NYSE$ADT

ADT Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

ADT reported strong revenue and cash flow generation with significantly strengthened residential customer demand and improvements in customer retention and revenue payback. The company also signed a comprehensive long-term strategic partnership with Google.

ADT Inc. reported a 4% increase in total revenue, reaching $1,331 million. The company's performance was driven by robust free cash flow, improved revenue payback, and better customer retention, despite challenges from COVID-19. A strategic partnership with Google was also established.

  • Total revenue increased by 4% to $1,331 million.
  • Net loss was $107 million, compared to $104 million in the prior year.
  • Adjusted EBITDA was $563 million, down 11% year-over-year.
  • Trailing twelve-month gross customer revenue attrition improved by 20 bps year-over-year to 13.1%.

Headline financials

Total Revenue

$1.33B

Previous: $1.28B+3.7%
EPS (adj)

-$0.07

Previous: -$0.02-250.0%
Capital Expenditures

-$76.2M

Previous: -$84.5M+9.7%
Free Cash Flow

-$183M

Previous: -$189M+2.9%
Net Income

-$107M

Previous: -$104M-2.6%
Operating Income

$50.4M

Previous: $93.1M-45.9%
Cash & Equivalents

$45.5M

Previous: $43.1M+5.6%
Total Assets

$16B

Previous: $17B-6.0%

Revenue & EPS history

ADT · Revenue · Quarterly

$1.33B

Q2 2020+3.7%vs Q2 2019
Beat estimate in 12 of 13 quarters(92%)
ActualEstimate

Forward guidance

The Company is updating its financial guidance. The 2020 Updated Financial Outlook assumes continued general economic disruption during the third quarter of 2020 due to stay at home restrictions and related COVID-19 impacts, followed by a progressive return to normal activity but in a moderately recessionary environment.

Tailwinds

  • Total Revenue $5,050 - $5,300 million
  • Adjusted EBITDA $2,100 - $2,200 million
  • Adjusted Free Cash Flow $625 - $725 million
  • Partnership with Google
  • Consumer financing program

Headwinds

  • Continued general economic disruption during the third quarter of 2020
  • stay at home restrictions
  • related COVID-19 impacts
  • progressive return to normal activity
  • moderately recessionary environment

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 Q2 2020

Historical avgQ2 2020

-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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