Alarm.com posted seemingly solid results in Q3 beating wall street expectations and raising revenue guidance for the year:
Total revenue increased 33% to $90.0 million for the third quarter of 2017, compared to $67.8 million for the third quarter of 2016.
Non-GAAP adjusted net income increased to $13.3 million, or $0.27 per diluted share, for the third quarter of 2017, compared to $9.3 million or $0.19 per diluted share, for the third quarter of 2016.
Total revenue for the year is expected to be in the range of $332.8 million to $334.0 million, raised from the range of $326.3 million to $327.8 million in Q2 report.
http://investors.alarm.com/releasedetail.cfm?ReleaseID=10478…
However what worries me is the bit they saved for the very end of the report:
Non-GAAP adjusted net income is expected to be in the range of $43.2 million to $43.7 million, which now adjusts the effective tax rate used in calculating income tax expense to exclude the tax windfall benefit through the third quarter due to the impact from the new accounting standard for employee share-based transactions.
This results in them lowering the adjusted EPS guidance for the year from $0.96 - $0.98 to
$0.87 - $0.88 per diluted share. That’s quite a jump! Not sure what to make of it as I’m not much of an accountant.
Any ideas?