NYSE$ADT

ADT Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

ADT reported strong year-over-year growth in revenue, maintained record high customer retention and recurring monthly revenue, improved capital efficiency, and continued deleveraging.

ADT reported a strong start to 2023 with continued momentum in generating revenue and cash flow growth. Total revenue increased by 4% to $1.6 billion, with recurring monthly revenue (RMR) up 4% to $378 million. The company maintained record-high customer retention and improved capital efficiency with a record revenue payback of 2.0 years. ADT remains on track for continued positive progress across all its businesses and advancing toward its 2025 goals.

  • Total revenue of $1.6 billion, up 4%, and end-of-period recurring monthly revenue (RMR) of $378 million, up 4%.
  • High customer retention with gross customer revenue attrition maintaining record low of 12.5%.
  • Record revenue payback of 2.0 years.
  • GAAP net loss of $90 million, or a loss of $(0.10) per diluted share, down $141 million, which includes $193 million negative impact from Solar segment goodwill impairment.

Headline financials

Total Revenue

$1.61B

Previous: $1.54B+4.4%
EPS (adj)

$0.12

Previous: -$0.01+1300.0%
Capital Expenditures

-$59.2M

Previous: -$38.3M-54.5%
Free Cash Flow

-$149M

Previous: $13.3M-1217.3%
Net Income

-$89.7M

Previous: $51.6M-273.7%
Operating Income

$42.7M

Previous: $76M-43.8%
Cash & Equivalents

$186M

Previous: $17.4M+970.5%
Total Assets

$17.5B

Previous: $17B+3.1%

Revenue & EPS history

ADT · Revenue · Quarterly

$1.61B

Q1 2023+4.4%vs Q1 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

The Company is reiterating its financial guidance for 2023:

Tailwinds

  • Total Revenue: $6,600 - $6,850 million
  • Adjusted EBITDA: $2,525 - $2,625 million
  • Adjusted EPS: $0.30 - $0.40
  • Adjusted Free Cash Flow (including interest rate swaps): $600 - $700 million
  • Adjusted Free Cash Flow: $525 - $625 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-2.2%

Avg return

Earnings day

-3.8%

Avg return

5 days after

-1.7%

Avg return

30 days after

46%

17 / 37 earnings

Positive

+13.9%

Q3 2024

Best reaction

-25.8%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.0%-2.2%-6.6%
Q4 2025+2.0%-18.3%-18.3%
Q3 2025-7.9%-5.9%-7.7%
Q1 2025-2.0%+0.9%+3.9%
Q4 2024+7.8%+0.8%+7.6%
Q3 2024+13.9%+6.2%+9.0%
Q2 2024-10.9%-9.1%-6.3%
Q1 2024+0.8%+1.9%+13.2%
Q4 2023+11.2%+12.3%+2.9%
Q3 2023+9.9%+9.1%+10.8%
Q2 2023+5.2%+6.3%-5.5%
Q1 2023-20.7%-13.5%-15.2%
Q4 2022-3.3%-2.4%-8.9%
Q3 2022+2.9%+5.6%+18.2%
Q2 2022+9.7%+7.4%-1.4%
Q1 2022-3.4%-7.0%+2.9%
Q4 2021+7.8%+3.8%+3.8%
Q3 2021-0.6%+1.1%-5.1%
Q2 2021-13.5%-14.0%-17.9%
Q1 2021+3.1%+2.7%+19.6%
Q4 2020-25.8%-30.0%-19.9%
Q3 2020+4.3%+5.9%+22.3%
Q2 2020-5.9%-6.6%-19.4%
Q1 2020+2.2%+4.9%+51.4%
Q4 2019-12.6%-22.6%-38.4%
Q3 2019+8.0%+8.5%+9.1%
Q2 2019-7.1%-11.9%-5.3%
Q1 2019-11.6%-8.9%-13.2%
Q4 2016-11.0%-12.3%-9.6%
Q4 2018-11.0%-12.3%-9.6%
Q3 2017+5.8%+5.8%+0.4%
Q3 2018+10.7%+1.8%+1.8%
Q2 2017-6.1%-6.1%-7.2%
Q2 2018-7.4%+0.0%-3.8%
Q1 2018-7.6%-14.8%-4.1%
Q1 2017-7.6%-14.8%-4.1%
Q4 2017-14.5%-12.2%-11.9%
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012

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