Segment Information

6 Months Ended

Jun. 30, 2022

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% and 95% of our revenue, net of intersegment eliminations, for the three and six months ended June 30, 2022, respectively, as compared to 95% 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, 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
	Three Months Ended June 30, 2021
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	104,897	$	8,289	$	—	$	—	$	113,186
Hardware and other revenue	74,614		2,908		(779)		(1,072)		75,671
Total revenue	179,511		11,197		(779)		(1,072)		188,857
Operating income / (loss)	19,456		(2,842)		233		(122)		16,725
	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
	Six Months Ended June 30, 2021
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	206,159	$	14,410	$	—	$	—	$	220,569
Hardware and other revenue	138,884		4,923		(1,684)		(1,337)		140,786
Total revenue	345,043		19,333		(1,684)		(1,337)		361,355
Operating income / (loss)	37,163		(5,696)		387		(126)		31,728
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
Assets as of June 30, 2022	$	1,295,908	$	39,651	$	(80,061)	$	43	$	1,255,541
Assets as of December 31, 2021	1,264,416		37,198		(69,595)		(4)		1,232,015

Our SaaS and license revenue for the Alarm.com segment included software license revenue of $6.9 million and $14.0 million for the three and six months ended June 30, 2022, respectively, as compared to $8.3 million and $17.0 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, 2022 and 2021.

Depreciation and amortization expense was $7.5 million and $14.9 million for the Alarm.com segment for the three and six months ended June 30, 2022, respectively, as compared to $7.4 million and $14.7 million for the same periods in the prior year. Depreciation and amortization expense was $0.3 million and $0.6 million for the Other segment for the three and six months ended June 30, 2022, respectively, as compared to $0.1 million and $0.2 million for the same periods in the prior year. Additions to property and equipment were $24.1 million and $25.7 million for the Alarm.com segment for the three and six months ended

June 30, 2022, respectively, as compared to $2.7 million and $6.2 million for the same periods in the prior year. Additions to property and equipment were less than $0.1 million and $0.1 million for the Other segment for the three and six months ended June 30, 2022, respectively, as compared to $0.1 million for the same periods in the prior year.

We derived substantially all revenue from North America for the three and six months ended June 30, 2022 and 2021. Substantially all of our long-lived assets were in North America as of June 30, 2022 and December 31, 2021.