Alarm.com (ALRM) 8 Nov 222022 Q3 Earnings call transcript

Thank you for standing by, and welcome to the Alarm.com Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's program is being recorded.

And now, I'd like to introduce your host for today's program, Matthew Zartman, Vice President, Investor Relations. sir. ahead, go Please

and Please Alarm.com's is note everyone, Earnings being Quarter Conference Call. that welcome afternoon, Third to XXXX recorded. Good this call

President Valenzuela, today CEO; us from are Trundle, Joining Alarm.com and CFO. our our Steve Steve and

impact potential Before rationalization including today's will global emerging we the market and the with our impact of and offerings; among of projected respect enhancements new supply objectives; include during acquisitions key the current chain growth strategies; plans and dispute, include, of call financial for strategies, which opportunities growth and to begin, performance trends reminder. legal COVID statements, assumptions dynamics, and conditions; continued expansion pandemic, discussion cost our macroeconomic and quick anticipated our of in others, demand; acquisition; a the spend Management’s and our recent challenging forward-looking markets. related market Vivint and thereto, to adverse platform and and integration dynamics business prospects anticipated Noonlight

materially reports that contained September SEC results intend file quarterly to the These are with in after in are with currently cause of These we SEC press in and XX, and earnings forward-looking shortly us. beliefs Factors available Commission Risk quarterly subsequent and to file current we filed to on those quarter August statements differ that our Form forward-looking statements. on report today's on expectations our the this the the in our time, XX-Q based Securities to including XX-Q time those XXXX most to with call, actual and information risks release uncertainties, contained including XXXX for on from statements section recent report the X, from the could subject and that on Form and Exchange ended

and events during as this these guidance. call, update speak additional or date management's believes Please statements Management commentary to the non-GAAP measures made trends. undertakes this of the in subsequent tool of to provides obligation for the law. reflect these to use will that required Also, the non-GAAP only and performance note, forward-looking measures extent company's an statements no call during by financial provide Alarm.com circumstances, non-GAAP except financial investors today's that to understanding include use and

However, financial be information our Relations for non-GAAP substitute our in will posted release, website. our financial press our which Relations be or conference the measures website and we of a earnings of for metrics financial be can meant prepared a GAAP webcast directly statement comparable is with tables accordance not to webcast on reported considered our will in and to Reconciliations archived this results in be This the call call as The between available non-GAAP found GAAP. replay Investor available is and also on have Investor being website. at is isolation investors.alarm.com.

Let's now turn over Trundle. Steve call the to

You begin. may

Thank Good to you, welcome afternoon, everyone. Matt. and

report to of another results. pleased are We solid quarter

third Our up the period was same year. million, and in over XX.X% revenue last the license SaaS quarter $XXX.X

Alarm.com $XX.X and their was thank want quarter million. partners EBITDA our third adjusted Our I service team performance. the strong provider the in to continued for

XXXX. patent our In the matter platform of our close Vivint our addressing talk to and time my license the acquisition. initial new for with expand addressable I'll some with several has recent update into spend numbers market bit that on some agreement also comments look capabilities that a today, and I'll thinking about related gone you our Noonlight

about commercial will our been that XX% work midsized in have XXXX. Commercial the large Video now market Alarm.com This cameras for estimate with we XX% the with Solution Business expanded camera for support. We and our Video introduction of third-party installed Solution to quarter, of third-party settings, since that

our camera without can adopt, factors to of businesses cameras. commercial the all for diversity leverage existing of the also easier replacing cost We solution. video for wider it make integrated form the video a will capabilities solution and cameras third-party our installed fit expand Supporting to

we with To For and specific of the can needs pinhole, leveraged fisheye, camera technology other video new thermal for address this and for commercial team enterprise businesses deploy now our by Alarm.com team requirements the types. deployed widely capability created example, customers. OpenEye

of acquisition, XXXX that portrayal good our a It's producing. the synergies is ongoing

enables We our our receive respond generated with Alarm.com the by stations Escalated to This software video also of solution introduction the and to partners' analytics of applications expanded events of Events. software. monitoring suite video capability

or a responders customer's live monitoring access and as of agent subscriber. video parking the dispatch detects we enrolled cameras Alarm.com A station. business needed. service, backyard from quickly when and a in example, lot monitoring after-hours, person video clips the a by The first feeds the For into agent then evaluate situation can in alert a can can

our opportunities that adds signaling services Events provide. for expands for also and capabilities. suite software-based of new of Escalated Events a monitoring security new It alarm professional layer response emergency our creates proactive property Escalated partners applications and owners. protection

for deliver can services the We professional to typical the offered new services, while to of create markets our value today. customer believe partners enhancing monitoring we also

