Dec 31, 2023

ADT Q4 2023 Earnings Report

ADT reported Q4 2023 results, streamlining its focus on innovation and growth in core consumer markets and fortifying its balance sheet with significant debt reduction.

Key Takeaways

ADT Inc. reported Q4 2023 results, with total revenue of $1.2 billion. The company focused on its core consumer security and smart home business after divesting its commercial business and exiting solar. The company also reduced debt and increased its dividend.

Total revenue reached $1.2 billion.

End-of-period recurring monthly revenue (RMR) increased by 4% to $353 million.

GAAP income from continuing operations was $85 million, or $0.09 per diluted share.

Adjusted income from continuing operations was $226 million, or $0.25 per diluted share.

Total Revenue
$1.22B
Previous year: $1.65B
-25.7%
EPS
$0.25
Previous year: $0.1
+150.0%
Gross Customer Rev. Attrition
12.9%
Previous year: 12.5%
+3.2%
Gross Profit
$663M
Cash and Equivalents
$15M
Previous year: $257M
-94.2%
Free Cash Flow
$13M
Previous year: $243M
-94.7%
Total Assets
$16B
Previous year: $17.9B
-10.7%

ADT

ADT

ADT Revenue by Segment

Forward Guidance

The Company is providing the following financial guidance for 2024, with all metrics representing an improvement over 2023 performance.

Positive Outlook

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

Revenue & Expenses

Visualization of income flow from segment revenue to net income