ADT reports fourth quarter and full year 2022 results

Continued strong sequential and year-over-year growth in revenue, up 21% for full year 2022 versus prior year

6 min read

Highlights include 21% revenue growth versus prior year and the fourth consecutive quarter of record-high customer retention.

Fourth consecutive quarter of record-high customer retention and recurring monthly revenue balance

Improving capital efficiency with record revenue payback
Driving momentum into 2023 with expected continued growth in revenue, earnings and cash flows

ADT, the most trusted brand in smart home and small business security, today reported results for the fourth quarter and full year of 2022.

Financial highlights for the fourth quarter and full year of 2022 are listed below. Variances are on a year-over-year basis unless otherwise noted.

Fourth quarter 2022
  • Total revenue of $1.6 billion, up 19% or 8% excluding Solar, and end-of-period recurring monthly revenue (RMR) of $374 million, up 4%
  • Record-high customer retention with gross customer revenue attrition at a record low of 12.5%
  • Record revenue payback of 2.1 years
  • GAAP net income of $151 million, or $0.16 per diluted share, up $209 million
  • Adjusted net income of $92 million, or $0.10 per diluted share, up $118 million
  • Adjusted EBITDA of $629 million, up $54 million or 9%
Full year 2022
  • Total revenue of $6.4 billion, up 21% or 7% excluding Solar
  • GAAP net income of $173 million, or $0.19 per diluted share, up $513 million
  • Adjusted net income of $218 million, or $0.24 per diluted share, up $410 million
  • Adjusted EBITDA of $2,447 million, up $234 million or 11%
Jim DeVries

“2022 was a very strong year for ADT. We delivered strong results with top-line growth while setting records in customer retention, recurring monthly revenue balance and revenue payback. Our results reflect the progress ADT is making as we shift from a traditional security company towards an innovative business poised for accelerating growth in new markets,” said ADT President and CEO Jim DeVries. “We concluded the year with positive momentum in our business, along with launching our partnership with State Farm and advancing our strategic relationship with Google. As we advance into 2023, we are forecasting solid growth in revenue, earnings and free cash flow, continuing our positive trajectory across our businesses and demonstrating progress on our 2025 goals.”

Business highlights

Foundation for growth
  • Continued growth of RMR: The end-of-period RMR balance was $374 million, representing a 4% increase over the prior year period. Approximately 80% of total Consumer and Small Business (CSB) and Commercial revenue was generated from this durable recurring revenue.
  • Maintaining record customer retention and revenue payback: With strong customer satisfaction, trailing 12-month gross customer revenue attrition was 12.5%, a 60-basis-point improvement versus the prior year period, and revenue payback ended 2022 at 2.1 years.
Innovative offerings
  • ADT+ and ADT Self Setup launch: In early 2023, ADT introduced the new ADT+ app and ADT Self Setup line of DIY smart home security products, which seamlessly integrate the security and protection of ADT with the helpful convenience of Google Nest. The ADT+ app was named a CES 2023 Innovation Award Honoree and represents a historic shift in home security. ADT Self Setup enables customers to build and customize the perfect DIY system for their smart home or apartment needs.
  • Enhanced Google offerings: As part of ADT’s partnership with Google, we nationally sell, install and service a full suite of Google Nest products, including doorbells, cameras, thermostats and smart displays. During 2022, the attachment rate for the Nest Doorbell was approximately 50%, and Nest cameras are currently realizing a 30% increase in cameras per home, helping drive a 26% increase in residential installation revenue per unit as compared to the prior year period.
  • State Farm home protection partnership and equity investment: In 2022, ADT announced the closing of a $1.2 billion equity investment by State Farm in conjunction with a flagship partnership to reimagine the homeownership experience through innovation and the application of smart home technology to detect and mitigate property losses. Exclusive offers to State Farm policy holders in select markets are expected to launch in the second quarter of 2023. In addition to its equity investment, State Farm committed up to $300 million to fund product and technology innovation, customer growth and marketing activities in connection with the partnership.
Unrivaled safety
  • Keeping employees safe with SoSecure Pro: ADT introduced a new enterprise mobile safety app, SoSecure PRO. SoSecure PRO enables companies to enhance workplace safety for employees on site and on the go. The app features innovative safety tools such as location sharing, SOS Call/Chat or Video, Safety Timer and Voice Activation, helping companies to keep their employees safe.
  • Intelligent autonomous security solutions: EvoGuard by ADT Commercial, unveiled at CES in January, is a new suite of intelligent autonomous guarding solutions and services, currently in development, aimed at helping to cost-effectively enhance corporate security programs, while responding to high turnover rates and ongoing labor shortages in the guarding market.
Premium experience
  • ADT Virtual Assistance: ADT completed more than one million Virtual Assistance appointments since the program’s launch in 2021. Nearly 40% of ADT service requests in 2022 were virtual, generating high customer satisfaction at a lower cost to us while also reducing our carbon footprint by eliminating thousands of vehicles trips each day. This program is a meaningful contributor to the Adjusted EBITDA margin expansion in the CSB segment.
Progress on our ESG journey
  • Giving back in 2022: In 2022, ADT realigned its charitable giving and volunteerism to focus on creating safer, smarter and more sustainable communities with donations to Requity, a Baltimore-based nonprofit providing vocational education and workforce development, the American Red Cross for Hurricane Ian disaster relief and Habitat for Humanity. In total, ADT donated $850,000 to charity in 2022.
  • ADT’s first annual CDP Climate Change Disclosure: ADT achieved a CDP score at the “Awareness” level, in line with the North American regional average, including the commercial and consumer services sector.

