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Mar 31, 2020
ADT Q1 2020 Earnings Report
ADT's financial results were strong despite COVID-19 disruptions, with revenue up 10% year-over-year and significant cash flow generation.
Key Takeaways
ADT reported a strong first quarter with a 10% increase in total revenue, driven by higher installation revenue and the Defenders Acquisition. However, the company experienced a net loss due to various factors including a settlement related to the Defenders Acquisition and non-cash charges. The company is updating the financial guidance for 2020.
Total revenue increased by 10% to $1,370 million.
Net loss was $300 million, compared to a net loss of $66 million in the prior year.
Free Cash Flow before special items increased to $173 million from $171 million.
Trailing twelve-month gross customer revenue attrition increased by 20 bps to 13.5%.
ADT
ADT
ADT Revenue by Segment
Revenue by Segment
Monitoring & Services Revenue
CapyFin.comSecurity Install & Products Revenue
CapyFin.com Forward Guidance
The Company is updating the following financial guidance for 2020:Total Revenue $5,000 - $5,300, Adjusted EBITDA $2,075 - $2,175, Free Cash Flow before special items $600 - $700.
Challenges Ahead
- Updated Financial Outlook assumes disruption to the Company’s operations, primarily new sales, during the second quarter due to stay at home restrictions and related COVID-19 impacts
- Moderately recessionary environment in the third and fourth quarters of 2020.
- The Company is continuing to integrate the January 2020 acquisition of Defenders
- Assessing the progress of a successful February 2020 national launch of a new consumer financing program.
- Both initiatives require further evaluation, decisions, and actions that may impact our 2020 operating results and financial presentation, as well as the accounting treatment of the above metrics.