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Sep 30, 2020
ADT Q3 2020 Earnings Report
ADT reported strong financial and operating results, improving revenue payback and customer retention to record levels, growing RMR additions and increasing subscribers.
Key Takeaways
ADT Inc. reported third-quarter 2020 results, highlighting record customer retention and revenue payback, growth in U.S. RMR additions and net subscribers, and an accelerating launch of a co-branded offering with Google into 2021.
Total revenue was $1,299 million, compared to $1,301 million.
Net loss was $113 million, compared to $182 million.
Adjusted EBITDA was $564 million, compared to $624 million.
Trailing twelve-month gross customer revenue attrition of 12.9%, an improvement of 60 bps.
Revenue by Segment
Forward Guidance
Based on the strength of the third quarter results, the Company is updating its financial guidance.
Positive Outlook
- Total Revenue $5,200 - $5,350 million
- Adjusted EBITDA $2,150 - $2,225 million
- Adjusted Free Cash Flow $650 - $725 million
- Partnership with Google is off to a very strong start
- Consumer financing program has been well received
Challenges Ahead
- There are many variables involved in 3G and CDMA radio conversion costs, including retention levels, system upgrade rates, revenue opportunities, cost-sharing opportunities, and possible technology solutions.
- The Company continues to estimate the range of net costs for this replacement program at $200 million to $325 million
- Lower volume of commercial transactions due to COVID-19
- Impact from the Defenders acquisition
Historical Earnings Impact
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Avg. Return Before/After Earnings
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