Our gives space. scale these recent acquisition opportunities developing Noonlight response in also us the further in of emergency

attracted Application XXXX, organically Noonlight Mobile as a launched in X.X and has over users. Personal million Safety

that response company's has emergency the and Safety Connected evolved event a platform services. context-aware, management technology time enables that into During

range a integrate acquisition. that our A and things market-leading of Noonlight to their appealing Noonlight IoT about services number offerings. of led saw brands We vendors, into device

to to monitored response by devices more these security the standalone vendors not the in that products of their provide device into First, been traditionally broadly Noonlight allows channel. Many solutions. market. offering as emergency Noonlight's have SaaS Alarm.com IoT capabilities vendors fast-growing, IoT participate incorporate enables

technology opportunities our see create leverage and to Alarm.com partners. for platforms markets Second, the Noonlight we across service provider and new

Detection into Shooter Systems simplifies and products incorporation expand response the would Integrating such IoT IO, API meaningfully Connected with use any value Noonlight's capabilities emergency and of emergency services example, device. Flex proposition. the their For response nearly Car existing as cases

will share The our technology customers They on and of operate and R&D. continue their to committed will strategy founders exceeding philosophies. focus and team services platform. driven of management aspects a current their expanding prospective expanding platform Noonlight's are their expectations and independently. Noonlight by to the many growth leadership through Lastly, team

the want to gears and initial Shifting look to how matter it I for relates Vivint address our XXXX.

As XXXX. you patent in Alarm.com Vivint we that it will reached with royalty agreement associated with know the recently the notified that stop us fees Vivint paying license

We agreement. have filed arbitration under for our

which not is expect We take public traditional arbitration the XX process, litigation about and open to months. like confidential to XX to the

including of aggressively patents have over we defending global investments intend in over XX our portfolio of issued our additional patent patents continue years, We pending. made technology and XXX the the to course

As will quarterly Vivint matter, $X we revenue impacted Alarm.com license total XXXX. quarter previously and revenue believes disclosed per million through that beginning approximately and XXXX the by be and fourth with of regarding the quarter SaaS

from excluding The rest and more year-over-year. Alarm.com's In projected grow to grew Vivint half than patent somewhat of Alarm.com's Vivint revenue of license XXXX, revenue. SaaS license slowly was SaaS XX.X% revenue the the first

our in the The we term that has the our made the how emergence know, quarter As we of going Vivint typically Nonetheless, early matter fiscal call year. provide look more weeks ahead. current thinking objective perform year investors will an longer we think the are by for to in following initial challenging. conclude business third providing the for few again last our

few but as speak wanted some provide will in well. about further Valenzuela our XXXX estimates minutes, I to a Steve commentary

initial For this revenue conservatively license Vivint budgeted assumed estimates, year's look in have and no we XXXX. from

know million to $XX in to $XX in have budgeted XXXX. expenses the what range exactly in costs also legal XXXX. of do early legal related We not additional will Vivint for At our this potential we significant million be stage,

the do positioned not to budget We financial by constrained without revenues deploy options meaningfully impacts to our next loss of license our these expenses patent be potential The we budget want legal or combination a our full EBITDA However, our want XXXX surprising investors to find of estimates. year. outlook. adjusted our legal with

legal these they some business's the subside. in not to when are the the point future Fortunately is costs matter and operation concluded, will core at

to Since news our of This before change in doesn't core several notification, I and in strategy saying I you way. receiving the I've any today. asked by Vivint I've rest heard the business. like going make strategy that growth our our liked adjustments from times answered what strategy I been still Vivint's are

few increased our years, also successfully streams. expanded of the into the future, level profitability. we last have Alarm.com In the such We've revenue our that platform maintaining while R&D diversified building investment for and also are we

commercial we of and housing monitoring we strong and residential As toeholds management; have HVAC Noonlight active in energy in and the our space. multifamily most non-traditional have the recently video, access, a vertical result, detection with shooter segment, and commercial businesses the channel, intrusion acquisition the created established

installed and international an this partners our XX continuing serves while service annually. built over done systems treat now globally business all We've also a as that XXX,XXX countries top priority. to over provider We've

our IoT, in leverage AI, businesses multitenant design these competencies of user-oriented cloud high-availability SaaS. Each and

