Mar 31, 2024

ADT Q1 2024 Earnings Report

Reported strong momentum anchored by cash flow growth and solid CSB revenue growth, with a streamlined focus on innovation and growth in core consumer markets. Capital was returned to shareholders through increased dividend and share repurchase.

Key Takeaways

ADT reported a strong start to 2024 with continued momentum in CSB segment revenue and Adjusted EBITDA, as well as cash flow growth. The company continued rolling out its new professionally installed ADT+ platform, positioning it to expand nationally in the coming months. ADT remains focused on driving significant cash flow while continuing to invest in growing and serving its customer base and returning capital to shareholders.

Total revenue reached $1.2 billion, with end-of-period recurring monthly revenue (RMR) up 3% to $353 million (or $4.2 billion on an annualized basis).

Consumer and Small Business (CSB) revenue increased by 5% to $1.2 billion, with segment Adjusted EBITDA up 8% to $638 million.

Customer retention remained strong, with gross revenue attrition at 13.1%.

GAAP income from continuing operations was $92 million, or $0.10 per diluted share, marking a $218 million increase.

Total Revenue
$1.21B
Previous year: $1.61B
-25.0%
EPS
$0.16
Previous year: $0.12
+33.3%
Gross Customer Rev. Attrition
13.1%
Previous year: 12.5%
+4.8%
Gross Profit
$639M
Cash and Equivalents
$4M
Previous year: $186M
-97.8%
Free Cash Flow
$65M
0
Total Assets
$15.9B
Previous year: $17.5B
-9.1%

ADT

ADT

ADT Revenue by Segment

Forward Guidance

The Company is reiterating its financial guidance for 2024.

Positive Outlook

  • CSB Total Revenue: $4,800 - $5,000 million
  • CSB Adjusted EBITDA: $2,525 - $2,625 million
  • Adjusted EPS: $0.60 - $0.70
  • Adjusted Free Cash Flow (including interest rate swaps): $700 - $800 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income