the net income or loss attributable to the redeemable noncontrolling interests is recorded in the consolidated statements of operations and the accretion of the redemption values is recorded as an adjustment to additional paid-in capital. We account for purchases of redeemable noncontrolling interest as a component of stockholders' equity when control is maintained. We recognize the difference between the consideration paid for the acquired redeemable noncontrolling interest and the fair value of the acquired redeemable noncontrolling interest as an adjustment to additional paid-in capital.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	6 Months Ended
Revenue from Contracts with Customers	Jun. 30, 2023
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 Six Months Ended 2023 2022 2023 2022 Beginning of period balance $ 13,879 $ 4,480 $ 13,975 $ 4,520 Commission costs and upfront payments to a customer capitalized in period 1,547 3,921 3,220 4,727 Amortization of contract assets (1,845) (986) (3,614) (1,832) End of period balance $ 13,581 $ 7,415 $ 13,581 $ 7,415 Contract Liabilities The changes in our contract liabilities are as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Beginning of period balance $ 20,231 $ 15,619 $ 18,332 $ 14,837 Revenue deferred in period 5,719 5,387 11,659 9,377 Revenue recognized from amounts included in contract liabilities (4,490) (3,765) (8,531) (6,973) End of period balance $ 21,460 $ 17,241 $ 21,460 $ 17,241

Accounts Receivable, Net

Accounts Receivable, Net	6 Months Ended
Accounts Receivable, Net	Jun. 30, 2023
Receivables [Abstract]
Accounts Receivable, Net	Accounts Receivable, Net The components of accounts receivable, net are as follows (in thousands): June 30, December 31, Accounts receivable $ 128,590 $ 128,669 Allowance for credit losses (3,159) (2,835) Allowance for product returns (2,146) (1,551) Accounts receivable, net $ 123,285 $ 124,283 For the three and six months ended June 30, 2023, we recorded a provision for credit losses of $0.1 million and $0.6 million, respectively, as compared to $0.4 million and $0.5 million for the same periods in the prior year. For the three and six months ended June 30, 2023, we recorded a reserve for product returns of $1.3 million and $2.5 million in our hardware and other revenue, respectively, as compared to $0.9 million and $1.7 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 - Accounts Receivable 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. 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, 2023, 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, 2023, as compared to historical periods. 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, 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. For the three and six months ended June 30, 2022, we recorded credit loss expense of $0.4 million and $0.3 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. The changes in our allowance for credit losses for accounts receivable are as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended Alarm.com All Other Alarm.com All Other Alarm.com All Other Alarm.com All Other Beginning of period balance $ (3,102) $ (97) $ (2,122) $ (31) $ (2,755) $ (80) $ (2,035) $ (133) Recovery of / (provision for) expected credit losses 19 (96) (464) (29) (487) (130) (619) 72 Write-offs 115 2 136 2 274 19 204 3 End of period balance $ (2,968) $ (191) $ (2,450) $ (58) $ (2,968) $ (191) $ (2,450) $ (58)

Inventory

Inventory	6 Months Ended
Inventory	Jun. 30, 2023
Inventory Disclosure [Abstract]
Inventory	Inventory The components of inventory are as follows (in thousands): June 30, December 31, Raw materials $ 38,218 $ 38,098 Work-in-process 420 — Finished goods 79,125 77,486 Total inventory $ 117,763 $ 115,584

Acquisitions

Acquisitions	6 Months Ended
Acquisitions	Jun. 30, 2023
Business Combination and Asset Acquisition [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 not finalized as of the filing date of this Quarterly Report on Form 10-Q and is pending the final determination of the tax adjustments. The overall impacts to our condensed consolidated financial statements were not considered material for the three and six months ended June 30, 2023. Acquisition of a Business - Noonlight On September 23, 2022, Alarm.com Incorporated acquired 85% of the issued and outstanding shares of capital stock of Noonlight. Noonlight provides a connected safety and event management software and services platform that enables new applications and provides enhanced emergency response capabilities. We believe the acquisition of Noonlight will enhance our comprehensive suite of interactive cloud-based services and allow us to expand markets for emergency response services as well as accelerate innovation in those services. In consideration for the purchase of 85% of the issued and outstanding shares of capital stock of Noonlight, we paid $31.9 million in cash on September 23, 2022, after deducting $1.5 million related to an outstanding loan issued to Noonlight during May 2022 and $4.9 million related to agreed holdback provisions. The working capital adjustment was finalized during the first quarter of 2023 and $0.4 million was paid during the second quarter of 2023. The remaining amount of the holdback of $4.6 million is expected to be paid to the stockholders of Noonlight by the end of the first quarte r of 2024, subject to off set for any indemnification obligations. The table below sets forth the purchase consideration and the fair value allocation of the tangible and intangible net assets acquired (in thousands): September 23, 2022 Calculation of Purchase Consideration: Cash paid, net of working capital adjustment $ 31,805 Outstanding principal and interest of loan provided to Noonlight 1,537 Holdback consideration 4,910 Total consideration $ 38,252 Tangible and Intangible Net Assets: Cash $ 188 Accounts receivable 291 Other current and non-current assets 200 Property and equipment 45 Deferred tax assets 424 Developed technology 9,335 Trade names 150 Accounts payable (321) Accrued expenses and other current liabilities (318) Deferred revenue (67) Redeemable noncontrolling interest (6,770) Goodwill 35,095 Total tangible and intangible net assets $ 38,252 Goodwill of $35.1 million reflects the value of acquired workforce and synergies we expect to achieve from integrating Noonlight's suite of emergency response cloud-managed application program interfaces into our existing comprehensive suite of interactive cloud-based services. None of the goodwill recognized is expected to be deductible for income tax purposes in future periods. We allocate goodwill to reporting units based on expected benefit from synergies and have allocated the goodwill to the Alarm.com segment. Fair Value of Net Assets Acquired and Intangibles The acquired activities and assets in the purchase of Noonlight constituted a business and with the exception of contract liabilities accounted for under Topic 606, in accordance with Accounting Standards Codification, or ASC 805, " Business Combinations ," the assets and liabilities were recorded at their respective fair values as of September 23, 2022. We developed the fair value of intangible net assets using a multi-period excess earnings method for developed technology and the relief from royalty method for the trade name. Developed Technology Developed technology primarily consists of intellectual property of proprietary software that is marketed for sale. We valued the developed technology using the multi-period excess earnings method, an income approach. The significant assumptions used in the income approach include estimates about future expected cash flows from the developed technology, the obsolescence factor and the discount rate. We are amortizing the Noonlight developed technology, valued at $9.3 million, on an attribution method based on the discounted cash flows of the model over an estimated useful life of seven years. Trade Names We valued the trade names acquired using a relief from royalty method. The significant assumptions used in the income approach include future expected cash flows from the trade name, the royalty rate and the discount rate. We are amortizing the trade names, valued at $0.2 million, on an attribution basis derived from the discounted cash flows of the model over an estimated useful life of five years. Redeemable Noncontrolling Interest We have a redeemable noncontrolling interest related to our 85% equity ownership interest in Noonlight. The Noonlight stockholder agreement contains a put option that gives the minority Noonlight stockholders the right to sell their remaining 15% equity ownership interest to us based on the fair value of the shares and also contains a call option that gives us the right to purchase the remaining Noonlight shares from the minority Noonlight stockholders based on the fair value of the shares. The put and call options can each be exercised beginning in the first quarter of 2026. This redeemable noncontrolling interest was recorded at fair value on September 23, 2022, by applying the income approach using unobservable inputs for projected cash flows, including projected financial results and a discount rate, which are considered Level 3 inputs. This redeemable noncontrolling interest is considered temporary equity and we report it between liabilities and stockholders’ equity in the condensed consolidated balance sheets. The redemption value of the Noonlight noncontrolling interest was $6.8 million as of September 23, 2022 and $6.5 million as of June 30, 2023. Business Combinations in Operations - Noonlight The operations of the Noonlight business combination discussed above were included in the condensed consolidated financial statements as of the acquisition date. The pro forma information as well as the revenue and net losses of the business combination were not material to the condensed consolidated financial statements in the year of acquisition.

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net	6 Months Ended
Goodwill and Intangible Assets, Net	Jun. 30, 2023
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, 2023 $ 148,183 $ — $ 148,183 Goodwill acquired 7,200 — 7,200 Measurement period adjustments (1,760) — (1,760) Foreign currency translation adjustment 374 — 374 Balance as of June 30, 2023 $ 153,997 $ — $ 153,997 On January 18, 2023, we acquired 100% of the issued and outstanding shares of capital stock of EBS and initially recorded $7.2 million of goodwill in the Alarm.com segment. The measurement period adjustments relate to the Noonlight and EBS working capital and tax adjustments during the three and six months ended June 30, 2023. The following table reflects changes in the net carrying amount of the components of intangible assets (in thousands): Customer Developed Trade Name Capitalized Software Development Costs Total Balance as of January 1, 2023 $ 47,522 $ 33,553 $ 1,383 $ — $ 82,458 Intangible assets acquired 2,395 11,583 537 — 14,515 Capitalized software development costs — — — 149 149 Amortization (5,265) (3,677) (339) — (9,281) Balance as of June 30, 2023 $ 44,652 $ 41,459 $ 1,581 $ 149 $ 87,841 We recorded $4.7 million and $9.3 million of amortization related to our intangible assets for the three and six months ended June 30, 2023, respectively, as compared to $4.5 million and $9.1 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, 2023 and 2022. During the six months ended June 30, 2022, we wrote-off $0.7 million in fully amortized intangible assets in the Alarm.com segment that were acquired in 2014 related to customer relationships, developed technology, trade name and other intangible assets that no longer existed as of January 1, 2022. 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, 2023 Gross Accumulated Net Weighted- Customer relationships $ 128,280 $ (83,628) $ 44,652 6.6 Developed technology 70,061 (28,602) 41,459 5.2 Trade name 4,474 (2,893) 1,581 2.8 Capitalized software development costs 149 — 149 3.0 Total intangible assets $ 202,964 $ (115,123) $ 87,841 5.9 December 31, 2022 Gross Accumulated Net Weighted- Customer relationships $ 125,885 $ (78,363) $ 47,522 7.0 Developed technology 58,478 (24,925) 33,553 5.8 Trade name 3,937 (2,554) 1,383 2.4 Total intangible assets $ 188,300 $ (105,842) $ 82,458 6.5