We making lives properties footprints in energy does they people efficient in have of technology and people And saving things entire across too. great that more these reducing are literally good teams developing them and areas keeping the safer, place communities. for individual

million in businesses. areas that can each build multi-hundred believe we dollar of We these

strategies. we modest to feel ample are plan see even litigation changing I to We'll we rationalization us some pursue. our the to but don't address strategy to continue produce about where headed core enable good So us cash and as we cost matters, I do

team I our third trajectory. trust especially for execution confident provider the with and our plans I quarter our our thank year. remain I'm service and summary, investors our throughout of and hard with In our to our results the work with their pleased in partners continued business. their for want

Steve let our over and to provide review results that, turn Steve? me guidance. with to things And financial Valenzuela

third with quarter before our questions. of financial a I'll for opening and review Steve. provide the Thanks, guidance call then our results begin XXXX

of quarter down $X.X SaaS grew software third Connect This ago $XXX.X in to last in and quarter. year includes revenue XX.X% for the the license as quarter million year expected third the revenue same license the million approximately from $X.X million. from quarter

and remains of a the was $XX quarter. third up revenue renewal over and license in SaaS quarter revenue revenue XX.X% QX high in Our with XX% million third the XXXX. rate visibility Hardware other

XXX sales continue grew basis to some to up quarter the modest year-over-year. quarter the of SaaS contributor about benefits. license million margin growth third third for for quarter points to same revenue XX.X% XX.X% the scale revenue. due was last year be over main hardware camera $XXX.X Video in gross the and Total

third quarter XX.X% relief year and during up price XX.X% Hardware last quarter, gross modest from took to an margin last we some our shipping quarter in from started costs and the same improvement effect. increases see XX.X% was for the as

our to be XX% continues global chain of However, still gross historical to margins challenging. this supply below is the as XX%

margin gross was margins We for quarter, expect in and improved the to XXXX, hardware QX to gross hardware the for margins. fourth third of XX.X% in quarter XX.X% Total due license be to XX% from the and range up the SaaS XX%.

year. for in expenses. expenses. $XX.X the were due employees Turning X,XXX ago. in to up year to same million to operating compared the from ended quarter the R&D, compared third in employees quarter million, $XX.X third quarter X,XXX expenses the quarter in of quarter employee-related XXXX, the employees R&D XXX third with a increased employees headcount XXX mainly to third last to Total We

Sales in revenue year. revenue or million the quarter of total same $XX.X $XX.X compared XX.X% third quarter marketing and last million in or expenses the of XX.X% were to

and increased third legal Our quarter up were million $XX G&A costs. same the in the last to expenses million, from expenses $XX.X mainly year, fees, employee-related in due travel quarter

G&A non-ordinary for the QX expense to includes million, XXXX. quarter million expense compared $X.X in $X.X course litigation of third

This our and expenses course acquisition measures and are part of of Non-ordinary financial of are adjusted expenses from performance. approximately measurement for Noonlight. acquisition quarter acquisition-related of includes non-GAAP our litigation also excluded $XXX,XXX our

diluted for $X.XX QX, third $X.XX share $XX.X Non-GAAP the Non-GAAP XXXX. share compared compared or $XX.X million per adjusted was of the quarter was XXXX. to EBITDA the income or net million, to for up QX, in million, was XXXX. third $XX.X quarter, income the GAAP of million quarter net in quarter, in million, $XX.X adjusted GAAP income diluted million third net $XX.X In per from third $XX.X

million ended We of quarter cash cash and with third $XXX.X the equivalents.

post-closing During pullback we quarter, Noonlight, million $XX.X the an which XX% controlling interest million in to excludes third used provisions. acquire in $X.X

our turn of fourth license I outlook, from our revenue want results. As excludes the our XXXX, patent to forward financial to going that with listeners I financial now quarter Vivint beginning guidance remind

and SaaS we our the in release, we license As our be our flow cash expect approximately million on indicated to $X press per earnings and revenue quarter. impact and

license expect this matter. enforce also as to We additional legal incur significant fees our we agreement in patent

to expect $XXX.X of we $XXX.X license XXXX, of quarter million million. SaaS fourth revenue the For and

the For million guidance year million. $XXX to $XXX.X our SaaS million to to of $XXX.X full $XXX.X be of compared XXXX, and license million prior revenue expect to we between

total which compared of to other rules. projecting of project hardware We of our to guidance million $XXX.X million includes current our XX% tax currently are XXXX million, non-GAAP XXXX $XXX.X $XXX revenue and estimated to $XXX prior million to $XXX.X to at for revenue under remain million. $XXX million, tax rate for We

of EPS average weighted XX is an million based shares on estimate outstanding. diluted

