Segment Information

12 Months Ended

Dec. 31, 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 93%, 94% and 95% of our revenue, net of intersegment eliminations, for the years ended

December 31, 2023, 2022 and 2021, respectively. 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):

	Year Ended December 31, 2023
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	514,673	$	54,527	$	—	$	—	$	569,200
Hardware and other revenue	309,778		6,501		(3,201)		(596)		312,482
Total revenue	824,451		61,028		(3,201)		(596)		881,682
Operating income / (loss)	74,562		(12,168)		4,017		418		66,829
Assets	1,477,674		73,621		(111,725)		(7)		1,439,563
	Year Ended December 31, 2022
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	478,134	$	42,243	$	—	$	—	$	520,377
Hardware and other revenue	317,937		9,097		(4,067)		(785)		322,182
Total revenue	796,071		51,340		(4,067)		(785)		842,559
Operating income / (loss)	66,744		(16,255)		417		131		51,037
Assets	1,366,343		53,927		(90,929)		34		1,329,375
	Year Ended December 31, 2021
	Alarm.com		Other		Intersegment Alarm.com		Intersegment Other		Total
SaaS and license revenue	$	426,823	$	33,549	$	—	$	—	$	460,372
Hardware and other revenue	284,721		9,275		(3,089)		(2,310)		288,597
Total revenue	711,544		42,824		(3,089)		(2,310)		748,969
Operating income / (loss)	70,646		(9,590)		766		(250)		61,572

Our SaaS and license revenue for the Alarm.com segment included software license revenue of $23.2 million, $26.8 million and $32.3 million for the years ended December 31, 2023, 2022 and 2021, respectively. There was no software license revenue recorded for the Other segment during the years ended December 31, 2023, 2022 and 2021.

Amortization and depreciation expense was $30.3 million, $29.6 million and $29.3 million for the Alarm.com segment for the years ended December 31, 2023, 2022 and 2021, respectively. Amortization and depreciation expense was $1.1 million, $1.2 million and $0.4 million for the Other segment for the years ended December 31, 2023, 2022 and 2021, respectively. Additions to property and equipment were $8.9 million, $28.4 million and $9.7 million for the Alarm.com segment for the years ended December 31, 2023, 2022 and 2021, respectively. Additions to property and equipment were $0.2 million, $0.3 million and $0.5 million for the Other segment for the years ended December 31, 2023, 2022 and 2021, respectively.

We derived substantially all revenue from North America for the years ended December 31, 2023, 2022 and 2021. Substantially all of our long-lived assets were in North America as of December 31, 2023 and 2022.