Segment Information

9 Months Ended

Sep. 30, 2019

We have two reportable segments:


•	Alarm.com segment


•	Other segment

Our chief operating decision maker is our chief executive officer. Management determined the operational data used by the chief operating decision maker is that of the two reportable segments. Management bases strategic goals and decisions on these segments and the data presented below is used to measure financial results.

Our Alarm.com segment represents our cloud-based and Software platforms for the intelligently connected property and related solutions that contributed 94% and 93% of our revenue for the three and nine months ended September 30, 2019, respectively, as compared to 93% and 94% for the same periods in the prior year. Our Other segment is focused on researching, developing and offering residential and commercial automation solutions and energy management products and services in adjacent markets. Inter-segment revenue includes sales of hardware between our segments.

Management evaluates the performance of its segments and allocates resources to them based on operating income (loss) as compared to prior periods and current performance levels. The reportable segment operational data is presented in the table below (in thousands):



	Three Months Ended September 30, 2019
	Alarm.com			Other			Intersegment Alarm.com			Intersegment Other			Total
SaaS and license revenue	$	79,954		$	4,970		$	—		$	—		$	84,924
Hardware and other revenue	41,016			5,484			(1,287		)	(2,257		)	42,956
Total revenue	120,970			10,454			(1,287		)	(2,257		)	127,880
Operating income / (loss)	12,772			(561		)	62			(78		)	12,195

	Three Months Ended September 30, 2018
	Alarm.com			Other			Intersegment Alarm.com			Intersegment Other			Total
SaaS and license revenue	$	70,884		$	3,408		$	—		$	—		$	74,292
Hardware and other revenue	34,642			5,978			(1,343		)	(1,721		)	37,556
Total revenue	105,526			9,386			(1,343		)	(1,721		)	111,848
Operating income / (loss)	(15,593		)	(1,084		)	26			(43		)	(16,694		)

	Nine Months Ended September 30, 2019
	Alarm.com			Other			Intersegment Alarm.com			Intersegment Other			Total
SaaS and license revenue	$	233,459		$	13,854		$	—		$	—		$	247,313
Hardware and other revenue	107,884			15,810			(3,364		)	(5,768		)	114,562
Total revenue	341,343			29,664			(3,364		)	(5,768		)	361,875
Operating income / (loss)	37,182			(1,782		)	71			(10		)	35,461

	Nine Months Ended September 30, 2018
	Alarm.com			Other			Intersegment Alarm.com			Intersegment Other			Total
SaaS and license revenue	$	204,622		$	8,626		$	—		$	—		$	213,248
Hardware and other revenue	88,245			15,143			(3,585		)	(3,959		)	95,844
Total revenue	292,867			23,769			(3,585		)	(3,959		)	309,092
Operating income / (loss)	8,335			(4,548		)	(211		)	233			3,809

	Alarm.com			Other			Intersegment Alarm.com			Intersegment Other			Total
Assets as of September 30, 2019	$	534,948		$	18,144		$	(52,086	)	$	—		$	501,006
Assets as of December 31, 2018	482,666			19,629			(61,309		)	(1		)	440,985

Our SaaS and license revenue for the Alarm.com segment included software license revenue of $10.8 million and $32.8 million for the three and nine months ended September 30, 2019, respectively, as compared to $10.5 million and $30.6 million for the same periods in the prior year. There was no software license revenue recorded for the Other segment during the three and nine months ended September 30, 2019 and 2018.

Depreciation and amortization expense was $5.5 million and $15.8 million for the Alarm.com segment for the three and nine months ended September 30, 2019, respectively, as compared to $5.8 million and $15.9 million for the same periods in the prior year. Depreciation and amortization expense was less than $0.1 million for the Other segment for each of the three and nine months ended September 30, 2019, as compared to $0.1 million and $0.2 million for the same periods in the prior year. Additions

to property and equipment were $4.7 million and $8.5 million for the Alarm.com segment for the three and nine months ended September 30, 2019, respectively, as compared to $3.9 million and $10.1 million for the same periods in the prior year. Additions to property and equipment were $0.1 million for the Other segment for each of the three and nine months ended September 30, 2019, as compared to less than $0.1 million and $0.1 million for the same periods in the prior year.

We derived substantially all of our revenue from North America for the three and nine months ended September 30, 2019 and 2018. Substantially all of our long-lived assets were in North America as of September 30, 2019 and December 31, 2018.