Other Assets

Other Assets	6 Months Ended
Other Assets	Jun. 30, 2023
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. The amended subordinated credit agreement with the affiliated entity of the distribution partner 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. As of June 30, 2023 and December 31, 2022, $4.3 million and $4.0 million of the notes receivable balance related to the subordinated credit agreement was included in other assets in our condensed consolidated balance sheets, respectively. For the three and six months ended June 30, 2023, we recognized $0.8 million and $1.6 million of revenue from the distribution partner associated with this loan, respectively, as compared to $0.9 million and $1.5 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, 2023 and December 31, 2022, $1.1 million of principal was outstanding from the service provider partner under the loan agreement. For three and six months ended June 30, 2023 and 2022, 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, 2023 and December 31, 2022, $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, 2023 and 2022, 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, 2023 and December 31, 2022, 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, 2023 and December 31, 2022, 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, 2023 and December 31, 2022, our investment in the technology partner was $5.1 million. Allowance for Credit Losses - Notes Receivable We identified the following two portfolio segments for our notes receivable: (i) loan receivables and (ii) hardware financing receivables. There were no changes to our portfolio segments for our notes receivable during the three and six months ended June 30, 2023, and 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. There were no hardware financing receivables outstanding as of June 30, 2023 and December 31, 2022. 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, 2023 and December 31, 2022 was less than $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 . We did not write-off any accrued interest receivable during the three and six months ended June 30, 2023 and 2022. There were no purchases or sales of financial assets during the three and six months ended June 30, 2023 and 2022. There were no significant changes in the amount of note receivable write-offs during the three and six months ended June 30, 2023, as compared to historical periods. The changes in our allowance for credit losses for notes receivable are as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended Loan Hardware Loan Hardware Loan Hardware Loan Hardware Beginning of period balance $ (2) $ — $ (1) $ (1) $ (2) $ — $ (79) $ (1) Recovery of / (provision for) expected credit losses — — (1) 1 — — 77 1 Write-offs — — — — — — — — End of period balance $ (2) $ — $ (2) $ — $ (2) $ — $ (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, 2023 Loan Receivables: 2023 2022 2021 2020 2019 Prior Total Current $ — $ 1,500 $ — $ 1,066 $ 1 $ 4,259 $ 6,826 30-59 days past due — — — — — — — 60-89 days past due — — — — — — — 90-119 days past due — — — — — — — 120+ days past due — — — — — — — Total $ — $ 1,500 $ — $ 1,066 $ 1 $ 4,259 $ 6,826 December 31, 2022 Loan Receivables: 2022 2021 2020 2019 2018 Prior Total Current $ 1,500 $ — $ 1,093 $ 1 $ — $ 4,015 $ 6,609 30-59 days past due — — — — — — — 60-89 days past due — — — — — — — 90-119 days past due — — — — — — — 120+ days past due — — — — — — — Total $ 1,500 $ — $ 1,093 $ 1 $ — $ 4,015 $ 6,609 There were no notes receivable placed on nonaccrual status as of June 30, 2023 and December 31, 2022. During the three and six months ended June 30, 2023 and 2022, there was no interest income recognized related to notes receivable that were in nonaccrual status. As of June 30, 2023 and December 31, 2022, there were no notes receivable placed in nonaccrual status for which there was not a related allowance for credit losses. As of June 30, 2023 and December 31, 2022, 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, 2023 and December 31, 2022, $14.7 million and $14.5 million of prepaid expenses were included in other current assets, respectively, primarily related to software licenses and long lead-time parts related to our inventory.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jun. 30, 2023
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, 2023 $ 612,955 $ — $ — $ 612,955 Money market accounts as of December 31, 2022 510,326 — — 510,326 Liabilities: Contingent consideration liability from acquisition as of June 30, 2023 $ — $ — $ 2,020 $ 2,020 Contingent consideration liability from acquisition as of December 31, 2022 — — — — The following table summarizes the change in fair value of the Level 3 liabilities with significant unobservable inputs (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Contingent Consideration Liability from Acquisition Subsidiary Long-Term Incentive Plan Contingent Consideration Liability from Acquisition Subsidiary Long-Term Incentive Plan Beginning of period balance $ 2,006 $ 3,104 $ — $ 3,351 Acquired liabilities — — 1,993 — Changes in fair value included in earnings 14 — 27 (247) Reclassification to additional paid in capital upon modification — (3,104) — (3,104) End of period balance $ 2,020 $ — $ 2,020 $ — As of June 30, 2023, $611.7 million of our money market accounts was included in cash and cash equivalents and $1.3 million was included in other assets in our condensed consolidated balance sheets. As of December 31, 2022, $509.6 million was included in cash and cash equivalents and $0.7 million was included in other assets in our condensed consolidated balance sheets. Our money market assets are valued using quoted prices in active markets. See Note 12 for the carrying amount and estimated fair value of our convertible senior notes as of June 30, 2023 and December 31, 2022. The liability for the subsidiary long-term incentive plan consisted of the potential cash payment contingent upon meeting certain financial milestones related to the agreement established with certain employees of one of our subsidiaries. This incentive plan was established in November 2017 and the amount of compensation awarded to employees depended on the fair market value of the subsidiary, which was determined in part by the subsidiary’s projected financial results. We accounted for the subsidiary long-term incentive plan using fair value and established liabilities for the future payments under the terms of the incentive plan based on estimating revenue, EBITDA and EBITDA margin of the subsidiary over the period of the incentive plan through the anticipated achievement of the milestones. We estimated the fair value of the liability by using a Monte Carlo simulation model which involves several Level 3 unobservable inputs. The significant unobservable inputs used in the valuation included a weighted average revenue volatility and the revenue risk adjustment. The revenue volatility was weighted using revenue volatility results from the subsidiary’s peer group as well as market transaction metrics. The revenue risk adjustment was calculated using capital structure allocations from the subsidiary’s peer group, market transaction metrics as well as United States Treasury yields. In May 2022, we terminated the subsidiary long-term incentive plan. The fair value of the liability related to the subsidiary long-term incentive plan as of the termination date was consistent with the liability as of March 31, 2022. Concurrent with the termination of the subsidiary long-term incentive plan, we granted performance-based restricted stock units to those employees who previously participated in the subsidiary long-term incentive plan. We accounted for the termination of the subsidiary long-term incentive plan and concurrent grant of performance-based restricted stock units as a modification of the original subsidiary long-term incentive plan. As a result, we reclassified the $3.1 million liability related to the subsidiary long-term incentive plan to additional paid-in capital during the three months ended June 30, 2022. Additionally, we recorded $1.2 million in incremental compensation costs as additional stock-based compensation expense to the applicable operating expense category based on the respective employee’s function (sales and marketing, general and administrative or research and development) during the three months ended June 30, 2022. The incremental compensation costs represented the excess of the fair value of the performance-based restricted stock units over the fair value of the subsidiary long-term incentive plan as of the modification date of the subsidiary long-term incentive plan. 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. 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, 2023, the contingent consideration liability did not materially change from the acquisition date fair value of $2.0 million as there were no changes in the expected probability of achievement for the performance targets. The unobservable inputs used in the valuation as of June 30, 2023 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 6.5%, weighted by the probability of achievement of the performance targets at various dates, including a range of 6.4% to 6.6%. 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 Level 3 or reclassifications between levels of the fair value hierarchy during the three and six months ended June 30, 2023 and 2022. We also monitor the value of the investments for other-than-temporary impairment on a quarterly basis. No other-than-temporary impairments occurred during the three and six months ended June 30, 2023 and 2022.

Leases

Leases	6 Months Ended
Leases	Jun. 30, 2023
Leases [Abstract]
Leases	Leases We lease 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 Six Months Ended 2023 2022 2023 2022 Operating lease cost $ 2,871 $ 2,592 $ 5,621 $ 5,065 Cash paid for amounts included in the measurement of operating lease liabilities 3,434 3,125 6,796 6,100 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 188 3,930 4,115 5,712 June 30, December 31, Weighted-average remaining lease term — operating leases 3.4 years 3.4 years Weighted-average discount rate — operating leases 4.5 % 3.9 % Maturities of lease liabilities are as follows (in thousands): Year Ended December 31, Operating Leases (1) Remainder of 2023 $ 7,180 2024 13,185 2025 11,213 2026 6,756 2027 1,610 2028 and thereafter 2,386 Total lease payments 42,330 Less: imputed interest (2) 4,636 Present value of lease liabilities $ 37,694 _______________ (1) Excludes $1.5 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, 2023 or December 31, 2022. 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, 2023 and 2022.

Liabilities

Liabilities	6 Months Ended
Liabilities	Jun. 30, 2023
Payables and Accruals [Abstract]
Liabilities	Liabilities The components of accounts payable, accrued expenses and other current liabilities are as follows (in thousands): June 30, December 31, Accounts payable $ 57,490 $ 53,121 Accrued expenses 16,904 17,539 Income taxes payable 32,742 43,576 Holdback liability from business combinations 4,577 — Other current liabilities 9,079 5,421 Accounts payable, accrued expenses and other current liabilities $ 120,792 $ 119,657 The components of other liabilities are as follows (in thousands): June 30, December 31, Holdback liability from business combinations and asset acquisition $ 2,780 $ 4,560 Contingent consideration liability from acquisition 2,020 — Other liabilities 10,711 8,490 Other liabilities $ 15,511 $ 13,050

