ADT’s Q2 meeting celebrates 150 years in business

BOCA RATON, Fla. — ADT posted solid financial results for the second quarter (Q2), noteworthy in the face of current global macroeconomics but not surprising for a company celebrating its 150th year in business in August. 

The company posted a total revenue increase of 3% to $1.2 billion and end-of-period recurring monthly revenue (RMR) of 2% to $355 million year over year, amid higher interest rates and fewer relocations, a traditional catalyst for new subscribers, said President and CEO Jim DeVries. 

“The key to ADT’s enduring success has been our exceptional ability to adapt and innovate,” he said. “It goes without saying that our people have driven our business, and I want to thank the dedicated teams of professionals that have built and driven this company over several generations. We now stand at a pivotal moment in our company's history, ready to write the next chapters of the ADT story fueled by thoughtful innovation and our current industry leading team. I could not be more excited about this chapter and remain humbled by the opportunity to lead this great company today as we progress into the chapters to come.” 

As a preview of things to come, DeVries said that ADT is “...currently investing in its next generation of product and experience ecosystem”. That ecosystem currently entails the company’s most recent ADT Plus platform, ADT’s all-in-one home security system app, which was cited as the future upon which it will continue to innovate. 

The company highlighted its upcoming Trusted Neighbor feature, which leverages its partnership with Google Nest to grant trusted individuals both secure and temporary access to homes either for defined schedules or specific events, like package deliveries or water leaks 

“We anticipate this offering will become available for ADT Plus customers during the third quarter,” DeVries said. 

Other financial highlights for the quarter include: 

• Strong customer retention with gross revenue attrition of 12.9% and revenue payback at 2.2 years 

• GAAP income from continuing operations of $126 million, or $0.13 per diluted share, down $54 million 

• Adjusted income from continuing operations of $156 million, or $0.17 per diluted share, up $3 million 

• Adjusted EBITDA from continuing operations of $629 million, down $12 million 

The full release can be found online at investor.adt.com.