Revenue during the quarter grew 22.62 percent to $69.79 million from $56.92 million in the previous year period. Gross margin for the quarter contracted 295 basis points over the previous year period to 61.72 percent. Total expenses were 94.05 percent of quarterly revenues, up from 91.70 percent for the same period last year. That has resulted in a contraction of 235 basis points in operating margin to 5.95 percent.

Operating income for the quarter was $4.15 million, compared with $4.73 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $14.31 million compared with $9.77 million in the prior year period. At the same time, adjusted EBITDA margin improved 334 basis points in the quarter to 20.50 percent from 17.16 percent in the last year period.

"Were pleased to report solid results for the quarter as we closed another year of continued growth and profitability,” said Steve Trundle, president and chief executive officer of Alarm.com. "During the year, we launched innovative new technology for our service provider partners, and we continued to develop growth initiatives that we believe will allow us to extend the Alarm.com platform into new markets in the future. With the acquisition of Connect and Piper from Icontrol Networks now completed, we can grow our research and development capacity and further increase our participation in the Internet of Things secular trend."

Alarm.com Holdings, Inc. projects revenue to be in the range of $322 million to $325.50 million for financial year 2017. For the fiscal year 2017, Alarm.com Holdings, Inc. forecasts adjusted net income to be in the range of $36 million to $37 million. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $0.73 to $0.75 on adjusted basis.

The company has spent $11.43 million cash to meet investing activities during the year as against cash outgo of $17.63 million in the last year.

Cash flow from financing activities was $6.20 million for the year, down 91.87 percent or $70.08 million, when compared with the last year.

Cash and cash equivalents stood at $140.63 million as on Dec. 31, 2016, up 9.56 percent or $12.28 million from $128.36 million on Dec. 31, 2015.

Working capital increases
Alarm.com Holdings, Inc. has recorded an increase in the working capital over the last year. It stood at $150.48 million as at Dec. 31, 2016, up 14.03 percent or $18.51 million from $131.97 million on Dec. 31, 2015. Current ratio was at 4.79 as on Dec. 31, 2016, down from 5.54 on Dec. 31, 2015.

Days sales outstanding went up to 20 days for the quarter compared with 17 days for the same period last year.

Days inventory outstanding has increased to 18 days for the quarter compared with 15 days for the previous year period.

Debt remains stable
Total debt remained stable at $6.70 million as on Dec. 31, 2016, when compared with the last year. Long-term debt remained stable at $6.70 million as on Dec. 31, 2016, when compared with the last year. Total debt was 2.56 percent of total assets as on Dec. 31, 2016, compared with 2.96 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.04 as on Dec. 31, 2016, when compared with the last year. Interest coverage ratio deteriorated to 78.38 for the quarter from 94.54 for the same period last year.