Alarm.com Holdings, Inc. (NASDAQ:ALRM) Q3 2023 Earnings Call Transcript

Matthew Bullock: Super helpful. Thank you.

Operator: Just one moment for our next question. Our next question comes from Matthew Pfau with William Blair. Your line is open.

Matthew Pfau: Okay, great. Thanks. I’ll just ask for one more clarification on the legal expenses. There was a decent sequential uptick. What drove that in the quarter?

Steve Valenzuela: There is a lot of legal activity going on. As you can see, you’ll be able to see in the 10-Q. And so it’s really hard to predict the legal expense, right, because depending on the timing of events and circumstances, so it’s very difficult to predict. But yes, it was up in the third quarter. I think it was $5.9 million compared to $3.1 million a year-ago. And so, it will fluctuate quarter-to-quarter depending upon timing of certain events.

Matthew Pfau: Okay, got it. And then as we think about the hardware guidance for 4Q and for 2024, does ADT rolling off to its own platform have any impact on the hardware line, or is that just on the subscription line?

Steve Valenzuela: No, that also impacts the hardware line, and that is in our initial look model that we provided, so we would expect to see fewer devices, cameras, doorbells, et cetera, being sold as they execute their transition, so it does have an impact on the hardware line.

Matthew Pfau: Okay, great. Thank you.

Operator: Ladies and gentlemen, that concludes the Q&A portion of today’s conference and also includes the conference itself. You may now disconnect and have a wonderful day.