ADT Inc. (NYSE: ADT), the No. 1 company in the 2023 CE Pro 100 list of smart home installation companies, reported solid overall revenue growth of 4% for its Q1 2023. The results include 7% growth from its Consumer and Small Business (CSB) division, (which includes smart home and its collaboration with Google) and a 15% increase in its commercial security business.
The Boca Raton, Fla.-based company’s total revenue for the first quarter of $1.6 billion, up 4%, and end-of-period recurring monthly revenue (RMR) of $378 million, up 4%. Most notably. Its customer retention rate fell to a record low of 12.5%, and its payback time period for its subsidized residential smart home installations fell to its lowest level ever at 2 years. Adjusted EBITDA for the quarter was $625 million, up $24 million or 4%.
The company’s CSB group had revenues of $1.029 billion for the quarter. ADT Commercial has revenues of $335 million, while ADT Solar had $145 million in revenues (down 25%).
“Demonstrating the resiliency of our business model, we had a strong start to 2023 with continued momentum in generating revenue and cash flow growth,” said ADT President and CEO, Jim DeVries. “Contributing to this momentum were a number of initiatives including our Google partnership, the strength of our commercial business and our execution plans for changing the trajectory in solar. ADT remains on track for continued positive progress across all our businesses and advancing toward our 2025 goals.”
ADT Q1 Highlights Include State Farm Partnership Launch
In Q1, ADT Commercial sold its first autonomous guarding solution dubbed EvoGuard. The autonomous intelligent guarding solutions is aimed at helping to cost-effectively enhance corporate security programs, while responding to high turnover rates and ongoing labor shortages in the guarding market. ADT anticipates commercialization of the indoor drones later in 2023.
Among the highlights from the company during Q1 was the launch of the ADT and State Farm pilot program in Indiana, Illinois and Pennsylvania. The pilot program is expected to expand to nine states by year end 2023. ADT also began selling the ADT Self Setup smart home security system for DIY customers in February, which integrates Google Nest smart home products with ADT security and life safety technology, through the convenient control of the new ADT+ app. The company says sales have “exceeded expectations” since launch.
The company’s Virtual Assistance program that connects DIY customers with a professional installer hit a milestone of more than 1 million appointments.
Looking ahead, the company reaffirmed its full year revenue guidance of between $6.6 billion and $6.85 billion for the full year of 2023.
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