XXXX $XX to full expense year million. of expect compensation stock-based We million $XX

year. are and our in further we of stages, agreement These provide thoughts important in evaluating patent with early disruptions ongoing our among in while unforeseen Vivint. challenges on the could early be the Finally, guidance initial with new caveats. other impact chain the a I from and measures some global the license are XXXX, stages factors with we our legal planning will supply enforce There few results to could events

we estimate $XXX adjusted SaaS to non-GAAP revenue million, million patent to million. million previously said, XXXX $XXX for our range currently revenue. between million. XXXX be $XXX EBITDA and to project be our license XXXX will license to revenue between between currently million that for could excluding We $XXX With mentioned $XXX the $XXX for Total

outlook flexibility higher of part incurring are strategy legal year, assumes a normal of As reflects the our our ongoing costs. during the costs anticipate operating Steve and Trundle we EBITDA some noted, our we of XXXX that which retain in not lot

growth Noonlight, XX% initiatives, invest better earnings prospects negative business. or as has modestly In will initially in growth anticipated, acquisition growth plan newest XXXX, but with in impact to our strong we have a which invest continue on to our our including their we

will property profitable financial market-leading delivering invest continuing XXXX are report We on In growth. guidance while provide our fourth next our we smart early quarter year. summary, to when results initial XXXX, focused for solutions, we in

call Q&A. the And with open that, operator for please

Capital. comes our Instructions] from And [Operator first Imperial line Brian of the question Ruttenbur from

please. question, Your

very you taking for call. much my Thank

Vivint, the to was questions last? maybe supposed time there of through of going terms it to long can and of just how around lot In I'm the was or off, they a discriminately going that it And getting contract was a you certain cut you're period walk that. to But us be it Was process? sure the perpetual end?

this Hey, Brian, Steve Trundle is speaking.

is confidential. entire confidential terms So process. Unfortunately, I agreement wish, agreement through I of you the could the the walk the are itself

prepared could spent so. of there, I why that's So my can't comment of we kind providing some on I what time actual insight, but in remarks the terms unfortunately, the agreement

-- it as contracts? is besides Maybe ADD business, me. then is a a of excuse ADT is -- percentage And Is other Okay. that on Vivint follow-up large large place. said that out much your ADT any in call there small or was they agreements there very agreement a of I bunch little the very your and

license probably plus of would range. And say No. Well, under that in license platform a to as when point other of majority later there time. as licensees. was revenue I think high transition we terms are at agreement a ADT I kicks Vivint that we component revenue they Google-based the in in from licenses that a the actually the of licenses the XX% discussed articulated, in

Thank you much. Great. very

Yes.

you. moment comes Kalia One the our next Barclays. our Thank question. for next Saket from line And of from question

please. question Your

it's just for XXXX. preliminary ADT, to providing while. here. picking impact is talk was ADT guys, thinking Hey, questions maybe the least thank if we're going Great. But I impact to you we're level wondering how preliminary guidance. very could the taking By Valenzuela next up year. at your Steve thinking way revenue. set for you that know help thanks look That's there Maybe The Trundle can just my year early. maybe at a Steve in to in that helpful very about take ADT you. Okay. ADT you that and to -- about is for I on this point XXXX impact how

Alarm.com time, through think, announced of installed Tunnel a speaking. revised at ADT to time agreement with look Steve lot together Sure. that I would end This we on the ADT the professionally that's when very that working period create what the We anticipated now to is platform XXXX. -- of accounts of we their Yes, all the But going exactly almost themselves relationship different fronts. healthy. be is on we for and believe probably longer ADT internal plans have to We're a are. we

second And at installed that would through I we first taper then go the quarter know the together into professionally platform. put as numbers, began that that when our assumed we initial systems expectation on be And we the quarter. to Alarm.com somewhat look we least

I point but be year. expect until as the we'll based it think usual. middle our plan business or as communications. it's probably level that some business Again at on to their is usual less at part think more this I this best ADT's guess is And the of

go Sorry, Steve ahead, Valenzuela

Saket less we hardware major hardware a modest next we that we've indicated, ADT. a contributor factored been hardware for in year not but guide both They've XXXX It's have from our into revenue, impact. revenue revenue. to for factored for