Debt, Commitments and Contingen

Debt, Commitments and Contingencies	6 Months Ended
Debt, Commitments and Contingencies	Jun. 30, 2023
Debt, Commitments and Contingencies Disclosure [Abstract]
Debt, Commitments and Contingencies	Debt, Commitments and ContingenciesThe debt, commitments and contingencies described below would require us, or our subsidiaries, to make payments to third parties under certain circumstances. Convertible Senior 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 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 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 not redeem the 2026 Notes prior to January 20, 2024. 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 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 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 Indenture), as the case may be. If we undergo a fundamental change (as defined in the Indenture), subject to certain exceptions and except as described in the 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 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, 2023 and December 31, 2022, the fair value of our 2026 Notes was $426.9 million and $411.5 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 $51.68 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, 2023. The net carrying amount of the liability component of the 2026 Notes is as follows (in thousands): June 30, December 31, Principal $ 500,000 $ 500,000 Unamortized debt issuance costs (8,060) (9,630) Net carrying amount $ 491,940 $ 490,370 Interest expense related to the 2026 Notes is as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Amortization of debt issuance costs $ 786 $ 780 $ 1,570 $ 1,560 Total interest expense $ 786 $ 780 $ 1,570 $ 1,560 Acquired Debt - EBS On January 18, 2023, one of our wholly-owned subsidiaries acquired 100% of the issued and outstanding shares of capital stock of EBS. As part of this acquisition we acquired $2.9 million of outstanding debt, which decreased to $2.7 million as of June 30, 2023. As of June 30, 2023, all of the acquired debt was included in accounts payable, accrued expenses and other current liabilities within our condensed consolidated balance sheets. 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 June 2, 2015, Vivint, Inc., or Vivint, filed a lawsuit against us in U.S. District Court, District of Utah, alleging that our technology directly and indirectly infringes six patents that Vivint purchased. Vivint is seeking permanent injunctions, enhanced damages and attorneys' fees. We answered the complaint on July 23, 2015. Among other things, we asserted defenses based on non-infringement and invalidity of the patents in question. In 2017 and 2019, the U.S. Patent Trial and Appeal Board, or PTAB, issued final written decisions in inter partes reviews finding all or some of the claims in five of the asserted patents unpatentable. These decisions were affirmed on appeal. Discovery has closed with respect to seven claims in three of the asserted patents. Vivint has moved for partial summary judgment and Alarm.com has moved for summary judgment as to those seven claims; both motions are pending decision. Discovery as to the six asserted claims from the fourth asserted patent has been stayed to permit Alarm.com to move for summary judgment as to these six claims as well. No trial date has been set. Should Vivint prevail in proving Alarm.com infringes one or more of its patent claims, we could be required to pay damages of Vivint’s lost profits and/or a reasonable royalty for sales of our solution. Since all remaining patent claims in the litigation have expired, Vivint shall not be entitled to injunctive relief as a remedy in this matter. While we believe we have valid defenses to Vivint’s claims, any of these outcomes could result in a material adverse effect on our business. Based on currently available information, we have determined a loss is not probable or reasonably estimable at this time. Further related to Vivint, on October 27, 2022, we filed a demand for arbitration of a dispute arising under the Patent Cross License Agreement between Alarm.com and Vivint executed in November 2013. Vivint has stopped paying license fees to Alarm.com under the agreement. Vivint had been paying the required license fees to Alarm.com since the agreement was executed in November 2013. Alarm.com disputes Vivint's refusal of payment and is seeking continued payments of license fees in the arbitration, as well as interest and declaratory relief. There can be no assurance that Alarm.com will be successful in the arbitration proceedings. As a result of Vivint’s refusal to pay license fees under the agreement, which began during the fourth quarter of 2022, SaaS and license revenue and total revenue will continue to be lowered by approximately $6.0 million on a quarterly basis. We also believe that quarterly earnings and cash flow will continue to be impacted by the aforementioned $6.0 million, plus additional legal fees. We also filed a lawsuit against Vivint on January 4, 2023 in U.S. District Court, Eastern District of Texas, alleging that Vivint infringes 15 of our patents. Since then, we have voluntarily dismissed without prejudice the infringement claims with respect to one of the patents, leaving 14 asserted patents. The case is docketed as No. 2:23-CV-0004-JRG-RSP (E.D. Tex.). We are seeking compensatory and enhanced damages, a permanent injunction and other relief. Vivint filed a partial motion to dismiss the complaint on February 27, 2023 which we have opposed. On March 8, 2023, Vivint filed counterclaims in the action alleging that Alarm.com’s products and services directly and indirectly infringe 14 patents owned by Vivint. Most of Vivint’s counterclaims also name our service provider ADT LLC as a defendant. Vivint is seeking permanent injunctions, enhanced damages and attorneys' fees. We answered the complaint on April 28, 2023. Among other things, we asserted defenses based on non-infringement and invalidity of Vivint’s patents. Trial is scheduled to begin on September 9, 2024. While we believe we have valid defenses to Vivint’s counterclaims, 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 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 permanent injunctions, enhanced damages and attorneys' fees. We moved to dismiss the case for failure to state a claim on March 28, 2022. 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. Four of the asserted patents are in ex parte reexamination proceedings at the PTO, and all claims of the fifth were found unpatentable by the PTAB in inter partes review on April 18, 2022. Also on April 18, 2022, the district court stayed the case at the request of the parties pending the disposition of 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. 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 are incurring costs associated with the indemnification of our service provider ADT, LLC in ongoing patent infringement suits. On February 25, 2021, Vivint filed a lawsuit against ADT LLC a/k/a ADT LLC of Delaware d/b/a ADT Security Services in U.S. District Court, District of Utah, alleging that ADT Pulse, Control, and Blue each infringe one or more patents owned by Vivint. Vivint is seeking damages and attorneys’ fees. Vivint filed a second amended complaint on March 8, 2022. ADT answered the second amended complaint on March 22, 2022, asserted defenses based on non-infringement and invalidity of all five asserted patents and counterclaimed for declaratory judgement of invalidity of all five asserted patents. The PTAB granted inter partes review of two of the asserted patents at ADT's request. On June 17, 2022, the court entered an order staying the case in view of the pending proceedings before the PTAB, with the exception of certain discovery of source code. In decisions issued in February and March 2023, the PTAB found all challenged claims of the two patents under review unpatentable. Vivint filed appeals of the PTAB decisions on April 13, 2023 and May 30, 2023. Should Vivint prevail on the claims that one or more elements of ADT’s products infringe, we could be required to indemnify ADT for damages in the form of a reasonable royalty or ADT 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 we are unable to design around such patents, and 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. We believe there are valid defenses to the claims made by Vivint. Based on currently available information, we have determined a loss is not probable or reasonably estimable at this time. We are also incurring costs associated with the indemnification of our service provider Monitronics International, Inc. d/b/a Brinks in ongoing patent infringement suits. On November 4, 2022, January 13, 2023 and April 18, 2023, IOT Innovations LLC, or IOT, sued Monitronics in U.S. District Court, Eastern District of Texas, alleging patent infringement of certain products and services sold by Monitronics. Together, IOT has asserted infringement of 26 patents and is seeking permanent injunctions, enhanced damages and attorneys' fees. Monitronics filed a Motion to Dismiss the first-filed case for lack of venue on January 24, 2023 and the second-filed case on March 24, 2023. The court issued a scheduling order in the first-filed case on July 18, 2023 and trial is scheduled for October 7, 2024. Trial dates are not yet set in the second- and third-filed cases. Should IOT prevail on the claims that one or more elements of Monitronics’ products or services infringe, we could be required to indemnify Monitronics for damages in the form of a reasonable royalty or Monitronics 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 we are unable to design around such patents, and 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.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
Stockholders' Equity	Jun. 30, 2023
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Stock Repurchase Programs On December 3, 2020, our board of directors authorized a stock repurchase program, under which we were authorized to purchase up to an aggregate of $100.0 million of our outstanding common stock during the three-year period ending December 3, 2023. No shares of our common stock were repurchased under this program during the three and six months ended June 30, 2023. During the three and six months ended June 30, 2022, we repurchased 480,531 and 834,654 shares of our common stock under this program for $28.2 million and $51.5 million, respectively, which includes applicable commissions and fees.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
Stock-Based Compensation	Jun. 30, 2023
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 Six Months Ended 2023 2022 2023 2022 Sales and marketing $ 892 $ 1,440 $ 1,924 $ 2,498 General and administrative 3,468 3,947 6,613 7,182 Research and development 7,571 7,402 16,080 15,219 Total stock-based compensation expense $ 11,931 $ 12,789 $ 24,617 $ 24,899 The following table summarizes the components of non-cash stock-based compensation expense (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Stock options $ 1,071 $ 950 $ 1,983 $ 1,728 Restricted stock units 10,819 11,794 22,541 23,078 Employee stock purchase plan 41 45 93 93 Total stock-based compensation expense $ 11,931 $ 12,789 $ 24,617 $ 24,899 Tax (shortfall) / windfall benefit from stock-based awards $ (669) $ 504 $ (691) $ 1,033 We granted 172,000 and 193,400 stock options pursuant to our 2015 Equity Incentive Plan during the three and six months ended June 30, 2023, respectively, as compared to 95,000 stock options for the same periods in the prior year. There were 12,184 and 83,135 stock options exercised during the three and six months ended June 30, 2023, respectively, as compared to 25,242 and 39,262 stock options for the same periods in the prior year. There was an aggregate of 103,522 and 186,397 restricted stock units without performance conditions granted to certain of our employees and directors during the three and six months ended June 30, 2023, respectively, as compared to an aggregate of 433,881 and 590,424 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 certain of our employees during the three and six months ended June 30, 2023, as compared to zero and 71,934 restricted stock units with performance conditions for the same periods in the prior year. There were 226,865 and 393,950 restricted stock units without performance conditions that vested during the three and six months ended June 30, 2023, respectively, as compared to 179,998 and 237,495 restricted stock units without performance conditions vested during the same periods in the prior year. There were 30,406 and 39,406 restricted stock units with performance conditions that vested during the three and six months ended June 30, 2023, respectively, as compared to no restricted stock units with performance conditions vested for the same periods in the prior year.

Earnings Per Share

Earnings Per Share	6 Months Ended
Earnings Per Share	Jun. 30, 2023
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 Six Months Ended Numerator: 2023 2022 2023 2022 Net income $ 15,611 $ 10,828 $ 29,818 $ 19,731 Net loss attributable to redeemable noncontrolling interests 188 14 397 190 Net income attributable to common stockholders - basic (A) 15,799 10,842 30,215 19,921 Add back interest expense, net of tax, attributable to convertible senior notes 591 587 1,181 1,173 Net income attributable to common stockholders - diluted (B) $ 16,390 $ 11,429 $ 31,396 $ 21,094 Denominator: Weighted average common shares outstanding — basic (C) 49,859,615 49,931,689 49,723,012 50,068,176 Dilutive effect of convertible senior notes, stock options and restricted stock units 4,586,660 4,825,331 4,700,035 4,986,794 Weighted average common shares outstanding — diluted (D) 54,446,275 54,757,020 54,423,047 55,054,970 Net income per share: Basic (A/C) $ 0.32 $ 0.22 $ 0.61 $ 0.40 Diluted (B/D) $ 0.30 $ 0.21 $ 0.58 $ 0.38 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 Six Months Ended 2023 2022 2023 2022 Stock options 602,135 329,826 602,135 327,959 Restricted stock units 253,214 314,174 152,817 356,290 Our redeemable noncontrolling interests are related to our 86% equity ownership interests in OpenEye, and our 85% equity ownership interest in Noonlight. See Note 6 for details on the put option and call option contained in the Noonlight stockholder agreement. We use the if-converted method when calculating the dilutive impact of the 2026 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, 2023 and 2022. Additionally, we included $0.6 million and $1.2 million of 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, 2023 and 2022, respectively.

Significant Service Providers a

Significant Service Providers and Distributors	6 Months Ended
Significant Service Providers and Distributors	Jun. 30, 2023
Risks and Uncertainties [Abstract]
Significant Service Providers and Distributors	Significant Service Providers and Distributors During the three and six months ended June 30, 2023, our 10 largest revenue service provider partners or distributors accounted for 50.0% of our consolidated revenue, as compared to 48% and 49%, respectively, 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, 2023 and 2022. One service provider partner in the Alarm.com segment represented more than 10% of accounts receivable as of June 30, 2023. Two service provider partners or distributors in the Alarm.com segment each represented greater than 10% of accounts receivable as of December 31, 2022.

