BOCA RATON – ADT’s refocus on its core consumer security and smart home business has paid off, with a strong start to 2024, company officials said. The company reported total revenue of $1.2 billion for the First Quarter (Q1), with end-of-period recurring monthly revenue (RMR) up 3% to $353 million ($4.2 billion on an annualized basis). Consumer and Small Business (CSB) revenue was up 5% and segment Adjusted EBITDA was up 8%. The company also reported strong customer retention, with gross revenue attrition of 13.1%. “ADT had a very good start to the year financially, with strong CSB performance driving top line growth, improved segment EBITDA and positive adjusted free cash flow,” CEO Jim DeVries told investors during a conference call to discuss financial results. “Our streamlined business model focusing on our consumer-oriented core security and smart home business serves a large and growing market and ADT is the clear industry leader with a unique set of assets, including our trusted brand and national footprint and scale. We have a fly wheel like model where we are increasingly able to use the stable and predictable cash flows from our RMR base to service and reduce our debt obligations and return cash to our shareholders, while also continuing to invest in growing the RMR base. That growth is further enhanced by our extraordinary combination of concierge like professionals, Blue Chip partners and expanded capabilities to further penetrate even more customer segments and U.S. households.” DeVries noted ADT remains focused on rolling out its new ecosystem of customer offerings, which includes the ADT Plus platform. Launched in December of 2023 in select markets, the platform leverages its partnership with Google Nest to give customers expanded offerings in camera and video analytics. ADT is looking to expand ADT Plus to more geographies and customers throughout 2024. DeVries further emphasized ADT's strong relationship with Google through its use of Google’s AI technology platform to “explore several opportunities,” of which call centers have been a major focus. He said that, while still early in implementation, ADT expects significant call deflection using AI. After questions from investors, DeVries clarified that ADT expects to see the lift from its continuing roll-out of ADT Plus in 2025 more so than 2024, and that the company will roll out other changes and enhancements to the platform that will drive customer engagement. During the call, ADT also welcomed Jeff Likosar officially into his position as CFO, having served as interim CFO since December. The full presentation can be found online at investor.adt.com.