I -- from think preliminary XXXX, for guide it. some, you That's normal adjusted even helpful. expecting just EBITDA were that non-GAAP course some Can EBITDA, litigation EBITDA very Steve course, Vivint. Valenzuela litigation what for expense There's what's I we EBITDA lower than remind the non-normal know like Vivint. little Got that my for is there's maybe Yes. for you. of a that course expense. what's us excluded number included? bit follow-up

So we kind I what make clear wanted included? just on were was versus excluded and being to wasn't sure. sure I

affecting $XX the million. nature to legal year of out It's EBITDA Most $XX that Steve of number legal most of that that threw of next spend. is that for million adjusted of Yes. because Trundle

our it We've most lower In the EBITDA. hitting And adjusted like is. adjusted initial EBITDA be the our of not of is XXXX. for other into adjusted legal the of XXXX, spend for So, out we've put why adjusted gets EBITDA some reasons EBITDA together of reducing guide that's the legal assumed one when adjusted and it's look technicality. would that words,

Just to bring through. that

So we pursue. don't may at actually exactly know measures legal Saket, what this point we

we not this those out juncture. costs be incremental assume adjusted have would to So that at

assuming adjusted in expense the at course, And million just so would the adjusted that mentioned that, into longer $XX you prepared majority have, not of course, at have be actual line top point Steve indicated of I least that, of then that remarks. we're flows component you sort my out. no EBITDA. And this of

And I then quarter thing mentioned we into high-growth did because and are that think a the we've that Noonlight only invest is planning in the to XXXX, other business throughout acquire business. it's third

probably of are And provided investment, all new well. million there's a investment the as $X factored that's $X or into look million there making that those initial So we you. we're

go back clear. it, Got queue. very in I’ll guys. Thanks

you. Thank

next from Thank moment comes you. Mark our One James. of the question. Cash for our line Raymond next question And from

You question please.

Thank questions. on for This Adam. the is for Mark

maybe broadly, the in kind refusing Vivint these circle XXXX from Is to contractor it's the pay, beyond? to you could makes talk less two way. outcome of relationship guess different different maybe similar back about about anything With if and what a pursuing to in I last likely? there and just So, that can ask strategy stop ADT

we're just is a say would that -- I where would relationship relationship Vivint -- guess our positive I very with I just

ADT.

We're to I'm sorry, collaborating every subscribers millions service of and ADT. day. with millions

that's the of win-win a of relationship little we more our oriented on type much problematic more of or while IPO more has my view. filed It's Vivint, less roadshow a relationship and who a overall against together. with us probably contrast just were working been that during bit suit you a we're and So

know Noonlight. maybe something And and you follow-up. how those just you. adjacencies? I accelerate about areas commercial, do larger helpful. could the weigh Thank if sheet healthy would ask consider acquired very coming is like a diversification And different That's M&A perhaps Thank is and you valuation talk could philosophy you Okay. Balance you just I and to international, down. you. to if

Yes, absolutely.

this acquisition. – So just did we continue finish we

say, increasingly some are focus We're now. on opportunities to at. where is seeing more of help looking is healthy domain a expansion We area valuation. attractive have we that The already have you opportunities accelerate been pretty International us various various internationally opportunities. mentioned an at some continue looking just us is that at to that becoming look level what are as I'd but in rationalization a and may we fact

and We continue then to smaller for to looking at always look usually much but opportunities. domain the domain, we energy continue attractive acqui-hire look at video we're

Did that answer question? your

much. Yes, thank so you

Thank moment question question. from Heslin next for our comes And the line of you. ROTH. Dillon next from One our

Your question please.

Hey, thanks question. for my taking

more start, growth comment to could about a little if Just and the cadence bit commercial of you I'm wondering there.

a year, the I mentioned, you of bit more growth better think this seeing earlier coming there. little out pandemic, in

I'm curious call like cadence adaptability were main the better what of trying XX% to that get if XX% penetration? seeing is looks So like it camera to to just And terms you you there. the in want point pain

Yes. cadence pretty The good. is there

particularly As we business X.X last at in velocity which put we potential around pretty OpenEye SaaS America. subscribers pace. a strong. to that is revenue at the on business The SMB, TAM, I – its the The nice we're mentioned grow have focused continues million quarter, with North the

progress the side. on So business we're good see continuing and small commercial to generally,

a the the time servicing supporting job commercial hospitals tends OpenEye range a enterprise done OpenEye with their has its of not service of third-party camera through video which deployments. large to business customer as at footprint, is think institutions, the a smaller Alarm.com much solution. Oftentimes, support meaningful Alarm.com an can footprint terms smaller commercial somewhat In of location. manufacturers you schools, typically specifics, issue. part a a different video of cloud-based is with In of great

the deployed. And software a getting cameras, real all creates out ripping though to even impediment existing there the

for it our a replacement restaurant to with up on sell eight light actually to that have call restaurant cameras You commercial video through solution.