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2023
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, 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 and six months ended June 30, 2022, we recorded a provision for income taxes of $0.8 million and $0.2 million, respectively, resulting in an effective income tax rate of 7.2% and 1.1% for those periods. For the three months ended June 30, 2023, our effective tax rate was above the 21.0% statutory rate primary 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. For the three and six months ended June 30, 2022, our effective tax rate was below the 21.0% statutory rate primarily due to research and development tax credits claimed, tax windfall benefits from employee stock-based compensation and the foreign derived intangible income deduction, partially offset by the impact of state taxes, foreign withholding taxes and other nondeductible expenses. 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 was $2.6 million as of December 31, 2022 and increased to $2.8 million as of June 30, 2023. 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 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. We recorded an increase to the unrecognized tax benefits liability of $1.1 million primarily for research and development tax credits claimed during the six months ended June 30, 2022. 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, both of which are ongoing. The anticipated completion date of the Internal Revenue Service examinations cannot be estimated at this time. As of June 30, 2023 and December 31, 2022, our condensed consolidated balance sheets included a $0.3 million accrual for total interest expense related to unrecognized tax benefits. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. 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 as of June 30, 2023.

Segment Information

Segment Information	6 Months Ended
Segment Information	Jun. 30, 2023
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 94% of our revenue, net of intersegment eliminations, for each of the three and six months ended June 30, 2023, as compared to 94% and 95%, respectively, 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, 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 Three Months Ended June 30, 2022 Alarm.com Other Intersegment Alarm.com Intersegment Other Total SaaS and license revenue $ 119,128 $ 10,347 $ — $ — $ 129,475 Hardware and other revenue 82,158 2,654 (1,344) (98) 83,370 Total revenue 201,286 13,001 (1,344) (98) 212,845 Operating income / (loss) 16,918 (5,725) 168 (25) 11,336 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 Six Months Ended June 30, 2022 Alarm.com Other Intersegment Alarm.com Intersegment Other Total SaaS and license revenue $ 234,476 $ 18,224 $ — $ — $ 252,700 Hardware and other revenue 163,379 4,958 (2,243) (512) 165,582 Total revenue 397,855 23,182 (2,243) (512) 418,282 Operating income / (loss) 29,671 (9,728) 354 (48) 20,249 Alarm.com Other Intersegment Alarm.com Intersegment Other Total Assets as of June 30, 2023 $ 1,430,105 $ 39,640 $ (87,046) $ 21 $ 1,382,720 Assets as of December 31, 2022 1,366,343 53,927 (90,929) 34 1,329,375 Our SaaS and license revenue for the Alarm.com segment included software license revenue of $5.9 million and $12.1 million for the three and six months ended June 30, 2023, respectively, as compared to $6.9 million and $14.0 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, 2023 and 2022. Amortization and depreciation expense was $7.6 million and $15.0 million for the Alarm.com segment for the three and six months ended June 30, 2023, respectively, as compared to $7.5 million and $14.9 million for the same periods in the prior year. Amortization and depreciation expense was $0.3 million and $0.6 million for the Other segment for the three and six months ended June 30, 2023, 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 $2.8 million and $5.8 million for the Alarm.com segment for the three and six months ended June 30, 2023, respectively, as compared to $24.1 million and $25.7 million for the same periods in the prior year. Additions to property and equipment were $0.1 million for the Other segment for each of the three and six months ended June 30, 2023, as compared to less than $0.1 million and $0.1 million, respectively, 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, 2023 and 2022. Substantially all of our long-lived assets were in North America as of June 30, 2023 and December 31, 2022.

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2023
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

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
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, 2022 included in our Annual Report on Form 10-K filed with the SEC on February 24, 2023, or the Annual Report. The condensed consolidated balance sheet as of December 31, 2022 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, such as the COVID-19 pandemic, and geopolitical upheaval, such as Russia’s incursion into Ukraine, 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, 2023 are not necessarily indicative of the results that can be expected for our entire fiscal year ending December 31, 2023, 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 and goodwill, intangible assets and other long-lived assets.
Comprehensive Income	Comprehensive IncomeComprehensive income consists of net income and other comprehensive income. Other comprehensive income refers to gains and losses that are recorded as an element of stockholders' equity and excluded from net income. Our other comprehensive income consists of foreign currency translation adjustments.
Foreign Currency	Foreign Currency For foreign operations where substantially all monetary transactions are in the local currency, we use the local currency as our functional currency. For these foreign operations, assets and liabilities are translated at period-end exchange rates and revenue and expense items are translated at weighted-average exchange rates prevailing during the periods being reported. The effects of translating financial statements of foreign operations into our reporting currency are recognized as a cumulative translation adjustment within accumulated other comprehensive income, a separate component of stockholders’ equity. Gains or losses from foreign currency remeasurements that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in our results of operations.
Redeemable Noncontrolling Interests	Redeemable Noncontrolling Interests Noncontrolling interests with redemption features that are not solely within our control are considered redeemable noncontrolling interests. Our redeemable noncontrolling interests relate to our 86% equity ownership interest in PC Open Incorporated, a Washington corporation, doing business as OpenEye and our 85% equity ownership interest in Noonlight, Inc., or Noonlight, a Delaware corporation. The OpenEye and Noonlight stockholder agreements contain a put option that gives the minority stockholders the right to sell their shares to us based on the fair value of the shares and also contain a call option that gives us the right to purchase the remaining shares from the minority stockholders based on the fair value of the shares. The put and call options related to OpenEye can each be exercised beginning in the first quarter of 2023. The put and call options related to Noonlight can each be exercised beginning in the first quarter of 2026. These redeemable noncontrolling interests are considered temporary equity and we report them between liabilities and stockholders’ equity in the consolidated balance sheets. The amount of the net income or loss attributable to the redeemable noncontrolling interests is recorded in the consolidated statements of operations and the accretion of the redemption values is recorded as an adjustment to additional paid-in capital. We account for purchases of redeemable noncontrolling interest as a component of stockholders' equity when control is maintained. We recognize the difference between the consideration paid for the acquired redeemable noncontrolling interest and the fair value of the acquired redeemable noncontrolling interest as an adjustment to additional paid-in capital.
Allowance for Credit Losses - Accounts Receivable and Notes Receivable	Allowance for Credit Losses - Accounts Receivable 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. 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, 2023, 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, 2023, as compared to historical periods. 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, 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. For the three and six months ended June 30, 2022, we recorded credit loss expense of $0.4 million and $0.3 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. 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
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 was $2.6 million as of December 31, 2022 and increased to $2.8 million as of June 30, 2023.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.

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	6 Months Ended
Revenue from Contracts with Customers (Tables)	Jun. 30, 2023
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 Six Months Ended 2023 2022 2023 2022 Beginning of period balance $ 13,879 $ 4,480 $ 13,975 $ 4,520 Commission costs and upfront payments to a customer capitalized in period 1,547 3,921 3,220 4,727 Amortization of contract assets (1,845) (986) (3,614) (1,832) End of period balance $ 13,581 $ 7,415 $ 13,581 $ 7,415 The changes in our contract liabilities are as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Beginning of period balance $ 20,231 $ 15,619 $ 18,332 $ 14,837 Revenue deferred in period 5,719 5,387 11,659 9,377 Revenue recognized from amounts included in contract liabilities (4,490) (3,765) (8,531) (6,973) End of period balance $ 21,460 $ 17,241 $ 21,460 $ 17,241

Accounts Receivable, Net (Table

Accounts Receivable, Net (Tables)	6 Months Ended
Accounts Receivable, Net (Tables)	Jun. 30, 2023
Receivables [Abstract]
Schedule of Components of Accounts Receivable	The components of accounts receivable, net are as follows (in thousands): June 30, December 31, Accounts receivable $ 128,590 $ 128,669 Allowance for credit losses (3,159) (2,835) Allowance for product returns (2,146) (1,551) Accounts receivable, net $ 123,285 $ 124,283
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 Three Months Ended Six Months Ended Six Months Ended Alarm.com All Other Alarm.com All Other Alarm.com All Other Alarm.com All Other Beginning of period balance $ (3,102) $ (97) $ (2,122) $ (31) $ (2,755) $ (80) $ (2,035) $ (133) Recovery of / (provision for) expected credit losses 19 (96) (464) (29) (487) (130) (619) 72 Write-offs 115 2 136 2 274 19 204 3 End of period balance $ (2,968) $ (191) $ (2,450) $ (58) $ (2,968) $ (191) $ (2,450) $ (58) The changes in our allowance for credit losses for notes receivable are as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended Loan Hardware Loan Hardware Loan Hardware Loan Hardware Beginning of period balance $ (2) $ — $ (1) $ (1) $ (2) $ — $ (79) $ (1) Recovery of / (provision for) expected credit losses — — (1) 1 — — 77 1 Write-offs — — — — — — — — End of period balance $ (2) $ — $ (2) $ — $ (2) $ — $ (2) $ —

Inventory (Tables)

Inventory (Tables)	6 Months Ended
Inventory (Tables)	Jun. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Components of Inventory	The components of inventory are as follows (in thousands): June 30, December 31, Raw materials $ 38,218 $ 38,098 Work-in-process 420 — Finished goods 79,125 77,486 Total inventory $ 117,763 $ 115,584

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
Acquisitions (Tables)	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Consideration Paid and Fair Value of Tangible and Intangible Net Assets Acquired	The table below sets forth the purchase consideration and the fair value allocation of the tangible and intangible net assets acquired (in thousands): September 23, 2022 Calculation of Purchase Consideration: Cash paid, net of working capital adjustment $ 31,805 Outstanding principal and interest of loan provided to Noonlight 1,537 Holdback consideration 4,910 Total consideration $ 38,252 Tangible and Intangible Net Assets: Cash $ 188 Accounts receivable 291 Other current and non-current assets 200 Property and equipment 45 Deferred tax assets 424 Developed technology 9,335 Trade names 150 Accounts payable (321) Accrued expenses and other current liabilities (318) Deferred revenue (67) Redeemable noncontrolling interest (6,770) Goodwill 35,095 Total tangible and intangible net assets $ 38,252

