ADT (NYSE: ADT), the No. 1 company in the CE Pro 100, finished its 2021 on a high note with a fourth quarter revenue gain of 5% from $1.4 billion in revenue. However, its full year revenues fell to $5.307 billion, down $8 million from its full year 2020 revenues of $5.315 billion. Despite that decline, the Boca Raton, Fla.-based smart home and security system provider is anticipating growth in 2022 between 17% and 21%, or between $6.2 billion and $6.4 billion.
One of the strongest pieces of data from the full year earning report is the strength of ADT’s recurring monthly revenue (RMR) business. During the fourth quarter, the company’s gross RMR additions increased 7% year over year to $14.9 million and the ADT 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 RMR.
ADT now has 6.6 million total subscribers with a 13.1% attrition rate and a payback time frame of 2 years, 3 months for its subsidized installations. Adjusted EBITDA was $574 million for the year.
ADT president and CEO Jim DeVries notes, “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 continues, “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.”
Another initiative in place for 2022 is a focus on the residential solar market with the acquisition of Sunpro Solar on Dec. 8, 2021, and the introduction of ADT Solar, which will provide customers with rooftop solar and energy storage solutions to increase energy independence and help save money on energy expenses.
Also, the company expanded its commercial footprint in October 2021 with the acquisition of 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.
Meanwhile, in January 2022 , ADT launched the selling, installing and servicing of Google Nest Doorbells as part of the ADT smart home offering. Lastly, Ford and ADT announced a joint venture in January 2022 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 work equipment in their vehicles and help individual owners secure the inside and outside of their vehicles.