The smart home demand shows no signs of slowing for Vivint Smart Home, Inc. (NYSE: VVNT). The company reported 66,734 new subscribers for Q1 2022, with revenues of $392.7 million, which is up by $50.4 million or 14.7% from last year’s Q1.
Overall, Vivint, the No. 2 company in the CE Pro 100, narrowed its net loss to $27.4 million for the quarter. That is an improvement of $61.4 million over the loss sustained in the same time period last year. In terms of cash flow, Vivint’s quarterly EBITDA reached $202.3 million, up $41.6 million. Vivint now has a total of 1,870,440 smart home subscribers.
“Our strong track record of execution as a public company continued through the first quarter of 2022,” says David Bywater, CEO of Vivint Smart Home. “We remain committed to profitable growth as evidenced by our revenue increase of nearly 15%, improvement in net loss of more than 69%, and adjusted EBITDA growth of almost 26%.
“We believe our attrition rate (11.2%) is the lowest among national smart home companies by a significant margin, and it is the result of years of work to improve the overall credit quality of our customers as well as performance enhancements across our portfolio of products and services. We continue to make progress on our Smart Energy and Smart Insurance initiatives as we pursue our mission to make our customers’ homes smarter, greener, and safer while saving them money,” he adds.
“We are proud of our consistent execution across all of our key financial metrics,” says Dale R. Gerard, CFO of Vivint Smart Home.
“The fundamentals of the business remain strong, and we are bullish about the opportunities ahead of us. We remain on track to meet the full year guidance we laid out in February related to total subscribers, revenue, and adjusted EBITDA. Given the uncertainties related to a challenging economic environment, rising interest rates, and continuing global supply chain constraints, we are lowering the bottom end of our guidance range for free cash flow by $17 million to $50 million and leaving the top end of the range unchanged at $77 million.”
Among the company’s business highlights is continued momentum for its Smart Energy program. The company says it is on track to double the number of megawatts sold in 2022 versus 2021. It is also continuing to pursue its Smart Insurance program that will allow Vivint to develop specific homeowner coverages and enable it to accelerate growth.