of our will of and cameras, be little more service a XXXX, have a So closing effective bit at range least being think a wider since to nimble in allow providers they that able range we been support opportunities installed wider that see. to those

Great. look fiscal XXXX for from the a and business if And your about of growth do then Vivint how from contribution coming year core as try you the impact, SaaS the that Noonlight? think versus to I quickly normalize projections at follow-up, delta preliminary

seen not out amount Yes, a that -- number for little get simply we is the contribution would put probably twofold Vivint is deducted higher we what are matter. you're the out there's that already Yes, there. normalizing than you you a and the taking if

First, probably business core the is previously performing a expected. little we stronger than

So a expecting from contribution, there's some around contribution right that. that then million Noonlight. it modest call And there's $X from we're

Is $X it. number that Got annual per million the or quarter?

Yes, that is.

Thank turn I’ll in the queue. you. back

Sure.

Our from Willow [Operator from of next comes question you. Thank Blair. the line William Instructions] Miller

Your question, please.

all. This for on Pfau. is Hi Matt Willow

given and the thinking year? Are there considering quarter are expenses you expected? investments you're than if how and about pulling higher any fees So back are environment, current next areas especially next on legal

I'll question. good with that. start Yes,

across I what rationalization I modest the do think called business. will some cost We

on like we there it one strategies. So, we we costs elsewhere, can we expenses pull cash to without as be have litigation growth that higher are to can, to as side our cash produce think much -- going some like in be produce and some so would we prudent and when the probably of do to we impacting

of cases the some reduction really we we're think things that any -- of dramatic in planning And of that very most already said, the Noonlight or rational in internationally, higher here modest most that wholesale there. growing further, growing will some we've the over done commercial in look. invest, But in are our cost launching initial costs. nature. we're not cuts all costs We either investing there postponement places the terms And and temporal on to business business, work decade. in are a we're so in, these business I be growing as the think next that So, cost of all XXXX some

don't it really it would those anymore. out and the you overreacted you come and you then have of company if costs you So, to hijack

we're So that's it. of kind how thinking about

Okay, Thanks. great.

of from One for you. next Thank next the from comes question. Jack And Aarde moment our line our Group. Maxim Vander question

please. question, Your

Aarde. This question. up for Hi. for my Jack Jack calling is taking Vander Codera Thanks again

check got legal estimated But I is any quick I a impact expenses? on XXXX And Just was then, XQ I XXXX more there follow-up. have visit, the wondering, range. one

for have Yes, some we in XXXX. factored legal guidance in QX expenses do our

factored that our in We EBITDA the for guidance haven't really quarter. is it broken out, but

we factored in of less. million the $X And course,

you -- you take there's million some that off So adjusted less are in Vivint could plus legal the if as take not EBITDA adjusted the bottom-line, the that comes assuming from well. $X the of out right, we're right expenses factor

guidance. million impact factored And has course, there's, to QX it That's as our about, into our then, in costs for of talked EBITDA some on less $X we for Noonlight in there guidance than our that QX.

you bottom I then, the Yes. And preliminary, again? that missed XXXX, actually, range do mention I of missed mine the the EBITDA, just for the

clarify, look initial for the EBITDA, want XXXX, just XXXX, The I to right?

Yes.

Okay.

$XXX XXXX. we've a look, to of range adjusted reset EBITDA million for million So $XXX

Steve matters So variability the of that a because wide range, talked various the of about.

just And color a wondering analytics much. rate one any bit if on share last camera for services you. on could video I'm Yes. Thank I so then, you question, turn. new of tax a camera you installs? little Thank and the have actually

Yes, the over those very of XX% QX progress video were to over attachment well. rate XX% rate and video in continues to analytics. video for continues attachment The do was

perform well, revenue in hardware So see to sales. driven with is our very Camera hardware well progress revenue, video. continuing that we quite continue good And mainly by as you where tell could to

amazing back That's Thank I'll you in jump color. guys. queue.

Thank you.

gentlemen, Thank participation. you. This does for ladies conclude the question-and-answer session you, as program. well your as Thank and today's

disconnect. now Good may day. You