Alarm.com priced its initial public offering at $14 a share, opening over $15 and selling 7 million shares,  implying a market value of over $600 million. Listed on the Nasdaq under the ticker “ALRM,” the company has had a successful first day so far, with shares climbing over 20% and closing at $16.88.

Alarm.com offers cloud-based security and home automation products. By relying on cloud technology, Alarm.com significantly reduces operating costs and allows users to manage their home from anywhere. Through the use of a compatible mobile application, users can remotely control basically any aspect of the home, including security systems, thermostats, light switches, and garage doors. The company also offers wellness and activity tracking software.

The business model has paid off so far for Alarm.com, as the company relies primarily on monthly subscriptions with huge profit margins. Their net income in 2014 tripled that of 2013, increasing to over $13.5 million. More information on the company’s financials can be found in this Zacks report that previewed today’s IPO and detailed the recent surge in IPOs in the technology sector.

Home automation is an expanding industry, and Alarm.com is already poised to be a major player. Investors should note yesterday’s news from Amazon.com Inc (AMZN - Analyst Report), who released a developer’s kit and announced an investment fund for their Echo product. The Amazon Echo is a physical companion to their Alexa software, which is a direct competitor to Alarm.com in the home automation market.