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets, Net (Tables)	6 Months Ended
Goodwill and Intangible Assets, Net (Tables)	Jun. 30, 2023
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, 2023 $ 148,183 $ — $ 148,183 Goodwill acquired 7,200 — 7,200 Measurement period adjustments (1,760) — (1,760) Foreign currency translation adjustment 374 — 374 Balance as of June 30, 2023 $ 153,997 $ — $ 153,997
Schedule of Intangible Assets	The following table reflects changes in the net carrying amount of the components of intangible assets (in thousands): Customer Developed Trade Name Capitalized Software Development Costs Total Balance as of January 1, 2023 $ 47,522 $ 33,553 $ 1,383 $ — $ 82,458 Intangible assets acquired 2,395 11,583 537 — 14,515 Capitalized software development costs — — — 149 149 Amortization (5,265) (3,677) (339) — (9,281) Balance as of June 30, 2023 $ 44,652 $ 41,459 $ 1,581 $ 149 $ 87,841 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, 2023 Gross Accumulated Net Weighted- Customer relationships $ 128,280 $ (83,628) $ 44,652 6.6 Developed technology 70,061 (28,602) 41,459 5.2 Trade name 4,474 (2,893) 1,581 2.8 Capitalized software development costs 149 — 149 3.0 Total intangible assets $ 202,964 $ (115,123) $ 87,841 5.9 December 31, 2022 Gross Accumulated Net Weighted- Customer relationships $ 125,885 $ (78,363) $ 47,522 7.0 Developed technology 58,478 (24,925) 33,553 5.8 Trade name 3,937 (2,554) 1,383 2.4 Total intangible assets $ 188,300 $ (105,842) $ 82,458 6.5

Other Assets (Tables)

Other Assets (Tables)	6 Months Ended
Other Assets (Tables)	Jun. 30, 2023
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 Three Months Ended Six Months Ended Six Months Ended Alarm.com All Other Alarm.com All Other Alarm.com All Other Alarm.com All Other Beginning of period balance $ (3,102) $ (97) $ (2,122) $ (31) $ (2,755) $ (80) $ (2,035) $ (133) Recovery of / (provision for) expected credit losses 19 (96) (464) (29) (487) (130) (619) 72 Write-offs 115 2 136 2 274 19 204 3 End of period balance $ (2,968) $ (191) $ (2,450) $ (58) $ (2,968) $ (191) $ (2,450) $ (58) The changes in our allowance for credit losses for notes receivable are as follows (in thousands): Three Months Ended Three Months Ended Six Months Ended Six Months Ended Loan Hardware Loan Hardware Loan Hardware Loan Hardware Beginning of period balance $ (2) $ — $ (1) $ (1) $ (2) $ — $ (79) $ (1) Recovery of / (provision for) expected credit losses — — (1) 1 — — 77 1 Write-offs — — — — — — — — End of period balance $ (2) $ — $ (2) $ — $ (2) $ — $ (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, 2023 Loan Receivables: 2023 2022 2021 2020 2019 Prior Total Current $ — $ 1,500 $ — $ 1,066 $ 1 $ 4,259 $ 6,826 30-59 days past due — — — — — — — 60-89 days past due — — — — — — — 90-119 days past due — — — — — — — 120+ days past due — — — — — — — Total $ — $ 1,500 $ — $ 1,066 $ 1 $ 4,259 $ 6,826 December 31, 2022 Loan Receivables: 2022 2021 2020 2019 2018 Prior Total Current $ 1,500 $ — $ 1,093 $ 1 $ — $ 4,015 $ 6,609 30-59 days past due — — — — — — — 60-89 days past due — — — — — — — 90-119 days past due — — — — — — — 120+ days past due — — — — — — — Total $ 1,500 $ — $ 1,093 $ 1 $ — $ 4,015 $ 6,609

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
Fair Value Measurements (Tables)	Jun. 30, 2023
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, 2023 $ 612,955 $ — $ — $ 612,955 Money market accounts as of December 31, 2022 510,326 — — 510,326 Liabilities: Contingent consideration liability from acquisition as of June 30, 2023 $ — $ — $ 2,020 $ 2,020 Contingent consideration liability from acquisition as of December 31, 2022 — — — —
Summary of Fair Value of Level 3 Liability	The following table summarizes the change in fair value of the Level 3 liabilities with significant unobservable inputs (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Contingent Consideration Liability from Acquisition Subsidiary Long-Term Incentive Plan Contingent Consideration Liability from Acquisition Subsidiary Long-Term Incentive Plan Beginning of period balance $ 2,006 $ 3,104 $ — $ 3,351 Acquired liabilities — — 1,993 — Changes in fair value included in earnings 14 — 27 (247) Reclassification to additional paid in capital upon modification — (3,104) — (3,104) End of period balance $ 2,020 $ — $ 2,020 $ —

Leases (Tables)

Leases (Tables)	6 Months Ended
Leases (Tables)	Jun. 30, 2023
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 Six Months Ended 2023 2022 2023 2022 Operating lease cost $ 2,871 $ 2,592 $ 5,621 $ 5,065 Cash paid for amounts included in the measurement of operating lease liabilities 3,434 3,125 6,796 6,100 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 188 3,930 4,115 5,712 June 30, December 31, Weighted-average remaining lease term — operating leases 3.4 years 3.4 years Weighted-average discount rate — operating leases 4.5 % 3.9 %
Schedule of Maturities of Lease Liabilities	Maturities of lease liabilities are as follows (in thousands): Year Ended December 31, Operating Leases (1) Remainder of 2023 $ 7,180 2024 13,185 2025 11,213 2026 6,756 2027 1,610 2028 and thereafter 2,386 Total lease payments 42,330 Less: imputed interest (2) 4,636 Present value of lease liabilities $ 37,694 _______________ (1) Excludes $1.5 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.

Liabilities (Tables)

Liabilities (Tables)	6 Months Ended
Liabilities (Tables)	Jun. 30, 2023
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, December 31, Accounts payable $ 57,490 $ 53,121 Accrued expenses 16,904 17,539 Income taxes payable 32,742 43,576 Holdback liability from business combinations 4,577 — Other current liabilities 9,079 5,421 Accounts payable, accrued expenses and other current liabilities $ 120,792 $ 119,657 The components of other liabilities are as follows (in thousands): June 30, December 31, Holdback liability from business combinations and asset acquisition $ 2,780 $ 4,560 Contingent consideration liability from acquisition 2,020 — Other liabilities 10,711 8,490 Other liabilities $ 15,511 $ 13,050

Debt, Commitments and Conting_2

Debt, Commitments and Contingencies (Tables)	6 Months Ended
Debt, Commitments and Contingencies (Tables)	Jun. 30, 2023
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, December 31, Principal $ 500,000 $ 500,000 Unamortized debt issuance costs (8,060) (9,630) Net carrying amount $ 491,940 $ 490,370 Interest expense related to the 2026 Notes is as follows (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Amortization of debt issuance costs $ 786 $ 780 $ 1,570 $ 1,560 Total interest expense $ 786 $ 780 $ 1,570 $ 1,560

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
Stock-Based Compensation (Tables)	Jun. 30, 2023
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 Six Months Ended 2023 2022 2023 2022 Sales and marketing $ 892 $ 1,440 $ 1,924 $ 2,498 General and administrative 3,468 3,947 6,613 7,182 Research and development 7,571 7,402 16,080 15,219 Total stock-based compensation expense $ 11,931 $ 12,789 $ 24,617 $ 24,899 The following table summarizes the components of non-cash stock-based compensation expense (in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Stock options $ 1,071 $ 950 $ 1,983 $ 1,728 Restricted stock units 10,819 11,794 22,541 23,078 Employee stock purchase plan 41 45 93 93 Total stock-based compensation expense $ 11,931 $ 12,789 $ 24,617 $ 24,899 Tax (shortfall) / windfall benefit from stock-based awards $ (669) $ 504 $ (691) $ 1,033

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
Earnings Per Share (Tables)	Jun. 30, 2023
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 Six Months Ended Numerator: 2023 2022 2023 2022 Net income $ 15,611 $ 10,828 $ 29,818 $ 19,731 Net loss attributable to redeemable noncontrolling interests 188 14 397 190 Net income attributable to common stockholders - basic (A) 15,799 10,842 30,215 19,921 Add back interest expense, net of tax, attributable to convertible senior notes 591 587 1,181 1,173 Net income attributable to common stockholders - diluted (B) $ 16,390 $ 11,429 $ 31,396 $ 21,094 Denominator: Weighted average common shares outstanding — basic (C) 49,859,615 49,931,689 49,723,012 50,068,176 Dilutive effect of convertible senior notes, stock options and restricted stock units 4,586,660 4,825,331 4,700,035 4,986,794 Weighted average common shares outstanding — diluted (D) 54,446,275 54,757,020 54,423,047 55,054,970 Net income per share: Basic (A/C) $ 0.32 $ 0.22 $ 0.61 $ 0.40 Diluted (B/D) $ 0.30 $ 0.21 $ 0.58 $ 0.38
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 Six Months Ended 2023 2022 2023 2022 Stock options 602,135 329,826 602,135 327,959 Restricted stock units 253,214 314,174 152,817 356,290

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
Segment Information (Tables)	Jun. 30, 2023
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, 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 Three Months Ended June 30, 2022 Alarm.com Other Intersegment Alarm.com Intersegment Other Total SaaS and license revenue $ 119,128 $ 10,347 $ — $ — $ 129,475 Hardware and other revenue 82,158 2,654 (1,344) (98) 83,370 Total revenue 201,286 13,001 (1,344) (98) 212,845 Operating income / (loss) 16,918 (5,725) 168 (25) 11,336 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 Six Months Ended June 30, 2022 Alarm.com Other Intersegment Alarm.com Intersegment Other Total SaaS and license revenue $ 234,476 $ 18,224 $ — $ — $ 252,700 Hardware and other revenue 163,379 4,958 (2,243) (512) 165,582 Total revenue 397,855 23,182 (2,243) (512) 418,282 Operating income / (loss) 29,671 (9,728) 354 (48) 20,249 Alarm.com Other Intersegment Alarm.com Intersegment Other Total Assets as of June 30, 2023 $ 1,430,105 $ 39,640 $ (87,046) $ 21 $ 1,382,720 Assets as of December 31, 2022 1,366,343 53,927 (90,929) 34 1,329,375

Organization (Details)

Organization (Details) service_provider in Thousands	Dec. 31, 2022 service_provider
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of trusted service providers (more than)	11

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details)	Jun. 30, 2023	Sep. 23, 2022
OpenEye
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Percentage of business acquired	86%
Noonlight
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Percentage of business acquired	85%	85%

