ADT Q3 2023 Earnings Report
Key Takeaways
ADT reported a solid third quarter with recurring monthly revenue reaching $350 million and a record revenue payback of 2.0 years. The company divested its commercial business and refinanced debt to improve its balance sheet. However, the solar business continued to underperform, leading to restructuring efforts.
Achieved record high CSB recurring monthly revenue balance driven by strong retention.
Improved capital efficiency with record revenue payback of 2.0 years.
Completed divestiture of commercial business to focus on core security and smart home offerings.
Undertook a substantial restructuring of the solar business to drive more positive results.
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ADT Revenue by Segment
Forward Guidance
The Company is revising its financial guidance for 2023, primarily to account for the recent divestiture of the commercial business, which is now reported as discontinued operations, and updated operating performance. Strong CSB performance is mostly offsetting weaker Solar underperformance, which has allowed ADT to maintain slightly narrowed guidance within the prior ranges after adjusting for the divestiture.
Revenue & Expenses
Visualization of income flow from segment revenue to net income