- Alarm.Com Holdings, Inc ALRM, the platform for intelligently connected property, disclosed that Vivint Inc refused to pay license fees to Alarm.com under the Patent Cross License Agreement between the companies.
- Vivint has paid the required licensing fees to Alarm.com since the agreement came into force in November 2013.
- Alarm.com disputed Vivint's refusal of payment, filed for arbitration per the agreement, and actively evaluated additional legal remedies.
- Beginning with the fourth quarter of 2022, Alarm.com believes that quarterly SaaS and license revenue and total revenue will get hurt by approximately $6 million, or 2.8% of total revenue in the fourth quarter of 2022.
- Alarm.com also expected the update to affect its quarterly earnings and cash flow by $6 million, plus additional legal fees.
- Alarm.com also released preliminary third-quarter 2022 financial results.
- Third quarter SaaS and license revenue will likely be $132.8 million-$133 million, above its guidance of $130.9 million-$131.1 million.
- Third-quarter hardware revenue will likely be $82.0 million-$82.5 million.
- Third quarter total revenue will likely be $215 million-$215.5 million, above the consensus of $210 million.
- Price Action: ALRM shares traded lower by 9.39% at $61.15 on the last check Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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