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Contract Asset and Liability Balances (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Change In Contract With Customer, Asset [Roll Forward]
Beginning of period balance	$ 13,879	$ 4,480	$ 13,975	$ 4,520
Commission costs and upfront payments to a customer capitalized in period	1,547	3,921	3,220	4,727
Amortization of contract assets	(1,845)	(986)	(3,614)	(1,832)
End of period balance	13,581	7,415	13,581	7,415
Change In Contract With Customer, Liability [Roll Forward]
Beginning of period balance	20,231	15,619	18,332	14,837
Revenue deferred in period	5,719	5,387	11,659	9,377
Revenue recognized from amounts included in contract liabilities	(4,490)	(3,765)	(8,531)	(6,973)
End of period balance	$ 21,460	$ 17,241	$ 21,460	$ 17,241

Accounts Receivable, Net - Sche

Accounts Receivable, Net - Schedule of Components of Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Receivables [Abstract]
Accounts receivable	$ 128,590	$ 128,669
Allowance for credit losses	(3,159)	(2,835)
Allowance for product returns	(2,146)	(1,551)
Accounts receivable, net	$ 123,285	$ 124,283

Accounts Receivable, Net - Narr

Accounts Receivable, Net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for expected credit losses	$ 100	$ 400	$ 616	$ 547
Reserve for product returns			2,498	1,715
Credit loss expense (reversal) for accounts and notes receivable	100	400	500	300
Hardware and other revenue
Accounts, Notes, Loans and Financing Receivable [Line Items]
Reserve for product returns	$ 1,300	$ 900	$ 2,500	$ 1,700

Accounts Receivable, Net - Sc_2

Accounts Receivable, Net - Schedule of Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning of period balance			$ (2,835)
Recovery of / (provision for) expected credit losses	$ (100)	$ (400)	(616)	$ (547)
End of period balance	(3,159)		(3,159)
Alarm.com and Certain Subsidiaries
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning of period balance	(3,102)	(2,122)	(2,755)	(2,035)
Recovery of / (provision for) expected credit losses	19	(464)	(487)	(619)
Write-offs	115	136	274	204
End of period balance	(2,968)	(2,450)	(2,968)	(2,450)
All Other Subsidiaries
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning of period balance	(97)	(31)	(80)	(133)
Recovery of / (provision for) expected credit losses	(96)	(29)	(130)	72
Write-offs	2	2	19	3
End of period balance	$ (191)	$ (58)	$ (191)	$ (58)

Inventory - Schedule of Compone

Inventory - Schedule of Components of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 38,218	$ 38,098
Work-in-process	420	0
Finished goods	79,125	77,486
Total inventory	$ 117,763	$ 115,584

Inventory - Narrative (Details)

Inventory - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
Inventory - Narrative (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2022
Inventory Disclosure [Abstract]
Inventory write-down	$ 1,200	$ 1,181	$ 0

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) - USD ($)				1 Months Ended		3 Months Ended		6 Months Ended
Acquisitions - Narrative (Details) - USD ($)	Apr. 21, 2023	Jan. 18, 2023	Sep. 23, 2022	Mar. 31, 2023	May 31, 2022	Mar. 31, 2024	Jun. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Holdback consideration							$ 2,780,000	$ 2,780,000	$ 4,560,000
Contingent consideration liability from acquisition							2,020,000	2,020,000	0
Goodwill							$ 153,997,000	$ 153,997,000	$ 148,183,000
Noonlight
Business Acquisition [Line Items]
Ownership by noncontrolling owners			15%
EBS
Business Acquisition [Line Items]
Percentage of business acquired		100%
Cash paid to acquire business		$ 9,800,000
Holdback consideration		2,200,000
Additional earn-out		2,500,000
Contingent consideration liability from acquisition		$ 2,000,000
Noonlight
Business Acquisition [Line Items]
Percentage of business acquired			85%				85%	85%
Cash paid to acquire business			$ 31,900,000
Holdback consideration			4,910,000
Loan amount consideration					$ 1,500,000
Payments for business combination holdback							$ 400,000
Goodwill			35,095,000
Expected tax deductible amount of goodwill			0
Redeemable noncontrolling interest			$ 6,770,000
Redemption value of noncontrolling interest							$ 6,500,000	$ 6,500,000
Noonlight \| Trade Name
Business Acquisition [Line Items]
Weighted-average estimated useful life of intangible assets acquired (years)			5 years
Intangible assets			$ 150,000
Noonlight \| Developed technology
Business Acquisition [Line Items]
Weighted-average estimated useful life of intangible assets acquired (years)			7 years
Intangible assets			$ 9,335,000
Noonlight \| Forecast
Business Acquisition [Line Items]
Payments for business combination holdback						$ 4,600,000
Vintra
Business Acquisition [Line Items]
Payments to acquire developed technology	$ 5,500,000
Asset acquisition, consideration transferred, deduction, loan amount				$ 300,000
Asset acquisition, consideration transferred, holdback amount	1,000,000
Transaction costs								$ 400,000
Asset acquisition consideration	$ 7,100,000
Weighted-average estimated useful life of intangible assets acquired (years)	5 years
Consideration transferred, property and equipment	$ 100,000

Acquisitions - Noonlight Consid

Acquisitions - Noonlight Consideration Paid and Fair Value of Assets Acquired (Details) - USD ($) $ in Thousands	Sep. 23, 2022	Jun. 30, 2023	Dec. 31, 2022
Calculation of Purchase Consideration:
Holdback consideration		$ 2,780	$ 4,560
Tangible and Intangible Net Assets:
Goodwill		$ 153,997	$ 148,183
Noonlight
Calculation of Purchase Consideration:
Cash paid, net of working capital adjustment	$ 31,805
Outstanding principal and interest of loan provided to Noonlight	1,537
Holdback consideration	4,910
Total consideration	38,252
Tangible and Intangible Net Assets:
Cash	188
Accounts receivable	291
Other current and non-current assets	200
Property and equipment	45
Deferred tax assets	424
Accounts payable	(321)
Accrued expenses and other current liabilities	(318)
Deferred revenue	(67)
Redeemable noncontrolling interest	(6,770)
Goodwill	35,095
Total tangible and intangible net assets	38,252
Noonlight \| Developed technology
Tangible and Intangible Net Assets:
Intangible assets acquired	9,335
Noonlight \| Trade Name
Tangible and Intangible Net Assets:
Intangible assets acquired	$ 150

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets, Net - Schedule of Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 148,183
Goodwill acquired	7,200
Measurement period adjustments	(1,760)
Foreign currency translation adjustment	374
Ending balance	153,997
Alarm.com
Goodwill [Roll Forward]
Beginning balance	148,183
Goodwill acquired	7,200
Measurement period adjustments	(1,760)
Foreign currency translation adjustment	374
Ending balance	153,997
Other
Goodwill [Roll Forward]
Beginning balance	0
Goodwill acquired	0
Measurement period adjustments	0
Foreign currency translation adjustment	0
Ending balance	$ 0

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($)		3 Months Ended		6 Months Ended
	Jan. 18, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Finite-Lived Intangible Assets [Line Items]
Goodwill acquired				$ 7,200,000
Amortization		$ 4,700,000	$ 4,500,000	9,281,000	$ 9,100,000
Impairment of long-lived assets		$ 0	$ 0	0	0
Alarm.com
Finite-Lived Intangible Assets [Line Items]
Goodwill acquired				$ 7,200,000
Intangible assets written off					$ 700,000
EBS
Finite-Lived Intangible Assets [Line Items]
Percentage of business acquired	100%
EBS \| Alarm.com
Finite-Lived Intangible Assets [Line Items]
Goodwill acquired	$ 7,200,000

Goodwill and Intangible Asset_5

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, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Finite-lived Intangible Assets [Roll Forward]
Beginning balance			$ 82,458
Intangible assets acquired			14,515
Capitalized software development costs			149
Amortization	$ (4,700)	$ (4,500)	(9,281)	$ (9,100)
Ending balance	87,841		87,841
Customer Relationships
Finite-lived Intangible Assets [Roll Forward]
Beginning balance			47,522
Intangible assets acquired			2,395
Capitalized software development costs			0
Amortization			(5,265)
Ending balance	44,652		44,652
Developed Technology
Finite-lived Intangible Assets [Roll Forward]
Beginning balance			33,553
Intangible assets acquired			11,583
Capitalized software development costs			0
Amortization			(3,677)
Ending balance	41,459		41,459
Trade Name
Finite-lived Intangible Assets [Roll Forward]
Beginning balance			1,383
Intangible assets acquired			537
Capitalized software development costs			0
Amortization			(339)
Ending balance	1,581		1,581
Capitalized Software Development Costs
Finite-lived Intangible Assets [Roll Forward]
Beginning balance			0
Intangible assets acquired			0
Capitalized software development costs			149
Amortization			0
Ending balance	$ 149		$ 149

Goodwill and Intangible Asset_6

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, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 202,964	$ 188,300
Accumulated Amortization	(115,123)	(105,842)
Net Carrying Value	$ 87,841	$ 82,458
Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Life (in years)	5 years 10 months 24 days	6 years 6 months
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 128,280	$ 125,885
Accumulated Amortization	(83,628)	(78,363)
Net Carrying Value	$ 44,652	$ 47,522
Customer Relationships \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Life (in years)	6 years 7 months 6 days	7 years
Developed Technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 70,061	$ 58,478
Accumulated Amortization	(28,602)	(24,925)
Net Carrying Value	$ 41,459	$ 33,553
Developed Technology \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Life (in years)	5 years 2 months 12 days	5 years 9 months 18 days
Trade Name
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 4,474	$ 3,937
Accumulated Amortization	(2,893)	(2,554)
Net Carrying Value	$ 1,581	$ 1,383
Trade Name \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Life (in years)	2 years 9 months 18 days	2 years 4 months 24 days
Capitalized Software Development Costs
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 149
Accumulated Amortization	0
Net Carrying Value	$ 149	$ 0
Capitalized Software Development Costs \| Weighted Average
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Life (in years)	3 years

Other Assets - Loan to a Distri

Other Assets - Loan to a Distribution Partner (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Revenue from distribution partners	$ 223,875	$ 212,845	$ 433,591	$ 418,282
Distribution Partner Three \| Loan Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Debt instrument, interest rate					12%
Distribution Partners Two and Three \| Loan Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Revenue from distribution partners	800	$ 900	1,600	$ 1,500
Other Assets \| Distribution Partner Three \| Loan Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loan receivable, noncurrent	$ 4,300		$ 4,300		$ 4,000

Other Assets - Loan to a Servic

Other Assets - Loan to a Service Provider Partner (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Jul. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total revenue	$ 223,875	$ 212,845	$ 433,591	$ 418,282
Service Provider \| Loan Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable, maximum available						$ 2,500
Debt instrument, interest rate						9%
Loan balance	1,100		1,100		$ 1,100
Total revenue	$ 100	$ 100	$ 100	$ 100

