Welcome to the Alarm.com Third Quarter 2024 earnings conference call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Matthew Zartman, Vice President of Investor Relations. Please go ahead.
Thanks, Kevin. Good afternoon, everyone, and welcome to Alarm.com's Third Quarter 2024 earnings conference call. Please note the call is being recorded. Joining us today are Steve Trundle, our CEO, and Steve Valenzuela, our CFO. During today's call, we will be making forward-looking statements, which are predictions, projections, estimates, or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. We refer you to the risk factors discussed on our quarterly report on Form 10-Q and our Form 8-K, which will be filed shortly with the SEC along with the associated press release. The call is subject to these risk factors, and we encourage you to review them. Alarm.com assumes no obligation to update forward-looking statements or other information which speak as of their respective dates.
In addition, several non-GAAP financial measures will be discussed on the call. A reconciliation of GAAP to non-GAAP measures can be found in today's press release on our Investor Relations website. I'll turn the call over to Steve Trundle. Steve?
Thank you, Matt. Good afternoon and welcome to everyone. We are pleased to report financial results for the third quarter that exceeded our expectations. SaaS and license revenue in the third quarter grew to $159.3 million and Adjusted EBITDA was $50 million. Our performance in the quarter resulted from continued momentum across our growth initiatives. Sales of our video and access control products outperformed and contributed to hardware revenue that was above our expectations. We also saw our revenue retention rate increase to 95%, which is above our historical range. We believe two things are driving the revenue retention metric. First, our service providers have been increasingly putting in fully featured and more robust systems that provide value to the consumer or business owner every day. And second, the slower U.S. housing market has reduced subscriber moves, which can be a leading cause of account churn.
I want to thank our service provider partners and our employees for their contributions to our results. On today's call, I want to update you on a few new capabilities we introduced to our commercial and residential video offerings before handing it over to Steve Valenzuela to cover our financials in more detail. In October, we hosted our annual customer conference, which we call Partner Summit here in Washington, D.C. The event again attracted a sold-out audience that represented a nice cross-section of our service provider partner community. We were able to feature several recently released products in our presentations during the summit. One of the products we demonstrated is a consumer-facing capability we call AI Deterrence or AID. It can identify and engage a potential trespasser on a property and deter them from causing further problems.
AID is integrated into our remote video monitoring solution and is essentially an AI bot that replaces some of the workload that a live operator monitoring the video camera would otherwise need to perform. It can discern clothing and location and deliver verbal warnings that are dynamically adapted to the intruder and the scene. Our goal with AID is to make our remote video monitoring solution as cost-effective as possible for our service providers. By augmenting human intervention and focusing humans on only the most critical events, we believe our partners can adopt our solution more aggressively and introduce it to a larger segment of the commercial and residential markets. Our advancements in applying AI to video streams in both residential and commercial settings benefit from our scale. In August alone, our AI-enabled video cameras identified and sent 1.2 billion events for further classification and verification by our cloud.
Of these 1.2 billion events of interest, 700 million were verified by the cloud AI engine, triggering additional rules which can include archival or push notifications to alert subscribers of important activity. In September, our OpenEye business also launched a new line of cloud cameras designed for flexible, streamlined enterprise video surveillance installations. The new cameras are entirely self-contained with onboard storage and AI processing. They connect directly to the cloud and are provided as a subscription-based solution that leverages the full suite of management, analytics, alerting, and reporting tools offered by the OpenEye platform. Cloud cameras provide a cost-effective way for our partners to land and expand in new commercial accounts. We're pleased with OpenEye's continued momentum and growth. OpenEye is on the cusp of surpassing 1 million active channels or video cameras on its software platform.
We expect continued strong contributions to Alarm.com's growth as OpenEye leads the transformation of the enterprise security video management market from standalone on-premise devices to cloud-enabled AI-powered video solutions. As most of you know, we typically conclude our third quarter with Steve Valenzuela providing an initial look at the following fiscal year. It's early, and we will continue to refine our plans and forecasts before providing our more calibrated and official 2025 guidance on our fourth quarter call early next year. But I want to give a little context for how we're looking at 2025 at this point. As we think about 2025 revenue, a meaningful variable is the rate at which ADT rolls out the ADT Google software. This forecasting dependency makes visibility into 2025 a bit more opaque than in prior years.
Our first-look numbers assume that ADT's corporate residential account production will fully transition to the ADT Google software and impact SaaS revenue growth for the entirety of 2025. Fortunately, we have built a diverse organic growth engine that will allow us to continue growing our business despite this long-anticipated headwind. We expect our EnergyHub business, our OpenEye business, our international business, and our Alarm.com commercial business, including our access control solution, to contribute to our consolidated growth rate at roughly the same levels in 2025 as in 2024. Meanwhile, we have moved EBITDA margins up some in the second half of 2024, and we expect current levels to hold as we move through 2025. In summary, I'm pleased with our Q3 results and the continued growth we see across the business.