ADT presents Q3 fiscal results

BOCA RATON, Fla.—Security giant ADT released its fiscal third quarter financial results this week, highlighting monthly revenue and partnerships.

President and CEO Jim DeVries described ADT’s performance in the third fiscal quarter as strong with top line growth at 22 percent to $1.6 billion. It generated an adjusted net income of $83 million ($0.10 per share). DeVries also said the quarter resulted in an improved adjusted EBITDA that was up 12 percent year over year.

In particular, DeVries highlighted the growth of its monthly revenue to record levels. “For another consecutive quarter our recurring monthly revenue balance, or RMR, is at record levels, and we lowered our revenue payback to a best ever 2.1 years,” he said. “Customer retention also continues to improve with gross attrition at a record low of 12.6%. As our results demonstrate, consumer demand for ADT's products and services remain strong. We are effectively growing our business, driving innovation, building brand loyalty and improving capital efficiency.”

Another big highlight for ADT’s quarter was their partnerships and offerings introduced like their partnership with Google for installation of Nest products, and their recent partnership with State Farm which saw the company invest $1.2 billion into ADT and commit $300 million to fund product and technology innovation. “Paul Smith, the Chief Operating Officer at State Farm, has joined our ADT Board, already providing value,” DeVries said. “We're thrilled to have him in the boardroom.” Security Systems News covered that partnership in an article in early September.

ADT reaffirmed its previous financial guidance for the remainder of 2022 based on the results of the third quarter. The company predicted that they would be able to deliver Total Revenue and Adjusted EBITDA at the upper end of the expected ranges and Adjusted Free Cash Flow towards the lower end of its range. “All of this success is a direct reflection of the hard work and dedication of our 22,000 employees and our 200-plus dealer partners,” DeVries concluded. “I want to thank all of them for what they do for ADT and for our customers each and every day.”

You can find the full webcast of the fiscal presentation and it’s accompanying press release online at investor.adt.com.