reports that its Q3 SaaS and license revenue increased 17.9 per cent year-over-year to $US100.1 million., while total revenue increased 24.2 per cent to $158.9 million for the quarter, over 2019 numbers. president and CEO, Stephen Trundle, attributed the strong quarterly results, in part, to the company’s ongoing continued strength in the professional smart home market in the United States and Canada. He said there was strong growth in residential video. During the third quarter, 40 per cent of the company’s new subscribers opted to include video services.

“The commercial market, while not fully recovered to pre-COVID levels, also began showing some positive momentum in the third quarter,” Trundle said. “The strength of the recovery and the overall performance of our service provider partners, particularly in the residential segment, exceeded our expectations and drove the strong results.”

SaaS and license revenue had renewal rate of 94 per cent in Q3, which is at the high end of the company’s historical range of 92 per cent to 94 per cent, and consistent with levels prior to the COVID pandemic.

“This high retention rate contributes to our favourable SaaS metrics with a very positive LTV-to-CAC ratio of approximately 3.9 due to our long lifetime customer value,” CFO Steve Valenzuela said. “Hardware and other revenue in the third quarter was $58.7 million, up 36.7 per cent over Q3 2019.” raised its guidance for total revenue for 2020 to $594 million to $604.2 million, up from the prior guidance of $552.7 million to $563.1 million. This includes estimated hardware and other revenue of $205 million to $215 million.