Security

ADT Reports 75% of New Customers Now Buy ADT Pulse

Security giant ADT’s Q3 financial results reveal substantial growth of ADT Pulse home automation to 1.4 million total customers and lower attrition compared to stand-alone security installs.


ADT’s Q3 financial results revealed the growth of ADT Pulse.
Jason Knott · July 31, 2015

ADT is once again reporting strong take-rates and low attrition from its ADT Pulse home automation customers.

For the third quarter 2015 results, the security giant reports that its ADT Pulse customer base grew by 170,000 homes (140,000 new customers and 30,000 upgrades among existing customers) to 1.4 million clients, and now represents 21 percent of its total client base.

Many of the upgrades occurred as ADT converted subscribers from 2G cellular communicators to 3G. Overall, the company’s Q3 financials showed revenues of $898 million, up 5.8 percent. Its net income was $75 million, down 8.5 percent from Q3 last year ($82 million). Recurring revenue was $834 million, up 6.2 percent.

From an attrition standpoint, ADT Pulse home automation is also a clear winner. Customers with Pulse have nearly 40 percent lower attrition on a cumulative basis after 36 months.

“Over 57 percent of our total gross adds (residential and commercial) during the quarter were Pulse units, up from 49 percent a year ago,” says Naren K. Gursahaney, president, CEO and director.

Related: Best Buy/Magnolia, Vivint, ADT Top 2015 CE Pro 100

In the residential space in the direct sales channel only (excluding the ADT dealer program), there was a 63 percent increase in Pulse units sold. The numbers were similarly strong in the dealer channel, with a 54 percent take rate for Pulse, up 40 percent.

“In total we expect our addressable market for residential, business and health to nearly triple over the next five years to over 70 million potential customers,” says Gursahaney.

The company’s commercial business grew to total revenue of $1.6 million during the quarter, up 75 percent. Meanwhile, sales of its mobile PERS products were up 29 percent.

The company touted its new DIY system, as well as its new partnership with Nest Labs that allows the smart thermostat to be controlled by ADT Pulse.



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  About the Author

Jason Knott is Chief Content Officer for Emerald Expositions Connected Brands. Jason has covered low-voltage electronics as an editor since 1990, serving as editor and publisher of Security Sales & Integration. He joined CE Pro in 2000 and serves as Editor-in-Chief of that brand. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He has been a member of the CEDIA Business Working Group since 2010. Jason graduated from the University of Southern California. Have a suggestion or a topic you want to read more about? Email Jason at jason.knott@emeraldexpo.com

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  Article Topics


Security · News · ADT · Nest · All Topics
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