The underwriters for the offering are Goldman Sachs, Credit Suisse, Merrill Lynch, Stifel, Raymond James, William Blair and Imperial Capital.
This company is a leading platform solution for the connected home. Through its cloud-based services, Alarm.com makes connected home technology broadly accessible to millions of home and business owners.
Alarm.com has a multi-tenant software-as-a-service (SaaS) platform that enables home and business owners to intelligently secure their properties and automate and control a broad array of connected devices through a single user interface.
Currently the connected home platform has over 2.3 million residential and business subscribers and connects to over 25 million devices. More than 20 billion data points were generated and processed by those subscribers and devices in the last year alone. The scale of subscribers, devices and data makes Alarm.com the largest connected home platform.
Overall the company has experienced significant growth since its inception. According to data from a fourth-quarter 2014 Parks Associates report, Alarm.com had approximately 50% more subscribers than the next largest platform provider in North America.
ALSO READ: Deutsche Bank’s Top 3 Cybersecurity Stocks to Buy Now
Alarm.com also increased the number of homes and businesses it served from 0.5 million at the end of 2010 to 2.3 million at the end of 2014. Additionally within the same time frame, revenue grew at a 46% compound annual growth rate (CAGR).
In terms of the actual numbers, Alarm.com detailed:
For the year ended December 31, 2014, our revenue was $167.3 million, representing year-over-year revenue growth of 28%. For the first quarter of 2015, our revenue was $46.0 million, representing year-over-year revenue growth of 25%.
The company intends to use the proceeds of the IPO to increase its financial flexibility and create a public market for its common stock. The proceeds are also expected to be used for working capital and other general corporate purposes.
This has the chance to be a truly hot IPO this summer because it is already an industry leader, and considering the current home security market, Alarm.com has a lot of room to expand in the space. The functionality of being able to control a security system or home via mobile devices adds to the value of this service.
At this time we have yet to see the pricing data for the offering, but that will be the determinant of how hot this IPO could be.
Top Gaining Stocks
Top Losing Stocks