ADT Hits Peak RMR
♦ ADT Hits Peak RMR – ADT lifted Q2 revenues by 23 per cent year on year to $US1.6 billion, with net incomes lifting from a $126 million loss to a $96 million profit.
The company’s EBITDA increased from $542 million to $597 million, and ADT projected annual revenues of up to $6.4 billion with EBITDA of $2.4 billion.
According to ADT, the improved performance was driven by multiple vectors, including recurring monthly revenue up 5 per cent to a record $369 million, as well as record customer retention rates of 12.7 per cent, and a reduction in subsidized installation breakeven point down to 2.2 years.
“We demonstrated tremendous momentum in our business and delivered record high customer retention, our highest-ever recurring monthly revenue balance, and our first reported positive adjusted net income since our IPO,” says ADT president and CEO Jim DeVries.
“With our team dedicated to providing unrivalled service to our customers, ADT’s progress continues on our key initiatives outlined earlier this year during our Investor Day to meaningfully grow our revenue, earnings, and cash flows through 2025.”
Alongside the strong performance of its security/smart home business ADT pointed to the strength of its solar business, commercial sector and its new ADT Virtual Assistance program, which fielded 230,000 virtual service calls for the quarter.
ADT highlighted its Google Nest partnership as partly responsible for its turnaround. The Nest range includes doorbells, cameras, and thermostats which the company sells and installs nationally. For Q2 the attachment rate for a Google doorbell was 48 per cent, driving a 23 per cent unit increase in installation revenue for the quarter.
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