According to a Fortune Business Insights report, the global smart home market size is projected to grow at 29% CAGR to reach $622.59 billion by 2026. Virginia-based Alarm.com (Nasdaq: ALRM) is investing in product upgrades to cater to this growing demand.

Alarm.com’s Financials

Alarm.com recently reported its fourth-quarter results. Q4 revenues grew 18% to $165.6 million. Adjusted net income increased to $23.1 million, or $0.45 per share, surpassing the market’s estimates of $0.27.

By segment, SaaS and license revenue increased 17% to $105.5 million and hardware and other revenues grew 19.2% to $60.1 million.

For the fiscal year, revenues grew 23% to $618 million and EPS was $1.75.

For the first quarter, the company forecast SaaS and license revenues of $104.8-$105 million. It expects to end the current year with total revenues of $660.5-$671.5 million and an EPS of $1.61- $1.72. The market has forecast revenues of $668.99 million with an EPS of $1.67 for the year.

Alarm.com’s Expanding Products

Recently, Alarm.com announced an integration with OpenEye to provide more robust security and intelligence solutions. As part of the integration, OpenEye’s Web Services (OWS) will be combined with Alarm.com’s cloud-based smart business security platform to give users enhanced video verification capabilities and advanced real-time alert notifications. The integration pushes sensor and event data from Alarm.com for Business systems to OWS so that subscribers are able to get actionable alerts, video verification of critical events, and streamlined incident video search capabilities. OWS users are also able to receive Alarm.com intrusion and access event alerts online for active monitoring, while remote managers are able to get mobile push notifications.

Alarm.com is also expanding its offerings to other connected technologies. It recently announced that users can now connect their cars and homes through its integrated security platform to help them stay informed about their vehicle’s status. Alarm.com Connected Car has been developed in collaboration with vehicle telematics solutions pioneer CalAmp and provides the availability of a vehicle monitoring solution within the smart home security system. Users can get vehicle insights, notifications, and home automation features through the Alarm.com mobile app. Connected Car device plugs into a vehicle’s OBD-II port for easy self-installation and provides users with notification on diagnostics, driving behavior, and unexpected movement.

The company also released its the first commercially available touchless video doorbell. The current pandemic conditions have made people wary of touching unknown surfaces. To reduce public health risks, the Alarm.com Touchless Video Doorbell leverages advanced video intelligence for touch-free operation. Unlike other devices that use motion detection for doorbell cameras, rapid and accurate person detection activates the Alarm.com Video Doorbell when a person is detected. To keep the homeowner safe, the doorbell triggers the chime in the home, sends a mobile alert to the homeowner, starts recording a video clip, and allows homeowners to see and speak with visitors through its live HD video and two-way audio.

The smart home security market has many competitors ranging from niche, smaller players like ADT and Vivint, to much bigger technology players like Amazon and Google. Alarm.com has managed to maintain a place for itself in the industry by providing a wide range of products and services and partnering with other technology providers to drive adoption. It works with over 9,000 product and service providers that cater to both residential and commercial customers and has more than 6.8 million subscribers for its SaaS offerings, clearly maintaining its position in the crowded market space.

Alarm.com's partner program includes a wide range of authorized service providers that help provide better security, convenience, and control to more than 6 million of its active users. It also has an ecosystem-based partner program that allows for its technology to be seamlessly integrated into advanced hardware systems. The list of partners includes names like Liftmaster, Kwikset, ID Lock, and others whose products have been integrated with Alarm.com’s SaaS-based offerings.

Its stock is trading at $94.16 with a market capitalization of $4.7 billion. It hit a 52-week high of $108.67 earlier in January and a 52-week low of $40.92 in April last year.