Alarm.Com Holdings, Inc. (NASDAQ: ALRM)
Alarm.Com Holdings, Inc. (ALRM), a platform solution for smart homes company on Tuesday announced positive third quarter 2015 financial results. ALRM reported licensed revenue numbers of 36.2 million up 27% from third quarter 2014. Total Revenue was $54 million a 26% increase from third quarter 2014. Adjusted EBITDA was $9.7 million a 47% increase from third quarter 2014. Non-GAAP adjusted net income was $6.6 million a 44% increase from third quarter 2014. ALRM also announced that it has increased its guidance for the full year 2015 and provided its outlook for fourth quarter of 2015.
Alarm.Com Holdings, Inc. CEO Comments
“We executed well on our plan throughout the third quarter,” said Steve Trundle, President and CEO of Alarm.com. “Our core security and smart home services market in North America remains robust as we extend our leadership position with innovative new offerings for homeowners and commercial properties as well as technologies and resources that help our service provider partners manage and grow their businesses.” Globe Newswire
ALRM Technical Analysis
ALRM gapped up in price yesterday to $16.99, up from the prior day’s close of $14.57, which is a 17% increase on the favorable news. Taking a look at the daily chart, we can see the last time ALRM traded above this price level was on August 31st, when it closed at $17.02. Over the past month and a half ALRM has been rebounding off of lows of $11.15 reached on September 29th. The first real significant resistance level would be $18.85, which was reached twice on July 20th and August 5th forming a double top. ALRM has a low float of 7.99 million shares and was trading 3 times the normal daily trading volume. Both of these factors make the stock a prime candidate for the gap and go strategy. For trading purposes, my entry point would have been $17 looking for a run through $17.50. My stop loss would have been $16.85, fearing anything below that and the stock would start to fill in the gap up.
Alarm.com Holdings, Inc. is a platform solution for the connected home. The Company, through its cloud-based services, makes connected home technology accessible to millions of home and business owners. The Company’s multi-tenant software-as-a-service (SaaS) platform enables home and business owners to secure their properties and automate and control an array of connected devices through a single, intuitive user interface. The Company offers four primary solutions, which are used individually or combined and integrated within a single user interface accessible through the Web and mobile applications: interactive security, intelligent automation, video monitoring and energy management. The Company competes with iControl Networks, Inc., Honeywell International Inc., Comcast Corporation, AT&T Inc., Time Warner Cable Inc., Google Inc., Nest Labs, Inc. Reuters