ADT (NYSE: ADT) is reporting solid fourth quarter (up 19%) and full year (up 21%) financials for 2022, with its new remote service program and the growing attachment rates for Google Nest products among the drivers of growth.

For Q4, total revenue hit $1.6 billion, up 19% (up 8% excluding ADT’s relatively new solar installation operation) with recurring monthly revenue (RMR) of $374 million, up 4%. The company had record high customer retention with gross customer revenue attrition at a record low of 12.5% and its breakeven payback time for a residential installation is 2.1 years, which is the lowest ever.

For the full year, total revenue was $6.4 billion, up 21% (up 7% excluding solar). Adjusted EBITDA was $2.447 billion, up $234 million, or 11%.

According to ADT President and CEO Jim DeVries: “2022 was a very strong year for ADT. We delivered strong results with top-line growth while setting records in customer retention, recurring monthly revenue balance and revenue payback. Our results reflect the progress ADT is making as we shift from a traditional security company towards an innovative business poised for accelerating growth in new markets.

“We concluded the year with positive momentum in our business, along with launching our partnership with State Farm and advancing our strategic relationship with Google,” he continued. “As we advance into 2023 we are forecasting solid growth in revenue, earnings and free cash flow, continuing our positive trajectory across our businesses and demonstrating progress on our 2025 goals.”

2024 Lighting Controls and Fixtures Report

Lightapalooza took place in late February, and the growth of the event has mirrored the rapid ascension lighting fixtures and controls.

Download your copy now!

ADT Google Nest Attachment Sales, Remote Service

As part of ADT’s partnership with Google, it nationally sells, installs and services a full suite of Google Nest products, including doorbells, cameras, thermostats and smart displays. During 2022, the attachment rate for the Nest Doorbell was approximately 50% and Nest cameras are currently realizing a 30% increase in cameras per home, helping drive a 26% increase in residential installation revenue per units compared to the prior year period.

The company completed more than one million Virtual Assistance appointments since the program’s launch in 2021. Nearly 40% of ADT service requests in 2022 were virtual, generating high customer satisfaction at a lower cost to the company while also reducing the company’s carbon footprint by eliminating thousands of vehicles trips each day. This program is a meaningful contributor to the company’s bottom line.

Among the other business highlights in 2022 from the No. 1 company in the CE Pro 100 are:

• The end-of-period RMR balance was $374 million, representing a 4% increase over the prior year period. Approximately 80% of total Consumer and Small Business (CSB) and Commercial revenue was generated from this durable recurring revenue.
• Trailing 12-month gross customer revenue attrition rate of 12.5%.
• Launch of ADT+ and ADT Self Setup app.
• In 2022, ADT announced the closing of a $1.2 billion equity investment by State Farm in conjunction with flagship partnership to reimagine the homeownership experience through innovation and the application of smart home technology to detect and mitigate property losses. Exclusive offers to State Farm policy holders in select markets are expected to launch in the second quarter of 2023. In addition to its equity investment, State Farm committed up to $300 million to fund product and technology innovation, customer growth and marketing activities in connection with the partnership.
• Launch of its enterprise mobile safety app, SoSecure PRO.
• Sneak peak of EvoGuard intelligent autonomous guards by ADT Commercial, unveiled at CES 2023.

• Page 1