Jun 30, 2024

ADT Q2 2024 Earnings Report

ADT delivered solid first half results with revenue growth, strong operating profitability, and cash flow generation.

Key Takeaways

ADT reported a 3% increase in total revenue, reaching $1.2 billion. The company focused on consumer and small business markets, expanding its innovative offerings and customer experience. Strong operating cash flow and debt reduction were also highlights.

Total revenue increased by 3% to $1.2 billion.

End-of-period recurring monthly revenue (RMR) increased 2% to $355 million.

GAAP income from continuing operations was $126 million, or $0.13 per diluted share.

Adjusted income from continuing operations was $156 million, or $0.17 per diluted share.

Total Revenue
$1.21B
Previous year: $1.59B
-24.4%
EPS
$0.17
Previous year: $0.16
+6.3%
Gross Customer Rev. Attrition
12.9%
Previous year: 12.5%
+3.2%
Gross Profit
$675M
Cash and Equivalents
$38M
Previous year: $146M
-74.0%
Free Cash Flow
$231M
Previous year: $165M
+40.0%
Total Assets
$16B
Previous year: $17.3B
-7.8%

ADT

ADT

ADT Revenue by Segment

Forward Guidance

The company is reiterating its 2024 financial guidance for Total Revenue, Adjusted EBITDA, and Adjusted Free Cash Flow while updating the range for Adjusted EPS to reflect the presentation of the solar business as a discontinued operation.

Positive Outlook

  • Total Revenue: $4,800 - $5,000 million
  • Adjusted EBITDA: $2,525 - $2,625 million
  • Adjusted EPS: $0.65 - $0.75
  • Adjusted Free Cash Flow (including interest rate swaps): $700 - $800 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income