Other Assets - Loan to a Techno

Other Assets - Loan to a Technology Partner (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total revenue	$ 223,875,000	$ 212,845,000	$ 433,591,000	$ 418,282,000
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	$ 1,500,000
Debt instrument, interest rate		6.50%		6.50%
Total revenue	$ 0	$ 0	$ 0	$ 0

Other Assets - Investment in a

Other Assets - Investment in a Hardware Supplier (Details) - Hardware Supplier - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022	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

Other Assets - Investments in a

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, 2023	Jun. 30, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cash purchase of shares			$ 200	$ 0
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 Three
Accounts, Notes, Loans and Financing Receivable [Line Items]
Cash purchase of shares	5,100
Investment	$ 5,100		$ 5,100
Technology Partner Three \| Series A Preferred Stock
Accounts, Notes, Loans and Financing Receivable [Line Items]
Shares purchased (in shares)	4,231,717

Other Assets - Allowance For Cr

Other Assets - Allowance For Credit Losses Narrative (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2023 USD ($) portfolio_segment	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) portfolio_segment	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Financing Receivable, Nonaccrual [Line Items]
Number of portfolio segments \| portfolio_segment	2		2
Interest income recognized for notes receivables in nonaccrual status	$ 0	$ 0	$ 0	$ 0
Prepaid expense	14,700,000		14,700,000		$ 14,500,000
Other Current Assets and Other Assets
Financing Receivable, Nonaccrual [Line Items]
Interest receivable less than	100,000		100,000		100,000
Hardware Financing Receivables
Financing Receivable, Nonaccrual [Line Items]
Loan balance	0		0		0
Notes Receivable
Financing Receivable, Nonaccrual [Line Items]
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

Other Assets - Schedule of Note

Other Assets - Schedule of Notes Receivable Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Recovery of / (provision for) expected credit losses			$ 0	$ 78
Loan Receivables
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning of period balance	$ (2)	$ (1)	(2)	(79)
Recovery of / (provision for) expected credit losses	0	(1)	0	77
Write-offs	0	0	0	0
End of period balance	(2)	(2)	(2)	(2)
Hardware Financing Receivables
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Beginning of period balance	0	(1)	0	(1)
Recovery of / (provision for) expected credit losses	0	1	0	1
Write-offs	0	0	0	0
End of period balance	$ 0	$ 0	$ 0	$ 0

Other Assets - Credit Quality I

Other Assets - Credit Quality Indicators (Details) - Loan Receivables - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Originated in fiscal year	$ 0	$ 1,500
Originated one year before fiscal year	1,500	0
Originated two years before fiscal year	0	1,093
Originated three years before fiscal year	1,066	1
Originated four years before fiscal year	1	0
Prior	4,259	4,015
Total	6,826	6,609
Current
Accounts, Notes, Loans and Financing Receivable [Line Items]
Originated in fiscal year	0	1,500
Originated one year before fiscal year	1,500	0
Originated two years before fiscal year	0	1,093
Originated three years before fiscal year	1,066	1
Originated four years before fiscal year	1	0
Prior	4,259	4,015
Total	6,826	6,609
30-59 days past due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Originated in fiscal year	0	0
Originated one year before fiscal year	0	0
Originated two years before fiscal year	0	0
Originated three years before fiscal year	0	0
Originated four years before 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 fiscal year	0	0
Originated two years before fiscal year	0	0
Originated three years before fiscal year	0	0
Originated four years before 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 fiscal year	0	0
Originated two years before fiscal year	0	0
Originated three years before fiscal year	0	0
Originated four years before 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 fiscal year	0	0
Originated two years before fiscal year	0	0
Originated three years before fiscal year	0	0
Originated four years before fiscal year	0	0
Prior	0	0
Total	$ 0	$ 0

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration liability from acquisition	$ 2,020	$ 0
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market accounts	612,955	510,326
Contingent consideration liability from acquisition	2,020	0
Fair Value, Measurements, Recurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market accounts	612,955	510,326
Contingent consideration liability from acquisition	0	0
Fair Value, Measurements, Recurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market accounts	0	0
Contingent consideration liability from acquisition	0	0
Fair Value, Measurements, Recurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market accounts	0	0
Contingent consideration liability from acquisition	$ 2,020	$ 0

Fair Value Measurements - Summa

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, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Contingent Consideration Liability From Acquisitions
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning of period balance	$ 2,006		$ 0
Acquired liabilities	0		1,993
Changes in fair value included in earnings	14		27
Reclassification to additional paid in capital upon modification	0		0
End of period balance	$ 2,020		$ 2,020
Subsidiary Long-Term Incentive Plan
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning of period balance		$ 3,104		$ 3,351
Acquired liabilities		0		0
Changes in fair value included in earnings		0		(247)
Reclassification to additional paid in capital upon modification		(3,104)		(3,104)
End of period balance		$ 0		$ 0

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jan. 18, 2023 USD ($)	Dec. 31, 2022 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 643,380	$ 627,041		$ 622,165
Other assets		36,870		37,356
Reclassification of subsidiary long-term incentive plan liability related to modification	3,104
Incremental compensation cost	$ 1,200
Contingent consideration liability from acquisition		$ 2,020		0
Expected Achievement \| Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.895
Expected Achievement \| Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.800
Expected Achievement \| Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.990
Discount Rate \| Weighted Average
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.065
Discount Rate \| Minimum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.064
Discount Rate \| Maximum
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Measurement input		0.066
EBS
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Percentage of business acquired			100%
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		$ 611,700		509,600
Other assets		$ 1,300		$ 700

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($)	Jun. 30, 2023	Dec. 31, 2022
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

Leases - Supplemental Informati

Leases - Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Leases [Abstract]
Operating lease cost	$ 2,871	$ 2,592	$ 5,621	$ 5,065
Cash paid for amounts included in the measurement of operating lease liabilities	3,434	3,125	6,796	6,100
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities	$ 188	$ 3,930	$ 4,115	$ 5,712
Weighted-average remaining lease term — operating leases	3 years 4 months 24 days		3 years 4 months 24 days		3 years 4 months 24 days
Weighted-average discount rate — operating leases	4.50%		4.50%		3.90%

Leases - Maturities of Lease Li

Leases - Maturities of Lease Liabilities (Details)	Jun. 30, 2023 USD ($)
Maturities of Lease Liabilities Under Topic 842
Remainder of 2023	$ 7,180,000
2024	13,185,000
2025	11,213,000
2026	6,756,000
2027	1,610,000
2028 and thereafter	2,386,000
Total lease payments	42,330,000
Less: imputed interest	4,636,000
Present value of lease liabilities	37,694,000
Legally binding minimum lease payments on leases not yet commenced	1,500,000
Amount for options to extend lease	$ 0

Liabilities - Components of Acc

Liabilities - Components of Accounts Payable, Accrued Expenses, and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Accounts payable	$ 57,490	$ 53,121
Accrued expenses	16,904	17,539
Income taxes payable	32,742	43,576
Holdback liability from business combinations	4,577	0
Other current liabilities	9,079	5,421
Accounts payable, accrued expenses and other current liabilities	$ 120,792	$ 119,657

Liabilities - Other Liabilities

Liabilities - Other Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Holdback liability from business combinations and asset acquisition	$ 2,780	$ 4,560
Contingent consideration liability from acquisition	2,020	0
Other liabilities	10,711	8,490
Other liabilities	$ 15,511	$ 13,050

Debt, Commitments and Conting_3

Debt, Commitments and Contingencies - Convertible Senior Notes (Details)	Jan. 20, 2021 USD ($) day $ / shares	Jun. 30, 2023 USD ($) $ / shares	Dec. 31, 2022 USD ($)
Debt Instrument [Line Items]
Share price (in dollars per share) \| $ / shares		$ 51.68
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%
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%
Threshold percentage stock price trigger	130%
Trading days threshold	20
Consecutive trading days threshold	30
Convertible Senior Notes due 2026 \| Redemption period two
Debt Instrument [Line Items]
Threshold percentage stock price trigger	130%
Trading days threshold	20
Consecutive trading days threshold	30
Number of business days	5
Number of consecutive trading days	10
Percentage of last reported sale price threshold	98%
Senior Notes \| Convertible Senior Notes due 2026
Debt Instrument [Line Items]
Debt instrument, face amount \| $	$ 500,000,000
Debt instrument, interest rate	0%
Effective interest rate	0.60%
Debt instrument, fair value \| $		$ 426,900,000	$ 411,500,000
Line of Credit \| 2017 Facility \| Revolving Credit Facility
Debt Instrument [Line Items]
Long-term debt \| $	$ 110,000,000

Debt, Commitments and Conting_4

Debt, Commitments and Contingencies - Carrying Amount of Liability Component (Details) - Convertible Senior Notes due 2026 - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Principal	$ 500,000	$ 500,000
Unamortized debt issuance costs	(8,060)	(9,630)
Net carrying amount	$ 491,940	$ 490,370

Debt, Commitments and Conting_5

Debt, Commitments and Contingencies - Summary of Interest Expense (Details) - Convertible Senior Notes due 2026 - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Debt Instrument [Line Items]
Amortization of debt issuance costs	$ 786	$ 780	$ 1,570	$ 1,560
Total interest expense	$ 786	$ 780	$ 1,570	$ 1,560

Debt, Commitments and Conting_6

Debt, Commitments and Contingencies - Acquired Debt - EBS (Details) - EBS - USD ($) $ in Millions	Jun. 30, 2023	Jan. 18, 2023
Business Acquisition [Line Items]
Percentage of business acquired		100%
Outstanding debt amount		$ 2.9
Short-term debt	$ 2.7

Debt, Commitments and Conting_7

Debt, Commitments and Contingencies - Legal Proceedings (Details) $ in Thousands

1 Months Ended

2 Months Ended

3 Months Ended

6 Months Ended

36 Months Ended

Mar. 08, 2023 patent

Jan. 04, 2023 patent

Mar. 22, 2022 patent

Jan. 10, 2022 patent

Jul. 28, 2021 patent

Jul. 22, 2021 patent

Feb. 25, 2021 patent

Jun. 02, 2015 patent

Oct. 31, 2019 patent

Mar. 31, 2023 patent

Jun. 30, 2023 USD ($) claim patent

Dec. 31, 2022 USD ($)

Jun. 30, 2022 USD ($)

Jun. 30, 2023 patent claim

Jun. 30, 2023 USD ($) patent claim

Apr. 18, 2023 patent

Jun. 30, 2022 USD ($)

Dec. 31, 2019 patent

Loss Contingencies [Line Items]

Total revenue | $

$ (223,875)

$ (212,845)

$ (433,591)

$ (418,282)

Net income | $

(15,611)

(10,828)

(29,818)

(19,731)

SaaS and License

Loss Contingencies [Line Items]

Total revenue | $

$ (140,432)

$ (129,475)

$ (275,826)

$ (252,700)

Vivint, Inc. vs. Alarm.com Holdings, Inc

Loss Contingencies [Line Items]

Patent lawsuit dismissed

Pending Litigation | SaaS and License

Loss Contingencies [Line Items]

Total revenue | $

$ 6,000

Net income | $

$ 6,000

Pending Litigation | Vivint, Inc. vs. Alarm.com Holdings, Inc

Loss Contingencies [Line Items]

Number of patents allegedly infringed upon by the company

Number of patents found to be unpatentable

Number of patents allegedly infringed by elements in solution

Pending Litigation | 3 Patents

Loss Contingencies [Line Items]

Number of patents found to be unpatentable

Number of claims | claim

Pending Litigation | 4th Patent

Loss Contingencies [Line Items]

Number of claims

Pending Litigation | EcoFactor, Inc. vs. Alarm.com Holdings, Inc.

