Mar 31, 2023

ADT Q1 2023 Earnings Report

ADT reported strong year-over-year growth in revenue, maintained record high customer retention and recurring monthly revenue, improved capital efficiency, and continued deleveraging.

Key Takeaways

ADT reported a strong start to 2023 with continued momentum in generating revenue and cash flow growth. Total revenue increased by 4% to $1.6 billion, with recurring monthly revenue (RMR) up 4% to $378 million. The company maintained record-high customer retention and improved capital efficiency with a record revenue payback of 2.0 years. ADT remains on track for continued positive progress across all its businesses and advancing toward its 2025 goals.

Total revenue of $1.6 billion, up 4%, and end-of-period recurring monthly revenue (RMR) of $378 million, up 4%.

High customer retention with gross customer revenue attrition maintaining record low of 12.5%.

Record revenue payback of 2.0 years.

GAAP net loss of $90 million, or a loss of $(0.10) per diluted share, down $141 million, which includes $193 million negative impact from Solar segment goodwill impairment.

Total Revenue
$1.61B
Previous year: $1.55B
+4.3%
EPS
$0.12
Previous year: -$0.01
-1300.0%
Gross Customer Rev. Attrition
12.5%
Previous year: 12.9%
-3.1%
Cash and Equivalents
$186M
Previous year: $17M
+994.1%
Free Cash Flow
$0
Previous year: -$97M
-100.0%
Total Assets
$17.5B
Previous year: $17B
+3.1%

ADT

ADT

ADT Revenue by Segment

Forward Guidance

The Company is reiterating its financial guidance for 2023:

Positive Outlook

  • Total Revenue: $6,600 - $6,850 million
  • Adjusted EBITDA: $2,525 - $2,625 million
  • Adjusted EPS: $0.30 - $0.40
  • Adjusted Free Cash Flow (including interest rate swaps): $600 - $700 million
  • Adjusted Free Cash Flow: $525 - $625 million