Alarm.com Launches New Smart Security Solution For SMBs

Alarm.com Holdings, Inc. (NASDAQ:ALRM) recently introduced a new security solution — Alarm.com for Business — for small-to-medium sized businesses (SMB). This system will provide proactive security and automate everyday work along with increasing visibility and awareness.

The latest solution will send important video clips directly to the business owners which will further help them to draw operational insights for their businesses.

With the latest move, Alarm.com enters the SMB space and strengthens its footprint in the security market. This will increase the customer base and drive the top line.

Coming to the price performance, shares of Alarm.com have returned 27.1% over a year, outperforming the industry’s decline of 28.3%.

Why Alarm.com for Business?

Alarm.com for Business is a unique product that combines intelligent intrusion detection, video surveillance, access control and energy management. The solution is easily controlled by Alarm.com and online interfaces.

Additionally, the solution integrates the cloud services and connected devices such as PoE dome, bullet and turret cameras into a single solution that helps to centralize security related work into a single and mobile-friendly interface.

These enhanced features are likely to help the app find greater adoption among customers.

Per a report from Markets and Markets, the cloud security market is expected to grow at a CAGR of 25.5% between 2017 and 2022 and to reach $12.73 billion by 2022.

Moreover, service providers of the company will be benefited as their key offering will expand for SMBs. Thus, the latest move is likely to boost its partner base by bringing in more service providers to the platform.

Expanding Product Portfolio — Key Catalyst

Alarm.com’s strong focus on innovation is helping its product portfolio to expand, which in turn is improving its customer base and service provider network.

In January 2018, the company launched a new smart thermostat which provides protection from home emergencies like HVAC failures, floods, water damage and mold. The product helped the company to expand its business into home security market.

In the last quarter, the company strengthened its portfolio of video cameras by increasing commercial customer base.

Moreover, the company’s subsidiary EnergyHub partnered with Rheem, which expands the roster of smart energy devices that utilities can control and manage at scale through EnergyHub’s Mercury 3.0 platform.

Per a recent report from a market research firm, IDC, the worldwide spending on security-related hardware, software and services is expected to reach $119.9 billion by 2021.

Hence, we believe Alarm.com will continue to gain momentum in the security market by generating strong revenues given its robust portfolio.

Zacks Rank & Other Stocks to Consider

Currently, Alarm.com sports a Zacks Rank #1 (Strong Buy).

Investors interested in the broader technology sector can consider a few other top-ranked stocks like Micron Technology (NASDAQ:MU) , Allegion (NYSE:ALLE) and Axon Enterprise (NASDAQ:AAXN) . All the three stocks flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Micron Technology, Allegion and Axon Enterprise is currently pegged at 10%, 12.32% and 25%, respectively.

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