Strong year-end revenue performance, subscriber acquisition, and customer retention accelerate momentum for 2022 growth
FOURTH QUARTER 2021 (variances on a year-over-year basis)
- Total revenue of $1.4 billion, up 5%
- End of period recurring monthly revenue (“RMR”) of $359 million, up 5%
- Sequential and year-over-year net subscriber growth; Total subscribers of 6.6 million
- Customer retention with gross customer revenue attrition at 13.1% and revenue payback of 2.3 years
- GAAP net loss of $58 million, or $(0.07) per share and adjusted net loss of $25 million, or adjusted diluted net loss $(0.03) per share
- Adjusted EBITDA of $574 million
FULL YEAR 2021 (variances on a year-over-year basis)
- Total revenue of $5.3 billion
- Gross RMR additions grew 16%
- GAAP net loss of $341 million, or $(0.41) per share and adjusted net loss of $191 million, or adjusted diluted net loss $(0.25) per share
- Adjusted EBITDA of $2.2 billion
- Results met or exceeded full-year guidance, with total revenue and adjusted EBITDA above the high end of ranges provided
BOCA RATON, Fla., March 01, 2022 (GLOBE NEWSWIRE) -- ADT Inc. (NYSE: ADT), the most trusted brand in smart home and small business security, today reported results for the fourth quarter and full year 2021.
ADT President and CEO Jim DeVries said, “Our fourth quarter caps off a strong year for ADT as we further set the foundation for long-term growth – increasing our subscriber and recurring revenue base, achieving important milestones in our Google partnership, growing our Commercial business, and entering the fast-growing residential solar market with the acquisition of Sunpro and launch of ADT Solar. I want to thank our dedicated ADT employees and dealers for their unrelenting focus on our customers which produced these excellent results.”
DeVries continued, “We have great momentum in the business and a solid plan in place which positions us well to drive growth, not only for 2022, but for years to come. With a focus on innovative offerings, unrivaled safety, and a premium customer experience, ADT is the market leader in providing safe, smart, and sustainable solutions for our customers.”
ADT continued to make progress on its transformation into an innovative, technology-focused growth company offering a complete suite of safe, smart, and sustainable solutions.
Foundation for Growth
- Continued growth of RMR – During the fourth quarter, gross RMR additions increased 7% year over year to $14.9 million and the Company achieved 16% RMR additions growth for the full year. As of the end of the quarter, RMR totaled $359 million, representing a 5% increase over the prior year. Approximately 80% of the Company’s total 2021 revenues came from this durable recurring revenue.
- Entry to residential solar market – The Company completed the acquisition of Sunpro Solar on Dec. 8, 2021, and introduced ADT Solar, which will provide customers with rooftop solar and energy storage solutions to increase energy independence and help save money on energy expenses.
- Expanding footprint in commercial – In October 2021, ADT Commercial purchased premier fire, life safety and security systems provider, Edwards Electronic Systems, Inc. The acquisition further deepens ADT Commercial’s integration capabilities and fire and life safety expertise to serve mid-market, national, and large-scale commercial customers in the Carolinas region.
- Solid customer retention – With strong customer satisfaction, trailing 12-month gross customer revenue attrition was 13.1% in the fourth quarter. This reflects a 30-basis-point improvement on a sequential basis.
- Google Nest Doorbell launch – In the next step of ADT’s ongoing Google partnership, the Company launched the Google Nest Doorbell in January 2022 and is now selling, installing, and servicing the Nest Doorbell as part of the ADT smart home offering. Key benefits include easy installation, intelligent alerts, reliable video security with 24/7 live view, and 30-day event-based recordings. This evolution builds on the Company’s commitment to become a truly connected and protected smart home solution.
- Ford and ADT joint venture – In January 2022, Ford and ADT announced a new joint venture called Canopy that will combine ADT’s professional security monitoring and Ford’s AI-driven video camera technology to help customers strengthen security of new and existing vehicles across automotive brands. Offerings will integrate the Safe by ADT platform to provide professional monitoring and help businesses protect valuable work equipment in their vehicles and help individual owners strengthen security inside and outside their vehicles.
- SoSecure Time Magazine award – ADT’s personal safety app, SoSecure by ADT, has been recognized as one of TIME’s Best Inventions of 2021, as part of the publication’s highlighting of innovations that are changing how we live. SoSecure is a comprehensive mobile safety app that allows customers to call for help in many ways – by sliding a button, SMS chat, video or hands-free with a secret code word.
- Continued rollout of ADT’s SMART monitoring solutions – With patented technology, ADT is delivering alarm signal data and information directly into local 911 platforms, allowing for faster response, better data accuracy and reduced strain on local resources – all critically important when every second matters.
- 3G replacement – Since 2019, ADT has replaced approximately 2.8 million radios through its radio conversion program to ensure continuity of service ahead of the 2022 3G sunset dates. As of today, less than 4% of the original customer base is left to be converted and the Company does not expect the remaining radio conversion costs to be material.
- Virtual service visits – As part of expanding customer choice with service, ADT launched virtual service visits in July 2021. Virtual service is transforming how our digital and physical worlds meet, allowing customers to more quickly troubleshoot system issues. Customer response has been extremely positive – the program has quickly scaled to approximately one-third of total volume visits per day and is generating high customer satisfaction scores at a lower cost to the Company.
Virtual Investor Day
As previously announced, ADT is hosting a virtual investor day today, March 1, 2022, beginning at 9:00 a.m. ET. Members of ADT’s management team will host a series of presentations that focus on the company’s long-term strategy, financial framework, and capital allocation strategy, as well as addressing 2021 results. In addition, as part of its presentation, ADT expects to discuss 2022 guidance and introduce 2025 financial goals for revenue growth, profitability, cash generation, and debt reduction.
A live webcast, together with a slide presentation, can be accessed through ADT’s investor relations website at investor.adt.com. The presentations will also be followed by a question and answer session. Following the call, a recorded replay of the webcast will be available on the website.
2022 FINANCIAL OUTLOOK (1)
The Company is providing the following financial guidance for 2022, with all metrics representing an improvement over 2021 performance:
Total Revenue: $6,200 - $6,400
Adjusted EBITDA: $2,335 - $2,435
Adjusted Free Cash Flow: $550 - $625
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 professionals in the United States, we empower people to protect and connect what matters most. For more information, visit www.adt.com.
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 are made in reliance on the safe harbor protections provided thereunder. These forward-looking statements relate to anticipated financial performance, management’s plans and objectives for future operations, our acquisition of Sunpro Solar and its anticipated impact on our business and financial condition, market conditions, our strategic partnership and ongoing relationship with Google, the expected timing of product commercialization with Google or any changes thereto, the successful internal development, commercialization and timing of our innovative offerings, the successful closing and commercialization of our joint venture with Ford, the successful conversion of customers who continue to utilize 3G services 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, risks and uncertainties related to the Company’s ability to successfully integrate and operate the SunPro business, the Company’s ability to close and commercialize its joint venture with Ford, the Company’s ability to successfully generate profitable revenue from new partnerships, the Company’s ability to successfully convert all remaining customers away from the use of a 3G platform, 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 Securities and Exchange Commission, 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.