Click to watch Ken Porpora and Elizabeth Landers discuss ADT’s fourth quarter and full year earnings reports.

2023 financial outlook

ADT is providing the following financial guidance for 2023, with all metrics representing an improvement over 2022 performance:

(in millions)
Total Revenue $6,600 - $6,850
Adjusted EBITDA $2,525 - $2,625
Adjusted Free Cash Flow $525 - $625

Read the complete earnings report with financial results and complete tables with footnotes.

Conference call

As previously announced, management will host a conference call at 10 a.m. ET today to discuss the ADT’s fourth quarter and full year 2022 results and lead a question-and-answer session.

Participants may listen to a live webcast through the investor relations website at A replay of the webcast will be available on the website within 24 hours of the live event.

Alternatively, participants may listen to the live call by dialing 1-888-660-6144 (domestic) or 1-929-203-0865 (international) and requesting the ADT Fourth Quarter 2022 Earnings Conference Call. An audio replay will be available for two weeks following the call and can be accessed by dialing 1-800-770-2030 (domestic) or 1-647-362-9199 (international) and providing the passcode 5974526.

A slide presentation highlighting our results will also be available on the Investor Relations website. From time to time, ADT may use its website as a channel of distribution of material company information. Financial and other material information regarding the company is routinely posted on and accessible at


Investor Relationsinvestorrelations@adt.com888-238-8525

About ADT Inc.
ADT provides safe, smart and sustainable solutions for people, homes and businesses. Through innovative products, partnerships and the largest network of smart home, security and rooftop solar professionals in the United States, we empower people to protect and connect what matters most. For more information, visit

Forward-looking statements
ADT has made statements in this press release and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of historical fact, included in this document are, or could be, “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) and are made in reliance on the safe harbor protections provided thereunder. These forward-looking statements relate to the equity investment by and long term partnership with State Farm and the anticipated impact of these on our business and financial condition, our relationships with other insurance companies, and the market price of our Common Stock; anticipated financial performance, including our ability to achieve our stated guidance metrics and our progress toward our 2025 goals; management’s plans and objectives for future operations; our acquisition of Sunpro Solar, now ADT Solar, and its anticipated impact on our business and financial condition; business prospects; market conditions; our ability to successfully respond to the challenges posed by the COVID-19 Pandemic; our strategic partnership and ongoing relationship with Google; the expected timing of product commercialization with Google or any changes thereto; the expected timing of product commercialization with State Farm or any changes thereto; the successful internal development, commercialization, and timing of our next generation platform and innovative offerings; the successful commercialization of our joint venture with Ford; and other matters. Forward-looking statements can be identified by various words such as “expects,” “intends,” “will,” “anticipates,” “believes,” “confident,” “continue,” “propose,” “seeks,” “could,” “may,” “should,” “estimates,” “forecasts,” “might,” “goals,” “objectives,” “targets,” “planned,” “projects,” and similar expressions. These forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to management. ADT cautions that these statements are subject to risks and uncertainties, many of which are outside of ADT’s control, and could cause future events or results to be materially different from those stated or implied in this document, including among others, factors relating to the achievement of potential benefits of the equity investment by and long term partnership with State Farm, including as a result of restrictions on, or required prior regulatory approval of, various actions by regulated insurers; risks and uncertainties related to ADT's ability to successfully generate profitable revenue from new and existing partnerships; ADT's ability to successfully commercialize any joint products with State Farm or with Google; the Company's ability to successfully utilize the incremental funding committed by State Farm or Google; risks and uncertainties related to the Company’s ability to successfully integrate and operate the ADT Solar business; the Company’s ability to commercialize its joint venture with Ford; the Company’s ability to continuously and successfully commercialize innovative offerings; the Company’s ability to successfully implement an Environmental, Social, and Governance program across the Company; and risk factors that are described in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein. Any forward-looking statement made in this press release speaks only as of the date on which it is made. ADT undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise.