Alarm.com Holdings's gross profit for the
three
months ended in Dec. 2024 was $158.6 Mil. Alarm.com Holdings's gross profit for the trailing twelve months (TTM) ended in Dec. 2024 was $613.7 Mil.
Alarm.com Holdings had a gross margin of 65.49% for the quarter that ended in Dec. 2024 => Durable competitive advantage
During the past 13 years, the highestGross Margin % of Alarm.com Holdings was 65.72%. The lowest was 59.16%. And the median was 63.16%.
Alarm.com Holdings Gross Profit Historical Data
The historical data trend for Alarm.com Holdings's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Alarm.com Holdings's Gross Profit
For the Software - Application subindustry, Alarm.com Holdings's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alarm.com Holdings's Gross Profit Distribution in the Software Industry
For the Software industry and Technology sector, Alarm.com Holdings's Gross Profit distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's Gross Profit falls into.
Alarm.com Holdings Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Alarm.com Holdings's Gross Profit for the fiscal year that ended in Dec. 2024 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $613.7 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Alarm.com Holdings had a gross margin of 65.49% for the quarter that ended in Dec. 2024 => Durable competitive advantage
Alarm.com Holdings Gross Profit Related Terms
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Alarm.com Holdings Inc has two reportable segments: Alarm.com & Other. The Alarm.com segment represents the cloud-based Software platforms for intelligently connected property & related solutions. The other segment is focused on researching, developing & offering residential & commercial automation solutions & energy management products & services in adjacent markets. The majority of revenue is from the Alarm.com segment. The platform allows home & business owners to secure their properties and automate & control an array of connected devices. SaaS & license fees from service providers, who resell these services & pay Alarm.com a monthly subscription, are the sources of revenue for the firm. The majority of revenue is generated in the United States & Canada.
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