Loss Contingencies [Line Items]

Number of patents allegedly infringed upon by the company

Number of patents under ex parte reexamination

Pending Litigation | Causam Enterprises, Inc vs Alarm.com Holdings, Inc

Loss Contingencies [Line Items]

Number of patents allegedly infringed upon by the company

Pending Litigation | Causam Enterprises, Inc vs Alarm.com Holdings, Inc and EnergyHub, Inc

Loss Contingencies [Line Items]

Number of patents allegedly infringed upon by the company

Pending Litigation | Vivint, Inc vs ADT LLC

Loss Contingencies [Line Items]

Number of patents allegedly infringed upon by the company

Number of patents found to be unpatentable

Patents under inter partes review

Pending Litigation | Vivint, Inc vs ADT LLC | Minimum

Loss Contingencies [Line Items]

Number of patents allegedly infringed upon by the company

Pending Litigation | IOT Innovations LLC vs Monitronics International, Inc.

Loss Contingencies [Line Items]

Number of patents allegedly infringed upon by the company

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)			3 Months Ended			6 Months Ended
Stockholders' Equity (Details) - USD ($)	Feb. 15, 2023	Dec. 03, 2020	Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Class of Stock [Line Items]
Purchases of treasury stock			$ 6,726,000	$ 28,168,000	$ 23,331,000
December 2020 Repurchase Program
Class of Stock [Line Items]
Authorized repurchase amount		$ 100,000,000
Stock repurchase program, period		3 years
Purchases of treasury stock (in shares)			0	480,531		0	834,654
Purchases of treasury stock				$ 28,200,000			$ 51,500,000
February 2023 Repurchase Program
Class of Stock [Line Items]
Authorized repurchase amount	$ 100,000,000
Stock repurchase program, period	2 years
Purchases of treasury stock (in shares)			134,255			134,255
Purchases of treasury stock			$ 6,700,000			$ 6,700,000

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 11,931	$ 12,789	$ 24,617	$ 24,899
Tax (shortfall) / windfall benefit from stock-based awards	(669)	504	(691)	1,033
Stock options
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	1,071	950	1,983	1,728
Restricted stock units
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	10,819	11,794	22,541	23,078
Employee stock purchase plan
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	41	45	93	93
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	892	1,440	1,924	2,498
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	3,468	3,947	6,613	7,182
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation expense	$ 7,571	$ 7,402	$ 16,080	$ 15,219

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - shares	3 Months Ended		6 Months Ended
Stock-Based Compensation - Narrative (Details) - shares	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options exercised (in shares)	12,184	25,242	83,135	39,262
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units granted (in shares)	103,522	433,881	186,397	590,424
Restricted stock units vested (in shares)	226,865	179,998	393,950	237,495
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	71,934
Restricted stock units vested (in shares)	30,406	0	39,406	0
2015 Equity Incentive Plan \| Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)	172,000	95,000	193,400	95,000

Earnings Per Share - Components

Earnings Per Share - Components of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net income	$ 15,611	$ 10,828	$ 29,818	$ 19,731
Net loss attributable to redeemable noncontrolling interests	188	14	397	190
Net income attributable to common stockholders	15,799	10,842	30,215	19,921
Add back interest expense, net of tax, attributable to convertible senior notes	591	587	1,181	1,173
Net income attributable to common stockholders - diluted	$ 16,390	$ 11,429	$ 31,396	$ 21,094
Weighted average common shares outstanding - basic (in shares)	49,859,615	49,931,689	49,723,012	50,068,176
Dilutive effect of convertible senior notes, stock options and restricted stock units (in shares)	4,586,660	4,825,331	4,700,035	4,986,794
Weighted average common shares outstanding - diluted (in shares)	54,446,275	54,757,020	54,423,047	55,054,970
Net income per share:
Basic (in dollars per share)	$ 0.32	$ 0.22	$ 0.61	$ 0.40
Diluted (in dollars per share)	$ 0.30	$ 0.21	$ 0.58	$ 0.38

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Securities Excluded from Calculation of Diluted Weighted Average Common Shares Outstanding Due to Anti-dilutive Effect (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 23, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Dilutive effect of convertible senior notes (in shares)	4,586,660	4,825,331	4,700,035	4,986,794
Debt issuance cost amortization included	$ 591	$ 587	$ 1,181	$ 1,173
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
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the calculation of diluted weighted average common shares outstanding	602,135	329,826	602,135	327,959
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the calculation of diluted weighted average common shares outstanding	253,214	314,174	152,817	356,290
OpenEye
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Percentage of business acquired	86%		86%
Noonlight
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Percentage of business acquired	85%		85%		85%

Significant Service Providers_2

Significant Service Providers and Distributors (Details) - Service Provider Concentration Risk - Revenue	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Ten Largest Service Providers
Concentration Risk [Line Items]
Concentration risk percentage	50%	48%	50%	49%
Minimum \| Service Provider A
Concentration Risk [Line Items]
Concentration risk percentage	15%	15%	15%	15%
Maximum \| Service Provider A
Concentration Risk [Line Items]
Concentration risk percentage	20%	20%	20%	20%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Operating Loss Carryforwards [Line Items]
Provision (benefit) for income taxes	$ 6,507	$ 844	$ 5,285	$ 226
Effective income tax rate (percent)	29.40%	7.20%	15.10%	1.10%
Accrued interest and penalties related to unrecognized tax benefits	$ 300		$ 300		$ 300
State Research Tax Credit Carryforward
Operating Loss Carryforwards [Line Items]
Valuation allowance	$ 2,800		2,800		$ 2,600
Research Tax Credit Carryforward
Operating Loss Carryforwards [Line Items]
Unrecognized tax benefits			$ 800	$ 1,100

Segment Information (Details)

Segment Information (Details)	3 Months Ended		6 Months Ended
Segment Information (Details)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) segment	Jun. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments \| segment			2
Total revenue	$ 223,875,000	$ 212,845,000	$ 433,591,000	$ 418,282,000
Operating income / (loss)	16,159,000	11,336,000	24,978,000	20,249,000
Total assets	1,382,720,000		1,382,720,000		$ 1,329,375,000
Amortization and depreciation	7,860,000	7,775,000	15,533,000	15,536,000
Additions to property and equipment			3,393,000	26,302,000
Alarm.com
Segment Reporting Information [Line Items]
Amortization and depreciation	7,600,000	7,500,000	15,000,000	14,900,000
Additions to property and equipment	2,800,000	24,100,000	5,800,000	25,700,000
Other
Segment Reporting Information [Line Items]
Amortization and depreciation	300,000	300,000	600,000	600,000
Additions to property and equipment	100,000	100,000	100,000	100,000
Operating Segments \| Alarm.com
Segment Reporting Information [Line Items]
Total revenue	210,387,000	201,286,000	409,534,000	397,855,000
Operating income / (loss)	19,901,000	16,918,000	33,831,000	29,671,000
Total assets	1,430,105,000		1,430,105,000		1,366,343,000
Operating Segments \| Other
Segment Reporting Information [Line Items]
Total revenue	14,538,000	13,001,000	25,999,000	23,182,000
Operating income / (loss)	(3,878,000)	(5,725,000)	(9,068,000)	(9,728,000)
Total assets	39,640,000		39,640,000		53,927,000
Intersegment Eliminations \| Alarm.com
Segment Reporting Information [Line Items]
Total revenue	(881,000)	(1,344,000)	(1,658,000)	(2,243,000)
Operating income / (loss)	41,000	168,000	46,000	354,000
Total assets	(87,046,000)		(87,046,000)		(90,929,000)
Intersegment Eliminations \| Other
Segment Reporting Information [Line Items]
Total revenue	(169,000)	(98,000)	(284,000)	(512,000)
Operating income / (loss)	95,000	$ (25,000)	169,000	$ (48,000)
Total assets	$ 21,000		$ 21,000		$ 34,000
Segment Concentration Risk \| Revenue \| Alarm.com
Segment Reporting Information [Line Items]
Concentration risk percentage	94%	94%	94%	95%
SaaS and license revenue
Segment Reporting Information [Line Items]
Total revenue	$ 140,432,000	$ 129,475,000	$ 275,826,000	$ 252,700,000
SaaS and license revenue \| Operating Segments \| Alarm.com
Segment Reporting Information [Line Items]
Total revenue	127,754,000	119,128,000	253,406,000	234,476,000
SaaS and license revenue \| Operating Segments \| Other
Segment Reporting Information [Line Items]
Total revenue	12,678,000	10,347,000	22,420,000	18,224,000
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	83,443,000	83,370,000	157,765,000	165,582,000
Hardware and other revenue \| Operating Segments \| Alarm.com
Segment Reporting Information [Line Items]
Total revenue	82,633,000	82,158,000	156,128,000	163,379,000
Hardware and other revenue \| Operating Segments \| Other
Segment Reporting Information [Line Items]
Total revenue	1,860,000	2,654,000	3,579,000	4,958,000
Hardware and other revenue \| Intersegment Eliminations \| Alarm.com
Segment Reporting Information [Line Items]
Total revenue	(881,000)	(1,344,000)	(1,658,000)	(2,243,000)
Hardware and other revenue \| Intersegment Eliminations \| Other
Segment Reporting Information [Line Items]
Total revenue	(169,000)	(98,000)	(284,000)	(512,000)
Software License Revenue \| Alarm.com
Segment Reporting Information [Line Items]
Total revenue	5,900,000	6,900,000	12,100,000	14,000,000
Software License Revenue \| Other
Segment Reporting Information [Line Items]
Total revenue	$ 0	$ 0	$ 0	$ 0

Uncategorized Items - alrm-2023

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2020-06 [Member]