ADT Revenues Up 22 Per Cent
ADT Revenues Up 22 Per Cent – ADT Q3 financials indicate the company’s Google Nest partnership continues to deliver rewards, with a 22 per cent revenue jump for the period.
The company reports total revenue of $1.6 billion, up 22 per cent, or 8 per cent excluding its solar business, with end-of-period recurring monthly revenue of $US372 million, up 4 per cent.
According to ADT, the company saw record high customer retention with customer revenue attrition of 12.6 per cent and record revenue payback of 2.1 years.
“ADT’s strong third quarter results demonstrate our continued momentum — setting records in customer retention, RMR balance and revenue payback,” said ADT president and CEO, Jim DeVries.
“Our performance to date validates our progress on key initiatives, outlined earlier this year during our investor day, to meaningfully grow revenue, earnings and cash flows, as well as reduce debt.
“Additionally, we were tremendously excited to announce our partnership with State Farm. A collaboration with such a marquee organization will serve as a significant future growth catalyst for ADT and we look forward to continued positive momentum in 2023.”
The end-of-period RMR balance was $372 million, representing a 4 per cent increase over the prior year period. Approximately 80 per cent of total consumer and small business (CSB) and commercial revenue was generated from this durable recurring revenue.
ADT sells, installs and services a full suite of Google Nest products, including doorbells, cameras and thermostats. During the third quarter of 2022, the attachment rate for the Google doorbell was 51 per cent.
In August, ADT began selling and installing indoor and outdoor Google Nest cameras and is currently realizing a greater than 30 per cent increase in cameras per home.
ADT now provides a virtual installation option it says offers more flexibility, convenience and choice to customers. The Virtual Assistance program is generating high customer satisfaction at a lower cost to ADT while lowering its carbon footprint by eliminating technician vehicle trips each day.
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